tennessee economic development guide tnedg.com
Fast Track
Race to the Top win boosts schools
Solar Flair
State lights the way with clean energy investment
Wheels of Fortune
Automakers create big supply chain
What’s Online  See video of business owners Scott and April Mason detailing their recipe for success
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economic development guide
42 Workstyle Wheels of Fortune
20
Auto assembly plants drive supply chain investment in Tennessee.
Solar Flair
26
Tennessee lights the way in clean energy with new investments, projects.
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32
International Intrigue
32
More than 700 foreign companies have invested more than $21 billion.
In Full Bloom
36
BERO programs help Tennessee’s budding small businesses thrive.
A Fast Track
42
Race to the Top victory bolsters Tennessee’s schools.
Rural Renewal
48
Partnership works to preserve Tennessee’s farms and agricultural acreage. Table of Contents Continued
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On the Cover Tennessee drives new investment in auto manufacturing. staff photo
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Insight
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70
Overview
11
Business Almanac
12
Business Climate
16
Energy/Technology
58
Economic Profile
77
Livability Health Care
54
Streetwise
64
Image Gallery
70
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economic development guide 2010-1 1 Edition , volum e 19 Content Director Bill McMeekin Proofreading Manager Raven Petty Content Coordinators Jennifer Graves, jessica walker Staff Writer Kevin Litwin Copy Editors Lisa Battles, Joyce Caruthers, Jill Wyatt Contributing writers pamela coyle, bill lewis, Joe morris, megan pacella, Media Technology Director Christina Carden
digital Magazine >>
tennessee economic development guide tnedg.com
Fast Track
Race to the Top win boosts schools
Solar Flair
State lights the way with clean energy investment
Senior Graphic Designers Laura Gallagher, Jessica Manner, Janine Maryland, Kris Sexton, Candice Sweet, Vikki Williams Media Technology Analysts Chandra Bradshaw, lance conzett, Marcus Snyder Photography Director Jeffrey S. Otto Senior Photographers Jeff Adkins, Brian McCord Staff Photographers Todd Bennett, Antony Boshier Web Content Managers John Hood, Kim Madlom Web Design Director Franco Scaramuzza Web Designer Leigh Guarin Web Developer i Yamel Hall Ad Production Manager Katie Middendorf
Wheels of Fortune
Lifestyle
Automakers create big supply chain
Find out what it’s like to live here and what makes the state such a special place to be.
Ad Traffic Assistants krystin lemmon, Patricia Moisan What’s Online See video of business owners Scott and April Mason detailing their recipe for success
I.T. Director Yancey Bond I.T. Service Technician Ryan Sweeney Regional Sales Manager Charles Sweeney
Read the magazine on your computer, zoom in on articles and link to advertiser Web sites.
Sales Support/Community, Business, Custom Rachael Goldsberry Senior Accountant Lisa Owens Accounts Payable Coordinator Maria McFarland Accounts Receivable Coordinator Diana Guzman Office Manager/Accounts Receivable Coordinator Shelly Miller Sales Support Manager Cindy Hall
News and Notes >>
color imaging technician Alison Hunter
Our editors give you the
Chairman Greg Thurman
Inside Scoop on the latest development and trends across the state.
President/Publisher Bob Schwartzman Executive Vice President Ray Langen Senior V.P./Sales Todd Potter, Carla Thurman Senior V.P./Operations Casey Hester Senior V.P./Client Development Jeff Heefner V.P./Content Development Teree Caruthers
success breeds success >>
Workstyle A spotlight on innovative companies that call the state home
Meet the people who set the
V.P./Custom Publishing Kim Newsom V.P./Visual Content Mark Forester V.P./Content Operations Natasha Lorens V.P. Sales Charles Fitzgibbon, Herb Harper, Jarek Swekosky
pace for business innovation.
Controller Chris Dudley
Dig Deeper >>
Marketing Creative Director Keith Harris
Plug into the state with links
Recruiting/Training Director Suzy Simpson
to local Web sites and resources to give you a big
Content Director/Travel Publications Susan Chappell Distribution Director Gary Smith Executive Secretary Kristy Duncan Human Resources Manager Peggy Blake Receptionist Linda Bishop
picture of the region. Data Central >> A wealth of demographic and statistical information puts the entire state at your fingertips. guide to services >>
See the Video Our award-winning photographers give you a virtual tour of unique spaces, places and faces.
Links to a cross section of goods and services special to the state
go online
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Tennessee Economic Development Guide is published annually by Journal Communications Inc. and is distributed through the Tennessee Department of Economic & Community Development. For advertising information or to direct questions or comments about the magazine, contact Journal Communications Inc. at (615) 771-0080 or by e-mail at info@jnlcom.com.
For more information, contact: Tennessee Department of Economic & Community Development 312 Rosa L Parks Ave, 11th Floor • Nashville TN 37243 Phone: (615) 741-1888 • Fax: (615) 253-6443 www.tn.gov/ecd or www.investtennessee.org
Visit Tennessee Economic Development Guide online at tnedg.com ©Copyright 2010 Journal Communications Inc., 725 Cool Springs Blvd., Suite 400, Franklin, TN 37067, (615) 771-0080. All rights reserved. No portion of this magazine may be reproduced in whole or in part without written consent. Member Member
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Excellence Begins on
Tellico Lake. Discover what the boating industry already knows. Companies like Sea Ray, MasterCraft, Yamaha and Christensen Shipyards, Ltd. have all taken advantage of the quality developments and the natural beauty that Tellico offers. Tellico has 2,000 reasonably priced acres for consideration by companies seeking a strategic and attractive location for corporate offices, manufacturing and distribution facilities. Visit www.tellico.com or contact Ron Hammontree to find out how Tellico can provide a prestigious location for your new manufacturing or distribution facilities. The site is located on US Hwy. 72, two miles from US Hwy. 411. We are 20 minutes from I-75 and less than 30 minutes from I-40. The site is served by CSX Transportation.
www.tellico.com
Tellico Reservoir Development Agency Ron Hammontree 59 Excellence Way | Vonore, TN 37885 (865) 673-8599 | Fax: (423) 884-6869
Premier Industrial sites in the greater Knoxville Oak Ridge Innovation Valley
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tennessee economic development guide tnedg.com
Fast Track
Race to the Top win boosts schools
Solar Flair
State lights the way with clean energy investment
Wheels of Fortune
Automakers create big supply chain
What’s Online See video of business owners Scott and April Mason detailing their recipe for success
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let uS SolVe the puZZle For you. Goodlettsville, Tennessee is a vibrant community just 20 minutes from downtown Nashville and is known for its history, quiet neighborhoods and bustling business climate. We have wooded acreage available for headquarters operations, interstate convenience (I-65, I-24 and I-40) and 40,000-square-feet of retail availability. Put the GOOD back in your relocation project by choosing GOODlettsville.
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call tom tucker at (615) 851-2204. city of goodlettsville 105 S. main St. • goodlettsville, tn 37072 • (615) 851-2200 www.cityofgoodlettsville.org
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Get Centered L ew i s b u r g – M a r s h a l l Co u nt y, TN •
Located 50 miles south of Nashville, TN and north of Huntsville, AL
•
• Immediate access to Interstate 65
• Ellington Commercial Airport – Lewisburg
• Three industrial parks
• CSX Railroad
• Nine available buildings • 300 acres of Greenfield
• Regional workforce of 200,000
12-hour drive from more than half the US population
• Terry Wallace – Lewisburg EDC (931) 359-1544 • Mike Wiles – JECDB (931) 359-5536
You CAN get there from HERE!
w w w. m a r s h a l l c o u n t y t n . c o m • w w w. l e w i s b u r g t n . c o m
Overview
Where Business Gets Done Tennessee creates the environment for new investment, jobs among the winners of its 2010 Corporate Investment & Community Impact (CiCi) Awards. Tennessee also received top five honors in Site Selection magazine’s Governor’s Cup for economic development and was ranked among the top five states for best business climate. The state is an acknowledged leader in a range of industries from auto production to medical device manu facturing to clean energy. And the momentum continues. Tennessee will be a site for production of the LEAF, Nissan’s zero-emission, all-electric vehicle, and the lithium-ion batteries that will power it. Confluence Solar is investing $200 million in a solar manufacturing plant in Clinton. Underpinning the state’s economic development effort is a roster of highly regarded public and private colleges and universities that perform leading-edge research and supply the state with a deep pool of job-ready workers. Tennessee was one of just two states selected in the federal government’s Race to the Top competition. An infusion of some $500 million over the next four years will enhance the quality and standards of the state’s schools, from kindergarten to college. Despite the national downturn, Tennessee has stayed open for business, and results can be seen from one end of the state to the other in new investment and jobs. Tennessee invites you to experience what everyone is talking about.
Under the leadership of Gov. Phil Bredesen and Matt Kisber, the Tennessee Department of Economic and Community Development commissioner, the Volunteer State has engineered a remarkable success story in generating jobs, investment and growth. In the last seven years alone, the state has seen creation of more than 190,000 jobs, $33 billion in capital investment and more than 50 corporate headquarters locations. Those efforts have not gone unnoticed. The highly respected national economic development publication Business Facilities gave Tennessee top honors in its 2010 Rankings Report. The Volunteer State was ranked No. 1 in the nation for Automotive Manufacturing Strength, No. 2 for Economic Growth Potential and No. 5 for Best Business Climate. Southern Business and Development magazine’s annual Top Deals and Hot Markets rankings named Tennessee Co-State of the Year for the second consecutive year in 2010. Trade & Industry Development magazine named Wacker Chemie and the Tennessee Department of Economic and Community Development
For more information, contact: Tennessee Department of Economic and Community Development 312 Rosa L. Parks Ave., 11th Floor Nashville, TN 37243 (615) 741-1888 www.tn.gov/ecd www.investtennessee.org
Gov. Phil Bredesen, left, and Matt Kisber, commissioner of the Tennessee Department of Economic and Community Development
Clarksville 75
Nashville
Knoxville Murfreesboro
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81
40
40
Tri-Cities
40 40
Jackson 40
Memphis
65
TENNESSEE
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Chattanooga
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Almanac
You May Have Heard This One The International Storytelling Center in Jonesborough is an educational and cultural institution dedicated to building a better world through the power of storytelling. The center conducts research, hosts events, sponsors outreach and educational programs, and advocates tirelessly for the use of storytelling to produce positive change in lives, workplaces and communities. The center’s campus includes the 200-year-old Chester Inn, the 14,000-square-foot Mary B. Martin Storytelling Hall and a three-acre park. A major storytelling festival sponsored by the center takes place each fall in Jonesborough. The center is building an outdoor Storytelling Pavilion and Park that will accommodate 300 people for entertainment and educational activities. The center was recommended for a $270,000 Appalachian Regional Commission grant in March to help fund the $540,000 project. For more information, go to www.storytellingcenter.net.
