Savannah Chamber

41 The housing bust was severe in Savannah, but the area's housing recovery is strong. Single-family home prices peaked in the second quarter of 2007 and bottomed out in the third quarter of 2012. From peak to trough, home prices declined by 23 percent. As of the third quarter of 2018, single-family home prices in the Savannah MSA were 6 percent above their pre-Great Recession peak levels. Existing single-family home prices in the Savannah MSA increased by 7 percent between the third quarter of 2017 and the third quarter of 2018. In terms of new construction, the upturn in single-family homebuilding began in 2011 and gained traction in 2012-2018. Due to favorable demographic trends, the outlook for homebuilders is positive for 2019, but the proportion of employment related to housing is well below the national average. That will limit the push to the MSA's overall growth from the housing industry. The economic outlook for Savannah is good, but a retreat from globalization or a trade war could be very tough on Savannah because of the area's very high dependence on international trade. The Port of Savannah generates large economic impacts, especially for the transportation, distribution, logistics, and warehousing industries. Exports account for almost 23 percent of the Savannah MSA's GDP. Savannah is one of the nation's most export dependent metropolitan areas. The main export is transportation equipment, much of which is destined for Asian and the European Union. Valdosta In 2019, Valdosta's employment will increase by 1.3 percent, or 700 jobs, which is similar to the 1.4 percent and 1.0 percent growth experienced in 2017 and 2018, respectively. Moody Air Force Base, Valdosta State University, agriculture, logistics, and leisure and hospitality are the area's most dependable economic drivers. Health care is likely to emerge as a new economic driver. The area's health care industry can grow by expanding its share of the local market. Valdosta's healthcare industry can also prosper by pulling more patients from surrounding areas. Structurally, the Valdosta metropolitan area is extremely dependent on government jobs. The leisure and hospitality industry also accounts for a substantially larger than average share of the area's nonfarm jobs. Retail trade and transportation also make large contributions to the local economy. In contrast, professional and business services, financial activities, and wholesale trade account for relatively low shares of nonfarm employment. In addition, Valdosta is not overly depending on manufacturing jobs, with its share of manufacturing jobs slightly below both the U.S. and Georgia averages. Valdosta is not too dependent on international trade. Exports account for only 3.3 percent of the area's GDP. Chemicals and food products are the area's main exports. The area's top employers are Moody Air Force Base, South Georgia Medical Center, Fresh Beginnings, Valdosta State University, and Wild Adventures. The leading high-wage industries are the federal government and offices of physicians. The Valdosta MSA includes Brooks, Echols, Lanier, and Lowndes counties. In 2018, continued growth in consumer spending will ensure that Valdosta benefits from its traditional role as a retail hub for extreme Southwest Georgia. Retail jobs account for a somewhat higher share of economic activity in the Valdosta MSA than in either the state or the nation. But, like traditional retailers everywhere, Valdosta's retailers will face more competition from electronic commerce, which will limit the push to retail job growth from expected increases in consumers' spending. Because Valdosta is a small MSA, the actions for the better, or for the worse, by one major company can determine the area's actual economic performance, which makes the overall business environment riskier. There have not been any major economic development projects announced in recent years, but a number of small economic development projects and organic growth will contribute to job growth in 2019. For example, in mid-2018, Metal Benderz decided to relocate its existing manufacturing operations in Marietta to Valdosta, bringing about 50 jobs within 2 years to Lowndes County. Metal Benderz said that Wiregrass Technical College factored favorably into their decision to locate in the Hahira Business Park. In early 2018, Georgia Beer Company broke ground on its first brewery in Valdosta-Lowndes County. The company plans to create between 5 and 10 jobs within 2 years. In December 2017, American Drill Busing announced that it was expanding its manufacturing facilities in Valdosta to add additional product lines. The American Drill Busing expansion, when complete, will add about 35 jobs. In October 2017, Martin's Famous Pastry Shoppe

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