Accelerate to 2060 by gdf57j

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									Accelerate to 2060
  Harrison and Stone counties,
          Mississippi

Report 1: Market Assessment


           Prepared for:




          Prepared by:
           Table of Contents
Introduction                                                      2
 Project Objectives                                               2
 Benchmarks                                                       4
Executive Summary                                                 5
 Key Findings                                                     5
The Recent Economic Downturn and the BP Oil Spill                 8
SWOT Analysis                                                     9
Regional Connections                                              10
 Evidence of a Regional Economy                                   10
 Where do Harrison County workers live?                           11
 Where do Harrison County residents work?                         12
 Where do Stone County workers live?                              13
 Where do Stone County residents work?                            14
Market Assessment                                                 15
 How are Harrison and Stone counties growing?                     15
 What are the economic realities of the Two-County Region?        24
 What are the unique quality of life assets?                      33
 How competitive is the business climate?                         39
 How well does the region support innovation?                     41
Workforce Assessment                                              46
Project Next Steps: Target Industry Opportunities                 49
Appendix                                                          51
 Business and Community Survey Results                            52

         Accelerate to 2060 - Harrison & Stone counties, Mississippi   Report 1: Market Assessment | 1
                                                                                Introduction
  Communities today are operating in an increasingly global and knowledge-based economy. Transnational
  corporations are driving economic growth and are fueled by skilled and highly educated employees. Local                            Project Objectives
  economic prosperity is dependent on the extent to which communities can position themselves to compete
  on this global stage to attract both investments and talent.                                                        Through a regional partnership and visionary
                                                                                                                      planning, the Harrison County Development
  More and more communities are learning that competitive advantages in this advanced and integrated                  Commission (HCDC), the Harrison County Board of
  economy are gained through a “regional” approach that transcends county boundaries. Communities need                Supervisors, the Stone County Economic
  to look beyond their local borders to build relationships and combine resources in order to more effectively        Development Partnership (SCEDP), and the Stone
  expand recognition in the marketplace.                                                                              County Board of Supervisors are developing a long
                                                                                                                      range economic development plan. The two counties
  The Two-County Region, comprised of Harrison and Stone counties, has experienced significant change                 have entered into an inter-local government
  since Hurricane Katrina in 2005. The storm has had a significant impact on the Mississippi Coast, resulting         agreement to collaboratively:
  in population shifts, increased insurance costs, and employment reductions. However, Katrina has
  provided the region with a number of Federal Government tools resulting in expanded infrastructure, and a            •   Identify the needs of the region
  foundation for which to build for the future.                                                                        •   Pinpoint growth opportunities
                                                                                                                       •   Provide long term strategic direction
  A number of underlying economic issues shape Harrison and Stone counties. With slow job growth, and                  •   Commit the time and resources necessary to
  comparatively lower educational attainment levels, the Two-County Region faces some significant labor                    achieve success
  hurdles. However, a highly integrated military presence, expanding port facilities, and relatively low
  business costs provide the Two-County Region with competitive advantages and opportunities, if leveraged
  appropriately.                                                                                                      HCDC and SCEDP have selected a multi-disciplinary
                                                                                                                      team, including Broaddus & Associates,
                                                                                                                      AngelouEconomics, Pegasus Planning, the LPA
  Accelerate to 2060 is further cementing regional and public-private collaboration already in existence. This
  project will build upon existing efforts, identify the economic, infrastructure and workforce assets of the         Group, and Fred Sock & Associates, to guide this
  region, and devise specific strategies that capitalize on these strengths – all through a vision for building the   planning effort.
  long-term talent pipeline and economic assets, spurring innovation resulting in high quality job creation.

Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                       Report 1: Market Assessment | 2
                                                              Introduction: Accelerate to 2060

  Creating a long-term economic development strategic plan begins with a critical analysis of regional
  assets and challenges. With strong information as a foundation, a community can pinpoint its
  competitive strengths, recognize and correct weaknesses, and more narrowly define its target             Be more focused on regional solutions
  audiences for marketing.                                                                                           across the board!

  This report is the first of five that will be delivered to the Harrison County Development Commission        - Business Survey Response
  (HCDC) and the Stone County Economic Development Partnership (SCEDP). It provides
  background information to the consulting team and the region, and will be used as the research
  base for the long term economic development strategic plan.

  It is comprised of both qualitative and quantitative information. The qualitative information gathered
  through surveys, focus groups and interviews, tells the story of what residents and businesses think
  about the community in which they live or work. The quantitative, what the statistics show, is often
  the perspective seen by external businesses and site selection consultants.

  The research in this report will support the product improvement and strategic recommendations in
  future reports. The analysis is primarily focused on addressing the following questions important to
  economic development:

  1) What are the critical opportunities and challenges facing Harrison and Stone counties?
  2) How are Harrison and Stone counties growing?
  3) What are the economic realities of Harrison and Stone counties?
  4) What are the unique quality of life assets in the Two-County Region?
  5) How competitive is the business climate in Harrison and Stone counties?
  6) How well does the Two-County Region support innovation?



Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                      Report 1: Market Assessment | 3
                                                                          Introduction: Benchmarks

To gauge where Harrison and Stone counties stand relative to other competitor communities, this report
assesses its performance against three benchmark communities: Huntsville, AL; Pensacola, FL; and
Savannah, GA. These communities are located in the Southeast United States, share similar economies
and markets, including significant port activities (Savannah and Pensacola), and each have a strong military
presence. Furthermore, these communities have certain assets that Harrison and Stone counties strive to
develop, such as a large technology foundation and significant university research and development activity.
Additionally, the study benchmarks Harrison and Stone counties against the State of Mississippi and the
U.S.


                                                              Figure 1. Harrison and Stone counties – “Economies At A Glance”
                                                                                                            Harrison County   Stone County   Two-County Region   Huntsville, AL   Pensacola, FL         Savannah, GA              Mississippi             U.S.
                                                                                                                                                                     MSA              MSA                   MSA


                                                                Population (2009 Estimate)                      181,191         16,619          197,810            406,316          455,102                 343,092               2,938,618          304,059,724

                                                                Population Growth (’90-’09)                      9.6%           54.6%            12.3%              38.7%            32.2%                   33.0%                   14.2%               22.3%

                                                                Unemployment Rate (April 2010)*                 9.0%(P)        8.8% (P)         9.0%(P)            7.9%(P)          10.2%(P)                8.3%(P)                10.7%(P)               9.5%

                                                                Labor Force Growth (’01-’09)*                    -4.6%          14.7%            -3.2%               9.8%            13.0%                   22.6%                   -0.8%                7.2%

                                                                Median Household Income (2009)                  $45,210        $38,442          $44,788            $55,903          $47,177                 $51,058                 $40,191             $53,684

                                                                Median Household Income Growth (’90 -’09)       103.4%         102.7%           103.1%              74.9%            82.8%                   88.8%                   99.1%               78.3%

                                                                % Bachelor’s Degree + (2009)                     21.9%          14.1%            20.2%              34.8%            23.5%                   26.7%                   20.8%               28.0%

                                                                % in 25-44 Age Group (2009)                      24.8%          27.1%            25.0%              26.2%            25.5%                   27.0%                   25.7%               27.1%
                                                                   * Not Seasonally Adjusted                                                                                         Source: U.S. Census Bureau, Bureau of Labor Statistics, Decision Data Resources
                                                                   (P) Preliminary




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                                                                Report 1: Market Assessment | 4
                                                              Executive Summary
 Key Findings:                                                                                                      We need community communication
                                                                                                                    between our leaders both politically
                                                                                                                   and from the business community. We
 There is a need to expand regional teamwork and connectivity. Stakeholders expressed the desire to                 need to show regionalism in how we
 broaden regional efforts to expand opportunities, strengthen connections, and grow recognition in the
                                                                                                                             promote this area.
 marketplace.

 Opportunities exist for Stone County to build upon its strong timber and related services cluster.                    - Business Survey Response
 This includes the expansion of its role as a trade and service center. Utilizing the county’s vast natural
 resources and continuing to tap into emerging industry opportunities, such as biomass energy generation
 and energy conservation, is a tremendous opportunity.

 The Two-County Region must better capitalize upon Department of Defense, NASA, and other
 government installations. Bridging the strong military presence in the region with the private-sector is
 critical for building a high-tech foundation. Especially important is the retention of highly-skilled military
 retirees who can play a key role in the transformation to a high-tech, knowledge-based economy.

 The Two-County Region benefits from strong workforce training components. As the region grows
 and diversifies its industry base, it must integrate economic and workforce development efforts to ensure
 that a local workforce has the right competencies to feed into new growing businesses, such as renewable
 energy, that will require a number of highly skilled professionals.

 Additional tourism amenities are needed to attract new visitors and create a destination for
 younger adults. Limited strategies exist for the region to better connect retail, hospitality, cultural events,
 and enhanced public transportation.



Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                              Report 1: Market Assessment | 5
Key Findings (continued):                                                                                             Opportunities are opening up
  .
                                                                                                                 everyday. We have shown we can take
The Two-County Region possesses fewer and smaller institutions of higher learning than its                       the hardest licks and rebound. Now is
competition. Elevating the capacity of existing colleges and universities, through enrollment and research         the time to take advantage of these
activity, and supporting innovative collaborations, will be vital to supporting the long-term economic                        opportunities.
competitiveness of the Two-County Region.
                                                                                                                    - Community Survey Response
The aging population and loss of young professionals will impact regional efforts to attract and
retain high-value industries. This combination, along with lower educational attainment levels, indicates
a significant “brain drain” challenge, where young educated individuals are leaving the area to relocate to
other areas that they perceive to have more amenities and higher wage employment opportunities.

There is a need for additional industry diversification beyond the leisure and hospitality sector. At
over 26%, the leisure and hospitality industry makes up a significant portion of Harrison County’s industry
base. Although employment in the leisure and hospitality industry has grown over 12% since 2001
nationally, Harrison County has lost over 6,200 jobs (23.3%) over this same time.

Job creation has been slow, but there is strong potential for transitioning to a more knowledge-
based economy. The area continues to experience unemployment levels generally lower than those of
the nation. Importantly, traditional industries in the area are still performing relatively well. Professional
services, for example, has seen an increase in over 2,600 jobs (43.8%) in the past five years.

There is a need to move up the industry value chain and add higher value added jobs. The Two-
County Region is underrepresented in office related industries, such as financial services and IT, which
can help the economy move up the value chain and increase the number of high paying jobs.

Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                            Report 1: Market Assessment | 6
Key Findings (continued):                                                                                      More than 59% of respondents said a
                                                                                                               vibrant community where people are
High insurance premiums along the coast hinder redevelopment and investment. Since 2005,                        ‘out and about’ using public parks,
insurance costs have jumped nearly 500% in many areas along the coast, negatively impacting the                  trails, recreation areas, attending
housing market and impeding growth throughout the Two-County Region.                                              farmers’ markets, and living in a
                                                                                                               healthy community is very important
Since Hurricane Katrina, vast improvements have been made to public infrastructure. The region                                 to them.
has excellent highway and rail access, which is very beneficial for existing businesses moving goods from
the Port of Gulfport. Long-term consideration must be given to infrastructure improvements and expansion        - Coast Young Professionals Next
to meet the demand of future industries. As a result of the Mississippi Gulf Region Water and Wastewater                 Leaders Survey
Plan, developed after Hurricane Katrina, huge improvements have been made to the water and sewer
infrastructure in the Two-County Region.

The Two-County Region is at risk of becoming an air quality non-attainment zone. The Two-County
Region must identify and embrace innovative solutions and practices to improve its air quality, increase its
ability to attract new manufacturing, and improve the health of its residents.

Stakeholders expressed the need for additional cultural and entertainment amenities and higher
quality development. Many young professionals expressed a strong desire for additional cultural and
entertainment amenities. In the recent Next Leaders survey conducted by the Coast Young Professionals,
89% of the respondents said they want to live in a “vibrant” community.

The availability of capital and other resources for emerging start-ups are limited. This type of activity
requires considerable resources including venture capital, angel funding, and support networks. The
region lags in each of these categories.

Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                         Report 1: Market Assessment | 7
                                                                                                                 FIGURE 2. UNEMPLOYMENT RATE
                                                                                                                    MONTHLY UNEMPLOYMENT RATE, APRIL 2009-APRIL 2010


                                                                                                                                       U.S.                   Harrison County                            Stone County

                                                                                                                  12%

                               The Recent Economic Downturn and the BP Oil Spill                                  10%


                                                                                                                  8%

   This report is designed to assess longer-term underlying economic, demographic, and labor market
                                                                                                                  6%
   trends; but it is important to analyze the information within the context of the current national economic
   crisis and the BP oil spill to understand how Harrison and Stone counties have been affected.                    Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr-
                                                                                                                     09 09 09 09 09 09 09 09 09 10 10 10 10
   The current recessionary environment has had an impact on the Two-County Region, reversing previous                                             Source: BLS Local Area Unemployment Statistics and Current Population Survey

   years of job and business establishment growth, and significantly impacting the tourism industry. Despite
   the national economic downturn, Harrison and Stone counties have fared well up to this point,                  FIGURE 3. EMPLOYER HIRING PLANS
   experiencing lower levels of unemployment than the national average. The unemployment rates in the                   Over the next TWO years, do you expect the number of employees in your business in
   Two-County Region have followed national trends during the recession, reaching peak highs in June of                 Harrison or Stone county to:
   2009 and February of 2010; but the area has maintained lower rates of unemployment than the State of
   Mississippi, and the U.S. Figure 2 shows the monthly unemployment rates of Harrison and Stone
   counties versus the U.S. between April, 2009 and April, 2010.

   Major layoffs have taken place and many jobs have been lost on the Mississippi Gulf Coast during the
   downturn, across various sectors such as leisure and hospitality (tourism) and manufacturing. An
   encouraging sign is the fact more than 95% of business owners in the on-line survey said that they expect
   employment to either increase or stay the same over the next two years. Figure 3 displays these results.

   At the time of this report, the BP oil spill has been ongoing for 85 days. The long-term impacts of this
   disaster are still unknown, but it is apparent the fish and seafood industry have been significantly
   impacted, resulting in a number of facility closures. Employment in the oil and gas industry is close to 2%
   of coastal employment (Harrison, Hancock and Jackson counties). While the tourism industry is not
   highly dependent on beach related activities, it is highly likely tourists may have decided against
   vacationing to the area despite the fact beaches are open and the effects of the spill minimal up to this
   point.

Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                            Report 1: Market Assessment | 8
                                                                             SWOT Analysis
                                  Strengths                                  Weaknesses                                           Opportunities                                      Threats

                        • Strategic location                       • Lack of large, shovel ready sites              • Expanded International airport               • I-10 capacity

                        • Port of Gulfport expansion               • Airport access to more cities                  • Intermodal transportation system             • Limited financial resources for
Transportation &                                                                                                                                                     infrastructure improvements
 Infrastructure         • Affordable, undeveloped sites            • Telecommunications infrastructure in           • Improving public transit (light rail along
                                                                     rural Harrison & Stone counties                  the coast)                                   • Air quality (threat of non-attainment)
                        • Strong transportation networks (I-10
                          and Hwy 49) and rail access                                                               • Improved rail conditions                     • Lack of large sites could make
                                                                                                                                                                     business location difficult
                        • Strong work ethic                        • Limited venture capital and start up           • Taxes are low in general but need to         • Low wages may be hindrance to
                                                                     financing                                        be consistent throughout the region            retain talent
                        • “Right to Work” state
Business Climate                                                   • Limited upward job mobility                    • Transition to higher value added             • High insurance costs
                        • Low wages attractive to industry
                                                                                                                      economic opportunities                       • Pending financial burden due to
                                                                   • Low regional connectivity
                        • Proximity to NOLA and Mobile                                                                                                               water/wastewater debt in Harrison
                                                                                                                    • Strengthened entrepreneurial support
                                                                                                                      system                                         County

                        • Agile community college system           • K-12 support from private sector               • Transitioning the workforce to high-         • Educational funding and support
                                                                                                                      wage, high-skilled jobs
 Education &            • Great pool of talent                     • Ability to attract and retain talent                                                          • Aging K-12 facilities
  Workforce                                                                                                         • Greater emphasis on workforce
                        • Military presence                        • High dropout rates and low educational                                                        • Migration of skilled workers
 Development                                                                                                          training and retraining
                                                                     attainment
                        • Strong workforce development                                                              • Strong focus on educational reform
                          programs                                 • Limited availability of high-skilled workers


                        • Abundant natural resources               • High insurance costs                           • Expanded cultural and entertainment          • Rising cost of living
                                                                                                                      amenities                                    • Air quality
                        • Relatively low crime                     • Underutilized cultural heritage assets
 Quality of Life                                                                                                    • “Corridor” of downtown communities           • Natural disasters
                        • Relatively low cost of living            • Trash and litter along roads
                                                                                                                    • Improved public transportation options
                        • Rich and diverse culture                 • Limited “family” amenities
                        • Recreational amenities
                        • Highly integrated military presence • Lack of a strong and clear brand related            • Greater regional connectivity                • Poor external perceptions
                                                                to target industries
 Marketing and          • Access to community and state                                                             • Strengthened connections to                  • “Brain drain” of young highly educated
  Economic                leadership                          • Limited research and development                      Department of Defense and retention            talent
 Development                                                    occurring                                             of military retirees
                        • Strong local economic                                                                                                                    • BP Oil Spill and media messaging
                          development programs and            • Small business development support                  • Consistent zoning and land use
                          business engagement                                                                         planning to ensure higher quality
                                                                                                                      growth in Stone County
     Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                          Report 1: Market Assessment | 9
                                                                                                                Evidence of a Regional Economy

                                                                                                         • Harrison County draws over 84% of its workforce
                                                                                                           from Hancock, Harrison, and Jackson counties
                                                                                                           while only a small percentage of its workforce lives
                                                      Regional Connections                                 in Stone County

                                                                                                         • The majority of Harrison County residents (81%)
                                                                                                           work in either Hancock, Harrison, or Jackson
                                                                                                           counties
  Evidence of intertwined regional economies is revealed by an analysis of both Harrison and Stone
  counties’ labor sheds (the counties around the region from which each county draws a majority of its   • Nearly 3,000 Harrison County residents work in
  commuting workers) as well as their commuter sheds (the counties where residents of Harrison and         counties in the Jackson metro area, over 100
  Stone counties are driving to for work). Pages 11 through 14 provide visual and numerical evidence       miles away
  of the economic interdependence of counties in the Mississippi Gulf Region (George, Hancock,
  Harrison, Jackson, Pearl River and Stone counties), and the resulting effects on Harrison and Stone    • Stone County draws its workforce primarily from
  counties’ labor and commute sheds.                                                                       the seven counties in which it borders

                                                                                                         • A relatively low percentage (37.8%) of Stone
                                                                                                           County residents work in Stone County, indicating
                                                                                                           that residents must look to other counties in the
                                                                                                           region for employment

                                                                                                         • Nearly 5% of Stone County residents were
                                                                                                           employed in the New Orleans metro area as of
                                                                                                           2008




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                          Report 1: Market Assessment | 10
           Regional Connections: Where do Harrison County workers live?
                                                                                  Where Harrison County Workers Live
                                                                                                                 2008
                                                                          Location                      Count                Share
                                                                          Harrison County, MS           47,731               62.4%
                                                                          Jackson County, MS            13,531               17.7%
                                                                          Hancock County, MS             3,167                4.1%

                                                                          Pearl River County, MS         1,291                1.7%
                                                                          Stone County, MS               1,159                1.5%
                                                                          Hinds County, MS               1,107                1.4%
                                                                          Forrest County, MS              780                 1.0%

                                                                          Mobile County, AL               697                 0.9%

                                                                          Rankin County, MS               501                 0.7%
                                                                          George County, MS               483                 0.6%
                                                                          All Other Locations            6,061                7.9%
                                                                                                                  Source: US Census Bureau




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                         Report 1: Market Assessment | 11
       Regional Connections: Where do Harrison County residents work?
                                                                                Where Harrison County Residents Work
                                                                                                                  2008
                                                                        Location                         Count                Share
                                                                        Harrison County, MS              47,731               71.0%
                                                                        Jackson County, MS                4,706                7.0%
                                                                        Hancock County, MS                2,355                3.5%
                                                                        Hinds County, MS                  1,713                2.5%
                                                                        Lamar County, MS                   824                 1.2%
                                                                        Forrest County, MS                 782                 1.2%
                                                                        Rankin County, MS                  756                 1.1%
                                                                        Madison County, MS                 470                 0.7%
                                                                        Stone County, MS                   435                 0.6%
                                                                        Lauderdale County, MS              420                 0.6%
                                                                        All Other Locations               7,002               10.4%
                                                                                                                   Source: US Census Bureau




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                        Report 1: Market Assessment | 12
                Regional Connections: Where do Stone County workers live?
                                                                                       Where Stone County Workers Live
                                                                                                                  2008

                                                                            Location                    Count               Share

                                                                            Stone County, MS             2,039              52.9%

                                                                            Harrison County, MS          435                11.3%

                                                                            Forrest County, MS           260                 6.7%

                                                                            Pearl River County, MS       162                 4.2%

                                                                            Lamar County, MS             111                 2.9%

                                                                            Perry County, MS             109                 2.8%

                                                                            George County, MS             94                 2.4%

                                                                            Jackson County, MS            84                 2.2%

                                                                            Jones County, MS              74                 1.9%

                                                                            Wayne County, MS              66                 1.7%

                                                                            All Other Locations          418                10.9%
                                                                                                                      Source: US Census Bureau




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                            Report 1: Market Assessment | 13
           Regional Connections: Where do Stone County residents work?
                                                                                    Where Stone County Residents Work
                                                                                                                2008

                                                                         Location                     Count                Share

                                                                         Stone County, MS             2,039                37.8%

                                                                         Harrison County, MS          1,159                21.5%

                                                                         Jackson County, MS            336                  6.2%

                                                                         Forrest County, MS            262                  4.9%

                                                                         Lamar County, MS              187                  3.5%

                                                                         Jefferson Parish, LA          160                  3.0%

                                                                         Hinds County, MS              119                  2.2%

                                                                         Mobile County, AL             104                  1.9%

                                                                         Orleans Parish, LA            86                   1.6%

                                                                         Hancock County, MS            86                   1.6%

                                                                         All Other Locations           851                 15.8%
                                                                                                                    Source: US Census Bureau




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                          Report 1: Market Assessment | 14
                                                                                              FIGURE 4. POPULATION GROWTH
                                                                                                     POPULATION GROWTH, 1990-2009

                                                                                                                      U.S.                                           23.1%
                                                                                                          Mississippi                                   14.2%

                                                                                                       Savannah MSA
                                                                                                      Sav annah MSA                                                               33.0%
                                                              Market Assessment                       Pensacola MSA                                                               32.2%
                                                                                                      Huntsv ille MSA
                                                                                                       Huntsville                                                                          38.7%
                                                                                               Tw o-County Region                                     12.3%
 How are Harrison and Stone counties growing?
                                                                                                        Stone County                                                                                              54.6%

 The Two-County Region has experienced very low population growth since 1990, in comparison          Harrison County                             9.6%
 to the three benchmark regions
                                                                                                                              0%              10%             20%           30%           40%          50%          60%
   • The population of the Two-County Region grew at a rate of 15.4% between 1990 and 2000,                                                                                           Source: Decision Data Resources

     higher than the national rate during this timeframe (see Figure 4)

   • Since 2000, Harrison County’s population has declined 4.4%, while Stone County has       FIGURE 5. POPULATION GROWTH
     experienced population growth of 22% (see Figure 5)                                              POPULATION GROWTH, 1990-2000 AND 2000-2009

                                                                                                                                                         1990-2000                2000-2009
   • Hurricane Katrina has impacted the counties very differently; many have left Harrison                            26.7%
     County as a result of the devastation and extremely high insurance costs                 25%                             22.0%
                                                                                                                                                              18.7% 19.7%
   • Stone County’s proximity to the heavily populated coastal counties, combined with its                                            15.4%           16.8%
                                                                                                                                                                                          17.1%
                                                                                                      14.7%
     location inland, have strongly attributed to its population growth                       15%
                                                                                                                                                                                  13.5%                          13.2%
                                                                                                                                                                        10.5%                     10.6%
                                                                                                                                                                                                                         8.8%


                                                                                               5%                                                                                                         3.3%




                                                                                               -5%                                            -2.7%
                                                                                                              -4.4%
                                                                                                      Harrison         Stone Two-County Huntsville Pensacola Savannah Mississippi                                  U.S.
                                                                                                       County          County Region      MSA        MSA       MSA
                                                                                                                                                                                          Source: Decision Data Resources




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                         Report 1: Market Assessment | 15
                                                              FIGURE 6. POPULATION CHANGE IN HARRISON COUNTY
 Components of Population Change
                                                                  COMPONENTS OF POPULATION CHANGE, 2003-2009
                                                                                        Natural      Net International   Net Domestic
The impacts of Katrina on Harrison County’s                    2,500
population were far different than the impacts on              2,000                                                                                    1,034
                                                                                                                                           2,331
Stone County’s population. The population data                                                 935
                                                               1,500                                              319                                                        674
displayed in Figures 6 and 7 look at three population                         181              143
                                                                                                                                 372                     174
                                                                                                                                                                             102
indicators: 1) natural (births/deaths per year), 2) net        1,000
international (people moving to and from foreign                 500         1,167            1,159              1,364                      73          1,275               1,118
                                                                                                                                1,176
countries), and 3) net domestic (people moving to                                                                                          655
and from other U.S. locations).                                    0
                                                                                                                 -376
                                                                -500
 • In 2006, Harrison County lost more than 22,500
                                                                             -1,790
   residents as a result of migration to other locations       -1,000

                                                               -1,500                                                           -22,578
 • The result of this huge exodus is still felt by Harrison
                                                               -2,000
   County, however people are beginning to move back
   and Harrison County is growing again                                    2003              2004               2005           2006        2007        2008               2009
 • In 2006, Stone County’s population grew                                                                                                                      Source: U.S. Census Bureau

   substantially in percentage terms (nearly 5%)
                                                               FIGURE 7. POPULATION CHANGE IN STONE COUNTY
 • Nearly 700 people moved to Stone County in 2006,
                                                                       COMPONENTS OF POPULATION CHANGE, 2003-2009
   many moving north from the coast
                                                                500         Natural   Net International     Net Domestic
 • The migration into Stone County in 2006 was more
   pronounced than previous years, and though it has                                                                              690
   not reached 2006 levels, in-migration has continued
   and looks to be the trend moving forward                                                                                                               380
                                                                250
                                                                                                                  345
                                                                                                                                            244
                                                                                                                                                                               203

                                                                                               85                                                          2
                                                                              58                                                              1
                                                                                                9                   9                                     95
                                                                               9                                                  10         78                                 79
                                                                              34               56                  46             33
                                                                   0
                                                                                                                                 -22,578
                                                                             2003              2004               2005           2006      2007          2008                2009
                                                                                                                                                                  Source: U.S. Census Bureau




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                        Report 1: Market Assessment | 16
                                                                                                                FIGURE 8. AGING POPULATION
                                                                                                                   GROWTH IN PERSONS AGE 25-44 AND AGE 55+, 1990-2009
                                                                                                                                                                        Age 25-44      Age 55+
                                                                                                                                                                        Age 25-44      Age 55+
                                                                                                                    Harrison County -13.60%                                      40.6%
                                                                                                                                                                                                 63.4%
                                                                                                                      Stone County                                                 40.60%
                                                                                                                                                                                    42.1%
                                                                                                                 Two-County Region        -10.70%
                                                                                                                     Huntsville MSA
                                                                                                                                                                                                                83.6%
                                                                                                                                                             4.30%
                                                                                    Age Distribution                Pensacola MSA                                 11.80%
                                                                                                                                                                                                                84.3%
                                                                                                                                                                                         50.8%
                                                                                                                     Savannah MSA                                   14.00%
                                                                                                                                                                               32.5%
                                                                                                                           Mississippi                    0.40%
                                                                                                                                                                                      43.0%
Harrison and Stone counties face an enormous hurdle in retaining young professionals in the                                       U.S.                      2.78%
25-44 age group. This age group, most often a part of a region’s “creative class” and almost
                                                                                                                                            -20%                         30%                            80%
always the engine of innovation, is extremely important for economic growth. Aging                                                                                                      Source: Decision Data Resources
populations are a nation-wide challenge with significant economic and workforce development
implications.
 • Age distribution in the Two-County Region closely aligns with the U.S.
   (see Figure 9)                                                                             FIGURE 9. AGE DISTRIBUTION 2009
                                                                                                                                0 to 14     15 to 24   25 to 44     45 to 64    65+
 • With a median age of 33.8, Stone County has an extremely young population as               100%
                                                                                                     12.5%        12.3%          12.5%         13.0%        14.5%          11.9%         13.1%          13.2%
   compared to the benchmark regions                                                          80%
                                                                                                     26.8%        23.4%          26.4%         26.6%                       24.4%         24.9%          25.9%
                                                                                                                                                            26.7%
 • Of concern is the loss of people in the 25-44 age group in Harrison County                 60%
                                                                                                     24.8%        27.1%          25.0%                                     27.0%         25.7%
   (see Figure 8)                                                                             40%
                                                                                                                                               26.2%        25.5%                                       27.1%

                                                                                                     15.9%        16.4%          16.0%         14.0%        15.3%          14.9%         15.1%          14.0%
 • Encouraging is the significant percentage increase of people ages 25-44 in Stone           20%
                                                                                                     20.0%        20.7%          20.0%         20.3%                       21.9%         21.3%          20.0%
   County, 40.6% since 1990 (see Figure 8)                                                                                                                  18.1%
                                                                                               0%
                                                                                                     Harrison      Stone      Tw o-County    Huntsville Pensacola Savannah
                                                                                                                                             Huntsv ille Pensacola Sav annah Mississippi                 U.S.
 • The overall decline in this key demographic throughout the combined Two-County                                                               MSA        MSA       MSA
                                                                                                     County       County        Region         MSA         MSA       MSA
   Region is a concern
                                                                                                                                                                                       Source: Decision Data Resources


 • Strong growth in the 55 and older demographic has taken place in both Harrison
   and Stone counties, and this age group should be closely monitored as retiring
   baby-boomers will have a significant impact on the Two-County Region’s
   workforce


Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                         Report 1: Market Assessment | 17
                                                                                                           FIGURE 10. HISPANIC POPULATION
                                                                                                                 % of POPULATION THAT IS HISPANIC, 2009
                                                                                                           16%                                                                                                                 15.6%


                                                                                                                                                  2000                            2009
                                                                                                                                                                                  2009
                                                                                                                                                                                                                       12.6%
                                                                                                                                                  2000



                                                                                                            8%


                                                                                                                         4.3%
                                                                                        Diversity
                                                                                                                                                     4.1%
                                                                                                                                                                                 3.6%
                                                                                                                                                                   3.2%                         3.0%
                                                                                                                  2.6%                        2.5%                                       2.2%                   2.2%
                                                                                                                                                                          2.7%
                                                                                                                                 1.3% 1.6%                  2.0%                                         1.4%


                                                                                                            0%
                                                                                                                  Harrison        Stone                 Huntsville
                                                                                                                                             Two-County Huntsville Pensacola Savannah Mississippi                        U.S.
                                                                                                                   County         County       Region     MSA
                                                                                                                                                          MSA        MSA
                                                                                                                                                                     MSA       MSA
                                                                                                                                                                               MSA
Workforce diversity can provide a competitive advantage as innovative firms increasingly seek                                                                                              Source: Decision Data Resources
out locations with a diverse pool of creative people.

