Mike Mullis, president of Memphis-based J.M. Mullis Inc., says state has many 'positive attributes'

By RANDY McCLAIN

Meet Mike Mullis.

When Wal-Mart or a big aerospace company or a major auto parts supplier starts a site search for its next store, factory or headquarters, Mullis is the well-paid consultant behind the scenes, advising clients where the new jobs should go.
Mullis, president of J.M. Mullis Inc., of Memphis, and a staff of 14 act as hired hands to some of the world’s biggest employers.

Mullis is on the road 300 days a year, visiting potential sites from Shelbyville to Singapore, dangling projects worth hundreds of millions of dollars in front of economic development pros.

He made a stopover at the state’s 54th annual Governor’s Conference on Economic and Community Development last week, and he came bearing sound advice on how to land new jobs.

Where’s the growth?

Job growth is likely to come from a variety of industries over the next decade, he said, among them food processing, distribution centers, aerospace projects and technical support centers that handle back-office chores for insurers, lenders and others.
The good news is that Tennessee has many positive attributes. Here are some of the pluses:

• A positive work force, only 6 percent unionized.


• High marks on most quality-of-life issues.

Be ready, act quickly

Not all site selections drag on for years. Some are wrapped up in two or three months, Mullis said, and companies expect communities to be ready with detailed lists of available industrial or office sites.

Initial searches are often done by computer and phone. Five or 10 cities might get site visits, and then a city “only gets one chance,” Mullis said.

Incentives are important, too, and it’s a high-stakes game. Tennessee may have to compete against India, Spain or Malaysia, not just neighboring Alabama.

Mullis said one aerospace project worth $400 million landed this deal in Malaysia recently: a $100 million government loan with low or no interest, a $100 million grant and a 4-cents-per-square-foot lease for 10 years.

One thing that could help Tennessee compete is a stronger “deal closing” fund — cash that can be awarded to help with land acquisition or other startup costs, Mullis said. Some states, oil-rich New Mexico for instance, even take equity positions in projects. Flexibility wins in the end, the site consultant said. And that means jobs.

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 photo:

Mike Mullis, president and CEO of J.M. Mullis Inc., speaks during the fifth annual Governor’s Conference. (JAE S. LEE / THE TENNESSEAN)