A Celebration of Innovation Tennessee has cultivated an environment for entrepreneurship, and what better way to showcase the state’s entrepreneurial spirit than a week-long series of events that highlight innovation and job creation? The state will join some 70 countries in recognizing Nov. 15-21, 2010, as Global Entrepreneurship Week, an initiative to promote entrepreneurship, innovation and creativity in local communities around the world. Activities took place in 70 countries during the 2009 event. Tennessee hosted more than 60 events in 2009, ranging from pitch contests and launch challenges to speaker series and panels from various industries. The 2009 campaign built upon a successful inaugural Global Entrepreneurship Week 2008, during which Tennessee partners hosted more than 30 events, reaching 1,000 entrepreneurs and business owners. For more, go to www.tnecd.gov/gew.
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No Makeup Required Remotec in Clinton had a starring role in an Academy Award winning film. The company sent two of its unmanned vehicles and an operator to Jordan for use in The Hurt Locker, which won an Academy Award for Best Picture in 2010. Remotec was founded in 1980 in Oak Ridge to provide remote handling consultation to the nuclear industry. The company’s products are now used in a variety of hazardous material situations by law enforcement, the military, first responders and others. Remotec’s unmanned vehicles are being deployed in Iraq and Afghanistan to assist military personnel in dismantling improvised explosive devices, known as IEDs.
Long Live the Queen A waterway fixture since her birth in 1925, the Delta Queen is permanently docked but by no means retired. The famed paddle wheel steamboat and designated National Historic Landmark provided onboard overnight excursions on the Ohio and Mississippi rivers for nearly 500,000 passengers, including U.S. presidents and foreign dignitaries, but was forced to end them when Congress failed to extend an exemption for wooden superstructure ships in 2008. The boat was moved to Chattanooga in early 2009, where it has been renovated and transformed into a unique boutique hotel on the Chattanooga riverfront, near the trendy shops and eateries of the North Shore. Go to www.deltaqueenhotel.com for more information.
They’ve Made Their Bed in Dandridge A Swedish furniture manufacturer specializing primarily in bedroom accessories has set up shop in a new manufacturing facility in Dandridge in Jefferson County. The move by BJS North America East Inc. brings a $6 million to $8 million investment for a 95,000-square-foot manufacturing complex and creates approximately 150 jobs. BJS is a major supplier to Ikea, a leading Swedish home furnishings retailer in the United States and around the world. BJS will make tables, headboards, chests, daybeds and other products using a high-quality medium density fiberboard. The company designs, develops, and manufactures its furniture by using advanced technology in its factories. Its European operations uses a water-based finishing system exclusively, which is harmless to the environment.
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Don’t just take our word for it
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What makes Tennessee such a favorable place to do business? What is it about the livability of Tennessee that makes people who move there to work decide to stay for the long term?
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Almanac A High-Speed Education
Composite Strengths
A new program is giving 76 rural public libraries across Tennessee the opportunity to create or upgrade broadbandenabled computer labs. The libraries will be eligible to apply for a grant of $13,000 to $20,000 to pay for new computers, necessary peripheral equipment, a high-speed Internet router for each participating library and instructors to conduct training classes for the community. The initiative, backed by the Office of the Secretary of State, the Tennessee Department of Economic and Community Development and U.S. Department of Agriculture Rural Development, is expected to increase the capacity of rural libraries to provide workforce training and increase educational opportunities for the communities they serve.
Sparta-based Norcom of Tennessee has found a niche in some distinct industries. The company manufactures composite products used in auto wrecker bodies, bathtubs designed for individuals with mobility challenges and industrial pump casings. The company began operations in 1990 in Michigan and relocated to Sparta in 1997. A $2 million expansion announced in 2010 will provide increased production and create up to 50 jobs. For more on the company, go to www.norcomonline.com.
They Light Up the Holidays Making Our Mouths Water Production, processing and distribution of food products play a major role in the prosperity of the Bartlett area. The northeast Shelby County corridor is home to major players in the agribusiness industry. Kraft Food Ingredients in Bartlett is one of Kraft’s main research and development facilities, and ACH – best known for its brands Fleischman’s Yeast and Mazola – has its headquarters and research and development facility in Bartlett. Brim’s Snack Foods – a leading producer of pork rinds – calls the Bartlett area home. And Rich’s Foods is yet another processor in the area.
Holiday, floral and gift company Jim Marvin Enterprises Ltd. Inc. in Dickson creates thematic Christmas trends and is considered a world leader in design and color directions for the gift, floral, trim-a-tree and display markets in the U.S., Europe and Asia. The company has received more than 50 awards for display and showroom design from the gift market centers. Its products are found in high-end retail markets, specialty stores, design shops, event planners, commercial display firms and floral and garden centers, as well as hotels and museums worldwide. Company founder Jim Marvin has been called upon to design products for the White House Christmas seasons as well as state dinners and other special events. Go to www.jimmarvin.net for more information.
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Business Climate
Workforce
Innovation Low costs
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Dropping Anchor Tennessee becomes location of choice for large-scale, industry-magnet projects
Story by Joe Morris
M
ajor industries are putting down roots in Tennessee, and their suppliers, vendors and competitors aren’t far behind. With massive new billion-dollar developments like Volkswagen in Chattanooga, Hemlock Semiconductor in Clarksville, Wacker Chemie in Bradley County, Confluence Solar in Clinton and Nissan’s LEAF project in Smyrna, the Volunteer State has become an international hotspot for global industry. And as these major concerns set up shop here, they are providing launching pads for feeder companies, research facilities and much, much more. “The concept of recruiting ‘anchor projects’ has been a pillar of Tennessee’s economic development strategy since Gov. Phil Bredesen took office in 2003,” says Matt Kisber, the state’s commissioner of economic and community development. “We believe that by attracting these largescale operations, Tennessee will become the natural choice for customers and suppliers of those operations that are looking to expand or relocate their own facilities. As a result, one anchor company’s decision to locate in Tennessee sets off a ripple effect of new capital investment and job creation that is felt throughout the state.” The numbers tell the story, and then some. In the
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Top Tennessee Projects of 2009 1. Science Applications International Corp., Oak Ridge, Expansion
800 jobs
2. Flextronics Logistics, Memphis, Expansion
740 jobs
3. Simplex Healthcare, Brentwood, Expansion
528 jobs
4. Wacker Chemie, Cleveland, New $1 billion investment
500 jobs
5. Ordnance Systems Inc., Kingsport, Expansion
474 jobs
6. Carlisle Tire & Wheel, Jackson, New $54 million investment
440 jobs
7. Norfolk Southern Corp., Rossville, Expansion $120 million investment
429 jobs
8. Akebono, Clarksville, New $13.5 million investment
300 jobs
9. Unilever, Covington, Expansion $100 million investment
275 jobs
10. Standard Candy Co. Inc., Nashville, Expansion
260 jobs more at tnedg.com
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“It was estimated the Volkswagen plant would create an additional 9,000 indirect jobs for the region.” last seven years the state has grown some 190,000 jobs, seen $33 billion in capital investment and become the corporate headquarters for more than 50 companies. These successes have drawn plenty of outside attention too. Chief Executive magazine has named Tennessee one of the top three states in the nation for business; Site Selection magazine continues to rank the state high on its list of top economic development performers; Business Facilities magazine named Tennessee its 2009 State of the Year; and Trade & Industry Development magazine tapped the state for its 2010 Corporate Investment & Community Impact Awards. In May 2010, Jackson National Life announced it would locate a regional headquarters operation in Williamson County, creating 750 jobs. “We are already beginning to see anchor projects such as Volkswagen’s decision to locate in Chattanooga and Hemlock Semiconductor’s decision to locate in Clarksville yield tangible results,” Kisber says. “In a University of Tennessee study, it was estimated the Volkswagen plant would create an additional 9,000 indirect jobs for the region. Over the past year we’ve had many suppliers announce the creation of hundreds of new jobs and millions in new capital investments from companies that include Gestamp Corp., Chattanooga Seating, Faurecia, Magna Exteriors & Interiors, MTEK, ThyssenKrupp, Miniature Precision Components Inc. and SL America.” In July 2010, Japanese auto-parts supplier NHK Spring Ltd. said it would open a $54 million plant in mid-2011 in Murfreesboro to make seat components for vehicles that Nissan assembles at its Smyrna manufacturing complex. Hemlock and Wacker Chemie are spurring similar growth, as is Confluence Solar. Both separately and together, these companies are helping Tennessee become the literal go-to state for solar energy related businesses in the United States. “Ideally, these companies will process the raw material for solar panels. Tennessee companies like AGC Flat Glass and Shoals Technologies will transform those raw materials into solar panel components and Tennessee installers will bring those solar panels to homes and offices across our state and the nation,” Kisber says. “Whether we’re working in automotive manufacturing, clean energy or any other growth industry, Tennessee will continue to pursue transformational job creation projects as an important element in our economic development efforts.” Left: Dr. Rudolph Staudigl, Wacker Chemie president and CEO, ECD Commissioner Matt Kisber, Gov. Phil Bredesen and Dr. Peter-Alexander Wacker, Wacker Chemie’s Supervisory Board chairman, celebrate Wacker’s announcement in Bradley County.