   • The Two-County Region is more diverse than the nation as a whole (see Figure 11)

   • The Two-County Region’s racial breakdown closely aligns with the benchmark
     communities (see Figure 11)                                                        FIGURE 11. RACIAL BREAKDOWN 2009
                                                                                                                         White Black            Asian/Pacific Other
   • The Two-County Region’s Hispanic population has increased since 2000, most         100%                1.4%                                                                        3.9%              2.3%
                                                                                                10.3%        0.2%             9.7%              4.8%          5.6%                      1.4%              0.6%             9.1%
     notably in Harrison County, as has been the trend nationwide (see Figure 10)                1.1%       19.9%            6.79%              1.4%          1.6%                                                         4.6%
                                                                                        80%                                  22.5%             22.1%         16.4%                  34.1%                37.9%            12.4%
                                                                                                22.7%
                                                                                        60%

                                                                                        40%                 78.6%                              71.7%               76.4%                                                  73.9%
                                                                                                65.8%                           6.4%                                                60.6%                59.2%
                                                                                        20%

                                                                                         0%
                                                                                                Harrison     Stone           2 County         Huntsv ille
                                                                                                                                              Huntsville      Pensacola
                                                                                                                                                              Pensacola           Sav annah
                                                                                                                                                                                  Savannah             Mississippi         U.S.
                                                                                                County      County              Region          MSA
                                                                                                                                                MSA             MSA
                                                                                                                                                                MSA                 MSA
                                                                                                                                                                                    MSA
                                                                                                                                                                                                 Source: Decision Data Resources




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                               Report 1: Market Assessment | 18
                                                                                                                       2007-2008 MIGRATION: LARGEST GAINS / LOSSES
                                                                                                                                         Two-County Region
                                                                                                                        City                                        Net Migration

                                                                                                                        Honolulu, HI                                                 66
                                                                                                                        Virginia Beach, VA                                           66
                                                                                                                        San Diego, CA                                                65
                                                                                                                        Oxnard-Thousand Oaks, CA                                     58
                                                                                                                        Pensacola, FL                                                58
                                                                                                                        Tucson, AZ                                                  -28
                                                                           Migration Patterns                           Birmingham, AL                                              -30
                                                                                                                        Oklahoma City, OK                                           -31
 HARRISON AND STONE COUNTIES MIGRATION 2007-2008                                                                        Huntsville, AL                                              -34
                                                                                                                        Cookeville, TN                                              -72
                                                                                                                                                       Source: Internal Revenue Service




                                                                                                                  On a net basis, the Two-County Region gained 1,731 new
                                                                                                                  residents as a result of net in-migration in the 2007-2008 time
                                                                                                                  period and Stone County gained 236 new residents from
                                                                                                                  Harrison County.
    Oxnard-
    Thousand                                                                      Virginia Beach                   • The majority of new residents coming into the Two-County
                                                                                                                     Region arrived from cities that also have a strong military
    Oaks                                                                                                             presence
                                                                        Cookeville
                                 Oklahoma City                                                                     •    The Two-County Region lost the most residents to
                                                                        Huntsville                                      Cookeville, TN; Oreck moved its Long Beach
     San Diego Tucson                                                  Birmingham                                       manufacturing facility to Cookeville during this time period


                                                                        Pensacola
                               Metro Area
                                                              Harrison-Stone
     Honolulu                  In-migration: 13,826
                               Out-migration: 12,095             counties
                               Net Migration: 1,731

                                                                               Source: Internal Revenue Service
Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                          Report 1: Market Assessment | 19
                                                                                                        FIGURE 12. WAGES AND EDUCATION
                                                                                                                PER CAPITA INCOME AND % POPULATION WITH BACHELOR’S +, 2009
                                                                                                                                             Per Capita Income     % Population w ith Bachelor's +
                                                                                                            $30,000                                                                                            $26,485     50%
                                                                                                                                                        $24,385                     $25,089
                                                                                                                                                                        $21,115                                            40%
                                                                                                            $20,000   $18,591               $18,432                                               $19,598
                                                                                                                                  $16,583               34.8%                                                              30%

                                                                                                                                                                                     26.7%                     28.0%       20%
                                                                                                            $10,000    21.9%                                            23.5%
                                                                                                                                            20.2%                                                    20.8%

                                                                            Educational Attainment              $0
                                                                                                                                  14.1%
                                                                                                                                                                                                                           10%

                                                                                                                                                                                                                           0%
                                                                                                                      Harrison
                                                                                                                      Harrison    Stone Two-County Huntsville Pensacola Savannah Mississippi
                                                                                                                                   Stone Tw o-County Huntsv ille Pensacola Sav annah                            U.S.
                                                                                                                      County
                                                                                                                       County     County
                                                                                                                                  County  Region
                                                                                                                                           Region      MSA
                                                                                                                                                       MSA         MSA
                                                                                                                                                                   MSA       MSA
                                                                                                                                                                             MSA
                                                                                                                                                                                               Source: Decision Data Resources



Educational attainment levels in the Two-County Region are low compared to benchmark
communities and the U.S., while slightly higher than the State of Mississippi

  •   20.2% of residents in the Two-County Region age 25 or older have a
      bachelor’s degree (see Figure 13)                                                     FIGURE 13. EDUCATIONAL ATTAINMENT 2009
  •   More than 50% of the Two-County Region‘s population age 25 or older has
      some college level education/training or higher, closely aligning with national                  No High School       High School Graduate      Some College           Associate's        Bachelor's or Higher
                                                                                            100%
      trends                                                                                        21.9%         14.1%          20.2%                       23.5%                               20.8%
                                                                                                                                                                                  26.7%                          28.0%
                                                                                             80%                  12.9%                      34.8%
  •   20% of Stone County residents and 16% of Harrison County residents age 25                     10.0%                        9.9%                            9.5%                             7.8%
                                                                                                                                                                                  8.8%                            7.5%
      or older have no high school degree                                                    60%                  21.1%          22.3%        7.0%                                               19.5%
                                                                                                    21.6%                                                    22.7%                18.9%                          19.4%
                                                                                                                                             20.5%
  •   Per capita income levels are a good indicator of educational attainment levels         40%
                                                                                                                  32.1%                                                                          32.2%
      in regions and communities. Figure 12 demonstrates that per capita incomes                    30.6%                        30.5%
                                                                                                                                                             32.2%                33.5%                          30.0%
      increase when educational attainment levels rise                                                                                       25.2%
                                                                                             20%
                                                                                                    15.9%         19.7%          17.0%       12.4%           12.2%                12.1%          19.8%           14.9%
  •   Per capita income levels in the Two-County Region are low compared to the              0%
      benchmark communities and the U.S. (see Figure 12)
                                                                                                   Harrison
                                                                                                   Harrison      Stone Two-County Huntsville Pensacola Savannah Mississippi
                                                                                                                  Stone Tw o-County Huntsv ille Pensacola Savannah Mississippi                                    U.S.
                                                                                                                                                                                                                  U.S.
                                                                                                   County        County  Region       MSA         MSA       MSA
                                                                                                   County         County         Region       MSA                MSA              MSA
                                                                                                                                                                                              Source: Decision Data Resources




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                         Report 1: Market Assessment | 20
                                                                                                          FIGURE 14. GROWTH IN EDUCATIONAL ATTAINMENT
                                                                                                             % CHANGE OF POPULATION WITH A BACHELORS DEGREE OR HIGHER, 1990-2009

                                                                                                                             U.S.
                                                                                                                             U.S.                                                   75.8%

                                                                                                                      Mississippi                                         60.2%
                                                                                                                 Sav annah MSA
                                                                                                                 Savannah MSA                                                                     113.5%
                                                                                                                 Pensacola MSA
                                                                                                                 Pensacola MSA                                                               89.5%

                                                                                                                 Huntsville MSA
                                                                                                                 Huntsv ille                                                            81.5%

                                                                                                            Two-County Region
                                                                                                            Tw o-County Region                                      49.6%

                                                                                                                   Stone County
                                                                                                                   Stone County                                                 69.6%

                                                                                                                Harrison County
                                                                                                                Harrison County                                    48.7%

                                                                                                                                    0%                                 60%                                  120%
                                                                                                                                                                                    Source: Decision Data Resources

                                                                          Educational Attainment          FIGURE 15. GROWTH IN EDUCATIONAL ATTAINMENT
                                                                                                             % CHANGE OF POPULATION WITH A HIGH SCHOOL DEGREE OR HIGHER, 1990-2009

                                                                                                                            U.S.
                                                                                                                            U.S.                                          44.1%
                                                                                                                     Mississippi
                                                                                                                     Mississippi                                               49.5%
Educational attainment levels in the Two-County Region are low. Growth in residents with a
bachelors degree or higher has been positive since 1990, though less robust than benchmark                      Sav annah MSA
                                                                                                                Savannah MSA                                                                  66.8%
communities, and 6.2% below the national average.                                                               Pensacola MSA
                                                                                                                Pensacola                                                                       68.9%
                                                                                                                Huntsv ille MSA
                                                                                                                Huntsville MSA                                                          60.5%
 • Growth in educational attainment was slower than growth rates in the benchmark communities,              Two-County
                                                                                                           Tw o-County Region                                    33.3%
   Mississippi, and the U.S. between 1990 and 2009 (Figure 14 shows growth in the population with a               Stone
                                                                                                                  Stone County                                                                              83.2%
   bachelors degree and Figure 15 shows growth in the population with a high school diploma)
                                                                                                               Harrison County
                                                                                                               Harrison County                                 30.4%

 • Stone County has seen growth in its population with a high-school diploma, and growth in its                                     0%                                     50%                                         100%
   population with a bachelor’s degree or higher is in line with both state and U.S. growth rates                                                                                        Source: Decision Data Resources

                                                                                                          FIGURE 16. HIGH SCHOOL GRADUATION RATES
 • High school graduation rates in each of the Two-County Region school districts outpaced
                                                                                                               2008-2009 GRADUATION RATE BY SCHOOL DISTRICT
   graduation rates in the state and the majority outpaced the national graduation rate (see Figure 16)
                                                                                                                 Harrison County School District                                             72.2%

                                                                                                                          Gulfport School District                                            74.2%

                                                                                                                   Stone County School District                                                 78.7%

                                                                                                                     Bilox i Public School District                                               81.6%

                                                                                                                     Long Beach School District                                                   82.0%

                                                                                                            Pass Christian Public School District                                                   85.4%

                                                                                                                                      Mississippi                                           71.4%

                                                                                                                                             U.S.                                              77.1%

                                                                                                                                                      0%        25%          50%          75%          100%
                                                                                                                                            Sources: MS Dept. of Education, National Center for Education Statistics

Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                        Report 1: Market Assessment | 21
                                                                                                         FIGURE 17. MEDIAN HOUSEHOLD INCOME
                                                                                                                 MEDIAN HOUSEHOLD INCOME, 2009

                                                                                                           $60,000                                          $55,903
                                                                                                                                                                                                             $53,684
                                                                                                                                                                                     $51,058
                                                                                                                        $45,210                                          $47,177
                                                                                                                                               $44,788
                                                                                                           $45,000                   $38,442                                                    $40,191


                                                                                                           $30,000


                                                                                            Income         $15,000


                                                                                                                  $0
The median household income in the Two-County Region is 19% below the U.S. median                                        Harrison
                                                                                                                         County
                                                                                                                                      Stone
                                                                                                                                      County
                                                                                                                                               Two-County
                                                                                                                                                 Region
                                                                                                                                                            Huntsville   Pensacola   Savannah Mississippi       U.S.
                                                                                                                                                              MSA          MSA         MSA
household income, and lower than each of the benchmark communities.                                                                                                                   Source: Decision Data Resources


   • The median household income in Harrison County is $45,210, higher than the statewide
     median household income, but lower than all three benchmarks and the U.S. (see
     Figure 17)
                                                                                               FIGURE 18. HOUSEHOLD INCOME DISTRIBUTION 2009
   • The median household income in Stone County is below $40,000 and lower than the                                   $0 to $14K     $15K to $34K      $35K to $49K       $50K to $99K       $100K+
                                                                                               100%
     median household income in Mississippi (see Figure 17)                                            13.1%        10.8%           13.0%                       14.5%          19.0%          11.9%
                                                                                                                                                22.6%                                                        21.2%
                                                                                                80%
                                                                                                                    27.4%                                                                     27.9%
   • Nearly 39% of the households in the Two-County Region have an income below                        31.8%                        31.6%                       32.6%
                                                                                                                                                32.5%                          32.0%                         32.1%
     $34,000 (see Figure 18)                                                                    60%
                                                                                                                    14.5%                                                                     15.4%
                                                                                                       17.0%                        16.8%                       16.4%
                                                                                                40%                                                                            13.5%                         14.5%
   • Household incomes in the Two-County Region are higher than household incomes                                                               14.1%
                                                                                                                    28.4%                                                                     25.0%
                                                                                                       24.1%                        24.5%                       23.3%          21.6%
     statewide                                                                                  20%                                             19.7%                                                        20.2%

                                                                                                       14.0%        18.8%           14.3%                       13.1%          13.8%          19.8%          11.9%
                                                                                                                                                11.2%
                                                                                                0%
                                                                                                      Harrison
                                                                                                      Harrison      Stone
                                                                                                                   Stone       Tw o-County Huntsville Pensacola Sav annah Mississippi
                                                                                                                               Two-County Huntsv ille Pensacola Savannah Mississippi                          U.S.
                                                                                                                                                                                                              U.S.
                                                                                                      County
                                                                                                       County      County
                                                                                                                   County        Region
                                                                                                                                 Region      MSA
                                                                                                                                            MSA         MSA
                                                                                                                                                        MSA       MSA
                                                                                                                                                                  MSA
                                                                                                                                                                                       Source: Decision Data Resources




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                        Report 1: Market Assessment | 22
                                                                                                          FIGURE 19. HOUSEHOLD INCOME GROWTH
                                                                                                                  % CHANGE IN MEDIAN HOUSEHOLD INCOME, 1990-2009

                                                                                                                110%    103.4%          102.7% 103.1%                                                          99.1%
                                                                                                                                                                                                   88.8%
                                                                                                                                                                                     82.8%
                                                                                                                                                                     74.9%                                                  78.3%



                                                                                                 Income         55%




Incomes in the Two-County Region are increasing more rapidly than national averages, but low
                                                                                                                 0%
household incomes are a concern.                                                                                           Harrison      Stone      Two-County       Huntsville      Pensacola   Savannah     Mississippi    U.S.
                                                                                                                           County        County       Region           MSA             MSA         MSA
                                                                                                                                                                                                       Source: Decision Data Resources
   • The Two-County Region has experienced income growth of more than 100% since 1990, higher
     than all of the benchmark communities, Mississippi, as well as the U.S. as a whole (see Figure 19)
                                                                                                          FIGURE 20. POVERTY
   • Despite strong income growth in the Two-County Region, poverty rates in both Harrison and Stone
                                                                                                                % OF POPULATION LIVING IN POVERTY, 2008
     counties are above 16%, and substantially higher than the nationwide rate (see Figure 20)
                                                                                                          25%
                                                                                                                                                                                                            20.8%
                                                                                                          20%      16.2%              18.1%                             16.0%              17.0%
                                                                                                          15%                                                                                                               13.2%
                                                                                                                                                      11.3%
                                                                                                          10%
                                                                                                           5%
                                                                                                           0%
                                                                                                                   Harrison           Stone         Madison
                                                                                                                                                  Madison County,      Escambia
                                                                                                                                                                        Escambia   Chatham
                                                                                                                                                                                    Chatham               Mississippi
                                                                                                                                                                                                          Mississippi       U.S.
                                                                                                                                                                                                                            U.S.
                                                                                                                   County             County       County, AL          County, FL County, GA
                                                                                                                                                   AL (Huntsville)     County, FL  County, GA
                                                                                                                                                   (Huntsville)       (Pensacola) (Savannah)
                                                                                                                                                                       (Pensacola)        (Savannah)
                                                                                                                                                                                                          Source: US Census Bureau




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                                   Report 1: Market Assessment | 23
                                                                                                 FIGURE 21. BUSINESS ESTABLISHMENT GROWTH
                                                                                                    CHANGE IN NEW BUSINESS ESTABLISHMENTS, 2001-2009
                                                                                                    Harrison County                     5.2%
                                                                                                     Stone County
                                                                                                      Stone County                                                      16.0%
                                                                                                 Two-County Region                       5.9%
                                                                                                   Huntsv ille MSA
                                                                                                    Huntsville MSA                                                            18.1%
                                                                                                    Pensacola MSA                                                                              24.5%
                                                                                                   Sav annah MSA
                                                                                                    Savannah MSA                                                                             23.4%
                                                                                                       Mississippi                                        11.3%
                                                                                                             U.S.                                            13.0%

                                                                                                                      0%                         10%                           20%                           30%
                                                                                                                                                                                  Source: Bureau of Labor Statistics


                                                                                                 FIGURE 22. JOB GROWTH

What are the economic realities of the Two-County Region?                                            EMPLOYMENT CHANGE, 2001-2009

