Commerce June 2011 by Knoxville Chamber

INSIDE: Q&A with Mitch Steenrod pg. 43 + Monthly Economic Indicators pg. 46

MEMBERSHIP MATTERS

The Knoxville Chamber recently hosted the GoGreenET.com Earth Day a.m. Exchange at the Knoxville News Sentinel; the event was sponsored by Thermocopy. Amy Nolan, editor of the Greater Knoxville Business Journal, announced the publication’s 2011 Business in the Green winners at the event. The winners are Knoxville TVA Employees Credit Union (Community Outreach), Holiday Inn-World’s Fair Park (Energy Efficiency), DTR Tennessee (Recycling/Waste Reduction), and City of Knoxville (Renewable Energy). Businesses participating in the GoGreenET.com Green Business Recognition program were also highlighted at the event. GoGreenET. com is a joint venture between the Business Journal, the Knoxville Chamber, Thermocopy, KUB, and ORNL, and provides an online resource for area businesses to research and share information about becoming more energy efficient and environmentally friendly.

Sponsored by:

With The

CHAMBER 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.

TOP ACHIEVERS

Chamber Hosts Annual Earth Day-Themed a.m. Exchange

CONNECT

facebook.com/KnoxvilleChamber

DANNY HASTABA WATE-TV

visit flickr.com and search for Knoxville Chamber BRIAN COMBS Great West Casualty Company

DANIEL MONDAY Slamdot, Inc.

twitter.com/k_chamber CHAMBER STAFF Doug Lawyer @knoxoakridgeIV Jennifer Evans @knoxevans Justin Kropff @jkropff Kyle Touchstone @knoxecondevguy Mark Field @field101 Michelle Kiely @mkiely1

NEW MEMBERS / NEW PREMIER PARTNERS BRONZE BPV Wealth Management (865) 243-8000 www.bpvwealth.com Financial Services Provision Health Alliance (865) 342-4505 www.pvhealthcare.com Medical Equipment, Supplies, Sales & Services

3GS, LLC (865) 862-4942 www.3gsshredding.com Business & Professional Services

Babcock Services, Inc. (865) 951-0303 www.babcockservices.com Business & Professional Services

East Tennessee Diagnostic Center (865) 684-2619 www.dowellspringsimaging.com Healthcare Providers & Services

Marco’s Pizza (865) 357-7780 www.marcos.com Restaurants - Eating & Drinking Places

Brixx Wood Fired Pizza (865) 474-9971 www.facebook.com/brixxknoxille Restaurants - Eating & Drinking Places

European Auto Garage (865) 862-5270 www.europeanautogarage.com Automotive Sales, Parts, & Service: Repair & Service

Northshore Management (865) 862-4942 www.northshoremgmt.com Business & Professional Services

Brown Chiropractic (865) 694-7964 www.knoxchiro.com Healthcare Providers & Services: Chiropractors Chic Boutique (865) 249-6188 Shopping: Specialty East Tennessee Community Open MRI (865) 692-9964 www.knoxvilleopenmri.com Healthcare Providers & Services

Factory Connection (865) 579-1136 www.factory-connection.com Machine Shops/Machinery Manufacturers, Shopping: Specialty Field of Daffodils (865) 986-2607 Florists, Nurseries & Garden Centers House Doctor (865) 622-2255 www.housedoctorinspection.com Residential Services

Painting With A Twist (865) 675-2500 www.paintingwithatwist.com/knoxville Entertainment Provision Physical Therapy (865) 232-1415 www.provisiontherapy.com Healthcare Providers & Services: Physical Therapy Super Value Publications (865) 237-3361 Publishing/Publications

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

FINANCE & OPERATIONS rvineyard@knoxvillechamber.com

THE DEVELOPMENT CORPORATION (865) 546-5887

MEMBERSHIP mfield@knoxvillechamber.com

PRESIDENT & CEO MICHAEL EDWARDS

DESIGN LADDY FIELDS

WORKFORCE & EDUCATION jevans@knoxvillechamber.com

TENNESSEE SMALL BUSINESS DEVELOPMENT CENTER (865) 246-2663

EXECUTIVE VICE PRESIDENT RHONDA RICE

WRITER JUSTIN KROPFF

ECONOMIC DEVELOPMENT dlawyer@knoxvillechamber.com

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

THE KNOXVILLE CHAMBER’S MONTHLY NEWSLETTER

EDITOR LORI FULLER editorial@knoxvillechamber.com

KNOXVILLE CHAMBER 40

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

Sweet CeCe’s Frozen Yogurt & Treats (865) 602-2010 www.sweetceces.com Restaurants - Eating & Drinking Places The Wellness Center at Dowell Springs (865) 232-1414 www.livewellknoxville.com Personal Services: Fitness & Wellbeing Trademark Advertising (865) 966-1690 www.trademarkads.com Business & Professional Services: Advertising Agencies

