members $5 / non members $25
SAVANNAH 2014
ECONOMIC TRENDS
Contents
ABOUT THE
THE DATA
DATA (See
(See Note
Note Below)
Below)
ABOUT
Welcome to
to Savannah
Savannah
Welcome
Savannah
Quick
Facts
Savannah Quick Facts
Featured Speakers
Speakers
Featured
2012 Forecasts:
Forecasts:
2012
United States
States and
and Georgia
Georgia
United
Terry
College
of Business,
Business, University
University of
of Georgia
Georgia
Terry College of
Savannah
MSA
Savannah MSA
Center for
for Regional
Regional Analysis,
Analysis, Department
Department of
of Economics,
Economics, Armstrong
Armstrong Atlantic
Atlantic State
State University
University
Center
Economic Trends:
Trends: Savannah
Savannah
Economic
Compiled
by
the
Center for
for Regional
Regional Analysis
Analysis at
at Armstrong
Armstrong Atlantic
Atlantic State
State University
University
Compiled by the Center
Economy
Economy
Gross Regional
Regional Product
Product
Gross
Demographics
Demographics
Employment
Employment
Population
Population
Household Income
Income
Household
Industry
Industry
Construction
Construction
Health Care
Care
Health
Major
Employers
and Major
Major Manufacturers
Manufacturers
Major Employers and
Military
Military
Real Estate
Estate
Real
Tourism
Tourism
Infrastructure
Infrastructure
Education
Education
Port of
of Savannah:
Savannah: Georgia
Georgia Ports
Ports Authority
Authority
Port
Small
Business
Investment
and
Development
Small Business Investment and Development
Taxes
Taxes
Transportation: Roads,
Roads, Rail,
Rail, Water,
Water, Air
Air
Transportation:
Utilities
Utilities
Other
Other
Workforce Development
Development
Workforce
4
5
7
24
29
30
31
32
34
36
37
37
38
39
41
42
44
45
45
47
48
49
51
53
54
NOTE: ABOUT
ABOUT THE
THE DATA
DATA
NOTE:
This report
report was
was updated
updated by
by the
the Center
Center for
for Regional
Regional Analysis
Analysis at
at Armstrong
Armstrong Atlantic
Atlantic State
State University.
University. The
The Center
Center
This
(http://www.econ.armstrong.edu/cra/index.html)
meets
the
applied
research
needs
of
Savannah's
business
and
community
organizations.
(http://www.econ.armstrong.edu/cra/index.html) meets the applied research needs of Savannah's business and community organizations.
Areas of
of concentrated
concentrated research
research include
include regional
regional economic
economic forecasting,
forecasting, economic
economic impact
impact analysis,
analysis, economic
economic development
development and
and business
business
Areas
expansion, tourism
tourism development,
development, survey-based
survey-based research,
research, and
and specialty
specialty reports
reports on
on topics
topics of
of state,
state, regional
regional and
and local
local interest.
interest. The
The Center's
Center's
expansion,
activities are
are intended
intended to
to appeal
appeal to
to aa broad
broad range
range of
of constituencies,
constituencies, and
and the
the Center
Center stands
stands ready
ready to
to enter
enter into
into cooperative
cooperative partnerships
partnerships with
with
activities
public,
private,
and
community
organizations.
public, private, and community organizations.
Data for
for this
this report
report are
are collected
collected from
from public
public sources
sources and
and generally
generally lag
lag anywhere
anywhere from
from one
one to
to two
two years
years behind
behind the
the date
date the
the report
report isis
Data
produced.
Most
data
in
this
year’s
report
are
annual
figures
for
2012,
the
latest
year
available,
and
some
may
end
at
2011
or
earlier.
This
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
data
may
not
accurately
reflect
the
economic
challenges
that
businesses
and
residents
face
currently.
While
the
Center
for
Regional
Analysis
data may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis
and the
the Savannah
Savannah Chamber
Chamber have
have made
made every
every attempt
attempt to
to provide
provide the
the most
most reliable
reliable information
information available,
available, they
they cannot
cannot be
be held
held liable
liable for
for
and
omissions
or
inaccuracies.
omissions or inaccuracies.
This report
report isis published
published by
by the
the Savannah
Savannah Area
Area Chamber
Chamber of
of Commerce,
Commerce, 101
101 East
East Bay
Bay Street
Street (31401),
(31401), P.O.
P.O. Box
Box 1628,
1628, Savannah,
Savannah, Georgia
Georgia
This
31402-1628,
912.644.6400.
The
Chamber
would
like
to
thank
the
many
Savannah
businesses
and
organizations
that
contributed
to the
the
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to
information
and
analysis
provided
in
this
annual
update.
This
edition
was
published
January
2014.
information and analysis provided in this annual update. This edition was published January 2014.
Additional resources
resources and
and contact
contact information
information are
are available
available on
on the
the Chamber’s
Chamber’s Web
Web site:
site: www.savannahchamber.com.
www.savannahchamber.com.
Additional
Savannah Area
Area Chamber
Chamber of
of Commerce
Commerce
Savannah
2014
Economic
Trends
2014 Economic Trends
11
3
Contents
Welcome to Savannah
ABOUT THE DATA (See Note Below)
While many
major cities struggle through economic discomfort, the metropolitan Savannah area is somewhat protected by its
Welcome
to Savannah
diverse mix
of industry
Savannah
Quick
Facts and services, a history of stable residential growth and a moderate tax structure that have combined to
help the regional economy maintain a healthy balance and quality of life that continues to rate among the nation’s best.
Featured Speakers
2012 known
Forecasts:
Long
as one of the nation’s most popular tourist destinations, Savannah also continues to garner recognition and
United
States
and
Georgia
accolades
for its
broader
list of business and cultural advantages. In 2013, Savannah was selected for a number of best cities
Terry
College
Business,
Georgia–Condé Nast Traveler, October 2013, “Pinnacle Award of Excellence” –
lists, including: “Topof10
cities inUniversity
the UnitedofStates"
Savannah
MSA
Successful Meetings, June 2013, “Gold Service Award” –Meetings & Conventions Magazine, September 2013, "America’s Best
Center for Regional Analysis, Department of Economics, Armstrong Atlantic State University
Cities” –Travel + Leisure, July 2013, “Reader’s Choice Award” –ConventionSouth Magazine, October 2013, “2013 Award of
Excellence” –Corporate & Incentive Travel Magazine, May 2013, and one of the "Top 25 Destinations in the World" – Trip
Economic Trends: Savannah
Advisor,
May 2013.
Compiled
by the Center for Regional Analysis at Armstrong Atlantic State University
Economy
In 2013
Savannah
received recognition as being one of the "Top Ten Romantic Cities" – Livability.com, February 2013,
Gross
Regionalalso
Product
"Best
City
for
Affordable
Getaway" –Travel + Leisure, May 2013, "Best Romantic City" –AAA Southern Traveler, August 2013,
Demographics
"America’s
#1
Most
Charming
Accent" – Travel + Leisure, April 2013, "Top 50 Destination for Labor Day" - TravelersToday.com,
Employment
AugustPopulation
2013, "Tybee Island: Top Family Friendly Beach Town" –TravelNerd.com, June 2013, and awarded the "America’s Top
Household –USA
IncomeToday, May 2013.
10 Waterfronts"
Industry
Construction
Savannah
is a cosmopolitan community with a European flair and “good bones” as exhibited by its strong business community
Health Care
and advanced
infrastructure. While residents and visitors enjoy its rich historical tradition, Savannah continues to improve its
Majorenvironment,
Employers and
Major Manufacturers
business
infusing
the area with advantages that benefit its major industries: manufacturing, distribution, tourism,
Military
military, port operations, health care, and its growing presence of innovative technology firms and entrepreneurs. The Savannah
Estate
regionReal
continues
to be an ideal choice for any relocating business, individual or family.
Tourism
Infrastructure
We invite
you to bring your businesses and families to Savannah. Be a part of this vital and thriving community, one that is ready
Education
to helpPort
youofand
your company,
become
exciting new members of our beautiful city. For more information contact:
Savannah:
Georgia Ports
Authority
Small Business Investment and Development
Savannah
TaxesArea Chamber of Commerce
Visit Savannah
Transportation: Roads, Rail, Water, Air
101 E.Utilities
Bay Street (31401)
P.O.
Box 1628
Other
Workforce
Development
Savannah,
GA 31402-1628
912.644.6400 Fax: 912.644.6497
NOTE:
ABOUT THE DATA
www.SavannahChamber.com
www.VisitSavannah.com
This report was updated by the Center for Regional Analysis at Armstrong Atlantic State University. The Center
(http://www.econ.armstrong.edu/cra/index.html)
the you
applied
research
of Savannah's business and community organizations.
The following organizations are also availablemeets
to assist
in your
move needs
to Savannah.
Areas of concentrated research include regional economic forecasting, economic impact analysis, economic development and business
expansion,
development,
survey-based research,
specialty reports
regional
and localEconomic
interest. The Center's
Savannah tourism
Economic
Development
Savannahand
Development
and on topics of state,City
of Savannah
activities
are
intended
to
appeal
to
a
broad
range
of
constituencies,
and
the
Center
stands
ready
to
enter
into
cooperative
Authority (SEDA)
Renewal Authority (SDRA)
Development Office partnerships with
public, private, and community organizations.
P.O. Box 128
P.O. Box 24308
P.O. Box 1027
Savannah,
GA
31402-0128
Savannah,
GA
31401-1225
Savannah, GA 31402
Data for this report are collected from public sources and generally lag anywhere from one to two years behind the date the report is
912.447.8450
Fax:
912.447.8455
912.651.6973
Fax:
912.651.6707
912.651.3653
Fax:at912.651.7616
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and
some may end
2011 or earlier. This
www.seda.org
www.sdra.net
www.savannahga.gov
data may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis
and the Savannah Chamber have made every attempt to provide the most reliable information available, they cannot be held liable for
omissions or inaccuracies.
This report is published by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
information and analysis provided in this annual update. This edition was published January 2014.
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
4
Savannah Area Chamber of Commerce
Savannah
AreaTrends
Chamber of Commerce
2014 Economic
2014 Economic Trends
2
1
Contents
Savannah Quick Facts
ABOUT THE DATA (See Note Below)
Tourism
Welcome
to Savannah
Annual Quick
Visitors:
more than 12 million (2012)
Savannah
Facts
Nation’s largest Landmark Historic Landmark District
Featured Speakers
Manufacturing
2012
Forecasts:
245 manufacturing
plants provide 15,248 jobs (2012)
United
States and Georgia
Recreation
Tybee Island Beaches & Pavilion
Boating, Marinas, Boat Ramps, Rowing
Fishing & Hunting
Camping, Wildlife Parks
Nightlife, Live Music
Terry College of Business, University of Georgia
Top
5
Manufacturing
Employers
(2013)
Savannah Civic Center, Entertainment
Savannah MSA
Gulfstream
Aerospace
Corp.
5,000
9,999
& Private
Center for Regional Analysis, Department of Economics, ArmstrongPublic
Atlantic
State Available:
UniversityGolf Courses, Swimming & Tennis
Georgia-Pacific
1,000 - 4,999
International
PaperSavannah
500 - 999
Banks
Economic
Trends:
Savannah
Morning
News
500
999
184 Banks (www.yellowpages.com)
Compiled by the Center for Regional Analysis at Armstrong Atlantic StateAbout
University
Chemtall
Inc.
500
999
About
40 Credit Unions (www.yellowpages.com)
Economy
Gross Regional Product
Taxable Retail Sales (Estimated), Chatham County
Schools & Churches
Demographics
2012
$6.3 billion
2010
$5.7 billion
Public: 27 elementary schools, 7 K-8 schools,
Employment
2011
$6.0 billion
2009
$5.8 billion
9 middle schools, 11 high schools
Population
41 Large Shopping Centers, 2 Regional Malls
Private: 18 elementary schools, 33 high schools
Household Income
Source: GA Dept of Revenue Statistical Report FY09-12
18 universities, Colleges and technical colleges with estimated
Industry
annual enrollment of nearly 60,000+ (SEDA)
Construction
Utilities
About 660 churches (www.yellowpages.com)
HealthPower
Care – Coastal Georgia, Atlanta Gas Light Company
Georgia
Employers
and Major Manufacturers
andMajor
a choice
of gas marketers,
City of Savannah Water and
Healthcare (Chatham County)
Military
Sewer Bureau
3 acute care hospitals 1,100+ beds, 800+ doctors
Real Estate
13 nursing homes
Tourism
Culture
Infrastructure
African-American Cultural Center
Media
ArtEducation
Galleries, Theaters and Museums
Print Media
Frequency
of Savannah:
CityPort
Market
Art CenterGeorgia Ports Authority
Savannah Morning News
Daily
Small Historical
Business Society
Investment and Development
Georgia
Statesboro Herald
6 days a week
TaxesForts Jackson, McAllister, Pulaski, and Screven
Historic
Effingham Now
Bi-Weekly
Transportation:
Rail, Water, Air
Historic
Homes andRoads,
Cemeteries
The Business Report & Journal
Weekly
Utilities
Historic
Landmark District
Bryan County News
Weekly
Other
Riverboat Cruises
Bryan County Now
Weekly
Workforce
Development
Savannah
Asian
Festival
Business in Savannah
Weekly
Savannah Black Heritage Festival
Connect Savannah
Weekly
NOTE:
ABOUT
DATA
Savannah
CraftTHE
Brew
Fest
Effingham Herald
Weekly
Savannah Film Festival
Savannah Penny Saver
Weekly
and Jazz
Society
ThisSavannah
report Jazz
was Festival
updated
by the
Center for Regional Analysis at
Armstrong
The Center
Savannah
TribuneAtlantic State University.Weekly
Savannah Music Festival
(http://www.econ.armstrong.edu/cra/index.html)
meets the applied research needs
of Savannah's
organizations.
The Savannah
Heraldbusiness and communityWeekly
Savannah
Philharmonic
Orchestra
andregional
Chorus economic forecasting, economic
Areas
of concentrated
research
include
impactPacket
analysis, economic developmentWeekly
and business
The Island
expansion, tourism development, survey-based research, and specialty reportsThe
on topics
of state, Neighbor
regional and local interest.
The Center's
West Chatham
Weekly
Population*
(Savannah
MSA)
activities
are intended
to appeal
to a broad range of constituencies, and the Center
stands
ready
to
enter
into
cooperative
partnerships
Freedom’s Journal
Bi-monthly with
(Bryan,
Chatham
and Effingham
Counties)
public,
private,
and community
organizations.
The South Magazine
Bi-monthly
2000
293,000
2010
348,507
Coastal Senior
Monthly
355,576
Data2008
for this 334,562
report are collected2011
from public
sources and generally lag anywhere
the report is
Skirt! from one to two years behind the date
Monthly
2009 Most
343,092
2012
361,941
produced.
data in this year’s
report are
annual figures for 2012, the latestVida
yearLatina
available, and some may end at 2011Monthly
or earlier. This
th largest county in Georgia.
is ranked
dataChatham
may not County
accurately
reflectthe
the5economic
challenges that businesses and residents
currently.
While the Center for Regional
Coastal face
Family
Magazine
MonthlyAnalysis
152,992
households
in
the
Savannah
(2012)*
and the Savannah Chamber have madeMSA
every
attempt to provide the most reliable
available, they cannot be
held liable for
Georgiainformation
Historical Quarterly
Quarterly
$47,059ormedian
household income (2012)*
omissions
inaccuracies.
Savannah Jewish News
10 issues
*U.S. Census Bureau American Community Survey 1-Year Estimate.
Savannah Magazine
10 issues
This report is published by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
Semi-Tropical
Climate The Chamber would like to thank the many Savannah
Television
Stations and
/ Radio
Stations that contributed to the
31402-1628,
912.644.6400.
businesses
organizations
Average
Seasonal
Temperatures
information and analysis
provided in this annual update. This edition was published
Januaryat2014.
See listings
www.yellowpages.com
Spring 66.3°
Summer 80.8°
NOTE: Media Web sites provide additional information
Autumnresources
66.5° and
Winter
51.5°
Additional
contact information
are available on the Chamber’s Web site: www.savannahchamber.com.
Precipitation: 48.20” average rain per year
3
Savannah Area Chamber of Commerce
1
Savannah
Area Chamber
2014 Economic
Trends of Commerce
2014 Economic Trends
5
Contents
ABOUT THE DATA (See Note Below)
Welcome to Savannah
Savannah Quick Facts
Featured Speakers
2012 Forecasts:
United States and Georgia
Terry College of Business, University of Georgia
Savannah MSA
Center for Regional Analysis, Department of Economics, Armstrong Atlantic State University
Economic Trends: Savannah
Compiled by the Center for Regional Analysis at Armstrong Atlantic State University
Economy
Gross Regional Product
Demographics
Employment
Population
Household Income
Industry
Construction
Health Care
Major Employers and Major Manufacturers
Military
Real Estate
Tourism
Infrastructure
Education
Port of Savannah: Georgia Ports Authority
Small Business Investment and Development
Taxes
Transportation: Roads, Rail, Water, Air
Utilities
Other
Workforce Development
NOTE: ABOUT THE DATA
This report was updated by the Center for Regional Analysis at Armstrong Atlantic State University. The Center
(http://www.econ.armstrong.edu/cra/index.html) meets the applied research needs of Savannah's business and community organizations.
Areas of concentrated research include regional economic forecasting, economic impact analysis, economic development and business
expansion, tourism development, survey-based research, and specialty reports on topics of state, regional and local interest. The Center's
activities are intended to appeal to a broad range of constituencies, and the Center stands ready to enter into cooperative partnerships with
public, private, and community organizations.
Data for this report are collected from public sources and generally lag anywhere from one to two years behind the date the report is
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
data may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis
and the Savannah Chamber have made every attempt to provide the most reliable information available, they cannot be held liable for
omissions or inaccuracies.
This report is published by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
information and analysis provided in this annual update. This edition was published January 2014.
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
6
Savannah Area Chamber of Commerce
2014 Economic Trends
1
The National Outlook
for 2014
Terry College of Business
University of Georgia
www.selig.uga.edu
Dr. Charles B. Knapp
Jeffrey M. Humphreys
The Terry College’s 2014 baseline US economic forecast indicates that the economic recovery that began in the
second half of 2009 will be sustained. The rate of 2014 GDP growth – 2.3 percent – will be higher than in 2013 – 1.6
percent, but below the average of the last 50 years – 3.1 percent. The US is well positioned for slight acceleration in
the pace of growth courtesy of extensive restructuring of the private sector, including the cleanup of the financial
sector, the aggressive write off of bad debts, deleveraging by consumers, and a more favorable balance of supply and
demand for residential and non-residential properties.
With the year-over-year rate of 2014 US GDP growth predicted at slightly above 2 percent the US economy will remain
vulnerable to economic shocks and/or policy mistakes. The below long-term average rate of GDP growth reflects the
expectation of tighter federal fiscal policy, the winding down of QE3, lingering problems in the European Union, and a
lower growth trajectory for many emerging market economies. Also, it appears that there will be only moderate
momentum exiting from 2013. Uncertainty regarding the sustainability of the US economic expansion – and the anxiety
that goes along with it – will decline in 2014. The three main risks are the same in 2014 as in 2013; (1) a mistakes in
US fiscal or monetary policy, (2) a large oil price shock, and (3) a financial panic originating in the EU. The probability
of recession is 30 percent, which is lower than the 40 percent recession probability estimated by the Terry College at
this time last year.
In 2014, private final domestic demand rather than fiscal stimulus or net exports will be the primary driver of US GDP
growth. Indeed, the government sector will subtract from – rather than add – to US GDP growth. Since federal fiscal
policy will be restrictive, the Federal Reserve’s monetary policy will remain supportive of growth in private demand by
maintaining a monetary policy stance that is simulative – characterized by near zero short-term policy interest rates
into 2015. Nonetheless, the Federal Reserve will wind down its purchases of treasuries and mortgage-backed
securities – QE3. The Federal Reserve will strive to keep inflation-adjusted short-term interest rates negative and
inflation expectations positive – albeit not too high. Meanwhile, the federal government has yet to effectively address
its massive structural budget problems, which is what is needed to move the US economy from its sub-par growth
trajectory to an average, or above average, growth trajectory.
One reason US GDP growth will be sub par rather than vibrant is that we are going to see restraint in spending by U.S.
consumers. Real consumer spending will rise by 2.2 percent in 2014, which is high enough to support GDP growth of
2.3 percent. Indeed, spending on homes and automobiles will make significant positive contributions to US GDP
growth. One reason consumer spending will not rise faster is that many people are not too confidence in either the
current situation or the future and therefore will remain cautious. Moreover, many households will still be deleveraging,
and will be reluctant to take on risk. Deleveraging means that money that people might have spent on goods and
services will go to paying down debt, which will limit consumers contribution to 2014 GDP growth.
GDP growth of our major trading partners will strengthen in 2014, which will raise the rate of growth of US exports.
The pace of import growth will accelerate even faster, however. Net exports therefore will subtract slightly from US
GDP growth in 2014. One problem is that even though the EU’s recession is winding down, its banking and sovereign
wealth problems are still far from having been resolved. While the situation in the EU is unlikely to cause a major
financial panic in 2014, its growth prospects do not look good. The historical correlation between US GDP growth and
EU GDP growth is extremely high, implying that little, or slow, growth in the EU will limit US GDP growth in 2014. A
7
second problem is that there has been a significant deceleration of growth of many emerging markets, especially in
countries that delayed major structural reforms. The deceleration of emerging market growth, which is due to both
structural and cyclical factors, reduces prospects for US manufacturers to export goods to the developing world in
2014.
Spending on business structures will be a positive factor in terms of GDP growth, with spending on structures related
to mining and petroleum posting the largest year-over-year gains. Due to weaker than expected growth of end markets,
spending on inventories is expected to subtract slightly from 2014 US GDP growth. Meanwhile, the fiscal drag from
state and local governments will dissipate in 2014.
As of mid-2013, US GDP was 4.6 percent above its pre-recession peak. Indeed, it took only two years for US GDP to
fully recover from the Great Recession. In contrast, the labor market is recovering much more slowly than production.
As of mid-2013, 76 percent of the jobs that were lost had been replaced. Full recovery of the jobs lost to the Great
Recession is expected in mid-2014. If that forecast pans out, it will have taken 5 years to recover the 8.7 million jobs
lost during the period leading up to, during, and in the immediate wake of the recession.
As was the case in 2010-13, the expectation that economic growth will be sustained depends on several positive
developments. First, sales of both new and existing homes as well as spending on new home construction will
increase. Second, credit markets will continue to thaw. Third, new jobs – and slightly higher wages – will be created in
the private sector, which will boost consumers’ inflation-adjusted buying power. Fourth, businesses’ spending for new
equipment and software will continue to expand. Moreover, increasingly such spending will be motivated by a need to
expand capacity rather than to improve efficiency. Fifth, crude oil and gasoline prices should remain at roughly the
same levels in 2014 as in 2013. Finally, limited inflation should reassure the bond markets and the Federal Reserve. If
most of these expectations are realized and major federal fiscal policy mistakes and external shocks (e.g., major oil
supply interruptions) are avoided, then the U.S. economy will experience sustained, but slow-paced economic
expansion.
Although many forces will power U.S. GDP growth in 2014, there also will be some powerful headwinds: (1) Declines
in the Federal government spending will subtract from 2014 GDP growth. (2) Uncertainty remains extreme in many
critical federal government policy areas, including the budget, the tax code, health care, regulation, and major reforms
to popular entitlement programs. These uncertainties undermine confidence, delaying decisions by businesses and
households to hire, expand capacity, or spend. (3) Efforts by the Federal Government to re-regulate certain industries,
or to protect at risk economic sectors, will have the unintended consequence of reducing US job growth. (4) The EU’s
main structural problem has not been resolved – monetary union without fiscal and political union – and its policy with
respect to its sovereign debt problems is not inspiring confidence. (5) There has been a deceleration in the growth of
emerging market, which dims prospects for US exports. (6) Consumers will exercise restraint due to continuing
deleveraging.
Housing
Housing will be a strong tailwind for US GDP growth. That’s primarily due to cyclical factors, but it’s also true that the
demographic trends are more favorable. This traditional driver of economic growth finally got traction in 2012 and it
gained momentum in 2013. In 2014, the number of single-family home starts for new construction will increase by
about 25 percent. Nonetheless, that large percentage gain in single-family housing starts will pale in comparison to the
peak-to-trough plunge in activity that occurred. Single-family housing starts peaked at 1.747 million units (annualized
rate) in the third quarter of 2005 and bottomed at 356 thousand units in the first quarter of 2009.
As predicted by the Terry College of Business, existing home prices stabilized in 2012 and rose substantially in 2013.
Existing home prices will rise by about 5 percent in 2014. Any remaining pockets of home price depreciation will be
very spotty, reflected local imbalances rather than overall macroeconomic conditions. In most markets, home price
appreciation therefore will bolster the psyche of the consumer and homeowners’ ability to spend.
As the record of home price appreciation lengthens, potential homebuyers who have been waiting on the sidelines for
even lower prices will increasingly opt to become homeowners. Rising rents will strongly reinforce this trend. Many
investors pulled the trigger on home purchases in late 2011 or in 2012, but people who buy homes to live in them did
8
2
so in increasing numbers in 2013. In 2014, the share of homes sold to people who live in them will rise rapidly and the
share sold to investors will decline sharply.
Both the single- and multi-unit residential construction sub-sectors will contribute to GDP growth. This broadly based
upturn in housing activity will add 0.5 percentage points to US GDP in 2014. That’s significantly more than the 0.3
percentage point contributions in both 2012 and 2013. Residential construction was a neutral factor in 2011. These
contributions are noteworthy given that residential construction subtracted 0.5 percent from U.S. GDP growth in 2006,
1.1 percent in 2007, 1.1 percent in 2008, 0.7 percent in 2009, 0.1 percent in 2010.
Going forward, the performance of the housing market will depend primarily on the performance of the labor market,
mortgage rates, and credit conditions. Modest employment and personal income growth are expected in 2014. Those
new jobs, and slightly bigger paychecks – plus appreciating home values – will give a more people the wherewithal and
the confidence to buy homes, ensuring the sustainability of the housing market’s recovery. Mortgage rates will remain
a tremendous bargain, but rates have risen above their recent historic lows and will move higher in 2014. That will
occur as the Federal Reserve winds done its purchases of mortgage backed securities and treasuries – QE3. Home
mortgages also should be somewhat easier to obtain. Credit conditions will ease due to the stabilization of home
values in most markets – as well as due to slowly improving macroeconomic conditions. Despite overall improvement,
credit will remain extremely tight for riskier loans. Although lending standards for new home construction and new
residential developments will get a bit easier, credit lines and money to builders will still be somewhat scarce,
restricting the supply of newly built homes. Also, low – perhaps overly conservative – appraised values will stymie
conventional lending as well as housing turnover.