TN = HQ Corporate Citizens Find a Home in the Volunteer State In addition to recruiting massive new projects, Tennessee’s economic development leaders also have been successful in luring dozens of corporate headquarters to the state. Matt Kisber, Tennessee commissioner of economic and community development, says this too has been an important factor in what has become a far-reaching approach to business development. Who are some of the corporations that have decided to put their main operations in Tennessee? Since Governor Bredesen took office in 2003, Tennessee has attracted more than 50 national or regional headquarters facilities. Nissan North America, International Paper, ServiceMaster, Louisiana Pacific, Oreck, Asurion and Verizon Wireless have all invested in Tennessee by opening headquarters facilities here. Just in the first half of 2010, we had regional or national headquarters announcements from KHS America, Mueller Industries, Loews Hotels and J ackson National Life Insurance. How does getting a headquarters spur growth in and around that company? Headquarters investments are valuable because, along with creating relatively high-paying jobs, they tend to bring corporate decision makers to the community. Exposing those decision makers to our state encourages them to grow their companies here in Tennessee, establishing strong relationships between the company and the state and creating high-skill, high-wage jobs. How else do these companies form future economic development goals and objectives for the state? We have been aggressive since day one in customizing our resources and incentives for individual companies, and placing a premium on flexible, responsive customer service. We will continue the spirit of cooperation through Gov. Bredesen’s Jobs Cabinet, a panel of state agencies and representatives of the business and higher education communities whose job is to reduce bureaucracy in economic development and eliminate barriers to a project’s success.
– Joe Morris t n e d g . c om
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An Industry Accelerated Auto assembly operations rev up the supply chain
Story by Pamela Coyle
A
J effre y S . O T T O
n auto industry renaissance that reflects both tradition and innovation is sweeping Tennessee. The scheduled 2011 opening of Volkswagen’s $1 billion manufacturing complex in Chattanooga is one high-profile component. In Smyrna, Nissan North America is building a battery plant for its all-electric LEAF and revamping its auto factory to produce the vehicle in 2012. Enterprise South, Volkswagen’s 41-acre supplier park, opened in July 2010 with new companies and expansions of existing ones. Tennessee is home to about 1,000 automotive-related enterprises, from huge original equipment manufacturers like General Motors and Nissan to small specialty tooling shops. Automotive enterprises account Bob Parker, an employee at Volkswagen, works in a training class at the automaker’s Chattannoga training center. Right: VW Chattanooga Operations CEO and Chairman Frank Fischer, Gov. Phil Bredesen, VW Executive Vice President of Human Resources Hans-Herbert Jagla, Volkswagen AG Chairman Dr. Martin Winterkorn and Member of the Board of Management at Volkswagen AG Dr. Jochem Heizmann tour Volkswagen’s assembly plant, a $1 billion investment that is already drawing additional auto suppliers to Tennessee.
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Standing in front of the orientation class that contained the 1000th employee hired at the Chattanooga plant on the front row: Standing in front of the orientation class that contained the 1000th employee hired at Volkswagen’s Chattanooga plant: Hamilton County Mayor Claude Ramsey, VW CEO and Chairman Frank Fischer, President of Manufacturing Don Jackson, 1000th employee Cathy Allen, Executive VP of Human Resources Hans-Herbert Jagla and Executive VP of Finance and IT Patrik Mayer Right: Nissan CEO Carlos Ghosn and Gov. Phil Bredesen examine the Nissan LEAF, which will be produced in Smyrna.
for one in three Tennessee manufacturing jobs, employing more than 105,000 people. The new momentum, says Brannan Atkinson, executive director of the Tennessee Auto Manufacturers Association, is testament to the maturity of the state’s auto-related industry. “It is further validation that if you are going to build an auto plant, build it in the Southeast,” Atkinson says. “We have a mature industry, and original equipment manufacturers feel confident in the quality of Tennessee’s workforce.”
Nissan, which received a $1.4 billion low-interest federal loan, broke ground on the battery plant in May 2010. At capacity, the Smyrna plant will have at least 1,000 workers, not including those at the retooled assembly plant. The battery plant’s modular design allows for production expansion to meet market demand, says Mark Swensen, vice president of production engineering. Nissan engineers in Smyrna also are working with peers across the globe on new battery technologies for EVs. “We have not given up on other
technologies,” says Steve Parrett, Nissan’s spokesman for the Smyrna project. “The time is now.” Japanese auto-parts supplier NHK Spring Ltd. said it would open a $54 million plant in mid-2011 in Murfreesboro to make seat components for vehicles that Nissan assembles at its Smyrna manufacturing complex. In Chattanooga, Volkswagen opened a $40 million, state-funded Training Academy in June 2010 and had already hired more than 1,000 people. By the end of the year, the
Charging ahead on zero emissions Tennessee is one of six states taking part in a major zero-emission vehicle initiative that will bring charging stations for electric vehicles to Chattanooga, Knoxville and Nashville. ECOtality North America, which received a $1 billion federal stimulus grant, has partnered with Nissan North America and General Motors/Chevrolet, which are producing the
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LEAF and Volt, respectively. Some buyers of the new EVs will receive free home-charging stations in return for allowing ECOtality to collect and analyze data on car use and charging performance. The EV project also includes public stations and testing ways to charge drivers for plugging in. For more information, go to www.theevproject.com.
Auto Production in Tennessee
$5.4 billion Auto industry annual payroll
105,000 Tennesseans employed in auto production or supply
88 of 95 Tennessee counties with auto industry involvement
8 Rank of Tennessee among U.S. auto producing states
2 OEMS, or original equipment manufacturers, with Tennessee plants Source: Tennessee Department of Economic and Community Development, 2009 Automotive Supplier Directory
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J effre y S . O T T O
automaker plans to have 1,300 on board. When it is up and running, the new plant will have 2,000 workers and produce 150,000 vehicles a year. Having suppliers nearby and expanding opportunities for local companies is part of Volkswagen’s plan. VW already has signed a $147 million contract with M-Tek Inc., of Manchester, for door panels on a new midsize sedan. The company is locating a final assembly operation at Enterprise South; the contract means continued employment for about 70 M-Tek workers in Manchester and 20 new ones in Chattanooga. Other early Enterprise South signers include Chattanooga Seating; Faurecia, the big French auto supplier; Magna Exteriors & Interiors; ThyssenKrupp Automotive Systems and Wingard Quality Supply. Chattanooga Seating is a new venture between Hollingsworth Logistics, a Michigan firm, and Magna Seating, a subsidiary of Canada’s Magna International, one of the world’s biggest auto parts companies. Magna already builds parts for VW in Mexico and has more than 230 operations in 25 countries. VW also awarded its first contract to SL Tennessee LLC, a subsidiary of SL America. The $35 million contract for shifter assemblies means 300 new jobs in Clinton and a 100,000-squarefoot expansion of SL’s existing plant. What the new wave of auto-related investment brings to Tennessee for the first time, though, is a research component. “Nissan is taking a real leadership role in consumer electric vehicles and picked Smyrna to do that,” Atkinson says. “That brings something else into play and that is the research, which is something we have never had.” Volkswagen’s U.S. assembly operations will open in Chattanooga in 2011. t n e d g . c om
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Solar Flair Tennessee lights the way with new investments, projects
Story by Pamela Coyle
T
ennessee’s investment in solar technology is proving a potent economic force, attracting three major manufacturing projects in less than three years and setting up supply chain opportunities for additional clean energy jobs. Creation of the Tennessee Solar Institute at the University of Tennessee and Oak Ridge National Laboratory also brings together academic, scientific, engineering and technical experts with government
and industry leaders to help speed development of solar photovoltaic technology. The institute created a $23.5 million Solar Opportunity Fund for grants to solar companies expanding their operations and businesses installing solar systems. Tennessee is creating a 5-megawatt solar farm in Haywood County in Western Tennessee as a demonstration site for solar-related technologies. These efforts have put the state on the solar map and attracted t n e d g . c om
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next-generation solar component producers that focus on making the technology more efficient and affordable. Missouri-based Confluence Solar, for example, announced in January 2010 that Clinton would be the home of its new manufacturing, warehousing and distribution facility. The $200 million investment means 250 new jobs producing premium quality mono-crystal silicon ingots. The company’s technology increases the efficiency of solar
cells by 15 percent or more. “Confluence Solar shows how quickly people are realizing we have a unique blend of opportunities,” says Ryan Gooch, Tennessee’s director of energy policy. “Confluence takes silicon from hyperpure polycrystalline silicon and pulls single crystal cells out of it to slice and use in other applications. These are high-skill, high-wage jobs. It is where the innovation is occurring.” The company will develop
a 200,000-square-foot building on 25 acres in the Clinton I-75 Industrial Park. About 100 miles southwest, Wacker Chemie AG is spending $1 billion to develop a plant that produces Confluence Solar’s raw material – hyperpure polycrystalline silicon, the first building block in solar power technology. Munich-based Wacker Chemie is the world’s secondlargest producer. The global leader, Hemlock Semiconductor, broke ground on $1.2 billion to $2.5 billion
Above left: Gov. Phil Bredesen, Dow Corning President and CEO Dr. Stephanie Burns and Hemlock Semiconductor President and CEO Rick Doornbos stand in front of an architectural rendering of the new Hemlock Semiconductor site in Clarksville. Above right: Computer-controlled sunshades are one of the green features at the Nissan North America’s headquarters in Franklin.