Pinnacle Award Winners Share Thoughts on Business and the Innovation Valley Honorees in nine categories were recognized at the 2011 Pinnacle Business Awards presented by BB&T where nearly 600 members of Knoxville’s business community helped celebrate. A silent auction sponsored by WSI Oak Ridge preceded the awards ceremony, which was emceed by WBIR-TV’s Russell Biven. Additional event sponsors included Bandit Lites, Greater Knoxville Business Journal, EnergySolutions, Aqua-Chem, Covenant Health, Partners Development, LMBC, UT-Battelle, Knoxville News Sentinel, Prestige Cleaners, and WBIR-TV. Successful Knoxville businessman Jim Clayton received a standing ovation as he accepted the 2011 James A. Haslam II Leadership Award. The award is given annually to a business leader who exhibits strength of character, resolve, commitment to the community, and success in business. As founder of Clayton Homes, Clayton built the company into the largest producer and seller of manufactured housing in the U.S. He is now vice chairman and principal shareholder of Clayton BanCorp. Inc. Joining Clayton on stage for a celebratory toast sponsored by EnergySolutions were representatives of the night’s other winners: Covenant Health (Impact Award), TrakLok Corporation (Innovator Award), Oak Ridge National Laboratory (Business Excellence Award, large company), Pershing Yoakley & Associates (Mid-Sized Business Excellence Award), HME, Inc. (Minority-Owned Business Excellence Award), Sword & Shield Enterprise Security, Inc. (Small Business Excellence Award), The Tomato Head (Woman-Owned Business Excellence), Brian Winter of Pyxl, Inc. (Young Entrepreneur Award). Following the gala, Commerce held a roundtable discussion with winningcompany representatives. Among the topics were this region’s current business climate, why each of the companies chooses to locate operations in the Innovation Valley, and overcoming obstacles. The discussion was moderated by Chamber Senior Vice President of Membership Mark Field and Chamber Vice President of Policy and Public Relations Garrett Wagley. Excerpts from the discussion are below. To read a transcript of the entire conversation visit www.knoxvillechamber.com/news or scan the barcode and click “news”. PRESENTED BY:

Field: What unique things about East Tennessee and the Knoxville-Oak Ridge Innovation Valley keep your businesses here? Jim Vandersteeg, Covenant Health Chief Operating Officer: I think the Knoxville area has some unique advantages for Covenant Health or

anybody who is in health care here. One of them is the ability to have trained staff. I don’t know if a lot of you have any reason to really keep up with what is going on with health care across the country, but one of the biggest challenges any health care system has is finding trained staff, nurses, therapists, etc. In the Knoxville area, we work with 13 different schools and institutions that help provide staff, help find physical therapists, nurse practitioners, nurses, and so on. This is one of the things I think is an incredibly unique advantage for those who are in health care in this area. One other thing I will mention. One of our challenges is recruitment. The Knoxville area has a certain quality of life and a certain standard of living. It’s beautiful. We’re very, very successful, and I say that in a humble way, at being able to recruit people, both physicians and other people in the community. These two things are really unique advantages that we have here in Knoxville. John McNeely, Sword & Shield Enterprise Security CEO: I will add to the community aspect. Early in the creation of Sword & Shield, my partners and I talked about the work/life balance of our people. We have been in Chicago, Atlanta and northern Virginia/D.C. area, and talked about relocating there, but we just felt like we couldn’t get the same work/life balance in those places like we can here in Knoxville. Imagine commuting an hour to work every day and another hour back. That’s just not something we want to put our people through. Knoxville is home for us and being in the technology field, we saw it would be very easy to be headquartered here and stay here, use technology and not have to worry about relocating to a big market. Field: Jim, you’ve had the ability to move your manufacturing facilities or expand your business into multiple markets. Why did you stay here? Jim Clayton: I ended up at the University of Tennessee because I couldn’t get an engineering degree at Memphis State, and I immediately liked the diversity of lifestyle, the accommodations that we have here, the mountains, and the lakes that we didn’t have in Memphis. You know, God placed me in the right place as we started to build housing. Knoxville is right in the middle of 80 percent of the market for factory built housing. To say that differently, one day’s shipping from here in any direction allows us to reach 80 percent of the market. And so who would want to be in a better location than that?

KNOXVILLE CHAMBER 41

See “PINNACLE” on pg. 42

“PINNACLE” continued from pg. 41 Wagley: Let’s switch gears a little bit and talk about what, if anything, about your business keeps you up at night. Tom Rogers, Oak Ridge National Laboratory Industrial Partnerships and Economic Development Director: We’re the nation’s largest science and energy lab. One of our responsibilities is to make sure that all that research gets to the marketplace. One of the things that keeps me up is figuring out ways to do that. It’s still a challenge to be able to get the right technology and the right person at the right time and to be able to get it to the marketplace. We’re doing a lot better. We have a great relationship with the Chamber. We’re with Doug and Rhonda (Chamber Vice President of Economic Development Doug Lawyer and Chamber Executive Vice President Rhonda Rice) all of the time visiting with prospects. When I was at the Oak Ridge Chamber, I would have given my left arm to have the relationship with the Oak Ridge National Laboratories, and the collaboration of the Innovation Valley partnership, that we have now. Field: What is the best business decision you ever made? Mahasti Vafaie, The Tomato Head owner: I think, for us, it was to decide to give better customer service. When we initially opened, we were really just preoccupied with being “cool” and having something totally different in Knoxville, and didn’t really care too much about the service we were providing. And it was kind of chaotic in there. We started to get really, really busy and we didn’t have a host, people just sat themselves. We weren’t really too concerned about what the customer was experiencing. We just cared about the food and that it was hip and cool. At some point, I think when I met my husband who has an MBA, it was like why don’t you change a few things. Clayton: I think one of the best business decisions I ever made was to learn to fly an airplane at 19 years old. I saw that being able to get around could be very meaningful. I would be on an airplane headed west in the morning at six o’clock a couple of days every week. I was able to get out and back. I have been an active pilot since 1953. Wagley: Covenant Health received the Impact Award. Jim, Some people say we’re coming out of what’s being called the “Great Recession.” How have you changed the way you conduct your philanthropic activities? Vandersteeg: It hasn’t changed that much. Most people who go into health care feel some level of giving; they want to give. They want to help us be a healthier com-

