Author: ei2admin

Company Expansions and New Locations with International Ownership Part One: State of Georgia

This post is the first half of a series on international companies locating and expanding in Georgia using data provided by the Georgia Department of Economic Development. This part will look at the State of Georgia and the following post will focus on Gwinnett County.

According to data collected by Georgia Department of Economic Development, there were 331 expansions or new locations of companies in the state of Georgia in the 2015 fiscal year. Of these, 197 listed a country of ownership. 72 companies or 36.5 percent were internationally owned and these companies were responsible for 42 percent of the jobs created by expansions or new locations (with ownership data) in FY15.

These 72 companies came from 18 different countries (Figure 1). The top three countries of ownership were Germany (22.2 percent), South Korea (12.5 percent), and Japan (12.5 percent).

Figure 1: FY15 New Locations & Expansions, International Countries of Ownership
Figure 1: FY15 New Locations & Expansions, International Countries of Ownership

The international companies located or expanded in 31 Georgia counties (Figure 2). The top five counties for international company locations or expansions were Gwinnett, Fulton, Chatham, Richmond, and Hall.

Gwinnett County had nine international locations or expansions, the most of any county. Half of all new locations and expansions in Gwinnett County for FY15 were by international companies, in Fulton County the percentage was less than 20. China, Germany, and South Korea were the top countries of ownership for 2015 locations to Gwinnett. Three out of four companies with Chinese ownership locating or expanding in the state of Georgia were in Gwinnett County.

The next post will expand on international companies locating in Gwinnett County. It will review some of their economic development strategy and demographic shifts in the county.

Figure 2
Figure 2: FY15 New Locations & Expansions, international companies by county location in Georgia

 

For questions, contact: 

Madi Shields

Phone: 404-385-5137 | Fax: 404-410-6910

Email: ude.hcetag.etavonninull@sdleihs.idam

IMCP Communities Present at Regional Studies Association North American Conference

Investing in Manufacturing Communities Partnership (IMCP) community representatives from across the country converged for a manufacturing-focused panel at the Regional Studies Association North American conference, which was held on June 16th at the Historic Academy of Medicine in Midtown Atlanta.  The conference was themed, “Cities and Regions: Managing Growth and Change”.  Building on this theme, the panel centered the discussion on “Regional Collaboration for Effective Economic Development Manufacturing Strategies: IMCP Communities”.

IMCP is one of the White House Administration’s main programs to support job creation and accelerate manufacturing growth by transforming their industrial ecosystems into globally-competitive manufacturing hubs.  Administered by the U.S. Department of Commerce Economic Development Administration, IMCP does this by leveraging federal resources from across key government agencies with priority projects that IMCP communities identify for their key industry sectors.

IMCP Map

Map courtesy of the University of Southern California Center for Economic Development

All of the panelists who presented at the RSA session work directly with communities and regions in a collaborative capacity to enhance manufacturing ecosystems across six key areas:

1) workforce and training;
2) supplier networks;
3) research and innovation;
4) infrastructure and site development;
5) trade and international access; and
6) operational improvement and capital access.

This integrated approach has helped regions across the country identify gaps in the current manufacturing ecosystem, develop strategies to improve the climate for jobs and investment, and create strong and committed partnership networks to implement those strategies.  Panelists shared their experiences – best practices, lessons learned, and practical advice – on how to build a strong manufacturing ecosystem and influence regional policy using collaboration and partnerships generated through the IMCP program.

Panelists for the session included:

  • Deepak Bahl, Program Director, USC Center for Economic Development and adjunct associate professor at the USC Price School of Public Policy.  Deepak also helps manage the AMP SoCal IMCP.
  • Debra Franklin, Director of Strategic Initiatives, Wichita State University, WSU Ventures.  Debbie also manages the South Kansas IMCP.
  • Erin Ketelle, Economic Development Program Manager at University of Tennessee Institute for Public Service, and TN’s DRIVE for the Future IMCP.
  • Julie Wenah, Counselor and Policy Advisor, U.S. Department of Commerce Economic Development Administration.  Julie leads the White House National Economic Council initiative that currently supports 24 communities across the country, aka IMCP.

The panel was moderated by Leigh Hopkins with the Georgia Tech Enterprise Innovation Institute’s Center for Economic Development Research (CEDR).  Leigh also co-manages the Northwest Georgia IMCP with the Northwest Georgia Regional Commission for the 15-county northwest Georgia region.

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The panelists tour ATDC during their Atlanta visit. From left to right: Leigh Hopkins, Julie Wenah, Erin Ketelle, Debra Franklin, Johanna Kaiser (ATDC) and Deepak Bahl. 