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An Energy Star Under-floor ventilation, light harvesting, sun shades and special glass helped the Nissan Americas building in Franklin earn the U.S. Environmental Protection Agency’s prestigious 2009 ENERGY STAR award. The automaker’s headquarters also has a green roof system and a runoff water collection system. Its energy performance puts the building in the top 25 percent of facilities nationwide. The EPA in March 2010 also named Nissan an ENERGY STAR partner for the fourth straight year. The company’s manufacturing plants in Smyrna and Decherd, Tenn., and Canton, Miss., have improved their energy efficiency by more than 30 percent and saved Nissan more than $11.5 million annually.
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Tennessee has the third-fastest growing clean energy economy in the nation, according to a 2009 study by The Pew Charitable Trusts. facility in Clarksville in November 2009. The joint venture between Dow Corning Corp. and two Japanese companies will start production in 2012. Other major players include Sharp Corp., which has expanded its solar panel production capacity in Memphis three times since 2003; AGC Flat Glass, with two operations in Eastern Tennessee; and Shoals Technologies Group, which is relocating its headquarters from Alabama to Gallatin and is now building solar components in Portland, Tenn. Shoals produces wire harnesses, junction boxes and integration equipment. Anchored by Oak Ridge and UT, the research and development piece is
busy, too. ORNL scientists are working to improve solar cell efficiency, molecule by molecule, using new materials that are less expensive; harnessing solar power to charge electric vehicles and measuring the effect solar installations have on the nation’s power grid, says Chad Duty, solar technology program manager. Oak Ridge has the largest materials science lab in the country and also wants to make its tools, techniques and experts available to the solar industry. “One of our key interests is helping the solar industry move forward,” Duty says. “Companies in short order can find out whether what they have will work.”
The activity is getting Tennessee national and international attention. Trade & Industry Development magazine named Wacker Chemie and the Tennessee Department of Economic and Community Development one of 30 winners of its 2010 Corporate Investment & Community Impact Awards. The publishers reviewed more than 1,000 applications. And Tennessee has the third-fastest growing clean energy economy in the nation, according to a 2009 study by The Pew Charitable Trusts. “Two companies on either end of the state means it really can work anywhere,” Gooch says. “These green jobs are real.”
Below right: Matt Kisber, Tennessee Economic and Community Development commissioner, announces Confluence Solar’s $200 million facility in Clinton.
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Grass, Wood and Corncobs Help Fuel Tennessee’s Energy Strategy UT, Dupont, Genera Target Switchgrass as Hawaii Firm Plans $200 Million Investment Solar power is not Tennessee’s only clean energy play. By the end of 2010, a key component of the state’s strategy – a cellulosic ethanol demonstration plant in Vonore – will switch from processing cobs to the fast-growing native grass. DuPont Danisco, Genera Energy and the state of Tennessee are partners in the 74,000-square-foot plant, which opened in January 2010 and aims to deliver low-cost, integrated technology for commercial production of ethanol from agricultural residue and bioenergy crops. Genera Energy is a private company owned by the University of Tennessee Foundation. Tennessee is also attracting new private investment in biofuels. ClearFuels Technology Inc. and Hughes Hardwood are developing a biorefinery in Collinwood that will convert 1,000 dry tons of wood products daily to renewable diesel or jet fuel. ClearFuels, based in Hawaii, expects to invest $200 million in the project and create 50 direct jobs. Ground breaking is slated for 2011, and at standard capacity, the plant will turn out 16 million gallons of diesel and four million gallons of the gasoline feedstock naphtha each year, plus six to eight megawatts of excess electricity.
With the demonstration project, creating a supply chain for fuel development is part of the big picture for the partnership. Genera and UT established nearly 3,000 new acres of material in spring 2010, bringing the total switchgrass acreage in production to nearly 6,000 acres. Sixty farmers are involved, planting
not only the standard Alamo switchgrass but also two improved varieties of switchgrass as part of a multimillion-dollar grant. For more information on the UT Biofuels Initiative, go to www.generaenergy.net and www.utbioenergy.org. – Pamela Coyle
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734
$21.4 billion
98,000
Number of foreign firms in Tennessee as of August 2010
Total announced investment of foreign firms in Tennessee
Tennesseans employed by foreign-owned firms
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The Language of Business Foreign companies plant their flag in the Volunteer State Story by Bill Lewis • Photography by Antony Boshier
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usiness is conducted in many languages in Tennessee, thanks to the billions of dollars invested by companies from Japan and many other countries. Today, nearly 100,000 Tennesseans are employed by 734 foreign companies that have invested in excess of $21 billion in the state. Those jobs and investments are strengthening the economies of communities across Tennessee. “Any time you provide high-quality jobs, it has a tremendous impact on a community, the families who live there, schools, nonprofits and other aspects of community life. The results are amazing,” says Hugh Cantrell, general manager of human resources for Denso Manufacturing.
Denso manufactures automobile parts for customers including Nissan, Toyota, Honda, Ford and GM at its high-tech factory in Athens. Denso is one of more than 160 Japanese companies that have created more than 35,000 jobs and invested nearly $14 billion in Tennessee. Foreign companies are attracted by Tennessee’s combination of low taxes, quality workforce and closeness to customers, says Cantrell. Denso’s growth over the years tells the story of Japanese investment in Tennessee. The factory employed 50 workers when it opened in 1997. Today, 900 Tennesseans work for Denso in Athens, making the company the largest employer in McMinn County. Of the company’s
95,000 employees worldwide, 14,000 are in North America. Companies with foreign connections are linking Tennessee to the world’s economy and creating the green jobs of the future. Nissan, for example, will create up to 1,300 jobs at its Smyrna plant for production of its new LEAF electric car and the advanced batteries that power it. “Production of Nissan LEAF and lithium-ion batteries in Smyrna brings the United States closer to its goal of energy independence, creates green jobs and helps sustain American manufacturing. Nissan is a leader in global manufacturing innovation, and this state-of-the-art battery plant will strengthen that leadership,” says Carlos Ghosn, president and
promoting business and friendship Underscoring the state’s importance as a locale for Japanese investment, Tennessee will host the 2010 Southeast U.S./Japan Association annual joint meeting. Created in 1976, the association promotes trade, investment, understanding and friendship between Japan and member states Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, Virginia and Mississippi, the most recent state to join. As many as 600 government
leaders and business executives from a broad spectrum of industries from Japan and the Southeast will convene Oct. 16-19, 2010, in Nashville to focus on identifying investment potential for the Southeast states from Japan. SEUS/Japan has a Japanese counterpart, the Japan-U.S. Southeast Association. The Japanese organization’s membership includes Japan’s top business leaders and government officials.
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CEO of Nissan Motor Co. Ltd. Two foreign companies are creating an entirely new green energy industry in Tennessee. Germany’s Wacker Chemie is building a $1 billion facility to manufacture extremely pure polycrystalline silicon in Bradley County. Hemlock Semiconductor, a joint venture between Dow Corning Corporation and two Japanese companies, is investing between $1.2 billion and $2.5 billion in a silicon manufacturing facility in Montgomery County. The silicon produced at the plants can be used to manufacture solar panels that generate electricity directly from the sun’s rays. “Now the whole world is looking at what is happening in Tennessee,” says James Chavez, president and CEO of the Clarksville-Montgomery County Economic Development Council. More than 30 years have passed since Toshiba became the first Japanese manufacturer to purchase a site and build a factory in Tennessee. Today, Japan is Tennessee’s largest foreign investor, says Leigh Wieland, who represents the Japan-America Society of Tennessee. “Success has required a lot of work and commitment by our state and our governor. You can’t underestimate the power of personal relationships,” says Wieland. The importance of the relationship between Tennessee and Japan will be highlighted in October, when the Southeast U.S./Japan Association meets in Nashville. The association, which promotes economic and personal relationships, met last year in Tokyo. It last came to Tennessee in 1996. Robert Duthie, chairman and founder of Duthie & Associates in Nashville, says the meeting is an important economic development opportunity. “Business people will come to the meeting from Japan and other locations. It’s a chance to showcase how friendly Tennesseans are and to showcase our business environment. Tennessee is a welcoming place for foreign investors,” says Duthie. Bob Duthie, chairman and founder of Duthie & Associates and a member of the Japan-American Society of Tennessee
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Building the Ties That Bind Tennessee and Japan Cultivate a booming Economic and Cultural Relationship Hiroshi Sato, consul-general of the Consulate General of Japan in Nashville, discusses the growing economic, cultural and personal ties between Tennessee and Japan. Q: How important is the cultural and economic relationship between Japan and Tennessee? How has it grown stronger? The economic relationship has never been stronger. Japanese investors account for more than half of all Foreign Direct Investment (FDI) in the state, creating a little over 35,000 jobs for Tennesseans. This is particularly astounding when you consider Japanese investment was only about 2 percent of all FDI in Tennessee in 1977. Cultural ties are growing stronger but have not yet reached the same levels. There are now six Sister City relationships between Japan and Tennessee, and a number of other cities have expressed interest in finding a Japanese partner. Overall, my office has significantly increased our efforts to bring Tennesseans and Japanese together, through events such as school and library visits, art exhibits and cultural performances. Personally, one of my first priorities as consul-general was to help create an annual Cherry Blossom Festival, with the goal of creating a truly authentic Japanese festival here in Tennessee. Q: How important is the Southeast United States/Japan Association in strengthening those ties? Its importance cannot be overstated. The SEUS/Japan meetings offer a unique chance to interact face-to-face with some of our most prominent business leaders. The privilege of hosting the annual meeting alternates between Japan and each of the eight member states, and it
has been 14 years since Tennessee last hosted the event. Having such direct access to business and political leaders of this caliber is a rare opportunity, and I hope Tennessee’s executives with take full advantage by joining us in October. Q: Why have so many Japanese companies chosen to locate operations in Tennessee? Each individual investor has personal considerations when searching for a new base of operations. But one of the things I have heard mentioned time again is how warmly the people of Tennessee, along with their state and local leaders, have welcomed the Japanese community. You should always consider the tremendous challenges foreign executives and their families face when being assigned to work overseas. Often, making the extra effort to help ease their transition into the local community can make all the difference in how they evaluate your community’s desirability.
