Tennessee Economic Development Guide

FedEx Corp., 237,350
HCA Inc., 191,100
CBRL Group Inc., 64,029
Dollar General Corp., 63,200
AutoZone Inc., 52,000
Ruby Tuesday Inc., 39,500
Community Health Systems Inc., 34,300
Life Care Centers of America, 29,000
Central Parking Corp., 23,957
O’Charley’s Inc., 22,294

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.

2000, 5,689,283
2007, 6,156,719
Change, 8.2%
Per-capita income (2006), $32,305
Median household income (2007), $42,389

Memphis, 674,028
Nashville, 590,807
Knoxville, 183,546
Chattanooga, 169,884
Clarksville, 119,284

Total nonagricultural employment (2008), 2,839,500
Government, 423,600, 15%
Construction, 140,200, 5%
Manufacturing, 386,500, 14%
Trade, Transportation & Utilities, 631,300, 21%
Information, 52,400, 2%
Finance, Insurance, Real Estate, 145,300, 5%
Professional & Business Services, 327,500, 11.5%
Educational & Health Services, 350,600, 12%
Leisure & Hospitality, 276,500, 9.7%
Other Services, 101,400, 4%

Largest Headquarter Operations and Total Employment
FedEx Corp., 237,350
HCA Inc., 191,100
CBRL Group Inc., 64,029
Dollar General Corp., 63,200
AutoZone Inc., 52,000
Ruby Tuesday Inc., 39,500
Community Health Systems Inc., 34,300
Life Care Centers of America, 29,000
Central Parking Corp., 23,957
O’Charley’s Inc., 22,294

Transportation Equipment, $4.3 billion, 22.4%
Computers & Electronic Product, $2.83 billion, 14.8%
Chemical Manufactures, $2.41 billion, 12.7%
Misc. Manufacturing, $1.63 billion, 8.5%
All Others, $7.9 billion, 41.5%
Total value, $19.1 billion

Seven different interstates
Eight interstate spurs around major metropolitan areas
87,259 miles of roadway
1,074 miles of interstate
13,752 miles of state roads
8,114 state-owned bridges
13,752 locally owned bridges
19 interstate rest areas
13 interstate welcome centers
Nine truck weigh stations

Bristol-Johnson-Kingsport, Tri-Cities Regional Airport, www.triflight.com
Chattanooga, Chattanooga Metropolitan Airport, www.chattairport.com
Knoxville, McGhee Tyson Airport, www.tys.org
Memphis, Memphis International Airport, www.mscaa.com
Nashville, Nashville International Airport, www.nashintl.com

Export by Category
Transportation Equipment - $4.3 billion, 22.4 %
Computers & Electronic Product - $2.83 billion, 14.8 %
Chemical Manufactures - $2.41 billion, 12.7 %
Misc. Manufacturing - $1.63 billion, 8.5 %
All Others – $7.9 billion, 41.5 %
Total value - $19.1 billion

Workforce development and career services receive special attention in Tennessee. Thirteen Local Workforce Investment Areas, administered by local boards, offer customized, com­prehensive services for employers and job seekers. Specific information also is avail­able through the state’s online information center, The Source: www.tennessee.gov/labor-wfd/source.

Additionally, Tennessee Career Centers in each cluster provide free services including workshops, access to resources and office equipment. Seventy-five percent of the state’s population is located within 25 miles of a full-service Career Center.To locate a Career Center, visit www.tennessee.gov/labor-wfd/cc.

Industries in Tennessee can receive high-level support from major research and technology centers, including:

Oak Ridge National Laboratory
University of Tennessee SimCenter at Chattanooga
University of Memphis FedEx Institute of Technology
Vanderbilt University
Medical Center
The Tennessee Manufacturing Extension Partnership also assists manufacturing firms by providing access to engineers and scientists at NASA-Marshall Space Flight Center in nearby Huntsville, Ala., and public and private universities and colleges.

Tennessee’s low cost of doing business is the direct result of the following business advantages and incentives:

Right-to-work state
Recent workers’ compensation reform
One of the lowest overall utility costs in the nation
Consistently one of the lowest per capita 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 credit of 1 percent
Franchise and excise tax jobs credit
Attractive depreciation schedules
Infrastructure and training grants up to $750,000
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

Tennessee has entered the international job market in a major way, with growth fueled by the substantial automotive industry within the state.
More than one-third of all workers in Tennessee depend on exports for their jobs.
More than 5,300 companies export from Tennessee locations.
Foreign investment in the state has resulted in almost 134,000 jobs.
Tennessee’s export shipments grew 73 percent from 2003 to 2007.
Seventy-one Canada-based satellite companies employ 9,319 Tennesseans and represent a total investment of approximately $1.4 billion.
Tennessee’s 2007 exports to Canada totaled more than $6.7 billion, making Canada the largest consumer of Tennessee exports.
To date, 165 Japanese companies employ approximately 41,168 Tennesseans, with investments of more than $11 billion.
These investments make Japan the largest foreign investor nation in Tennessee.

