Savannah Chamber

34 17 population skews older than in the core of the MSA. To address Georgia's growing shortage of physicians, the Augusta University/University of Georgia Medical Partnership plan to expand class size in Athens by 50 percent in 2021. The Health Science Campus will encourage further development of clinical healthcare and the biomedical industry. The campus is the former site of the U.S. Navy Supply Corps School, which moved to Rhode Island in 2011 and currently houses the medical partnership as well as the UGA College of Public Health. The 2012 establishment of UGA's College of Engineering contributes directly to region's growth through its operating budget, its personnel budget, and student spending. In addition, the College of Engineering contributes in terms of advancing the area's economic development through technology transfer, technical assistance, and research. UGA's newest College already has about 2,200 undergraduate and graduate students. The College of Engineering enhances entrepreneurial development and the climate for innovation. It helps Athens recruit high tech companies and venture capital. Similarly, Athens' potential for high-tech development is enhanced by the success of UGA's Computer Science Program, which is one of the fastest growing majors on campus. Athens Technical College also has very strong technology programs. UGA ranks first in the nation for the number of new products brought to market based on university research and UGA ranks fourth among U.S. universities for the number of new intellectual property licenses to industry. Although not scheduled for completion until 2021, UGA is transforming its Spring Street Building into an innovation center that will promote innovation and entrepreneurship among faculty, students, and private business and industry. Because domestic economic conditions will be less favorable in 2020 than in recent years, Athens may see fewer expansions by its existing employers. There are exceptions, however. High-tech employment will be expanding the Athens MSA. A cluster of biotechnology industries with links to UGA is gradually developing critical mass, boosting prospects for additional growth of the life-sciences employment in Athens. For example, Boehringer Ingleheim – an animal health company – will add over 100 manufacturing and research and development jobs to its operations in Athens. Attached to the Classic Center the Hyatt Place hotel will bring more high-end business meeting and special events to the Classic City. More exhibit space at the Classic Center helps Athens attract more and larger conventions and trade shows. With local government budgets in good shape, the Classic Center will host more local government meetings, but cuts in agency budgets will reduce attendance by state government employees. Upgrades to the Georgia Center for Continuing Education and Hotel will make the UGA Campus a more attractive place to host academic meetings and conferences. Households will spend more on travel. The economic contribution of the leisure and hospitality industry will grow relative to the overall size of Athens' economy. The growth of the hospitality industry also reflects Athens' successful development as an affordable regional entertainment center, the music and dining scene, college sports, downtown shopping, and many cultural events and attractions. There are some challenges to Athens' growth. The area's low unemployment rate makes it difficult to fill open positions and can make it difficult to recruit new companies. Another challenge stems from the development of competing retail hubs elsewhere in Northeast Georgia (e.g., the Mall of Georgia) as well as the growing share of retail dollars spent online. Athens' role as a major regional hub for retail shopping has been declining for many years and will remain under assault in 2020. Another concern for Athens is that the information, financial activities, and professional and business services industries are undersized relative to the overall size of the area's economy. That will limit the impetus to the region's overall growth from these industries. In addition, the information industry has been shrinking relative to the overall size of Athens' economy. Athens is extremely dependent on state government jobs. State government accounts for 21.7 percent of the MSA's total non-farm earnings. The very high dependence on state government employment mostly reflects the presence of the University of Georgia. High dependence on state spending is an advantage when state revenues are on the upswing but can be a disadvantage when state revenue collections slow. In mid-201 9, heightened uncertainty regarding state revenue collections resulted in a decision by Governor Kemp to cut state agencies spending by four percent in FY 2020 and six percent in FY 2021. Fortunately, enrollment-based activities at UGA will be largely exempt

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