Commerce August 2014 by Knoxville Chamber

INSIDE: New Board Members pg. 44 + Monthly Economic Indicators pg. 46

MEMBERSHIP MATTERS RIBBON CUTTING

TOP ACHIEVERS 1ST PLACE 2ND PLACE

Dunkin’ Donuts celebrated the grand opening of its new location at Hardin Valley in June. Dave Baumgartner, president, is pictured center cutting the ribbon and is joined by family, associates, friends, and Knoxville Chamber Ambassadors.

CHRISTA EARLY

MARC ARCHER

3RD PLACE TIE!

Top Achievers are recognized for their countless volunteer hours and dedication to the Ambassador Program’s mission of serving as an active volunteer extension of the Knoxville Chamber to cultivate, promote, and maintain positive relationships between the Knoxville Chamber, its members, and the community.

DANIEL MONDAY

ALICE EADS

SLAMDOT, INC.

SUNTRUST BANK, EAST TENNESSEE

STAFFINGSOLUTIONS/ EMPLOYBRIDGE COMPANIES

ARCHER DESIGN & MARKETING

NEW MEMBERS / NEW PREMIER PARTNERS SILVER PREMIER PARTNERS KaTom Restaurant Supply, Inc. (865) 225-1545 www.katom.com Restaurant Supplies & Services

BRONZE PREMIER PARTNERS The Holli McCray Group (865) 291-0355 www.hollimccray.com Real Estate

AlphaGraphics (865) 690-7606 www.us476.alphagraphics.com Business & Professional Services: Printers Blossman Propane Gas, Appliance & Service (865) 774-0073 www.blossmangas.com Utilities & Natural Resources: Propane C3 Studio LLC (865) 309-4461 www.c3studiollc.com Architectural & Engineering Services

THE KNOXVILLE CHAMBER’S MONTHLY NEWSLETTER

EDITOR | WRITER JENNY WOODBERY DESIGN LADDY FIELDS

Choice Medical (865) 588-1643 www.choicemedinc.com Medical Supplies, Sales & Services

Dixie Stampede (865) 453-4400 www.dixiestampede.com Attractions & Tourism

Fairways and Greens - Golf Center (865) 777-4653 fairwaysandgreens.org Sports & Recreation: Golf

Choice Orthotics & Prosthetics (865) 588-4256 www.choiceprosthetics.com Medical Supplies, Sales & Services

Dunkin’ Donuts (865) 337-7961 www.bluemontgroup.net Restaurants

Henry and Wallace, LLC (865) 408-8322 www.henryandwallace.com Real Estate: Commercial

ChoiceSpine (865) 246-3333 www.choicespine.net Medical Supplies, Sales & Services

D. Wayne Hughart, DDS (865) 692-2380 www.hughartendo.com Healthcare Providers & Services

Irby (865) 291-6622 www.irby.com Electrical Supplies & Services

Company Wrench Ltd. (865) 766-2571 www.companywrench.com Construction & Contractors

Earthadelic (865) 806-1125 www.earthadelic.com Building & Grounds Maintenance: Landscaping

Lumenos Technologies, Inc. (865) 297-4700 www.lumenos.net Computer & IT Services

CORT Business Services (865) 588-7603 www.cort.com Shopping: Furniture Decorating Den Interiors - Sandy Kozar (865) 982-6368 www.sandykozar.decoratingden.com Residential Services: Interior Design

Elizabeth deBoxtel - Crye-Leike Realtors (865) 938-7750 elizabethdeboxtel.crye.leike.com Business & Professional Services: Marketing Fairfield Glade Resort (931) 707-2167 www.fairfieldglade.cc Event Planning, Catering, & Venues

Nova Medical Centers (865) 524-2743 www.n-o-v-a.com Healthcare Providers & Services Paramount Land Title (865) 288-0177 www.paramountlandtitle.com Real Estate: Title Companies RT Lodge (865) 981-9800 www.rtlodge.com Hotels & Lodging

CONTACT THE KNOXVILLE CHAMBER (865) 637-4550 www.knoxvillechamber.com

FINANCE & OPERATIONS ljohnson@knoxvillechamber.com

THE DEVELOPMENT CORPORATION (865) 546-5887

MEMBERSHIP mfield@knoxvillechamber.com

PRESIDENT & CEO MICHAEL EDWARDS

CENTRAL BUSINESS IMPROVEMENT DISTRICT (865) 246-2654 mhummel@downtownknoxville.org

TENNESSEE SMALL BUSINESS DEVELOPMENT CENTER (865) 246-2663

EXECUTIVE VICE PRESIDENT RHONDA RICE ECONOMIC DEVELOPMENT dlawyer@knoxvillechamber.com