                                                                                                                U.S.                                          2.1%
                                                                                                          Mississippi            -5.0%

   JOB GROWTH                                                                                         Savannah MSA                                                                                    16.6%

   The Two-County Region has been able to add new businesses since 2001, but job creation has        Pensacola MSA                                                          7.3%

   been a challenge and unemployment levels have increased as a result.                               Huntsville MSA                                                  5.3%
                                                                                                  Two-County Region            -6.5%
     • Business establishment growth was less than 6% in the Two-County Region between                   Stone County                                                                 11.0%
       2001 and 2009, lower than in the benchmark communities, the state, and the U.S. (see
                                                                                                      Harrison County -7.8%
       Figure 21)
                                                                                                  -20%       -15%        -10%          -5%           0%            5%          10%           15%           20%
     • The Two-County Region lost 6.5% of its jobs over the last decade despite job growth of                                                                                Source: Bureau of Labor Statistics

       11% in Stone County (see Figure 22)                                                       FIGURE 23. UNEMPLOYMENT RATE
                                                                                                      UNEMPLOYMENT RATE, 2001-2009
     • Each benchmark community experienced solid job growth over the same time period
                                                                                                                        U.S.                      Harrison County                            Stone County
     • Although the unemployment rate in the Two-County Region increased from 4.4% in 2001
                                                                                                   12%
       to 7.6% in 2009, it decreased over 3 percentage points from the 10.8% rate in 2005 (see
       Figure 23)                                                                                  10%

                                                                                                    8%
     • The unemployment rate in the Two-County Region was lower than the U.S.                       6%
       unemployment rate in 2009
                                                                                                    4%

                                                                                                    2%

                                                                                                    0%
                                                                                                      2001      2002           2003      2004         2005        2006         2007         2008         2009
                                                                                                                                 Source: BLS Local Area Unemployment Statistics and Current Population Survey


  Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                              Report 1: Market Assessment | 24
                                                                                                           FIGURE 24. LABOR FORCE GROWTH
                                                                                                                 % GROWTH IN LABOR FORCE, 2001-2009
                                                                                                           25%                                                       22.6%
                                                                                                           20%
                                                                                                                             14.7%
                                                                                                           15%                                             13.0%
                                                                                                                                                 9.8%
                                                                                                           10%                                                                                    7.2%
                                                                                                            5%

                                                                                                            0%
                                                                                                                                                                                   -0.8%
                                                                                                           -5%
                                                                                                                   -4.6%               -3.2%
                                                                                                                  Harrison   Stone Two-County Huntsville Pensacola Savannah Mississippi           U.S.
                                                                                           Labor Force            County     County  Region     MSA        MSA       MSA
                                                                                                                                                                         Source: Bureau of Labor Statistics




 The Two-County Region has experienced a decline in its labor force since 2001, despite strong
 labor force growth in Stone County over this time period. (see Figure 24)


   • Population declines since 2001, and comparatively low and declining labor force participation rates   FIGURE 25. LABOR FORCE PARTICIPATION RATE
     are contributing factors to the declining labor force in the Two-County Region
                                                                                                                 % OF POPULATION IN LABOR FORCE, 2009
                                                                                                           55%
   • The labor force participation rate (47.9%) in 2009 was approximately 3% below the national
                                                                                                                                                                    51.4%                        50.7%
     average (see Figure 25)                                                                               50%
                                                                                                                                                49.9%
                                                                                                                   48.0%              47.9%
                                                                                                                             46.9%
                                                                                                                                                          46.3%
                                                                                                           45%                                                                    44.0%


                                                                                                           40%

                                                                                                                  Harrison   Stone Two-County Huntsville Pensacola Savannah Mississippi           U.S.
                                                                                                                  County     County  Region     MSA        MSA       MSA
                                                                                                                                                                        Source: Bureau of Labor Statistics




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                             Report 1: Market Assessment | 25
                                                                                                       FIGURE 26. EMPLOYMENT CHANGE
                                                                                                          Two-County Region 2001-2009

                                                                                                                                Trade                                       Professional Services

                                                                                                        14,000                  Education & Health Services                 Manufacturing




                                                                  Employment Diversification
                                                                                                         4,000
                                                                                                                 2001   2002    2003     2004       2005       2006        2007         2008        2009
 • Employment in the Two-County Region is concentrated in five main industry super-sectors: leisure
   and hospitality, trade (which includes retail trade), professional services, education and health                                                Source: BLS Quarterly Census of Employment and Wages

   services, and government, all of which accounts for nearly two-thirds of the Two-County Region’s
   non-farm employment                                                                                 FIGURE 27. LEISURE & HOSPITALITY
                                                                                                          Two-County Region Employment 2001-2009
 • The manufacturing sector represents over 15% of total employment in Stone County
                                                                                                                                           Leisure & Hospitality
 • Two industry sector findings emerge:                                                                 27,000      26,947
   1) Employment decreased in the leisure and hospitality industry between 2001 and 2009 (see
   Figure 27)
   2) Regional employment in the professional services industry grew more than 37% between 2001
   and 2009 (see Figure 26)                                                                                                                                                                  19,432

 • These findings will be explored in more depth in the next phase of Accelerate to 2060
                                                                                                        15,000

 • The next three pages break down employment by sector and employment, and business growth                  2001       2002   2003     2004    2005        2006       2007       2008       2009

   rates by sector, and compares these to the national sector breakdown and growth rates                                                        Source: BLS Quarterly Census of Employment and Wages




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                          Report 1: Market Assessment | 26
                                                    Harrison County Industry Diversification
FIGURE 28. HARRISON COUNTY TOP TEN INDUSTRIES BY EMPLOYMENT                                                                   FIGURE 29. HOW THE U.S. COMPARES IN THESE INDUSTRIES
      HARRISON COUNTY EMPLOYEES PER INDUSTRY SUPERSECTOR, 2009                                                                    U.S. EMPLOYEES PER INDUSTRY SUPERSECTOR, 2008

                                                              Professional Services 11.2%                                                                                                   Education & Health Services 16.0%

                                                                                 Education & Health Services 10.3%                     Professional Services 14.4%
                    Trade 16.5%
                                                                                                                                                                                                               Government 6.5%


                                                                                        Government 9.1%
                                                                                                                                                                                                                  Construction 5.2%



                                                                                        Construction 7.1%                                 Trade 17.6%
                                                                                                                                                                                                                Manufacturing 10.3%

    Leisure & Hospitality 26.6%                                                  Manufacturing 5.9%

                                                                          Financial Activities 4.9%                                                                                                      Financial Activities 6.6%
                                               Other 3.7%     Transportation & Utilities 4.7%                                             Leisure & Hospitality 11.4%                            Transportation & Utilities 4.0%
                                                                                                                                                                            Other 7.8%
                                                                     Source: BLS Quarterly Census of Employment and Wages
                                                                                                                                                                                 Source: BLS Quarterly Census of Employment and Wages




   FIGURE 30. BUSINESS ESTABLISHMENT GROWTH BY INDUSTRY,                                                                      FIGURE 31. EMPLOYMENT GROWTH BY INDUSTRY, 2001-2009
   2001-2009
                                                                                                  Growth        U.S. Growth                                                                                      Growth      U.S. Growth
     NEW BUSINESSES IN HARRISON COUNTY BY INDUSTRY SUPERSECTOR                                                                 NEW JOBS IN HARRISON COUNTY BY INDUSTRY SUPERSECTOR
                                                                                                   Rate            Rate                                                                                           Rate          Rate
     Construction                                                                   122           27.1%             7.4%                                                                                                        1.0%
                                                                                                                               Professional Services                                                   2,159     36.9%
     Professional Services                                                     89                  14.4%           21.3%                                                                               958                      23.3%
                                                                                                                               Education & Health Services                                                        15.1%
     Financial Activities                                                66                        13.7%           16.1%                                                                               784                     -12.2%
                                                                                                                               Construction                                                                       18.4%
     Education & Health Services                                    52                             12.0%           26.3%                                                                          468                            -1.2%
                                                                                                                               Financial Activities                                                               15.6%
     Leisure & Hospitality                               19                                         4.3%           16.4%                                                                        122                              -3.8%
                                                                                                                               Trade                                                                               1.1%
     Government                                         13                                         31.7%             6.3%                                                                       74                                6.2%
                                                                                                                               Government                                                                          1.2%
     Information                               -7                                                  -9.9%            -4.2%                                                               -46                                       4.6%
                                                                                                                               Natural Resources & Mining                                                        -69.7%
     Transportation & Utilities                -8                                                  -4.6%             4.3%                                                            -297                                      -21.8%
                                                                                                                               Information                                                                       -24.5%
     Natural Resources & Mining           -11                                                     -55.0%            -1.4%                                                            -407                                         3.9%
                                                                                                                               Other Services                                                                    -19.4%
     Trade                               -16                                                       -1.7%             2.0%                                                        -451                                            -3.7%
                                                                                                                               Transportation & Utilities                                                        -11.9%
     Manufacturing                 -32                                                            -18.7%           -11.5%                                                   -1,005                                             -27.9%
                                                                                                                               Manufacturing              -7,709                                                 -19.3%
     Other Services          -48                                                                  -12.1%           25.9%                                                                                                          9.4%
                                                                                                                               Leisure & Hospitality                                                             -28.9%

                      -75      -50       -25        0    25    50        75     100       125    150                                                  -6,500       -4,125   -1,750               625             3,000
                                                                     Source: BLS Quarterly Census of Employment and Wages
                                                                                                                                                                                        Source: BLS Quarterly Census of Employment and Wages




 Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                                                                   Report 1: Market Assessment | 27
                                                    Stone County Industry Diversification
FIGURE 32. STONE COUNTY TOP TEN INDUSTRIES BY EMPLOYMENT                                                                           FIGURE 33. HOW THE U.S. COMPARES IN THESE INDUSTRIES
    STONE COUNTY EMPLOYEES PER INDUSTRY SUPERSECTOR, 2009                                                                           U.S. EMPLOYEES PER INDUSTRY SUPERSECTOR, 2008
                                                                                                                                                                                     Education & Health Services 16.0%
             Leisure & Hospitality 14.1%                            Education & Health Services 14.9%
                                                                                                                                                                                                                 Government 6.5%
                                                                                                                                         Leisure & Hospitality 11.4%
                                                                                                                                                                                                                      Natural Resources & Mining
               Manufacturing
                                                                                                                                                                                                                      1.6%
                     15.8%
                                                                                         Government 7.7%
                                                                                                                                     Manufacturing 10.3%
                                                                                                                                                                                                                           Professional Services 14.4 %
                                                                                         Natural Resources &
                                                                                         Mining 6.3%

                                                                                  Professional Services 6.2 %                                                                                                           Transportation & Utilities 4.0%
                    Trade 20.5%
                                                                                                                                                      Trade 17.6%
                                                                  Transportation & Utilities 5.5%
                                                                                                                                                                                                                 Financial Activities 6.6%
                                                             Financial Activities 4.3%
                                           Other 4.7%
                                                                                                                                                                                           Other 11.5%

                                                    Source: BLS Quarterly Census of Employment and Wages                                                                                               Source: BLS Quarterly Census of Employment and Wages




   FIGURE 34. BUSINESS ESTABLISHMENT GROWTH BY INDUSTRY,                                                                            FIGURE 35. EMPLOYMENT GROWTH BY INDUSTRY, 2001-2009
   2001-2009
                                                                                                        Growth U.S. Growth                                                                                                            Growth U.S. Growth
     NEW BUSINESSES IN STONE COUNTY BY INDUSTRY SUPERSECTOR                                                                          NEW JOBS IN STONE COUNTY BY INDUSTRY SUPERSECTOR
                                                                                                         Rate     Rate                                                                                                                 Rate     Rate
     Leisure & Hospitality                                                                           15 88.2%    16.4%               Trade                                                                                                           -3.8%
                                                                                                                                                                                                                               290 81.9%
     Construction                                                                                 12     66.7%     7.4%              Education & Health Services                                                                   97.1%            23.3%
                                                                                                                                                                                                                           231
     Financial Activities                                                                    10           58.8%         16.1%        Leisure & Hospitality                                                                             77.6%          9.4%
                                                                                                                                                                                                                    194
     Professional Services                                                           6                    25.0%         21.3%        Professional Services                                                                             83.0%          1.0%
                                                                                                                                                                                                88
     Transportation & Utilities                                                  5                        29.4%          4.3%        Transportation & Utilities                                                                        62.3%         -3.7%
                                                                                                                                                                                           66
     Education & Health Services                                                 5                        31.3%         26.3%        Government                                       33                                               15.9%          6.2%
     Other Services                                                     1                                   7.1%        25.9%        Construction                                    20                                                23.5%       -12.2%
     Government                                                         1                                   9.1%         6.3%        Information                                5                                                      35.7%       -21.8%
     Manufacturing                                                  0                                       0.0%       -11.5%        Financial Activities                       -1                                                      -0.7%        -1.2%
     Information                                                    0                                       0.0%        -4.2%        Other Services                    -9                                                                             3.9%
                                                                                                                                                                                                                                       -23.7%
     Trade                                                 -1                                              -1.4%         2.0%        Natural Resources & Mining -67                                                                                   4.6%
                                                                                                                                                                                                                                       -25.2%
     Natural Resources & Mining      -14                                                                  -38.9%        -1.4%        Manufacturing            -117                                                                                 -27.9%
                                                                                                                                                                                                                                       -19.0%

                               -20            -10               0                          10               20                                               -100           0                   100               200                300
                                                                            Source: BLS Quarterly Census of Employment and Wages                                                                      Source: BLS Quarterly Census of Employment and Wages




  Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                                                                                Report 1: Market Assessment | 28
                                              Two-County Region Industry Diversification
FIGURE 36. TWO-COUNTY REGION TOP TEN INDUSTRIES BY EMPLOYMENT                                                                       FIGURE 37. HOW THE U.S. COMPARES IN THESE INDUSTRIES
        TWO-COUNTY REGION EMPLOYEES PER INDUSTRY SUPERSECTOR, 2009                                                                     U.S. EMPLOYEES PER INDUSTRY SUPERSECTOR, 2008

                                                               Professional Services 11.0%                                                                                                               Education & Health Services 16.0%
                                                                                                                                              Professional Services 14.4%
                                                                                   Education & Health Services
                    Trade 16.7%                                                    10.5%
                                                                                                                                                                                                                              Government 6.5%


                                                                                        Government 9.1%                                                                                                                           Construction 6.2%


                                                                                                                                                Trade 17.6%
                                                                                        Construction 6.9%                                                                                                                         Manufacturing 10.3%



     Leisure & Hospitality 26.1%                                                   Manufacturing 6.3%
                                                                                                                                                                                                                         Financial Activities 6.6%
                                                                          Financial Activities 4.8%
                                                                                                                                                Leisure & Hospitality 11.4%
                                         Other 3.9%            Transportation & Utilities                                                                                                                          Transportation & Utilities 4.0%
                                                               4.7%                                                                                                                    Other 7.8%
                                              Source: BLS Quarterly Census of Employment and Wages                                                                                                  Source: BLS Quarterly Census of Employment and Wages




   FIGURE 38. BUSINESS ESTABLISHMENT GROWTH BY INDUSTRY,                                                                            FIGURE 39. EMPLOYMENT GROWTH BY INDUSTRY, 2001-2009
   2001-2009                                                                                                                                                                                                                   Growth       U.S. Growth
                                                                  Growth                                             U.S. Growth                                                                                                Rate           Rate
      NEW BUSINESSES IN TWO-COUNTY REGION BY INDUSTRY SUPERSECTOR Rate                                                               NEW JOBS IN TWO-COUNTY REGION BY INDUSTRY SUPERSECTOR
                                                                                                                        Rate
         Construction                                        134   28.6%                                                 7.4%        Professional Services                                                            2,247     37.8%            1.0%
         Professional Services                         95          14.8%                                                 21.3%       Education & Health Services                                                      1,189     18.0%           23.3%
          Financial Activities                                                76                         15.2%           16.1%       Construction                                                                  804          18.5%          -12.2%
          Education & Health Services                                   57                               12.7%           26.3%       Financial Activities                                                     467               14.9%           -1.2%
          Leisure & Hospitality                                    34                                      7.4%          16.4%       Trade                                                                    412                3.4%           -3.8%
          Government                                          14                                         26.9%            6.3%       Government                                                              107                 1.6%            6.2%
          Transportation & Utilities                 -3                                                   -1.6%                      Natural Resources & Mining                                -113                            -34.0%            4.6%
                                                                                                                          4.3%
          Information                                -7                                                   -9.3%                      Information                                              -292                             -23.8%          -21.8%
                                                                                                                         -4.2%
          Trade                                -17                                                        -1.7%                      Transportation & Utilities                               -385                              -9.9%           -3.7%
                                                                                                                          2.0%
          Natural Resources & Mining -25                                                                -44.6%                       Other Services                                          -416                              -19.5%            3.9%
                                                                                                                         -1.4%
          Manufacturing                      -32                                                                                     Manufacturing                                          -1,122                             -19.3%          -27.9%
                                                                                                        -17.3%          -11.5%
          Other Services               -47                                                              -11.4%           25.9%       Leisure & Hospitality -7,515                                                              -27.9%            9.4%