The Regional Studies Association provides a platform for researchers to address the effects of policy, organizational, and institutional innovations and their impact on work, identity, governance, production networks, infrastructure investments, technology diffusion, and place.  The annual North American conference was co-organized by Dr. Jennifer Clark with the Center for Urban Innovation at Georgia Tech.  The conference focused on the regional policy implications of emerging forms of governance and policy delivery relative to uneven development and inequality of market liberalization, financialization, and global competition in an era of recovering financial markets.  It also included a tour of Georgia Tech’s Advanced Technology Development Center (ATDC), a technology business incubator in the heart of Tech Square.

For questions, contact:
Leigh Hopkins, AICP
Phone: 404-894-0933 | Fax: 404-410-6910
Email: ude.hcetag.etavonninull@snikpoh.hgiel

Upcoming: Incentive Strategy for the Fitzgerald and Ben Hill County Development Authority

Starting this August, the Center for Economic Development Research will work with the Fitzgerald and Ben Hill County Development Authority to create policy guidelines for local economic development incentives. The research will look at existing plans and guidance from the city and county. With this and with input from local leaders, the project team will recommend a set of policies and incentives to help the community become more competitive while being responsible with taxpayer resources. Some of the recommendations may include policies for tax and fee reduction, strategies for review process acceleration, and cost/benefit analysis guidelines. The project team expects to conclude in October with a final report detailing their incentive policy recommendations.

ben hill logo

Project contact:

Alfie Meek, Ph.D.

Phone: 404-385-1340 | Fax: 404- 410-6910

Email: ude.hcetag.etavonninull@keem.eifla

Coweta County Workforce Analysis

Just a 30-minute drive south of downtown Atlanta, Coweta County’s location, available properties, and quality of life are attractive to companies looking to expand or relocate their operations. When deciding where to locate, companies also consider the availability of a skilled workforce as an important factor. Recognizing this importance, the Coweta County Development Authority, City of Newnan Business Development Department, and the Newnan-Coweta Chamber of Commerce launched a joint initiative to better understand the quality and quantity of Coweta County’s available workforce. As an initial step, the Coweta County Development Authority submitted a successful application to the Economic Development Research Program (EDRP) for an analysis of their workforce. The Center for Economic Development Research (CEDR) at Georgia Tech’s Enterprise Innovation Institute (EI2) assisted the Coweta County Development Authority by conducting research and analysis through the EDA University Center grant program.

Coweta IP

CEDR’s analysis built a broad-based assessment of Coweta County and the surrounding community. This provided a framework to understand the region’s evolving demographics and economy. Using this framework, CEDR measured both supply and demand of the workforce, identified driver industries and their occupations, and took a more in-depth look at office and professional jobs.

classroom

Photo from the University of West Georgia, College of Business

Based upon the demographic and economic data analyzed, the supply and demand of workforce, and the occupational analysis, CEDR developed a list of next steps for the Coweta County Development Authority and its local partners to consider. These recommendations addressed four broad areas, including: 1) industry engagement; 2) developing a strategy to retain local workforce; 3) working with local educational institutions to track student placement data; and 4) confirming and/or refining target industries.

For project-related questions, contact:
Candice McKie
Phone: 404-385-2053| Fax: 404-410-6910
Email: ude.hcetag.etavonninull@eikcm.ecidnac

US Department of Commerce Secretary Pritzker Visits Northwest Georgia

On May 6, 2016, US Department of Commerce Secretary Penny Pritzker and Deputy Secretary Jay Williams visited Northwest Georgia, touring Engineered Floors and the Northwest Georgia College and Career Academy.  They participated in a round table discussion with the Investing in Manufacturing Communities Partnership (IMCP) Consortium, Floor360, and Communities That Work Partnership (CTWP) leaders from industry, workforce development and the Northwest Georgia College and Career Academy.  The discussion centered on development of a skilled curriculum for the next generation working in a highly automated manufacturing environment, both the engagement of parents and teachers to redefine manufacturing and to develop skilled pathways to manufacturing employment using apprenticeships, and launching of the new Advanced Manufacturing and Business Academy (AMBA) at the College and Career Academy.

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From left to right: Asst. Sec. Jay Williams (USDOC), Dr. Kathryn Hornsby (TCSG), Barbara Ward (Dalton Utilities), Louis Fordham (J+J Industries), Sec. Penny Pritzker (USDOC), Jason Reynolds, (Plant Manager, Engineered Floors), Deana Perry (NWGRC), and Leigh Hopkins (Georgia Tech).

