Savannah Chamber

16 lower costs or provide necessities should do well. The outlook for consultants is positive due to continuing economic expansion, growth in corporate profits, more business expansions and relocations, and higher revenue collections by state and local governments. The Boston Consulting Group's decision to create a new regional support center in Atlanta reflects the ease of using the area as a geographic hub from which to serve clients throughout the Southeast. Similarly, Accenture—one of the largest consulting firms— announced a major expansion of its operations in Atlanta. Georgia's staffing and temporary agencies should do well because the modest pace of economic growth coupled with the higher risk of recession should encourage many employers to remain flexible and responsive to potentially changing economic conditions. The state's low unemployment rate will restrain this industry's growth, however. Workers will be less willing to accept temporary positions and the supply of suitable workers will be very limited. Cyclical increases in domestic and foreign economic activity combined with Georgia's strong transportation and logistics infrastructure will ensure job growth in the logistics and distribution industry. Cargo volumes will outpace state and U.S. GDP growth in 2018. That is quite an accomplishment for an industry that typically moves in lockstep with the overall economy. The many economic development projects involving the relocation and expansion of manufacturers contributes to the very positive outlook for Georgia's freight traffic. Distribution and logistics announcements in 2017 include Safavieh, Z Gallerie, the Elk Group International, Lidl, Coyote Logistics, and ASOS. Sonoco Packaging will create 595 jobs in a new packaging center in Fairburn. Georgia's logistical advantages led Luxottica Group to choose Henry County for an assembly and distribution center that will create about 1,000 new jobs. The state will benefit from many new logistical/distribution centers for both online and onsite retailers, including Sports Warehouse, Home Chef, Variety Wholesalers, Amazon, Dollar General, thredUP, Ollie's, Badcock, and Walmart. With an annual economic impact of over $7 billion, Georgia's film industry makes a substantial contribution to economic growth. The industry ranks first globally in the production of the top grossing feature films, followed by the United Kingdom, Canada, California, Louisiana, and New York. In addition, the number of TV productions in Georgia is very impressive. State incentives ensure that nearly all studio space is booked, and filmmakers enjoy Georgia's array of locations. In addition, as the professional, technical, and physical infrastructure becomes more fully developed, the economic benefits of each dollar spent on film and television production in Georgia will generate larger economic impacts for our state's economy. One major risk to this industry's outlook, however, is divisive state legislation, such as "religious liberty" or "bathroom" bills. Improving economic conditions—especially the upcycle in real estate—and improving demographic trends will help Georgia's financial institutions. Rising asset values favor banks' top- and bottom-line growth. The prospects for deposit growth also are excellent. In 2018, the relatively flat yield curve will persist, but higher demand for most types of loans will support banks' profits, which have recently risen substantially. Higher consumer spending for expensive durables should ensure growth of non-revolving credit, but banks will tighten lending for auto loans due to rising delinquencies. More major home renovation projects will propel the rise in home equity loans. The high compliance costs of re-regulations, fewer auto loans, and less mortgage refinancing will challenge the bottom line, but the prospects for some regulatory relief are good. Traditional banks and credit unions will see more competition from large retailers, venture capital funds, microfinance, and other nonbanks. Mobile banking will transform banking into a much more customer- focused business, and could give advantages to technology firms or retailers that invade markets currently served by banks. For seven straight years, the leisure and hospitality industry has outperformed Georgia's overall economy. It will continue to do so in 2018, but to a lesser extent. Both limited service properties that cater primarily to tourists and full-service properties that are popular with business travelers will post significant gains. The

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