Savannah Chamber

44 27 It is worth noting that Savannah is vulnerable to future restructuring of the government sector. In the Savannah MSA, Government accounts for 18.5 percent of non-farm earnings compared to 15.9 percent for the state as a whole. More specifically, the share of federal military and local government earnings are significantly above the statewide average, but the share of federal civilian government earnings is below the statewide average. The share of state government jobs is about the same in Savannah as in the state as a whole. The federal military exposure reflects the presence of Fort Stewart/Hunter Army Airfield. In the short-term, defense spending will increase and the base is not in danger of closure or major cuts. The tilt towards both the federal government is positive for the Savannah MSA in 2020 but makes the area's long-term outlook less certain. Savannah's unique ambiance and transportation infrastructure make it an attractive place to live and do business. The thriving historic district and waterfront developments draw visitors. According to Airbnb, in the U.S., Savannah is at the top of many people's dream destinations. Travel + Leisure magazine ranks Savannah as the third best travel destination in the U.S. Hotel development has been and will continue to be very strong. Retirees will continue to be an important force powering and diversifying the region's economic development, but the Savannah area will benefit from the fact that its population is increasing for all age groups. Net migration is very strong. The largest migration flows to Savannah are from Atlanta, Hinesville, Hilton Head (SC), Miami (FL), Charleston (SC), Austin TX, and Jacksonville (FL), Augusta, Clarksville (TN) and New York (NY). At most levels of educational attainment, the workforce is fairly well balanced, but there are too many people with graduate degrees. Due to the presence of Georgia's Ports, Georgia is the nation's seventh largest importing state and eleventh largest exporting state. Port operations support manufacturing and foster growth of Savannah's logistic, distribution, and warehousing industries. In the Savannah MSA, Georgia's ports support over 42,000 jobs. The statewide economic impact of Georgia's ports is almost 440,000 jobs. Deepening the Port of Savannah to 47 feet will preserve these port- dependent and port-related jobs. The Savannah Harbor Expansion Project positions the Port of Savannah for long-term growth. The Port of Savannah is already preparing for increased activity. Super Post-Panamax ship-to-shore cranes and rubber-tired gantry cranes began arriving in 2016. The new Jimmy DeLoach Parkway provides a four-lane limited access truck route between the Port of Savannah and I-95 and I-16. The proposed Mid-American Arc will enhance intermodal rail service to various markets in the Southeast and Midwest. Savannah's destiny is to become a premier destination for national conventions, trade shows, and meetings. Tourism and convention business will continue to be one of the fastest growing sectors of Savannah's economy, reflecting substantial investments in the area's infrastructure, including a large number of new well-situated hotels as well as the Savannah International Trade and Convention Center on Hutchinson Island. The increasing number of direct air connections bodes very well for the expansion of the hospitality industry. The housing bust was severe in Savannah, but the area's housing recovery is strong. Single-family home prices peaked in the second quarter of 2007 and bottomed out in the third quarter of 2012. From peak to trough, home prices declined by 23 percent. As of the third quarter of 2019, single-family home prices in the Savannah MSA were 13 percent above their pre-Great Recession peak levels. Existing single-family home prices in the Savannah MSA increased by a strong 6.6 percent between the second quarter of 2018 and the second quarter of 2019. 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 2011 and gained traction in 2012-2019. Due to favorable demographic trends, the outlook for homebuilders is positive, but the lack of job growth will limit the increase in housing activity in 2020. In the Savannah MSA, the proportion of employment related to housing is below the national average. That will limit the push to the MSA's overall growth from the housing industry. The long-term economic outlook for Savannah is good, but the recent retreat from globalization and the trade war will be very tough on Savannah because of the area's very high dependence on international trade. The Port of Savannah generates large economic impacts, especially for the transportation, distribution, logistics, and warehousing industries.

• Cover