munity. In fact, we started new programs the last couple of years in the middle of the recession to educate people on how to take care of themselves and to educate people on how to recognize cardiac issues. In all honesty, I would say we’re actually doing more the last couple of years than we did three or four years before. So it’s interesting, while clearly I am not asking anybody to feel bad for us, a couple of years ago we made a decision not to take raises at the leadership level. And you would think that would have corresponded with less philanthropic activities by our leaders, but it’s actually resulted in the opposite. I think a lot of it flows out of the mission of the organization and the type of people you attract. In health care, it’s people who want to give to other people. Field: Doug, PYA won a Business Excellence Award, and has experienced tremendous growth during its history. How do you balance rapid growth and maintain core values and customer relationships? Doug Yoakley, Co-Founder, Pershing Yoakley & Associates: I think it’s about the people. We have had great hires. Some of the partners we have now started with us back in the ‘80s. I think every year we try to identify the up and comers for the firm that will later become partners. Having people that want to assume responsibility and seek growth for the firm is essential. Every five years we set some pretty aggressive goals and we have been able to meet those. And we have set pretty aggressive growth for the next five years, and I think we’re on our way to do that. Wagley: Henry, you won the Minority Business Award. What were the biggest diversity hurdles you had to overcome, and how did you address these? Henry Perry, HME Inc. President and CEO: My biggest challenge was trying to convince other people to see my vision. And really, I never did. But maybe because I’m an ex concrete superintendent and I exhibit a life attitude similar to how concrete sets. When the concrete truck pulls up, you have 90 minutes to do whatever you’re going to do, after that, the concrete’s going to start to set up. I didn’t have discrimination challenges. I have always been the type of person if I see something I want and I think it’s a reasonable deal, I will go to the bank and walk in the door and say, “Hey, does this make sense?” I have done that many times. If a problem came up, I dealt with it. I didn’t go in thinking, “Well, I’m a minority and I’m not going to get this or that.” I looked at it as if it was a sound business deal, it should work. I looked at the glass as half full and thought the reasons for why things may have not had gone my way had nothing to do with the fact that I’m a minority. If I had a good deal, I knew somebody would want it.

Knoxville Chamber is Chamber of the Year Finalist! ACCE Recognizes Chamber for Its Organizational Accomplishments The Knoxville Chamber is a finalist for the America Chamber of Commerce Executives’ national Chamber of the Year award. Chambers are evaluated for the award based on organizational excellence including financial health, vision, and execution of a strategic plan; member services, membership growth and retention, and communications; advocacy efforts; and economic development programs. “Over the last few years the Knoxville Chamber has developed and pursued an ambitious strategic plan - a plan that has the Chamber working to make Knoxville, TN America’s Best Business Address®,” said Mike Edwards, the Knoxville Chamber’s president and CEO. “This effort has dramatically improved the way the organization delivers services to members and resulted in the Chamber becoming a more vocal advocate on public policy issues. Being named a finalist for the

Chamber of the Year award is a great honor, and validates the hard work of the Chamber staff, its board of directors, and the many volunteers and community supporters.” ACCE is a national association uniquely serving individuals involved in the management of chambers of all sizes. ACCE provides opportunities for chamber employees to learn best practices and develop professionally so they may lead their business organizations and communities. Chamber of the Year awards honor chambers of commerce in four categories based on the size of the organizations. The Knoxville Chamber is a finalist in the largest category. The winner will be announced August 4, 2011 at the ACCE annual convention.

