Savannah Chamber

36 19 Fort Gordon is growing very fast and it adds substantially to the Augusta's prospects for growth. Fort Gordon also adds to the area's supply of well-trained, skilled workers. Over the next few years, Fort Gordon will tap into the expansion of federal defense spending. The U.S. Army's 2013 decision to focus its cyber-related operations, development, and training in Augusta shifted the regional economy onto a new, substantially higher and more prosperous, growth trajectory, but the shift will continue to be gradual rather than abrupt. The push to economic growth arising from the move of the U.S. Army's Cyber Command will occur over many years because takes a long time to implement the mission and build out the facilities. The push to growth has begun, however. For example, the Cyber Center of Excellence is already operational. In late 2016, the Cyber Command broke ground on its new headquarters. The facility will be completed in mid-2020 and the command will move from Fort Belvoir, Virginia to Fort Gordon shortly thereafter. The area's construction industry will benefit substantially. In addition to the direct creation of military and civilian jobs at the Cyber Command, the relocation of the Cyber Command makes Augusta a place where military contractors congregate. For example, Unisys provides services to the U.S. Army at Fort Gordon. Similarly, BurningCastle LLC was awarded a contract with the U.S. Army to provide IT and logistics training at Fort Gordon and will create 50 jobs in IT and cybersecurity instruction. Other defense contractors are opening offices and expanding operations. Such activities will intensify as the Cyber Command becomes operational. Meanwhile, the State of Georgia is focusing its cyber activities in Augusta. The opening of the Georgia Cyber Center at Augusta University's Riverfront Campus will spur innovation and train cybersecurity workers to support the large cluster of cyber security activity that is developing in the Augusta MSA. In 2019, Parsons Corp – a cybersecurity technology provider – opened a new office in the Georgia Cyber Center to train operators supporting the U.S. Army Cyber Command and its operational units at Fort Gordon. The strong recent performance and good prospects for Augusta's economy reflect many major private-sector economic development projects that were announced over the last few years: In 2019, Acoustics & Insulation Techniques announced that it will create 45 manufacturing jobs in Augusta. In mid-2019, Union Agener announced that it would restart production of the former Elanco plant, which employed about 280 prior to recent layoffs. Employment at the Union Agener plant could rebound to about 200 sometime in 2020. In mid-2018, the Sitel Group announced plans to hire 500 additional full-time employees at its Augusta call center. Once filled, the new hires will bring Sitel's total employment in August to 1,200. The Sitel Group added 400 positions in the preceding 12 months. In addition, in mid- 2018, Manus Bio announced the creation of up to 50 jobs through the acquisition of a manufacturing facility in Richmond County. Less positively, there have been some major layoffs. For example, Resolute Forest Products decision in mid-November to shut down of its newsprint mill in Augusta will eliminate 160 jobs. Georgia Pacific's decision not to rebuild its plan in Thomson after a massive fire will cost the area about 100 jobs. The closure of Hollander Sleep products manufacturing and distribution facility in Thomson cost the area 225 jobs. Although Augusta's undersized information and financial activities industries spared the region from the restructuring that has plagued these sectors, it also may limit opportunities for renewed growth in those industries. Low per capita personal income and low overall levels of educational attainment are also negatives for the area. The housing situation looks good. Housing activity and home prices will be on the upswing in 2020, which bodes well for homeowners, homebuilders, home renovators, and businesses that depend on consumer spending. The peak-to- trough decline in single-family home prices was 15 percent. The decline in home prices was smaller than experienced by either the state or the nation, but despite fast-paced economic growth Augusta's home prices have been slower to recover. Existing home prices peaked in the first quarter of 2009 and bottomed out in the first quarter of 2014. In the third quarter of 2019, Augusta's home prices were seven percent above their peak level, and were up 3.9 percent on a year-over-year basis. Due to low mortgage rates, continuing population and job growth, the pace of home price appreciation will not slow very much in 2020. Sustained increases in home prices will support consumer spending – especially on home improvements – and entrepreneurial activity. In terms of new construction, the upturn in single-family homebuilding began in 2013 and gained traction in 2014-18 but lost some ground in 2019. Prospects are good for Augusta's homebuilders in 2020. Optimism for homebuilders and home prices reflects the 3,200 jobs added in 2017, the 4,100 jobs added in 2018, the 3,600 jobs added in 2019, and the 1,200 jobs expected in 2020. Due largely to job growth, the net migration of people to Augusta is very positive. In order, the major migration flows into Augusta are from Columbia SC, Atlanta, Honolulu HI, Salinas CA, Killeen TX,

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