Savannah Chamber

39 22 RiverCenter, Whitewater Express, the Springer Opera House, and Uptown Columbus. The fundamental drivers of business travel are less encouraging: a slowdown in revenue growth will occur across most economic sectors; corporate profits will decrease; there will be less new business formation, expansion, and relocation. In 2019, there were several noteworthy economic development project announcements. Daechang Seat Company announced a 100-job manufacturing facility in Phenix City, Alabama. In early 2020, Califormulations – a food and beverage company – will open a new facility in the Muscogee Technology Park in Midland creating about 30 jobs. Mercer University announced plans to expand its two-year campus in Columbus to a 4-year campus. Norwegian Cruise line expanded its at-home reservation agent call center operations to Columbus. In addition, projects announced in prior years will continue to support the area's economy. For example, Global Callcenter Solutions announced in 2018 that will open a call center, creating 600 jobs in customer service and operations. Pratt & Whitney announced in 2017 that it would create over 500 jobs to expand its facility in Columbus. Less positively, two closures reduce the prospects for the Columbus MSA's growth. Exide Technologies closed its plant on Joy Road, laying off about 250 employees. Yanfeng Global Automotive Interiors closed its plant in Harris County, laying off 71 workers. The outlook for healthcare is good, but weak population trends limits the potential for growth. Nonetheless, the John B. Amos Cancer Center' expansion and renovation will help to ensure that cancer patients spend their health care dollars in Columbus. In addition, the VA will begin construction of an outpatient clinic in 2019 with an estimated completion date of 2021. The new VA outpatient clinic also will help to ensure that veterans obtain more of their health care in Columbus. Columbus State University is a pillar of the local economy that is a major source of economic growth. The economic impact of Columbus State University on the Columbus MSA increased from 2,643 jobs in the 2013 fiscal year to 3,316 jobs in the 2018 fiscal year. The 25 percent gain over five years is impressive. In 2020, CSU will continue to grow as will its economic impact. Although the housing bust was less severe in Columbus than for the state as a whole, it lasted much longer. In Columbus, single-family homebuilding remained in recession through 2016. Due job growth, a very modest upturn in single-family homebuilding in Columbus began in 2017 and it was sustained through 2019. The homebuilding industry will see very modest gains in 2020. The shift of homebuilding from a significant economic headwind into a slight tailwind is a notable development. Regional economic growth is difficult to sustain without the participation of the housing industry. The home price decline was not too severe in Columbus, but the home price recovery has been weak. Single-family home prices peaked in the first quarter of 2008 and bottomed out in the second quarter of 2014. From peak to trough, single family home prices declined by 16 percent in the Columbus MSA. The decline in statewide home prices was much worse. In Columbus, home prices are recovering very slowly, however. Locally home prices began to recover in mid-2014, but mostly due to job losses home prices fell again in mid-2015. In spring 2016, home prices turned up again. As of the third quarter of 2019, single-family home prices in the Columbus MSA were still five percent below their peak level. It is encouraging, however, that the Columbus MSA's housing prices were 3.7 percent higher in the third quarter of 2019 than in the third quarter of 2018. Depressed home prices will restrain entrepreneurial activity and consumer spending, especially spending on home improvements. Nonetheless, home prices may fully recover by late 2020 or early 2021. In 2020, new home construction activity will increase very modestly. The improving housing situation reflects the 600 jobs added in 2017, the 1,800 jobs added in 2018, the 100 jobs added in 2019, and the 100 jobs expected in 2020, growth at Fort Benning, and low mortgage rates. Gainesville Gainesville's recent economic performance is outstanding: 5.3 percent job growth in 2015, 3.2 percent job growth in 2016, 3.7 percent job growth in 2017, 3.0 percent job growth in 2018, and an estimated 4.2 percent job growth in 2019. Even better, the area's economic prospects are excellent, but job growth will slow. In 2020, Gainesville-Hall County will add about 1,400 jobs – a 1.5 percent gain. Over 2019-2020, Gainesville will be the state's fastest growing metro area. The area's top employers include Northeast Georgia Health Systems, Fieldale Farms Inc., Pilgrims Pride Poultry Co,

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