Savannah Chamber

38 23 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. 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 mainly leisure visitors rather than business travelers. According to Airbnb, in the US, Savannah is at the top of many people's dream destinations. Travel+Leisure magazine ranks Savannah as the third best travel destination in the US. Hotel development has been and will continue to be very strong. Retirees will continue to be an important forces 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 and was on the increase prior to the pandemic. The largest migration flows to Savannah are from Atlanta, Hinesville, Hilton Head (SC), Jacksonville (FL), Brunswick, Fayetteville (NC), Charleston (SC), Augusta, El Paso (TX), and Colorado Springs (CO). At most levels of educational attainment, the workforce is fairly well balanced, but there are too many people with graduate degrees. Port operations support manufacturing and foster growth of Savannah's logistic, distribution, and warehousing industries. In the Savannah MSA, Georgia's ports support over 51,000 jobs. The statewide economic impact of Georgia's ports is almost 497,000 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 substantial 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 Mason Mega Rail project was partially completed in 2020 and when fully complete will double the Port of Savannah's rail capacity, allowing the port to tap into new markets. The proposed Mid-American Arc will enhance intermodal rail service to various markets in the Southeast and Midwest. In addition, the Port of Savannah added 400,000 TEUs of annual container capacity, which will provide new storage options to customers. The new capacity gives the port the capacity to handle unexpected surges in container yard demand as well as to accommodate future growth. Already a premier destination for leisure travelers, Savannah aspires to become a premier destination for national conventions, trade shows, and meetings. Once the pandemic is over, tourism and convention business will return and will again be one of the fastest growing sectors of Savannah's economy. The industry's growth reflects 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. Prior to the pandemic, the Savannah International Trade and Convention Center often was fully booked, suggesting it was time to expand. In 2020, the Georgia Department of Economic Development approved a major expansion of the convention center and agreed to sell $70 million in bonds to begin construction of the $210 million project. The expansion will double exhibit space, add a large ballroom, add many meeting rooms, add parking, and make other improvements. The expansion may be completed by late 2023. As of the second quarter of 2020, single-family home prices in the Savannah MSA were 14 percent above their pre- Great Recession peak levels. Existing single-family home prices in the Savannah MSA increased by a 3.4 percent between the second quarter of 2019 and the second quarter of 2020. 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, but declined in 2020. The 2021 outlook for homebuilders is positive, reflecting low mortgage rates, population growth, and accelerating economic recovery for Savanah's tourist- and port-dependent economy. The long-term economic outlook for Savannah is very good, but the pandemic and recent retreat from globalization were tough on Savannah because of the area's very high dependence on tourism and international trade. The Port of Savannah generates large economic impacts, especially for the transportation, distribution, logistics, and warehousing industries. Exports account for 25.8 percent of the Savannah MSA's GDP. Savannah is one of the nation's most export dependent metropolitan areas, ranking 20 th most export dependent of all U.S. MSAs. The main destination of Savannah's exports is Asia, which is the region most affected by the trade war. The second largest export market is

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