Savannah Chamber

18 7 The peak-to-trough decline in single-family home prices was 15 percent. As of mid-2015, Augusta's home prices were about 9 percent below their peak level. Columbus On an annual average basis, nonagricultural employment as reported by the U.S. Bureau of Labor Statistics will decline by 0.8 percent in 2016, or by about 1,000 jobs. Those employment statistics do not include the announced reduction in soldiers at Fort Benning, however. So the actual job losses will be significantly larger, but will be spread over two federal fiscal years. As a part of the Department of Defense's plans to reduce the Army by 40,000 soldiers by September 30, 2017, the Army proposed cutting 3,400 soldiers—as well as an undisclosed number of civilian workers—at Fort Benning. The area's economy is very dependent on government spending, mainly due to the presence of Fort Benning. The restructuring of the federal government sector therefore constitutes a major headwind for the Columbus MSA. Federal fiscal austerity significantly diminishes the near-term prospects for regional economic growth and also makes the overall business environment more risky. More positively, in August 2015, Eastman Kodak announced plans to develop cutting-edge printing plates at its factory in Columbus. This facility, which will employ 240 workers, will be the sole manufacturer of SONORA plates sold in the Americas. The regional economy derives a larger than average share of economic activity from three industries: financial activities, government, and leisure and hospitality. The Columbus MSA's regional economy is extremely dependent on financial activities. Since the Selig Center expects the regional economy to become even more concentrated on financial activities over time, improving conditions for financial activities is a good sign. Courtesy of a long list of attractions as well as Fort Benning, the regional economy gets a relatively large annual economic boost from the hospitality and leisure industry. This industry's concentration is not expected to vary too much, but the outlook is positive. The housing bust was not too severe here, but by the same token, the housing recovery is very weak. As of mid-2015, single- family home prices in the Columbus MSA were still 14 percent below their peak level. Lackluster short-term expectations for the region's housing recovery reflects announced cuts at Fort Benning, which will prompt a drop in the area's population over the next several years as defense spending winds down. Macon On an annual average basis, Macon's total employment will rise by 1.8 percent in 2016, or by 1,800 jobs. First Quality Packaging Solutions, which will locate its new manufacturing facility in Macon, will bring 115 jobs. In early 2016, Kumho Tire will open its first North American manufacturing plant in Macon, employing about 450 people. Also, GEICO recently expanded its operations in the MSA. Macon's economy will benefit from its focus on transportation and logistics, financial activities, higher education, healthcare, and professional and business services. Macon is not overly exposed to the restructuring of the government sector, and not overly dependent on manufacturing. The MSA's role as a regional retail trade center will expand in 2016. Its central location makes it a good place to host statewide meetings or conventions, but the region has yet to fully develop this advantage. Nonetheless, the hospitality industry will be a positive force for growth. Macon is located strategically at the intersection of I-75 and I-16, has two railroad lines, and a good airport that is used by local residents as well as others from throughout much of South Georgia. The MSA's role as a remote bedroom community for the southern portion of the Atlanta MSA will expand, further stimulating the economic development of Macon's northern suburbs. As Atlanta becomes more congested, sites in Macon will become very attractive to both private businesses and state government operations. In the Macon MSA, existing single-family home prices have been slow to recover. As of mid-2015, home prices were still 14 percent below their peak level.

• Cover