KNOXVILLE CHAMBER 42

WITH

Q&A

MITCH STEENROD

Incoming Chair, Knoxville Chamber Board of Directors

On July 1, Mitch Steenrod, Pilot Flying J chief financial officer and senior vice president becomes chair of the Chamber’s board of directors. He is replacing current chair, Bandit Lites founder and CEO Michael Strickland. Steenrod will serve as chair for 24 months, a position that enables him to help set the direction for the area’s business community. Steenrod was named Pilot’s CFO in 2004 after joining the company in 2001 when Pilot and Marathon Ashland Petroleum merged. Previously, he spent 12 years with Marathon Oil Company and Marathon Ashland Petroleum. In 2009, he helped Pilot acquire Flying J. The company is now the largest truck stop chain in the United States. In addition to serving on the Chamber’s board of directors, he also serves on the boards of the East Tennessee Foundation and Covenant Health. Steenrod has been a staunch advocate for education improvements in the region and is vocal about the need to identify and support pro-business candidates seeking elected office. Commerce asked Steenrod about his new role with the Chamber and his plans to keep fueling the Innovation Valley’s economic development efforts. Q: As leader of the area’s business community and long time volunteer with the Chamber, how enthusiastic are you about your new leadership role? A: I am humbled and honored to serve as chair of the Knoxville Chamber. The Chamber has made a tremendous amount of progress on key opportunities, capitalizing to make the Innovation Valley area competitive and attractive. From efforts surrounding heightened education standards to a strong pro-business political advocacy, the Chamber is truly positioned to make a continued, dramatic impact on our community. I am pleased to be in a position to serve as a catalyst for further advancement of the core elements of the Chamber’s work as well as helping foster new initiatives that are needed by existing businesses as well as attracting new enterprise to the area. Q: What is your vision for the Chamber’s board of directors? A: Our board has done a great job collaborating in select areas of focus. Of course, continuing that collaboration is extremely important. Moreover, the talent pool that we have on our board is second to none. We need to continually tap that talent base. We also need to promote a visible, unified front on issues that shape our economic climate. The Chamber is composed of talented staff but the influential capacity of the board will be the driving force behind real advocacy, change, and attractiveness. Q: What does Knoxville’s future look like? How will you shape that future as chairman of board of directors?

A: We are at a real tipping point in my opinion. We have a new county mayor and on the cusp of a new city mayor. Those positions are critical in setting the economic tone for Knoxville. If I am doing my job as chair, I will need to be active and involved from a local politics perspective to make sure these elected officials are aware of the need for continual economic progress. I believe setting the right, cooperative tone with our elected officials will elevate our chances for new industry attraction to Knoxville and its surrounding areas. I think the area is poised for a strong recovery out of the great recession and I also believe our area will win the ties as businesses look to move from excessively taxed states. I will certainly be disappointed if Knoxville doesn’t achieve strong job creation over the next couple of years. Q: What’s your role in leading the Chamber’s advocacy efforts as it focuses on making Knoxville America’s Best Business Address®? A: I need to be a key strategic thinker as we promote our area and how we frame our area to visiting companies. The Chamber needs to do great homework on what’s important and promote our advantages. Now, that doesn’t mean stretch the truth – we need to also learn and focus on adjustment if we can’t meet an objective that appears to be a common attraction thread. I also need to continually challenge the Chamber, our elected officials, and our educators on making this the best place to operate for existing industry. We certainly don’t want to go backwards in the process. That means continually promoting the services of the Chamber and holding ourselves to the utmost accountability in ensuring we are maximizing those services. The lack of Chamber involvement should never be the reason one of our area businesses fail. Q: The Strategic Plan includes tactics to elect business-friendly people and contemplates the establishment of a political action committee. How do you envision the Chamber pursuing that strategy? A: First and foremost, we need to be clear on business needs to our current elected officials. We need to be relentless in asking for time on schedules and we also need to be available for discussion when asked. We need to be clear and articulate in our united positions. Further, we need to ensure we promote the support of candidates seeking positions that are pro-business and have a strong desire to see continued prosperity of our region. We also want to ensure we have exceptional stewards of our vast resource base but these stewards are rational as they assess positions on economic development. In terms of establishing a PAC, that is certainly an option. I think a PAC would work well at the state level. I think we will need to be more strategic on the regional or local front. Our engagement at the local or regional level can be better served with intentional and direct communication of economic goals as opposed to utilizing a financial voice.

KNOXVILLE CHAMBER 43

The 2011 Pinnacle Business Awards presented by BB&T provided another fantastic opportunity for the Chamber to celebrate outstanding businesses and businesspeople from throughout the region. Nearly 600 attendees enjoyed the reception, silent auction, dinner, and awards ceremony at the Knoxville Convention Center on May 5. The Pinnacle Business Awards is one of Knoxville’s marquee social events.

The gala’s awards ceremony was preceded by dinner catered by the Knoxville Convention Center. Event lighting courtesy of Bandit Lites

2011 Young Entrepreneur Award winner Brian Winter (Pyxl, Inc.) and UT-Battelle’s Dr. Thom Mason

2011 Pinnacle Business Awards emcee and WBIR-TV anchor Russell Biven and Greater Knoxville Business Journal editor Amy Nolan

The award winners’ Toast to Excellence was sponsored by EnergySolutions

Chamber Ambassador and Anchor Contracting LLC’s Rena Amerson, P-touch Online’s Lori Sexton, and Sue Allan

KNOXVILLE CHAMBER 44

Guests enjoying the silent auction and reception sponsored by WSI Oak Ridge

Chamber CEO Mike Edwards presents the Mid-Sized Business Excellence Award to Doug Arnold of Pershing Yoakley & Associates

Knoxville Convention Center’s Kim Beets and Bandit Lites’ J.R. Sander

Sword & Shield Enterprise Security, Inc.’s John McNeely accepts the 2011 Small Business Excellence Award

Event emcee Russell Biven congratulates Minority-Owned Business Excellence Award winner and HME, Inc. President Henry Perry