Many households owe more on their mortgages than their homes are worth, which limits the availability of financing,
especially for those with lower credit scores. Plus, many more homeowners are in near negative equity situations.
These households will not be able to absorb the transactions costs involved in selling their homes, make a significant
down payment, or qualify for a new mortgage. These homeowners are stuck in their current homes, unable to trade up
or trade down.
A potentially powerful demand side support for homebuilding is the rebound in the rate of household formation, which
was quite depressed in 2008-2012. Job growth will be the key to unlocking the pent-up demand for housing that built
up as young adults opted to stay a home a bit longer. Moreover, improving job prospects will partially reverse the
recent surge in college enrollment and might also slow the rate at which student loan debt is piling up. Indeed, record
breaking levels of student loan debt is one reason why young adults are likely to delay moving out on their own, get
married, have children, and buy a starter house.
Non-Residential Construction
Although higher interest rates are a headwind, private spending for new nonresidential construction will increase in
2014, continuing the up cycle that began in the second quarter of 2013. Credit conditions will ease slightly for those
looking to build nonresidential structures, but will remain very tight in markets with high vacancy rates. Employment
and population growth gradually will generate gains in net occupancy. Tenants will still have the upper hand in lease
negotiations, but to a lesser degree than they did in 2009-2013. Meanwhile, foreign investors will be keen to take
advantage of a buyer’s market for U.S. real estate. These trends imply that the current up cycle in the nonresidential
real estate will gain traction, but also will lack vigor.
Office and retail vacancy rates will remain elevated, but will improve due to limited deliveries of space as well as less
sublease space coming onto the market. Demand for new office space will increase the most in markets that benefit
from growth of high technology and energy industries. Retail construction will continue to be limited by abundant
supplies of existing space as well as online competition, but pockets of new retail development will appear in the most
desirable locations. Industrial development will continue to benefit from rising levels of industrial production and
capacity utilization, with new development focused on locations with logistical advantages.
Less positively, spending for publicly funded structures will remain close to recessionary lows in many jurisdictions.
The primary problem is that weak real estate markets have led to downward – or at least slowed upward – adjustments
in assessed property values. Typically such adjustments lag movements in market prices by a year or more. Thus, for
3
9
another year, property tax bases will not be very supportive of revenue collections. Not all the news is bad, however.
For example, sales and use tax collections will rise by about 5 percent in 2014.
Consumer Spending
After retrenching in 2008 and 2009 – the first outright declines in consumer spending since 1991, consumer spending
contributed to U.S. GDP growth in 2010-13. The Terry College expects that consumers’ inflation-adjusted contribution
to GDP growth will be positive, and slightly larger in 2014 than it was in 2013. The Terry College assumes that the
deleveraging process – which already is quite advanced – will continue to be gradual rather than abrupt. But,
uncertainties regarding federal fiscal and tax policies will diminish the push to GDP growth from consumer spending.
In 2014, steady, albeit moderate, job creation coupled with a limited amount of wage and salary growth will help to
repair household balance sheets. The drag on consumer spending from still tighter than normal credit conditions will be
a limiting factor, however. The gain in inflation-adjusted consumer spending therefore will be about 2.2 percent, which
is low from a historical perspective, but is higher than the 1.8 percent gain estimated for 2013.
One reason why consumer spending will continue to grow is that household finances are improving. Going into the
recession, household finances were in terrible shape. US consumers were heavily indebted and very short on savings.
Indeed, by almost any measure households were extremely overextended. For example, the household debt service
ratio – debt payments divided by after-tax income – stood at an all-time high of nearly 14% in 2005-2008. If you add in
other financial obligations, such as automobile lease payments, rental payments on tenant-occupied property,
homeowner’s insurance, and property tax payments, you get a financial obligation ratio that was nearly 19 percent.
That’s also an all-time high.
A depressed household savings rate also reflected consumers’ largess. The household savings rate fell to the lowest
levels experienced since the Great Depression. Essentially, households opted to boost current spending by extracting
more and more wealth from their homes – this, of course, was facilitated by lax credit standards. The house became
the ATM.
In 2014, homes prices will rise and credit conditions will continue to loosen. Equity prices also will be on the increase,
but further gains will come much more slowly than in recent years. In mid-2010, personal bankruptcies reached its
cyclical peak of about 408 thousand per quarter, which is nearly triple the 150 thousand per quarter reported prior to
the recession. Personal bankruptcies declined slowly in 2011-13, but will still be a quite elevated 270 thousand in the
final quarter of 2013. Consequently, households will continue to exercise restraint in their spending out of current
income.
As households shift their priorities from spending to savings, the savings rate has risen from its cyclical trough of only 2
percent in the third quarter of 2005 to 4.3 percent in 2013. It will rise to 5 percent in 2014, but for many households that
level of savings will not be high enough to maintain current living standards in retirement. The household savings rate
therefore needs to rise to at least 7 or 8 percent by 2020. That’s quite attainable – a 9 percent savings rate prevailed
from 1961-1990. In short, a rising savings rate will be a secular headwind for consumer spending that will intensify
through the end of the decade.
The restoration of the discipline of saving represents an overdue return to normalcy that is helping households unwind
some of the imbalances that developed in their balance sheets. For example, the household financial obligation ratio
was over 300 basis points lower in 2013 than it was in 2007. In fact, the household financial obligation ratio has
returned to the levels that prevailed in the early-1980s and the early-1990s. A lower financial obligation – or debt
service – ratio not only frees up spending, but it also allows households to more easily service their debt. Similarly,
outstanding mortgage debt has fallen from 107 percent of disposable personal income in 2007 to 79 percent in 2013.
It will decline to 77 percent of disposable personal income in 2014. Prior to the housing boom, the ratio of outstanding
mortgage debt to disposable personal income was about 80 percent.
The protracted period of deleveraging has been painful, but it is also necessary. The statistics show that deleveraging
is well advanced, but it is far from complete. One concern is that continued volatility in the financial markets may cause
jittery consumers to push up the household savings rate very sharply in late 2013 or 2014, which would precipitate a
recession. Fortunately, that is not the most likely scenario.
10
4
One factor behind deleveraging was the unprecedented cycle of wealth destruction that erased 24 percent – $16 trillion
– of households’ net worth. That’s a huge number. In fact, the loss in net worth exceeded the total personal income of
all US households for all of 2012. Households’ net worth began to recovery in the second quarter of 2009, which
lessened one of the pressures that caused consumers to pull back sharply on spending. In the first quarter of 2013,
households finally recovered all of their nominal losses, but on an inflation-adjusted basis net worth was still 6 percent
($4.4 billion) below its pre-recession peak. On an inflation-adjusted basis, full recovery of the wealth that was lost is not
expected until mid-2014.
The large wealth losses that accompanied the Great Recession not only crippled consumer spending but also
dramatically reduced the amount of funds available to launch, or expand, small businesses. Personal wealth – not the
credit markets – is the primary source of funding for new small businesses. Demographic trends (e.g. an aging
population tends to become more risk adverse) and more business regulations also are behind the extremely low
levels of new business formation prevailing in the wake of the Great Recession.
At this juncture, job creation – and the income growth that accompanies it – is absolutely vital to the outlook for both
consumer spending and the overall economy. The forecast anticipates that the nation’s job machine will remain in
second gear in 2014, however. Job growth therefore will be adequate to sustain US GDP growth, but inadequate to
raise the rate of GDP growth to its long-term average of 3.1 percent. With recent losses in household wealth and a
greater focus on savings, increases in inflation-adjusted disposable personal income must account for virtually the
entire projected rise in consumers' spending. The upturn in both the number of jobs and the number of hours worked
per job are two factors the Terry College is counting on to support this income growth.
In 2014, consumers' inflation-adjusted spending for goods will increase much faster than spending for services, with
spending for durable goods growing more than twice as fast as spending for nondurable goods. Among durables,
outlays for information processing equipment will increase very rapidly. Outlays for new motor vehicles and
recreational goods also will grow quickly. Spending on nondurables such as food, clothing, pharmaceuticals, and other
medical products will rise moderately, but spending for tobacco will decline. Among services, spending on vehicle
leasing will increase the fastest. Providers of public transportation, recreational services, and financial services will see
above average growth in spending. In contrast, consumers’ outlays for restaurants, insurance, and utilities will grow
relatively slowly.
Labor Markets
On an annual average basis total nonfarm employment will increase by 1.5 percent in 2014, which is the same as the
1.5 percent gain estimated for 2013. Courtesy of the upturn in housing, job growth will be very broadly based.
Companies will hire as domestic demand for goods and services expands, but progress will be limited because
domestic demand will increase moderately. Meanwhile, global demand for U.S. exports also will expand, but slowly.
Also, venture capital – which fuels job creation – will be more available than it was in 2008-13. Plus, most businesses
long ago shed their redundant staff and are very lean relative to their actual staffing needs. Indeed, the rate of job
destruction in the private sector will be quite low. Even 2.3 percent GDP growth therefore will generate 1.5 percent job
growth. Also, GDP growth will outpace productivity growth in 2014, which will push firms to hire additional staff as end
markets slowly expand. The slightly faster pace of GDP growth will sustain job growth, but job growth will not
accelerate.
Unit labor costs will rise about 2 percent, which is almost double the increase estimated for 2013. Output per hour and
compensation per hour will rise by about 1 percent and 3 percent, respectively. Wages will rise by 2 percent and
benefits by 4 percent. Health insurance costs will be the primary force behind benefit cost increases. Net job creation
will be too weak to dramatically reduce the elevated unemployment rate, which will drop from 7.6 percent to 7.2
percent on an annual average basis.
Although net hiring will expand, several factors will limit the gains. First, as discussed previously, below average GDP
growth limits the impetus to hire. Second, the U.S. economy has exhibited extreme volatility, especially in the financial
and commodity markets, which will cause employers to hesitate before adding to permanent staff. Third, the
outsourcing of U.S. jobs to developing countries will continue to spread from blue-collar occupations in manufacturing
to white-collar occupations in high tech and service industries. Fourth, uncertainties regarding federal fiscal, tax, and
regulatory policies will restrain hiring. Fifth, the federal government will be downsizing its workforces, and this
5
11
restructuring will be permanent rather than cyclical. Sixth, the federal reserve will end QE3. Finally, some of the new
jobs that businesses will need to create will not match the skill sets of the unemployed. Fortunately, structural
unemployment stemming from labor force immobility will diminish as housing markets improve. But, structural
unemployment due to the skills mismatch is unlikely to diminish and probably will worsen due to recent cuts in
spending by many state and local government for adult/technical education and training.
In the coming year, construction companies will post the fastest rate of employment growth. Professional and business
services will see the second fastest rate of job growth. Natural resources and mining will see the third fastest rate of job
growth. And, transportation and warehousing will see the fourth fastest rate of job growth. Education, health services,
leisure and hospitality, and wholesale trade subsectors also will see solid employment gains. Providers of financial
activities will see limited, but positive employment growth. Information is not expected to lose or gain significant
numbers of jobs, but within this broad sector wireless telecommunications firms will be hiring even as wired carriers
and publishers are reducing their staffing levels. The Federal government and utilities are the only major sectors
expected to lose jobs.
US manufacturers will continue to hire, primarily due cyclical factors such as consumers’ and businesses’ growing
demand for durable goods rather than long-term structural shifts in competitiveness. For example, the up-cycle for
housing will provide a strong tailwind to US manufacturers. Nonetheless, because the economies of EU and Japan
have performed poorly, manufacturers who want, or need, to locate in developed economies increasingly will opt for
locations in North America. The US ranks very high in manufacturing competitiveness in terms of talent-based
innovation, the legal system, property rights, and physical infrastructure. China outranks the US in terms of both its low
costs and its high levels of government investment in manufacturing/innovation focused research and development.
Appreciation of China’s currency, the tightening of its labor markets, and low US natural gas prices are helping to
shrink the cost advantage of manufacturing in China, but overall progress will be very slow as such gains will be
significantly offset by rising regulatory and health care costs in the US.
Durable goods manufacturing sub-sectors with the best immediate prospects for job growth include wood products,
non-metallic mineral products, fabricated metal products, and machinery. In contrast, manufacturers of nondurable
goods will be subtracting from their workforces, but at a very modest rate. Among nondurables subsectors, only food,
chemicals, and plastics/rubber manufacturers will see positive job growth. Jobs will be lost in the textile, apparel,
paper, and printing industries.
Corporate Profits
After-tax corporate profits are already at very high levels, but should eke out low single digit percentage point gains in
2014. Excellent expense management, low debt burdens, and more broadly-based – albeit moderate – growth in
demand for goods and services will be the primary factors supporting profit growth. In 2014, financing also should be
somewhat easier to obtain, albeit somewhat more expensive. Nonetheless, continued easing of lending conditions
improves prospects for profits earned by smaller companies. The upturn in the housing market will be the primary
factor contributing to the broadening of the base of profit growth. Growth in spending for business equipment bodes
well for profits earned by technology-oriented companies. The upturn in housing markets will generate profits for many
home-related industries. Productivity growth is likely to be stronger in 2014 than it was in 2013, which is a panacea for
profits as well as the overall economy. It also bears keeping in mind that profit growth is very sensitive to movements in
GDP. The Terry College expects the pace of US GDP growth to accelerate slightly in 2014, which augers well for
domestically generated corporate profits.
On the negative side, the year-over-year comparisons will be extremely tough to beat. Businesses’ pricing power is not
expected to firm significantly. Finally, it’s important to recognize that financial institutions’ profit margins will be sensitive
to problems stemming from Europe’s sovereign debt crisis as well as higher long-term interest rates. Indeed, the slow
expansion of foreign GDP – especially the lackluster performance of the EU – will limit sales prospects for many
export-oriented companies. Corporate profits generated from international operations in emerging markets also will
grow more slowly in 2014 than in 2013.
12
6
Business Spending
After dropping sharply in 2008-09, nonresidential fixed investment was a major driver of GDP growth in 2010-2013,
with expenditures for computers and peripherals and transportation equipment increasing dramatically. Due to faster
growth in both corporate profits and end markets, the year-over-year percentage increases in business spending for
equipment and software will be larger in 2014 than in 2013. Such spending will grow much faster than GDP, reflecting
the need to replace equipment, to improve productivity, and to become less labor intensive. Strong cash flows and
easier credit – albeit somewhat more expensive – will fuel such spending.
It helps that corporate discipline with respect to capital outlays over the course of the 2001-2013 was excellent. Also,
lending standards will continue to ease in 2014. Plus, for many companies cash flows will be adequate relative to the
amount of funds they need for investment, lessening the impact of lingering credit constraints or higher interest rates.
And, after-tax corporate profits will grow faster in 2014 than in 2013, but it must be acknowledged that profits are
already at relatively high levels. Business spending for computers and peripherals will post the largest year-over-year
percentage gains. Substantially higher spending also is expected for industrial and communication equipment.
Spending for transportation equipment and intellectual property will increase modestly in 2014.
Below average levels of capacity utilization will be a headwind for business spending for equipment and software. Of
course, much of the excess capacity is either in the wrong location or in the wrong industry. The rate of capacity
utilization in all industries was 77.6 percent in mid-2013, which is up considerably from 66.9 percent in mid-2009. But,
the long-run (1972-2012) average rate of capacity utilization for all industries in the U.S. is 80.2 percent. Capacity
utilization varies dramatically by industry. In mid-2013, capacity utilization for industries producing crude products was
87.4 percent, which is above its long-run average and therefore should spur capacity additions. For goods at the
finished stage, capacity utilization was 75.6 percent, a rate only 1.5 percentage points below its long-run average. In
contrast, capacity utilization for goods at the primary and semi-finished stages of production was 75.5 percent, a rate
5.5 percentage points below its long-run average.
International Trade
In 2014, both real exports and imports are expected to grow about twice as fast as US GDP, reflecting the ongoing
globalization of input and product markets. Since imports will rise faster than exports, the trade gap will widen in 2014.
Hence, net exports will be a negative factor in terms of its contribution to US GDP growth. In 2014, the main obstacle
to faster US export growth will be the economic and political turmoil in the Eurozone, but China and many other
emerging market countries also will grow more slowly than in recent years. One reason why imports will grow strongly
in 2014 will be slightly faster growth of domestic consumer spending, which implies faster growth of imports of finished
goods as well as more outbound US tourists.
In 2014, US export growth will be broadly based, and growth will be faster in emerging-market or commodity-based
economies than in developed economies. Without exception, increases are expected for all of the major categories of
goods and services. Exports of goods will grow much faster than exports of services, however. Growth will be fastest
for capital goods. Emerging-market countries in particular are expected to spend more on equipment and
infrastructure. Industrial materials, foods, consumer goods, and inbound tourism will see more moderate gains. It
should be noted that the broad-based quality of U.S. export growth reduces the chances that export growth will stall in
2014.
In 2014, the Terry College expects slight additional US dollar appreciation, but that will not hurt US exports too much.
That’s because from a historical perspective the US dollar’s value is still quite low, and some additional appreciation
will not cause US exports to tank. The current account deficit will equal about 2 percent of US GDP.
Inflation
If oil prices remain relatively steady, consumer price inflation will increase by 1.5 percent in 2014, compared to 1.4
percent in 2013. Of course, inflation will be even lower should energy prices tumble, or should the economy experience
a recession. There are no signs that inflation is or will soon be a problem, and the usual drivers of inflation will not be
much more intense in 2014 than in 2013. For example, the pace of 2014 GDP growth will be well below average and
13
only slightly higher than in 2013. Also, consumer spending and employment will both grow moderately. Plus, there is
still excess capacity in a large number of economic sectors, illustrated by the elevated unemployment rate.
Once U.S. economic growth builds up some steam, the Federal Reserve will move to take back some of its rate cuts.
As long as the Federal Reserve does not keep rates too low for too long, the risk of stagflation remains very low. The
Terry College expects the Federal Reserve to keep rates on hold into 2015. The precise timing and magnitude of the
future rate increases by the Federal Reserve also will depend on both the magnitude and perceived durability of the
expansion. Based on the Terry College’s forecast of lackluster – albeit sustained – US GDP growth and a sluggish
global economy, the Federal Reserve will begin increasing short-term policy interest rates in late 2015. Any increase in
rates in 2014 will be investor-driven rather than Fed-drive and therefore will be dependent on the pace of economic
growth. Thus, interest rates will only rise slightly in 2014.
Heightened competition for jobs from both domestic and foreign workers also will help to keep the lid on U.S. wages
and benefits by dampening workers expectations even as consumer prices rise. In the 2014 economy, workers do not
realistically expect their employers to raise their wages to fully offset higher consumer prices. For the time being,
workers will be willing to accept a lower standard of living.
The outlook for inflation beyond 2015 is considerably less sanguine, however. Because inflation is a monetary
phenomenon, the magnitude of recent monetary stimulus increases the risk of inflation. Also, the federal debt has
skyrocketed in absolute terms as well as in terms of its percentage of GDP. That creates pressure to monetize the
debt. Over the next decade it’s likely that inflation will exceed the 3 percent average of the last 30 years. Also, despite
the lack of a good substitute, the US dollar could gradually lose some of its status as a reserve currency or safe haven.
China and others with large foreign currency holdings may choose to gradually diversify their portfolios away from US
dollar assets. Of course, the mushrooming federal debt does not have to produce more inflation; it may instead simply
force US interest rates higher to attract the needed capital. Either way, outsized budget deficits can not be sustained
for more than a few years without doing significant damage to the US economy and its prospects for growth. Over the
long term, keeping inflation in check means fully embracing sound federal fiscal policy.
Crude Oil Markets
Absent additional significant supply interruptions it is unlikely that oil prices will go much higher or lower in 2014.
Prices will range between $100 and $125 per barrel, but because prices are so volatile it would not be too surprising if
oil were to trade outside of this band. Also, this forecast is predicated upon a slight acceleration in the modest pace of
global economic growth, no major disruptions in the supply of crude or refined products, and bringing online new
energy infrastructure.
The primary reason crude oil prices soared in 2008 was that global supply was not increasing fast enough to keep
pace with increases in global demand – driven mainly by emerging markets. In 2014, slow growth of the global
economy will allow capacity to expand sufficiently to prevent oil supplies from tightening. Domestically, oil production is
booming in the Bakken formation in North Dakota. Substantially higher output is also expected from Texas, and several
other states. Oil imports therefore will decline significantly as a percent of GDP. Also, steady, high energy prices will
gradually lead to improvements in energy efficiency, but those are long-run rather than short-run determinants of
demand.
14
The Georgia Outlook for 2014
In 2014, Georgia’s economy will continue to recover from the Great Recession. The pace of growth will be modest, but
faster than in 2013. Because the massive restructuring of Georgia’s private sector is complete, the risk of another
recession will be lower in 2014 – 30 percent – than in 2010-2013. The primary risks likely to trigger a new recession
are mistakes in fiscal and/or monetary policies, oil price shocks, and contagion of financial panics originating overseas.
The risk of recession is the same for Georgia as for the nation.
The Terry College’s 2014 baseline forecast calls for Georgia’s inflation-adjusted GDP to increase by 3 percent, which
exceeds the 2.3 percent growth estimated for 2013. Georgia’s 2014 GDP growth rate will be 0.7 percent higher than
the 2.3 percent rate estimated for US GDP. The positive differential reflects (1) the housing recovery, (2) strategic
shifts in the state’s economic development strategy, and (3) more supportive demographic forces. The state’s nominal
personal income will grow by 5 percent in 2014, which is slightly higher than the 4.2 percent gain expected for the US.
Georgia’s non-farm employment will rise by 1.8 percent in 2013, which exceeds the 1.5 percent gain estimated for the
US, but equals pace of job growth estimated for Georgia in 2013. The main headwind facing Georgia in 2014 is federal
fiscal austerity, especially cuts in federal defense spending.
Georgia suffered disproportionate job losses during the “Great Recession” and so far, has recovered more slowly.
Georgia lost 340,000 jobs, or 8.1 percent of the state’s pre-recession employment peak. In contrast, the country lost
6.3 percent of its jobs. By July 2013, Georgia had recovered 65% of those lost jobs. Compare this with our nation
having replaced 76% of its lost jobs. So, 4 years into the economic recovery and Georgia is still down 118,200 jobs.
Fortunately, Georgia’s employment will grow by 1.8% in 2014. If that rate of growth is sustained, Georgia will replace
the jobs it lost by mid-2015. The US will replace its lost jobs by mid-2014, or about one year ahead of Georgia.
The lack of new business formation is one underappreciated reason why Georgia’s job growth has been slow. It is new
companies that typically create almost all net new jobs. Business formation requires cash. The typical entrepreneur
often obtains the funds needed to start, or expand, their business by borrowing, using their home as collateral. That’s
been a problem for Georgia’s entrepreneurs because home price depreciation was much more intense here than it was
nationally. Federal Housing Finance Agency data show that the peak-to-trough home price decline was almost 30
percent in GA compared to 20 percent nationally. Consequently, much of the home equity that households traditionally
use to start a business evaporated. The good news is that Georgia’s home prices are on the upswing, up about 13
percent on a year-over-year basis in the first quarter. But, the lag between the market value of our homes and their
appraised values will continue to restrain lending to Georgia’s entrepreneurs in 2014.
Georgia’s unemployment rate for 2014 will average 8 percent, or about 0.5 percentage points lower than the 8.5
percent rate estimated for 2013. Private sector job growth will be very balanced in 2014. The fastest job growth will
occur in construction, followed by professional and business services, and mining and logging. Education and health
services, information, and leisure and hospitality will see above-average gains. Below-average job growth is expected
for trade, transportation, utilities, and manufacturing. Positive, but slow job growth is projected for financial activities. In
contrast, job losses will continue in the government sector, which is the only major economic sector expected to lose
jobs in 2014.
Prospects for Service Producing Industries in 2014
Service producing businesses led the upturn in Georgia’s economy that began in mid-2009, but some major service
industry subsectors – financial activities and information – initially did not participate and continued to cut jobs. The
2014 forecast indicates that all Georgia’s major categories of service-related businesses will expand, with the broader
base of growth reflecting the upturn in housing markets and growing demand for information and high technology
services, and more competitive economic development incentives. Economic conditions and improving demographic
trends will strongly favor Georgia’s beleaguered financial institutions, but re-regulations and less mortgage refinancing
will be headwinds.
Recent project announcements promise substantial job gains at headquarters operations – PulteGroup, Air Watch,
Porsche, Carter’s Incorporated, Spanx, Mitsubishi Electric. IT companies also have announced major projects,
1
15
including Ernst & Young, CBS Corporation, Infosys. Healthcare IT is an emerging industry that promises to create
thousands of high-paying jobs over the next decade. Services businesses that either lower costs or provide
necessities, such as health services, will do better than those that provide luxuries or are easily deferred. Indeed, the
outlook for health services is excellent. After all, the population of persons with multiple chronic health conditions that
require medical care continues to grow rapidly regardless of the ups and downs of the business cycle or the
uncertainties created by healthcare reforms. Some business categories, such as educational services, will benefit from
positive secular trends which will be reinforced by the cyclical upswing of Georgia’s economy. Recent and continuing
increases in spending for new equipment and software will underpin higher demand for computer services for
businesses. The faster pace of economic growth will bring relief to many consulting firms, but tight government budgets
will limit the gains for firms with many public-sector clients.
Prospects for Manufacturing in 2014
Since the turn of the millennium, Georgia has lost 204 thousand – or four out of every ten – manufacturing jobs. The
purge ended in 2010. Over the last two of years there have been many major project announcements, bolstering
prospects for job growth in aircraft (e.g., Gulfstream), automobile (e.g., KIA’s suppliers), construction equipment
(Caterpillar), and flooring (e.g., Engineered Floors) manufacturing. Cyclical economic recovery in combination with
more competitive economic development incentives will help Georgia attract manufacturers in 2014. The incoming data
shows that manufacturing jobs are not coming back too quickly, however. The state added 5,600 manufacturing jobs in
2011, 4,000 jobs in 2012, and an estimated 2,100 jobs in 2013. Manufacturing employment will rise by 4,100 jobs in
2014. That will sustain the cyclical recovery in manufacturing, but at that pace it will take 50 years to replace the
manufacturing jobs that were lost. The bottom line is that talk of a manufacturing renaissance is overdone. To become
a state where manufacturing activity truly concentrates Georgia will need to (1) develop a better educated and more
highly skilled blue-collar workforce and (2) become a more fertile ground for developing and adopting innovative
productivity-enhancing technologies. In developed economies, the manufacturers that thrive will be extremely capital
intensive and much less labor intensive. The minimum skill requirements for factor workers therefore will rise very
rapidly as manufacturers utilize much more sophisticated manufacturing technologies.