LEADERSHIP KNOXVILLE (865) 523-9137 U.S. DEPT. OF COMMERCE EXPORT ASSISTANCE CENTER (865) 545-4637

K N O X V I L L E C H A M B E R | 40

Seasons Innovative Bar and Grille (865) 392-1121 www.seasons-cafe.com Restaurants Smoky Mountain Guns and Ammo (865) 453-5871 www.smga.com Shopping: Sporting Goods Smoky Mountain Knife Works (865) 453-5871 www.smkw.com Shopping: Sporting Goods Sugarlands Distilling Company (865) 325-1355 www.sugarlandsdistilling.com Attractions & Tourism The House Store (865) 966-4001 www.housestoreTN.com Real Estate The Thomas Group (865) 453-3978 www.thomasgrouponline.com Business & Professional Services:Marketing U.S. Cellular - Powell (865) 938-2363 www.uscellular.com Telecommunications: Wireless

At the Forefront of the Third Industrial Revolution

echnological advances and scientific breakthroughs are changing the landscape of traditional manufacturing, and Innovation Valley is at the forefront of the renaissance. The region, home to premier research institutions like Oak Ridge National Laboratory and the University of Tennessee, is quickly becoming a hub for advanced manufacturing. “There are lots of regions that tout their assets for manufacturing,” said Doug Lawyer, vice president for the Knoxville Chamber. “There is only one region that has in its geography a national lab and a research university, and that’s part of what makes Innovation Valley so special.” So much so that the regional economic development partnership has identified advanced technology and manufacturing as one of its target industries in its strategic plan, Blueprint 2.0. In the plan, Innovation Valley targets five recruitment clusters that are suited to take maximum advantage of the area’s strengths and assets. The advanced technology and manufacturing cluster focuses on recruiting and retaining advanced manufacturers, especially those specializing in automotive parts, carbon fiber and composites, medical equipment, and specialty foods. Over the last year, the region has seen an influx of new and expanded advanced manufacturing operations. Existing manufacturers like Alcoa and DeRoyal have all expanded and beefed up their advanced manufacturing operations. And newcomers like Local Motors, ProNova, and Fresenius Medical Care have made significant commitments to locate to the region because of the great technological assets. One asset in particular that is driving advanced manufacturing businesses to Innovation Valley is ORNL’s Manufacturing Demonstration Facility (MDF). The MDF was created by the Department of Energy’s Advanced Manufacturing Office to provide industry with affordable and convenient access to facilities, tools, and expertise to facilitate rapid deployment of advanced manufacturing technologies to enhance the competitiveness of manufacturing in the United States. The MDF concept was conceived to reduce technical risk and support the business case for private investment in new production technologies that

will reduce life-cycle energy and greenhouse gas emissions, lower production cost, and create new products and opportunities for high paying jobs. One of the emerging technologies being vetted at the MDF is 3-D printing. This technology uses additive manufacturing to print computer-designed 3-D models layer by layer. While 3-D printing has been around since the early 1980s, it’s only now that the technology has become much more advanced and cost effective to use on a wider scale. “Scientists at the MDF are working across the entire supply chain – from 3-D printer equipment manufacturers to make machines that print faster and better parts using different types of materials, to working directly with end users to print very large parts,” said Jennifer Palmer, manager of Industrial and Economic Development for ORNL.

VEHICLE INNOVATION MDF currently houses the largest 3-D printer in the U.S. Vehicle manufacturer Local Motors has teamed up with the center to work on its line of innovative products – including the first 3-D printed car. “(Innovation Valley) is the birthplace of the third Industrial Revolution with the new focus on manufacturing out of the Manufacturing Demonstra-

K N O X V I L L E C H A M B E R | 41

See “Target” on pg. 42

“Target” continued from pg. 41

tion Facility,” said Local Motors CEO Jay Rogers. The Phoenixbased company founded in 2007 by Rogers, opened the doors of a new showroom on Market Square this spring. Local Motors produces a wide variety of vehicles ranging from electric drift trikes to a highspeed, off-road car. All of the vehicles are assembled using local manufacturing partners. “Local Motors is about local vehicle innovation,” said Rogers. “For us that means micro-manufacturing of vehicles that are relevant to a location. It comes with education, jobs, sustainable vehicle production, and service. It’s really a new way of making vehicles for the 21st century.” It plans to unveil the 3-D printed car in September at the Association For Manufacturing Technology’s International Manufacturing Show in Chicago. Local Motors isn’t the only company in Innovation Valley using advanced technologies for automobile production – Alcoa’s Tennessee Operations is working on a $275 million expansion to meet the growing demand for light, durable, and recyclable aluminum sheet for automotive production. Alcoa has been a pillar of Innovation Valley’s manufacturing community for over a century and has provided countless jobs and economic stability to the region. Its latest expansion, announced last August, is expected to be completed by mid2015 and create an additional 200 jobs at the facility. Once completed, the plant will be a key supplier to both the packaging and automotive markets. Much of the volume for the automotive expansion is already secured under long-term supply agreements. “Alcoa making such a significant expansion of its operations for new products specifically for the automotive industry is a tremendous win for the Innovation Valley and our regional economic development efforts for this target business sector,” Lawyer said.