KNOXVILLE CHAMBER 45

The Tomato Head’s Mahasti Vafaie accepts the Woman-Owned Business Excellence Award presented by LBMC’s Jeannie Dulaney

Chamber Board Chair and Bandit Lites Founder Michael Strickland presents Covenant Health’s Tony Spezia with the 2011 Impact Award

Monthly Economic Indicators

(April 2011)

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

Workforce

Resident Labor Force

Apr. 2011

Mar. 2011

Apr. 2010

% Change Mar. ’11- Apr. ‘11

Knox Co. 239,360 235,780 230,480 Knoxville MSA 375,210 370,560 362,170 Tennessee 3,113,600 3,093,100 3,022,600 U.S. 152,898,000 153,022,000 153,911,000

Non-Ag Employment

Knox Co. Knoxville MSA Tennessee U.S.

7.7 7.9 9.6 8.7

3.9 3.6 3.0 -0.7

323,100 2,610,700

0.8 0.7

1.5 0.8

21,020 34,370 346,450

10.8 6.7 2.0

-3.9 -4.7 -4.8

8.2 8.5 10.3 9.5

0.7 0.4 0.1 -0.5

-0.5 -0.6 -0.7 -0.8

Knox Co. 20,230 18,250 Knoxville MSA 32,820 30,770 Tennessee 330,710 324,190

Unemployment Rates

1.5 1.3 0.7 -0.1

7.0 7.5 9.5 9.2

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

Inflation Rates - Consumer Price Index (CPI) – All Items

Apr. ‘10-‘11

*Southeast Region Avg. U.S. Avg.

Mar. ‘10-’11

3.4 3.2

Source: U.S. Bureau of Labor Statistics

Apr. ‘09-‘10

2.9 2.7

% Change Mar. ’10- Apr. ‘11

2.5 2.2

0.5 0.5

0.9 1.0

Apr. 2011

Mar. 2011

Apr. 2010

% Change Mar. ’11- Apr. ‘11

% Change Apr. ’10Apr. ‘11

Knox Co. $43,672,403 $40,260,568 $42,564,327 Knoxville MSA $61,517,376 $56,373,672 $59,437,006 Tennessee $568,080,077 $500,067,195 $548,753,693

Local Sales Tax

% Change Apr. ’09Apr. ‘11

*South – City Size Class B/C

Sales Tax Revenue – State & Local $ State Sales Tax

Knox Co. $12,095,630 Knoxville MSA $17,061,642

Housing Market

Apr. 2011

Residential Closings Residential Inventory Median Residential Price

776 15,180 $148,625

Mar. 2011

Apr. 2010

792 14,887 $139,450

% Change Mar. ’11- Apr. ‘11

1,071 17,150 $149,100

% Change Apr. ’10Apr ‘11

-2.1 2.0 6.6

-38.0 -13.0 -0.3

Source: Knoxville Area Association of Realtors

Knoxville MSA 327,800 325,200 Tennessee 2,630,600 2,613,300

Available Labor

% Change Apr. ’10Apr. ‘11

8.5 9.1 13.6

2.6 3.5 3.5

$10,955,774 $11,933,837 $15,226,035 $16,681,421

10.4 12.1

1.4 2.3

(in millions of dollars)

% Change Apr. ’10Apr. ‘11

Residential Building Permits

Mar. 2011*

Knoxville (City) Total Single-Family Multi-Family

% Change Mar. ‘10Mar. 2010 Mar. ‘11

46 19 27

56 32 24

-21.7 -68.4 12.5

Knox Co. Total 152 153 Single-Family 87 129 Multi-Family 65 24 Knoxville MSA Total 173 211 Single-Family 108 187 Multi-Family 65 24 Tennessee Total 1,376 1,742 Single-Family 1,012 1,296 Multi-Family 364 446

-0.7 -48.3 170.8 -22.0 -73.1 170.8 -26.6 -28.1 -22.5

*All 2011 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

Air Service (McGhee-Tyson Airport)

Apr. 2011

Passengers 133,417 Cargo 7,820,439

Mar. 2011

Apr. 2010

143,459 8,593,171

% Change Mar. ’11- Apr. ’11

134,773 8,002,110

% Change Apr. ’10Apr. ’11

-7.5 -9.9

-1.0 -2.3

Source: Metropolitan Knoxville Airport Authority

Source: Tennessee Dept. of Revenue

Retail Sales – National Category

Apr. 2011

Mar. 2011

Total Retail Sales 390,415 Building Materials 27,497 Clothing Stores 18,559 Electronics & Appliances 7,245 Food & Beverage Stores 50,985 Food Svcs & Drinking Places 41,939 Furniture & Home Furnishings 7,048 Gasoline Stations 46,836 General Merchandise Stores 50,394 Health & Personal Care Stores 22,690 Miscellaneous Stores 9,279 Motor Vehicle & Parts Sales 71,139 Non-store Retailers 30,349 Sporting Goods/Books/ Hobby/Music 6,455

Apr. 2010

% Change Mar. ’11- Apr. ‘11

394,585 24,547 18,123 8,252 50,129 41,772 7,669 44,394 50,234 23,834 9,476 75,870 33,437