Private-Sector Restructuring
The main reason why Georgia got hit harder than the nation by the Great Recession – and underperformed during the
first three years of the recovery – was the state’s heavy dependence on real estate development and homebuilding as
well as closely allied industries such as building materials manufacturing and real estate financing. Prior to the housing
bust, Georgia – like many other Sunbelt states – had become very dependent on a the in-migration of new residents
and new businesses to beget yet another round of new development that was based in part on servicing the previous
round of new development. Not enough of Georgia’s economic growth was based on innovation, educating its own
people, courting emerging high-tech industries, and promoting the growth of in-state capital markets. The financial
crisis and the bursting of the housing bubble caused the inflows of people and businesses to end very abruptly. The
sudden drought of new construction and the dearth of new residents precipitated a large and painful restructuring of
Georgia’s economy. The restructuring process was extremely drawn out due to the weakness of the national economy.
Plus, it takes a long time to deleverage.
The financial crisis and the real estate bust also did more damage to Georgia’s financial activities sector than to the
nation’s financial sector. For example, the peak-to-trough drop in statewide employment in financial activities was 11.3
percent compared to a drop of 8.6 percent for the U.S. The outsized job losses in financial activities reflected
overexposure to construction, land development, and commercial real estate loans which caused Georgia to lead the
nation in the number of failed banks. The restructuring of Georgia’s financial activities industry was completed in 2011,
with the sector adding jobs in 2012-13. Financial activities will see 1.1 percent job growth in 2014.
Georgia also suffered from restructuring in areas unrelated to the bursting of the property bubble. For example, the
state’s information industry – which is heavily concentrated in Atlanta – began restructuring and losing jobs back in
2001 when the technology bubble burst. A decade later, in 2011, one-third of Georgia’s information jobs were gone.
Although the wired telecommunications subsector will remain in secular decline, employment in Georgia’s overall
information industry began to recover in 2012, expanded vigorously in 2013, and is poised for another year of aboveaverage job growth in 2014. The much anticipated recovery reflects three factors: surging demand for newer innovative
wireless services and high-volume data applications; Atlanta’s deep and broad pools of IT-savvy workers – often young
16
college graduates; and media jobs in film and television that reflect generous economic development incentives as well
as Atlanta’s long established cluster of television jobs. Most of the growth of the film industry is taking place in either
the Atlanta MSA or the Savannah MSA.
As the direct and indirect effects of restructuring and the real estate bubble fade, Georgia’s sub-par pace of economic
recovery caught up and eventually paced that of the nation. For example, in 2012, Georgia’s rate of GDP growth fell
short of the rate of US GDP growth by 0.7 percentage points – 2.1 percent growth in Georgia’s GDP versus 2.7
percent growth in US GDP. In 2013, Georgia’s economy performed slightly better than the U.S. economy. In 2014, the
3.0 percent advance in Georgia’s GDP will exceed the 1.6 percent advance projected for US GDP by 0.7 percentage
points.
Public-Sector Restructuring
The last remaining large imbalance – “bubble” – is hard to miss – its government spending. The restructuring of
Georgia’s private sector is complete, but the public sector still needs a lot of work. Public sector restructuring
constitutes the strongest remaining headwind for Georgia’s economy. The challenges are immense, especially at the
federal level. In 2012, federal, state, and local governments provided 13.8 percent of Georgia’s GDP, exceeding the
national average of 12.3 percent. Governments at all levels account for 17.2 percent of statewide employment,
exceeding the US average of 16.4 percent.
Of the 3 levels of government, GA’s state government has made the most progress adjusting its spending and staffing
to reflect available revenue. The biggest remaining challenge for state government is uncertainty regarding federal
funding for mandated programs such Medicaid. Pension liabilities and retiree health care costs will be the 2 nd and 3rd
biggest challenges. Similar to state government, local governments will struggle with reductions in federal and state
funding; pension liabilities; and retiree health care costs. But, on top of those challenges, some local governments
have yet to fully reconcile their reduced ability to generate revenue with their spending and staffing levels. That’s
mostly because local governments are extremely dependent on property taxes for revenue. The property bust
decimated both residential and commercial property values. Although real estate prices are now rising, assessed
property values will lag market values. So, some local governments will need to make additional budget cuts in 2014,
but the headwind to the economy from restructuring local government is diminishing very rapidly.
A new era of federal fiscal austerity is just beginning. The restructuring of our federal government is a headwind for
Georgia’s economy that will remain strong for at least a decade. Federal spending accounts for 6.9 percent of
Georgia’s GDP, which exceeds the US average – 5.3 percent. Georgia dependence on federal spending reflects the
presence of many large military bases – defense spending accounts for 5.2 percent of state GDP compared to the US
average of only 3.5 percent. In contrast, federal nondefense spending accounts for only 1.7 percent of Georgia’s GDP,
which is below the US average. Location quotients, which measure the relative importance of an industry to GDP puts
the federal government’s military impact in Georgia at nearly twice the US average.
The default budget cuts mandated by the federal spending sequester are heavily skewed towards military spending.
Georgia communities that are very dependent economically on large military bases therefore are especially vulnerable.
Georgia would only take an average (or below average) hit if the federal budget cuts were focused on non-defense
spending, or on the specific entitlement programs that are the root causes of the budget problems. After all, the major
federal budget busters are Social Security, Medicare, and Medicaid rather than the federal agency budgets. US elected
officials must restructure on these popular entitlement programs before our economy can move onto a substantially
higher growth trajectory.
Housing Recovery
Home building and real estate development have long been extremely important to GA’s economy. This traditional
driver of growth finally got traction in 2012 and gained momentum in 2013. Housing and real estate development will
be a very powerful tailwind for Georgia’s economy in 2014, helping the state’s economy to outperform the nation’s
economy. The number of single-family home starts for new construction will increase by 36%. Not only do realtors and
home builders benefit directly, but Georgia gets a two for one from the housing recovery because of increases in the
derived demand for goods produced by our large building materials and forestry industries.
17
Georgia’s housing market is responding to a more favorable balance of supply and demand. Increased demand for
housing will come mostly from 1.8% job growth. Those new jobs, and slightly bigger paychecks – plus appreciating
home values – will give more people the wherewithal, and the confidence, to buy homes. That will sustain the housing
market’s recovery. Meanwhile, mortgage rates will remain a tremendous bargain from a historical perspective, but
mortgage rates have risen above their recent historic lows and will continue to move higher as the Federal Reserve
winds down its purchases of mortgage backed securities and treasuries.
Supplies of new homes are still constrained by years of under-building. Plus, there’s a scarcity of listings of existing
homes. That’s partially because so many of Georgia’s homeowners are underwater on their mortgages and are
therefore unlikely to put their homes up for sale. It’s especially troubling that the negative equity is concentrated in the
low price, or starter home segment of the market. That hurts the trade up market. Also, many homeowners realize they
will not qualify for a new mortgage. So, lots of homeowners will stay put.
In Georgia, another reason why listings are scarce is that many homeowners are simply unwilling to accept today’s
depressed home prices. Georgia’s homeowners saw very steep declines in home prices in the wake of the housing
bust, but did not see a run up in home prices during the housing boom. For long-time homeowners, today’s prices
mean real losses rather than the paper losses incurred in states where home prices surged during the housing boom.
So, despite the fact that Georgia home prices have recently risen very quickly, listing are still somewhat scarce.
Nonetheless, the current housing situation does not resemble anything close to a true “sellers” market. Listings are
scarce mostly because home prices are still well below the levels needed to get homeowners who would like to sell to
consider putting their homes on the market. For example, even after factoring in recent 13 home price gains, Georgia
existing home prices are still about 20 percent below their pre-recession levels. So, Georgia home prices have only
recovered to where they stood at the turn of the millennium. Once home prices rise above reservation prices, existing
homes will come onto the market in very large numbers, preventing a true “sellers” market from developing. I suspect
there’s a huge pent up demand to sell, but not at today’s depressed prices. So, this is still a buyer’s market.
One reason home prices are rebounding is that the huge inventory of distressed homes is dissipating. The stock of
foreclosures has dropped more than 40% in GA. Foreclosure inventory now accounts for only 1.7% GA’s housing
stock. That’s well below the national average of 2.6%. There are two reasons why distressed inventory disappeared so
quickly – GA is a non-judicial foreclosure state, which allows for faster resolution. Second, investors have been
especially keen to purchase distressed properties in the Atlanta MSA. Investors are drawn to Atlanta because the
home price declines here were way overdone.
It comes as no surprise that the recent rebound in home prices is causing credit conditions to ease. But, appraised
values lag market values. So, low appraised values will continue to hold back conventional lending as well as housing
turnover.
Another restraint on housing activity is that many of GA’s homeowners with mortgages still owe more on their
mortgages than their homes are worth. That severely limits the availability of financing. And, even more of GA
households with mortgages can’t absorb the transactions costs involved in selling their homes, much less make a
down payment. These homeowners are stuck in their current homes. So, the trade-up market for homes is not
functioning normally, but it’s improving.
Existing single-family home prices will rise by 8% in GA in 2014. Lower priced homes will appreciate the fastest. That’s
partially because the lowest tier has the most ground to make up and remains the farthest from full price recovery. But,
it also reflects investors’ interest in purchasing inexpensive single-family homes for use as rental properties. In
contrast, price appreciation for upper tier homes will depend mostly on the trade up market, which is still not functioning
normally.
As potential homebuyers see a record of price appreciation, more will opt to become homeowners. Rising rents will
reinforce this trend. Last year, investors were the main force behind home sales. This year, people who buy homes to
live in them joined investors to become a second major force powering home sales. But, as home prices rise and the
number of distressed properties shrinks, home sales to investors almost certainly will drop. Sustaining the recovery of
the housing market through 2014 means that trade-up buyers and first-time buyers must become more active. That up
cycle has begun, but it’s not too vigorous.
18
4
There are still a lot of negative forces for housing, several of which already were discussed. One additional negative is
that the image of housing as an investment has been damaged and will not be repaired quickly. Yet, another problem
is that more federal regulation will keep credit tighter and more expensive that might otherwise have been the case. Of
course, the biggest negative impacts of Dodd-Frank and qualified mortgage regulations will not be felt for a number of
years.
Economic Development
In 2012, Georgia’s leaders passed key economic development legislation that made Georgia more competitive. The
result is an increased number of large relocation and expansion projects announced 2012-13 that will provide a
tailwind to Georgia’s economic growth in 2014. Examples of these projects include Baxter International is building out a
facility near Covington that will bring 1,500 biotechnology jobs; GM will open an IT-innovation center in Roswell that will
bring 1,000 high-tech jobs, Engineered Floors will open manufacturing and distribution facilities in NW Georgia that will
bring over 2,000 jobs, Caterpillar is creating 1,400 jobs in the Athens area, Ernst & Young will open a global IT center
in Alpharetta, creating 400 new high-tech jobs. In addition, Georgia continues to attract automobile parts suppliers.
Recent examples include: Inalfa Roof Systems will open a manufacturing plant in Cherokee County that will create 300
jobs; and Hitachi Automotive Systems will double its workforce in Monroe, adding 250 jobs.
Due to cost, logistics, and tax advantages, Georgia is very competitive with other states when it comes to landing
economic development projects. As noted above, these advantages began to bear more fruit in 2012-13. That’s
partially because Georgia made several strategic shifts in its economic development strategy, including the creation of
a large deal closing fund and the elimination of sales and use taxes on energy used in manufacturing. Legislation
passed in 2012 made Georgia more competitive, but Georgia will have to be very aggressive in closing the right deals.
Georgia should target industries that expand the economic base and have good potential for long-term growth.
Georgia must invest strategically and grow clusters in areas such as bio-technology or information-technology. The
focus should be on innovation-based companies. Of course, Georgia must also make sure that its statutory incentives
remain competitive – the statutory incentives help to get Georgia short-listed by site selection professionals. Then, only
after Georgia is short listed, do those critical deal closing incentives come into play.
A review of economic development announcements issued by the Office of the Governor and the Georgia Department
of Economic Development indicates that economic developers are closing many deals in industries in which the state
has the ability to produce at a low opportunity and marginal costs – comparative advantage. Specialization in activities
where Georgia has comparative advantage bodes well for sustained success of the companies that received incentives
thereby enhancing the prospect for long-term economic growth. Logistics, transportation, distribution, warehousing,
information technology, transactions processing, headquarters operations, and several professional and business
services are good examples of industries where competes effectively.
Favorable Demographics
Demographic forces are a third factor behind Georgia’s improving economic performance. For decades, Georgia
depended on a growth model that was based on high levels of in-migration. That growth model stopped working during
the Great Recession and was slow to restart in the recession’s wake. In fact, household formation dropped to its lowest
levels since the 1940s. Due to job growth and the housing recovery, geographic mobility will increase in 2014. Inmigration will begin to rebound strongly. Also, the birth rate will rise as households become more confident in the
current situation and their expectation for the future. Population growth therefore will be a much stronger driver of the
state’s GDP in 2014 than it was in 2008-2013, but it will be less powerful than in prior decades.
In 2013, Georgia’s population will grow at a pace that exceeds the national average – 1.3 percent for Georgia versus
0.9 percent for the U.S. So, the differential in the annual rates of the state’s and the nation’s population growth will be
0.4 percent. The higher rate of population growth reflects a rise in net migration to the state to about 61,000 people in
2014, up from only 29,000 in 2009. Nonetheless, prior to the Great Recession Georgia’s annual rate of population
growth was about a full percentage point above the national average, which translates into about 100,000 new net
migrants each year. The differential will widen as Georgia begins to generate jobs at a pace that is significantly above
the national average. Jobs will attract young adults who as indicated above will be more mobile than they were prior to
the housing bust.
19
Retirees
Prior to the Great Recession, the stars were aligned for Georgia’s retiree industry. It was widely recognized that the
nation’s elderly population would grow much faster than the total population, increasing the economic importance of
the elderly. Freed from the geographic constraints of living near their jobs, many retiring baby boomers are expected to
move to places more suited to a leisurely lifestyle. Also, compared to recent generations of retirees, baby boomers are
well traveled and highly educated, two factors strongly associated with retiree migration. Another factor promoting
mobility is that at age 65, many baby boomers will retire in relatively good health and can reasonably expect to live
another two decades. A high proportion of the oldest baby boomers would be able to draw upon traditional pensions as
well as Social Security and Medicare. In addition, by 2007, household net worth reached an all-time high.
The financial crisis and the bursting of bubbles in the nation’s property markets abruptly choked off the inflow of
retirees to Georgia (and elsewhere). For primarily economic reasons, people stopped moving. The Selig Center
estimates that 68 percent of the decrease in the nation’s overall mobility rate was due to economic conditions and only
32 percent was due to continuing long-term trends.
Despite the sharp drop in mobility, the state-to-state migration data for the period 2007-2011 indicates that Georgia
remained very competitive in attracting the shrinking number of retirees who did move. Unlike some Sunbelt states
such as Florida, Georgia continued to attract a healthy share of those retirees who moved from state to state.
As the U.S. economy recovers from the recession, mobility will almost certainly increase. Although the Census Bureau
has yet to release detailed data for 2012, the next up-cycle of state-to-state retiree migration probably is underway
already, and will gain momentum in 2013. The oldest baby boomers turned 65 in 2011, but the state-to-state migration
data show that comparatively few moved to a new home. As economic conditions improve and housing markets
normalize, retirees who stayed put will opt to move to places better suited to a more relaxed lifestyle. Georgia’s will be
in a good position to attract these retirees. Moreover, new census projections show that from 2015 to 2030, the U.S.
population over 65 will grow by 53 percent compared to only 3 percent for the population 18 to 64 years. So barring a
major pandemic, economic catastrophe, or a dramatic increase in traditional retirement age, the prospects are
excellent for retiree-based economic development.
Prospects for Selected MSAs in 2014
Atlanta
A revival of population growth and the housing recovery will strongly underpin Atlanta’s ongoing economic recovery. A
high concentration of college-educated workers will continue to attract high technology companies in life sciences,
research & development, IT, professional and business services, and high-tech manufacturing. Compared to other
large metropolitan areas with strong links to global markets the costs of living and doing business in the Atlanta MSA
are low. The pool of talent also is large and deep for occupations that do not require college degrees. Businesses also
are attracted by Atlanta’s extensive multi-modal transportation and distribution system.
On an annual average basis, the 28-county Atlanta MSA will add 57,800 jobs in 2014, a year-over-year increase of 2.4
percent. Atlanta therefore will account for 78 percent of the state’s net job growth. Atlanta’s high concentration of
service producing industries, IT companies, distribution companies, institutions of higher education, health care
providers, life sciences companies and headquarters operations will keep Atlanta’s job machine in forward gear.
Atlanta’s outsized information industry will benefit from expanding film and television production as well as surging
demand for more sophisticated wireless services. Also, many of the larger projects recently announced by the Georgia
Department of Economic Development were located in the 28-county metropolitan area.
Major improvements at Hartsfield-Jackson International Airport bode well for Atlanta’s growth, especially the
completion of the new international terminal. The airport makes the Atlanta area an ideal location to operate corporate
headquarters or facilities that produce highly perishable biomedical products. The airport improvements also will help
Atlanta to become even more popular as a destination for tourists, persons attending business meetings &
conventions, trade shows, as well as sporting/cultural events.
One major plus for Atlanta in this new era of federal fiscal austerity is that the metro area is not too dependent on
federal jobs. Only 4.0 percent of the Atlanta’s area’s non-farm earnings come from federal employment versus 7.7
20
6
percent for the state as a whole. Atlanta is not the home of a major military base. State and local government accounts
for only 8.9 percent of earnings in metro Atlanta versus 11.4 percent for the state. So, public restructuring will be less
problematic for Atlanta’s growth than for growth elsewhere in Georgia or for the nation as a whole.
Albany
On an annual average basis, the 2014 forecast indicates that the Albany area will see employment rise by 0.3 percent,
or by about 200 jobs. A high proportion of government jobs makes Albany vulnerable to the restructuring of
government. Indeed, Albany lost government jobs in 2011, 2012, and 2013. In 2011 and 2012 the losses were
primarily at the federal level, but in 2013 all levels of government lost jobs. Another problem is that the area’s
population and labor force have been declining and will continue to decline in 2014. Also, compared to the Georgia
average, Albany has relative fewer people within the 25 to 49 age bracket, typically the most productive years,
professionally.
Because Albany is a small MSA, the actions for the better or for the worse by one major company probably will
determine the area’s actual economic performance. One economic stabilizer for Albany is that much of the area’s
manufacturing base is geared towards basic consumer staples, which households continue to buy whether or not the
economy is expanding. Miller Brewing and Proctor and Gamble are good examples. Indeed, manufacturing
employment is holding steady.
As economic conditions continue to improve, Albany will capitalize on its assets, including a low cost of doing business,
an excellent telecommunications infrastructure and a reputation as a good place to live and raise a family. The area
economy will slowly rebuild itself. Albany is moving away from traditional manufacturing and towards its role as a
regional retail, health care, and transportation hub. Albany will continue to fare well in its traditional role as a support
center for agriculture, but dependence on agriculture does make the regional economy more exposed to the ups and
downs of commodity markets as well as varying growing conditions.
As consumer spending recovers, Albany will benefit from its role as a regional retail-wholesale-distribution center and
from spillover from Florida. Redevelopment along the Flint River adds to Albany’s charm, and adds to the area’s
potential to benefit from tourism and retiree-based development. Albany’s increasing role as a regional center for
health care and education also weighs strongly in its favor, but the growth of both of these industries will be limited by
the area’s sub-par population growth.
Athens
In 2014, employment in Athens will increase by 1.7 percent – about 1,500 jobs, which exceeds the gains estimated for
2013. Athens will benefit from several factors: Caterpillar’s new factory will expand over the next several years.
Athens’ outsized healthcare sector is poised for growth, expanding Athens role as a medical service center for
northeast Georgia. The establishment of a medical school campus at UGA in partnership with Georgia Regents
University will encourage further development of the clinical healthcare and biomedical industries. The establishment of
UGA’s College of Engineering will enhance entrepreneurial development and help recruit high tech companies and
venture capital. Ethicon Inc., a subsidiary of Johnson & Johnson recently expanded its operations in Athens. More
exhibit space at the Classic Center positions Athens to attract larger conventions and trade shows. Although just
outside the Athens metro area, the recent expansion of Kubota’s manufacturing facility in Jefferson will provide a boost
to the regional economy.
Athens could be held back by its outsized government sector, which will remain under severe pressure due to
continuing budget difficulties. State and local government jobs account for 29.3 percent of the area’s non-farm earnings
compared to only 11.4 percent of the state’s non-farm earnings. In fact, Athens is six times more dependent on state
government jobs than the state as a whole and that is no longer an advantage. Due to the development of competing
hubs elsewhere in Northeast Georgia (e.g., the Mall of Georgia and Discover Mills), Athens’ role as a major regional
hub for retail shopping has been declining for many years. The development of the Epps Bridge Center should help
improve the area’s appeal as a retail destination. The Athens MSA’s information, financial activities, and professional
and business services industries also are undersized, limiting the impetus to the region’s overall growth from these
industries in 2014. The information industry in particular is shrinking relative to the overall size of Athens’ economy.
7
21
Augusta
In 2014, Augusta’s employment will increase by 1.5 percent, or 3,200 jobs. Strong performance of Augusta’s service
producing industries, notably health care and private education are positives for the area’s economy. The metropolitan
area will benefit from the construction of two nuclear power plants at Plant Vogtle. Augusta is a center for
telecommunications services and call centers, including telemarketing and reservations. The Georgia Medical Authority
will use the expertise available at Georgia Regents University to establish Augusta as a center for the rapidly growing
life sciences industry. A new Starbucks manufacturing facility will bring 140 jobs to Augusta. Ultimately, Clarks Hill
Lake will be an important factor in retiree-based and second-home development.
Fort Gordon has grown dramatically in recent years and adds substantially to the area’s supply of well-trained, skilled
workers. Nonetheless, Fort Gordon does make Augusta’s economy vulnerable to cuts in defense spending. Federal
civilian and military jobs account for 15.8 percent of the Augusta area’s non-farm earnings compared to only 7.7
percent of the state’s non-farm earnings. Although Augusta’s undersized information and financial activities industries
spared the region from the restructuring that has plagued these sectors, it also limits opportunities for renewed growth
in those industries in 2014.
Columbus
On an annual average basis, employment will rise by 1.2 percent in 2014, or 1,400 new jobs, which is a significant
improvement over 2013 when no jobs were created. The regional economy derives a larger than average share of
economic activity from three industries: financial activities, government, and leisure and hospitality. The Columbus
MSA’s regional economy is extremely dependent on financial activities. Indeed, the Selig Center expects the regional
economy to become even more concentrated on financial activities over time. Improving conditions for financial
activities in 2014 bodes extremely well for the Columbus MSA.
The area’s economy is very dependent on government spending – mainly due to the presence of Fort Benning. Going
forward, the Selig Center expects the MSA’s economy to become less dependent on government. The restructuring of
the federal government sector therefore constitutes a major headwind for the Columbus MSA. Federal fiscal austerity
significantly diminishes the near term prospects for regional economic growth and also makes the overall business
environment more risky.
The regional economy is slightly more dependent on the hospitality and leisure industry than the nation as a while.
This industry’s concentration is not expected to vary too much over time. Nonetheless, the Selig Center’s expectations
for the hospitality industry are positive, which bodes well for the performance of the Columbus region’s economy in
2014.
Developments and short-term prospects for industrial recruitment and expansion are good, albeit not overwhelming.
The expansion of Koch Foods poultry processing operations in Harris County adds 750 jobs. BlueCross and
BlueShield of Georgia will add 400 jobs in Columbus to serve the state health benefit plan contract which kicks in on
January 1, 2014. The reopening of Hostess Brands manufacturing facility initially will restore 200 of the over 400 jobs
lost due to bankruptcy. Pratt & Whitney will expand its operations in Columbus, initially adding 45 jobs. Kia’s network of
suppliers will continue to expand. And, despite tight defense budgets, defense contractors gradually will move to the
Columbus region to be near their major customer.
It helps that the housing bust was not too severe in Columbus, but by the same token the housing recovery is not too
strong. Nonetheless, more stable home values over the course of the business cycle did less damage to households’
wealth and confidence, which should help in terms of new business formation and consumer spending. Lackluster
expectations for the region’s housing recovery also reflects expectations that the robust population growth that
accompanied Fort Benning’s expansion will slow dramatically over the next several years.
Macon
On an annual average basis, Macon’s total employment will rise by 0.8 percent in 2014, or by 800 jobs. The forecast
calls for twice as many new jobs in 2014 than the area added in 2013. Macon's economy will benefit from its focus on
transportation and logistics, financial activities, higher education, healthcare, and professional and business services.
Macon is not overly exposed to the restructuring of the government sector. And, the Macon MSA is no longer overly
dependent on manufacturing.
22
Macon’s role as a regional retail trade center will be an advantage in 2014. Macon’s central location makes the area a
good place to host statewide meetings or conventions, but the region has yet to fully develop this advantage.
Nonetheless, the hospitality industry will be a positive force for growth in 2014. One potential problem for Macon is that
the number of young adults and middle-aged adults is declining.
Macon is located strategically at the intersection of I-75 and I-16, has two railroad lines, and a good airport that is used
by local residents as well as others from throughout much of South Georgia. The MSA’s role as a remote bedroom
community for the southern portion of the Atlanta MSA will expand, further stimulating the economic development of
Macon’s northern suburbs. Atlanta’s economic recovery therefore will benefit Macon in 2014. The driving time to
Atlanta's Hartsfield-Jackson International Airport from downtown Macon is no greater than from the northern portions of
the Atlanta MSA. So, Atlanta becomes more congested, sites in Macon will become very attractive to both private
businesses and state government operations. The city’s expansive historic district, places of special interest, and
revitalization efforts have turned Macon into an even more attractive hub for business.
Savannah
In 2014, Savannah’s employment will rise by 1.6 percent, or 2,400 jobs. The multiple personality: that of a major tourist
attraction, an aerospace manufacturing center, a modern – extraordinarily successful – deepwater port, and a regional
hub for health and educational services makes up the grounds for Savannah's continuing success. Although the metro
area was hard hit by the housing bubble, it was not very exposed to the restructuring of the information or the financial
activities industries. Savannah will benefit from the expansion of the film industry. It’s worth noting that Savannah is not
too exposed to the restructuring of the government sector.
Savannah’s long-term growth prospects are among the best in the nation. Savannah's unique ambiance and
transportation infrastructure make it both an attractive place to live and do business. Visitors are drawn to the thriving
historic district, and waterfront developments. Retirees will continue to be an important forces powering and
diversifying the region’s economic development, but the Savannah area will benefit from the fact that its population is
increasing for all age groups. Gulfstream Aerospace also is a very powerful driver of the metro area’s economy,
providing thousands of high-quality jobs.