services we offer to Japanese living and working within our five-state jurisdiction. Q: How many Japanese nationals are living in Tennessee today? As of October 2009, we counted 3,348 Japanese living in the state. This is based on self-reported registrations, so it is an approximation of the total number. Q: What has been their experience, and your own experience, living here? As I touched on earlier, Tennesseans have done a good job of welcoming their Japanese friends. There are, of course, minor glitches from time to time. But perhaps most important is how quickly local leaders work to remedy any problems that arise. While conflicts are inevitable, maintaining such a strong relationship makes it possible to quickly resolve them and move on to growing the partnership. – Bill Lewis
Q: Japan is the first and only country to locate a consulategeneral in Tennessee. Why did your office relocate to Nashville from New Orleans? Japan places a very high value on our partnership with the American people and currently maintains 15 diplomatic posts across the continental United States. With the growing importance of manufacturing in the South, especially within the automotive and clean energy sectors, the number of Japanese living within our jurisdiction has grown steadily. Relocating the office to a more geographically central location has helped us to greatly improve the t n e d g . c om
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In Full Bloom BERO programs help Tennessee’s budding small businesses thrive Story by Megan Pacella Photography by Antony Boshier
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or entrepreneurs scoping out the best place to launch a small business, the Volunteer State is one of the best places to be. A 2008 study by the Ewing Marion Kaufman Foundation ranked Tennessee among the top five states nationally for entrepreneurial activity. A pro-entrepreneurial environment doesn’t just happen – it is created, thanks to efforts such as the Tennessee Department of Economic and Community Development’s Business Enterprise Resources Office (BERO). BERO teams with other entities to provide services such as technical assistance, access to capital, workshops and training for small, minority- and women-owned businesses. Want proof of BERO’s assistance paying dividends? Just ask Scott Mason and his wife, April. When the Masons started Mason Distributors, the Tennessee’s Business Enterprise Resource Office provides a wealth of resources to aid entrepreneurs and small business.
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Blountville-based, family-owned business handling commercial production of Trigger’s BBQ Sauce & Salsas, they didn’t exactly have a business plan – only a dream and a goal. But when they joined the Kingsport Chamber of Commerce and the Kingsport Office of Small Business and Entrepreneurship (KOSBE), all of that changed. “In 2007, we joined KOSBE, so we could use some of the great resources they offer,” says Scott Mason. “They helped us develop a business plan and structure our actual business. We also learned where to buy insurance and how to protect things like the recipes for our salsas. We can’t trademark that, so protecting our recipes is essentially protecting our entire business.” BERO teams up with chambers of commerce, regional groups like KOSBE, the U.S. Small Business Administration, Tennessee Small Business Development
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Centers and others to offer resources that aid small business owners and entrepreneurs. “Partnerships are critical to entrepreneurial growth. No one person has all the answers, but being able to help an entrepreneur or small business owner find the resources they need to troubleshoot, find funding, connect with other businesses or grow their business makes all the difference,” says Wisty Pender, BERO director. The small business resources the Masons gained from the Kingsport Chamber of Commerce and KOSBE paid off. In 2007, they entered Trigger’s Salsa into a Cracker Barrel contest and took first prize, landing their product in all 570 Cracker Barrel stores across the country. “That was huge for us,” Mason says. “Now we constantly update our vendor list and our business plan regularly, so that we’re prepared to present it if we need to finance a loan. With
“No one person has all the answers, but being able to help an entrepreneur or small business owner find the resources they need to troubleshoot, find funding, connect with other businesses or grow their business makes all the difference” that knowledge, we volunteer as mentors through KOSBE, so we can help entrepreneurs like ourselves. The great thing about local business is that these people are motivated. It’s rewarding to come up with a dream and make it happen.” BERO also partners with the Tennessee Main Street
Program, which is revitalizing downtown business districts in communities across the state. In 2009, the two pro-small business organizations held a “What Makes You an Entrepreneur?” video contest, and the response was strong. The winner, Dyersburg-based Pennington Seed and Supply,
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What’s Online Scott and April Mason talk about their family-owned business online at tnedg.com.
owned by Mike Pennington, received a commemorative award, a $500 check and $2,000 worth of marketing services. “The Tennessee Main Street Program is very active in revitalizing our downtown, which helps our local businesses get more traffic,” Pennington says. “We’ve upgraded buildings to make a farmers market, and now we’re in the process of making a park for canoe rental and walking trails. These are baby steps toward getting more people downtown. BERO, the chamber of commerce and the Main Street program are getting into the trenches with business owners, and it’s making a huge difference in the economic climate of Tennessee.”
Tennessee’s Business Enterprise Resource Office partners with other state agencies and small business support programs to: • Provide information about grants and loans
• Direct entrepreneurs to partnerships with government and private entities • Offer one-on-one technical assistance
• Host financial and procurement workshops and conferences
• Help with small business expansion, relocation and turnaround situations. For more on BERO, go to www.state.tn.us/
ecd/bero.
Above: Trigger’s BBQ Sauce & Salsas is distributed by Mason Distributors, which is owned by Scott and April Mason of Blountville.
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crest Creating a Rural Enterprise System in Tennessee (CREST) is a collaboration among BERO, the University of Tennessee Institute for Agriculture and the University of Tennessee Institute for Public Service. CREST assists targeted rural areas in transforming their economies. Among CREST’s major goals: • Assist communities in understanding the importance of small business development to the long term development of their local economies • Identify components that should be in place in the communities to support small business development and entrepreneurship • Help communities develop an effective
organization that will focus on small business and entrepreneurship development in the community • Help communities develop a strategic plan to address small business development opportunities and needs, and identify projects that can be undertaken to build community capacity for small business development • Work with communities to prioritize potential projects, and choose a project that builds upon local and regional assets that will be implemented over a one-year period. For more information on CREST, go to
www.trend.ag.utk.edu/crest.html.
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A $500M Chance Race to the Top win puts the state’s schools on a fast track Story by Joe Morris
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hen Tennessee joined Delaware in early 2010 as one of only two states to receive millions of dollars from the federal government’s Race to the Top competition, the reaction was swift and positive from Memphis to the Tri-Cities. The $500 million in funds, to be disbursed over the next four years, will be used by the state to enact a set of broad, comprehensive school reforms from the earliest grades through its community college and university networks. Race to the Top’s goals are to:
• Adopt standards and assessments to help students succeed in college and the workplace
• Build data systems to measure student growth and success
• Recruit, reward and retain effective teachers and principals
• Turn around the lowestperforming schools
These measures, as well as many others that will be part of the overall program in Tennessee, are being met with great enthusiasm by educators and economic development leaders alike, who single out the program’s workplace-readiness components for special praise. “The manufacturing sector, like many other high-skill and high-demand sectors, is increasingly requiring more technical and advanced skills than ever before,” says Mike Edwards, president and chief executive officer of the Knoxville Chamber of Commerce and a member of the Tennessee Business Roundtable. “For our state to compete for these jobs, our incumbent and future workforce must skill up to meet those demands. It is going to take a dramatic increase in output to t n e d g . c om
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compete for these new jobs; current training is not enough, so RTTT funding will be a huge contributor to these efforts.” The funding is coming at a critical time in that it not only provides needed funding at every level of education, but it also comes at a time when the state government, legislature and business community are looking at how to enhance the system, adds Gordon Fee, who heads the Tennessee
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Business Roundtable’s education committee. “All the arrows are suddenly pointing in the right direction, and this looks like a unique opportunity to infuse some well-needed resources into the process,” Fee says. “Now the business community will be watching to make sure these funds are used for augmentation of existing programs, and for some innovative new things as well.” For their part, state educators say they are more than ready to enhance
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existing partnerships with businesses and communities. The spadework is already being laid in that regard, so that when the fedreal funds begin coming, the programs can hit the ground running. “The most visible element of our Race to the Top plan in the coming months will be the Achievement School District,” says Dr. Tim Webb, Tennessee commissioner of education. The First to the Top legislation enacted
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in Tennessee also allowed for the creation of the ASD, meaning the commissioner of education could try bold and innovative reform efforts in some of the state’s lowest-performing high schools. “Race to the Top has fundamentally changed the way we look at education in Tennessee,” Webb adds. “We are no longer near the bottom in education – we’re first. Our plan is now a roadmap for reform for our entire state.”
Left and Above (bottom): Gov. Phil Bredesen and state offcials at the Race to the Top announcement in March 2010 at Eakin Elementary School in Nashville. Above (top): Gordon Fee, who heads the Tennessee Business Roundtable’s education committee. The Business Roundtable has been a major backer of education reform.
