Savannah Chamber

25 Turning to population growth, the region's long-run attractiveness as a place to live, work, and retire remains unaffected by short-run business cycles. Tourist demographics describe a very desirable pool of would-be in-migrants. The typical Savannah tourist (about 14 million annual visitors) is well-educated and has above-average income. Population growth in 2022 is expected to be above average, driven by employment growth and continuing pandemic-related remote work arrangements allowing people in urbanized areas to relocate to areas of lower population density like Savannah. For 2022, population growth is expected to be 1.8%, modestly faster than the 1.4% pace of growth recorded in 2021 and on average since 2010. Population growth in Bryan and Effingham Counties is expected to be about 2.5%, continuing the trend of more rapid growth in counties adjacent to the economic core in Chatham County. After a very difficult 2020, the regional economy roared back in 2021. For 2022, the business forecasting index is sending the message of continued growth. Drivers of the regional economy in 2022 will be logistics and distribution, port-related real estate development, residential construction, and recovery in tourism and the service sector powered by pent-up demand in consumer depending. On the goods-producing side of the economy, manufacturing will normalize and close the pandemic employment gap. Both residential and non-residential construction is poised for a good year. Although not matching the explosive growth of 2021, 2022 will be a year of above-average growth in the Savannah metro economy. Economic Foundations The remainder of the forecast considers expected activity in the six major underlying economic foundations of the Savannah MSA economy. Recall that these drivers are (in no particular order) manufacturing, the port and logisitcs, tourism, health care, the military, and real estate development. Manufacturing Manufacturers in the Savannah MSA gained approximately 300 workers (1.7%) during 2021. A review of recent announcements from headlining companies in the sector point toward a strong year in 2022. The manufacturing workforce was 17,800 at the end of 2021 and is expected to add about 500 workers in 2022. Gulfstream Aerospace Corporation is the largest private employer in Savannah with a global workforce of 15,000+ workers in production, service, maintenance, engineering, and research and development. In 2021, Gulfstream has seen increased interest in its products and services and announced the addition of two new models in 2021, the G400 and the G800. The company has continued to optimize its customer service and support network by expanding or building new facilities in Texas, Wisconsin, Florida and the UK and announcing the planned addition of a new sustainable service center in Mesa, Arizona. Production and deliveries are expected to increase into 2022, and as the global economy recovers, efficiency gains continue. Flight-testing of the Gulfstream's flagship G700 continued through 2021, with six planes in the test fleet. The G700, which the company anticipates customer deliveries beginning in the fourth quarter of 2022, will feature the tallest, widest, and longest cabin in the industry with leading range and speed capabilities. More than 80% of all G700 flight tests have been conducted using sustainable aviation fuel and the first fully outfitted production-test aircraft set speed records to/from Savannah and Europe and the Middle East. In 2021, Gulfstream became the first business aircraft manufacturer to sign the World Economic Forum's Clean Skies for Tomorrow 2030 Ambition Statement. The new G400 aircraft is the first new entrant into the large-cabin class in more than a decade and the new G800 is the fastest longest- range aircraft in Gulfstream history. In 2021, the company also delivered several special mission aircraft to countries around the world including the Israeli Air Force to enhance their mission-critical surveillance operations and also the U.S. Air Force, which will use the aircraft for executive transport. JCB experienced a large increase in demand for its machinery this year with orders increasing more than 50% above pre-pandemic levels. In September the company reported that some of its products such as diggers, tractors and forklifts are sold out for the next twelve months even though the company expects to produce approximately 110,000

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