Savannah's destiny is becoming a premier destination for national conventions, trade shows, and meetings. Tourism
and convention business will continue to be one of the fastest growing sectors of Savannah's economy, reflecting
substantial investments in the area's infrastructure, including a large number of new well-situated hotels as well as the
Savannah International Trade and Convention Center on Hutchinson Island.
Closing
Georgia is making progress. It helps that the nation is continuing its economic recovery, even if it’s slow. It helps that
the Georgia’s political leaders enacted some changes to make our state more competitive. We are landing big
economic development projects again. And, it helps tremendously that housing is recovering. People are moving
again, which bodes well for Sunbelt states that attract retirees. GA will outperform the nation in 2014. But, to
outperform the average state by the large margins that Georgia got used to in the 1970s, 80s, and 90s, Georgia can
improve its competitiveness by expanding improvement to areas beyond our tax structure and our economic
development policies – such as K-12 education. That will go a long ways towards assuring that Georgia’s economic
performance is once again among the best in the country.
23
9
The Savannah Outlook: 2014
Fuller E. Callaway Professor of Economics
Center for Regional Analysis, Department of Economics
Armstrong Atlantic State University
Michael J. Toma
The Savannah metro area economy expanded very slowly through the first half of 2013, but began to accelerate modestly during
the latter portion of the year. The uptick in the tempo of growth in the second half establishes momentum that is likely sustainable
into early 2014 will help Savannah’s economy post better figures for 2014 than 2013. While 2014 is unlikely to be a break-out
year, regional growth is expected to be slightly above the typical pace for Savannah in recent years. This improvement locally will
take place within the context of growing strength in the state and U. S. economy.
The underlying diversification of the region’s economy contributes to its economic stability and vitality. For 2014, strength in
business services, tourism, and manufacturing, along with increasing strength in port operations and the housing market should
set the stage for above-average employment and economic growth.
The diversification of the regional economy is provided by the strength of its underlying economic drivers that are (in no particular
order) manufacturing, the port, tourism, health care, the military, and real estate development. Each of these facets of the
regional economy will be discussed after the presentation of a general economic forecast for the region in 2014.
General Conditions and Forecast
The Center for Regional Analysis at Armstrong Atlantic State University produces the quarterly publication, Economic Monitor,
that analyzes current economic conditions in the Savannah MSA (Chatham, Bryan, and Effingham counties), and presents short
term forecasts for the area (available at www.armstrong.edu/economic_monitor). Following the severe recession of 2007-2009,
the Coastal Empire leading index of economic activity for the region stabilized late in 2009, beginning an upward trend in 2010
that has continued into late 2013 with a few temporary hiccups along the way.
The Coastal Empire Coincident Economic Index increased by approximately 0.6% in 2013, based on data through the third
quarter, slipping well below the 2% gain posted for 2012. The coincident index of economic activity is designed to measure the
regional economic “heartbeat” based on numerous factors characterizing important facets of the Savannah area economy.
One of the coincident factors is nonagricultural employment in the MSA. The employment base started the year relatively strong
and then faded somewhat toward the end of the year. By November 2013, employment growth was strong in the service sector,
with leisure and hospitality and retail trade leading the gains and education/health offering some modest support. On the goodsproducing side of the economy, construction shed several hundred workers, but manufacturing held steady.
The increase in retail trade and leisure/hospitality employment reflects the solid gains in the regional tourism sector which has
recorded better than 10% over-the-year growth. In reaction to increased tourism, businesses serving that sector ramped up
employment along with retailers. In 2012 employee productivity in retail substantially increased while firms were slow to hire,
eventually, however, more workers were added to staff at year-end. This hiring momentum carried forward into the first half of
2013.
The remaining coincident indicators (port activity, electricity sales, consumer confidence, airport boardings) were improved. Port
activity started the year with modest growth, facing headwinds from slack growth in Europe and Asia, but picked up strength as
the year progressed. At year-end, activity is roughly 6 percent of comparable data from the second half of 2012. Electricity sales,
24
which are a broad indicator of general growth in residential, commercial and industrial activity, increased nearly 5 percent from
previous year data. Substantial increases in consumer confidence, which spurs additional tourism and consumer expenditure,
will support further growth in retail trade in 2014.
The Coastal Empire Leading Economic Index increased at a solid pace through the third quarter of 2013. Since the end of 2012,
the forecasting index increased 3%, and is accelerating as 2013 closes. Continued healing in the regional housing and labor
markets occurred in 2013. Building permit issuance for single family homes is up over 20% from 2012, and this should lead to
increased hiring in the construction sector in 2014. Further, in the labor market, initial claims for unemployment insurance fell to
five-year lows toward the end of the year. Together with improved consumer expectations, these forward-looking indicators
suggest 2014 will be a better year than 2013. Furthermore, given the growing base of strength in the region’s bedrock sectors in
the second half of 2013, 2014 should shape up to be a better than average year. Not a break-out year, but one of above average
growth.
In 2014, employment in the Savannah metro area is expected to increase by roughly 1.5% to 2%. While this is well below the
rapid 2.75% pace of growth set in the mid-2000s before the recession, it is much more sustainable as compared to the prerecession growth fueled by easy money and a nationwide housing boom. In fact, growth in the range of 2% is only modestly
higher than the typical pace set in the extended period of growth from 1991 to 2001. While that period was not marked by rapid
expansion, it was a period of solid, sustainable, albeit slower, growth. In other words, the new normal is much like the old normal,
and 2014 is likely to just outpace the old normal. In other words, respectable and likely sustainable growth is expected through
2014. The pace of employment growth will further reduce the unemployment rate to about 7.1% for the year, and it is possible
the regional unemployment rate could break below 7% toward year-end.
Turning to population growth, the region’s long-run attractiveness as a place to live, work, and retire remains unaffected by shortrun business cycles. Tourist demographics (12 million annual visitors) describe a very desirable pool of would-be in-migrants.
The typical Savannah tourist is well-educated, has above-average income, and is beginning to approach retirement age. Modest
housing market recovery in the Northern and Midwestern markets that feed Savannah’s in-migration should begin to influence
population growth in the short and long-run. For 2013, population growth is expected to be approximately 2%, roughly the same
as the usual pace of growth since 2000.
In conclusion, the Coastal Empire Coincident Economic Index indicates the regional economy has been expanding for nearly
four years, more recently at an increased pace. The regional forecasting index is sending the message of continuing and
increasing growth for 2014. Current drivers in the economy are the strength in tourism, port activity, manufacturing, and
consumer spending, while construction will play a support role. Economic expectations for the year are modest, but are expected
to exceed the performance of 2013 and resemble the typical rate of growth experienced in the years prior to the housing boom of
the mid-2000s.
Economic Foundations
The remainder of the forecast considers expected activity in the six major underlying economic foundations of the Savannah
MSA economy. Recall that these drivers are (in no particular order) manufacturing, the port, tourism, health care, the military,
and real estate development.
Manufacturing
The metro Savannah area’s show-case manufacturers have continued to show resilience and strength in 2013. Mitsubishi Power
Systems expects to expand to 500 employees. JCB reports a 50% increase in units sold and a 55% increase in revenue in a
market that contracted by 10% in the previous year. Portuguese manufacturer EFACEC continued to reflect its status as a world
leading manufacturer by completing a record setting power transformer. Weighing 804,000 pounds, it is the largest transformer
made in the U.S. in over two decades. EFACEC currently employs roughly 400 people and has plans to hire another 200.
Meanwhile, Gulfstream was setting a record of its own with its new G650 model business jet. The G650 established a world
record time circling the globe for an aircraft in its class with an average speed of almost 570 mph.
The Savannah area shows great potential for foreign investment. Israeli manufacturer Caesarstone broke ground on a new plant
in Richmond Hill in November. The plant is expected to create 180 new jobs. The Korean tire distributer Hankook Tire has leased
500,000 square feet in the Tradeport East Business Center in Liberty county and is expected to create 50 jobs within three
25
months of opening. Indian movie production firm Medient Studios broke ground on its Effingham county facilities and plans to be
up and running in the first quarter of 2014.
Overall, 2013 reflected a year of strength for major manufacturers and proved to be a fertile year for the plating of new
manufacturing seeds of activity in the region. There is little reason to doubt this trend will be reversed in 2014.
The Ports
Georgia Ports Authority handled 2.9 million TEUs of throughput in FY2013, the second busiest year on record. The ports showed
strong growth as the 2013 calendar year came to an end with a 6.6% increase in TEUs for the month of November as new
customers and national economic growth bolstered throughput.
Notable developments that should further enhance port operations in 2014 include the appointment of Savannah as the primary
port in the Southeast U.S. of the new P3 alliance. P3 is a new vessel-sharing agreement between the world's three largest
shipping lines that includes Maersk Line, Mediterranean Shipping Co., and CMA CGM. The alliance will launch in spring 2014,
pending regulatory approval. Second, continued strong growth in the refrigerated market with the expansion of Nordic/Georgia
cold storage reflects Savannah’s continued increasing role in that growing segment of the market. Third, overall market strength
in all key geographic sectors is expected that will yield further increases in Savannah's port related economic impacts.
The Savannah Harbor Expansion project made crucial strides forward in 2013. In October, Congress allocated $461 million for
the deepening of the port. Deepening the harbor allows the Savannah port facilities to compete for the larger cargo ships able to
pass through an expanded Panama Canal. Retaining competitive port infrastructure is an important factor in providing economic
growth for the area into the future. Political support for the project by Vice President Biden who emphatically spoke of the
importance of deepening the channel and the political will to secure federal funding for the project.
Tourism
The leisure and hospitality sector continued to grow in 2012 with a 200,000 increase in overnight person-stays as compared to
2011. This spurred employment increases numbering about 1,200 to 22,600 total employees in 2012 and that carried forward
into 2013. Direct spending by 12 million visitors increased by $160 million over the previous year, thus strengthening the retail
market and supporting continued growth in higher-end boutique shops. Special interest tourism activities in Savannah such as
visiting historic places, seeing cultural attractions, and enjoying exceptional culinary experiences highlight the Savannah
experience. Tourism remains one of Savannah’s largest sectors and approximately one in seven workers in the Savannah area
has a job in a tourism-related industry.
Health Services
Although the regional health care sector shed 500 workers to stand at 23,800 in 2013, the sector has been a shining economic
star since 2007. The sector recorded employment growth of 7.8%, far exceeding growth in any other major subsector during a
particularly difficult recession and into the post-recession period of recovery. The health sector continues to be a vital component
of the area’s economy and growth prospects in the short and long run.
The two largest hospital groups in the region, Memorial University Medical Center and St. Joseph’s/Candler, have both
announced or undergone expansion projects in 2013. In April, Memorial unveiled renovations on their pediatric intensive care
unit as well as The Children’s Hospital Outpatient Center. Further, in December, Memorial announced a partnership with Novant
Health that would establish The Children’s Hospital of Savannah, a freestanding children’s hospital, bringing multiple related
specialties into one location, a $28 million project.
St. Joseph’s/Candler is currently renovating its facilities. A $15 million renovation of St. Joseph’s hospital in southside Savannah
is currently underway and on schedule to meet its summer 2014 completion date. The hospital is being updated to provide more
energy efficiency, improve its layout, and improve its durability to extreme weather conditions. In addition to its renovations, St.
Joseph’s Hospital also received full accreditation for its Chest Pain Center from the Society of Cardiovascular Patient Care in
February 2013.
26
Military
Fort Stewart and Hunter AAF employed 28,872 total employees in 2013, of which 4,637 were civilians. Civilian employees on
base earned a total payroll of $117.5 million in 2012. Total payroll for both bases was $1.4 billion. With its annual financial impact
of $5.6 billion, Fort Stewart and Hunter AAF continue to play a central role in the CMSA economy as well as helping to stabilize
employment through a period of modest economic recovery.
In November, 2,000 soldiers returned to Fort Stewart from a combat rotation supporting Operation Enduring Freedom.
Withdrawal of combat units from Afghanistan leaves the 3rd infantry division with no scheduled deployments. The regional
economy, particularly that of Liberty County and Bryan County, along with southern/western Chatham County should benefit
from increased trade while the division remains at home.
Real Estate
While the market for residential real estate remains well-below the unsustainable pace of the mid-2000s, sales of single family
homes in the Savannah MSA surpassed 500 per month in July of 2013, the highest level since July 2007. Chatham County’s
median home price remains low as compared to past years - $170,000. Average home sale prices in the Savannah MSA
reached $203,400 in 2013, leaving the Savannah market competitive with other port cities as well as other metropolitan areas
around the country. The Savannah market is in the most affordable third of national housing markets, ranking 656 of 1,997
according to Coldwell Banker. A total inventory of 3,541 houses existed on the market as of November 2013.
Several notable residential developments were completed or broke ground in 2013. The Avenues on 61st on Abercorn Street and
the newly started One Victory West multi-unit complexes marketed to the college student population will significantly contribute to
the rental market in Savannah. Further, other developments are planned or are under construction in mid-town, West Chatham,
Pooler, and the southside.
The metro area office market has few notable developments anticipated for 2014. The vacancy rate remains at approximately
21% and is expected to remain stable through 2014 along with rental rates.
Commercial development activity is improving in the Savannah area. Development of Market Walk near Oglethorpe Mall
continues. This will yield a 117,000 square foot Kroger upon completion and will include a 55,000 square foot home for a big box
retailer on the 24 acre site. In Pooler, the million square foot Outlet Mall of Georgia project broke ground, and will continue under
construction into early 2015. A nearby waterpark is slated to open in mid-2014.
Conditions in the industrial market continue to improve. The vacancy rate has dropped to 11% and increasing interest in space is
being expressed by both local and out-of-town clients. Several smaller-scale speculative developments are likely to break ground
in 2014 in what is seen as a positive development for market. Previous delivery of speculative industrial, warehousing, and
distribution space had spiked vacancy rates to nearly 20% as recently as 2010. Absorption over the years has drawn down
inventory and is thus spurring some reasonable speculative interest.
27
28
Contents
ABOUT THE DATA (See Note Below)
Welcome to Savannah
Savannah Quick Facts
Featured Speakers
2012 Forecasts:
United States and Georgia
Terry College of Business, University of Georgia
Savannah MSA
Center for Regional Analysis, Department of Economics, Armstrong Atlantic State University
Economic Trends: Savannah
Compiled by the Center for Regional Analysis at Armstrong Atlantic State University
Economy
Gross Regional Product
Demographics
Employment
Population
Household Income
Industry
Construction
Health Care
Major Employers and Major Manufacturers
Military
Real Estate
Tourism
Infrastructure
Education
Port of Savannah: Georgia Ports Authority
Small Business Investment and Development
Taxes
Transportation: Roads, Rail, Water, Air
Utilities
Other
Workforce Development
Savannah Economic Trends
NOTE: ABOUT THE DATA
This report was updated by the Center for Regional Analysis at Armstrong Atlantic State University. The Center
(http://www.econ.armstrong.edu/cra/index.html) meets the applied research needs of Savannah's business and community organizations.
Areas of concentrated research include regional economic forecasting, economic impact analysis, economic development and business
expansion, tourism development, survey-based research, and specialty reports on topics of state, regional and local interest. The Center's
activities are intended to appeal to a broad range of constituencies, and the Center stands ready to enter into cooperative partnerships with
public, private, and community organizations.
The City of Savannah (78.1 square miles) is located in Chatham County, which lies south of the Savannah River,
Data
this reportbetween
are collected
from Carolina
public sources
generally
lag Savannah
anywhere from
one to two years
behind Area
the date
the report is
the for
boundary
South
and and
Georgia.
The
Metropolitan
Statistical
comprises
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
Chatham, Bryan and Effingham counties. Liberty and Long counties complete the geographic boundary of the
data may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis
Savannah/Hinesville/Ft.
Stewart
Combined
MSAto (CMSA).
Primary available,
Trade Area,
a designation
that for
and
the Savannah Chamber have
made
every attempt
provide theThe
mostSavannah
reliable information
they cannot
be held liable
informs
linkages
in
population
and
shopping
trends,
includes
Beaufort
and
Jasper
counties
in
South
Carolina.
omissions or inaccuracies.
This report is published by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
information and analysis provided in this annual update. This edition was published January 2014.
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
Savannah Area Chamber of Commerce
2014 Economic
Trends of Commerce
Savannah
Area Chamber
2014 Economic Trends
5
1
29
Contents
Economy: Gross Domestic Product
ABOUT THE DATA (See Note Below)
Welcome
Savannah Product in Savannah increased $580 million (4.8%) from 2011 to 2012; the fastest among the
GrosstoDomestic
Savannah Quick Facts
Georgia metropolitan areas measured by the Department of Commerce’s Bureau of Economic Analysis. At just over
$14.1 Speakers
billion, Savannah’s GDP remains the state’s third largest, behind only Atlanta and Augusta. Economic activity
Featured
generated
by Savannah’s private sector industries measured $11.5 billion in 2012 and accounted for 82% of the
2012
Forecasts:
United
States
and 2010
Georgia
economy from
to 2012.
Terry College of Business, University of Georgia
Savannah
MSA
GDP ($millions)
2011 – 12
Growth
Center for Regional Analysis, Department of Economics, Armstrong
Atlantic State University
Change
2010
Rank
MSA
2011
2012
$
$
13,530
$
14,110
Savannah
13,024
4.8%
Economic 1
Trends: Savannah
$
271,390
$
282,505
$
294,589
2
Atlanta-Sandy
Springs-Roswell
3.8%
Compiled by the Center for Regional Analysis at Armstrong Atlantic State University
$
5,107
$
5,286
$
5,478
3
Dalton
3.4%
Economy
$
19,440
$
20,204
$
20,828
4
Augusta-Richmond
County
2.9%
Gross Regional Product
$
6,538
$
6,635
$
6,839
5
Athens-Clarke County
2.3%
Demographics
$
4,826
$
4,879
$
5,024
Employment
6
Albany
2.2%
Population
$
11,822
$
12,438
$
12,756
7
Columbus
1.5%
Household
$
7,662
$
7,905
$
8,078
8 IncomeMacon
0.9%
Industry 9
$
6,281
$
6,441
$
6,534
Warner Robins
0.7%
Construction
$
6,376
$
6,836
$
6,850
10
Gainesville
-0.1%
Health Care
Major
Employers
and
MajorU.S.
Manufacturers
Source:
Bureau
of Economic
Analysis,
Department of Commerce, Gross Domestic Product by Metropolitan Area
(http://www.bea.gov/iTable/index_regional.cfm/
verified on 10-21-2013)
Military
Real Estate
A Tourism
diverse mix of industries, busy ports and strategically networked transportation, logistics, energy and
Infrastructure
communications infrastructures create a business climate in Savannah that is unmatched in many larger cities.
Education
Port of Savannah: Georgia Ports Authority
Small Business Investment and Development
Taxes
Transportation: Roads, Rail, Water, Air
Utilities
Other
Workforce Development
NOTE: ABOUT THE DATA
This report was updated by the Center for Regional Analysis at Armstrong Atlantic State University. The Center
(http://www.econ.armstrong.edu/cra/index.html) meets the applied research needs of Savannah's business and community organizations.
Areas of concentrated research include regional economic forecasting, economic impact analysis, economic development and business
expansion, tourism development, survey-based research, and specialty reports on topics of state, regional and local interest. The Center's
activities are intended to appeal to a broad range of constituencies, and the Center stands ready to enter into cooperative partnerships with
public, private, and community organizations.
Data for this report are collected from public sources and generally lag anywhere from one to two years behind the date the report is
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
dataSource:
may Bureau
not accurately
theU.S.
economic
challenges
that
businesses
and residents
faceArea
currently. While the Center for Regional Analysis
of Economicreflect
Analysis,
Department
of Commerce,
Gross
Domestic Product
by Metropolitan
Trade” is suppressed
avoid the
disclosure
confidentialtoinformation.
and“Wholesale
the Savannah
Chamber tohave
made
everyof attempt
provide the most reliable information available, they cannot be held liable for
(http://www.bea.gov/iTable/index_regional.cfm/ verified on 10-21-2013)
omissions
or inaccuracies.
measure
of Savannah
the market
of final
goods and
produced
within
metropolitan
areaGeorgia
in a
ThisGDP
reportisisthe
published
by the
Areavalue
Chamber
of Commerce,
101 services
East Bay Street
(31401),
P.O. aBox
1628, Savannah,
31402-1628,
The It
Chamber
to thank the many
Savannah
businessesactivity
and organizations
contributed
particular912.644.6400.
period of time.
is the would
most like
comprehensive
measure
of economic
provided that
by the
Bureautoofthe
information
andAnalysis
analysis provided
in thisDepartment
annual update.
edition was published January 2014.
Economic
of the U.S.
ofThis
Commerce.
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
30
Savannah Area Chamber of Commerce
2014 Economic
Trends of Commerce
Savannah
Area Chamber
2014 Economic Trends
6
1
Contents
Demographics: Employment (By Place of Residence)
ABOUT THE DATA (See Note Below)
Welcome
to Savannah
Employers
in Savannah’s five-county combined metropolitan statistical area have access to a diverse labor force of
Savannah Quick Facts
approximately 214,000 qualified, talented workers. The area’s universities, technical colleges and Workforce Investment Board
programs
offer Savannah-area employers and students an excellent selection of educational and training resources to meet
Featured
Speakers
their
current
and future needs.
2012 Forecasts:
United States and Georgia
Employment
in theof last
few years
in the ofSavannah
Terry College
Business,
University
Georgia MSA and CMSA has been affected by the nation’s modest economic
recovery. CMSA
Savannah
MSA labor force employment decreased in 2013 (annualized, based on YTD through October) by 495 jobs. This is
a 0.25%
decrease
in CMSA
employment.
Fromof2012
to 2013,Armstrong
the MSA experienced
a decrease
Center
for Regional
Analysis,
Department
Economics,
Atlantic State
Universityof 78 jobs, a 0.05% decrease.
Economic
Trends:
Savannahrate decreased from 8.3% in 2012 to an annual rate of 7.8% in data available through October
Savannah’s
unemployment
Compiled
by
the
Center for Regional Analysis at Armstrong Atlantic State University
2013.
Economy
Gross Regional Product
Demographics
Employment
Population
Household Income
Industry
Construction
Health Care
Major Employers and Major Manufacturers
Military
Real Estate
Tourism
Infrastructure
Education
Port of Savannah: Georgia Ports Authority
Small Business Investment and Development
Taxes
Transportation: Roads,
Rail,
Air of Labor, Bureau of Labor Statistics, “Local Area Unemployment Statistics” and
Source:
U.S.Water,
Department
Armstrong Center for Regional Analysis. 2013 is annualized average of seasonally adjusted data through October.
Utilities
Other
Workforce Development
NOTE: ABOUT THE DATA
This report was updated by the Center for Regional Analysis at Armstrong Atlantic State University. The Center
(http://www.econ.armstrong.edu/cra/index.html) meets the applied research needs of Savannah's business and community organizations.
Areas of concentrated research include regional economic forecasting, economic impact analysis, economic development and business
expansion, tourism development, survey-based research, and specialty reports on topics of state, regional and local interest. The Center's
activities are intended to appeal to a broad range of constituencies, and the Center stands ready to enter into cooperative partnerships with
public, private, and community organizations.
Data for this report are collected from public sources and generally lag anywhere from one to two years behind the date the report is
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
data may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis
and the Savannah Chamber have made every attempt to provide the most reliable information available, they cannot be held liable for
omissions or inaccuracies.
This report is published by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
information and analysis provided
in this annual update. This edition was published January 2014.
Source: U.S. Department of Labor, Bureau of Labor Statistics, “Local Area Unemployment Statistics” and
Armstrong Center for Regional Analysis. 2013 is annualized average of seasonally adjusted data through October.
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
Savannah Area Chamber of Commerce
2014 Economic
Trends of Commerce
Savannah
Area Chamber
2014 Economic Trends
7
1
31
Contents
Employment
(By
ABOUT
THE DATA (See
NotePlace
Below) of Work)
By Sector
Welcome
to Savannah
Savannah Quick Facts
The Savannah MSA workforce increased 0.8% from 2012 to 158,300. Several sectors experienced significant
Featured
growthSpeakers
in 2013, reflecting modestly improving general business conditions in the region: financial activities (+900
2012 Forecasts:
jobs, 17.9% growth), leisure and hospitality (+1,900 jobs, 9.4% growth), transportation and utilities (+900 jobs, 8.9%
United States and Georgia
growth),
retail trade
(+ 1,500,
8.9% growth),
and manufacturing (+1,000 jobs, 7.1% growth).
Terry College
of Business,
University
of Georgia
Savannah MSA
Registering
smallAnalysis,
increases
or decreases
in the past
year were
construction
and information. These industries
Center for very
Regional
Department
of Economics,
Armstrong
Atlantic
State University
experienced changes of less than 200 jobs. Financial sector activity nearly recovered to pre-recession level this
Economic
year andTrends:
was Savannah
the industry with the largest percentage employment growth. Education and health services,
Compiled by the Center for Regional Analysis at Armstrong Atlantic State University
wholesale
trade,
and other services experienced the largest job losses.
Economy
Gross Regional Product
Employment in the public sector was mixed. Federal government showed relatively minor decreases from 2012 to
Demographics
Employment
2013,
losing 300 jobs while state and local government employment increased by 1,200 jobs. With the national
Population
economic
recovery closing government deficits, net government employment in the area increased by 900 jobs.
Household Income
Industry
Employment
– Annual Averages Savannah MSA
Construction
Change
Change
Health Care
2012
2013 2007-13
2012-13
Industry
2007
2008
2009
2010
2011
Major Employers and Major Manufacturers
Total
Nonfarm*
162,200
160,100
151,800
151,900
152,300
157,000
158,300
-2.4%
0.8%
Military
Construction
&
Mining
9,900
8,900
7,300
6,200
5,900
5,700
5,500
-44.1%
-2.9%
Real Estate
Manufacturing
14,900
14,900
14,000
13,700
14,200
14,500
15,500
4.2%
7.1%
Tourism
6,600
6,600
5,700
5,700
5,600
5,800
Wholesale Trade
5,600
-15.3%
-3.6%
Infrastructure
18,300
18,200
17,000
17,300
17,500
17,300
Retail
Trade
18,800
2.9%
8.9%
Education
Port of Savannah:
Georgia Ports Authority
10,800
10,900
10,100
9,900
9,900
10,000
Transportation
& Utilities
10,900
0.8%
8.9%
Small
Business
Investment
and
Development
1,700
1,600
1,500
1,500
1,500
1,600
Information
1,400
-17.6%
-12.4%
Taxes
6,100
6,100
5,700
5,500
5,100
5,000
Financial Activities
5,900
-3.4%
17.9%
Transportation: Roads, Rail, Water, Air
20,200
18,400
16,500
17,500
17,300
17,800
Professional
&
Business
Services
18,100
-10.3%
1.7%
Utilities
22,100
22,000
22,500
23,600
24,100
24,300
Education & Health Services
23,900
8.2%
-1.6%
Other
20,800
20,500
19,900
20,000
20,300
20,400
Leisure
& Hospitality
22,300
7.3%
9.4%
Workforce
Development
8,000
7,800
7,200
6,800
6,900
6,900
Other Services
6,600
-17.4%
-4.2%
NOTE:
ABOUT–THE
DATA
2,900
2,900
3,000
3,200
3,200
3,100
Government
Federal
2,800
-0.9%
-7.3%
18,800
20,000
20,300
19,900
19,600
19,600
Government – State & Local
20,800
10.7%
6.2%
U.S. Department
of Labor, Bureau
LaborCenter
Statistics, State
Area Employment,
Hoursat
and Earnings
(2013 data
are annualized
adjustedThe Center
ThisSource:
report
was updated
by ofthe
for and
Regional
Analysis
Armstrong
Atlantic
Stateseasonally
University.
through November.) Retrieved at www.bls.gov on 12-21-2013.