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Hemlock’s Arrival Spawns Degree Program Austin Peay Launches Chemical Engineering Technology Track For the better part of a century, Austin Peay State University has enhanced the Clarksville area’s economic development efforts. And now, with the arrival of Hemlock Semiconductor Group’s new, $1.2 billion facility to make polycrystalline silicon for the solar power industry, the school is helping out once again. With a $2 million donation from Hemlock to buy laboratory equipment and a $6.4 million state grant, Austin Peay is set to offer a degree in chemical engineering technology. The three-pronged partnership is being hailed as a win for all parties involved: The state gets to help a new corporate citizen, the college gets to expand its offerings and Hemlock is guaranteed a pipeline of well-trained employees. The university will open its new Chemical Engineering Technology Center for the program in fall 2010, and will
train undergrads to become chemical process operators. At Hemlock and similar facilities, those employees are tasked with overseeing equipment and systems that process chemical substances, a job that includes understanding basic and complex chemical reactions as well as interpreting laboratory results. The hands-on lab and classroom facility will not only benefit Hemlock, but related companies that are likely to relocate to the area to be near the major manufacturer, which is set to open in late 2012 and employ 500 people. “In our efforts to attract manufacturers along the solar value chain, we hope that the lab space, equipment and graduates will serve as added value to those customers wanting to be close to the Hemlock production facility,” says James Chavez, president and chief executive officer of the Clarksville-Montgomery County Economic Development Council. – Joe Morris t n e d g . c om
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photo by Brian McCord
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Rural Renewal Partnership works to preserve the farming legacy of Tennessee and the state’s agricultural acreage Story by Kevin Litwin
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development pressures. “In Tennessee, we’re losing valuable farmland to development and other non-farm uses at a rate of 100,000 acres per year,” says Ken Givens, Tennessee agriculture commissioner. “Something needs to be done.” Something is. In 2010, the Tennessee Farmland Legacy Partnership was established to promote the viability of working
farms in Tennessee. The Partnership seeks to raise awareness of farm preservation among farmers as well as government officials, developers, community planning and zoning officials, business and civic leaders, the media and citizens. “We need to protect Tennessee’s farms from development because healthy, productive farmland provides balance in our communities and contributes
Staff P h oto
early 87,000 farms existed in Tennessee in 2003, but that number dropped to 79,000 in 2008. Farmland during that time decreased from 11.5 million acres to 10.9 million acres. State agricultural officials say factors contributing to the loss of farms and farmland in recent years include the loss of Tennessee’s tobacco industry, higher production costs, natural disasters and
Tennessee has almost 11 million acres of farmland. Left: Jewell Loggins’ farm has been in his family for more than 100 years.
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“We need to protect Tennessee’s farms from development because healthy, productive farmland provides balance in our communities and contributes to our environment …” to our environment, scenic beauty and quality of life,” says Gov. Phil Bredesen. A total of 12 agencies and organizations are involved with the partnership to organize statewide conferences and workshops on farmland preservation issues. The partnership will also serve as a central resource for financial programs offered by private organizations and state and federal agencies. The partnership formally kicks off its campaign in November 2010 with a two-day Tennessee Farmland Legacy
Conference in Pigeon Forge. The conference will give farmers and community planners the opportunity to come together and discuss ways to preserve farmland, including the issue of transferring farms from one generation to the next. Another highlight of the conference will be a forum on growing switchgrass in Tennessee, a crop showing promise in the renewable energy sector. “Agriculture at the farm level in this state is still a $3 billion industry, with Tennessee farmers producing
B r i a n M c Cor d
Left: Sale of cattle and calves is the No. 1 source of agricultural income in Tennessee.
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• Workforce | More than 300,000 available employees rich in manufacturing backgrounds • Training | Top 10 in the nation by site selection consultants • Developed Sites and Buildings | Updated computerized site and community data, including location, available utilities, transportation, zoning and demographic statistics • Infrastructure | Low utility costs, abundance of natural gas and advanced digital/fiber-optic networks • Location | Access to more than 70 percent of the nation’s population within one-day truck delivery • Transportation | Strategic interstate access (I-81, I-40, I-26, I-75, I-77), rail service (Norfolk Southern and CSX), 55 interstate trucking companies, commercial air, charter and air freight services, and a Foreign-Trade Zone • Cost of Doing Business | Numerous tax credits, pro-business communities, and no sales tax on industrial machinery and equipment, raw materials or pollution control equipment • Technology Resources | Universities and technology associations/ Tennessee Technology Corridor • Diverse Economy | Medical technologies, a broad range of manufacturers, corporate headquarters and distribution center
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a huge amount of soybeans, wheat, corn, cotton, tobacco, tomatoes and green beans,” says Pettus Read, director of communications for the Tennessee Farm Bureau Federation. “Tennessee is also in the top five states in America for livestock production, in the top three for horse production, and in the top three for goat production.”
Read says Tennessee farmers also put much back into the economy and thereby keep many other people employed. “For example, if a farmer is baling hay, they must first purchase baling twine, tractor lubricants and other supplies, plus hire extra workers to help with the task,” he says. “When a farmer goes to work, plenty of other
people go to work as well. Whether it’s producing food to eat, fiber for clothes and even corn for ethanol fuel, Tennessee remains a key state in raising crops and livestock that are used all over the United States and beyond. Preserving Tennessee farms and farmland is imperative for that to continue.”
A partnership of 12 The 12 Tennessee Farmland Legacy Partnership members are the Tennessee Department of Agriculture, Cumberland Region Tomorrow, Middle Tennessee State University Center for Historic Preservation, Tennessee Department of Economic and Community Development, Tennessee Department of Environment and
Conservation, Tennessee Department of Tourist Development, Tennessee Wildlife Resources Agency, Tennessee Farm Bureau Federation, The Land Trust for Tennessee, the University of Tennessee Institute of Agriculture, USDA Natural Resources Conservation Service and USDA Rural Development.
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Health
The Future Is Wow Tennessee’s health care companies have a global reach
What’s Online See more of what Tennessee has to offer online at tnedg.com.
Story by Kevin Litwin
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emphis is home to the worldrenowned St. Jude Children’s Hospital as well as major clusters of health care, biotechnology and medical device enterprises. Knoxville is home to the University of Tennessee Health Science Center. And Nashville is recognized internationally as a health-care industry capital, home to Vanderbilt University Medical Center and nearly 20 large health care management companies. In fact, in 1995 the Nashville Area Chamber of Commerce established the Nashville Health Care Council to further trumpet the region as an ideal environment for existing, startup and relocating health-care businesses. Today, health care generates $20 billion in economic impact to the Nashville region. Nashville-based hospital management companies own or operate 63 percent of the investor-owned hospitals in the entire United States. It is for those reasons that Dallas-based Market Center Management Company has
decided to begin construction in 2011 on the quarter-billion-dollar Nashville Medical Trade Center building in downtown Music City. The 11-story center will be constructed atop the existing Nashville Convention Center. The medical building will keep the current exhibition floor of the convention center, and the other 11 stories will be used by tenants that want to showcase their products and equipment to medical-based clients who fly into Nashville to conduct business. Nashville Medical Trade Center is scheduled to open in 2013. “The goal of this massive project is to ultimately bring trade shows, major medical conferences and private buying events to Nashville, with Nashville selected because of the embedded base of health-care manufacturers that are already in the city,” says Bill Winsor, president of Market Center Management Company. “Nashville is a conveniently accessed city and an affordable city, which are other key reasons why we
Right: Tennessee is a world leader in a range of health care and medical-related fields. p h oto b y a n to n y B o s h i er
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chose it for this incredible project.” The center will feature a total of 2 million square feet of showroom/office space that Winsor says will result in a one-stop complex for the medical industry. “The building will attract tenants involved with diagnostic equipment, research companies, medical manufacturers, service providers – even office furniture for doctors’ offices,” he says. “We will be looking for tenants who are heavy hitters in the industry, including companies such as General Electric, Siemens, Steelcase, Medtronic, Emdeon and so forth,” Winsor says. One tenant that has already signed a lease is Healthcare Information Management Systems Society, which is involved in organizing large trade shows. The company will have a 25,000-square-foot showroom where 100 small vendors can display a virtually connected hospital that can showcase everything a hospital deals with – from
“Nashville Medical Trade Center will also result in 2,700 new jobs.” admissions to release. “A permanent, year-round destination for our innovations would only be possible inside this groundbreaking marketplace,” said H. Stephen Lieber, president and CEO of HIMSS. Winsor says he envisions medical people from around the United States and the world traveling to Nashville to visit companies headquartered in the center. “The downtown building will also be ideally connected to the Renaissance Nashville Hotel and its 649 guest rooms,” he says. “One other perk: Nashville Medical Trade Center will also result in 2,700 new jobs.”
Above: Rendering of the new Nashville Medical Trade Center in downtown Nashville.