ADVANCED MEDICAL TECHNOLOGY Since 1973, Knoxville has been home to medical manufacturer DeRoyal. The company produces in wide variety of medical supplies, including surgical orthopedics, rehabilitation, wound care, and implants. “Our corporate office is located in Knox County which is often a top recruiting tool for those with the talents needed to succeed in the medical device industry,” said Bill Pittman, DeRoyal president and COO. “Additionally, we have a state-ofthe-art machine shop located in Innovation Valley, as well as a high tech injectionmolding facility featuring custom automation and proprietary, specialized manufac-

turing equipment.” The company’s facility in Powell produces specialized surgical devices for surgical waste fluid management. Pittman said DeRoyal’s latest investment in Innovation Valley has been its Orthopedic Implants Division which produces trauma implants. “Innovation Valley offers the resources needed to thrive in an ever more competitive landscape,” Pittman said. In the last year, Innovation Valley has acquired two new medical manufacturers – ProNova Solutions and Fresenius Medical Care. In 2013, ProNova Solutions, a medical science company that manufactures proton therapy equipment, announced its plans to build a 26-acre facility at Pellissippi Place Technology Park, a collaborative development between Knox County, Blount County, Maryville & Alcoa located in Blount County. Proton therapy benefits include decrease in tissue damage, in debilitating side effects and in secondary cancers by eliminating unnecessary radiation exposure. The $52 million capital investment is expected to eventually create 500 new jobs for the region. The project will help support Provision Health Alliance, a $110 million proton therapy center in Knoxville’s Dowell Springs Business Park. Construction on the Blount County facility is currently underway and is expected to be complete by January 2015. In February, Fresenius Medical Care North America, the world’s largest provider of products and services for kidney dialysis, announced it will bring its East Coast manufacturing operations to Innovation Valley. The company will invest $140 million and create 665 jobs in Knox County. The process to recruit Fresenius Medical Care to the area began in May 2013, and was a collaborative effort by the Chamber, Knox County Industrial Development Board, the state of Tennessee, Tennessee Valley Authority, and Knoxville Utilities Board. “In Knoxville, we’ve found a home with an excellent workforce pool, a facility that will work well for our purposes, and a location that will enable us to serve our customers in the eastern half of the U.S. more efficiently,” said Troy McGhee, vice president of manufacturing for Fresenius Medical Care. “We are additionally drawn to the area’s outstanding business climate, and are looking forward to developing and expanding our presence here in the coming years.” The company is dedicated to raising life expectancy and improving quality-oflife for the one in 10 Americans that will be diagnosed with kidney disease. The Knoxville facility will produce dialysis related products, which will be distributed to Fresenius Medical Care’s clinics and distribution centers in the eastern part of the United States. The company currently serves more than 266,000 patients in 3,220 clinics; 10 of those are located within a 30-mile radius of downtown Knoxville.

K N O X V I L L E C H A M B E R | 42

MENTOR/PROTÉGÉ PROFILE MENTOR

PROTÉGÉ Business: Diligence Security and Training, Inc. Name & title: Denise W. Howell, owner Website: www.diligencesecurity.com Industry Type: Security Why do you think it is important to have a mentor? Trying to run a successful business solo is tantamount to business suicide. A mentor can provide information, networking opportunities, and be a trusted sounding board for the ideas and concerns pertaining to running your business. Even successful entrepreneurs could benefit from a trusted second opinion and sometimes just emotional support. How has this program added to or changed your value of your Knoxville Chamber membership? The return on the investment from this program, in just the first few months (educational based classes, information and networking opportunities), has far exceeded my expectations. What do you want to learn from your mentor? I would like guidance and input on honing my leadership skills and to expand my personal development. I also would like to become more at ease, adaptable, and helpful to others in the networking arena. As our relationship develops my mentor will become the person I feel comfortable going to as a source of support, constructive criticism, and unbiased advice.

Business: Hampton Inn & Suites Downtown Knoxville Name & Title: Anita Lane, general manager Website: www.hamptonknoxville.com Industry Type: Hotel/Hospitality Who has been one of your important mentors and why? What were the key lessons learned? Frank Rothermel of Denark Construction. Frank was one of the first business leaders I met when I took this lead role in my field. He was so generous to introduce me to other business leaders and shepherd my involvement in other organizations such as Introduction Knoxville and Leadership Knoxville. He continues to be a great mentor and friend to this day and still challenges me to believe that I can be the change I want to see in this world. How has being a mentor helped you or your business? It has given us the opportunity to learn about other industries and develop natural relationships where our protégés have become advocates for our business as well. I have been very blessed to learn and grow and feel that I have received much more than I’ve given in our friendships with my two amazing protégés. What do you want your protégé to learn from you? Truthfully it has been different with each protégé. With S&M Marketing and Sharon (my previous protégé in the program), I wanted her to find what she was truly passionate about and find a way to use her strengths to do what she loved every day. With Denise, I want her to see the power of possibility and how to streamline all of the things she wants to achieve into making her business even more successful.

