Savannah Chamber

30 15 Georgia Medical Partnership expanded the class size in Athens by 50 percent in 2021. The Health Science Campus will encourage further development of clinical healthcare and the biomedical industry. The campus is the former site of the US Navy Supply Corps School, which moved to Rhode Island in 2011 and currently houses the medical partnership as well as the UGA College of Public Health. The 2012 establishment of UGA's College of Engineering contributes directly to region's growth through its operating budget, its personnel budget, and student spending. In addition, the College of Engineering contributes in terms of advancing the area's economic development through technology transfer, technical assistance, and research. UGA's newest College already has about 2,200 undergraduate and graduate students. The College of Engineering enhances entrepreneurial development and the climate for innovation. It helps Athens recruit high tech companies and venture capital. Similarly, Athens potential for high-tech development is enhanced by the success of UGA's Computer Science Program. Athens Technical College also has very strong technology programs. UGA ranks 1 st in the nation for the number of new products brought to market based on university research and UGA ranks 4 th among US universities for the number of new intellectual property licenses to industry. UGA ranked number 10 among large research universities for innovation productivity and 42 nd in overall innovation impact in terms of converting STEM research into technological progress for society and the economy. Scheduled for completion in 2021, UGA is transforming its Spring Street Building into an innovation center that will promote innovation and entrepreneurship among faculty, students, and private business and industry. Because domestic economic conditions will be more favorable in 2021 than in 2020, Athens should see more expansions by its existing employers. High-tech employment will expand the Athens MSA. A cluster of biotechnology industries with links to UGA is gradually developing critical mass, boosting prospects for additional growth of the life- sciences employment in Athens. As mentioned above, RWDC Industries and Boehringer Ingleheim are expanding in Athens. Over 2020-21, the economic contribution of the leisure and hospitality industry will shrink relative to the overall size of Athens' economy. Households will spend more on travel in 2021 than in 2020, but households spending for travel will be low compared to pre-pandemic spending. Budget cuts will reduce visitation by state and local government employees. The hospitality industry will end 2021 well short of full recovery from the virus crisis. Nonetheless, the longer term prospects for Athens' hospitality industry are still very good, but not nearly as good as they were prior to COVID-19. For example, there will be permanent substitution of virtual conferencing and virtual meetings for in-person conferences and in-person meetings. One reason why Athens's hospitality industry will do well over the longer term is that recent improvements at the Classic Center makes Athens a better place to host meetings and conventions. For example, the new Hyatt Place hotel is attached to the Classic Center. The physical attachment of high-end lodging to the Classic Center will make it easier to bring more high-end business meeting and special events to Athens. Another example, more exhibit space at the Classic Center helps Athens attract more and larger conventions and trade shows. More fundamentally, Athens' hospitality industry's future growth will reflect Athens' successful development as an affordable regional entertainment center, the music and dining scene, college sports, downtown shopping, and many cultural events and attractions. Beyond COVID-19, there are some other challenges to Athens' growth. The economy is not very diversified. Athens is extremely dependent on government jobs, especially state government due to the presence of the University of Georgia. High dependence on state spending is an advantage when state revenues are on the upswing, but can be a disadvantage when state revenue collections decline. In contrast, the information, professional and business services, construction, transportation & utilities, and manufacturing industries are undersized relative to the overall size of the area's economy. That will limit the impetus to the region's overall growth from these industries. Of special concern, the information industry has been shrinking relative to the overall size of Athens' economy. Another concern is that Athens' role as a major regional hub for retail shopping has been declining for many years and will remain under assault in 2021. Record low mortgage rates, above-average population growth, positive net migration, and an expanding student population bode well for homebuilding and residential real estate markets. In terms of new single-family construction, the homebuilding upturn began in 2010 and gained traction in 2011-2013, lost ground in 2014, regained traction in 2015-2018, and moved sideways in 2019-2020. The single-family homebuilding industry's prospects for 2021 are good, but not great. Multi-family construction decreased recently and is unlikely to increase in 2021. Because Athens is

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