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Health-Care Manufacturing Strengthens Tennessee’s Economy state gains global notice for products that heal and Make Life More Comfortable From one end of the state to the other, Tennesseans are at work every day manufacturing pharmaceuticals, medical devices and other healthcare products that heal injuries, treat illnesses and make life more comfortable. In Memphis, medical device producers are taking steps to position the city as one of the nation’s top centers for musculoskeletal implant manufacturing. Wright Medical Technology Inc., for example, is investing $10 million to upgrade a distribution facility. Onyx Medical Corp., which produces orthopedic wires, pins, drills and screws, is investing $4.5 million in a new plant. NuVasive, a manufacturer of spinal surgery materials, is investing
$1.6 million in facility upgrades. Memphis is home to a slew of industry innovators such as Smith & Nephew and Medtronic Inc., which completed a $90 million expansion at its facilities. In addition to a quality workforce, Memphis’ welldeveloped logistics industry makes the city a natural spot for the industry to grow, says Willis Yates, president of Y&W Technologies, a supplier to the medical device industry. “The distribution and logistical side of the city really works for the industry. We are only minutes away from Memphis International Airport and FedEx and UPS hubs,” he says. In Franklin, biotechnology company BioMimetic Therapeutics is creating breakthroughs in the areas of tissue
healing and regeneration. In Nashville, Cumberland Pharmaceuticals is pursuing a strategy of acquiring currently marketed and late-stage development pharmaceuticals. In Chattanooga, Chattem Inc., a manufacturer of consumer healthcare products, was purchased by French company Sanofi-aventis in early 2010. Chattem’s products include such well known consumer items as Act Mouthwash, Dexatrim, Aspercreme and Icy Hot. The company, which got its start in 1879, is keeping its headquarters in Chattanooga. “This acquisition creates substantial benefits for our employees, customers and the city of Chattanooga,” says CEO Zan Guerry. – Bill Lewis
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Energy/Technology
Bankrolling the Future TNInvestco program connects venture vapital with emerging business, boosts entrepreneurship
Story by Joe Morris
Dr. Steven Bares, president and excutive director of the Memphis Bioworks Foundation
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ew businesses and startups are always vulnerable to shifts in the credit markets, and in recent years obtaining loans and seed capital has proven extraordinarily difficult. Tennessee is changing that. The new Tennessee Small Business Company Investment Credit Act allows the state to issue up to $200 million in tax credits to several venture capital funds collectively known as TNInvestcos. The funds market the tax credits to insurance companies, which then purchase the credits and provide the capital for investment by the venture funds themselves. The system is designed to free the flow of funds to new, innovative Tennessee companies that are in the earliest stages of development and allow them to take their ideas and products to the market stage, creating jobs along the way. And the twin goals of increasing investment capital and encouraging startups to remain — and grow — in Tennessee are already being realized. Already $8.5 million in TNInvestco funds have been invested in Tennessee-based companies since the initial round of selections was announced in 2009. “We fully expect that figure to grow in the months ahead,” says
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Reagan Farr, commissioner of the Tennessee Department of Revenue. “Additionally, we continue to see a steady stream of companies inquiring about the application process and filing applications with the individual funds, so it is our belief that follow-on investment and deal flow will continue at a substantial pace.” Tennessee’s centers of innovation, such as the logistics and distribution companies in West Tennessee, the healthcare centers in Middle Tennessee, and Oak Ridge National Laboratory and the University of Tennessee in East Tennessee spawn good ideas and new companies with great potential. However, these companies are often gated by a lack of capital, Farr says, adding that the TNInvestco program is significantly easing that problem. One of the first beneficiaries of the program
is Knoxville’s TrakLok Corp., which was formed in 2008 to commercialize products and services into the global shipping industry. It has received funds from Innova, a pre-seed, seed and early-stage investor in companies in the biosciences, technology and ag-bio fields. “Tennessee has unique strengths we need to leverage,” says Ken Woody, president of Innova, which is bullish on the TNInvestco program. “We are an acknowledged leader in transportation and logistics. We also have a very strong history of innovation and entrepreneurship. This program allows us to encourage innovation from our universities, invest in great people and leverage our strengths. All are essential to our continued leadership in the region and across the globe.” For Eric Dobson, TrakLok’s chief executive officer,
p h oto s b y A n to n y B o s h i er
Left: Eric Dobson, president and CEO of Traklok, one of the TNInvestco program’s first beneficiaries, holds a prototype intermodal container lock and wireless tracker. Right: A technician at Traklok works on a prototype intermodal container lock and wireless tracker.
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For Sale – 1,000 Acres
Duck River Super Site 2292 Monsanto Rd. Columbia, TN 38401
• Divisible per user needs • Zoned: M2-Industrial • Four-lane access via US Hwy. 43 from I-65 • All utilities available • One-hour drive to Nashville CBD • CSX Rail on site • Strong skilled labor force • One-day drive to 75% of US population • 79 MW substation on property
Fred Kane – (615) 301-2802 fred.kane@cassidyturley.com www.cassidyturley.com
Brandom Gengelbach, President Maury Alliance (931) 388-2155 office • (931) 215-4543 cell
Ranked in the Top 10 Metros of Best Places for Business and Careers in the Country – Forbes Magazine, May 2006 and 2007
AVAILABLE BUILDING: • Located on 8.9 acres • Reinforced concrete floors • Four dock doors • Three drive-in dock doors • Three bridge cranes • All utilities on-site • Located 2.2 miles from Interstate 26
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Snap-On tools building – 64,550 sq. ft. Other buildings available up to 296,000 sq. ft.
Johnson City/Jonesborough and Washington County Economic Development Board 603 E. Market St., Ste. 200 Johnson City, TN 37601 (423) 975-2380 www.jcedb.org
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the funds are a game changer in every way. The company is adding five to 10 positions, and is moving from research and development to a marketing and sales growth stage. “It has changed our whole outlook on life,” Dobson says. “There are no polite words for what we were going through to try to get investment capital. The fact that the state has stepped in and provided these funds should make it a shining star in the Southeast, if not nationally, for supporting entrepreneurial efforts.”
TNINVESTCOS The TNInvestco program allocated $200 million dollars in tax credits to a cross section of venture capital funds with broad experience in developing new companies in the state. The funds include: • Council & Enhanced Tennessee Fund LLC, Nashville • Innova Fund II LP, Memphis • Limestone Fund LLC, Nashville • MB Venture Partners, Memphis • NEST-TN LLC, Tullahoma • Solidus-TNInvestco, Memphis, Nashville, Chattanooga, Oak Ridge • Tennessee Angel Fund, Nashville • Tennessee Community Ventures Fund LLC, Nashville • Tri-Star Technology Fund LLC, Nashville
• XMi High Growth Development Fund LLC, Nashville and Chattanooga
TNINVESTCO FUNDING REQUIREMENTS To qualify to receive investment from a TNInvestco fund, a business must: • Be independently owned and operated • Be headquartered in Tennessee and have its principal business operations in Tennessee, with at least 60 percent of its employees located in the state • Not be principally engaged in professional accounting, medical, or legal services; banking or lending; real estate development; insurance; oil and gas exploration; or direct gambling services • Demonstrate a high growth potential • Employ no more than 100 workers Once a business qualifies to receive investment funds, it may continue receiving funds as long as it continues to be headquartered and principally operated in Tennessee, with at least 60 percent of its employees located in Tennessee.
Successful Venture(s) TNInvestco Program Leads to Mid-South Angel Network Formation The TNInvestco program, which allows venture capital funds to issue tax credits to insurance companies, then invest the proceeds in startups and pre-market companies, has just spun off in a new direction. Innova Memphis and the Memphis Bioworks Foundation have launched the Mid-South Angel Network. The new venture allows Innova, which has been primarily a seed fund for startup ventures, to bring in investment partners in the companies it elects to back. As a TNInvestco, the Innova Fund II LP invested in Knoxville-based TrakLok, and expects to ramp up its outreach efforts through the new network and additional partners. TrakLok has developed devices that prevent unauthorized entry of shipping containers, and a tracking and management system that provides real-time data on the location and condition of containers. “As Innova can engage other investors, it will expand access to capital and knowledge bases for company advice and company success,” says Ken Woody, president of Innova. “Many of the TNInvestcos are already working closely together to create programs for entrepreneurial education and counsel. This all works to help companies become more successful, advancing the value of the TNInvestco program. “The program, overall, delivers upon the Memphis Bioworks Foundation’s mission of developing the bioscience sector in the Memphis and Mid-South area, and the related economic development and job creation,” he adds. “It will be important for the TNInvestcos to demonstrate the value of the program with quality investments and strong company growth. We would like to see the state continue funding in another few years so these investments in early-stage funds can continue. This would boost the entrepreneurial focus and access to capital in Tennessee, which is critical for long-term innovation and growth.” – Joe Morris t n e d g . c om
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Livability
Streetwise Main Street Program is a cornerstone of downtown revival in Tennessee
Story by Kevin Litwin
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lose to 2,000 cities across the United States are certified as Main Street communities, including 24 in Tennessee. Thanks to the Tennessee Main Street Program, those two dozen Volunteer State communities now have eye-pleasing downtowns that are growing economically, attracting new businesses and even luring residents. “Nice looking downtowns with interesting shops, restaurants, nightlife and residential development are what we’re all about,” says Kimberly Franklin Nyberg, director of the Tennessee Main Street Program, which provides communities with technical assistance and guidance to develop long-term strategies for their downtowns, and achieve economic
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development and historic preservation. The Tennessee Main Street Program was established in the late 1970s and is run by the Tennessee Department of Economic and Community Development. It guides communities with a four-point approach to renovating downtowns and courthouse squares – design, promotion, business mix and organization. “Tennessee Main Street provides advice on how a downtown can look its best, as well as how it can ideally market itself. We also offer suggestions on how a downtown can attract an ideal business mix, plus organize a good management team to oversee the downtown area. Put all those things together and you have
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photo by Antony Boshier
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a vital downtown,” Nyberg says. In 2008 alone, the 22 cities that were part of the Tennessee Main Street program at the time reported total investment in their downtowns of more than $104 million, with $46 million of it in private investment. To apply for Main Street assistance, a city must first have an executive director and paid staff in place to establish a downtown development organization. The state has also introduced a Tennessee Downtowns program in 2010 for cities that can’t afford downtown organizations, yet want to receive advice about revitalization efforts. “Bristol would be a good example of a Main Street success story,” Nyberg says. “We suggested to Bristol that they look back in history at how their city got its start, and they decided to build an entire campaign about being the birthplace of country music. Now, almost every downtown promotion they do is about music, and their downtown district is alive thanks to a Believe in Bristol campaign.” Another Main Street city in Tennessee that is all about promotion these days is Jackson. Katie Pace, executive director of Jackson Downtown Development Corp., says that 20 years ago, downtown Jackson was not a desirable district, something not the case today. “There is a growing interest in downtown Jackson with more and more people inquiring about it,” Pace says. “We are currently
2009 Certified TN Main street communities • Bristol
• Cookeville
• Lawrenceburg
• Cleveland
• Morristown
• McMinnville
• Collierville
• Dandridge
• Murfreesboro
• Columbia
• Dayton
• Ripley
• Greeneville
• Dyersburg
• Rogersville
• Jackson
• Fayetteville
• Savannah
• Johnson City
• Franklin
• Tiptonville
• Kingsport
• Gallatin
• Union City
From left to right: Businesses and shops in downtown Jackson; outdoor dining is one of the many things to do on State Street in Bristol; Green Frog Coffee Co. on the historic downtown square in Jackson.