Source: U.S. Chamber of Commerce, Tennessee Department of Economic & Community Development

Tennessee offers an abundant supply of affordable electric power, available through the Tennessee Valley Authority.
Electric rates in Tennessee are among the lowest in the nation – about 14-26 percent below the national average.
For seven years in a row, TVA has delivered power to customers with 99.999 percent reliability.
Technical, financial and consulting services are available to help companies locate and find business solutions that generate savings and create profits.
TVA’s Megasites program features community sites precertified for large automotive plants or other specifically identified industries.

More than 35,000 miles of natural gas pipelines and distribution lines crisscross the entire state.

20 short-line railroads operating on 829 miles of rail
Three major railroads cross parts of the state: Norfolk-Southern, CSX, Illinois-Central/ Canadian National
Six major rail lines operating on 2,340 miles of rail
Memphis is the third-largest rail center in the U.S.

1,062 miles of navigable waterways Tennessee-Tombigbee Waterway provides direct access to Gulf of Mexico harbors and international markets.

Access to deep-water ports on the Gulf of Mexico (Tennessee-Tombigbee Waterway) and the East Coast.

Memphis is the fourth-largest inland port in the U.S.

29 transit systems (bus, van and light rail) serve 95 counties

Tennessee continues to stand at the top of the charts when it comes to economic development. Included in its growing list of recognitions are the following ratings:
Tennessee named winner of Site Selection magazine’s 2007 Competitiveness Award, May 2008
Site Selection magazine ranked Tennessee third in its annual Governor’s Cup, March 2008
Tennessee’s economy is ranked fifth-best in the country by the American Legislative Exchange Council, March 2008
Site Selection magazine ranked Tennessee sixth in business climate, November 2007
Tennessee jumps seven spots on the Forbes Best States for Business list, tying for the most improved, biggest mover, July 2007
Forbes ranks Knoxville No. 5 and Nashville No. 10 on the Best Places for Business and Careers list, April 2007
Expansion Management named four Tennessee cities to its ninth annual “America’s Hottest Cities” list: Chattanooga, Knoxville, Memphis and Nashville, February 2007
Silver Shovel Award given by Area Development magazine for successful job creation and retention efforts, July 2006

All six commercial airports have invested heavily in new cargo-handling infrastructure. Memphis International is a central hub for FedEx – and is the No. 1 transporter of air cargo in the world.
75 publicly owned, general aviation airports
39 Automated Weather Observing Stations

Seven different interstates
Eight interstate spurs around major metropolitan areas
87,259 miles of roadway
1,074 miles of interstate
13,752 miles of state roads
8,114 state-owned bridges
13,752 locally owned bridges
19 interstate rest areas
13 interstate welcome centers
9 truck weigh stations

Tennessee’s Top Projects of 2008

Volkswagen Group of America
Category: Auto manufacturing
Location: Chattanooga, Hamilton County.
New or expansion project:  New
Company investment: $1 billion
Jobs: 2,000

Hemlock Semiconductor
Category: Manufacturing of polycrystalline silicon
Location: Clarksville, Montgomery County
New or expansion project:  New
Company investment: $1.2 billion to $2.5 billion capital investment
Jobs: 500, with the potential of up to 900 within five to seven years. If plans are fully implemented, the project would become the largest announced corporate capital investment in Tennessee history.

Science Applications International Corp.
Category: Headquarters
Location: Oak Ridge, Anderson County
New or expansion project:  Expansion
Company investment:  $10 million
Jobs: 150; SAIC will employ nearly 900 people in Oak Ridge by 2009

Johnson Controls Inc.
Category: Automotive seating, consoles and interior components manufacturing
Location: Columbia, Maury County
New or Expansion project: New
Company investment:  $19.72 million capital investment
Jobs: 311

Leclerc Foods
Category: Baked good manufacturing; Headquarters, R&D, Manufacturing
Location: Kingsport, Sullivan County
New or expansion project: New
Company investment:  $35,000,000 capital investment
Jobs: 85

Star Manufacturing
Category: Manufacturing
Location: Smithville, DeKalb County
New or expansion project: Expansion
Company investment:  $4.24 million in capital investment
Jobs: 200

Green Mountain Coffee Roasters Inc.
Category: Manufacturing
Location: Knoxville, Knox County
New or expansion project: New
Company investment:  $55 million capital investment
Jobs: 360

Asurion
Category: Headquarters
Location: Nashville, Davidson County
New or expansion project: Expansion
Company investment:  $100 million capital investment
Jobs: 800 over five years in a combination of headquarters and customer-care
positions

Tennessee Department of Economic and Community Development
www.tnecd.gov

TVA Economic Development
www.tvaed.com
www.tvasites.com

SOURCES:
www.tennessee.gov
www.labor-wfd/source