K N O X V I L L E C H A M B E R | 43

Knoxville Chamber Welcomes New Board Members As a membership organization, the Knoxville Chamber looks to its elected Board of Directors for guidance as it strives to serve and support its members and the community. Board members are recognized as key community leaders and influencers dedicated to community growth. Each board member serves a three-year term and may be re-elected. This year, the board welcomes 15 new members who will serve the 2014-17 term (highlighted in orange). Mr. Patrick Birmingham Chair President & Publisher Knoxville News Sentinel Ms. Robyn Askew Chair Elect Attorney Lewis, Thomason, King, Krieg & Waldrop Mr. Daniel Carter Board Secretary Executive Vice President The Trust Company of Knoxville Mr. Tom Fisher Board Treasurer Sr VP and CFO University Health System Ms. Susan Bacon CFO Johnson & Galyon Mr. Eddie Black Sr VP, Corporate Services KUB Mr. Grant Boyd Managing Director & City President SunTrust Bank Ms. Jenny Boyd Owner Boyd’s Jig and Reel Mr. Mike Brennan Director of Operations Green Mountain Coffee Roasters Ms. Angie Cannon CEO Cannon & Cannon Mr. Justin Cazana Principal/Broker Cushman Wakefield

Mr. Peter V. “Doc” Claussen President Gulf & Ohio Railways

Mr. John Kalec EVP & Chief Financial Officer Clayton Homes

Mr. Tim Romero Regional Vice President Enterprise Rent-a-Car

Mr. Antone Davis Vol for Life Coordinator University of Tennessee

Ms. Mae Killibrew-Mosley President & CEO Markets Demand More

Ms. Kendra Rudder Vice President of Media Strategies HGTV & DIY Network

Mr. Mike DiStefano Executive Vice President Pinnacle Financial Partners

Mr. Joseph Ledford Chairman, Knoxville Office Manager Barge, Waggoner, Sumner & Cannon

Mr. Travis Edmondson CEO Clayton Bank

Mr. Andy Lorenz Preconstruction Executive Messer Construction Company

Mr. Bart Fricks COO Copper Cellar

Mr. Michael McIntyre Director, Professional MBA Program UT Graduate and Executive Education

Mr. Parker Frost President Gigmark Interactive Media

Ms. Misty Mayes President/Owner Management Solutions

Ms. Jill Green Professional Recruiter/Shareholder BGT Recruiting & Consulting

Mr. Cavanaugh Mims President Visionary Solutions

Mr. Shannon Harper Vice President Harper Auto Square

Mr. Chris Ooten Director of Real Estate Weigel’s Convenience Stores

Ms. Lisa Healy President Sysco

Mr. Roger Osborne Executive Vice President Caris Healthcare

Mr. Neil Heatherly CEO Tennova Healthcare

Mr. David Reynolds EVP/Manager Commercial Banking Home Federal Bank of TN

Mr. Alan Hill Regional Director, External Affairs AT&T

Ms. Jessica Rich Vice President/District Manager, Knoxville US Bank

Mr. Randy D. Jenkins Chief Financial Officer Partners Development

Mr. Tom Rogers Director, Industrial Partnerships & Economic Development UT Battelle/ORNL

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Mr. Andy Shafer President Shafer Insurance Agency Mr. John Sharpe President ARG Financial Staffing Ms. Susan Varner President/Owner Realty Executives Relocation Mr. Howard H. Vogel Shareholder O’Neil, Parker & Williamson, PLLC Mr. Jonathan Williams President & CEO Accord Federal Services, LLC Ms. Susan Williams Principal SRW & Associates Mr. Greg Wilson Business/Commercial Banking Manager First Tennessee Bank, N.A. Mr. Anthony Wise President Pellissippi State Community College

Knoxville Entrepreneur Center Gearing Up for MediaWorks Demo Day MediaWorks is a selective, highly immersive instructional and mentor-driven program for startups in the digital media sector, which includes digital video, augmented reality, digital signage, digital audio, or digital art. Demo Day will give nine startup companies, chosen by the program, the chance to pitch their ideas to investors. “Demo Day is a chance for these companies to not only showcase their startup to the community, but also to pitch investors for the capital needed to take them to the next level,” said Jonathan Sexton, KEC’s entrepreneur in residence. Aside from the investor pitches, Demo Day will also feature an appearance by Knoxville Mayor Madeline Rogero and a keynote speech from author and HGTV co-founder Susan Packard. Sexton hopes the event will expand the awareness of the vibrant startup community and technology scene that exists in East Tennessee. “There are a lot of opportunities for the local business community to get involved with these companies in a meaningful way, whether by becoming customers, or strategic partners, or seeing these companies for what they are – really solid investment opportunities,” he said. Sexton said Demo Day will become an annual event for KEC’s MediaWorks program. “Accelerators work best when they can tap into an existing knowledge base in a thriving community,” Sexton said. “In Knoxville, we have a thriving digital media industry that reaches worldwide. Companies like Scripps Networks, Regal Cinemas, and AC Entertainment can provide unprecedented sector knowledge that makes Knoxville an ideal spot to startup a digital media company.” The event will take place on Aug. 5 from 4 - 7 p.m. at The Square Room. Demo Day is free and open to the public, but seating is limited. Scan the QR code to register for the event and view profiles of presenting companies.

