Savannah Chamber

24 forecasting index, although muddled in the short-run, is sending the message of moderate and sustainable growth for 2018. Current drivers in the economy are port activity, real estate development and investment, tourism, and business/professional service growth. On the goods-producing side of the economy, manufacturing will play a growing, but lesser role in terms of regional growth, while construction is expected to add more jobs in 2018. Economic expectations for 2018 are good. Expect an above-average year of economic growth in the Savannah metro area. 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, tourism, health care, the military, and real estate development. Manufacturing After opening the year with modest activity, Savannah's manufacturers added 500 workers, a 3% gain, during the last three quarters of 2017. A review of recent announcements from headlining companies in the sector point toward continued growth in 2018. The manufacturing workforce was 17,000 strong at the end of 2017, and is expected to add another 500 workers in 2018. The headquarters of Gulfstream Aerospace celebrated its 50 th year in Savannah in 2017. Looking forward, there is ample backlog to keep the company very busy throughout 2018. The company completed production of the last G450 in December 2017 and retired the model. Final approval for its replacement, the G500, is expected in early 2018 with deliveries to begin later in the year. The G600 is close behind with certification and production expected in 2018. The backlogged orders of both aircraft are viewed by the company as sufficiently strong to assure the success of both models. JCB's production of 1,600 light-capability, rough terrain forklifts for the U.S. Department of Defense (DoD) is expected to commence in the second quarter of 2018. The production of this massive fleet of vehicles for world-wide deployment stems from the award of a 10-year, $142 million DoD contract awarded in late 2016. JCB's skid-steer loaders won six awards for innovation and quality in 2017. They were also featured in the 20 th Century Fox film, "Alien: Covenant." A fleet of 20 Savannah-made loaders were provided to the film-making company and are prominently featured in the film's finale. The Pooler facility hosts manufacturing operations and the offices of the company's North American headquarters. The Savannah Economic Development Authority (SEDA) had a record-setting year in 2017, helping to facilitate nearly $500 million in capital investment and the creation of over one thousand new job opportunities. The development of the 685-acrea Savannah Manufacturing Center will commence in 2018. The Savannah Film office, hosted in SEDA's offices and jointly funded by SEDA, the City of Savanah, and Chatham County since 2016, assisted in the $137 million impact the film industry had on Chatham County's economy in 2017, a gain of 6% from the previous year and a nearly eight-fold increase compared to 2011. SEDA and the Savannah College of Art and Design (SCAD) announced a $600,000 partnership, called "SCAD+", to support the development of commercially viable digital products and enhance Savannah's entrepreneurial ecosystem. Further, in 2018 SEDA will be leasing land at the Savannah airport to facilitate the growth and development of the aerospace industry. In Effingham County, development continues on the Savannah Portside International Park. The site has 1,550 acres available for development. DRT America completed a $43 million rosin and turpentine oil processing facility. Interfor Corporation is investing $16.5 million to expand its Meldrim sawmill facility, expected to be completed in early 2018. Halstead International, specializing in vinyl flooring and other materials, recently commenced operations in the City of Rincon with the opening of a new $12 million facility. The Savannah Gateway Industrial Hub is now certified as a Georgia Ready for Accelerated Development site, meaning it is ready for fast-track development.

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