362,038 29,140 17,087 7,176 47,230 39,439 6,980 38,553 48,229 21,698 8,806 64,547 27,049

-1.1 12.0 2.4 -13.9 1.7 0.4 -8.8 5.5 0.3 -5.0 -2.1 -6.7 -10.2

7.8 -6.0 8.6 1.0 8.0 6.3 1.0 21.5 4.5 4.6 5.4 10.2 12.2

6,848

6,104

-6.1

5.8

Census 2010 Data Releases - Age Census 2010 Median County Population Age Anderson Blount Knox Loudon Union MSA

75,129 123,010 432,226 48,556 19,109 698,030

Source: U.S. Census Bureau

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

KNOXVILLE CHAMBER 46

42.6 41.4 37.2 46.0 40.1 41.5

Under Age 16

Age 16+

Age 18+

14,378 24,058 84,083 8,699 4,022 135,240

60,751 98,952 348,143 39,857 15,087 562,790

58,665 95,634 337,736 38,688 14,546 545,269

Age 21+

Age 62+

Age 65+

56,028 15,955 13,064 91,096 24,627 19,770 316,047 70,560 56,491 37,266 13,043 10,434 13,840 3,346 2,632 514,277 127,531 102,391

PROPEL MENTOR/PROTÉGÉ PROFILE Protégé: Luther Houston, A Corporate Janitorial Contractor President Mentor: Lou Moran, Inter-Agency Insurance Service, Inc. President A Corporate Janitorial Contractor is a minority-owned disadvantaged small company that separates itself from its competition by doing business throughout the southeast. Its mission is to become the preeminent provider of building maintenance services. Its customers are owners and managers of commercial and industrial office buildings and facilities. ACJC offers services and products that set the standard of excellence in quality and customer satisfaction. Services include complete commercial cleaning maintenance, janitorial services, window cleaning, cleaning, carpet cleaning, and other related services. ACJC President Luther Houston and mentor Lou Moran, President of InterAgency Insurance Service, Inc. are paired as a PROPEL mentor/protégé team. The relationship is helping Houston take his company to new heights. “Lou’s business experience, education, and marketing insight is helping my company grow,” Houston said. Moran receives as much as he gives. “I believe that mentoring is a win-win-win situation,” said Moran. “Our relationship is helping Luther become more proficient at his job. At the same time it allows me to give back a little of the knowledge I have learned so that maybe his learning curve isn’t so steep. It also helps our community by

developing the wellrounded, knowledgeable professionals we all strive to be.” ACJC provides commercial and residential services and is exploring disaster recovery opportunities. The company A Corporate Janitorial Contractor’s, Luther is licensed, insured, and Houston and Inter-Agency Insurance Services’s, bonded. Lou Moran Established in 1966, Inter-Agency has grown to a full-service agency with a professional staff of insurance specialists who have over 150 years of experience. Currently, Inter-Agency serves the personal and commercial insurance needs of clients throughout Knoxville, East Tennessee, and the Southeast. Its main office, located near the University of Tennessee, includes a state of the art computer system for record keeping. In addition, it has a rating system that allows it to compare the pricing of the companies it represents instantly. For more information about PROPEL’s Mentor/Protégé Program, call program director Doug Minter at (865) 246-2662 or email him at dminter@ knoxvillechamber.com.

Rep. Ryan Haynes Provides April’s Legislative Briefing Ryan Haynes, State Representative, spoke to Chamber members about the need for a more well-educated and well-trained local workforce during April’s Legislative Briefing sponsored by AT&T and 21st Mortgage Corporation. The Legislative Briefing series is designed to help Chamber members stay updated about the 2011 session of the Tennessee General Assembly. Haynes said improvements in regional math and science scores have to continue to be a focus if we want to see workforce improvements. He noted an increase in the total number of the State’s charter schools should be a focus, too. What’s more, Rep. Haynes feels increased levels of post secondary education are vital for the economic prosperity of the region, noting this level of education is more and more a necessity for students and employees. “All car mechanics need to now have some form of post secondary education,” said Rep. Haynes. “Mechanics need to understand math and electronics because every component of a new car incorporates these elements.” Haynes also spoke to guests about Chamber supported tort reform legislation, which passed in both the House of Representatives and the Senate in May. In most cases, the legislation limits non-economic damages to $750,000 and punitive damages to $500,000. “The government doesn’t create jobs. Businesses and people create jobs,”

AT&T’s Dan Sparks, Micol Brittain & Alan Hill (far right) with State Representative Ryan Haynes

Rep. Haynes said. “What we need to do is create an environment that is conducive to conducting business, and I think you do that by passing things such a tort reform.” Rep. Haynes added that the bill’s success was necessary because all states surrounding Tennessee have passed tort reform. The lack of such reform in this state would leave Tennessee at a disadvantage. Legislative Briefings are sponsored by

