Savannah Chamber

2019 Economic Trends

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40 In late 2018, Wayfair Inc. announced that over the next five years it will create 1,000 jobs at a new warehouse/distribution facility. In 2018, Gulfstream announced plans to build a new service center that will create about 200 jobs. The service center will open in mid-2019. The $2 billion expansion of the Elba Island LNG terminal will phase into service in late 2018 through the third quarter of 2019, supporting at least 100 new jobs. In 2018, Floor and Décor opened its new 1.4 million square foot distribution center that will eventually expand to 2.5 million square feet. In 2018, Perdue Foods opens a regional distribution center in Rincon, creating over 150 jobs. In 2018, Candor USA announced that they would move their corporate headquarters from Rome to Savannah, initially bringing 20 jobs. In 2017, Safavieh announced a major expansion. Over 3 years, Safavieh will build a 1.1 million square foot warehouse and distribution facility adding 200 jobs, which will triple its current payroll of about workers. Bryan County is doing very well in terms of attracting new companies. C&H Precision Weapons recently moved from LaBelle, FL to Richmond Hill. In addition, VMInnovations, an e-commerce company, will open a fulfillment center in Interstate Centre II, creating 50 jobs within 5 years. Dorel Home Furnishings recently establish its east coast distribution center in Bryan County. Less positively, Conifer Health Solutions, Sodexo, and Anthem announced layoffs in 2018. It is worth noting that Savannah is somewhat exposed to the restructuring of the government sector. In the Savannah MSA, Government accounts for 19.1 percent of nonfarm earnings compared to 16.6 percent for the state as a whole. More specifically, the share of federal military, state, and local government earnings are above the statewide average, but the share of federal civilian government earnings is below the statewide average. The federal military exposure reflects the presence of Fort Stewart/Hunter Army Airfield. In the short-term, defense spending will increase and the base is not in danger of closure or major cuts. The tilt towards government is a positive for the Savannah MSA in 2019 but makes the area's long-term outlook less certain. Savannah's growth prospects are good. Savannah's unique ambiance and transportation infrastructure make it an attractive place to live and do business. The thriving historic district and waterfront developments draw visitors. According to Airbnb, in the U.S., Savannah is at the top of many people's dream destinations. Travel+Leisure magazine ranks Savannah as the third best travel destination in the U.S. Hotel development has been and will continue to be very strong. Retirees will continue to be an important force 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. Net migration is very strong. The largest migration flows to Savannah are from Atlanta, Hinesville, Hilton Head SC, Charleston SC, and Austin TX. Gulfstream Aerospace also is a very powerful driver of the metro area's economy, providing thousands of high-quality jobs. Due to the presence of Georgia's Ports, Georgia is the nation's seventh largest importing state and eleventh largest exporting state. Port operations support manufacturing and foster growth of Savannah's logistic, distribution, and warehousing industries. In the Savannah MSA, Georgia's ports support almost 36,000 jobs. The statewide economic impact of Georgia's ports is over 369,000 jobs. Deepening the Port of Savannah to 47 feet will preserve these port- dependent and port-related jobs. Barring a full-blow trade war, more spending by U.S. consumers and increases in industrial production will cause cargo volumes at the Port of Savannah to increase in 2019. Moreover, the Savannah Harbor Expansion Project positions the Port of Savannah for long-term growth. The Port of Savannah is already preparing for increased activity. Super Post- Panamax ship-to-shore cranes and rubber-tired gantry cranes began arriving in 2016. The new Jimmy DeLoach Parkway provides a four-lane limited access truck route between the Port of Savannah and I-95 and I-16. The proposed Mid-American Arc will enhance intermodal rail service to various markets in the Southeast and Midwest. Savannah's destiny is to become 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. The increasing number of direct air connections bodes very well for the expansion of the hospitality industry.

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