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The Land of Rivers, Lakes, Mountains and Valleys A Good Place to Live, Work, Shop and Play Located on the Tennessee River Connected to Three Major Interstates (I-24, I-40 and I-75) by a Four-Lane Highway (Hwy. 27) Major Railroad through County Award-Winning Tennessee Airport of the Year, Featuring 5,000’ x 100’ Runway, with Low-Lead Jet Fuel Available Land Available in Dayton and Spring City Industrial Parks
Rhea County A Certified Three-Star Community
Home of: Historic Rhea County Courthouse and Scopes Trial Museum Bryan College, a Major Liberal Arts College Historic Downtown Shopping Districts Dayton is a Tennessee Main Street Community Ad Sponsored by: Volunteer Energy Cooperative
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Rhea Economic & Tourism Council, Inc. (423) 775-6171 107 Main Street • Dayton, TN 37321 www.rheacountyetc.com Volunteer energy C ooper atiVe: 18359 Hwy. 58 N. P.O. Box 277 Decatur, TN 37322 p hone: (423) 334-1020 Fax: (423) 334-7007
Bristol plays up its muscial heritage in its historic downtown that spans two states.
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putting together a Main Street incentive plan that will provide rent and marketing assistance for any new business moving to downtown Jackson. We already have a good office sector in place, so our goal is to bring in more retail and restaurants to the district.” Pace is pleased that three pub/ taverns – Downtown Tavern, Karma and Miss Ollie’s – are thriving in the downtown district. “I like to promote our nightclubs because that gets people downtown at night, and after that will come the restaurants, and after that will come the shops,” she says. “Downtown Jackson also has a new marketing campaign, Be a Part, that is aggressively promoting commercial growth. Things are really starting to get exciting in downtown Jackson.”
Three Cheers for Three Stars State Program Helps Communities Build on Their Strengths Tennessee’s Three-Star program is celebrating its 30th anniversary in 2010, with 88 of the state’s 95 counties achieving the designation. The program is run by the Tennessee Department of Economic and Community Development to help communities focus on their strengths while addressing areas of concern. Communities must complete a detailed application process each year before they can become Three-Star certified. Applicants must point out the positives of their education system, workforce development, business recruitment, business expansion, business retention efforts and
infrastructure, plus must compile a list of five priorities they want to address for improvement. Communities that become Three-Star certified following an evaluation process are then eligible for special community and business development incentives and grants issued by the state. “The Three-Star designation is the result of a great deal of hard work by the counties each year,” says Matt Kisber, commissioner of the Tennessee Department of Economic and Community Development. “They are counties dedicated to long-term economic growth and success.” The Three-Star program has
earned several recognitions and awards over the years, including two from the Southern Growth Policies Board. That organization, a bipartisan think tank devoted to strengthening the South’s economy, has recognized Three-Star as a Southern leader in community certification programs as well as for its industry partnerships. “Tennessee’s Three-Star program helps both urban and rural communities to improve their quality of life in an ever-changing economic environment,” Kisber says. “It helps communities preserve existing employment, create new employment opportunities and improve family income.” – Kevin Litwin t n e d g . c om
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Gallery
What’s Online  See more of Tennessee online in a photo montage at tnedg.com.
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Construction cranes stay busy in the Tri-Cities region. Staff Photo
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Manufacturing accounts for 13 percent of all jobs in Tennessee. Staff Photo
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Novita Technologies in Hendersonville produces parts for the automotive electronics industry. Photo by Todd Bennett
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ThyssenKrupp Waupaca Inc. is expanding its facility in Etowah, doubling its size and adding 100 new jobs. Photo by Todd Bennett
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economic profile Business snapshot
Demographics Population 2000 – 5,689,276
Tennessee offers a wide array of advantages to businesses considering a startup or relocation within its borders. The following section offers a brief statistical look at the state, from transportation resources to job training opportunities.
2009 - 6,296,254 Change – 10.7%
Per-capita income (2008) $34,330
Median household income (2008) $43,610
Largest Cities (2009) Memphis – 676,640 Nashville – 605,473 Knoxville – 185,100
Professional & Business Services 320,912, 12% Educational & Health Services 349,469, 13%
Transportation Equipment $4.01 billion, 18.6%
Other Services - 71,142, 3%
Computers & Electronic Product $3.4 billion, 15.8%
Clarksville – 124,565
HCA Inc., Nashville, 183,000
Employment
Community Health Systems Inc., Franklin, 79,234
Construction – 127,285, 5% Manufacturing - 360,412, 13% Trade, Transportation & Utilities – 597,229, 22%
Chemical Manufactures $3.47 billion, 16.1%
Largest Headquarter Operations and Total Employment FedEx Corp., Memphis, 259,700
Government – 416,030, 15%
Lifepoint Hospitals Inc., Brentwood, 21,000
Export by Category (2008)
Leisure & Hospitality 273,813, 10%
Chattanooga – 171,349
Total nonagricultural employment (2008) – 2,839,500
O’Charley’s, Nashville, 24,000
Misc. Manufacturing $2.7 billion, 12.5% Machinery Manufactures $2.02 billion, 9.4% All Others – $5.93 billion, 27.6%
Dollar General Corp., Goodletsville, 75,200
Total value - $21.53 billion
CBRL Group Inc., Lebanon, 65,000
Transportation
International Paper, Memphis, 61,700
Seven different interstates
AutoZone Inc., Memphis, 57,000
Eight interstate spurs around major metropolitan areas
Information - 49,811, 2%
Ruby Tuesday Inc., Maryville, 36,700
Financial Activities 143,396, 5%
Life Care Centers of America, Cleveland, 29,000
87,259 miles of roadway 1,074 miles of interstate 13,752 miles of state roads 8,114 state-owned bridges
What’s Online
13,752 locally owned bridges
For more in-depth demographic, statistical and community information on Tennessee Economic Development Guide, go to tnedg.com and click on Economic Profile.
13 interstate welcome centers
19 interstate rest areas 9 truck weigh stations
Monroe County eConoMiC DevelopMent Shane Burris, Director 103 College St., Ste. 6 • JPK Building Madisonville, TN 37354 (423) 442-3652 • Fax: (866) 711-5402 E-mail: bshane@monroegovernment.org www.monroeeconomicdevelopment.com
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visit our
advertisers AT&T www.att.com Blount Partnership www.blountindustry.com BlueCross BlueShield of Tennessee www.bcbst.com Bradley Arant Boult Cummings LLP www.boultcummings.com Chattanooga Chamber of Commerce www.chattanoogachamber.com City of Clarksville www.cityofclarksville.com Clarksville-Montgomery County Economic Development Council www.clarksville.tn.us Cleveland Bradley Chamber www.clevelandchamber.com Cookeville Area Chamber www.cookevillechamber.com Dyersburg Dyer County Chamber of Commerce www.dyerchamber.com Economic Development Board of Johnson City Jonesboro www.jcedb.org Gallatin Economic Development Agency www.gallatin-tn.gov Goodlettsville Tennessee www.cityofgoodlettsville.com HTL Advantage www.htladvantage.com
Tennessee Technological University Cookeville, TN www.tntech.edu Enrollment: 10,700 University of Memphis Memphis, TN www.memphis.edu Enrollment: 20,500 University of TennesseeChattanooga Chattanooga, TN www.utc.edu Enrollment: 8,400 University of Tennessee Health Science Center Memphis, TN www.utmem.edu Enrollment: 2,500 University of Tennessee Knoxville, TN www.utk.edu Enrollment: 26,400 University of Tennessee-Martin Martin, TN www.utm.edu Enrollment: 7,150 Tennessee’s low cost of doing business is the direct result of the following business advantages and incentives:
Innovation Valley Inc. www.innovationvalleyinc.com Marshall County www.marshallcountytn.com Maury Alliance www.mauryalliance.com Memphis Area Chamber www.memphischamber.com Metropolitan Nashville International Airport www.flynashville.com Monroe County Economic Development www.monroeeconomicdevelopment.com Networks Sullivan Partnership www.networkstn.com Northeast Tennessee Valley Regional Industrial Development Association www.netvaly.org Oak Ridge National Laboratory www.ornl.gov/partnerships.gov Pulaski-Giles County Economic Development Commission www.gilescountyedc.com Rhea County Economic & Tourism www.rheacountyetc.com Tellico Reservoir Development Agency www.tellico.com The Roane Alliance www.roanealliance.org Town of Smyrna www.townofsmyrna.org
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Right-to-work state Recent workers’ compensation reform One of the lowest overall utility costs in the nation Consistently one of the lowest percapita taxed states in the nation No state sales tax on purchases, installation and repairs of qualified industrial machinery No sales tax on pollution control equipment No sales tax on raw material No state property tax No property tax on work in progress or finished product inventories Investment tax credits Franchise and excise tax jobs credit Attractive depreciation schedules Infrastructure and training grants Reduced sales tax on energy fuel and water for qualified manufacturers “Double weighting” of Tennessee sales for franchise and excise taxes More incentives may be available Sources: quickfacts.census.gov www.tnecd.gov
Ad Index
2 AT&T
4 Blount Partnership
62 Economic Development Board of Johnson City Jonesboro 68 Gallatin Economic Development Agency
76 BlueCross BlueShield of Tennessee
78 Bradley Arant Boult Cummings LLP
46 Chattanooga Chamber of Commerce
C2 HTL Advantage
C4 Innovation Valley Inc.
62 Maury Alliance
31 City of Clarksville
79 Clarksville-Montgomery County Economic Development Council
8 Cleveland Bradley Chamber
9 Goodlettsville Tennessee
1 Memphis Area Chamber
34 Metropolitan Nashville International Airport
50 Cookeville Area Chamber
77 Monroe County Economic Development
52 Dyersburg Dyer County Chamber of Commerce
46 Networks Sullivan Partnership
Ad Index (cont.)
52 Northeast Tennessee Valley Regional Industrial Development Association
60 Oak Ridge National Laboratory
67 Pulaski-Giles County Economic Development Commission
68 Rhea County Economic & Tourism
7 Tellico Reservoir Development Agency
C3 The Roane Alliance
38 Town of Smyrna