How will BlueOval City's arrival impact the labor market in West Tennessee?

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Several people who played a key part in bringing BlueOval City to West Tennessee — and who are also responsible for planning for its long-term impact — gathered in Memphis for panel discussions on the project Tuesday morning.

The Urban Land Institute of Memphis hosted the event at Shelby Farms’ FedEx Event Center. Ford and SK On plan to invest $5.6 billion for BlueOval City to produce electric trucks and batteries at the 3,600-acre site. The project is expected to create about 5,800 jobs, and production is scheduled to begin in 2025.

Greater Jackson Chamber CEO and President Kyle Spurgeon, HTL Advantage President and CEO Mark Herbison and TVA Regional Economic Development Specialist Aaron Stewart recalled the journey and joy after securing the development for Haywood County in September 2021.

The four mayors whose towns and cities are expected to be most impacted by BlueOval City also spoke about the challenges planning for a project of this magnitude, which is likely to be accompanied by significant growth and population increases. Stanton Mayor Allan Sterbinsky, Brownsville Mayor Bill Rawls, Lakeland Mayor Josh Roman and Arlington Mayor Mike Wissman participated in the second panel.

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Here are three takeaways from the BlueOval City discussion.

Ford and SK On’s BlueOval City 'deal of the century'

Before Ford and SK On decided to invest at what was formerly known as the Memphis Regional Megasite, state and local leaders had come close to securing a tenant on multiple occasions.

One of the most recent instances was in 2018 when the Megasite was a finalist for the Toyota-Mazda plant that eventually chose Huntsville, Alabama, and took its $2.3 billion investment and 4,000 new jobs with it.

Spurgeon and Herbison now are grateful previous projects passed on the site. They also acknowledged past disappointments better prepared them for their pitch to Ford and SK On.

Jackson Chamber President Kyle Spurgeon (left) and HTL Advantage Director Mark Herbison grew up together in Henry County, were college roommates and were part of the team that brought Ford Motor Company to the Memphis Regional Megasite
Jackson Chamber President Kyle Spurgeon (left) and HTL Advantage Director Mark Herbison grew up together in Henry County, were college roommates and were part of the team that brought Ford Motor Company to the Memphis Regional Megasite

“I’m glad we didn’t get any of them,” said Herbison, whose organization represents Haywood, Tipton and Lauderdale counties. “It’s like that old song, ‘Thank God for Unanswered Prayers’ … We were very close on a semi-truck, hydrogen fuel deal a few years ago. We were very close on a big tire plant deal (Sentury Tire Americas). We got the deal of the century.”

How Ford and SK On’s arrival impacts the local labor market

One of the common concerns relayed to West Tennessee officials by existing companies is the impact Ford and SK On’s arrival will have on the labor market. This does not include future suppliers that will take up space at BlueOval City and surrounding communities in the coming years.

Kyle Spurgeon, president and CEO of the Jackson Chamber, speaks during the Dixie Manufacturing groundbreaking reception in the McWherter Center Auditorium at Jackson State Community College on Friday, December 9, 2022.
Kyle Spurgeon, president and CEO of the Jackson Chamber, speaks during the Dixie Manufacturing groundbreaking reception in the McWherter Center Auditorium at Jackson State Community College on Friday, December 9, 2022.

Spurgeon said one of the ways to address that is communicating and keeping relationships intact with companies that were lured to the area prior to BlueOval City.

“If you don’t do that, the net (job) growth is not going to be (as high), because you’re going to lose people,” he said. “Everything that is being done for Ford and BlueOval to improve worker training and workforce development all of that is available to existing industries, so we got to make sure it’s all communication being in front of them just like we have done in the past. Some communities do that better than others, but you have to be very intentional about taking care of the people that brought you to the dance.”

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West Tennessee mayors planning for BlueOval City’s arrival

While all four mayors spoke generally about the positive impact BlueOval City will have on their communities while trying to maintain what makes their towns unique, one of the areas Rawls wants to address in Brownsville is temporary and permanent affordable housing.

Brownsville Mayor Bill Rawls Jr. stands inside of the building that is being renovated to become their new City Hall in Downtown Brownsville, Tenn. on Thursday, Dec. 23, 2021. The town square sits about 15 miles from the site of the Ford's Blue Oval City project, a $5.6 billion electric vehicle plant which the auto manufacturer expects to create approximately 6,000 jobs.

Rawls said he wants those who may feel the financial pressure to sell or leave their rental home or apartment to remain in the community.

Brownsville has a population of nearly 10,000 and is Haywood County’s largest city. It's about 15 miles away from the Stanton site.

There is also the challenge of adding to existing housing with thousands of construction workers descending on-site in the short term and future BlueOval City employees expected to be in the area long-term.

“We need a weighed survey for our area, up-to-date survey that says this is what the average worker makes (in Brownsville), therefore we can come with a number of what type of businesses you bring in, type of development and what does workforce housing look like,” Rawls said.

Omer Yusuf covers the Ford project in Haywood County, FedEx, tourism and banking for The Commercial Appeal. He can be reached via email Omer.Yusuf@commercialappeal.com or followed on Twitter @OmerAYusuf.

This article originally appeared on Memphis Commercial Appeal: Ford's Blue Oval City: How will it impact West Tennessee labor market?

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