(http://www.econ.armstrong.edu/cra/index.html)
meets the applied research needs of Savannah's business and community organizations.
* NOTE: BLS data are benchmarked annually; data for 2008-2013 have been updated to reflect these changes.
Areas
of concentrated research include regional economic forecasting, economic impact analysis, economic development and business
expansion, tourism development, survey-based research, and specialty reports on topics of state, regional and local interest. The Center's
Where
JobstoAre
activities
arethe
intended
appeal to a broad range of constituencies, and the Center stands ready to enter into cooperative partnerships with
public, private, and community organizations.
Five industries make up similar portions of total employment in the Savannah MSA, further attesting to the area’s
Data
for this diverse
report areindustry
collected mix:
from retail
public sources
and generally
lag anywhere
one to services
two years (11.4%),
behind theeducation
date the report
healthy,
trade (11.9%),
professional
and from
business
and is
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
health services (15.1%), leisure and hospitality (14.1%), and state/local government (13.1%). Manufacturing
data may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis
for 9.8%
of thehave
area’s
jobs,
upattempt
last year
from 9.5%.
andaccounts
the Savannah
Chamber
made
every
to provide
the most reliable information available, they cannot be held liable for
omissions or inaccuracies.
This report is published by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
information and analysis provided in this annual update. This edition was published January 2014.
Additional
resources
and contact
information are available on the Chamber’s Web site: www.savannahchamber.com.
Savannah
Area Chamber
of Commerce
2014 Economic Trends
32
Savannah Area Chamber of Commerce
2014 Economic Trends
8
1
Contents
Employment
ABOUT
THE DATA (See Note Below)
& Wagesto Savannah
Welcome
Savannah Quick Facts
From 2011 to 2012, the average weekly wage in Savannah increased 1.7%. Across all industries in the region, employees
Featured
Speakers
earned $776
per week. In the Savannah metro area in 2012, weekly wages were $114 lower than those statewide. The
2012
Forecasts:
percentage gap between wages in Savannah and the state increased between 2011 and 2012, increasing to a 12.8% gap
United
States
Georgia year.
from
12.0%
in and
the previous
Terry College of Business, University of Georgia
Savannah MSA
In three sectors of the regional economy, manufacturing, agriculture, and health care, weekly wages in the region exceeded
Center for Regional Analysis, Department of Economics, Armstrong Atlantic State University
weekly pay for the state as a whole. Weekly wages in state and local government also exceeded the state average. Weekly
pay
in all other
sectors
was below the state average.
Economic
Trends:
Savannah
Compiled by the Center for Regional Analysis at Armstrong Atlantic State University
Although
Economywage gains in 2012 were modest, the purchasing power of those wages is enhanced due to the relatively low cost of
livingGross
and housing
the region. This, combined with Savannah’s high quality of life, implies that workers and employers
Regional in
Product
continue
to receive a high return on value for area wages.
Demographics
Employment
Population
Household&Income
Employment
Earnings
Industry
Yearly
Average, 2012
Construction
Average Weekly Wages
Savannah MSA
Health Care
Major Employers and Major Manufacturers
Savannah
Number of
Military
Industry
MSA
Georgia
Employment
Establishments
Real Estate
Tourism
Construction
$804
$918
5,236
747
Infrastructure
Manufacturing
$1,420
$1,019
15,055
245
Education
Wholesale Trade
$1,098
$1,338
4,945
444
Port of Savannah: Georgia Ports Authority
Retail
Trade
$500
$512
17,838
1,336
Small Business Investment and Development
Transportation
and Warehousing
$716
$978
9,923
451
Taxes
Transportation: Roads, Rail, Water, Air
Utilities
$1,491
$1,563
468
19
Utilities
Information
$936
$1,609
1,396
115
Other
Finance and Insurance
$1,131
$1,482
3,365
504
Workforce Development
Real Estate and Rental and Leasing
$626
$948
1,880
400
Professional,
$1,032
$1,468
4,685
855
NOTE:
ABOUTScientific/Tech
THE DATA Services
Education Services
$834
$907
3,753
75
This
report
wasSocial
updated
by the Center for $888
Regional Analysis
Health
Care and
Assistance
$875 at Armstrong Atlantic
18,529 State University.800The Center
(http://www.econ.armstrong.edu/cra/index.html)
meets $434
the applied research
business and community
Arts, Entertainment and Recreation
$609 needs of Savannah's1,946
114organizations.
Areas
of
concentrated
research
include
regional
economic
forecasting,
economic
impact
analysis,
economic
development
and business
Accommodation and Food Services
$320
$327
19,316
1,021
expansion, tourism development, survey-based research, and specialty reports on topics of state, regional and local interest. The Center's
Other Services
(except
Public Admin.)
$589
696
activities
are intended
to appeal
to a broad range of constituencies,
and$602
the Center stands ready 4,190
to enter into cooperative partnerships
with
Government
– Federal
$1,276
$1,326
3,183
90
public,
private, and
community organizations.
Government – State
$856
$781
5,138
106
Data
for
this
report
are
collected
from
public
sources
and
generally
lag
anywhere
from
one
to
two
years
behind
the
date
Government – Local
$749
$710
14,206
57 the report is
produced.
Most
data
in
this
year’s
report
are
annual
figures
for
2012,
the
latest
year
available,
and
some
may
end
at
2011
or earlier. This
ALL INDUSTRIES
$776
$890
148,221
9,201
data
may
not
accurately
reflect
the
economic
challenges
that
businesses
and
residents
face
currently.
While
the
Center
for
Regional
Analysis
Source: Georgia Department of Labor, Workforce Information and Analysis, Georgia Employment and Wages, 2012 Averages
and
the Savannah
Chamber
have made every attempt to provide the most reliable information available, they cannot be held liable for
Retrieved
at www.dol.state.ga.us
on 11-11-2013.
omissions or inaccuracies.
This report is published by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
information and analysis provided in this annual update. This edition was published January 2014.
Additional
and contact
information are available on the Chamber’s Web site: www.savannahchamber.com.
Savannahresources
Area Chamber
of Commerce
2014 Economic Trends
Savannah Area Chamber of Commerce
2014 Economic Trends
9
1
33
Contents
Demographics: Population
ABOUT THE DATA (See Note Below)
Dynamic
population growth, a robust business climate, and a thriving artistic and cultural community come together
Welcome
to Savannah
Savannah
Quick
to create
theFacts
highest quality work and home environments in Savannah, one of the nation’s loveliest and most
historic port cities. Savannah’s allure has been recognized nationally by USA Today as one of “America’s Top 10
Featured Speakers
Waterfronts,” the “Best City for Affordable Getaway” as well as one of “America’s Best Cities” by Travel + Leisure
2012 Forecasts:
and received
“Reader’s Choice Award” from ConventionSouth Magazine as well as the Pinnacle Award of
United
States andthe
Georgia
Excellence
fromof“Successful
Meetings.”
Terry College
Business, University
of Georgia
Savannah MSA
Center for
Regional Analysis,
DepartmentGrowth
of Economics, Armstrong Atlantic State University
Growing
Population
Spurs Economic
Savannah’s local market region extends in a 40-mile radius from its historic downtown. Commuters, shoppers,
Economic Trends: Savannah
students,
visitors, and others are economically and socially linked in a primary trade area that includes Liberty and
Compiled by the Center for Regional Analysis at Armstrong Atlantic State University
Long
counties
in the Hinesville/Ft. Stewart MSA and portions of Beaufort and Jasper counties in South Carolina.
Economy
Gross Regional Product
Demographics
Chatham County, with more than 275,000 residents is the fifth most populous county in Georgia and serves as the
Employment
economic
hub of the region. Furthermore, over 635,000 people now live, work, and shop in the Savannah Primary
Population
Trade Area, which from 2000 to 2012, added about 10,900 net new residents a year. Long County grew fastest in
Household Income
2012 (+5.6%), while Chatham County added the most people (4,538). All counties experienced a positive growth in
Industry
population
in 2012.
Construction
Health Care
Chatham
County and
continues
to be the most densely populated county, with 638 persons per square mile. Long
Major Employers
Major Manufacturers
County
Militaryand Jasper counties are the least densely populated counties with 38 and 39 persons per square mile
Real Estate
respectively.
Tourism
Infrastructure
Population*
Education
Savannah
MSA, CMSA, and Primary Trade Area County Estimates by the U.S. Census Bureau
Port of Savannah: Georgia Ports Authority
Land Area
Small Business Investment and Development
(square
Taxes
2000-2012
miles)
Transportation: Roads, Rail, Water, Air
/ Persons
Average
2011Utilities
Per Sq.
Annual
2012
Other
Area
2000
2009
2010
2011
2012
Mile
Growth Growth
WorkforceChatham
Development 232,048
256,992
265,998
271,896
276,434
1.6%
1.7%
426/638
Effingham
37,535
53,541
52,420
52,657
53,293
3.5%
1.2%
478/110
NOTE: ABOUT THE DATA
Bryan
23,417
32,559
30,412
31,291
32,214
3.1%
2.9%
436/72
Savannah MSA
293,000
343,092
348,830
355,844
361,941
2.0%
1.7%
1340/266
This report was updated by the Center for Regional Analysis at Armstrong Atlantic State University. The Center
(http://www.econ.armstrong.edu/cra/index.html) meets the applied research needs of Savannah's business and community organizations.
Libertyresearch61,610
62,186
65,471
0.5% development
0.1%
490/133
Areas of concentrated
include regional
economic62,773
forecasting, 65,375
economic impact
analysis, economic
and
business
Long
10,304
12,234
14,661
15,202on topics
16,048
4.6%
400/38
expansion, tourism development,
survey-based
research, and
specialty reports
of state, regional
and local5.6%
interest. The
Center's
activities are intended
to
appeal
to
a
broad
range
of
constituencies,
and
the
Center
stands
ready
to
enter
into
cooperative
partnerships
with
Savannah/
public,
private,
and
community
organizations.
364,914
417,512
426,264
436,421
443,460
1.8%
1.6%
2230/196
Hinesville/Ft. Stewart
CMSA
Data for this report are collected from public sources and generally lag anywhere from one to two years behind the date the report is
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
Beaufort (SC)
120,937
155,215
162,978
164,419
168,049
3.2%
2.2%
576/285
data may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis
Jasper
(SC)
20,678
23,221
24,945
25,330
25,833
2.1%
2.0%
655/39
and the Savannah Chamber have made every attempt to provide the most reliable information available, they cannot be held
liable for
Savannah
Primary
omissions or inaccuracies.
3461/181
506,529
595,948
614,187
626,170
637,342
2.2%
1.8%
Trade Area
Source: U.S. Department of Commerce, Census Bureau, Annual Population Estimates retrieved 12/06/2013.
ThisNOTE:
report
published
bypopulation
the Savannah
Chamber
of for
Commerce,
Street (31401), P.O. Box 1628, Savannah, Georgia
*TheisCensus
Bureau’s
estimatesArea
are revised:
numbers
previous years101
haveEast
been Bay
updated.
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
information and analysis provided in this annual update. This edition was published January 2014.
34
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
Savannah Area Chamber of Commerce
2014 Economic Trends
Savannah Area Chamber of Commerce
2014 Economic Trends
10
1
Contents
Population
ProjectedTHE
Growth
and (See
Current
AgeBelow)
Distribution
ABOUT
DATA
Note
Welcome to Savannah
Savannah’s
Projected to Grow Nearly 50%
Savannah
QuickPopulation
Facts
Population in the Savannah MSA is projected to grow 69.18%, adding more than 202,000 people from 2000 to
Featured
Speakers to a study by the Georgia Office of Planning and Budget. More than 840,000 people will call the 102030, according
2012
Forecasts:
county Coastal Region home by 2030. During this period, Chatham’s population is projected to increase by 39.67%;
United States and Georgia
BryanTerry
will College
grow byof154%;
andUniversity
EffinghamofCounty
Business,
Georgiawill jump 198%.
Savannah MSA
Center for Regional Analysis, Department of Economics, Armstrong Atlantic State University
Economic Trends: Savannah
Compiled by the Center for Regional Analysis at Armstrong Atlantic State University
Economy
Gross Regional Product
Demographics
Employment
Population
Household Income
Industry
Construction
Health Care
Major Employers and Major Manufacturers
Military
Real Estate
Tourism
Infrastructure
Education
Port of Savannah: Georgia Ports Authority
Small Business Investment and Development
Taxes
Source:Transportation:
State of Georgia Office
of Budget
Planning,
Roads,
Rail,and
Water,
Air Georgia 2030: Population Projections, retrieved 10-12-2012 at
http://www.georgialibraries.org/lib/construction/georgia_population_projections_march_2010.pdf
Utilities
Other
In theWorkforce
Savannah
MSA, 6.9% of the population is aged 5 years and younger. The Savannah MSA has many
Development
residents in their prime spending years with nearly 76% over 18 years of age, and Chatham County leads the MSA
NOTE:
ABOUT
DATA
with 76.2%
of THE
the population
over 18. Chatham County also holds the highest share of those over the age of 65:
12.6%.
This report was updated by the Center for Regional Analysis at Armstrong Atlantic State University. The Center
Population by Age Group
2010-2012
(http://www.econ.armstrong.edu/cra/index.html)
meets the applied research needs of Savannah's business
and community organizations.
Areas of concentrated research include regional economic forecasting, economic impact analysis, economic development and business
expansion, tourism development, survey-based
research,
and specialty
reports
on topics
state, regional
local interest.
The Center's
2010
- 2012 Est.
2012 Est.
Total
% 5ofyears
% 18 and
Years
% 65 Years
activities are intended to appeal to a broad
range
of
constituencies,
and
the
Center
stands
ready
to
enter
into
cooperative
partnerships
with
Area Total Population
Population
and Under
and Over
and Over
public, private, and community organizations.
Chatham
271,443
276,434
7.0%
77.6%
12.6%
Effingham
52,790
53,293
6.7%
71.9%
9.9%
Data for this report are collected from public sources and generally lag anywhere from one to two years behind the date the report is
Bryan
31,306
32,214
6.7%
71.1%
8.8%
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
Savannah
MSA challenges355,539
361,941
6.9% While the76.2%
11.9%
data may not accurately reflect
the economic
that businesses and
residents face currently.
Center for Regional
Analysis
and the Savannah Chamber have made every attempt to provide the most reliable information available, they cannot be held liable for
Savannah/Hinesville/Ft.Stewart
CMSA
436,127
442,529
7.5%
75.1%
10.9%
omissions
or inaccuracies.
This report
is published
the Savannah
Area Chamber
of Commerce, 101
East Bay Street7.2%
(31401), P.O. Box
1628, Savannah,
Savannah
PrimarybyTrade
Area
626,645
633,047
76.2%
13.7%Georgia
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
information
and analysis
providedFactfinder,
in this annual
update.
This
editionSurvey
was published
January
2014.
Source: U.S. Census
Bureau, American
2010-2012
American
Community
3-Year Estimates,
and U.S.
Census Bureau, 2012 Demographic Estimates,
retrieved 12-06-2013 at http://factfinder2.census.gov
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
Savannah Area Chamber of Commerce
2014 Economic Trends
Savannah Area Chamber of Commerce
2014 Economic Trends
11
1
35
Contents
Population
ABOUT THE DATA (See Note Below)
Distribution by Household Income and Race
Welcome to Savannah
Savannah Quick Facts
Hispanic or Latino (of any race):
Featured Speakers
MSA
2012 Forecasts:
United States and Georgia
Chatham County
Terry College of Business, University of Georgia
Effingham County
Savannah MSA
Bryan County
Center for Regional Analysis, Department of Economics, Armstrong Atlantic State University
5.2%
5.7%
3.0%
5.1%
Others:
Economic Trends: Savannah
American Indian/Alaska Native
0.3%
Compiled by the Center for Regional Analysis at Armstrong Atlantic State University
Economy
Native Hawaiian/Pac. Islander
0.1%
Gross Regional Product
Some Other Race
0.2%
Demographics
Two or More Races
1.4%
Employment
Source: U.S. Census Bureau, 2012 ACS 3-Year Survey
Population
retrieved 12/10/2013 at http://factfinder2.census.gov
Household Income
Industry
Construction
Health Care population grows, so do the incomes and benefits available to its residents. In the Savannah MSA,
As Savannah’s
Major Employers and Major Manufacturers
three-year
U.S. Census estimates show that median household income is significantly higher in Bryan County and
Military
lower
in
the
City of Savannah.
Real Estate
Tourism
Infrastructure
Chatham County and the City of Savannah have more households earning less than $25,000 annually, while the
Education of households earning between $25,000 and $49,999 is fairly evenly distributed among most of the
percentage
Portshown
of Savannah:
Ports Authority
areas
in theGeorgia
table below.
The differences among Savannah’s geographic areas are clear in the $50,000 to
Small Business Investment and Development
$149,999
income
range,
with
Chatham
County and the City of Savannah falling behind Bryan, Effingham, and
Taxes
Beaufort
counties.
Beaufort
County
Transportation:
Roads,
Rail, Water,
Air continues to hold the distinction of having the highest concentration of
households
earning
more
than
$150,000.
Utilities
Other
2010-2012 Estimates of Income for Select Areas (in 2011 inflation-adjusted dollars)
Workforce Development
Average
Median
$25,000
Number of
Household
Household
Less than
to
$50,000 to
$150,000
Area
Households
Income
Income
$25,000
$49,999
$149,999
and Over
ThisSavannah
report Urban
was Area
updated by the Center for Regional Analysis at Armstrong Atlantic State University. The Center
(http://www.econ.armstrong.edu/cra/index.html)
applied research
needs of Savannah's
business
51,445 meets the46,779
34,832
36.8%
28.4% and community
31.6% organizations.
3.2%
(City)
Areas of concentrated research include regional economic forecasting, economic impact analysis, economic development and business
expansion,
and specialty reports
of state, regional
interest. The Center's
Chathamtourism
Countydevelopment, survey-based
100,981 research, 60,826
44,356on topics27.9%
27.4% and local38.1%
6.6%
activities are intended to appeal to a broad range of constituencies, and the Center stands ready to enter into cooperative partnerships with
Effingham
County
17,871
72,397
64,203
18.6%
18.9%
56.8%
5.7%
public, private, and community organizations.
Bryan County
10,956
74,283
62,351
17.9%
23.2%
51.6%
7.3%
MSA are collected from 129,587
62,763
25.7%
6.3% is
DataSavannah
for this report
public sources and
generally lag 47,732
anywhere from
one to two26.2%
years behind41.8%
the date the report
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
dataBeaufort
may notCounty
accurately
challenges that
businesses and
residents face
currently. While
for Regional10.0%
Analysis
(SC)reflect the economic
63,600
76,762
56,369
18.2%
26.2%the Center
45.7%
and the Savannah Chamber have made every attempt to provide the most reliable information available, they cannot be held liable for
omissions or inaccuracies.
Georgia
3,504,888
65,668
47,642
26.8%
25.1%
40.5%
7.7%
NOTE: ABOUT THE DATA
This report is published by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
Source: U.S. Census Bureau, American Factfinder2, 2010-2012 American Community Survey 3-Year Estimates, retrieved 12/10/2013 at http://factfinder2.census.gov
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
information and analysis provided in this annual update. This edition was published January 2014.
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
36
Savannah Area Chamber of Commerce
2014 Economic
Trends of Commerce
Savannah
Area Chamber
2014 Economic Trends
13
1
Contents
Industry: Construction
ABOUT THE DATA (See Note Below)
Welcome
to Savannah
Permitting
Activity
Savannah Quick Facts
While still recovering from the economic downturn, total costs of newly permitted construction rose sharply to $133.7 million in
2012, anSpeakers
increase of 22.3% from 2011. Single family permits increased sharply in 2012 with an increase of 23.8% over 2011.
Featured
The
in total residential construction were due to the increase in single family building permits, as multi-family permits
2012increases
Forecasts:
extended
a downward
trend dating back to 2007.
United States
and Georgia
Terry College of Business, University of Georgia
Savannah MSA
Chatham County Building Permits
Center for Regional
Analysis,
Department
of Economics,
Armstrong Atlantic State University
Single Family
Multi-Family
Total
Permits
Construction Cost
Permits
Construction Cost
Permits
Construction Cost
Economic
2002 Trends:
1,101Savannah$158,257,072
57
$40,389,000
1,158
$198,646,072
Compiled by the Center for Regional Analysis at Armstrong Atlantic State University
2003
1,314
$193,024,038
33
$10,479,663
1,347
$203,503,701
Economy
2004
1,366
$224,553,004
47
$23,470,839
1,413
$248,023,843
Gross Regional Product
2005
1,892
$281,012,484
77
$39,820,995
1,969
$320,833,479
Demographics
2006
2,692
$399,764,638
52
$41,763,018
2,744
$441,527,656
Employment
Population1,908
2007
$297,269,791
84
$44,880,236
1,992
$342,150,027
Household1,117
Income
2008
$163,057,158
45
$42,084,952
1,162
$205,142,110
Industry
2009
785
$108,170,515
26
$17,654,193
811
$125,824,708
Construction
2010
676
$87,335,207
24
$14,345,471
700
$101,680,678
Health Care
2011
655
$84,463,420
28
$24,873,596
683
$109,337,016
Major Employers and Major Manufacturers
2012
811
$122,205,698
15
$11,515,108
826
$133,720,806
Military
Source: U.S. Department of Commerce, Census Bureau, Annual New Privately-Owned Residential Building Permits. Retrieved 12/2013.
Real Estate
Multi-family consists of two family, three or four family, and five or more family categories.
Tourism
Infrastructure
Residential Construction Declines in the Savannah MSA
Education
The regional
housing market continues to show slow, but accelerating growth since the 2010 trough. The number of singlePort of Savannah: Georgia Ports Authority
familySmall
homes
permitted
in 2012and
increased
20.4%, a rate that far exceeds the 2.7% growth of the previous year. A total of 1,263
Business
Investment
Development
singleTaxes
family home building permits were issued over the course of the year. The average value per unit in 2012 was $159,000
- an increase
of 7.9%.
Further,
through
Transportation:
Roads,
Rail, Water,
Air the first three quarters of 2013, the number of single family home building permits
issuedUtilities
is approximately 20% higher than in 2012. The number of two-to-four-unit family dwellings permitted fell back to its
2010
Otherlevel of 10 units in 2012 from 26 units in 2011.
Workforce Development
NOTE: ABOUT THE DATA
This report was updated by the Center for Regional Analysis at Armstrong Atlantic State University. The Center
(http://www.econ.armstrong.edu/cra/index.html) meets the applied research needs of Savannah's business and community organizations.
Areas of concentrated research include regional economic forecasting, economic impact analysis, economic development and business
expansion, tourism development, survey-based research, and specialty reports on topics of state, regional and local interest. The Center's
activities are intended to appeal to a broad range of constituencies, and the Center stands ready to enter into cooperative partnerships with
public, private, and community organizations.
Data for this report are collected from public sources and generally lag anywhere from one to two years behind the date the report is
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
data may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis
and the Savannah Chamber have made every attempt to provide the most reliable information available, they cannot be held liable for
omissions or inaccuracies.
This report is published by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
information and analysis
provided
in this
annual
This
edition
wasA&M
published
2014.
Source:
U.S. Bureau
of Census
andupdate.
Real Estate
Center
at Texas
University.January
http://recenter.tamu.edu,
retrieved 12/2013
Savannahresources
Area Chamber
of Commerce
Additional
and contact
information are available on the Chamber’s Web site: www.savannahchamber.com.
2014 Economic Trends
Savannah Area Chamber of Commerce
2014 Economic Trends
14
1
37
Contents
Industry: Health Care
ABOUT THE DATA (See Note Below)
Welcome
to Savannah
Two nationally
recognized medical centers deliver top quality health care in the city: Memorial University Medical Center and
Savannah Quick Facts
the St. Joseph’s/Candler Health System. These centers and the advanced medical specialties they offer attract people from all
over southeast
Featured
SpeakersGeorgia and the southern coastal area of South Carolina. The medical facilities are also the top two private
nonmanufacturing
employers in the metropolitan area.
2012 Forecasts:
United States and Georgia
Ambulatory
healthofcare
services
accounted
for $652 million of personal income in the Savannah MSA in 2011, or 6.0% of total
Terry College
Business,
University
of Georgia
private sources
Savannah
MSA of personal income. According to the Georgia Department of Labor, Candler Hospital Inc. and Memorial
University
Medical
Center
are ranked
as two of
largest employers
the Savannah
MSA in 2012.
Center for
Regional
Analysis,
Department
of ten
Economics,
ArmstronginAtlantic
State University
Economic Trends: Savannah
Compiled
by the Center
for Regional
Memorial
University
Medical
CenterAnalysis at Armstrong Atlantic State University
Economy
www.memorialhealth.com
Gross Regional Product
Demographics
Memorial Health in Savannah, Georgia, is a nonprofit, two-state healthcare organization that serves 35 counties in southeast
Employment
Georgia and southern South Carolina. The system includes Memorial University Medical Center -- a 622 bed academic
Population
hospital,
primary
and specialty care physician practices, a major medical education program, business and industry services,
Household
Income
and
a
24-hour
nurse
call center.
Industry
Construction
Memorial
houses a number of services that are not available at any other hospitals in the region, including a Level 1 trauma
Health Care
center,
children’s and
hospital,
Level 3 neonatal intensive care nursery, and a cancer research laboratory.
Majora Employers
MajoraManufacturers
Military
Real Estate
Memorial
has earned local, state, and national accolades for its clinical services and patient safety programs. With
Tourism
approximately
5,000 Team Members and more than 600 physicians on staff, Memorial is the largest healthcare provider in
Infrastructure
southeast Georgia.