                           -100                           0                     100                       200                                               -6,000            -3,000                     0                     3,000
                                                                             Source: BLS Quarterly Census of Employment and Wages                                                                   Source: BLS Quarterly Census of Employment and Wages




    Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                                                                           Report 1: Market Assessment | 29
                                                                                                        Major Employers
                       MAJOR HARRISON COUNTY EMPLOYERS                                                                                       MAJOR STONE COUNTY EMPLOYERS
                  Name                              Employees              Type of Business                                       Name                      Employees               Type of Business
         Keesler Air Force Base                        10896                        Military                     Mississippi Gulf Coast Community College      800            Post-Secondary Education

   Naval Construction Battalion Center                  5950                        Military                           Stone County School District            550                         Education
            Memorial Hospital                           2894                    Health Care                           Stone County Hospital Complex            350                       Health Care
      Beau Rivage Resort & Casino                       2889                       Gaming                                  Hood Industries, Inc.               290           Wood Product Manufacturing
          IP Casino Resort Spa                          1989                       Gaming                           Cellutissue Holdings/Coastal Paper         91                  Paper Manufacturing

     Harrison County School District                    1795                      Education                            Baldwin Pole Mississippi LLC            40            Wood Product Manufacturing
VA Gulf Coast Veterans Health Care Center               1780                    Health Care                            Carpenter’s Pole & Piling Co.           40            Wood Product Manufacturing

       Mississippi Power Company                        1295                        Utilities                           DeSoto Treated Materials               40            Wood Product Manufacturing

             Hancock Bank                               1213               Financial Activities                             General Dynamics                   40       Aviation, Combat Vehicles and Systems
        Island View Casino Resort                       1170                       Gaming                                  Piney Woods Pellets                 27                   Renewable Energy
             DuPont DeLisle                              973                   Manufacturing                            Derksen Storage Buildings              18           Storage Building Manufacturing

         Gulfport School District                        881                      Education                              Stone Treated Materials               14                      Wood Products

      Grand Biloxi Casino Hotel Spa                      876                       Gaming                                    D&M Fabricators                   10                       Manufacturing
       Biloxi Public School District                     850                      Education                                    Metal Tech                      10       Fabricated Metal Product Manufacturing

        Hard Rock Hotel & Casino                         845                       Gaming                                       Intrinergy                      6                   Renewable Energy

                                                                Source: Harrison County Development Commission                                                               Source: Stone County Economic Development Partnership

 Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                                 Report 1: Market Assessment | 30
                                                                                                                                                       2008 TOP U.S. PORTS (BY TOTAL LOADED TEUs)
                                                                                                                                                                  Port                           Total Loaded TEUs
                                                                                                                                                       Los Angeles                                           5,521,437
                                                                                                                                                       Long Beach                                            4,842,988
                                                                                                                                                       New York (NY and NJ)                                  4,102,516
                                                                                                                                                       Savannah                                              2,086,177
                                                                                                                                                       Norfolk Harbor                                        1,644,908
                                                                                                                                                       Oakland                                               1,547,580
                                                                                                                                                       Tacoma                                                1,458,269
                                                                                                     Port of Gulfport                                  Houston                                               1,370,591
    Expansion of the Port of Gulfport is a key economic opportunity for the Two-County Region,                                                         Charleston                                            1,307,397
    due to the planned expansion of the Panama Canal, which could create new trading
                                                                                                                                                       Seattle                                               1,224,418
    partnerships with foreign entities
                                                                                                                                                       Honolulu                                               858,947
• Gulfport is the largest importer of green fruit in the Gulf of Mexico; specifically, specializing in
  bananas shipped from Central and South America, many of which are transported to the large                                                           San Juan                                               800,625
  Midwestern consumer market                                                                                                                           Port Everglades                                        677,340
• Rolled paper is the prominent southbound export, and it’s ultimately used to carry the inbound fruit                                                 Miami                                                  665,243
•     The Port of Gulfport focuses its                                                                                                                 Jacksonville                                           543,674
      resources on container cargo,
      and Figures 40 and 41                                                                                                                            Baltimore                                              505,362
                                                 FIGURE 40. PORT GROWTH
      demonstrate the Port of Gulfport’s                                                                                                               Anchorage                                              288,441
                                                    PORT OF GULFPORT GROWTH (IN TEUS LOADED 2005-2008)
      growth and 2008 ranking in TEUs
                                                                                                                                                       New Orleans                                            242,327
      (twenty-foot equivalent units)               180000
      loaded                                                                                                                       172,489             Portland                                               203,568
                                                                                                         169,443
•     Increasing and diversifying export                                        161,435                                                                Philadelphia                                           198,717
      goods combined with improved
      infrastructure, resulting from                          150,770                                                                                  Gulfport                                            172,489
                                                   150000
      projects such as the “Port                                                                                                                       Wilmington, DE                                         171,725
      Connector Road Project” and
      upgrades to the Kansas City                                                                                                                      Boston                                                 163,178
      Southern railroad line to                                                                                                                        Wilmington, NC                                         145,368
      Hattiesburg, provide the Two-                120000
      County Region with an                                     2005               2006                     2007                      2008             Palm Beach                                             135,434
      opportunity to attract distribution                                  Source: US Army Corps of Engineers; Waterborne Commerce Statistics Center
                                                                                                                                                                         Source: US Army Corps of Engineers, Waterborne Commerce Statistics Center

      related companies
Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                                                  Report 1: Market Assessment | 31
                                                                                                                 FIGURE 41: HOTEL OCCUPANCY RATES
                                                                                                                   ANNUAL RATES 2007-2010 (2010 THROUGH FEB.)
                                                                                                                                 Gulfport-Bilox i MSA              Mississippi                      U.S.
                                                                                                                   70%

                                                                                                                   60%

                                                                                                                   50%

                                                                                                                   40%

                                                                                                                   30%

                                                                                                                   20%
                                                                                                                      2007                     2008                     2009                         Feb. 2010

                                                                                                                                                                    Source: Mississippi Hotel & Lodging Association



                                                                                                Tourism
 The tourism industry is generally concentrated in Gulfport and                                                  VACATION ACTIVITIES
 Biloxi and is heavily reliant on the gaming industry; the Two-
                                                                                                    Total U.S.       Gulfport-          Gulf Shores,          Pensacola,                      New
 County Region must look to support additional tourism assets and
                                                                                                    Travelers         Biloxi                 AL                  FL                       Orleans, LA
 diversify its activity options for visitors, including the addition of
 more family-oriented attractions                                         Shopping                    22%                20%                  42%                   30%                         29%
                                                                          Visiting relatives          20%                12%                  11%                   25%                         14%
 • 50% of visitors to Gulfport and Biloxi gamble during their visit
   according to a 2007 Visitor Profile Report prepared by TNS, a          Fine dining                 15%                20%                  26%                   18%                         27%
   global market research firm                                            Rural sightseeing           10%                11%                  16%                   12%                          7%
                                                                          Beach                        9%                17%                  60%                   47%                          0%
 • The average length of stay for visitors in Gulfport and Biloxi was
   2.8 nights versus a national average of 3.4 nights                     Casino/gaming                7%                50%                   7%                    3%                         21%
                                                                          Urban sightseeing            7%                8%                   10%                   11%                         22%
 • Only 23% of visitors to Gulfport and Biloxi travel with children
   according to the same report                                           State/National park          6%                3%                   14%                    8%                          1%
                                                                          Historic sites/churches      6%                5%                    6%                    9%                         16%
 • Hotel occupancy rates in the Gulfport-Biloxi MSA (comprised of
   Hancock, Harrison and Stone counties) have been consistently           Museums                      5%                2%                    6%                   15%                          6%
   higher than statewide and U.S. rates since 2007, but have              Nightclub/dancing            5%                5%                    9%                    7%                         18%
   decreased during the economic downturn, matching state and
                                                                          Wildlife viewing             4%                2%                    5%                    3%                          2%
   national trends (see Figure 41)
                                                                                                                                                        Source: TNS TravelsAmerica Visitor Profile Report 2007

Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                  Report 1: Market Assessment | 32
                                                                                                                FIGURE 42. COST OF LIVING
                                                                                                                        COST OF LIVING BY EXPENSE, 2008 (Q1)
                                                                                                                                                 Gulfport-Bilox i MSA         Huntsv ille MSA         Sav annah MSA
                                                                                                                 120




What are the unique quality of life assets of the Two-County Region?                                             100



   COST OF LIVING
   The ACCRA Cost of Living Index identifies the composite cost of living in urban areas (MSAs) by                80

   examining how they compare to national averages in groceries, housing, utilities, transportation,                      Combined          Groceries          Housing           Utilities    Transportation Health Care     Misc.
                                                                                                                         Cost of liv ing                                                                               Goods/Serv ices
   and other costs. As an example, a composite index of 95 indicates that the cost of living in the                    Note: 100 is the national average cost of living; Pensacola data unavailable                        Source: C2ER
   area is 95% of the national average.

      • ACCRA cost of living data is provided at the MSA level and is unavailable for the Pensacola             FIGURE 43. COST OF LIVING
        MSA                                                                                                             OVERALL COST OF LIVING, 2008 (Q1)
                                                                                                                                                                                               U.S. Average
      • ACCRA data for the Gulfport-Biloxi MSA is unavailable for 2009 and 2010, although 2008 data
        still provides a solid indication of the Region’s overall affordability in comparison to the U.S. and
                                                                                                                         Sav annah MSA
                                                                                                                         Savannah MSA                                                            94.5
        benchmark communities

      • The overall cost of living in the Gulfport-Biloxi MSA is considerably lower than the national
        average for all metropolitan areas, but is slightly higher than the Huntsville MSA (see Figure 43)               Huntsv ille MSA
                                                                                                                         Huntsville MSA                                                      92.4


      • Groceries and utilities were the only items found to be more expensive than the national average
        in the Gulfport-Biloxi MSA (see Figure 42)                                                                Gulfport-Bilox i MSA                                                           94.4

      • Utility costs are high in comparison to the benchmark communities as well as the U.S. (see
        Figure 42)                                                                                                                                 80                            90                        100                       110
                                                                                                                            Note: 100 is the national average cost of living; Pensacola                               Source: C2ER
                                                                                                                            data unavailable
      • Affordable housing costs combined with the low cost of transportation and cheap goods and
        services make the Gulfport-Biloxi MSA, and thus the Two-County Region very competitive from
        a cost of living standpoint

  Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                                       Report 1: Market Assessment | 33
                                                                                                              FIGURE 44. HOUSING PRICES
                                                                                                                 MEDIAN VALUE OF OWNER-OCCUPIED HOUSING UNITS, 2008

                                                                                                                 Harrison County                                                  $138,700

                                                                                                              Gulfport-Bilox i MSA                                                  $139,500
                                                                                                                 Huntsv ille MSA
                                                                                                                 Huntsville MSA                                                      $144,400

                                                                                                                 Pensacola MSA                                                           $158,000
What are the unique quality of life assets of the Two-County Region?
                                                                                                                 Sav annah MSA
                                                                                                                 Savannah                                                                      $169,800
   HOUSING PRICES & RENTAL RATES                                                                                        Mississippi                                $94,000

                                                                                                                                 U.S.                                                                 $192,400
   The Two-County Region offers an attractive quality of life, a low cost of living and a natural
   beauty that combine to create an area residents are proud to call home.                                                               $0                     $100,000                          $200,000
                                                                                                                   Note: Stone County data unavailable                     Source: American Community Survey
     • Data for median values of owner-occupied housing and rental rates are provided by the U.S.
       Census American Community Survey. Data for Stone County is unavailable
                                                                                                              FIGURE 45. RENTAL RATES
     • Population losses have created challenges in Harrison County’s housing market in the last                 MEDIAN CONTRACT RENT, 2008
       decade                                                                                                         Harrison County                                                             $673

     • High insurance rates on properties in very close proximity to the coast have been detrimental to          Gulfport-Bilox i MSA                                                            $659
       the housing market
                                                                                                                       Huntsv ille MSA
                                                                                                                       Huntsville MSA                                            $487

     • In many places, insurance costs have climbed 500% as a result of Hurricane Katrina and the                     Pensacola MSA                                                            $623
       threat of future hurricanes
                                                                                                                      Sav annah MSA
                                                                                                                      Savannah MSA                                                               $662

     • Housing prices in the Gulfport-Biloxi MSA are higher than housing prices statewide, but lower                         Mississippi                                     $435
       than housing prices in each of the benchmarks and the U.S. (see Figure 44)
                                                                                                                                      U.S.                                                         $676
     • Rental rates in the Gulfport-Biloxi MSA are similar to national rental rates, but higher than rental
       rates statewide and in each of the benchmark MSA’s (see Figure 45)                                                                     $0         $200        $400               $600              $800
                                                                                                                Note: Stone county data unavailable                          Source: American Community Survey




  Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                   Report 1: Market Assessment | 34
                                                                                                                FIGURE 46. NEW RENTAL UNITS
                                                                                                                      % OF TOTAL RENTAL UNITS BUILT 2005 OR LATER
                                                                                                                15%
                                                                                                                         10.9%           12.0%
                                                                                                                10%
                                                                                                                                                         6.8%                           7.5%
                                                                                                                                                                        4.9%                           4.4%
                                                                                                                 5%                                                                                                   3.5%

What are the unique quality of life assets of the Two-County Region?                                             0%
                                                                                                                      Harrison County Gulfport-Bilox i Huntsv ille MSA Pensacola MSA Sav annah MSA
                                                                                                                       Harrison                                                                      Mississippi      U.S.
                                                                                                                                      Gulfport-Biloxi Huntsville
   RISING RENTAL RATES                                                                                                   County            MSA
                                                                                                                                          MSA               MSA
                                                                                                                                                                        Pensacola
                                                                                                                                                                           MSA
                                                                                                                                                                                       Savannah
                                                                                                                                                                                          MSA
                                                                                                                                                                                                     Mississippi      U.S.