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PREMIER PARTNER PROFILE

BWSC is Designing the Future Barge, Waggoner, Sumner, and Cannon, Inc. (BWSC) has been a fixture in the Knoxville area since 1972, delivering customer-focused, multi-discipline architecture and engineering design services to clients across the Southeast. BWSC’s designs, such as the Caswell Park, the Advanced Microscopy Lab at Oak Ridge National Laboratory, and the Spallation Neutron Source, have become a part of the profile of Knoxville. Current projects of interest include the UT Intramural Fields, Honda Aircraft Production Facility, Carbon Fiber Technology Facility, and TVA’s Bellefonte Nuclear Plant. BWSC took the opportunity in 2010 to make organizational changes and key internal investments in order to better serve clients, emerging into 2011 stronger and more efficient. A strategic shift to focus on markets and clients was achieved, and key hires were made to augment that direction change. In Knoxville, new employees include electrical, mechanical, and civil engineering group leaders who have deep roots in the Knoxville area and unrivaled experience in project success. BWSC also made key investments in quality efforts with the launch of its Total Design and Quality and Project Management programs. To date, 12 staff members have earned their Project Management Professional certification. Six staff members from BWSC Knoxville are enrolled in the BWSC Leadership Institute in conjunction with Lipscomb University. And finally, BWSC has an aggressive, ongoing LEED certification program with 49 LEED Accredited Professionals firm-wide to meet sustainable design requirements. BWSC made significant investment in information technology in 2010, embarking on a complete overhaul of enterprise infrastructure that incorporated hardware and software, a shift to cloud computing, and an emphasis on virtual teaming and mobile solutions. More widespread and innovative uses of 3D laser scanning and modeling occurred as demands for complex surveying projects rose. While the nation’s economic conditions have challenged the architecture and engineering industry as a whole, BWSC embraced those challenges, taking the opportunities presented by market conditions to act nimbly and focus on developing solutions to meet clients’ needs. The traditional BWSC focus on client relationship, bolstered by attention to building the company from within, resulted in a healthy 2010 dividend to stockholders, strong expansion into new markets, and a growing momentum. Of the top 500 architecture/engineering firms in the nation as rated by ENR, BWSC ranked 201 for 2010. For more information about BWSC, contact Joe Ledford, Office Manager at (865) 637-2810 or visit www.bargewaggoner.com.

If this were just a networking get-together, it’d be a humdinger’ but it’s much more. Join us for a backslapping, shake-n-howdy like no other when the Chamber hosts 3rd annual shrimp boil sponsored by Comcast, Thursday June 23 from 5:00 – 7:30 p.m. at Hunter Valley Farm. The shrimp boil will feature great food, music, and top business and community leaders. Including shrimp and other good eats, the affair will feature music and gobs of hand-shakin’ and politickin’. State legislators, members of the U.S. congressional delegation, local elected officials, and local candidates have all been invited to attend. Peelin’, Eatin’, and Politickin’ will be held at The Pavilion at Hunter Valley Farm, 9111 Hunter Valley Lane in West Knox County. This fantastic setting will once again add to the event’s unique flair. Casual attire is strongly encouraged! In 2011, candidates for city council, city mayor, and other offices will be on the ballot. The Shrimp Boil will be an excellent opportunity to meet other businesspeople and to jaw with politicians and candidates for these offices. Cost for attending the event is $25 per Chamber member and $35 for non-Chamber member and includes admission, food, and a limited number of beverages. To register please call the Chamber’s events hotline at (865) 246-2622 or visit the online events calendar at www.knoxvillechamber.com.

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Get on the Coach! Tennessee Department of Labor and Workforce Development Rolls Out Mobile Service Centers One of the Tennessee Department of Labor and Workforce Development’s three Career Coaches, mobile centers with services similar to what you might find in a Tennessee Career Center, recently made its way to downtown Knoxville’s Market Square. The coaches provide mobile computer labs with internet access; create venues for workshops including résumé assistance and interviewing skills; and serve as recruitment centers for companies moving into the state. The mobile units are set up as computer lab classrooms, each having 10 workstations that are equipped with a laptop with high-speed internet connection. At one end of the coach is the instructor’s workstation that is connected to a 42 inch flat-screen TV with SmartBoard® overlay and a DVD/CD player. The coaches are equipped with a wheelchair lift, and the workstations are ADA compliant. In addition to Market Square, the East Tennessee coach has made stops at Carson-Newman College, Tusculum College, and King College. “Visitors to the coach are always excited when they see everything that’s inside the bus,” said TN Department of Labor and Workforce Development Mobile Services Coordinator Sarah Beane. “They’re elated that we’re here and very impressed.” Coaches most often travel with five state employees that help facilitate the vehicle’s services. Job applicants can register for work and search available openings, online. They can also take part in résumé preparation, job search skills, and interviewing skills workshops. Employers may reserve coaches for recruiting workers, pre-employment screening, taking job applications onsite, and interviewing applicants. New businesses can use the coaches as working spaces when facilities are still under construction, yet the company needs to start hiring. The buses’ learning-support technology allows employers to also conduct company-training classes. Because 31 of the state’s 95 counties have limited Career Center services, the coaches extend job recruitment and training activities to those areas. These 31 counties have little or no labor staff present, although Workforce Investment Area staff may be available. “We want to make Career Center services accessible to job seekers and employers in their home communities,” said Labor & Workforce Development Commissioner Karla Davis. “The mobile units will offer the same services available to our customers as when they walk into one of our Career Centers located across the state.” The cost of the three coaches is about $188,000 per bus. Funding for the mobile units came out of the American Recovery and Reinvestment Act’s (stimulus) $4.6 million for Re-Employment Services that Tennessee received. The additional total cost per program year to operate all three units, including maintenance and staff, is $513,000. Mid-April figures total 3,422 total job services/referals, 865 total new applicants and 22 total hires. Companies interested in using the Career Coach to interview employees for new or expanding businesses or as a training classroom should log onto www.getonthecoach.tn.gov or call (615) 741-0634. For more information about the program and to see photos of the Career Coach, visit the organization’s Facebook page at www. facebook.com/GetOnTheCoach.