KEC Digital MediaWorks Companies: Adagio - Cloud-based audio tool that allows multiple users to interact with the same files in real-time by leveraging Chattanooga’s gigabit connectivity.

Artist Gig - Crowdsourcing live audio. Fans record artist-gig mixes and the band approves and returns the music to its fans.

Closeup.fm - Closeup.fm is a touring marketplace for house shows, allowing music fans to host their favorite bands in their living room, and helping bands expand their venue options, and ensuring that they actually get paid.

Wise Feed - Pandora for information. WiseFeed uses machine learning to send users content they want, before they know they want it.

iSpotlight - iSpotlight is a mobile app that aggregates all of the digital content fantasy sports fans need to pursue and enjoy their obsession.

ParOne - Digital signage company for golf, allowing retailers to manage content on their own signs – and simultaneously creating a marketplace for advertisers.

StreetJelly - StreetJelly.com is an online live music community where musicians stream performances to an interactive audience for tip money.

Stuart Jones Media - Using cost-effective drones to create aerial video content that gives real estate agents a true competitive advantage in Knoxville.

Vuture - Vuture is a B2B marketing platform that allows businesses to schedule and deliver direct video messages at a future date, and use advanced analytics to track the effectiveness of customer interaction.

RIBBON CUTTING Technology for Energy Corporation (TEC) celebrated its grand re-opening and expansion in July. Pictured from left to right are: Patrick Mulligan, Knoxville Chamber Ambassador; Chris Mullins, TEC executive vice president/general manager, Electric Power Division; Tony Franklin, TEC board member; Mark Field, Knoxville Chamber; Buddy Simpkins, TEC CEO/ president; Tom Smoot, TEC executive vice president/general manager, Aviation Division; Donna Mullaly, TEC executive vice president/general manager for the Nuclear and Material Testing Division; Carol Matthews, Knoxville Chamber Ambassador.

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MONTHLY ECONOMIC INDICATORS

(June 2014)

NOTES - Knoxville MSA includes: Anderson, Blount, Knox, Loudon & Union Counties.

WORKFORCE Resident Labor Force Knox Co. Knoxville MSA Tennessee U.S.

HOUSING MARKET % Change June ’13June ‘14

June 2014

May 2014

June 2013

% Change May ’14June ‘14

233,020 365,470 3,072,500 156,997,000

229,920 360,600 3,045,700 155,841,000

236,290 371,820 3,143,300 157,089,000

1.3 1.4 0.9 0.7

-1.4 -1.7 -2.3 -0.1

340,600 2,793,300

342,000 2,817,300

328,900 2,737,000

-0.4 -0.9

3.6 2.1

15,970 25,470 249,260

13,570 21,680 215,260

19,160 30,950 310,790

17.7 17.5 15.8

-16.6 -17.7 -19.8

6.3 6.4 7.4 6.3

5.3 5.4 6.3 6.1

7.3 7.5 8.8 7.8

1.0 1.0 1.1 0.2

-1.0 -1.1 -1.4 -1.5

Non-Ag Employment Knoxville MSA Tennessee

Residential Closings Residential Inventory Median Residential Price

June 2014 1,303 11,556 $157,000

Unemployment Rates Knox Co. Knoxville MSA Tennessee U.S.

Sources: Tennessee Dept. of Labor & Workforce Development/U.S. Bureau of Labor Statistics

INFLATION RATES -

*Southeast Region Avg. U.S. Avg. Source: U.S. Bureau of Labor Statistics

% Change June ’12June ‘14 0.2 0.3

June ’13-‘14

May ’13-‘14

June ’12-‘13

2.1 2.1

2.4 2.1

1.9 1.8

-0.3 0.0

% Change June ’13June ‘14

Knoxville (City)

Total Single-Family Multi-Family

May 2014* 188 12 176

May 2013 74 18 56

% Change May ’13May ‘14 154.0 -33.3 214.3

Knox Co.

Total Single-Family Multi-Family

286 110 176

167 109 58

71.3 0.9 203.4

Knoxville MSA

Total Single-Family Multi-Family

323 147 176

200 142 58

61.5 3.5 203.4

Tennessee

Total Single-Family Multi-Family

1,982 1,326 656

1,935 1,414 521

2.4 -6.2 25.9

Knox Co. Knoxville MSA Tennessee

June 2014

May 2014

June 2013

% Change May ’14June ‘14

48,898,170 69,257,941 629,642,610

47,658,379 66,878,292 590,248,417

47,861,990 67,742,817 596,579,750

2.6 3.6 6.7

2.2 2.2 5.5

13,295,337 18,989,494

13,300,633 18,760,439

2.0 2.8

2.0 4.1

% Change June ’13June ‘14 4.3 5.2 1.4 0.8 1.2 4.0 2.2 1.1 2.6 8.9 1.7 7.1 11.1 -3.7