                                                                                                                                                                                                      Source: US Census Bureau

   Many new rental units were built post Hurricane Katrina, when construction costs were
   inflated. As a result, rental rates have increased substantially since 2005.
     • American Community Survey Data for Stone County is not available                                         FIGURE 47. RENTAL RATE INCREASE
                                                                                                                      GROWTH IN MEDIAN CONTRACT RENT 2005-2008
     • The percentage of total rental units built in 2005 or later is greater in the Gulfport-Biloxi MSA than
                                                                                                                35%      31.1%           33.9%
       in each of the benchmarks, the state, and the U.S. (see Figure 46)
                                                                                                                30%
                                                                                                                25%                                                    21.4%
     • Rental rates have grown at a high rate in the Gulfport-Biloxi MSA since 2005, suggesting that the        20%                                                                    16.1%          14.9%
       high construction costs experienced post Katrina have been passed through to renters (see                15%                                                                                                   11.9%
       Figure 47)                                                                                               10%                                      6.6%
                                                                                                                 5%
                                                                                                                 0%
                                                                                                                                      Gulfport-Biloxi
                                                                                                                      Harrison County Gulfport-Biloxi Huntsville MSA Pensacola MSA Savannah MSA
                                                                                                                        Harrison                        Huntsville     Pensacola     Savannah        Mississippi
                                                                                                                                                                                                     Mississippi      U.S.
                                                                                                                                                                                                                      U.S.
                                                                                                                         County            MSA             MSA            MSA           MSA
                                                                                                                                           MSA
                                                                                                                                                                                                     Source: US Census Bureau




  Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                             Report 1: Market Assessment | 35
What are the unique quality of life assets of the Two-County Region?
   CRIME

   Safety is a significant indicator for site selectors. Businesses want to
   locate in areas that are considered safe. Crime in the Two-County Region
   is relatively low compared to the benchmark communities, though high
   when compared to the statewide and U.S. crime rates.
                                                                              FIGURE 48. CRIME RATE
                                                                                   CRIME (RATE PER 100,000 RESIDENTS), 2008
                                                                                                                                    Property Crime        Violent Crime
     • Stakeholders expressed concern regarding increasing drug use,
       particularly in the more rural parts of the Two-County Region,                       U.S.                             3,213                             455
       and its effect on crime
                                                                                 Mississippi                               2,940                         285
     • Property crime rates in the Two-County Region are similar to
       rates in the benchmark communities on a per capita basis, but
       violent crime rates are lower, indicating that the Two-County              Sav annah
                                                                                   Savannah                                                    5,406                                        617
       Region is a relatively safe location (see Figure 48)
                                                                                  Pensacola                                                   5,103                                       950


                                                                                   Huntsv ille
                                                                                   Huntsville                                                         6,286                                              721


                                                                                      Wiggins                                                 5,223                                  449

                                                                                       Gulfport                                                 5,706                                       316


                                                                                                       0                                                3,500                                       7,000
                                                                               Note: County data unavailable; Biloxi crime data unavailable                               Source: FBI Uniform Crime Report

  Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                                   Report 1: Market Assessment | 36
What are the unique quality of life assets of the Two-County Region?
   COMMUTE TIMES

   The average commute time for residents of the Two-County Region are competitive with
   commute times nationwide
   • American Community Survey Data for Stone County is not available

   • Commute times in the Gulfport-Biloxi MSA are similar to commute times in the   FIGURE 49. AVERAGE TRAVEL TIME TO WORK
     benchmark communities and slightly lower than commute times nationwide                AVERAGE TRAVEL TIMES (IN MINUTES), 2008
     (see Figure 49)
                                                                                             Harrison County                                          22.6
   • Higher average commute in the Gulfport-Biloxi MSA than in Harrison County
     indicate that average commute times for Stone County residents are higher            Gulfport-Bilox i MSA                                             23.8
                                                                                              Huntsv ille MSA                                       21.5
                                                                                             Pensacola MSA                                                 24.1

                                                                                              Sav annah MSA                                           22.9
                                                                                                     Mississippi                                           24.0
                                                                                                                 U.S.                                           25.3

                                                                                                                            0   5    10   15   20          25           30            35
                                                                                      Note: Stone County data unavailable                                   Source: American Community Survey




  Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                  Report 1: Market Assessment | 37
                                                                                                        FIGURE 50. PRIMARY CARE PHYSICIANS
                                                                                                              PRIMARY CARE PHYSICIANS PER 100K POPULATION , 2007

                                                                                                                               Harrison County
                                                                                                                               Harrison County                                 66


                                                                                                                                  Stone County                          50

                                                                                                                                   (Huntsv ille)
                                                                                                               Madison County , AL (Huntsville)
                                                                                                               Madison County,                                                             93

                                                                                                              Escambia County, FL
                                                                                                             Escambia County , FL (Pensacola)                                         85
What are the unique quality of life assets of the Two-County Region?                                         Chatham County , GA (Sav annah)
                                                                                                              Chatham County, GA (Savannah)                                                            129


     HEALTH CARE                                                                                                                                   0                          70                        140
                                                                                                                                                                   Source: US Dept of Health and Human Services


     Health care is a growing industry nationwide, and continued growth is expected as the
     population ages. While the aging population will have economic and workforce
     development implications, it will also create healthcare challenges going forward

    • Both Harrison and Stone counties employ a low number of primary care physicians on a          FIGURE 51. LICENSED HOSPITAL BEDS
      per capita basis in comparison to the benchmark communities (see Figure 50)                      BREAKDOWN BY TYPE, Two-County Region 2007
                                                                                                                                                              CDU
    • The Two-County Region has nearly 2,000 licensed hospital beds (see Figure 51)
                                                                                                                                  Psychiatric                 20 beds (1.0%)
                                                                                                                  Rehab
    • Assuring that the Two-County Region continues to be adequately served with health                                   134 beds (6.7%)
      care will be important for long-term economic growth and critical for serving the growing              33 beds (1.6%)
      population age 55 and higher

    • Although no medical school is located in the Two-County Region, Mississippi Gulf
      Coast Community College, William Carey, and the University of Southern Mississippi all
      have nursing programs                                                                                               Acute Care                   Nursing
                                                                                                                                                        Home
                                                                                                                           816 beds
    • Health care workers, including physicians, have not been difficult to recruit to the region                           (40.7%)                1,004 beds
      indicating that hospitals in the region will continue to offer quality healthcare going                                                        (50.0%)
      forward

                                                                                                                                            Source: MS State Department of Health




  Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                Report 1: Market Assessment | 38
                                                                                                             FIGURE 52. UTILITIES
                                                                                                                   AVERAGE ELECTRICITY RATE (PER KILOWATT HOUR), 2008

                                                                                                                                            Residential                Commercial                     Industrial

                                                                                                                                                                                6.17
                                                                                                                   Harrison County                                                                     9.61
                                                                                                                                                                                                                      11.72
                                                                                                                                                                                              8.05
                                                                                                                     Stone County                                                                     9.45
                                                                                                                                                                                                                11.15
                                                                                                                                                                                      7.01
                                                                                                                   Huntsville MSA                                                            8.29
                                                                                                                                                                                             8.26
                                                                                                                                                                                         7.49
                                                                                                                                                                                                      9.37
              How competitive is the business climate?
                                                                                                                   Pensacola MSA
                                                                                                                                                                                                               10.88
                                                                                                                                                                                      6.86
                                                                                                                   Savannah MSA                                                                      9.06
                                                                                                                                                                                                            10.24
                                                                                                                                                                             5.71
                                                                                                                        Mississippi                                                                   9.38
                                                                                                                                                                                                      9.38
 COST OF DOING BUSINESS                                                                                                                                                               6.83
                                                                                                                                 U.S.                                                                        10.36
                                                                                                                                                                                                                 11.26
 This section measures the capacity of the region to support business expansion and
 development opportunities. It identifies factors (outside of workforce development) most                                               0                              5                               10                            15
                                                                                                                    *Note: Harrison County is based on MS Power rates; Stone                 Source: Energy Information Administration
 critical to small, medium, and large employers in deciding where to locate or expand                               County based on Pearl River Valley Electrical Power Association

 operations.

 • Commercial and industrial utility rates in the Two-County Region are relatively low,     FIGURE 53. PROPERTY TAXES
   but residential electricity rates in the Two-County Region are high relative to the         ESTIMATED TAXES ON $100,000 PROPERTY 2010 (CLAIMING HOMESTEAD EXEMPTION)
   benchmark communities (see Figure 52)                                                                                                                       ,1
                                                                                                                                                            $ 1 50
                                                                                            $1,200                                                                                                                           ,1
                                                                                                                                                                                                                          $ 1 39
                                                                                                                                                                       $1,030 $ 1,020
                                                                                                                                                 $ 978
 • Inconsistent property tax rates exist between different communities in the Two-                           $ 900                                                                                             $ 922
   County Region (see Figure 53)
                                                                                             $800                        $ 740 $ 756
                                                                                                                                                                                                   $ 580
                                                                                                     $ 500

                                                                                             $400
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                                                                                                                                            Sources: Harrison County Tax Assessor, Stone County Tax Assessor, Madison County, AL Tax
                                                                                                                                            Assessor, Escambia County, FL Tax Assessor, Chatham County, GA Tax Commissioners Office



Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                                     Report 1: Market Assessment | 39
                                                                                                           FIGURE 54. WAGES
                                                                                                              AVERAGE WAGES, 2009 % GROWTH, 2001-2009
                                                                                                           $52,000                                     $49,239                                         $45,551
                                                                                                                                                                               $38,302
                                                                                                                      $35,282                $35,014              $35,659                  $33,843
                                                                                                                                  $29,591

                                                                                                           $26,000

                                                  How competitive is the business climate?                             35.4%      25.8%       34.8%       34.1%     27.1%       26.9%       30.6%        25.8%

  WAGES                                                                                                        $0
                                                                                                                       Harrison   Stone     Two-County Huntsville Pensacola Savannah Mississippi           U.S.
                                                                                                                       County     County      Region     MSA        MSA       MSA
  Businesses seek competitively priced regions for better profitability. They also want                                                                      Source: BLS Quarterly Census of Employment and Wages
  to locate in communities that have appropriately skilled labor, which generally
  requires higher wages.

  • Average wages comprising all sectors were $35,014 in 2009, more than 30% lower than average            FIGURE 55. WAGE GROWTH
    wages nationwide. Average wages in the Two-County Region were 3% higher than average wages                WAGE GROWTH, 2001-2009
    in Mississippi in 2009(see Figure 54)                                                                                         Harrison County                           Stone County
                                                                                                                                  Two-County Region                         Mississippi
                                                                                                            $46,000               U.S.
  • This is a double-edged sword; the region clearly has skilled labor, however wage levels must be
    properly addressed to make it a selling point rather than a detractor

                                                                                                            $34,000
  • Wage growth in the Two-County Region has grown at a higher rate than state and national
    averages; this is a positive indicator, reducing the gap between competitive regions (see Figure 55)

                                                                                                            $22,000
                                                                                                                     2001      2002        2003    2004      2005       2006        2007       2008        2009

                                                                                                                                                              Source: BLS Quarterly Census of Employment and Wages




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                   Report 1: Market Assessment | 40
    How well does the region support entrepreneurship and innovation?
From renewable energy to creative media, all high-wage, growing industries are dependent on
technological innovation. During economic downturns, the opportunity costs of innovation                7 out of 10 high school students want
drop dramatically; commercial and industrial space costs less and higher skilled workers are                 to start their own business.
more abundant. Communities can successfully foster innovation by supporting human capital
(education), funding pre-commercial technology (research and development), protecting                     - First National Gallup Poll on
intellectual property (patents), and encouraging company start-ups through venture capital.                entrepreneurship education
                                                                                                        commissioned by the Ewing Marion
The Two-County Region performs weakly in key indicators, such as venture capital flow and university           Kaufman Foundation
research and development, but the region has significant assets, that if leveraged appropriately, can
accelerate the region into a technology-driven and knowledge-based economy.

 • The Two-County Region’s Department of Defense and related activity is an enormous generator of
   new innovative technologies in information technologies and health care
 • The University of Southern Mississippi’s (USM) research outlets, such as its School of Polymers
   and High Performance Materials, can play a key role in increasing local patent and innovation
   generation
 • NASA’s Stennis Space Center, Mississippi Enterprise for Technology, The Innovation Center and
   related activities in marine science and aquaculture serve as key resources for growing and
   developing technology-based companies
 • There is a tremendous opportunity to utilize the area’s abundance of natural resources for
   emerging renewable energy niches, such as biomass generation and energy conservation, some
   of which is already taking place in the Two-County Region




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                  Report 1: Market Assessment | 41
                                                                           ASSETS SUPPORTING THE TWO-COUNTY REGION

                                                                                   Harrison County Development Commission
                                                                                   Stone County Economic Development Partnership
                                                                                   Gulf Coast Chamber of Commerce
                                                                                   Gulf Coast Business Council
                                                                                   Mississippi Gulf Coast Alliance
                                                                                   Mississippi Gulf Coast Convention & Visitors Bureau
                                                                                   Mississippi Power


                                                                                   Biloxi Regional Medical Center
                                                                                   Garden Park Medical Center
                                                                                   Gulf Oaks Medical Center
                                                                                   Keesler Medical Center
                                                                                   Memorial Hospital at Gulfport
       How well does the region support entrepreneurship and innovation?           Stone County Hospital

REGIONAL ASSETS SUPPORTING INNOVATION                                              VA Gulf Coast Veterans Health Care System


                                                                                   Advanced Manufacturing & Technology Center
                                                                                   MGCCC Community Campus
                                                                                   MGCCC George County Center
                                                                                   MGCCC Jackson County Center
                                                                                   MGCCC Jefferson Davis Campus
                                                                                   MGCCC Perkinston Campus
                                                                                   MGCCC West Harrison County Center
                                                                                   Pearl River Community College
                                                                                   Pearl River Community College-Hancock Center
                                                                                   The University of Southern Mississippi-Gulf Park
                                                                                   Tulane University School of Continuing Studies
                                                                                   Virginia College Gulf Coast
                                                                                   William Carey University


                                                                                   Mississippi Enterprise for Technology
                                                                                   The Innovation Center
                                                                                   The University of Mississippi-Gulf Coast SBDC


                                                                                    Keesler Air Force Base
                                                                                    Military Partnership
                                                                                    Mississippi Army National Guard 1108th
                                                                                    NASA Stennis Space Center
                                                                                    Naval Construction Battalion Center


                                                                                   Gulfport-Biloxi International Airport
                                                                                    State Port at Gulfport

                                                                                    Wiggins Airport


   Accelerate to 2060 - Harrison & Stone counties, Mississippi                                         Report 1: Market Assessment | 42
                                                                                                        FIGURE 56. VENTURE CAPITAL FUNDING
                                                                                                           VC FUNDING ($MILLIONS), 2003-2009

                                                                                                                                                      MS Congressional District 4
                                                                                                                                                      AL Congressional District 5
                                                                                                         $30                                          FL Congressional District 1
                                                                                                                                                      Mississippi




                                                                                                         $15
    How well does the region support entrepreneurship and innovation?
 VENTURE CAPITAL AND PATENT ACTIVITY
                                                                                                          $0
 Technology inventors and start-ups require access to business and entrepreneurial networks
                                                                                                               2003           2004               2005              2006            2007            2008             2009
 to get the support they need to move new technology from conception to the marketplace.                                                                                                        Source: PWC Money Tree
                                                                                                           VC Funding data provided by congressional district; Note that
 Entrepreneurs and start-ups also need early stage funding to support their development, and               data for congressional district encompassing Savannah MSA is
                                                                                                           not available
 later stage funding for hiring workers and product launches.

 • Limited venture capital and angel investment in the region was identified as a barrier to economic   FIGURE 57. PATENTS
   development by multiple focus group participants and interviewees
                                                                                                           NUMBER OF PATENTS ISSUED, 2003-2008

 • Venture capital funding data is provided by congressional district                                                                            Two-County Region                              Gulfport
                                                                                                          40
                                                                                                                                                 Biloxi                                         Pensacola
                                                                                                          35
 • Mississippi Congressional District 4, which encompasses both Harrison and Stone counties, has                                                 Savannah
                                                                                                          30
   experienced little venture capital funding since 2003 ($900,000), validating the concerns held by
                                                                                                          25
   regional stakeholders (see Figure 56)
                                                                                                          20
                                                                                                          15
 • Patent data from 2003 through 2008 is provided at the city level; the Two-County Region total
                                                                                                          10
   combines patent totals in Gulfport, Biloxi, Wiggins, D’Iberville, Long Beach, and Pass Christian
                                                                                                           5
                                                                                                           0
 • Patent activity has been negligible in the Two-County Region, and much lower than patent
                                                                                                            2003               2004                2005                2006           2007                 2008             2009
   activity in the benchmark communities (see Figure 57)                                                   NOTE: Patent data is only available at the city level. Therefore data          Source: US Patent and Trademark Office
                                                                                                           is presented for major cities in the region.