The IMCP program is one of the US Department of Commerce’s main initiatives to support job creation and accelerate manufacturing growth to make communities more globally competitive by transforming their industrial ecosystems into globally-competitive manufacturing hubs.  The Northwest Georgia region has been designated an IMCP “Manufacturing Community” by the US Department of Commerce (Economic Development Administration) since 2014.  This designation gives organizations that support the industry via the Northwest Georgia’s Advanced Manufacturing Strategy elevated status for certain federally-aligned grant programs.  Throughout the IMCP initiative, the region has placed particular focus on workforce development issues.  As an outgrowth of IMCP, Northwest Georgia was selected to participate in the CTWP, a one-year joint project between EDA and the Aspen Institute.  Each partnership/cohort consists of 3-4 individuals from organizations within their regions who are in a position to accelerate change to benefit businesses and workers through industry-led workforce development strategies, one of whom represents the voice of business.  The goal of CTWP is to accelerate and document promising, evidence-based best practices in regional collaboration for talent development that promotes growth and opportunity in the regional economy.

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Photo courtesy of the Department of Commerce.

For questions, contact:
Leigh Hopkins, AICP
Phone: 404-894-0933 | Fax: 404-410-6910
Email: ude.hcetag.etavonninull@snikpoh.hgiel

2016 EDA National Conference Report

Representatives from Georgia Tech’s Enterprise Innovation Institute descended upon Washington DC for the U.S. Economic Development Administration (EDA) 2016 National Conference, April 7th – 8th.  After an opening keynote by Assistant Secretary of Commerce for Economic Development, Jay Williams, panel sessions that followed included the role of universities in economic development (a discussion on the EDA University Center program), scaling a culture of innovation and entrepreneurship, and  attracting young professionals to cities, and bridging the gap between economic development and workforce.

EDA-Summit-2016-v7-1

CEDR’s Leigh Hopkins presented on a panel that discussed “Partnerships that Drive Results in Advanced Manufacturing”.  Representing the northwest Georgia region, Hopkins, along with panelists from EDA-designated Investing in Manufacturing Community Partnership (IMCP) communities from Maine, Minnesota, Connecticut, Oregon, and Pennsylvania described the challenges and lessons learned – from getting industry competitors around the same table to discuss issues important to their industry, making changes in technical education, elevating a traditional industry sector in the state, to organizing rural communities to apply for federal funding assistance.  It was evident at the conference that EDA is focusing its efforts moving forward on creating regional partnerships, understanding best practices for innovation, and creating workforce development strategies for a new generation of workers in manufacturing and other key industries that will help companies fill the gap in their knowledge and talent pipelines, now and as the pool of retired workers swells in the next five to ten years.

For questions, contact:
Leigh Hopkins, AICP
Phone: 404-894-0933 | Fax: 404-410-6910
Email: ude.hcetag.etavonninull@snikpoh.hgiel

Clinch County EDRP Study Underway

The Clinch County Development Authority applied for and won a research grant through Georgia Tech’s Economic Development Research Program (EDRP). The EDRP research will be conducted this spring and summer.

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Researchers from Georgia Tech’s Center for Economic Development Research will be in the community, meeting with the county’s industry leaders, community leaders, stakeholders, and state partners. They will assess county trends and previous planning efforts. Their goal will be to identify industries within the county that align with its strengths and assets. This will give county leaders a better understanding of how to strategically position Clinch County for quality economic growth in the coming decades.edrplogoProject Highlights: Researchers at Georgia Tech have developed an 8-step process to help Clinch County facilitate economic growth as effectively as possible. These steps include:

  • Project Kickoff
  • Community assessment and review
  • Baseline analysis
  • Community interviews
  • State partner interviews
  • Target industry analysis
  • Strengths, Weakness, Opportunities, and Threats (SWOT) analysis
  • Recommendations and final report

The project is expected to be completed by the end of August 2016.

For project-related questions, contact:
Candice McKie
Phone: 404-385-2053| Fax: 404-410-6910
Email: ude.hcetag.etavonninull@eikcm.ecidnac

IEDC Workforce Development, Registration Underway

About the Course: Skilled workers are the backbone of a productive and efficient economy, and a critical decision point in today’s business location decisions. This versatile course explains the essential relationship between economic and workforce development through case studies, practical examples, and current research. Course participants will learn what programs currently leverage federal, state/provincial, and local financial resources to support workforce development. Learn about what you can do through collaborative programs to build the workforce pipeline and upgrade the skills of your community’s existing workforce. Other topics will include: the emerging demand-driven model in workforce development, sector strategies for targeted industry clusters, K-12 development and integration, occupational analysis, talent attraction, and more.

