2014 State of Economic Development Report

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1 2014 State of Economic Development Report Produced in partnership with

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3 Welcome to the Greater Columbus Georgia Region! Located approximately 100 miles southwest of Atlanta, the Greater Columbus Georgia Region is home to more than 300,000 residents. Our prime location in the Southeastern U.S. means companies can rely on a well-connected network of air, land, and sea transportation options, including Hartsfield-Jackson Atlanta International Airport, which is located less than 90 minutes from Columbus. The Region is home to Fort Benning and the Maneuver Center of Excellence, with more than 40,000 military personnel, contractors and civilians working at the installation every day. It also is home to the corporate headquarters of such notable companies as Aflac, Carmike Cinemas, Realtree, Synovus, TSYS and the W.C. Bradley Company. Additionally, several multi-national companies, including Johnson Controls, Kia, Kodak, NCR and Pratt & Whitney, have significant footprints in the Region and have made major investments in their facilities over the last decade. In the past 10 years, the region has seen over $3 billion in new commercial and industrial projects. What s more, the public sector has invested another $3 billion in new public facilities, recreational assets, and infrastructure, including a growing Columbus State University RiverPark campus in Columbus Uptown District and a world-class whitewater course on the Chattahoochee River. In 2014, $100 million in new investment was committed across a number of industries in the Region. Leading the announcements this year was the Blue Cross and Blue Shield of Georgia project, which is investing $62 million in a new state-of-the-art campus in the Muscogee Technology Park. Working together with our local schools, colleges, universities and others, our Region has succeeded in transforming our economy and our communities. These publicprivate partnerships have served as the foundation of our economic and community development efforts over the past 30 years. We know moving forward this approach will continue to pay dividends for our businesses and residents alike. William P. Murphy, EDFP Executive VP, Economic Development Greater Columbus Georgia Chamber of Commerce & The Valley Partnership Russ Carreker Chair, Economic Development Committee Greater Columbus Georgia Chamber of Commerce Presenting Sponsor: Silver Sponsor: Your Local Natural Gas Provider Victory Dr. Columbus, GA Columbus, Georgia 2014 State of Economic Development Report 3

4 The Greater Columbus Georgia Region 2014 State of Economic Development Report Year in Review The Greater Columbus Georgia Region is well on its way to seeing another 100-million dollar year in new capital investment in Projects have come from a number of industry sectors, continuing our efforts to diversify the regional economy. Here are three of the more notable projects from the past 12 months. Leading this year s project announcements was Blue Cross and Blue Shield of Georgia (BCBSGa), which broke ground on its new $62 million office facility in Columbus Muscogee Technology Park in late-august The new 235,000-square-foot, three-story building will house approximately 1,500 employees and will be BCBSGa s main hub for servicing its nearly three million members in Georgia. Another major announcement in the past 12 months came from KOPLA, a Korean automotive parts supplier. It announced plans in November 2013 to invest $15 million in a new 100,000-sqare-foot facility and employ 150 in the Northwest Harris Business Park in West Point. Kodak, which has had a presence in Columbus for more than 20 years, announced plans in April 2014 to invest $15 million in a new plate manufacturing line at its Columbus facility to produce the KODAK SONORA Process Free Plates. The investment in new equipment will result in the creation of 40 new jobs and the retention of 225 existing jobs. Industry Overviews The aerospace industry continued to be a significant part of the economic recovery as several original equipment manufacturers (OEMs) and suppliers announced major contracts at the Farnborough Air Show in July These announcements promise to provide millions of dollars in new work for U.S. companies in the industry. According to the Aerospace Industries Association, the aerospace industry in the U.S. now employs more than one million workers across all 50 states. It is also the nation s largest net exporter and one of the biggest contributors to the annual U.S. Gross Domestic Product. Georgia and the Greater Columbus Region are major players in this industry as well. Over the past five years, the state announced more than 2,900 new jobs, including over 300 additional jobs at Pratt & Whitney facilities in Columbus. The automotive sector witnessed one of its best years ever in North American light-vehicle production ended 2013 at a 13-year high, based on data collected by WardsAuto. U.S. automakers produced 16,074,821 vehicles in 2013, up 4.5% from 2012 and nearly double 2009, when the market was locked in the Great Recession. 1 The Southeastern U.S. and Georgia specifically, played a major role in the rebound. In fact, Kia Motors Manufacturing Georgia (KMMG) produced its 1,000,000th vehicle in July of 2013 since starting operations in West Point in The growing supplier network, including KOPLA, will soon employ over 11,000 in and around the main KMMG campus. Biosciences and healthcare are becoming an increasingly important part of the Georgia economy. According to data collected by Georgia Power, the state has nearly 20,000 employees in 433 companies involved in the biosciences industry. 2 Looking at job creation opportunities over the next few years, Georgia ranks 6th among the fastest-growing states in bio-related occupational employment between 2012 and Locally, the region has been actively working to promote the pipeline of healthcare workers through Columbus Technical College, Columbus State University and, most recently, Mercer University School of Medicine. In 2012, Mercer opened a virtual clinical campus in Columbus in affiliation with Columbus Regional Healthcare System and St. Francis Hospital. The community continues to work on bringing a physical presence of the School of Medicine to Columbus in the coming years. Fort Benning has played a major role in the regional economy since it was first established in Today, the installation has some 40,000 military personnel, civilians and defense-related contractors and is home to the Maneuver Center of Excellence. The facility trains more than 10,000 individuals on any given day and has an economic impact of more than $5 billion annually. Today, Benning and the broader defense industry continue to have a significant impact on the Region and the State of Georgia. The state now ranks 4th in the nation for the number of individuals associated 4 Columbus, Georgia 2014 State of Economic Development Report