LEADERSHIP PROFILE

John Ley Senior Vice President, Knoxville and Knox County City Executive BB&T – Branch Banking and Trust Company

BB&T was founded in 1872, in Winston-Salem, N.C. BB&T Corporation (NYSE: BBT) and its subsidiaries offer full-service commercial and retail banking and additional financial services such as insurance, investments, retail brokerage, corporate finance, asset management and trust. Locally, BB&T has been in the Knoxville area for almost 20 years and is led by Senior Vice President, John Ley. The 1993 Bearden High School graduate began his banking career in 1997 after graduating from the University of Tennessee, Knoxville with a degree in Business Administration. Ley is responsible for supervising the Knoxville Commercial banking team and working with BB&T clients on their financial needs and growth. BB&T has nine financial centers in the Knoxville area and employs approximately 120 employees. BB&T strives to help its clients achieve economic success and financial security while creating a workplace where employees can learn, grow and be fulfilled with their work. In addition, BB&T commits to optimize long-term rewards to its shareholders and support its home communities through employee assistance and charitable giving. “A real driving force behind BB&T’s success is our unique community banking structure,” Ley said. “BB&T divides its footprint throughout the Southeast and mid-Atlantic into autonomous regions, each with its own president (Missy Wallen here in the East TN region). This structure distinguishes BB&T from other large financial institutions and is designed to push decision-making out into the local regions. This allows those of us in each community market to operate on a more personal level with our clients, providing them with the kind of attention they expect from a hometown bank.” In addition to Ley’s professional accomplishments, throughout his career, he has devoted time to public service and raising money for organizations that are important to the area’s quality of life. Among these organizations are United Way of Greater Knoxville, Helen Ross McNabb Center, St. John’s Lutheran Church, Knoxville Volunteer Rotary Club and East Tennessee Children’s Hospital. BB&T is one of the nation’s top financial-holding companies, with $157 billion in assets and market capitalization of $19.1 billion as of March 31, 2011. Its 36 regions include 1,800 financial centers in 12 states and the District of Columbia.

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Chamber Members Receive 2011 Blue Ribbon Small Business Awards

UPCOMING EVENTS

JUNE 9

5-7 p.m.

Bliss Entertainment, LLC, 118 S. Central Street,

Knoxville, TN, 37902

JUNE 14

New Member Reception

4-6 p.m.

Knoxville Chamber, 17 Market Square

JUNE 15

Bright Ideas Seminar “Calm Down & Speak Up!”

Four Knoxville Chamber members were selected as 2011 Blue Ribbon Small Business Award winners by the U.S. Chamber of Commerce on March 1. Those winners are ES&H, Inc., Hedstrom Design, LLC, Partners Development, and Prestige Cleaners, Inc. Those companies, and 71 others from across the country, were eligible to be regional finalists for the Small Business of the Year Award. In addition to the Blue Ribbon Small Business Award winners, 25 businesses were named national Free Enterprise Honorees for their strong business practices and contributions to the economy. Analysis and Measurement Services Corporation, Knowledge Launch, and Knoxville Comprehensive Breast Center are the Knoxville area businesses that received this recognition. “We’re thrilled to have these members recognized nationally,” said Chamber President and CEO Mike Edwards. “The companies are representative of all the terrific small businesses that exist in the Knoxville-Oak Ridge Innovation Valley.” The Knoxville Chamber nominated 11 local businesses for the U.S. Chamber Small Business Awards program and 10 companies applied. All nominees were past winners of a Knoxville Chamber Pinnacle Business Award and met the U.S. Chamber’s criteria. In addition to being named a Blue Ribbon Small Business Award winner, Prestige Cleaners was named a finalist for the Dream Big Small Business of the Year Award. Seven Blue Ribbon businesses from across the nation – one from each region – were in the running for the grand prize award. “I’m thrilled to be recognized among some of the outstanding small businesses in the country,” said Eddie Mannis, president and founder of Prestige Cleaners. “It recognizes the dedication every Prestige Cleaners employee has to our customers and our community.” “Prestige Cleaners is a fantastic local business,” said Edwards. “The company gives back to the community and has even served as a mentor to other small businesses. This national recognition is well deserved and I hope it will serve as inspiration to the other great small businesses in the Knoxville region.” Chicago, Illinois’ Red Frog Events was named the Small Business of the Year Award winner at the America’s Small Business Summit on May 24.

Business After Hours

Presented by:

Presented by Ellen Kern, Stand & Deliver

11:30 a.m. – 1:30 p.m.

Knoxville Chamber, 17 Market Square