Register Here: https://pe.gatech.edu/courses/iedc-workforce-development

Course ID: EDEV 1027P

CRN Start date End date Registration Deadline Location
16470 May 12, 2016 May 13, 2016 May 12, 2016 Atlanta, GA

Register early to save! 

For course-related questions, contact:
Leigh Hopkins, AICP
Phone: 404-894-0933 | Fax: 404-410-6910
Email: ude.hcetag.etavonninull@snikpoh.hgiel

Forsyth County – Fiscal Impact of Sharon Springs

At the request of Forsyth County Board of Commissioners the Center for Economic Development Research (CEDR) at Georgia Tech examined the fiscal impact that the proposed City of Sharon Springs would have on Forsyth County.   In 2015, House Bill 660 was introduced to provide for the incorporation of a significant portion of south Forsyth County into the City of Sharon Springs.  By population, the proposed City of Sharon Springs would be the 17th largest city in Georgia — falling just behind Valdosta, Smyrna, and Brookhaven — and would be nearly 10 times larger than Cumming, the only other city in Forsyth County and the county seat.

Forsyth logo

A report examining the fiscal feasibility of this new city was published in February 2015.  While this report met the requirements of the rules set forth by the House of Representatives Governmental Affairs Committee of the Georgia General Assembly, there were many important questions that the Georgia General Assembly did not ask regarding the fiscal impact that the municipal incorporation of Sharon Springs would have on the county.  For example, will the county lose revenues that currently fund services that will still need to be provided county-wide?  If so, how much of a millage rate increase to ALL county residents will be needed to make up the difference?  To what extent will the county be able to reduce service costs due to the creation of the city? How will capital expenditures be impacted if the new city does not collect the county impact fee?  These are just a few of the questions that needed to be answered in order to get a complete picture of the true fiscal impact of creating Sharon Springs.

It turns out that the creation of the City of Sharon Springs would lower county operating revenue by approximately $6.2 million.  The primary revenue losses would have been in alcohol licenses and excise taxes, business licenses and occupation tax, cable franchise fees, planning and zoning permits and fees, and insurance premium taxes.  On the other side of the equation, the county would save nearly $770,000 in operating expenses in both code enforcement and the planning and development departments.  These savings are primarily due to the reduction of 13-15 positions with the associated salaries, benefits, and other related expenses.  Because the revenue loss is significantly more than the cost savings, the county would have been left with a revenue gap of approximately $5.4 million.  Given the size of the Forsyth County net tax digest, it would require an additional 0.623 mills to recover that amount of revenue.  That is equivalent to a property tax increase of 12.9 percent for ALL Forsyth County property owners.

 

Children’s Healthcare of Atlanta, Economic and Fiscal Impact Study

Children’s Healthcare of Atlanta (Children’s) engaged the Center for Economic Development Research at Georgia Tech to assess their economic and fiscal impact on the State of Georgia. Children’s is the state’s 15th largest employer, and ranks 20th with respect to total payroll. Below is a quick summary of the economic and fiscal impact study.

The economic impact of Children’s represents the difference in the Georgia economy between having and not having Children’s. The focus here is on resources that would likely not exist in the state were it not for Children’s. This includes 1) resources that Children’s brings in from outside the state, and 2) resources that are already in Georgia, but would leave the state if Children’s did not exist. Obviously, many of the services provided by Children’s are available from other providers who would be able to fill in the gap left by Children’s. However, some services are not available from other providers, and some, though available, would not be able to capture all of the demand. A detailed analysis of the services Children’s provides and the alternative providers in Georgia allowed for an estimate of the extent to which Children’s patients would likely seek treatment outside of Georgia if Children’s did not exist. Based on the structure of the Georgia economy, the economic impact of Children’s is $1.5 billion in economic output across the state and the employment of nearly 12,300 people earning more than $700 million in wages, salaries, and benefits.

Fiscal impact analysis takes the above results and estimates how those levels of economic activity influence both the expenditures made by government and the revenues that will accrue to government. When state revenues exceed expenditures, the result is positive net revenue, which is analogous to what the private sector would call “profit.” Using a proprietary state fiscal impact model developed by the Center for Economic Development Research at Georgia Tech, it is estimated that the economic impact of Children’s generates about $75.6 million in revenue for the State of Georgia, and $37.5 million in new expenses. Therefore, the net fiscal impact of Children’s on the State of Georgia is a positive $38.1 million.