Savannah Chamber

43 Another positive is that net foreign migration to the MSA is consistently positive and contributes over 200 persons per year to the area's population. In the Macon MSA, existing single-family home prices peaked in the first quarter of 2008 and bottomed in the third quarter of 2013. The peak-to-trough decline was 18 percent, which was smaller than the decline experienced by the state as a whole. Poor population trends make it very difficult for the area's housing market to recover, however. As of the third quarter of 2019, home prices were only one percent below their previous peak level, and were up 5.6 percent on a year-over-year basis. In terms of new construction, the upturn in single-family homebuilding began in 2014 and gained some traction in 2015-19, but activity levels are still depressed. The outlook for the Macon MSA's homebuilders is positive, but the recovery will progress slowly. About 7.8 percent of Macon's employment is housing-related, which is below the national average of 9.6 percent. Savannah The trade war and slowdown in global growth limit the Savannah MSA's immediate prospects for growth. The area's extremely high dependence on international trade means that employment will increase by only 0.3 percent in 2020. On the other hand, a major de-escalation of the U.S.-China trade war and a pick-up in the pace of global growth would substantially improve the 2020 economic outlook for Savannah. Meanwhile, the many economic development projects announcements made in 2019 and 2018 will provide a solid push to the area's growth. Over the long-term, Savannah's multiple personality: that of a major tourist attraction, a major airbase, an aerospace manufacturing center, a modern – extraordinarily successful – deepwater port, and a regional hub for health and educational services will make up the grounds for Savannah's success. Gulfstream is the area's largest employer, followed by Memorial Health University Medical Center, Fort Stewart/Hunter Army Airfield, St. Josephs/Candler, and Wal-Mart. Recent changes in the federal tax deductibility of corporate jet purchases – a 100 percent write-off against earnings – bodes very well for Gulfstream, but the trade war reduces prospects for orders of business jets. Savannah will benefit from the expansion of the film industry, but the "fetal heartbeat" bill is a downside risk. Although the housing bust hard hit the metro area, the restructuring of the information and financial activities industries did not inflict too much damage on Savannah's economy. High-tech employment accounts for only 1.2 percent of the MSA's employment compared to 4.9 percent of U.S. employment. The leading high-wage industries are aerospace product and parts manufacturing, offices of physicians, and the federal government. The leading mid-wage industries are state & local government, general medical & surgical hospitals, and the military. The leading low wage industries are restaurants, employment services, and traveler accommodation. The Savannah MSA includes Bryan, Chatham, and Effingham counties. In 2020, Savannah will benefit from economic development projects announced over the last two years. In 2019, Plastics Express announced a major expansion of its operations in in Chatham County with two new manufacturing facilities, creating 166 jobs. In 2019, Anatolia Tile+Stone decided to locate its new distribution center in Savannah, creating 124 jobs. Preci-Dip, a manufacturer of military and aerospace connectors, announced that it will open its first U.S. production facility in Bryan County, creating 100 jobs. In 2019, A&R Logistics announced that it will create 60 new jobs when it opens an export facility at the Savannah Gateway Industrial Hub which is under construction and is scheduled for completion in late 2020. Also, in 2019 Allegiant announced plans to establish a two-plane base at the Savannah/Hilton Head International Airport. 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 $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. There were some layoff announcement s in 2018-2019, which constitute a headwind for the area's economy. For example, Gulfstream announced layoffs that will cost Savannah 362 manufacturing jobs. In addition, Conifer Health Solutions, Sodexo, Anthem, and Nathan Howard announced layoffs.

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