Savannah Chamber

17 6 from tourism and retiree-based development. The Rails to Trails project also should help the tourism industry. Albany's increasing role as a regional center for health care and education weighs strongly in its favor, but the growth of both of these industries will be limited by the area's sub-par population growth. Home prices are recovering much more slowly here than at either the state or national levels. As of mid-2015, Albany's home prices were still 15 percent below their peak levels. Athens Athens' economy is much less cyclical than either the national or state economy because it's heavily tilted towards government and healthcare. This relative economic stability reduces the risks. State and local governments' budgets are likely to expand in 2016, which is a good sign for Athens short-term economic prospects. In 2016, employment in Athens will increase by 1.5 percent (about 1,400 jobs). Athens will benefit from several factors: Caterpillar's new factory will expand over the next several years. Athens' clinical healthcare industry will continue to grow, as will its role as the regional medical service center for northeast Georgia. In addition, the establishment of a medical school campus at the University of Georgia in partnership with Georgia Regents University will encourage further development of clinical healthcare and the biomedical industry. The establishment of UGA's College of Engineering will contribute directly to region's growth through its operating budget, its personnel budget, and student spending. Also, the College of Engineering will contribute in terms of advancing the area's economic development, and will help Athens recruit high tech companies and venture capital. One challenge to Athens' growth stems from the development of competing retail hubs elsewhere in Northeast Georgia (e.g., the Mall of Georgia and Discover Mills) as well as the growing share of retail dollars that is spent online. Athens' role as a major regional hub for retail shopping has been declining for many years and will remain under assault in 2016. The development of the Epps Bridge Center helps improve the area's appeal as a place to shop, however. One immediate concern for Athens is that the information, financial activities, and professional and business services 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. The information industry in particular is shrinking relative to the overall size of Athens' economy. A long-term concern is that Athens is extremely dependent on state government jobs. In 2016, that's probably a plus, but it does make the area vulnerable to future efforts to downsize state government. In contrast, Athens' shares of federal and local government jobs are significantly below the state average, so the area is less vulnerable. In the Athens MSA, existing home prices have increased for 10-straight quarters, but are still 7 percent below their peak level. In terms of new construction, the homebuilding upturn began in 2010 and gained traction in 2011-2013, lost ground in 2014, but regained traction in 2015. Augusta Employment in this MSA will increase by 2.4 percent, or 5,500 jobs in 2016. The strong performance of Augusta's services- producing industries, notably healthcare and private education, are positives for the economy. The metropolitan area also will continue to benefit from the construction of two nuclear power plants at Plant Vogtle. Augusta is a center for telecommunications services and call centers, including telemarketing and reservations. Unisys, an IT company, will create up to 700 jobs over five years at a new service center in Richmond County. The Georgia Medical Authority will use the expertise available at Georgia Regents University to establish Augusta as a center for the rapidly growing life sciences industry. Fort Gordon has grown dramatically in recent years and adds substantially to the area's supply of well-trained, skilled workers. The relocation of the U.S. Army Cyber Command to Fort Gordon directly creates about 700 military and civilian jobs, and will make Augusta a place where military contractors will congregate. The fort's presence does make the local economy somewhat vulnerable to future cuts in defense spending, however. Although Augusta's undersized information and financial activities industries spared the region from the restructuring that has plagued these sectors, it also may limit opportunities for renewed growth in those industries in 2016.

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