AIR SERVICE (MCGHEE-TYSON AIRPORT)

Passengers Cargo

Apr. 2014 138,442 6,432,670

Mar. 2014 141,497 6,543,144

Apr. 2013 137,011 6,610,048

% Change Mar. ’14Apr. ‘14 -2.2 -1.7

% Change Apr. ’13Apr. ‘14 1.0 -2.7

Source: Metropolitan Knoxville Airport Authority

Local Sales Tax Knox Co. Knoxville MSA

*All 2014 building permit data is preliminary and therefore subject to revision throughout the year. Sources: U.S. Housing & Urban Development – SOCDS – State of the Cities Data Systems; U.S. Census Bureau – Building Permits Survey

*South – City Size Class B/C

SALES TAX REVENUE - STATE & LOCAL ($) State Sales Tax

1,325 15,272 $148,950

RESIDENTIAL BUILDING PERMITS

CONSUMER PRICE INDEX (CPI) - ALL ITEMS % Change May ’13June ‘14

June 2013

% Change June ’13June ‘14 -1.7 -24.3 5.4

Source: Knoxville Area Association of Realtors

Available Labor Knox Co. Knoxville MSA Tennessee

May 2014 1,284 11,295 $144,750

% Change May ’14June ‘14 1.5 2.3 8.5

13,560,783 19,530,542

Source: Tennessee Dept. of Revenue

RETAIL SALES - NATIONAL (IN MILLIONS OF DOLLARS) Category Total Retail Sales Building Materials Clothing Stores Electronics & Appliances Food & Beverage Stores Food Svcs & Drinking Places Furniture & Home Furnishings Gasoline Stations General Merchandise Stores Health & Personal Care Stores Miscellaneous Stores Motor Vehicle & Parts Sales Non-store Retailers Sporting Goods/Books/ Hobby/Music

June 2014

May 2014

438,468 30,487 19,509 8,053 54,636 46,924 8,001 48,495 54,588 24,238 10,068 90,103 36,735

464,425 35,373 21,871 8,162 57,816 50,510 8,530 49,434 56,371 25,143 10,705 96,692 37,181

420,523 28,987 19,244 7,988 53,963 45,139 7,826 47,983 53,214 22,251 9,896 84,095 33,050

% Change May ’14June ‘14 -5.6 -13.8 -10.8 -1.3 -5.5 -7.1 -6.2 -1.9 -3.2 -3.6 -6.0 -6.8 -1.2

6,631

6,637

6,887

-0.1

June 2013

EST. 1869 For more information on research, contact Joe Riley @ jriley@knoxvillechamber.com

Source: U.S. Census Bureau – Advance Monthly Retail Trade Report

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National Site Consultant Studies Innovation Valley Land Inventory

Program Connects Classroom Lessons to Workplace Skills

Innovation Valley hosted its annual Educators in the Workplace series in June. Throughout the month, teachers from the region were offered opportunities to visit businesses around the area and learn about the essential skills needed to thrive in each workplace setting. The Knoxville Chamber, the Blount Partnership, the Roane Alliance, the Loudon County Economic Development Agency, the Jefferson County Chamber of Commerce, and the Anderson County Economic Development Council worked together to organize the Educators in the Workplace series. “Once again, we had an excellent group of businesses participating in the program, giving teachers valuable insight to the workplace,” said Doug Lawyer, vice president of economic development for the Knoxville Chamber. “It’s important to our regional economy that our future workforce be well prepared when they enter the job market. This program helps by showing teachers first hand the skills they should be highlighting in their classrooms.” This year’s participating companies were located throughout Innovation Valley and include: Proton Power, Metropolitan Knoxville Airport Authority, Green Mountain Coffee Roasters, Bush Brothers, McLinc, Scripps Networks Interactive, Oak Ridge National Laboratory, DENSO, Knoxville Utilities Board, and Ball Corporation. Lawyer said teachers are not the only ones benefiting from this program – the businesses do too. “Teachers greatly benefit from the program by discovering new ways to show students the relevance of what they learn in the classroom, and how they can incorporate workplace expectations into their lesson plans,” he said. “And businesses benefit by making connections with educators that will help mold and educate their future workforce.”