Education
Port of Savannah: Georgia Ports Authority
Business Investment and Development
St. Small
Joseph’s/Candler
Health System
Taxes
www.sjchs.com
Transportation: Roads, Rail, Water, Air
Utilities
Two Savannah hospitals partnered in 1997 to create the St. Joseph’s/Candler Health System, the largest faith-based nonprofit
Other
health
institution
in the region. Its two anchor hospitals, St. Joseph’s Hospital and Candler Hospital, have total capacities of
Workforce
Development
305 beds and 331 beds respectively. SJ/C offers primary care and more than a dozen specialized inpatient and outpatient
services
including
those for women and children, oncology, pulmonology, cardiovascular care, digestive disease services,
NOTE:
ABOUT
THE DATA
neurological/neurosurgical care, and orthopedics.
This report was updated by the Center for Regional Analysis at Armstrong Atlantic State University. The Center
Top tertiary care is provided at its Centers meets
of Excellence:
(http://www.econ.armstrong.edu/cra/index.html)
the applied research needs of Savannah's business and community organizations.
 Nancy
N. and
J.C.regional
Lewis Cancer
andforecasting,
Research Pavilion
Areas of concentrated
research
include
economic
economic impact analysis, economic development and business
expansion, tourism
survey-based research, and specialty reports on topics of state, regional and local interest. The Center's
 development,
The Heart Hospital
activities are intended
to appeal
to aWomen’s
broad range
of constituencies, and the Center stands ready to enter into cooperative partnerships with
 Mary
Telfair
Hospital
public, private, and community
organizations.
Institute for Advanced Bone and Joint Surgery

The Institute for Neurosciences
Data for this report are collected from public sources and generally lag anywhere from one to two years behind the date the report is
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
SJ/C has achieved network accreditation status – a rare honor – in addition to its accreditation by the Joint Commission. It is
data may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis
the only health provider in the region to have achieved both network accreditation status and MAGNET status for nursing
and the Savannah Chamber have made every attempt to provide the most reliable information available, they cannot be held liable for
excellence.
The Nancy N. and J.C. Lewis Cancer & Research Pavilion is an original designee of the National Cancer Institute's
omissions
or inaccuracies.
Community Cancer Centers Program. SJ/C has earned the highest award for stroke care by the American Stroke Association.
received
the 2012
Foster
McGaw
Prize
for Excellence
in Community
from
the American
Association.
ThisSJ/C
report
is published
by the
Savannah
Area
Chamber
of Commerce,
101 East Services
Bay Street
(31401),
P.O. BoxHospital
1628, Savannah,
Georgia
31402-1628,
912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
Source: Revised 11/2013 from MUMC and SJCHS.
information and analysis provided in this annual update. This edition was published January 2014.
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
38
Savannah Area Chamber of Commerce
2014 Economic
Trends of Commerce
Savannah
Area Chamber
2014 Economic Trends
16
1
Contents
Industry: Major Employers
ABOUT THE DATA (See Note Below)
Welcome
to Savannah
Business
establishments numbered 9,201 in the Savannah MSA in 2012, a net increase of 186 firms from 2011.
Savannah Quick Facts
Featured Speakers Major Employers (Non-Manufacturing)
2012 Forecasts:
Corporation / Organization
Service / Product
United States and Georgia
Memorial University Medical Center
Hospital
Terry College of Business, University of Georgia
St. Joseph’s/Candler
Hospital
Savannah MSA
Center for Regional
Analysis,
Department
of
Economics,
Armstrong
Wal-Mart
Retail Atlantic State University
Marine Terminals Corp.
Marine cargo handling
Economic Trends: Savannah
Compiled by the SSA
Center
for Regional Analysis at Armstrong AtlanticMarine
State University
Cooper
cargo handling
Economy
Kroger
Retail food
Gross Regional Product
Demographics
Snelling Staffing Services
Employment services
Employment
Georgia Regional Hospital
Hospital
Population
Household Income
UTC Overseas
Logistics
Industry
Target
Retail
Construction
Health Care
Schneider National Inc.
Trucking
Major Employers and Major Manufacturers
Colonial Group Inc.
Petroleum products
Military
Publix
Retail food
Real Estate
Tourism
McDonalds
Restaurant
Infrastructure
Southcoast Medical Group
Healthcare Services
Education
Port of Savannah:
Georgia
Ports
Authority
Ceres
Marine
Terminals
Marine cargo handling
Small Business Investment and Development
Coastal Home Care
Medical care
Taxes
CoastalRail,
Center
for Developmental
Services
Employment Services
Transportation: Roads,
Water,
Air
Utilities
Effingham County Hospital Authority
Hospital
Other
The Landings Club
Private Membership Club
Workforce Development
Employees
1,000-4,999
1,000-4,999
1,000-4,999
1,000-4,999
1,000-4,999
1,000-4,999
500-999
500-999
500-999
500-999
500-999
500-999
500-999
500-999
500-999
500-999
500-999
500-999
250-499
250-499
NOTE: ABOUT THE Education
DATA / Government / Public Service
Savannah-Chatham County Board of Education Public schools
5,000-9,999
This report was updated by the Center for Regional Analysis at Armstrong Atlantic State University. The Center
Ft. Stewart/Hunter Army Airfield
Civilian personnel on bases
1,000-4,999
(http://www.econ.armstrong.edu/cra/index.html) meets the applied research needs of Savannah's business and community organizations.
of Savannah
1,000-4,999
Areas of concentrated City
research
include regional economic forecasting, Government
economic impact analysis, economic
development and business
expansion, tourism development,
survey-based
research,
and
specialty
reports
on
topics
of
state,
regional
and local interest. The Center's
Savannah College of Art & Design
Education
1,000-4,999
activities are intended to appeal to a broad range of constituencies, and the Center stands ready to enter into cooperative partnerships with
Chathamorganizations.
County
Government
1,000-4,999
public, private, and community
Georgia Ports Authority
Ship terminal operations
500-999
Data for this report are collected from public sources and generally lag anywhere from one to two years behind the date the report is
University
500-999
produced. Most data inArmstrong
this year’sAtlantic
report State
are annual
figures for 2012, theEducation
latest year available, and some may
end at 2011 or earlier. This
data may not accuratelyYMCA
reflectofthe
economic
challenges
that
businesses
and
residents
face
currently.
While
the
Center
Coastal Georgia
Civic association
500-999 for Regional Analysis
and the Savannah Chamber have made every attempt to provide the most reliable information available, they cannot be held liable for
Savannah State University
Education
500-999
omissions or inaccuracies.
U.S. Army Corps of Engineers
Civil engineering
500-999
Source:
DepartmentArea
of Labor
retrieved 12/2013
This report is published
byGeorgia
the Savannah
Chamber
of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
information and analysis provided in this annual update. This edition was published January 2014.
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
Savannah Area Chamber of Commerce
2014 Economic
Trends of Commerce
Savannah
Area Chamber
2014 Economic Trends
17
1
39
Contents
Industry: Major Manufacturers
ABOUT THE DATA (See Note Below)
Welcome
to Savannah
The Savannah
MSA’s manufacturing firms created approximately 17.4% of the area’s economic output as measured by GDP,
Savannah Quick Facts
accounting for $2.4 billion of output in 2012. The number of manufacturing establishments in the Savannah CMSA was 245
firms employing
Featured
Speakers15,248 workers in 2012.
2012 Forecasts:
United States and Georgia
Terry College of Business, University of Georgia
Savannah MSA Manufacturers, Savannah / Ft. Stewart / Hinesville CMSA
Center for Regional Analysis, Department of Economics,
Armstrong Atlantic State UniversityCounty
Corporation
Product
Gulfstream Aerospace
Corporation1
Jet aircraft, aerospace equipment
Economic Trends: Savannah
Georgia-Pacific
Corporation/Fort
Howard
Group
Paper
products
Compiled by the
Center for Regional
Analysis
at Armstrong
Atlantic
State University
Economy
International Paper2
Paper products
Gross Regional Product
Savannah Morning News
Newspaper publishing
Demographics
Chemtall
Inc.
Chemicals
Employment
Population
JCB
Inc.
Construction equipment
Household Income
Mitsubishi Power Systems
Turbines
Industry
Imperial
Sugar
Refined sugar
Construction
Health
Care
Efacec Power Transformers
Transformers
Major Employers and Major Manufacturers
Weyerhaeuser
Bleached pulp
Military
Interstate
Paper
LLC
Paper
products
Real Estate
TourismUSA
Brasseler
Dental instruments
Infrastructure
Derst Baking Co.
Baked goods
Education
Atlantic
Industries
Pressure-treated wood products
Port ofWood
Savannah:
Georgia Ports Authority
Small Chemical
Business Investment
Arizona
Company and Development
Chemicals
Taxes
International Greetings USA
Gift wrap, bags, bows
Transportation: Roads, Rail, Water, Air
EMD
Chemicals
Chemicals
Utilities
Other
Firth Rixson Forgings
Aerospace engine components
Workforce
Development
Oracal
USA Inc
Tape and print materials
Intercat
NOTE:
ABOUT THE DATA
Catalytic additives
CH
EF
CH
CH
LI
CH
CH
CH
EF
CH
LI
CH
CH
CH
CH
LI
CH
LI
BR
CH
Employees
5,000-9,999
1,000-4,999
500-999
500-999
500-999
500-999
250-499
250-499
250-499
250-499
250-499
250-499
250-499
250-499
100-249
100-249
100-249
100-249
100-249
100-249
Source: Georgia Department of Labor, retrieved 12/2013
1. Employment
Savannah andbyBrunswick
This report
was in updated
the Center for Regional Analysis at Armstrong Atlantic State University. The Center
2. Includes Savannah Mill and Savannah Mill Container
Division
(http://www.econ.armstrong.edu/cra/index.html)
meets
the applied research needs of Savannah's business and community organizations.
Areas of concentrated research include regional economic forecasting, economic impact analysis, economic development and business
expansion, tourism development, survey-based research, and specialty reports on topics of state, regional and local interest. The Center's
activities are intended to appeal to a broad range of constituencies, and the Center stands ready to enter into cooperative partnerships with
public, private, and community organizations.
Data for this report are collected from public sources and generally lag anywhere from one to two years behind the date the report is
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
data may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis
and the Savannah Chamber have made every attempt to provide the most reliable information available, they cannot be held liable for
omissions or inaccuracies.
This report is published by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
information and analysis provided in this annual update. This edition was published January 2014.
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
40
Savannah Area Chamber of Commerce
Savannah
Area Chamber
2014 Economic
Trends of Commerce
2014 Economic Trends
18
1
Contents
Industry: Military
ABOUT THE DATA (See Note Below)
Welcome
to Savannah
Ft. Stewart,
located just outside of the Savannah MSA, and Hunter Army Airfield generate sufficient economic activity to
Savannah Quick Facts
warrant inclusion of Liberty and Long counties in the larger Savannah CMSA. Ft. Stewart and Hunter AAF have an annual
financialSpeakers
impact of $5.6 billion. Fort Stewart is the largest military installation east of the Mississippi River and covers nearly
Featured
285,000
acres.
2012 Forecasts:
United States and Georgia
Ft. Stewart
and Hunter
AAF University
together are
one of Coastal Georgia’s largest employers. The ratio of military to civilian
Terry College
of Business,
of Georgia
employeesMSA
is approximately five to one, with 24,235 officers and enlisted military and 4,637 civilians employed at both
Savannah
installations.
Ft.Regional
Stewart Analysis,
accounts Department
for nearly three-fourths
of the
military employment
the area.
Center for
of Economics,
Armstrong
Atlantic Statein University
Economic
Pressure toTrends:
reduceSavannah
federal and defense budgets lead to a modest reduction in civilian employment in 2012. Withdrawal of
Compiled
by theAfghanistan
Center for Regional
at Armstrong
Atlantic State
University
combat
units from
and withAnalysis
no scheduled
deployments,
the 3rd
Infantry Division is scheduled to remain in the
Economy
area throughout 2014 except for training exercises and unscheduled contingency operations.
Gross Regional Product
Demographics
Employment
2013
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Population
Military
22,422
22,841 22,950 24,300
25,000 26,212 24,465
24,600
29,483
27,314
24,235
Household Income
Civilian
3,485
3,212
3,218
3,200
3,942
4,285
5,109
4,700
4,974
4,743
4,637
Industry
TotalConstruction
25,907
26,053 26,168 27,500
28,942 30,497 29,574
29,300
34,457
32,057
28,872
Source:
Fort Stewart
Health
Care Public Affairs Office, “Fort Stewart/Hunter AAF Command Data Summary”, Sept. 2012
Major Employers and Major Manufacturers
Military
Real Estate
Tourism
Infrastructure
Education
Port of Savannah: Georgia Ports Authority
Small Business Investment and Development
Taxes
Transportation: Roads, Rail, Water, Air
Utilities
Other
Workforce Development
NOTE: ABOUT THE DATA
This report was updated by the Center for Regional Analysis at Armstrong Atlantic State University. The Center
(http://www.econ.armstrong.edu/cra/index.html) meets the applied research needs of Savannah's business and community organizations.
Source:
Stewart Public
Affairs Office,
“Fort
Stewart/Hunter
AAF forecasting,
Command Data
Summary”,impact
Sept. 2012
Areas
of Fort
concentrated
research
include
regional
economic
economic
analysis, economic development and business
expansion, tourism development, survey-based research, and specialty reports on topics of state, regional and local interest. The Center's
activities are intended to appeal to a broad range of constituencies, and the Center stands ready to enter into cooperative partnerships with
Ft. Stewart
Hunter
Army Airfield
Payroll ($ in millions)
public,
private, /and
community
organizations.
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
DataMilitary
for this report are collected from public sources and generally lag anywhere from one to two years behind the date the report is
produced.
Most data
year’s report
figures1,014.6
for 2012, the
latest year
available,1,301.4
and some1,325.6
may end at1247.5
2011 or earlier. This
863 in this845
875.1are annual
753.6
1,273.2
1,187.4
(after tax)
data Civilian
may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis
and the Savannah
information
available,203.1
they cannot
be held liable for
71.4Chamber
110 have made
140.5every attempt
119 to provide
145.4 the most
166.9reliable197.2
213.9
117.5
(gross)
omissions or inaccuracies.
Total
934.4
955
1,015.6
872.6
1,160.0
1,440.1
1,384.6
1,515.3
1,528.7
1365.0
Source: Fort Stewart Public Affairs Office, “Fort Stewart/Hunter AAF Command Data Summary”, Sept. 2012
This report is published by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
information and analysis provided in this annual update. This edition was published January 2014.
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
Savannah Area Chamber of Commerce
2014 Economic
Trends of Commerce
Savannah
Area Chamber
2014 Economic Trends
19
1
41
Contents
Industry: Real Estate
ABOUT THE DATA (See Note Below)
Office and Industrial Markets
Welcome to Savannah
Savannah Quick Facts
Metro Savannah’s office market activity remains constrained by modest employment growth through much of 2013. Of nonowner Speakers
occupied office space 5,000 square feet or larger, the office space inventory in Metro Savannah surpassed 3.3 million
Featured
square
feet in the second quarter of 2013. The market occupancy rate fell slightly between the second quarter of 2012 and the
2012 Forecasts:
second
quarter
2013 to 79%, down from 80.1%. The vacancy rate in the Bryan County was the highest amongst subUnited
States
and of
Georgia
markets,
standingofatBusiness,
33.0%. The
lowest vacancy
rate recorded was in the Islands sub-market, at 11.0%.
Terry College
University
of Georgia
Savannah MSA
Center for Regional Analysis, Department of Economics, Armstrong Atlantic State University
Economic Trends: Savannah
Compiled by the Center for Regional Analysis at Armstrong Atlantic State University
Economy
Gross Regional Product
Demographics
Employment
Population
Household Income
Industry
Construction
Health Care
Major Employers and Major Manufacturers
Military
Real Estate
Tourism
Source: Gilbert & Ezelle Commercial Real Estate, Cushman & Wakefield Marketbeat Report, Q2 2013, retrieved 12/2013
Infrastructure
Education
Savannah MSA Office Market
2013: 2nd Quarter
Port of Savannah: Georgia Ports Authority
Total Square Feet Reported
3,301,707
Small Business Investment and Development
Vacant Space (sq. ft.) Reported
726,336
Taxes
Vacancy
Rate
21.0%
Transportation: Roads, Rail, Water, Air
Utilities
Other
Gross Rental Rate 1 (per sq. ft.) by Market
Workforce Development
Savannah MSA
$18.64
Islands
CBD/Downtown
$19.57
$19.55
NOTE: ABOUT THE DATA Southside
Effingham
County
$19.04
$17.75
Bryan County
Westside
$18.66
$17.25
This report was updated
by the
Center
for Regional
AnalysisReport,
at Q2Armstrong
Source: Gilbert
& Ezelle
CRE, Cushman
& Wakefield Marketbeat
2013, retrievedAtlantic
12/2013 State University. The Center
(http://www.econ.armstrong.edu/cra/index.html)
meets
the weighted
appliedaverage
research
Savannah's business and community organizations.
(1) Gross Rental Rate refers to
the overall
for all needs
property of
classes
Areas of concentrated research include regional economic forecasting, economic impact analysis, economic development and business
expansion,
tourism
development, survey-based research, and specialty reports on topics of state, regional and local interest. The Center's
Industrial
Market
activities
are
intended
appeal toand
a broad
range of constituencies,
and the modest
Center stands
to enter
into cooperative
partnerships
Metro Savannah’stoindustrial
warehousing
market experienced
growthready
in 2013.
Continued
economic
recovery with
in
public, private, and community organizations.
the region has increased demand, driving the overall vacancy rate down to 11.5% from highs of nearly 20% in 2009 and 2010.
By the second quarter of 2013, new inventory of 200,000 square feet was completed. Additionally, 460,000 square feet of new
Data for this report are collected from public sources and generally lag anywhere from one to two years behind the date the report is
inventory
wasdata
under
construction
in 2013.
produced.
Most
in this
year’s report
are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
data may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis
Savannah
Industrial
and the Savannah Chamber
have made
every Market
attempt to provide the most reliable information available, they cannot be held liable for
Total
Inventory
45,877,274 Sq. Ft.
omissions or inaccuracies.
New Construction Added to Inventory
200,000 Sq. Ft.
Total
Inventory
Available
for
Sale/Lease
5,275,887
Sq. Ft
This report is published by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box
1628, Savannah, Georgia
Overall
Vacancy
Rate
11.5
% that contributed to the
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations
Source: Gilbert
& Ezelle
CRE,update.
CushmanThis
& Wakefield
Report, Q2
2013, retrieved
information and analysis provided
in this
annual
editionMarketbeat
was published
January
2014. 12/2013
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
42
Savannah Area Chamber of Commerce
2014 Economic
Trends of Commerce
Savannah
Area Chamber
2014 Economic Trends
20
1
Contents
Real Estate
ABOUT THE DATA (See Note Below)
Residential
Welcome to Savannah
Savannah Quick Facts
Total qualified home sales have plateaued between 2010 and 2013 (through mid-December) because of limited growth in the
largest submarket,
Featured
Speakers homes that sold between $100,000 and $199,999. In 2012, a total of 2,605 homes sold as compared to
2,134
in
2011. For 2013 (through mid-December), 2,590 homes sold. The average qualified home sale price in Chatham
2012 Forecasts:
County
was $226,332
in 2012 and $226,103 in 2013, a decrease of about 0.1%.
United States
and Georgia
Terry College of Business, University of Georgia
Savannah MSA
Center for Regional Analysis, Department of Economics, Armstrong Atlantic State University
Economic Trends: Savannah
Compiled by the Center for Regional Analysis at Armstrong Atlantic State University
Economy
Gross Regional Product
Demographics
Employment
Population
Household Income
Industry
Construction
Health Care
Major Employers and Major Manufacturers
Military
Real Estate
Tourism
Infrastructure
Education
Port of Savannah: Georgia Ports Authority
Small Business
Investment
Development
Source:
Chatham County
Board and
of Assessors.
Only qualified sales were utilized. Retrieved 12/2013
Taxes
Transportation:
Rail, Water,
Air
Savannah
continuesRoads,
in a favorable
position
with respect to home prices among comparable metropolitan areas and among
Utilitiesas well. Savannah ranks in the least expensive one-third of average housing prices in the nation (656 of 1,997)
port cities
Other
according
to the markets tracked in the Coldwell Banker “Home Listing Report.” Within Georgia, Savannah ranks above
Workforce
average,
being Development
in the most expensive one-fifth (#39) of the 55 markets tracked in Georgia.
NOTE: ABOUT THE
DATA
Home
Price Comparisons, 2013
Metropolitan
Port Cities
This report was updated
by theAreas
Center for Regional Analysis
at Armstrong Atlantic State University. The Center
Denver,
CO
$390,436
San Francisco,
$1,309,559
(http://www.econ.armstrong.edu/cra/index.html) meets the applied research
needs ofCA
Savannah's business
and community organizations.
Raleigh,
NC
$255,860
Seattle
WA
$655,079 development and business
Areas of concentrated research include regional economic forecasting, economic impact analysis, economic
Tallahassee,
FL
$233,676
$494,864
expansion, tourism development,
survey-based
research,
and specialtyBoston,
reportsMA
on topics of state, regional
and local interest. The Center's
FL stands ready to enter
$302,947
activities are intended toAtlanta,
appealGA
to a broad range of$217,226
constituencies, andMiami,
the Center
into cooperative partnerships with
Charlotte,
NC
$211,693
Virginia Beach, VA
$283,039
public, private, and community
organizations.
Savannah, GA
$203,404
Charleston, SC
$276,060
FL public sources
$203,313
FL
Data for this report areGainesville,
collected from
and generally Tampa,
lag anywhere
from one to two$232,748
years behind the date the report is
$195,435
Savannah,
GA available, and some
$203,404
produced. Most data inNashville,
this year’sTNreport are annual
figures for 2012, the
latest year
may end at 2011 or earlier. This
$189,287
IL
$197,466
data may not accuratelyLouisville,
reflect theKY
economic challenges
that businessesChicago,
and residents
face currently. While
the Center for Regional Analysis
Columbus,
$152,068
FL information available,
$171,368
and the Savannah Chamber
haveGA
made every attempt
to provide theJacksonville,
most reliable
they cannot be held liable for
omissions or inaccuracies.
Source: Coldwell Banker “Home Listing Report” NOTE: Comparable subject homes are four-bedroom, two-bath properties on
www.coldwellbanker.com listed between January 2013 and June 2013. Retrieved at http://hlr.coldwellbanker.com 12/2013
This report is published by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
information and analysis provided in this annual update. This edition was published January 2014.
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
Savannah Area Chamber of Commerce
2014 Economic
Savannah
Area Trends
Chamber of Commerce
2014 Economic Trends
21
1
43
Contents
Industry: Tourism
ABOUT THE DATA (See Note Below)
Welcome
to Savannah
Savannah
exudes a beauty and charm that few, if any, destinations can match. Savannah’s tourism and hospitality industry
Savannah
Quick
continues
to Facts
be one of the largest economic drivers of Savannah. Travel to Savannah remains strong and the city enjoys
visitors from all over the world. Most recently, the city was named one of “America’s Top 10 Waterfronts” by USA Today .
Featured Speakers
2012 Forecasts:
The Savannah
United
States andtourism
Georgiasector continued to grow in 2012 with total overnight person-stays increasing from 6.8 million in 2011
to 7.0
million.
In
2012,
over 12University
million visitors
came to Savannah including 7.0 million overnight visitors and 5.3 million dayTerry College of
Business,
of Georgia
trippers. The
Savannah
MSAdemand for rooms increased 1.8% in 2012, with visitor spending increasing 7.7% to approximately $2.1 billion.
Room
tax for
revenue
in 2012
onceDepartment
again set aofrecord
high. Climbing
to Atlantic
$17.1 million,
it surpassed the previous year’s record
Center
Regional
Analysis,
Economics,
Armstrong
State University
value of $15.5 million.
Economic Trends: Savannah
Impact onAtlantic
Savannah/Chatham
Compiled by the Center for Regional Tourism’s
Analysis at Armstrong
State University County
Economy
2008
2009
2010
Gross Regional Product
Demographics
Number of Lodging Rooms (1)
13,898
14,745
14,893
Employment(Overnight) (2)
Person-Stays
6.1 Million
6.1 Million
6.3 Million
Population
Room Night Demand (1)
2.991 Million
3.038 Million
3.240 Million
Household Income
Direct Spending (2)
$1.9 Billion
$1.6 Billion
$1.7 Billion
Industry
Room Tax Revenue (3)
$14.0 Million
$12.9 Million
$14.4 Million
Construction
Sources:
2011
15,026
6.8 Million
3.43 Million
$1.95 Billion
$15.5 Million
2012
14,848
7.0 Million
3.491 Million
$2.1 Billion
$17.1 Million
Visit Savannah
Health1Care
Smith Travel Research – Chatham County
Major Employers
Major Manufacturers
2 D. K. Shiffletand
and Associates,
Ltd. – City of Savannah Only
Military3 Longwoods International
4 Local Municipalities – Chatham County
Real Estate
Tourism
Savannah is full of activity year-round. Although the busiest
Infrastructure
months
in terms of visitation are April, May, and June,
Education
tourism
activity
is spread
fairly
evenly
across the year. For
Port of Savannah:
Georgia
Ports
Authority
overnight
visitors,
the
mix
is
84%
leisure
travel and 16%
Small Business Investment and Development
Taxes and business-leisure. Over-night visitors stay
business
Transportation:
Water, Air
approximately
2.3Roads,
nights Rail,
in Savannah.
Utilities
Other
Savannah excels in special interest tourism activities and
WorkforcetoDevelopment
continues
be an exciting destination. Savannah’s
distinctive qualities allow the city to stand out in the crowd. In top interest categories for overnight visitors, Savannah remains
NOTE:
ABOUT
THE DATA
far ahead
of typical
national levels.
This report was updated by the Center for Regional Analysis at Armstrong Atlantic State University. The Center
(http://www.econ.armstrong.edu/cra/index.html) meets the applied research needs of Savannah's business and community organizations.
Areas of concentrated research include regional economic forecasting, economic impact analysis, economic development and business
expansion, tourism development, survey-based research, and specialty reports on topics of state, regional and local interest. The Center's
activities are intended to appeal to a broad range of constituencies, and the Center stands ready to enter into cooperative partnerships with
public, private, and community organizations.
Data for this report are collected from public sources and generally lag anywhere from one to two years behind the date the report is
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
data may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis
and the Savannah Chamber have made every attempt to provide the most reliable information available, they cannot be held liable for
omissions or inaccuracies.
Sources: Longwoods Travel USA 2012 Visitor Final Report, via VisitSavannah.
This report is published by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
information and analysis provided in this annual update. This edition was published January 2014.
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
44
Savannah Area Chamber of Commerce
2014 Economic
Trends of Commerce
Savannah
Area Chamber
2014 Economic Trends
22
1
Contents
Infrastructure: Education
ABOUT THE DATA (See Note Below)
Welcome
to Savannah
The five-county
CMSA employed approximately 4,050 faculty, administrators, and staff in public and private educational
Savannah
Quick
Facts
services in
2012.
