Savannah Chamber

33 16 In terms of new single-family home construction, the housing recovery began in 2011 and gained traction in 2012- 2014, relapsed in 2015-17, gained traction in 2018, but relapsed in 2019. Due to job losses, weak demographic trends, and an adequate supply of existing single-family homes Albany's homebuilders will start fewer new homes in 2020. Low mortgage rates will help limit decreases in homebuilding activity, however. The Albany MSA is not overly dependent on housing-related jobs – 8.8 percent of total employment in Albany compared to 9.6 percent of all U.S. jobs, but any slowdown in homebuilding limits the area's immediate prospects for growth. Athens The economic structure of Athens tilts towards higher education and healthcare. The local economy does not depend heavily on inherently cyclical industries such as manufacturing, construction, or transportation and logistics. The economy also is not very dependent on exports – 3.0 percent of GDP – and therefore is not overly vulnerable to trade shocks. Machinery and chemicals are the area's main exports. The primary export markets are the Canada, Mexico, and the European Union. Due to the presence of the University of Georgia as well as less dependence on inherently cyclical economic sectors Athens' economy does not overheat during the good times and does not tank during the bad times. Athens' economy is less cyclical than both the national economy and the state's economy. Occasionally, the State of Georgia's budget gets hammered by recessions, but cuts in appropriations for higher education typically lag the business cycle as do the increases in state appropriations once the overall economic situation improves. Those lags help to even out economic activity in Athens over the course of all but the worst recessions. When times get very tough increases in tuition and fees help to offset cuts in state appropriations for higher education. When unemployment rates spike the demand for higher education often increases. In addition, regardless of the gyrations of the business cycle spending for basic healthcare continues to grow due to favorable demographics and technological advances. The upshot of Athens' economic structure is economic stability, which greatly reduces the risks for businesses and households. Additional strengths include, close proximity to the Atlanta MSA, population growth, a highly educated workforce, the innovation ecosystem, and low business and living costs. In 2019, Athens landed two large economic development projects, which improves Athens's prospects for growth in 2020. Boehringer Ingelheim announced that it would expand its existing footprint in Athens, creating over 100 new jobs at its manufacturing and research and development facility. Boehringer Ingleheim is a leading animal health company that focuses on researching, developing, manufacturing, and marketing new medications for human and veterinary health care. The primary focus of its facility in Athens is animal health. Wayfair, an e-commerce retailer of products for the home, announced that it will create 500 jobs in a customer support facility – a call center – in Athens. The importance of Athens' proximity to and high economic integration with the Atlanta MSA will work to the Athens MSA's advantage in 2020 and beyond. The two MSA's economies are very highly integrated. Commuter flows between Athens and Atlanta illustrate their interdependence – 7.4 percent of jobs held by people who live in Athens are located in Atlanta and people commuting from Atlanta occupy 9.5 percent of Athens' jobs. Weaknesses include the lack of interstate-quality highways, low economic diversity, a relatively narrow base of job growth, low per capita income, and a shrinking manufacturing industry. The area's largest employers are the University of Georgia, St. Mary's Hospital, Caterpillar, Pilgrim's Pride Corp, and the Athens Regional Medical Center. The area's leading high-wage industries include offices of physicians and pharmaceutical and medicine manufacturing. Leading mid-wage industries include local government, general medical and surgical hospitals, and animal slaughtering and processing. The area's leading low-wage industries include state government and restaurants. The Athens MSA includes Clarke, Madison, Oconee, and Oglethorpe counties. In 2020, employment in Athens will increase by 0.6 percent – about 600 jobs. State appropriations for higher education will not increase very much in FY 2021 and may decline. That limits UGA's and in turn Athens short-term prospects for economic growth. In contrast, the outlook for health services is excellent. The acquisition of Athens Regional Medical Center (ARMC) by Piedmont improves its balance sheet thereby enhancing prospects for expansion. Piedmont Athens Regional Medical Center is rated as high performing in four adult procedures and conditions. Recently, St. Mary's hospital was designated Georgia's large hospital of the year. Athens will benefit from its role as the regional medical service center for northeast Georgia. The establishment of the 56-acre UGA Health Science Campus in partnership with Augusta University will help Athens' healthcare industry expand its reach into rural and exurban areas where the

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