5 with the military. As importantly, the state has nine of the top 10 defense contractors with operations in the state, including United Technology Corporation s Pratt & Whitney Columbus Engine Center. Manufacturing remains one of Georgia s top industry sectors in terms of employment and output. Georgia s manufacturing employment is approximately 350,000, including 14,000 new jobs created as a result of the state s largest manufacturing projects over the past three years. 4 As impressively, Georgia s manufacturing output is $48.6 billion (2012$) annually, representing 11.2% of Gross State Product and 91.7% of Georgia exports (2013). 5 Among the more notable projects in the Greater Columbus Georgia Region in 2014, were Kodak s new investments in equipment and KOPLA s investments in equipment and its new facility. Georgia has earned national recognition for the communication, financial, healthcare and information technology industries. Impressively, 17 of the nation s largest companies, including Columbus Aflac, have their headquarters in Georgia. 6 Among the top states for Financial Technology (FinTech), Georgia is home to four of the top 20 companies, including #14 TSYS, headquartered in Columbus. 7 All told, Georgia has the 7th largest IT employment cluster in the U.S. with more than 118,000 employed in the sector with nearly 12,000 new jobs created in the last six years. 8 Finally, from film and television to recreation and history, tourism supports more than 411,000 jobs, or 10.2% of all payroll employment in Georgia. 9 One of the region s major destinations is Callaway Gardens, located in Pine Mountain, which welcomes more than 750,000 visitors each year to its beautiful gardens, world-class golf courses and renowned spas. The most recent addition to the Region s recreational draws is whitewater on the Chattahoochee River. It is the longest urban whitewater course in the world and was named one of the Top 12 Manmade Adventures in the World by USA Today in Recognition The State of Georgia was the recipient of several awards in 2014 by some of the best site selection and business media companies. These awards serve not only as bragging rights, but they also help to communicate third-party affirmation of the tremendous opportunities Georgia and the Region have to offer new and expanding companies. # 1 # 1 # 1 Site Selection s Top 10 Competitive States 2014 Area Development s Top States for Doing Business 2014 CNBC s 2014 America s Top States for Doing Business Additionally, Georgia was awarded the coveted 2014 Gold Shovel Awards: Excellence in State Job Creation and Economic Development Efforts from Area Development magazine for states with a population of 8-15 million. Two projects from the Greater Columbus Georgia Region helped the state win the award: Hostess Brands, LLC in Columbus and Koch Foods in Harris County. 1 Erin Berger, WardsAuto, North American Light-Vehicle Output Finishes 2013 at 13-Year High, January 22, Georgia Power, Biosciences Database, Georgia Power, EMSI Projects, Georgia Power, Advanced Manufacturing, National Association of Manufacturers, Georgia Manufacturing Facts, FORTUNE magazine, American Banker, Top FinTech Companies, Harvard Cluster Mapping Project, EMSI, 2014 IT Occupational Analysis 9 Georgia Department of Economic Development, Full List of Services: Comprehensive Custodial Comprehensive Carpet and Floor Care Custodial / Janitorial Supplies and Equipment Consultation Services (As Needed) Waist Removal and Disposal High-Rise Window Cleaning Pest Control Disaster Recovery: Water and Storm Damage Cleaning Fabric and Upholstery Cleaning Post-Construction Cleaning Landscaping and Maintenance Markets / Industries Served: Commercial Industrial Residential Manufacturing Medical Retail Financial Services Construction Government Education Columbus, Georgia 2014 State of Economic Development Report 5