Innovation Valley and The Development Corporation of Knox County recently contracted with Comerford Consulting Group to conduct a study of the quantity and quality of available business park land in the region, in comparison to other Southeastern regions. On July 16, Michelle Comerford, a national site consultant with more than 13 years of experience, presented the study’s findings to more than 60 business people and local officials at the Knoxville Chamber. “One of the most frequent issues we deal with when assessing our ability to recruit companies is understanding how competitive Knox County and Innovation Valley are compared to other regions when it comes to having available ready-to-go sites,” said Todd Napier, president and CEO of The Development Corporation. “We believe this is such an important issue it was imperative to bring in an outside expert to evaluate our region’s competitiveness of available land.” Comerford began the process by identifying seven markets across the southeast that regularly compete with the Innovation Valley region on economic development projects. These included: Birmingham, Chattanooga, Charlotte, Nashville, Roanoke, Columbia, S.C., and Greenville, S. C. Once the regions were identified, Comerford did an in-depth research study on 30 business park properties in Innovation Valley and how they fared in comparison to 150 available properties throughout the competitor markets. Sites were measured and given scores based upon five broad categories broken into 27 overall criteria. The categories included aspects of land ownership, environmental, property and transportation attributes, as well as utility features. Once the sites were measured and scored, they were broken into rankings ranging from excellent, good, average, below average, or poor. Of the 3,191 acres measured in Innovation Valley, 540 acres were given an excellent or good rating. In Knox County, only 204 acres of available business park land are considered good. That is just six percent of Innovation Valley’s total available land. “While the Innovation Valley does have nine sites ranked ‘excellent’ or ‘good,’ most have limited acreage, a huge disadvantage when trying to compete for companies looking to relocate and create a large quantity of jobs with high capital investments,” Comerford said. “Innovation Valley also has a limited number of large sites of 100 acres or more available, and no ‘mega’ sites of 1,000 or more acres.” How did Knoxville’s 540 acres of excellent or good land compare to its competitors? Nashville has a total of 1,130 acres with an excellent or good rating. Roanoke 1,030, and Columbia’s whole inventory includes three “mega” sites for a total of 9,500 acres of available land with an excellent or good rating. “It’s imperative we work to increase the quantity of good and excellent sites in the Innovation Valley region,” said Mike Edwards, CEO of the Knoxville Chamber. “If not, we will continually be overlooked during the site selection process, hurting the growth of our region.” Comerford concluded with the importance of increasing the quantity of good and excellent rated land throughout the region. Eighty-three percent of Innovation Valley’s land is rated average or below average. Sites can increase their marketability and attractiveness by becoming a select Tennessee Certified Site, a process which Innovation Valley partners are pursuing. “In Knox County and Innovation Valley as a whole, we need to continue to work to do two things. The first is investing in the land we already have to go from average to good, and good to excellent, because average land does not compete well,” said Napier. “Secondly, we need to look to increase the amount of large acreage sites in Knox County and the entire Innovation Valley. We are losing out to other regions on many projects. When you look at our competitor regions, they have the large readyto-go sites available, and we don’t.” To learn more about the Competitive Land Study, please visit www.knoxvilleoakridge.com/news. Kayla Witt, the chamber’s marketing coordinator contributed this story.

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Chamber Congratulates Local Blue Ribbon Winners The Knoxville Chamber congratulates six member companies on their selection as 2014 U.S. Chamber of Commerce Blue Ribbon Small Business Award winners. This program recognizes companies for their dedication to the principles of free enterprise and contributions to restoring jobs and supporting economic growth. AMS Corporation, G2 Engineering & Management, Inc., Knoxville Comprehensive Breast Center, Management Solutions LLC, Prestige Cleaners, Inc., and The Trust Company of Knoxville were chosen from a record number of nationwide applicants and were honored at the 2014 America’s Small Business Summit in Washington, D.C., in June. Kamilia Kozlowski accepts the Blue Ribbon Small Business Award for the Knoxville Comprehensive Breast Center.

Mike Twine accepts Blue Ribbon Small Business Award for G2 Engineering.

Nazzy Hashemian accepts Blue Ribbon Small Business Award for AMS Corporation.

PREMIER PARTNER PROFILE

The Creel Group For 24 years, Johnnie Creel has been a premier name in the Knoxville real estate business. Her firm, the Creel Group of Keller Williams, specializes in luxury and waterfront properties, as well as farms and acreage. The Creel Group, whose real estate agents are consistently ranked in the top one percent of agents in the region, not only help local clients with the home buying process, but they also service clients internationally. Creel is a Certified International Property Specialist and has traveled extensively with her husband to assist many international clients with their relocation to the Knoxville area. “We are very proud of Knoxville, and we work hard to bring both local residents and relocation clients to that perfect place to call ‘home,’” Creel said. “Knoxville has a strong economic base and great tax incentives for businesses relocating to the area. Creel attributes the growth and success of the Creel Group to its devoted clients. She said they receive two to three new clients each week from referrals from past customers alone. In the last few years, the real estate group has started to use social media to engage and assist homebuyers and sellers. “With 94 percent of home buyers and sellers starting their real estate searches on the internet, mobile technology and social media have transformed the way we do business,” Creel explained. The group can be found on Facebook and Twitter and also has a blog, all of which offer useful information for clients to use when searching for their next home, as well as for the public to keep up with the real estate market. “Social media platforms, such as Facebook, allow us to share information about homes for sale, buyer and seller services, real estate market information and advice, and blog posts instantly to an audience that is actively seeking the information,” she said. “Twitter allows for quick engagement and sharing with local businesses, other Realtors, and potential customers.” The Creel Group is not only focused on marketing the Knoxville area, but also on giving back to the community. In addition to being a Silver Premier Partner at the Knoxville Chamber, the Creel Group is a patron of the Knoxville Museum of Art and Knox Heritage, and is a member of the National Trust for Historic Preservation. The Creel Group also participates in national and local charitable programs throughout the year, such as the Keller Williams Red Day, which is part of the International KW Cares program. The latest project is providing backpacks full of supplies for area school children. Connect with the Creel Group by visiting www.creelgroupknoxville. com/blog or on Twitter @KWCreelGroup.

