Savannah Chamber

35 (2) growth of both the U.S. and Georgia economies, (3) the area's economic structure, (4) announced expansions by several existing companies, (5) Columbus State University, (6) a sustainable upturn in homebuilding and home prices, (7) and more entrepreneurial activity. The economy is not very dependent on exports – 3.2 percent of GDP – and therefore is not overly vulnerable to trade shocks. The cost of living are low and the quality of the workforce is improving. The age structure of the population is very favorable for growth with larger than average proportions of Generation Z, Millennials, and Generation X generations and lower than average proportions of Baby Boomer and Slient/Greatest generations. Due to the presence of Fort Benning, government accounts for 35.6 percent of nonfarm earnings compared to only 16.5 percent and 16.6 percent for the state and nation, respectively. The area's largest employers are Fort Benning, TSYS, AFLAC, Inc. Columbus Regional Healthcare System, and St. Francis Hospital Inc. The leading high-wage industries are the federal government, nondepository credit intermediation, insurance carriers, and offices of physicians. The main negatives include negative net migration, subpar levels of educational attainment, a low proportion of high-tech jobs, and a relatively undiversified economy. The Columbus MSA includes Chattahoochee, Harris, Marion, and Muscogee counties in Georgia and Russell County in Alabama. The U.S. Department of Defense recently reduced the Army from 490,000 to 476,000 soldiers. As a part of that reduction, Fort Benning was slated to lose the 3 rd Brigade, but kept the Infantry Battalion Task Force, which limited the net loss to 2,852 positions. Those cuts were completed in mid-2016. In 2017, there was quite a bit of good news in terms of expanding the base's mission and staffing levels. Base activity therefore shifted from an economic headwind in 2016 into an economic tailwind in 2017. More specifically, the U.S. Army located its new Security Force Assistance Brigade at Fort Benning, adding about 530 personnel. The U.S. Army also located its Security Force Assistance headquarters at Fort Benning, bringing 15 additional personnel. The U.S. Army also announced that Fort Benning would receive the Military Advisor Training Academy, which will train soldiers and officers for the Security Force Assistance mission, adding 70 personnel, in addition to the students that will go through the program. The recent omnibus bill raises defense spending well above the caps sit in the Budget Control Act. In 2019, the prospects for Fort Benning therefore are very good and no cuts are on the horizon. Columbus derives much larger than average shares of economic activity from two private-sector industries: (1) financial activities, and (2) leisure and hospitality. Loan growth, rising asset values, the gradual unwinding of the Federal Reserve's unprecedented easing, recent wealth gains by many households, financial deregulation, and tax reform favor top-line growth for firms that provide financial activities in 2019. The area's hospitality industry also will do well in 2019. The fundamental drivers of business travel are positive: faster revenue growth will occur across most economic sectors; corporate profits will increase; there will be more new business formation, expansion, and relocation. Spending on business travel will rise as corporate staffing levels rise. The prospects are very good for leisure travel. Job and personal income growth will be fast enough to spur people to travel more for short trips and vacations. Household wealth will increase courtesy of rising home prices, more savings, and higher stock market valuations, which gives people the means and confidence to spend more on discretionary leisure travel. In addition, the list of local attractions is long and very compelling. It includes the Chattahoochee Riverwalk, the Coca Cola Science Center, the Columbus Museum, the National Civil War Naval Museum, the National Infantry Museum and Soldier Center, RiverCenter, Whitewater Express, the Springer Opera House, and Uptown Columbus. The September 2018 announcement by Global Callcenter Solutions that it will open a call center in Columbus, creating 600 jobs in customer service and operations. Another positive for Columbus is that many existing enterprises have announced expansion plans that will be building out over several years. In 2018, Gildan Yarns announced an expansion of its manufacturing facility in Columbus that will add 80 jobs. An expansion by InComm – a prepaid prepaid product and payment technology company based in Atlanta – will create 55 jobs in Columbus and 100 jobs in Atlanta. Pratt & Whitney announced in 2017 that it would create over 500 jobs to expand its facility in Columbus. In addition, the John B. Amos Cancer Center' expansion and renovation will help to ensure that cancer patients spend their health care dollars in Columbus. Less positively, there several significant layoffs were announced in 2018, including NCR, Denim North America LLC, and First Data Remitco.

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