Public High Schools in the CMSA produced 3,540 graduates. Of the metro area’s population above age 25,
approximately 87% are high school graduates or have had some college level education. Approximately 29% of the population
Featured Speakers
above
the age of 25 has a bachelor’s degree or higher level of educational attainment.
2012 Forecasts:
United States and Georgia
Savannah’s
educational
institutions
offer aofrange
of programs to suit every learning need, from the family looking for one of
Terry College
of Business,
University
Georgia
the
state’s free
Savannah
MSAhigh-quality pre-kindergarten programs to the college graduate looking to pursue an advanced degree.
Center for Regional Analysis, Department of Economics, Armstrong Atlantic State University
Pre-K-12 Education
Economic Trends: Savannah
Compiled
by the
Center for RegionalCounty
AnalysisPublic
at Armstrong
Enrollment
in the
Savannah-Chatham
SchoolAtlantic
SystemState
roseUniversity
to 37,236 in the fall of 2013, a 2.15% increase from
Economy
the
previous year. Fifty-one publicly funded schools serve the county’s students and their families: 27 elementary
Gross
Regionaltwo
Product
schools
(including
charter schools), 9 middle schools (including one charter school), 7 K-8 schools, and 11 high schools.
Demographics
The Esther F. Garrison School of Visual and Performing Arts was awarded by the Georgia Department of Education as one of
Employment
Georgia’s
Schools of Excellence in 2012. For more information on the Savannah-Chatham public schools, go
Population
to www.sccpss.com.
Household Income
Industry
Higher
Education: Colleges, Universities and Technical Schools
Construction
Health Care
Over Major
60,000
studentsand
areMajor
enrolled
in the 18 institutions of higher learning in and around the Savannah area. While several of
Employers
Manufacturers
theseMilitary
schools have long histories of producing graduates who have contributed to the region, others are recent newcomers,
attracted
the demands for advanced learning created by Savannah’s vibrant and growing economy.
RealtoEstate
Tourism
InfrastructureAtlantic State University: Founded in 1935 as Armstrong Junior College, Armstrong in 2012 enrolled
Armstrong
Education 7,100 students in more than 60 undergraduate and graduate degree-granting programs. In addition to bachelor
approximately
Port of Savannah:
Ports Authority institution offers a doctoral degree, eleven associate degrees, pre-professional
and masters
degrees, Georgia
this SACS-accredited
Small
Business
Investment
and Development
programs, and online degree programs.
In 2012-2013 the university awarded 1,334 academic degrees, a 5.3% increase from
Taxes
the previous academic year. Departmental and faculty grants afford tremendous opportunities for student scholarships,
Transportation: Roads, Rail, Water, Air
research, and part-time employment. www.armstrong.edu
Utilities
Other
Coastal
Georgia
Center: A partnership of Armstrong Atlantic State University, Georgia Southern University and Savannah
Workforce
Development
State University, the Coastal Georgia Center offers a convenient location with a professional environment in downtown
Savannah
for students
to earn graduate degrees in business, education, public administration, and social work. The center is
NOTE:
ABOUT
THE DATA
also an outreach component of the University System of Georgia to promote economic development and serve as a venue
with modern
and services
meetings,
regionalat conferences.
This
report technology
was updated
by the for
Center
for seminars,
Regional and
Analysis
Armstrong www.cgc.georgiasouthern.edu
Atlantic State University. The Center
(http://www.econ.armstrong.edu/cra/index.html) meets the applied research needs of Savannah's business and community organizations.
Georgia
Tech Savannah:
Initiated
1998, theeconomic
46 acre forecasting,
Savannah campus
created
as aneconomic
upper division
campusand
to unite
Areas
of concentrated
research
includein regional
economicwas
impact
analysis,
development
business
education,tourism
industry,
and technology
in Georgia's
Southeast
region. reports
The campus
is home
to the
regional
offices
of the The
Georgia
expansion,
development,
survey-based
research,
and specialty
on topics
of state,
regional
and local
interest.
Center's
activities
are
intended
to
appeal
to
a
broad
range
of
constituencies,
and
the
Center
stands
ready
to
enter
into
cooperative
partnerships
Tech Enterprise Innovation Institute, the Savannah Advanced Technology Development Center, and the Georgia Logisticswith
public,
private,and
andResearch
community Center.
organizations.
Innovation
New offerings at the campus are likely to include professional master’s degrees, co-
curricular undergraduate activities, instruction for the military, and executive and other non-credit education programs.
Data
for this report are collected from public sources and generally lag anywhere from one to two years behind the date the report is
www.gtsav.gatech.edu
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
data
may The
not accurately
reflect
economic
challenges
businesses
and residents
face Design
currently.is While
the Center
for Regional
Analysis
SCAD:
University
for the
Creative
Careers
: Thethat
Savannah
College
of Art and
a private,
nonprofit,
accredited
and the Savannah Chamber have made every attempt to provide the most reliable information available, they cannot be held liable for
institution conferring bachelor’s and master’s degrees at distinctive locations and online to prepare talented students for
omissions or inaccuracies.
professional careers. SCAD offers degrees in more than 40 areas of study, as well as minors in more than 60 disciplines in
Savannah
Atlanta,
in Hong
in Lacoste,
France;
through
SCADP.O.
eLearning.
SCAD
has more
This
report isand
published
byGeorgia;
the Savannah
AreaKong;
Chamber
of Commerce,
101and
Eastonline
Bay Street
(31401),
Box 1628,
Savannah,
Georgia
than
25,000
alumni,
and
offers
an
exceptional
education
and
unparalleled
career
preparation.
The
diverse
student
body,
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed
to the
consistingand
of more
thanprovided
11,000instudents,
comes
from
alledition
50 states
over 100
countries
information
analysis
this annual
update.
This
was and
published
January
2014. worldwide. Each student is nurtured
and motivated by a faculty of nearly 700 professors with extraordinary academic credentials and valuable professional
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
Savannah Area Chamber of Commerce
Savannah
Area Trends
Chamber of Commerce
2014 Economic
2014 Economic Trends
23
1
45
Contents
experience. These professors emphasize learning through individual attention in an inspiring university environment. SCAD’s
innovative curriculum is enhanced by advanced, professional-level technology and learning resources and has garnered
ABOUT
THE DATA (See Note Below)
acclaim from respected organizations and publications, including 3D World, American Institute of Architects, BusinessWeek,
Welcome to Savannah
Design Quick
Intelligence,
Savannah
Facts U.S. News & World Report and the Los Angeles Times.
For more information, visit www.scad.edu
Featured Speakers
Savannah
State University: Founded in 1890, Savannah State is one of the University System of Georgia’s longest-standing
2012
Forecasts:
institutions
oldest historically black university. Enrollment rose to approximately 4,772 students in fall 2012; an 4.1%
United
Statesand
anditsGeorgia
increase.
Three colleges
administer
25 undergraduate
Terry College
of Business,
University
of Georgia and 5 graduate degree programs with a newly added school of Teacher
Savannah
EducationMSA
as of 2012. The university awards dual degrees in engineering specialties with the Georgia Institute of Technology.
Center for
Analysis,
Department
of Economics,
Armstrong
State grants
University
Accredited
by Regional
SACS, the
university
and its research
programs
regularly Atlantic
attract major
from federal agencies and private
institutions. www.savannahstate.edu
Economic Trends: Savannah
CompiledTechnical
by the Center
for Regional
Analysis at
Atlantic
State University
Savannah
College:
An institution
of Armstrong
the Technical
College
System of Georgia, Savannah Technical College for
Economy
more than 75 years has been the leading provider of top quality technical and adult education in the greater Savannah region.
Gross Regional Product
In 2013
STC opened their new aviation training center to train students on aircraft assembly and maintenance and is in the
Demographics
process of gaining FAA approval to certify airframe and powerplant mechanics. Enrollment at Savannah Tech was over 5,000 Employment
students
in 2013. Savannah tech offers students more than 70 certificate, diploma and associate degree programs in a
Population
diverse
array of
industries and fields that keep the regional economy running: from automotive and air conditioning to surgical
Household
Income
technologies, computer information systems to culinary arts, marketing to cosmetology. www.savannahtech.edu
Industry
Construction
Saint
LeoCare
University: Saint Leo’s Savannah Center opened on Stephenson Avenue in 1998 after moving the university’s
Health
educational
centers and
fromMajor
Ft. Stewart
and Hunter Army Air Field. Saint Leo has been named one of the best regional colleges
Major Employers
Manufacturers
Military
in the
South, according to U.S. News & World Report. The Savannah Center campus offers undergraduate degrees in
Real Estate
business
administration, criminal justice, computer information systems, religion, human resources management and other
Tourism
areas of study. Graduate degree programs are available in criminal justice, theology and business administration.
Infrastructure
www.saintleo.edu
Education
Port of Savannah: Georgia Ports Authority
South
University: South University’s Savannah campus dates back to 1899, when Dr. John Draughon established
Small Business Investment and Development
Draughon’s Practical Business College in Savannah. Now a four-year institution accredited by SACS, it offers associate’s,
Taxes
bachelor’s
and masters
programs
Transportation:
Roads,degree
Rail, Water,
Air through campuses in Savannah and Atlanta, GA; Tampa and West Palm Beach, FL;
Montgomery,
Utilities AL, and several other locations, as well as online degree programs.
www.southuniversity.edu
Other
Workforce Development
University of Phoenix: The Savannah campus offers bachelor’s degrees several areas such as arts and sciences, business
and management,
criminal justice and security, education, human services, nursing and healthcare, psychology, and
NOTE:
ABOUT THE DATA
technology. Masters and Doctoral degrees are also available in many of their fields. Many of its programs are online as well as
on campus.
www.phoenix.edu
This
report was
updated by the Center for Regional Analysis at Armstrong Atlantic State University. The Center
(http://www.econ.armstrong.edu/cra/index.html) meets the applied research needs of Savannah's business and community organizations.
Areas
of concentrated
research include
regional
economic
forecasting,
economic
impact
and business
Several
additional institutions
of higher
learning
have opened
advanced
degree
and analysis,
certificateeconomic
programsdevelopment
in metro Savannah:
expansion,
development,
research,
andinspecialty
reportsofontechnical
topics of operations,
state, regional
and local
interest. The
Center's
 tourism
Embry-Riddle
offerssurvey-based
undergraduate
degrees
management
aircraft
maintenance,
aviation
activities aremaintenance
intended to appeal
to
a
broad
range
of
constituencies,
and
the
Center
stands
ready
to
enter
into
cooperative
partnerships
with
management and professional aeronautics and a master’s degree in aeronautical science at its
public, private,
and
community
organizations.
Savannah Center at Hunter Army Airfield. www.erau.edu

Strayer University campus in Savannah opened on November 19, 2008, and provides undergraduate and graduate
Data for this report are collected from public sources and generally lag anywhere from one to two years behind the date the report is
degree programs in high-demand fields: accounting, business, criminal justice, education, general studies, health
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
services administration, information systems and public administration. www.strayer.edu/savannah
data may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis

Troy University
offers
taughtto online
undergraduate
degree they
in criminal
andfor
and the Savannah
Chamber have
madeclasses
every attempt
provide towards
the most an
reliable
information available,
cannot bejustice,
held liable
concentrations
that
include
general
business,
general
management,
political
science,
and
education.
www.troy.edu
omissions or inaccuracies.
Webster University has campuses that opened at Hunter Army Airfield in 2002 and Ft. Stewart in 2003. Webster
private,
nonprofit,
accredited
university,
international
presence.
It provides
graduate
This report isUniversity
publishedisbya the
Savannah
Area regionally
Chamber of
Commerce,
101 Eastwith
Bay an
Street
(31401), P.O.
Box 1628,
Savannah,
Georgia
programs
military personnel.
31402-1628,degree
912.644.6400.
Theto Chamber
would like www.webster.edu
to thank the many Savannah businesses and organizations that contributed to the
information
analysis
provided
in this
annual training
update. This
edition was
published
January culinary
2014. arts. www.vc.edu
 and
Virginia
College
offers
students
in business,
health
and medical,

Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
46
Savannah Area Chamber of Commerce
2014 Economic
Trends of Commerce
Savannah
Area Chamber
2014 Economic Trends
24
1
Contents
Infrastructure: Port of Savannah / Georgia Ports Authority
ABOUT THE DATA (See Note Below)
Welcome
Savannah ports and inland barge terminals support more than 352,000 jobs throughout the state annually and
Georgia’sto deepwater
Savannah
contributeQuick
$18.5Facts
billion in income, $66.9 billion in sales and $2.5 billion in state and local taxes to Georgia’s economy. (Selig
Center, Terry College of Business, University of Georgia)
Featured Speakers
2012Port
Forecasts:
The
of Savannah
United
and Georgia
The PortStates
of Savannah
is the fourth largest and fastest growing container port in the United States. In FY2013, it handled more
Terry
College
of Business,
of Georgia
than 2.9 million TEUs
(Twenty University
Foot Equivalent
Units) in throughput. FY2013 held the 2nd highest volume in the Port of
Savannah
MSA
Savannah’s history.
Center for Regional Analysis, Department of Economics, Armstrong Atlantic State University
The Port of Savannah moved 7.6% of the U.S. containerized loaded cargo volume and more than 17% of the East Coast
Economic Trends: Savannah
container trade. The port handled 10% of all U.S. containerized exports in FY2013, a total of 1.2 million loaded TEUs. The port
Compiled by the Center for Regional Analysis at Armstrong Atlantic State University
serves
approximately 21,000 companies in all 50 states, more than 75% of which are headquartered outside of Georgia.
Economy
Gross Regional Product
Demographics
Employment
Population
Household Income
Industry
Construction
Health Care
Major Employers and Major Manufacturers
Military
Real Estate
Tourism
Infrastructure
Education
Port of Savannah: Georgia Ports Authority
Small Business Investment and Development
Taxes
Transportation: Roads, Rail, Water, Air
The Port
of Savannah offers its customers many advantages:
Utilities
•
The
most global services among U.S. Southeast & Gulf ports;
Other
•Workforce
Asian Development
transit times as low as 22 days and 11-day express service to and from Europe;
• GPA is owner & operator of the largest single-terminal container facility (Garden City) in the U.S. which also
features
theDATA
longest contiguous dock in the U.S. – 9,693 feet;
NOTE: ABOUT
THE
• Largest Southeast refrigerated container export terminal;
One-of-a-kind
infrastructure
facilities located
a single
terminal; The Center
This •report
was updated
by the featuring
Center two
for intermodal
Regional container
Analysis transfer
at Armstrong
Atlantic onState
University.
served
by
CSX
Transportation
&
Norfolk
Southern
Railroad;
(http://www.econ.armstrong.edu/cra/index.html) meets the applied research needs of Savannah's business and community organizations.
Inspection offices
for U.S.
Customs
Border Protection
andeconomic
Dept. of impact
Agriculture
are on-terminal;
and
Areas •of concentrated
research
include
regional& economic
forecasting,
analysis,
economic development
and business
expansion,
tourism
development,
survey-based
research,
and
specialty
reports
on
topics
of
state,
regional
and
local
interest. The Center's
• Immediate access to two major interstate highways – I-95 (North/South) and I-16 (East/West);
activities
intended
to appeal toofa retail
broad import
range of
constituencies,
and(DCs)
the Center
ready
to enter into cooperative partnerships with
• are
Largest
concentration
distribution
centers
alongstands
the East
Coast;
public,•private,
and
community
organizations.
Client Relations Center – one-stop customer solutions group for all port users.
The Georgia Ports Authority operates two deepwater terminals in Savannah – Garden City and Ocean Terminal:
Data
for this
are collected from public sources and generally lag anywhere from one to two years behind the date the report is
Garden
Cityreport
Terminal:
produced.
Most
data
this year’s
report
annual figures
for 2012,
the latest
year available,container
and some
may end at 2011 or earlier. This
• A 500-footinchannel
width
andare
a secured,
dedicated
1,200-acre
single-terminal
facility
data may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis
• Nearly 1.2 million square feet of covered storage, including 68,150 square feet of cold storage
and the Savannah Chamber have made every attempt to provide the most reliable information available, they cannot be held liable for
Ocean
Terminal:
omissions or inaccuracies.
• A 200.4 -acre general cargo terminal features 9 berths totaling 5,768 linear feet
• Handles
RoRo,
containers,
heavy-lift
and project
cargo
This report
is published
by breakbulk,
the Savannah
Area Chamber
of Commerce,
101
East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
•
Over
1.4
million
square
feet
of
covered
storage
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
For More and
Information
contact inthethisGeorgia
www.gaports.com.
912.964.3855
information
analysis provided
annual Ports
update.Authority,
This edition
was published January
2014. / 800.342.8012
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
Savannah Area Chamber of Commerce
2014 Economic
Savannah
Area Trends
Chamber of Commerce
2014 Economic Trends
25
1
47
Contents
Infrastructure: Small Business Investment & Development
ABOUT THE DATA (See Note Below)
Welcome
to Savannah
Savannah’s
thriving small business community accounts for a substantial share of total private employment in the SavannahSavannah
Quick Facts
Hinesville-Fort
Stewart CMSA. The Georgia Department of Labor reported a total of 4,568 establishments employing between
5 and 500 employees in 2013. An additional 5,592 firms employed less than 5 employees. Firms with less than 500 employees
Featured Speakers
are responsible for the employment of 128,812 people, or approximately 77% of the workforce. The remaining 25 firms with
2012 Forecasts:
more States
than 500
United
andemployees
Georgia provided employment for 38,942 people, or approximately 23% the workforce.
Terry College of Business, University of Georgia
Savannah MSA
Center for Regional Analysis, Department of Economics, Armstrong Atlantic State University
Economic Trends: Savannah
Compiled by the Center for Regional Analysis at Armstrong Atlantic State University
Economy
Gross Regional Product
Demographics
Employment
Population
Household Income
Industry
Construction
Health Care
Major Employers and Major Manufacturers
Military
Real Estate
Tourism
Infrastructure Source: Georgia Department of Labor, Georgia Labor Market Explorer, Area Labor Profile, Accessed 11/2013.
Education
Several
and local
agencies
to strengthen the viability of small businesses, providing assistance that may range from
Port ofstate
Savannah:
Georgia
Portswork
Authority
freeSmall
consulting
to
training,
networking
to loans, and other essential small business tools. They promote Savannah’s healthy
Business Investment and Development
small
business
climate,
their
doors
always
open to assist the region’s innovators and entrepreneurs.
Taxes
Transportation: Roads, Rail, Water, Air
Utilities of Georgia Small Business Development Center: The Savannah SBDC office provides low-cost training and
University
Other
free consulting services in business plan development, market analysis and marketing strategies, financial analysis,
Workforceand
Development
compliance
legal issues. Its businesses consultants help prepare loan submissions for individuals who are starting or
expanding their business. www.sbdc.uga.edu
NOTE: ABOUT THE DATA
Small Business Assistance Corporation: SBAC is a nonprofit business development organization licensed by the U.S.
ThisSmall
report
was updated
by the
for by
Regional
at Armstrong
State ofUniversity.
The Urban
Center
Business
Administration
andCenter
supported
the CityAnalysis
of Savannah
and U.S.Atlantic
Department
Housing and
(http://www.econ.armstrong.edu/cra/index.html)
meets
the
applied
research
needs
of
Savannah's
business
and
community
organizations.
Development to promote economic growth by offering a number of loan programs for new and existing businesses.
Areas
of concentrated research include regional economic forecasting, economic impact analysis, economic development and business
www.sbacsav.com
expansion, tourism development, survey-based research, and specialty reports on topics of state, regional and local interest. The Center's
activities are intended to appeal to a broad range of constituencies, and the Center stands ready to enter into cooperative partnerships with
Savannah
Development
and Renewal Authority: SDRA provides planning and other support to help renew, revitalize and
public,
private, and
community organizations.
beautify distressed areas in the city and works with local government and private businesses to strengthen downtown’s
economic
environment.
www.sdra.net
Data
for this report
are collected
from public sources and generally lag anywhere from one to two years behind the date the report is
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
Area Chamber
ofeconomic
Commerce:
The Chamber’s
Smalland
Business
Council
works toWhile
meetthetheCenter
needs
interests
of
dataSavannah
may not accurately
reflect the
challenges
that businesses
residents
face currently.
forand
Regional
Analysis
businesses
and make
recognized
for the
theirmost
impact
to the
community
with programs
thesefor
andsmall
the Savannah
Chamber
have sure
madethey
everyare
attempt
to provide
reliable
information
available,
they cannotthat
be bring
held liable
omissions
or inaccuracies.
businesses
together with the larger Savannah community, including the SMART Lunch Series and Annual Banquet and Trade
Show. www.savannahchamber.com
This report is published by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
31402-1628,
The Chamber Authority:
would like to
thankleads
the many
SavannahRetention
businessesAction
and organizations
that contributed
to the
Savannah912.644.6400.
Economic Development
SEDA
the Business
Team, a collection
of economic
information
and
analysis
provided
in
this
annual
update.
This
edition
was
published
January
2014.
development experts from state and local agencies who work with existing businesses on issues that range from management
and human resource issues to training, exporting and operations. www.seda.org
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
48
Savannah Area Chamber of Commerce
2014 Economic
Trends of Commerce
Savannah
Area Chamber
2014 Economic Trends
26
1
Contents
Infrastructure: Taxes
ABOUT THE DATA (See Note Below)
Savannah / Georgia Tax Summary
Welcome to Savannah
Savannah
FactsProperty Tax
Real andQuick
Personal
Taxes on real and tangible personal property are levied by the city, county, school district, some municipalities and the state.
Featured Speakers
The Chatham Area Transit Authority levies a small tax in the City of Savannah and Garden City only. Georgia law requires
2012 Forecasts:
that
the fair market value be determined on all property to be taxed. Millage rates are applied to the assessed value, which is
United States and Georgia
40% Terry
of theCollege
fair market
value.University
Owner-occupied
homes are allowed a homestead exemption; Chatham County has a
of Business,
of Georgia
homestead
valuation
freeze
exemption.
The
following
table shows how to calculate the taxable value (net assessed value) of
Savannah MSA
an owner-occupied
home:Analysis, Department of Economics, Armstrong Atlantic State University
Center for Regional
$ 230,000
Fair Market Value of Residence
x
.40
40% Assessment Ratio
Economic Trends: Savannah
Compiled by the Center for Regional Analysis
Atlantic
State University
$ 92,000at Armstrong
Assessed
Value
Economy
- $ 12,000
Homestead Exemption
Gross Regional Product
$ 80,000
Net Assessed Value
Demographics
Employment
2013 Millage Rates (1)
Population
Other
Household
Income
Unincorporated
Municipalities
City of Savannah
Industry Chatham County
Construction
StateHealth
of Georgia
0.200
State of Georgia
0.200
Bloomingdale
0.0
Care
Major
Employers and Major Manufacturers
Public
Schools
14.631
Public Schools
14.631
Garden City
0.0
Military
County M&O*
11.109
City w/Transit
12.500
Pooler
4.635
RealService
Estate District**
Special
4.397
3.590
County M&O
11.109
Port Wentworth
Tourism
& Transit
0.859
Infrastructure
6.496
Chatham Transit
0.859
Thunderbolt
*see tables
Add Education
Other Municipality
on right
4.186
Tybee Island
Port of Savannah: Georgia Ports
Authority
Small
Business
Investment
and
Development
Total
39.299
Total
30.389
Vernonburg
0.0
Taxes
(1) From
the Georgia Department of Revenue, Local Government Services Division, 2013 Georgia County Ad Valorem Tax Digest Millage Rates.
https://etax.dor.ga.gov/PTD/cds/csheets/LGS_Georgia_County_Ad_Valorem_Tax_Digest_Millage_Rates_by_Taxing_Jurisdiction_PTSR006OD_2013.pdf
Transportation: Roads, Rail, Water, Air
If you live
in one of the municipalities listed in the table above, use the Unincorporated Chatham County tax rates, subtract the Special Service District rate of 3.59 and add
Utilities
the municipality’s rate into your calculations. Add the Transit rate of 0.859 if the area is served by CAT.
Other
*Sales tax rollback of 0.971 is deducted from M&O, insurance premium rollback of 0.795 is deducted from SSD.(Net rates are reported in this table).
Workforce Development
Continuing with our example above, a $230,000 home with a homestead exemption would have a net assessed value of
NOTE:
ABOUT
THE DATA Chatham County (not in a municipality), this home would have a 2013 property tax of $80,000 x
$80,000.
In unincorporated
.030439, which is $2,431.12. The same home located in the City of Savannah would have property taxes of $3,143.92.
This report was updated by the Center for Regional Analysis at Armstrong Atlantic State University. The Center
(http://www.econ.armstrong.edu/cra/index.html) meets the applied research needs of Savannah's business and community organizations.
The City of Savannah provides services such as trash removal and recycling, water and sewer, and fire protection to city
Areas of concentrated research include regional economic forecasting, economic impact analysis, economic development and business
residents, tourism
while county
residents
pay for these
services
Chatham
County
residential
property
owners
benefit
expansion,
development,
survey-based
research,
andseparately.
specialty reports
on topics
of state,
regional
and local
interest.
The from
Center's
a
homestead
valuation
freeze
exemption,
which
effectively
raises
the
homestead
exemption
the
same
amount
that thewith
activities are intended to appeal to a broad range of constituencies, and the Center stands ready to enter into cooperative partnerships
property
appreciates.
Thereorganizations.
is no increase in residential property taxes until the sale of the property, at which point a new
public,
private,
and community
basis is established.
Data for this report are collected from public sources and generally lag anywhere from one to two years behind the date the report is
Some findMost
it useful
compare
property
taxes the
using
an year
Effective
Tax Rate
per $1,000
of atfair2011
market
value.This
produced.
data into this
year’s real
reportand
arepersonal
annual figures
for 2012,
latest
available,
and some
may end
or earlier.
data
maythis
not accurately
the economic
businesses
facevalue,
currently.
While
the case
Centerisfor
Regional then
Analysis
To find
rate, dividereflect
the property
tax onchallenges
the homethat
listed
above byand
itsresidents
fair market
which
in this
$230,000,
and
the Savannah
Chamber
have made
every attempt
to provide
the most
information
available,
they cannot
held
liable
multiply
the answer
by $1,000.
Unincorporated
Chatham
County
has reliable
an Effective
Tax Rate
of $10.15,
whilebethe
City
of for
omissions
or
inaccuracies.
Savannah has an Effective Tax Rate of $13.12 per $1,000 of fair market value.
This
reportmaintains
is published
the Savannah
Commerce, government,
101 East Bay aStreet
(31401), P.O.
Box 1628,
Savannah,
Georgia
Georgia
its by
modest
tax ratesArea
via aChamber
fiscally of
conservative
constitutionally
mandated
balanced
budget
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
and a pro-business climate. The state’s maximum corporate income tax rate, 6%, has not changed since 1969.
information and analysis provided in this annual update. This edition was published January 2014.
