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Blue Oval City is coming, is your business ready?
Bank of Bartlett is Good for Business
The marketplace is excited to see the promise of Blue Oval City. The Ford and SK Technologies joint announcement to build two side by side factories will be the catalyst for multiplying benefits for all.
What exactly is coming?
The Blue Oval City project will total a $5.8 billion investment in Stanton, TN, immediately off I40, 17 miles east of Arlington. With 11 acres under roof, this investment exceeds all other auto manufacturing investments in TN combined.
What will be the effect on employment?
The combined plants will employ almost 6,000 people with reported minimum annual salaries of $52,000. It is estimated that another 23,000 jobs with high average salaries in warehousing, logistics, distribution, etc will be spawned by these plants. Personal incomes from the plant and collateral activity will increase annually by $1 billion with an economic multiplier of 5-7 times. Imagine a tsunami of $5-7 billion of buying power splashing across the Memphis regional economy!
Specific areas of impact?
It is estimated that 40,000-50,000 new homes will be needed over the next 8-10 years as 200,000+ new residents will be drawn to the Memphis area. Commerce follows rooftops; therefore, a boom is expected in commercial, warehousing, residential, multi-family, and office development.
Impact on plant construction?
Over 33,000 construction workers will be needed to complete the plant construction. Food services, housing, medical, and the full range of retail and support services will be needed.
When does construction begin?
Walbridge, Inc, Ford's general contractor, held their 1st meeting for local contractors and suppliers in Memphis in mid-February 2022, with a similar event in Jackson, TN in mid-March 2022. The general understanding is that dirt will be moving this spring and construction will be completed by December 2024. The goal is for production to be ready is January 2025.
What public investment is planned?
The State of TN plans to invest almost $800 million in infrastructural improvements. Interstate 40 is to be expanded to 6 lanes with at least 1 new exit near mile marker 39.
Overall, this is the largest single investment in TN - ever. West TN is likely to see the total expansion experienced by Nashville over the past 25 years, and in a shorter time frame.
When is this growth going to be realized, and when will the market begin to see effects? As your business is preparing now, our commercial banking team is available and ready to partner with you. Bank of Bartlett is good for business. Let us be good for your business.