6 Projects of the Year 2014 Project of the Year Office Blue Cross and Blue Shield of Georgia Blue Cross and Blue Shield of Georgia (BCBSGa) broke ground on its new office in Columbus Muscogee Technology Park in August The 235,000-squarefoot, three-story building will house approximately 1,500 employees and will be BCBSGa s main hub for servicing its nearly three million members in Georgia. We are a Georgia-born and bred company, and I am thrilled that this new complex will employ nearly 2,000 Georgians and enable them to serve their neighbors around the state, said Morgan Kendrick, president of BCBSGa. We have been serving the people of Georgia for over 75 years, and this is a great opportunity to reinvest in a community that has placed their trust in us for a long time. With an anticipated completion of summer 2015, the building will feature two wings connected by an atrium. It will have an outdoor patio, a fitness center and a walking path Project of the Year Manufacturing Kodak In April 2014, Kodak announced it will be making a significant investment in a new high speed manufacturing line at its Columbus facility in Corporate Ridge Business Park. The company is adding a new plate manufacturing line dedicated to producing KODAK SONORA Process Free Plates. To meet the demand generated by the tremendous growth of SONORA Plates in the Americas, we need to build a brand new world-class plate manufacturing line in our Columbus plant, noted Brad Kruchten, President of Kodak s Graphics, Entertainment & Commercial Films group. This is a clear statement of our commitment to enable sustainable printing in the Americas. More than 800 customers worldwide currently use SONORA Plates, and many more are waiting to make the switch to this revolutionary product. Columbus will soon join Osterode, Germany, and Leeds, U.K. as manufacturing sites for KODAK SONORA Process Free Plates. 6 Columbus, Georgia 2014 State of Economic Development Report

7 About Our Region Located in West Central Georgia and East Central Alabama, the Greater Columbus Georgia Region is home to approximately 316,000 residents and an available workforce of 130,000 people. The Region has grown significantly over the past decade. In fact, the Columbus GA - AL MSA has grown from 281,768 in 2000 to 316,000 in 2013 a 12% increase. In fact, the State of Georgia is now the 4th fastest-growing state in the U.S., adding more than 1.8 million residents from Business and industry have also found the Region a great place to invest. Today, several well-known companies have their headquarters in the Region, including Aflac, Carmike Cinemas, Masterbuilt, Realtree, Synovus, TSYS and the W.C Bradley Company. What s more, internationally-recognized companies like Heatcraft Kysor/Warren, Kia, NCR, Pratt & Whitney and Synder s-lance have major operations in the Region. Major Employers Company Number of Employees Fort Benning 40,000 TSYS 4,600 Muscogee County School District 4,300 Aflac 3,670 Columbus Regional Healthcare System, Inc. 3,180 Columbus Consolidated Government 3,130 KIA Motors Manufacturing Georgia Inc. 3,000 St. Francis Hospital Inc. 3,000 BlueCross BlueShield of Georgia 1,400 Columbus State University 1,360 Pratt & Whitney 1,000 Synovus Financial Corp. 930 Source: Greater Columbus Georgia Chamber of Commerce, Largest Non-Retail Employers, 2014 Our Program Of Work The Greater Columbus Georgia Chamber of Commerce and The Valley Partnership work collaboratively to create jobs and increase capital investment in the Region by recruiting new businesses, by helping existing companies expand, by creating an environment for success for our entrepreneurs and small businesses and by advocating and promoting issues and priorities important to the business community. This work is accomplished through a three-step process: 1. Identifying available buildings, developing sites and facilitating a trained workforce to meet regional employment needs (Develop Products); 2. Marketing these assets under The Valley Partnership brand identity to targeted industries and audiences, including existing companies though the BusinessFirst program (Market Products); and, 3. Negotiating appropriate incentive offerings to win projects (Close Deals). Areas of Focus As an integral part of the Southeastern U.S. economy, our areas of focus leverage these Regional strengths and build on the emerging industries that show significant promise for employment and capital growth in the Greater Columbus Georgia Region. Aerospace Automotive Biosciences Defense Manufacturing Technology Tourism Columbus, Georgia 2014 State of Economic Development Report 7

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