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Knoxville Chamber Launches Annual United Way Campaign The Knoxville Chamber kicked off its annual employee United Way campaign with a pancake breakfast on July 7. The campaign, entitled “Give Where You Live,” aims to raise $10,000. The Chamber campaign features seven fundraising events and contests including Penny Wars, a potluck lunch, and a cornhole tournament. Chamber employees are encouraged to give and do their part to encourage community growth as they facilitate economic and social well being throughout Knoxville. “At the Chamber, we understand the need for a strong foundation in our community in order for businesses to grow and succeed,” said Kayla Witt, director of the 2014 campaign and marketing coordinator for the Chamber. “The money we raise for United Way will stay in our region and help build that foundation by helping individuals and families in need. Our campaign aims to be a fun and rewarding way for the staff to become involved and give to this great cause.” United Way is a national program seeking growth and social change in its partner communities by focusing on three areas of development: education, in-

come, and health. While aware and concerned with day-to-day needs of its clients, United Way is ultimately concerned with long-lasting changes and development of individuals and communities. In its work with under-represented and low income families and individuals, the organization attempts to provide support in crisis times and fulfill basic needs while providing opportunities for enrollment in health-, education-, and income-focused programs. United Way of Greater Knoxville has a $13 million total goal for 2014 – a $1 million increase from the 2013 goal. United Way provides funding for 45 regional programs including the American Red Cross, Big Brothers Big Sisters of East Tennessee, the Helen Ross McNabb Center, Second Harvest Food Bank, the YMCA, and the YWCA. Thanks to recent donor pledges that will cover all 2014 overhead costs for the organization, 100 percent of contributions now go directly to area partners. Chamber intern Abby Ferguson contributed this story.

Knoxville Chamber Recognized by Southern Business & Development The Knoxville Chamber economic development team was recognized by Southern Business & Development magazine this year as the force behind one of the top locations for large manufacturing projects in the South. Knoxville was ranked third overall in the last 20 years in the SB&D 100, and won an Honorable Mention in 2014 in the Mid-Market division (based on population). SB&D ranks states and cities according to the number of companies making significant financial investments in that community. Some of the most notable 2014 Knoxville deals involved Alcoa, Pronova Solutions, and Leisure Pools. The recent growth of these three companies in the Knoxville community has brought a combined 965 jobs and $334 million in financial investments to the region. Pictured left to right: Patrice Collins, Doug Mintre, Rhonda Rice, Sam Hart, Joe Riley, Kayla Witt, Doug Lawyer, and Lindsay Hammill.

Medal of Honor Convention Launches ‘Give Thanks’ Campaign The 2014 Knoxville Medal of Honor Convention committee recently kicked off its fundraising campaign, “Give Thanks to Our Nation’s Heroes.” The initiative was launched in an effort to welcome and support our nation’s heroes as they come to the city in September for the convention. The campaign gives the public the opportunity to contribute whatever monetary amount they choose, along with the opportunity to leave a personal message, photograph, or video expressing thanks and gratitude to the recipients. “We created ‘Give Thanks’ because residents were regularly approaching the convention committee with requests to contribute and donate to this year’s convention,” said Patrice Collins, Medal of Honor executive committee member. “This is yet another example of Knoxville’s incredible character and giving spirit

that’s displayed throughout the community.” The gift messages will be on display throughout the convention for recipients to view and displayed online for anyone to read or watch. In addition to leaving messages of thanks and gratitude, those contributing $50 or more will receive an official convention T-shirt. The more individuals donate, the more convention and souvenir items they will receive. All contributions are tax-deductible and will go directly to the Knoxville convention and the Medal of Honor Society. All donations will help perpetuate the legacy of the Medal of Honor. To contribute or find out more information, visit www.mohknoxville.com/ GiveThanks.

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All Occasion Catering A.M. Exchange Serves Up Big Crowd More than 100 people joined the Knoxville Chamber for its a.m. Exchange at All Occasion Catering on July 17. All Occasion Catering, the catering sponsor for all a.m. Exchange events, pulled out all the stops as the host providing guests with a delectable farm-to-table themed breakfast while they networked in the company’s banquet hall. For nearly 15 years, the company has been serving up wedding receptions, parties, and picnics in the Knoxville community. All Occasion Catering employs nearly 40 regular staff members and has approximately 125 event staffers. The company caters events ranging from 20 people to 40,000.

UPCOMING EVENTS

AUGUST 14

KNS Open Business After Hours 4:30 – 7 p.m. | Fox Den Country Club Chamber Members Only