 • Huntsville, not included in Figure 57, issued an average of 102 patents annually between 2003
   and 2009




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                               Report 1: Market Assessment | 43
                                                                                                    FIGURE 58. MINORITY ENTREPRENEURSHIP, 2002
                                                                                                                                          % minority population
                                                                                                    50%                                   % minority firms
                                                                                                                                          % minority firms sales receipts
                                                                                                                                                                               39.2%
                                                                                                    40%                                                       37.0%


                                                                                                    30% 25.2%                 25.5%
                                                                                                                                              22.8%                                             24.2%
                                                                                                                                                                                                      17.9%
                                                                                                    20%                            14.4%                            14.2%            14.5%
                                                                                                                12.4%                              10.9%

    How well does the region support entrepreneurship and innovation?                               10%
                                                                                                                     2.8%               3.7%
                                                                                                                                                         1.8%             2.3%
                                                                                                                                                                                          1.1%
                                                                                                                                                                                                            3.0%

                                                                                                    0%
 MINORITY-OWNED BUSINESSES                                                                                 Gulfport-Bilox i     Huntsv ille     Pensacola        Sav annah       Mississippi         U.S.
                                                                                                                MSA               MSA              MSA              MSA
 Minority-owned businesses are an important part of the Gulfport-Biloxi MSA economy, but
 there is racial disparity in the economy’s composition of entrepreneurs.                                                                                         Source: US Census Survey of Business Owners




 • Minorities made up 25.2% of the population in the Gulfport-Biloxi MSA in 2002; however, only     FIGURE 59. MINORITY BUSINESSES IN GULFPORT-BILOXI
   12.4% of businesses in the Gulfport-Biloxi MSA were minority-owned firms in 2002                 MSA
   (see Figures 58 and 59)                                                                                 % OF TOTAL NUMBER OF FIRMS, 2002


 • Less than 3% of sales receipts came from minority businesses in 2002                                                       Black             Asian         Hispanic
                                                                                                                              1,417 firms       604 firms     241 firms
                                                                                                                              7.8% of total     3.3% of total 1.3% of total
 • These figures are comparable to benchmark and nationwide trends

 • This is a nationwide challenge, but the region itself needs to create strategies to tackle the
   inequity and promote minority-owned businesses

     Note: The 2002 US Census Survey of Business Owners is the most current data. 2007 US
     Census Survey of Business Owners data has not yet been released on the local level.                  White Non-Hispanic
                                                                                                          15,987 firms
                                                                                                          87.6% of total



                                                                                                                                                      Source: US Census Survey of Business Owners




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                       Report 1: Market Assessment | 44
                                                                                                       FIGURE 60. ACADEMIC R&D EXPENDITURES
                                                                                                         R&D EXPENDITURES BY REGION (THOUSANDS), 2008


                                                                                                         Tw o-County Region*
                                                                                                       Two-County Region*                            $47,088


                                                                                                              Huntsv MSA
                                                                                                           Huntsvilleille MSA                                              $77,092

    How well does the region support entrepreneurship and innovation?
                                                                                                          Pensacola MSA
                                                                                                             Pensacola MSA            $4,337

 UNIVERSITY RESEARCH AND DEVELOPMENT
                                                                                                           Savannah MSA
                                                                                                              Sav annah MSA          $3,413

 Funding for research and development primarily flows through universities, where new
 technologies are tested and often incubated before they emerge on the commercial market.                                       $0                $50,000                             $100,000
                                                                                                                 *Statewide R&D at USM                       Source: National Science Foundation

   • R&D expenditures for each area reflect the sum of expenditures for all universities within a
     50-mile radius
                                                                                                      FIGURE 61. ACADEMIC R&D EXPENDITURES PER CAPITA
   • The University of Southern Mississippi is a valuable resource for the region, not only because      R&D EXPENDITURES PER CAPITA BY REGION, 2008
     of its extensive curriculum, but also due to its research and development activities and its
     ability to attract research dollars to the region                                                Two-County Region*
                                                                                                         Tw o-County Region*                                                            $238


   • The University of Southern Mississippi attracted over $47 million for research and                       Huntsv MSA
                                                                                                          Huntsville ille MSA                                            $190
     development activities in 2008, placing the Two-County Region second only to the Huntsville
     MSA among the benchmark communities (see Figure 60)                                                      Pensacola MSA
                                                                                                         Pensacola MSA               $10


   • On a per capita basis, the Two-County Region saw more academic research and                               Sav annah MSA
                                                                                                          Savannah MSA
                                                                                                                                     $10
     development dollars than any of the benchmark communities in 2008 (see Figure 61)
                                                                                                                                $0                 $125                                 $250
                                                                                                                 *Statewide R&D at USM                      Source: National Science Foundation




Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                    Report 1: Market Assessment | 45
                                                                                                              FIGURE 62. EMPLOYER USE OF WORKFORCE TRAINING
                                                                                                                         PROGRAMS




                                                                                                                           YES (42.3%)
                                                              Workforce Assessment
 Effective workforce development programs at both the K-12 and post-secondary level are key
 components of a solid regional economy. Regions with an established pipeline of workers                                    NO (57.7%)
 with both advanced degrees in science, technology, engineering and math programs, as well
 as technical training in specific trades provide a deep talent base upon which to recruit and
 nurture high-impact and competitive industries.

 • Programs such as the Engineering and Robotics program and “Dream It-Do It” in Gulfport, along with
   a new entrepreneurial program in Stone County, are examples of strong K-12 workforce                       FIGURE 63. EMPLOYER SATISFACTION OF WORKFORCE
   development programs. These programs educate kids and create awareness of the variety of                              TRAINING PROGRAMS
   occupational opportunities that exist

 • Nearly 60% of business survey respondents indicated they had never utilized specific workforce
   training programs (see Figure 62) indicating that the Two-County Region must make better use of
   regional workforce training programs

 • The charts on pages 47 and 48 show the top occupations in the Two-County Region in terms of both
   total employment and regional cluster concentration (local LQ) as compared to the U.S.

 • Many of the largest occupations in the Two-County Region are generally low-wage, and require little
   training (many require on-the-job training)

 • The next report in Accelerate to 2060 will explore in more depth the specific occupational
   opportunities and gaps that align specifically with the recommended target industries, and will identify
   existing and needed workforce development and education programs in the Two-County Region,
   which are key for capitalizing on these opportunities



Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                              Report 1: Market Assessment | 46
                                                                 Top Occupations in Gulfport-Biloxi MSA by Total Employment
                        Occupation                             Number     Occupational     Mean      Mean         Wage           10-YR          Education & Training
                                                              Employed    Concentration   Wage in   Wage in    Differential   U.S. Growth
                                                                (2008)     in MSA (LQ)     MSA       U.S.                      Projection
Retail Salespersons                                             3,950          1.13       $23,620   $25,050       -5.7%          8.4%         Short-term on-the-job training
Cashiers                                                        3,800          1.36       $17,970   $18,880       -4.8%          3.5%         Short-term on-the-job training
Waiters and waitresses                                          2,650          1.42       $17,200   $19,580      -12.2%          6.4%         Short-term on-the-job training
Registered nurses                                               2,600          1.30       $56,560   $65,130      -13.2%          22.2%              Associate degree
Secretaries, except legal, medical and executive                2,480          1.68       $27,160   $29,990       -9.4%          4.6%       Moderate-term on-the-job training
Janitors and cleaners, except maids and housekeepers            2,290          1.36       $21,900   $23,500       -6.8%          4.4%         Short-term on-the-job training
Gaming dealers                                                  2,280         31.81       $19,660   $19,890       -1.2%          19.0%      Postsecondary vocational award
Laborers and freight, stock, and material movers                1,880          1.02       $23,640   $24,690       -4.3%          -0.8%        Short-term on-the-job training
Maids and housekeepers                                          1,800          2.50       $18,500   $20,290       -8.8%          5.7%         Short-term on-the-job training
Bookkeeping, accounting, and auditing clerks                    1,630          1.12       $32,340   $33,800       -4.3%          10.3%      Moderate-term on-the-job training
Food preparation workers                                        1,580          2.28       $17,430   $19,850      -12.2%          4.2%         Short-term on-the-job training
First-line supervisors/managers of retail sales workers         1,500          1.61       $35,590   $39,910      -10.8%          5.3%       Experience in related occupation
Combined food preparation and serving workers                   1,490          0.70       $18,770   $17,400       7.9%           14.6%        Short-term on-the-job training
Elementary school teachers, except special education            1,440          1.19       $45,210   $52,240      -13.5%          15.8%             Bachelor’s degree
Security guards                                                 1,440          1.75       $23,360   $25,840       -9.6%          14.2%        Short-term on-the-job training
Restaurant cooks                                                1,370          1.94       $22,130   $22,750       -2.7%          7.7%         Long-term on-the-job training
Stock clerks and order fillers                                  1,370          0.93       $21,700   $23,140       -6.2%          7.2%         Short-term on-the-job training
First-line supervisors/managers of office and                   1,270          1.15       $42,030   $48,700      -13.7%          11.0%      Experience in related occupation
administrative support
General and operations managers                                 1,240          0.93       $83,100   $107,970     -23.0%          -0.1%        Bachelor’s degree or higher
Truck drivers, heavy and tractor-trailer                        1,200          0.91       $40,560   $38,720       4.8%           13.0%        Short-term on-the-job training
Fast food cooks                                                 1,130          2.57       $17,640   $17,620       0.1%           7.5%         Short-term on-the-job training
Office clerks                                                   1,040          0.45       $25,050   $26,830       -6.6%          11.9%        Short-term on-the-job training
First-line supervisors/managers of food preparation and          980           1.55       $29,660   $30,810       -3.7%          6.6%       Experience in related occupation
servers
Maintenance and repair workers                                   980           0.95       $31,020   $35,630      -12.9%          10.9%      Moderate-term on-the-job training


Construction laborers                                            970           1.21       $24,260   $32,250      -24.8%          20.5%      Moderate-term on-the-job training
                                                                                                                                                    Source: BLS Occupational & Employment Statistics



         Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                           Report 1: Market Assessment | 47
                                                                  Most Concentrated Occupations in Gulfport-Biloxi MSA vs. U.S.
                         Occupation                               Number     Occupational     Mean      Mean         Wage            10-YR          Education & Training
                                                                 Employed    Concentration   Wage in   Wage in    Differential    U.S. Growth
                                                                   (2008)     in MSA (LQ)     MSA       U.S.                       Projection
Slot key persons                                                    570          47.1        $27,810   $28,460       -2.3%           2.8%       Postsecondary vocational award
Gaming managers                                                     120          40.26       $80,710   $73,480       9.8%            11.8%      Experience in related occupation
Gaming cage workers                                                 430          32.05       $26,480   $25,970       2.0%           -10.4%        Short-term on-the-job training
Gaming dealers                                                     2,280         31.81       $19,660   $19,890       -1.2%           19.0%      Postsecondary vocational award

Gaming supervisors                                                  640          31.17       $45,520   $46,600       -2.3%           11.8%      Experience in related occupation
Gaming surveillance officers and gaming investigators               220          30.74       $30,710   $31,550       -2.7%           11.7%      Moderate-term on-the-job training
Gaming change persons and booth cashiers                            330          18.83       $23,820   $22,890       4.1%           -10.4%        Short-term on-the-job training
Bridge and lock tenders                                              40          11.33       $22,530   $39,930      -43.6%           8.5%         Short-term on-the-job training
Locker room, coatroom, and dressing room attendants                 160          11.2        $15,090   $21,490      -29.8%           13.2%        Short-term on-the-job training
Geoscientists, except hydrologists and geographers                  260          10.58       $88,210   $89,300       -1.2%           17.5%               Master’s degree
Gaming and sports book writers and runners                          130          10.24       $19,470   $22,800      -14.6%           13.2%        Short-term on-the-job training
Computer and information scientists, research                       150          7.17        $72,390   $100,900     -28.3%           24.2%               Doctoral degree
Surveyors                                                           240          5.47        $38,010   $55,980      -32.1%           14.9%             Bachelor’s degree
Emergency management specialists                                     50          5.19        $39,100   $53,460      -26.9%           21.7%      Experience in related occupation
Coin, vending, and amusement machine repairers                      140          4.31        $31,360   $30,970       1.3%            7.0%       Moderate-term on-the-job training
Conservation scientists                                              50          4.02        $50,800   $60,170      -15.6%           11.9%             Bachelor’s degree
Logging equipment operators                                          80          3.77        $30,320   $32,780       -7.5%           7.7%       Moderate-term on-the-job training
Concierges                                                           60          3.74        $20,010   $28,120      -28.8%           13.7%      Moderate-term on-the-job training
Baggage porters and bellhops                                        140          3.58        $19,230   $23,170      -17.0%           12.7%        Short-term on-the-job training
First-line supervisors / managers for protective service            120          3.09        $34,020   $47,700      -28.7%           12.0%      Experience in related occupation
workers
Chemical engineers                                                   70          2.87        $88,000   $88,760       -0.9%           -2.1%             Bachelor’s degree
Helpers-roofers                                                      40          2.72        $26,450   $24,660       7.3%            -9.4%        Short-term on-the-job training
Social and community service managers                               250          2.71        $39,310   $60,570      -35.1%           13.8%             Bachelor’s degree
Bailiffs                                                             40          2.64        $25,440   $39,090      -34.9%           8.4%       Moderate-term on-the-job training
Fast food cooks                                                    1,130         2.57        $17,640   $17,620       0.1%            7.5%         Short-term on-the-job training
                                                                                                                                                      Source: BLS Occupational & Employment Statistics




           Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                            Report 1: Market Assessment | 48
                                                                      Project Next Steps
                                                                                                                 TWO-COUNTY REGION INDUSTRY CONCENTRATION
 Target Industry Opportunities                                                                                                      2010
  Industry clusters are highly integrated groups of businesses with strong vertical and horizontal linkages.              (BY LOCATION QUOTIENT)
  “Vertical” linkages include the suppliers and customers in a region that combine to create a competitive
  business model; whereas “horizontal” linkages include the relationships between competing companies,                   Industry               Employees                  LQ
  which often recruit from the same labor pool of talent, and supporting public institutions. Clusters often
  mature when businesses expand their relationships with existing supplier firms in a region. As the              Hotels & Entertainment           6,616                   2.49
  clusters grow, additional supplier firms are attracted to the region, eventually creating a diversified                Utilities                 1,125                   1.79
  “critical mass” of production, labor, and information.
                                                                                                                  Transportation Services          1,208                   1.62
  AngelouEconomics has defined 35 standard industry clusters to categorize businesses according to                 Computer Equipment               193                    1.37
  their final product and how these products are related to each other and integrated along the vertical
  supply chain. To access the strength of a cluster in a regional economy, AngelouEconomics has                           Retail                   12,398                  1.27
  calculated location quotients (LQs) for each cluster. These factors are calculated by comparing the                                                       Source: Dun and Bradstreet
  cluster’s share of total local employment to the cluster’s national share. This location quotient will yield
  a value generally between 0 and 2, where a result of “1” demonstrates that the cluster commands an
  average (expected) share of the local economy. Cluster location factors greater than 2 indicate a
  strong cluster agglomeration, while those less than .5 indicate extremely weak clusters.

  What industries are currently strong in the Two-County Region?
  The chart to the right shows the top 5 clusters in the combined Two-County Region while Figure 64 on
  page 50 lists the top fifteen industries compared with cluster strength in Mississippi. Importantly, the
  following analysis is intended only to provide an industry baseline for which competitiveness can be
  measured in the regional and global economies. In the next report, the Target Industry Report, the
  project team will compare these industry clusters to regional and national cluster trends, thus making
  them potential economic development targets.

Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                 Report 1: Market Assessment | 49
                                                           Industry Cluster Strength
                                 FIGURE 64. TOP 15 TWO-COUNTY REGION INDUSTRY CLUSTERS, 2010 (Q2)
                                            Cluster
                                      (Two-County Region            Two-County   Mississippi          Cluster Location Factor
                                         Employment)                 Region LQ       LQ      0.00   1.00                   2.00                     3.00


                                 Hotels & Entertainment (6,616)        2.49         1.12

                                 Utilities (1,125)                     1.79         1.40

                                 Transportation Services (1,208)       1.62         0.55

                                 Computer Equipment (193)              1.37         0.21

                                 Retail (12,398)                       1.27         1.15
                                                                                                                         Tw o-County Region
                                 Government (12,537)                   1.23         1.15
                                                                                                                         Mississippi
                                 Housing & Construction (6,463)        1.23         0.94

                                 Health Services (8,356)               1.11         1.04

                                 Communication Services (631)          1.08         0.74
                                                                                                                            Cluster Strength
                                 Eat & Drink (4,573)                   1.05         0.86
                                                                                                                 Weak             Average        Strong
                                 Material Supplies (1,235)             0.97         1.33
                                                                                                                  0.00             1.00            2.00

                                 Higher Ed. & Research (1,690)         0.97         1.64

                                 Logistics & Distribution (1,549)      0.91         1.11

                                 Transportation Equipment (591)        0.91         0.76

                                 Professional Services (10,194)        0.85         0.90

                                                                                                                             Source: Dun and Bradstreet


Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                 Report 1: Market Assessment | 50
                                                                                              Appendix
                                                                                                                     Quantitative Data Sources
APPROACH AND METHODOLOGY
The Market Assessment evaluates the current state of affairs in Harrison and Stone counties that are most             Bureau of Labor Statistics
critical to business and industry growth and job creation. Using data that was provided by project partners, or
                                                                                                                         U.S. Census Bureau
collected independently by the Broaddus/AngelouEconomics team, this report allows us to take a step back and
evaluate trends, data, and businesses’ and residents’ perceptions of the community.                                   Decision Data Resources

This report assesses the region’s current economic situation and the trends that have shaped it. Specifically,       National Science Foundation
we evaluate its readiness to attract and direct future economic development. We analyze the Two-County                Internal Revenue Service
Region in a range of economic and demographic variables by comparing it against a group of national
benchmark regions.                                                                                                  National Center for Education 
                                                                                                                              Statistics
The Broaddus/AngelouEconomics team used a variety of sources to collect the quantitative and qualitative
information used in our analysis. To begin, the consulting team collected numerous studies and plans                Misc. Private Sector Resources
developed for the Two-County Region and broader.                                                                      Qualitative Data Sources
Quantitative data was collected from national and state sources, including the U.S. Bureau of Labor Statistics,     Business Survey, 65 Responses
the U.S. Census Bureau, Decision Data Resources (Demographics Now), the National Science Foundation, the
Internal Revenue Service, the National Center for Education Statistics, and numerous private sector sources.           Community Survey, 150 
Qualitative data was gathered through numerous focus groups, one-on-one interviews, and regional tours.                    Responses
                                                                                                                      45 One on One Interviews
Two surveys were conducted to provide further insight into the economy of the Two-County Region; one survey
was for area employers, the other was for community residents. The Broaddus/AngelouEconomics team met                      Regional Tours
with community leaders representing the following groups: businesses (major employers), education and
workforce development, quality of life, real estate and development, transportation and utilities and facilitated
                                                                                                                      7 Focus Groups, Over 150 
two visioning sessions with community leaders in Harrison and Stone counties. Findings from both of these                   Participants
surveys are found on the following pages.

    Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                   Report 1: Market Assessment | 51
                                     Two-County Region Business Survey Results
What county do you live in?                                                   Which best describes the industry focus of your company?
                                                                                                              Other                               11
                                                                                                        Retail trade                         9
     Stone County                               53.2%                                               Construction                        7
                                                                                Legal / accounting / engineering                        7
                                                                                           Finance / Insurance                      5
                                                                                                            Utilities               5
                                                                                                 Manufacturing                  4
   Harrison County
                                                46.8%                                           Forest Products
                                                                                            Arts / Entertainment
                                                                                                                            3
                                                                                                                            2
                                                                                                        Real Estate         2
                             0                              20           40                                             0                    5              10                15



What is the approximate number of people employed by your                      What is the approximate number of people employed by
business in Harrison or Stone county                                           your business outside of Harrison or Stone county but in
(including contract employees)?                                                the U.S. (including contract employees)?
  Less than 10                             31                                    Less than 10                                           33
        10-24                    9                                                      10-24       4
        25-49                    8                                                      25-49
                                                                                        0
        50-99        2                                                                  50-99       4
      100-499                7                                                        100-499       4
      500-999            4
                                                                                      500-999       3
        1000+        0
                                                                                        1000+       4
                 0                                   20             40
                                                                                                0                                            20                                 40


      Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                  Report 1: Market Assessment | 52
                                           Two-County Region Business Survey Results
 How long has your business been located in Harrison or Stone county?                  Over the next TWO years, do you expect the number of employees in your
                                                                                       business in Harrison or Stone county to:

     0-5 y ears                 15                                                            Increase                             23

    6-15 y ears         9                                                                Stay the same                                  35

     15+ y ears                                           37                                 Decrease         3

                   0                                      20                 40                          0                                          20                                   40



What is the primary reason why your business is located in Harrison or                        Rank the following factors in order of importance to your
Stone county?                                                                                 company’s hiring decisions. (no tie ranks)
       Prox imity to customers // suppliers
         Proximity to customers suppliers          24                                                                                                                                Most important
                                                                                                                                                    10                               Important
                             Quality of life 11                                                  Education / Training                                     12
                                                                                                                                                    10                               Less important
                            Low business costs             5                                                                                         11                              Not important
                                                                                                                                        7
                          Transportation access            4                                                 Experience                         9
                                                                                                                                                           13
                                                                                                                                                                    15
                   Availability of skilled workers
                  Av ailability of skilled w orkers       1                                                                                                                         26
                                                                                                                                                           13
   Educated or technically -skilled w orkforce
    Educated or technically-skilled workforce             1                                                  Work ethic                              10
                                                                                                                               2
                            Strong infrastructure         1                                                                                 8
                                                                                                                                                                     17
                                                                                               Skills related to the job
                                                      0        5   10   15   20   25                                                                           13
                                                                                                                                        8

                                                                                                                           0                                              15                                 30




        Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                       Report 1: Market Assessment | 53
                                  Two-County Region Business Survey Results
  Please rate your satisfaction level of each factor.

                                                                                Very satisfied                    Satisfied        Neutral        Dissatisfied                 Very dissatisfied                           N/A
     Harrison Stone counties ov overall a a place for our business to succeed
Harrison and and Stone countieserall as as place for y yourbusiness to succeed                       5                                       39                                                       12                       2 1
                             Effectiveness of programs that support entrepreneurs
                           Effectiv eness of programs that support entrepreneurs                 3                12                              24                                     13                        4           3
                                                                   start-ups
         Effectiv eness of programs assisting small businesses and start-ups 1
             Effectiveness of programs assisting small businesses                                                 16                                   25                                        11                2           4
                                                   Effectiv eness of local incentiv es 1
                                                     Effectiveness of local incentives                       9                              26                                          16                         4           3
                       ailability of facilities for product testing and development
                    Av Availability of facilities forproduct testing and dev elopment            4                                 29                                 8             3                 13
                                                                    Availability of capital
                                                                   Av ailability of capital 1            5                            27                              8              4                     14
                                       Availability w workers ith appropriate skills
                                    Av ailability of of orkers wwithappropriate skills           3                                 31                                          13                          9                   3
     Quality of collaboration betw een businesses and univ ersity researchers
Quality of R&DR&D collaboration between businesses and university researchers                    3                     17                                21                                  9         1               8
                                      Quality four-y ear colleges and universities
                                    Quality of of four-year collegesand univ ersities            4                               26                               9                     10            2                8
                                     Quality of community and technical schools                              12                              25                                         14                 2 1             4
                                                             Quality of K-12 schools                 5                        21                             11                          16                        1       5
                                                                           Quality of life
                                                                           Quality                       7                            25                                  13                          11                       3
                                                                          Cost of liv ing 1
                                                                           Cost of living                                             36                                            12                         7               2
                                                                    Lev el of tax ation
                                                                      Level of taxation                           18                               20                                    14                            7
                                                              Cost of doing business
                                                               Cost of doing business            3                          22                           11                              18                                5
                                                     Communications infrastructure               3                                    33                                         12                            10                  1
                                                              Region's transportation
                                                               Region’s transportation           3                                     34                                           11                         10                  1

                                                                                             0                                                          30                                                                         59




     Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                                    Report 1: Market Assessment | 54
                                           Two-County Region Business Survey Results
How would you evaluate the following workforce factors within                                               Has your company ever utilized any workforce training programs
Harrison or Stone county?                                                                                   offered in the region?
                                                                              Very satisifed
                                  4                                           Satisfied
  Education / Training                                        30
                                                    14                        Dissatisfied                    Yes                    42.3%
                                                                              Very dissatisfied
                                1
            Experience                                        33
                                               14
                              1
                                      5
             Work ethic                                       29                                               No
                              1
                                                         16                                                                          57.7%
                               3
Skills related to the job                                     34
                                          10
                                2                                                                                   0                        20                             40

                            0                                      20                             40


If yes, how would you rate the quality of training provided?                                                 What percentage of your workforce lives within Harrison and Stone
                                                                                                             counties?
                                                                        Very satisfied
                                                                                                                        0%
                                      6                                 Satisfied
                                                                                                                             1
                                                                        Dissatisfied                            1%-24%           3
                                               14                       Very dissatisfied
                                                                                                                25%-49%
Quality of training                                                     N/A                                                      4
   provided               2
                                                                                                                50%-74%              7
                0
                                                                                                               75%-100%                                          37
                                               18
                                                                                                                             0                    20                       40
                      0                                            15                                  30



        Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                    Report 1: Market Assessment | 55
                                Two-County Region Community Survey Results
What county do you live in?                                                   Age?

                                                                                Less than 18       0
    Stone County                            58.3%
                                                                                       18-24       7
                                                                                       25-34                22
                                                                                       35-44                     34
  Harrison County
                                            41.7%                                      45-64                                69
                                                                                        65+        12
                        0                               45               90                    0                 25              50                    75




Annual Household Income?                                                      Highest level of education you have reached?

  Less than $25K              9                                                    Some high school         0
       $26K-50K                                                                  High school diploma        5
                                                    24
                                                                                       Some college                     33
       $51K-75K                                              32
                                                                                  Associates degree               21
      $76K-100K                                               36                   Bachelors degree
                                                                                                                            49
     $101K-125K                     14                                               Graduate degree                   28
         $125K+                                        25                       Post-graduate degree
                                                                                                            7
                    0                                 20            40                                  0                   30                              60




      Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                     Report 1: Market Assessment | 56
                                     Two-County Region Community Survey Results
How long have you lived in Harrison or Stone county?                                      What is the primary reason you have chosen to live in Harrison or
                                                                                          Stone county?
             0-5 y rs           20                                                                   Grew up in region                                         43
                                                                                                         Close to family                                 34
            6-10 y rs    11
                                                                                                          Close to w ork
                                                                                                          Close to work                        22
           11-15 y rs       9                                                                   Quality of life amenities                 17
  16 y ears or longer                                                                           Affordable cost of liv ing       6
                                                                     104
                                                                                            Educational sy stems (K-12)      1
                        0                           55                            110

                                                                                                                             0                      25                      50


                        Prior to living in Harrison or Stone live?
Prior to living in Harrison or Stone county where did you county where did you live?

                                     Have always lived in harrison or Stone
                            Have always lived in Harrison or Stone counties
                                                    counties                                                                                                    54
                                                     Outside of Mississippi
                                                    Outside of M ississippi                                                                     42
                                     Outside of Hancock, Jackson, George
       Outside of Hancock, Jackson, George andRiver counties
                                     and Pearl Pearl River counties                                                                  37
                                        Hancock, Jackson, George or Pearl
                        Hancock, Jackson, George or Pearl River counties
                                               River counties                         6
                                              Outside of the United States
                                              Outside of the United States        3
                                                                              0                                                      30                                                     60



      Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                             Report 1: Market Assessment | 57
                               Two-County Region Community Survey Results
  How well does Harrison or Stone county satisfy your needs in the following areas?

                                                                      Very satisfied         Satisfied      Neutral        Dissatisfied             Very dissatisfied        N/A
                                  Arts / culture        11                        43                                   42                                     33                         12        2
                                        Climate             13                                             87                                                      37                         5 11
        Community colleges // univ ersities
          Community colleges universities                               35                                             78                                            16                 9     23
                                 Cost of liv ing
                                  Cost of living                 21                                        74                                            21                    24                  4
                                     Crime rate             14                                 61                                         28                            37                         4
                           Driv e time to w ork
                            Drive time to work                                                                                    61                                 12             9        2 4
                Educational sy stems (K-12)             9                               57                                 21                           35                     13             9
                                 Entertainment          11                             50                                    36                               33                         12
                                    Recreation               17                                      64                                    22                       33                        7
                                     Healthcare         9                               56                                      33                            31                         13        1
                     High pay ing job options 2                    23                           42                                             53                                   23                 1
          High speed internet connectiv ity
             High speed internet connectivity                18                                 54                                   25                       30                         17
                             Highw ay access
                              Highway access                               37                                          75                                            17                 11         4
   Image of County a place to do business
Image of County asas a placeto do business                  14                     41                                        47                                    32                         10
          Image of County a place to live
       Image of County asas a place toliv e                                                           60                                        31                        25                  5
                               Job av ailability
                                Job availability    3                 23                       35                                     53                                     27                    3
                         Public transportation 1
                         Public transportation               15                                57                                          37                           23                   10
                               Racial relations
                               Racial                   8                          51                                                     60                                   19                 6

                                                   0                                                                  72                                                                              144




     Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                               Report 1: Market Assessment | 58
                                      Two-County Region Community Survey Results
What type of employers would you like to see expand or locate in Harrison or                                        What are Harrison Stone county’s greatest assets that can contribute to
                                                                                                                    What are Harrison or or Stone county’s greatest assets that can contribute to economic
                                                                                                                    growth? growth? up to three)
                                                                                                                    economic (Choose(Choose up to three)
Stone county? (Choose up to three)
                                                                                                                                                         Affordability                                                 82
                               Aerospace                                        47                                                            Business leadership
                                                                                                                                               Business leadership                  16
   Biotechnology and scientific research                                       44                                                                            Climate                           38
           Distribution and w arehousing
            Distribution and warehousing                                                 55                          Close prox imity to recreational opportunities
                                                                                                                       Close proximity to recreational                                   29
        Finance and insurance serv ices                       20                                                              Community colleges / /univ ersities
                                                                                                                                 Community colleges universities                                                66
                               Healthcare                                      43                                                            Entrepreneurial talent
                                                                                                                                              Entrepreneurial                 10
                            Manufacturing                                                           70                                      Governmentleadership
                                                                                                                                           Gov ernment leadership
                      Renew able energy
                                                                                                                                                                              6
                                                                                     52                                                      Educational sy stems
                                                                                                                                               Educational systems             13
                                    Retail                                                          71                                           Community pride
                   Softw are dev elopment
                                                                                                                                                                                              37
                   Software development                             29                                                                               Employer
                                                                                                                                                    Employ er base
                     Telecommunications
                                                                                                                                                                              8
                                                                   26                                                                                   Port facilities
                  Tourism and hospitality                                                 60
                                                                                                                                                                                                          57
                                                                                                                                                   Skilled workforce
                                                                                                                                                 Skilled w orkforce               16
                                     Other            8                                                                                     Transportation access                                              69
                                                                                                                                                                Other         7
                                                0                   25                   50               75

                                                                                                                                                                          0               30                   60                90


What are the most significant challenges facing Harrison and Stone counties                                            What should be the top focus areas for economic development in Harrison or
as they work to improve job and economic growth? (Choose up to three)                                                  Stone county? (Choose up to three)

        Availability of erse housing options
    Av ailability of divdiverse housing options                     28                                                                           Educational sy stems
                                                                                                                                                 Educational systems                                      56
                            Av ailability of retail
                             Availability                                           51
         Community colleges / univ ersities
                                                                                                                                                   Lifesty le amenities
                                                                                                                                                   Lifestyle amenities                      35
                                                          7
                      Gov ernment leadership                                   42                                                                    Retail amenities                     30
           High costs (business and liv ing)                        26                                                                                   ex panding)
                                                                                                                       Ex isting companies stay ing (and expanding)
                                                                                                                        Existing companies staying                                                         60
      Inadequate transportation infrastructure
    Inadequate transportation infrastructure                         29
                                                                                                                                                            job grow th
                                                                                                                                              High quality job growth                                                79
      Keeping y oung skilled w orkers in the                                                        77
          Number ofof and availability of jobs
            Number and av ailability of                                                                  84                        Small business and entrepreneurs                                 46
                Potential for damaging storms                            34                                                        Improv ed transportation sy stem
                                                                                                                                  Improved transportation systems                        28
                   Div ersify ing the economy
                     Diversifying the economy                              39
                                                                                                                          Community colleges university programs
                                                                                                                         Community colleges / /univ ersity programs                 18
                 Educational sy stems (K-12)                                 47
                                            Other         12                                                                                 Locating new companies                                        63
                                                                                                                             Revitalization of older commercial areas
                                                                                                                            Rev italization of older commercial areas                          37
                                                      0                   30                   60              90
                                                                                                                                                                              0               30               60                90


        Accelerate to 2060 - Harrison & Stone counties, Mississippi                                                                                                                           Report 1: Market Assessment | 59

								
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