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
Savannah Area Chamber of Commerce
Savannah
Area Trends
Chamber of Commerce
2014 Economic
2014 Economic Trends
27
1
49
Contents
Sales Tax: 7% on the dollar on purchases of all goods and utilities (4% state + 2% local option + 1% Education Special
Purpose Local Option Sales Tax). Food items are exempt from state sales tax. Sales tax on food items is 3% (2% local option
ABOUT
THE DATA (See Note Below)
+ 1% Education Special Purpose Local Option Sales Tax).
Welcome to Savannah
Savannah Quick Facts
Sales Tax Exemptions: Apply to manufacturing machinery used directly in making products for sale, machinery and
equipment
used for pollution control, raw materials that will become a component of a finished product, packaging materials,
Featured
Speakers
certain
computer equipment, and standard software. A full listing of sales and use tax exemptions in Georgia can be found at:
2012
Forecasts:
http://www.georgia.org/competitive-advantages/tax-exemptions/sales-tax-and-use-tax-exemptions/
United
States and Georgia
Terry College of Business, University of Georgia
Savannah
MSARoom Tax: 6%, with the total tax for rooms 13% (7% sales tax plus 6% room tax).
Hotel/Motel
Center for Regional Analysis, Department of Economics, Armstrong Atlantic State University
Personal Income Tax: State of Georgia
Economic
Single: Trends: Savannah$230 on first $7,000 plus 6% of income over that
Compiled by the Center for$340
Regional
Analysis
at Armstrong
State
Married:
on first
$10,000
plus 6% ofAtlantic
income
overUniversity
that
Economy
Married filing separately: $170 on first $5,000 plus 6% of income over that
Gross Regional Product
Demographics
State
Taxes: Georgia does not have a unitary tax. Businesses are taxed only on income apportioned to Georgia.
Employment
Population
Corporate
Income
Household
IncomeTax: Applies ONLY to income earned in Georgia. The tax calculation is based entirely on gross receipts
earned in Georgia, the first southeastern state to adopt the Single Factor Gross Receipts formula.
Industry
Construction
Health Care
Corporate
Net Worth Tax: Also known in Georgia as a license or occupation tax, it is an annual tax based on net worth
Majorstock
Employers
and Majorearnings).
Manufacturers
(capital
plus retained
The tax is determined on a graduated scale with a minimum of $10 for a net worth less
Military
than $10,001 and a maximum of $5,000 for a net worth in excess of $22 million. Domestic corporations are taxed on 100% of
Estate
netReal
worth;
those out of state only on net worth apportioned to Georgia. Most states refer to the tax on net worth either as a
Tourism
franchise or a privilege tax.
Infrastructure
Education
Unemployment Insurance: Georgia’s unemployment insurance for newly liable employers averages 2.7% of each
Port of Savannah: Georgia Ports Authority
employee’s
first $9,500 in earnings, with a maximum weekly benefit of $330. After an employment record is established in
Small Business Investment and Development
Georgia
Taxes(36 months, a new rate based on employee separations is developed.
Transportation: Roads, Rail, Water, Air
Worker’s
Utilities Compensation: Georgia law requires employers to insure their workers against job connected accidents. This
insurance is carried with private companies unless the employer self-insures. Self-insured employers must provide proof of
Other
financial
ability
to the State Workers’ Compensation Board, which may require posting of a bond. Private insurance companies
Workforce
Development
return about 2% of the premiums received from employers to the board to cover its operating costs, and self-insured
NOTE:
ABOUT
THE
employers
pay
theDATA
board a fee (about 2% of estimated premiums) to cover these costs. A company is eligible for a 7.5%
reduction in rates if it operates as a certified drug-free workplace.
This report was updated by the Center for Regional Analysis at Armstrong Atlantic State University. The Center
(http://www.econ.armstrong.edu/cra/index.html)
meets the applied research needs of Savannah's business and community organizations.
Business and Occupation Tax:
Areas
of concentrated
research
include
economic
economic
impact
economic or
development
Every
for-profit business
in the
Cityregional
of Savannah
andforecasting,
Chatham County
must
payanalysis,
a local business
occupationand
tax business
based
expansion,
tourism
development,
survey-based
research,Profitability
and specialty
reportsrange
on topics
state,per
regional
andforlocal
interest.
Center's
upon gross
receipts
or profitability
classification.
classes
fromof$0.47
$1,000
Class
A to The
$0.97
per
activities
are
intended
to
appeal
to
a
broad
range
of
constituencies,
and
the
Center
stands
ready
to
enter
into
cooperative
partnerships
$1,000 for Class F. City of Savannah’s minimum tax is $85 per year. Maximum is $21,674 for a business with gross receipts with
in
public, private, and community organizations.
excess of $50 million. A City tax table determines the exact tax amount. The County tax table reflects a $82 minimum and a
$9,775 maximum.
Data for this report are collected from public sources and generally lag anywhere from one to two years behind the date the report is
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
Sources: Savannah Economic Development Authority, Georgia Department of Labor, Georgia Department of Revenue. Revised 10/13.
data may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis
and the Savannah Chamber have made every attempt to provide the most reliable information available, they cannot be held liable for
omissions or inaccuracies.
This report is published by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
information and analysis provided in this annual update. This edition was published January 2014.
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
50
Savannah Area Chamber of Commerce
2014 Economic
Trends of Commerce
Savannah
Area Chamber
2014 Economic Trends
28
1
Contents
Infrastructure: Transportation – Roads, Rail, Water and Air
ABOUT THE DATA (See Note Below)
Welcome
to Savannah
CAT Local
Transit Service Expedites Travel
Savannah Quick Facts
The Chatham Area Transit Authority provides transportation services to more than 3.3 million passengers annually. Per the
system’sSpeakers
“2013-2018 Transportation Development Plan,” CAT operates 21 fixed bus routes, logging 573 hours on weekdays,
Featured
479
hours
on Saturdays, and 199 hours on Sundays. CAT buses log almost 187,000 hours and travel over 2.2 million miles
2012 Forecasts:
annually.
United
States and Georgia
Terry College of Business, University of Georgia
The one-way
Savannah
MSAfare on CAT’s fixed routes is $1.50, while transfers are free. A weekly CAT card is $16, and a monthly CAT card
is $60.
Seniors
(over 65)Analysis,
and disabled
riders of
areEconomics,
charged half-fare.
A fare-free
daily University
CAT Shuttle serves downtown and the
Center
for Regional
Department
Armstrong
Atlantic State
Historic District, connecting to many CAT bus routes and the Savannah Belles Ferry service. The fare-free Liberty Parking
Economic
Trends:
Savannah
Shuttle moves
riders
downtown from the garage in a loop. More information is available at www.catchacat.org, or contact the
Compiled
by
the
Center
for Regional
Analysis at Armstrong Atlantic State University
Chatham Area Transit Authority
at 912-233-5767
Economy
Regional
Product
Bus Gross
Service
to Destinations
throughout North America
Demographics
Savannah has a station on Greyhound Lines, Inc. whose bus routes link riders to more than 3,800 destinations across the
Employment
United States, Canada and Mexico. Greyhound provides scheduled passenger service, charter bus service, package express
Population
delivery
and food
service at certain terminals. Greyhound has over 25 daily arrivals and departures out of the Savannah
Household
Income
Station. For more information, contact Greyhound Bus Lines at 912-232-2135 or 1-800-231-2222 or www.greyhound.com.
Industry
Construction
Passenger
Rail to New York and Miami
Health Care
Amtrak’s
Service
and Palmetto
trains offer daily service from Savannah to New York, Washington, DC, Charleston,
Major Silver
Employers
and Major
Manufacturers
Jacksonville,
Military Orlando, and Tampa/Miami. Silver Service trains include sleeping and dining cars. The Palmetto offers Business
Estatewith more amenities. For rates and schedules call 800-USA-RAIL or go to www.amtrak.com.
ClassReal
Service
Tourism
Infrastructure
Freight Service at the Port of Savannah
CSXEducation
Transportation and Norfolk Southern transport goods to and from the Port of Savannah. For more information contact
of Savannah: Georgia
Ports Authority
CSXPort
at 877-744-7279
(www.csx.com)
or Norfolk Southern Corp. at 912-963-6925 (www.nscorp.com). The Georgia Central
Small Business Investment and Development
Railway, a short line partner with CSX, operates tracks from Savannah to Vidalia and from Macon to Vidalia.
Taxes
Transportation: Roads, Rail, Water, Air
TaxiUtilities
Service
Savannah taxi services are readily available at the airport and most major hotels. The Savannah/Hilton Head International
Other
Airport
posts information
on the city’s taxi cab fare system at www.savannahairport.com/savannah/taxi_cab_rate_system/
Workforce
Development
Point to
point estimates
of taxi fares in Savannah may be found at http://www.taxifarefinder.com/main.php?city=Savannah-GA.
NOTE:
ABOUT
THE DATA
Water
Ferrywas updated by the Center for Regional Analysis at Armstrong Atlantic State University. The Center
This
report
The
fare-free
Savannah Belles Ferry system,
which
connected
to theneeds
fare-free
downtown business
CAT shuttle,
daily
service
(http://www.econ.armstrong.edu/cra/index.html)
meets
theisapplied
research
of Savannah's
and provides
community
organizations.
Areas
of concentrated
research
economic River.
forecasting,
economic
impact
economic
development
between
the north and
south include
banks regional
of the Savannah
The ferry
arrives
and analysis,
departs from
the City
Hall dockand
on business
River
expansion,
development,
survey-based
research,
and specialty
reports
of state,Island
regional
andSavannah
local interest.
The Center's
Street, thetourism
Waving
Girl Landing
at the Savannah
Marriott
Riverfront,
andon
ontopics
Hutchinson
at the
International
activities
intended toCenter
appealand
to aThe
broad
rangeSavannah
of constituencies,
the Center
stands
to enter
intofrom
cooperative
partnerships
Trade &are
Convention
Westin
Harborand
Resort
and Spa
everyready
15–20
minutes
7:00 a.m.
until 12.00with
public,
private,
and
community
organizations.
am, subject to weather and river traffic conditions. Service to the Waving Girl Landing is less often.
Data
thisinformation,
report are collected
from publicBelles
sources
andatgenerally
lag anywhere
from one to two years behind the date the report is
For for
more
contact Savannah
Ferry
912-447-4029
or
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
www.catchacat.org/getting_around/Ride_Free_Downtown/Savannah_Belles_Ferry/index.html
data may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis
and
the Savannah
Revised
12/2013 Chamber have made every attempt to provide the most reliable information available, they cannot be held liable for
omissions or inaccuracies.
This report is published by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
information and analysis provided in this annual update. This edition was published January 2014.
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
Savannah Area Chamber of Commerce
Savannah
Area Chamber
2014 Economic
Trends of Commerce
2014 Economic Trends
29
1
51
Contents
Air Transportation
ABOUT THE DATA (See Note Below)
Welcome
to Savannah Head International Airport
Savannah/Hilton
Savannah Quick Facts
A 15-minute drive from Historic Downtown Savannah, the Savannah/Hilton Head International Airport is at the center of a
transportation
Featured
Speakersand logistics infrastructure that includes a global port and access to more than 100 motor carriers, three
railroads,
numerous ocean-shipping lines and Foreign Trade Zone 104, which serves a growing number of customers within
2012
Forecasts:
this network.
Savannah’s
United
States and
Georgia international airport provides unparalleled service to businesses looking to centralize their operations
Terry
College
Business,
University
of Georgia
on the
East
Coastofand
puts them
in a superior
position to handle future business expansions.
Savannah MSA
FiveCenter
airlines
under Department
300 direct nonstop
passenger
flights Atlantic
every week
major U.S. cities, providing convenient
for provides
Regionaljust
Analysis,
of Economics,
Armstrong
StatetoUniversity
travel options for Savannah’s residents and guests. Every day, passengers travel to destinations worldwide through these
connecting
hub cities.
Economic
Trends:
Savannah
Compiled by the Center for Regional Analysis at Armstrong Atlantic State University
Economy
Savannah/Hilton Head International Airport Affected by Recession: Passenger and Cargo Activity
Gross Regional Product
Year-end Totals
2011 - 2012
2008
2009
2010
2011
2012
Demographics
Change
Employment
Passengers
Population
-0.0%
(enplanements/deplanements)
1,969,965
1,650,383
1,653,302 1,612,439 1,612,000
Household Income
Cargo
Industry
-9.6%
Freight/Express/Mail, tons
9,019.6
7,133.5
8,177.2
8,400.5
7,595.1
Construction
Health Care
Aircraft Operations
94,306
95,206
99,787
98,806
90,326
-8.6%
Major
Employers and Major Manufacturers
Source: Savannah Airport Commission, www.savannahairport.com 12/2013
Military
Real Estate
Despite the declines from 2011 to 2012, data for the first ten months of 2013 indicate that the total passenger count will
Tourism
increase by approximately 2% on a year-to-date basis as compared to 2012. Monthly passenger counts in 2013 were higher
Infrastructure
thanEducation
in any corresponding month in 2012 except for March.
Port of Savannah: Georgia Ports Authority
Through
November
2012, Delta
Lines holds 51.1% of the market share at the airport. US Airways is second with 26.5%,
Small Business
Investment
and Air
Development
followed
by
United
Express
(16.56%),
and American Eagle (5.7%). JetBlue is scheduled to begin serving two daily nonstop
Taxes
flights
to New YorkRoads,
(JFK)Rail,
and Water,
one daily
Transportation:
Air nonstop flight to Boston in February 2014.
Utilities
Other
Airline Flight Schedules
Workforce Development
Airline
NOTE: ABOUT
THE DATA
American Eagle
Number
Daily Nonstop Flights
Destination
1-800-433-7300
3
Dallas/Fort Worth
9
Atlanta
This reportDelta
was
updated by the Center
for Regional Analysis at Armstrong
Atlantic State New
University.
The Center
Air Lines
1-800-221-1212
3
York - LaGuardia
(http://www.econ.armstrong.edu/cra/index.html) meets the applied research needs of 1Savannah's business andDetroit
community organizations.
Areas of concentrated research include regional economic forecasting, economic impact
and business
New York – JFK
2 analysis, economic development
jetBlue*
1-800-538-2583
expansion, tourism
development, survey-based
research, and specialty reports on topics
local interest. The Center's
1 of state, regional and Boston
activities are intended to appeal to a broad range of constituencies, and the Center stands
partnerships
3 ready to enter into cooperative
Washington
DC - Dulleswith
public, private, and community organizations.
3
Chicago - O’Hare
United
1-800-864-8331
1
Houston
Data for this report are collected from public sources and generally lag anywhere from
the date the report is
2 one to two years behind
Newark
produced. Most data in this year’s report are annual figures for 2012, the latest year available,
and
some
may
end
at
2011 or earlier. This
9
Charlotte
data may not US
accurately
reflect
the
economic
challenges
that
businesses
and
residents
face
currently.
While
the
Center
for
Regional
Airways
1-800-428-4322
2 Daily, 3 Saturday, 3 Sunday
Washington
ReaganAnalysis
and the Savannah Chamber have made every attempt to provide the most
reliable
information
available,
they
cannot
be
Philadelphia held liable for
1 Daily, 3 Saturday, 1 Sunday
omissions
or
inaccuracies.
Source: Savannah Airport Commission at www.savannahairport.com, retrieved 12/2013
*jetBlue service starts February 13, 2014
This report is published by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
information and analysis provided in this annual update. This edition was published January 2014.
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
52
Savannah Area Chamber of Commerce
2014 Economic
Trends of Commerce
Savannah
Area Chamber
2014 Economic Trends
30
1
Contents
Infrastructure: Utilities
ABOUT THE DATA (See Note Below)
Welcome
to Savannah
Water and
Sanitary Sewer Services
Savannah Quick Facts
The CitySpeakers
of Savannah’s Public Works & Water Resources Bureau provides potable water and wastewater treatment for
Featured
businesses
and residents within the city and much of Chatham County. It operates a surface water potable water treatment
2012 Forecasts:
plant,
onlyand
oneGeorgia
in Coastal Georgia, with the capacity to meet anticipated development needs in the Savannah metropolitan
Unitedthe
States
area Terry
for the
foreseeable
future.University
The Industrial
and Domestic Water Treatment Plant offers 72 MGD maximum capacity. In
College
of Business,
of Georgia
addition,
bureau operates six independent groundwater systems with 52 deep wells. The bureau supplies both domestic
Savannahthe
MSA
and fire
demands
and maintains
950 miles
water distribution
main,
over State
5,500University
fire hydrants, over 18,000 valves, and
Center
for Regional
Analysis,over
Department
of of
Economics,
Armstrong
Atlantic
supplies over 78,700 individual water service connections. Through intergovernmental agreements, the bureau also supplies
Economic
Trends:
Savannahin Chatham County and portions of Bryan and Effingham counties.
water
to other
municipalities
Compiled by the Center for Regional Analysis at Armstrong Atlantic State University
Economy
Sanitary sewer collection and treatment is provided throughout the city and portions of unincorporated Chatham County. In
Grossthe
Regional
addition,
systemProduct
treats sanitary sewage for other municipalities through intergovernmental agreements.
Demographics
Employment
The bureau’s wastewater treatment capacity, currently 37 MGD, is sufficient to meet the requirements of anticipated growth.
Population
The Household
wastewaterIncome
system includes over 730 miles of gravity sewer mains, over 120 miles of sewer force mains, 18,000
manholes,
and
4
water
reclamation plants. The plants include the following:
Industry
Construction
President
HealthStreet
Care Water Reclamation Plant 27 Million Gallons per Day maximum capacity;
Wilshire
/ Windsor
Water
Reclamation
Plant 4.5 Million Gallons per Day maximum capacity;
Major
Employers
and Major
Manufacturers
Georgetown
1.4 Million Gallons per Day maximum capacity;
Military Water Reclamation Plant
Real Estate
Crossroads
Water Reclamation Plant
4.5 Million Gallons per Day maximum capacity
Tourism
Infrastructure
The
President Street Plant and the Crossroads Plants treat the wastewater to re-use / reclaimed water quality. Savannah is
Education
one of
Georgia’s largest suppliers of reclaimed water.
Port of Savannah: Georgia Ports Authority
Business Investment and Development
The Small
Bureau
also manages the wastewater Pre-Treatment and FOG (Fats, Oils, and Grease) Programs. President Street
Taxes
Wastewater Treatment Plant, Savannah’s main wastewater treatment facility treats an average of 18 MGD up to 27 MGD,
Transportation: Roads, Rail, Water, Air
whichUtilities
is enough to serve much of the city.
Other
The Web
site for
the Savannah Water & Sewer Bureaus is http://www.savannahga.gov/cityweb/wsweb.nsf
Workforce
Development
NaturalABOUT
Gas THE DATA
NOTE:
Georgians receive competitive pricing for natural gas service with this deregulated industry. The natural gas marketers that
operate
in Georgia
deliver their
through
pipeline system
operatedAtlantic
by the Atlanta
Gas Light Company,
This
report
was updated
by product
the Center
fora natural
RegionalgasAnalysis
at Armstrong
State University.
The Center
which
is
responsible
for
repairing
leaks
and
responding
to
other
gas
emergencies.
The
latest
survey
of
gas pricesorganizations.
for each
(http://www.econ.armstrong.edu/cra/index.html) meets the applied research needs of Savannah's business and community
marketer
is available research
on the Public
Service
Commission’s
website ateconomic
http://www.psc.state.ga.us/gas/pricecard.asp.
Areas
of concentrated
include
regional
economic forecasting,
impact analysis, economic development and business
expansion, tourism development, survey-based research, and specialty reports on topics of state, regional and local interest. The Center's
activities
are intended to appeal to a broad range of constituencies, and the Center stands ready to enter into cooperative partnerships with
Electricity
public,
private,
A subsidiaryand
of community
one of theorganizations.
nation’s largest investor-owned utility systems, Southern Company, Georgia Power supplies
electricity to
more than 280,000 commercial, industrial and residential customers in its 15-county Coastal Region.
Data
for this report
are collected
from public
sources
and generally
one to twoIt years
the of
date
the report
Furthermore,
Georgia
Power serves
2.39 million
customers
in 155lagof anywhere
Georgia’s from
159 counties.
offers behind
a number
services
for is
produced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
home or business, from energy efficiency assistance to summary and budget billing options. For more information, go to
data may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis
www.georgiapower.com.
and the Savannah Chamber have made every attempt to provide the most reliable information available, they cannot be held liable for
omissions or inaccuracies.
Electricity is a competitive industry for certain industrial and commercial customers. Businesses with a load of 900 kW or more
frequently
choosebytheir
in Georgia.
Electric membership
in the
Savannah
are listed
at
This
report iscan
published
the electricity
Savannahsupplier
Area Chamber
of Commerce,
101 East Baycorporations
Street (31401),
P.O.
Box 1628,area
Savannah,
Georgia
www.georgiaemc.com
31402-1628, 912.644.6400. The Chamber would like to thank the many Savannah businesses and organizations that contributed to the
Revised 12/2013
information
and analysis provided in this annual update. This edition was published January 2014.
Additional
and contact
information are available on the Chamber’s Web site: www.savannahchamber.com.
Savannahresources
Area Chamber
of Commerce
2014 Economic Trends
Savannah Area Chamber of Commerce
2014 Economic Trends
31
1
53
Contents
Workforce Development Resources
ABOUT THE DATA (See Note Below)
Welcome
to Savannah
Program
and Initiatives
Savannah Quick Facts
Workforce development is a top priority in Savannah. Strong academics and technical skills, coupled with lifelong learning and
learning
within a workplace context are key for students to have a productive future. Here are a few of the programs that
Featured
Speakers
strengthen
education and training by providing apprenticeships, internships, job shadows, partnerships or character
2012 Forecasts:
development.
United
States and Georgia
Terry College of Business, University of Georgia
Savannah
MSA
Savannah
Compact
Center
for President
Regional Analysis,
Bill Hubbard,
and CEODepartment of Economics, Armstrong Atlantic State University
Savannah Area Chamber of Commerce, 101 E. Bay Street, P.O. Box 1628 (31402-1628), Savannah, GA 31401
Economic
Trends: Savannah
P: (912) 644-6422;
F: (912) 644-6493; [email protected]; www.savannahchamber.com
Compiled by the Center for Regional Analysis at Armstrong Atlantic State University
Population Served: Businesses, students and educators.
Economy
Services:
Multi-year
agreement between the business and education communities to improve outcomes for SCCPSS students.
Gross Regional
Product
Demographics
Junior
Achievement
Employment
Jonathan
Barrett, Vice President of Southern Georgia, 6001 Chatham Center Drive, Suite 150, Savannah, GA 31405
Population
P: (912)
790-7822;
Household IncomeF: (912) 790-0446; [email protected]
Industry
Population Served: K-12
Construction
Services:
Provides workplace curriculum, training for teachers and volunteers, and hands-on activities to show students the
Health Care
relevance
of, and relationship between, what is learned in the classroom and what is required in the workplace.
Major Employers and Major Manufacturers
Military
Youth
RealApprenticeship
Estate
Audrey
Fuller, Workforce Learning Coordinator, Savannah-Chatham County Public School System
Tourism
151 Coach Joe Turner Street, Savannah, GA 31408
Infrastructure
P: Education
(912)-395-6769; F: (912) 201-2331; [email protected]
Population
Served: Students,
businesses
Port of Savannah:
Georgia Ports
Authorityand educators in Chatham County.
Small Business
and Development
Services:
ProvidesInvestment
an opportunity
for juniors and seniors to start preparing for a career while still in high school. Students who
Taxes
have
competed courses related to a career work an apprenticeship. Youth Apprenticeship enables employers to play an active
Water,
Air workforce.
roleTransportation:
in shaping theRoads,
qualityRail,
of their
future
Utilities
Other
Learning for Life; Exploring
Workforce Development
Barbara Foley, 11900 Abercorn Street, Savannah, GA 31419
P: (912) 308-7892; F: (912) 920-4030; [email protected]
NOTE: ABOUT THE DATA
Population Served: Savannah-Chatham County Public School System K-12 students
Services: Career and character education, school-business partnership development.
This report was updated by the Center for Regional Analysis at Armstrong Atlantic State University. The Center
(http://www.econ.armstrong.edu/cra/index.html) meets the applied research needs of Savannah's business and community organizations.
Areas
of concentrated
regionalInvestment
economic forecasting,
Coastal
Workforceresearch
Servicesinclude
(Workforce
Board) economic impact analysis, economic development and business
expansion,
development,
survey-based
and specialty reports on topics of state, regional and local interest. The Center's
601 Easttourism
66th Street,
Suite 201,
Savannah,research,
GA 31405
activities
are351-6379;
intended toF:appeal
a broad range
of constituencies, and the Center stands ready to enter into cooperative partnerships with
P: (912)
(912) to
525-1564;
www.coastalworkforceservices.org
public,
private,
and
community
organizations.
Population Served: Eligible adults and youths in Region 12 (Bryan, Bulloch, Camden, Chatham, Effingham, Glynn, Liberty,
Long and McIntosh counties) under the Workforce Investment Act legislation.
Data for this report are collected from public sources and generally lag anywhere from one to two years behind the date the report is
Services: Develop workforce education and training strategies, create partnerships and ensure universal access through “Oneproduced. Most data in this year’s report are annual figures for 2012, the latest year available, and some may end at 2011 or earlier. This
Stop” centers. Programs include Youth Programs, Dislocated Worker and On-the-Job-Training.
data may not accurately reflect the economic challenges that businesses and residents face currently. While the Center for Regional Analysis
and the Savannah Chamber have made every attempt to provide the most reliable information available, they cannot be held liable for
omissions
SCMPDor-inaccuracies.
Savannah Impact Program
DeLeah Blake, 14045 Abercorn St, Savannah, GA 31419
ThisP:report
is published
by the Savannah Area Chamber of Commerce, 101 East Bay Street (31401), P.O. Box 1628, Savannah, Georgia
912-651-4350;
[email protected]
31402-1628,
The and
Chamber
like to thank the many Savannah businesses and organizations that contributed to the
Population912.644.6400.
Served: “At risk”
“high would
risk” youth.
information
and
analysis
provided
in
this
annual
update.
This edition
was published
January 2014.
Services: Prepares school-age youth for post-secondary
education
and employment
upon completion of high school.
Additional resources and contact information are available on the Chamber’s Web site: www.savannahchamber.com.
54
Savannah Area Chamber of Commerce
2014 Economic
Trends of Commerce
Savannah
Area Chamber
2014 Economic Trends
32
1
SavannahChamber.com
VisitSavannah.com
101 East Bay Street · Savannah, GA 31401
P.O. Box 1628 31402-1628
912.644.6400 · 912.644.6499