AnnuAl RepoRt - Georgia Department of Economic Development

ga’09
Annual Report

Dear GDEcD partners,
It’s no secret that the state’s fiscal year 2009 spanned a time of unprecedented economic challenges.
Yet in the face of a global business climate in which companies had less access to credit than ever,
Georgia’s solid portfolio of assets still attracted more projects than the previous year. Global giants
like NCR, Newell Rubbermaid and First Data infused the state with new jobs and investment, as did a
multitude of other entrepreneurial companies across the state.
Like our corporate and community partners, the GDEcD team set its sights on a growth strategy
and marketed Georgia harder than ever, knocking on more doors, pursuing more leads and building
the relationships essential to bringing jobs to Georgians. Collaboration between and among staff in
our 10 international offices, our regional representatives, the Atlanta team, and our many economic
development partners helped bring more than 17,000 jobs to Georgia in FY09, mitigating the effects of
the recession and giving our citizens hope for the future.
Among the bright spots of this past year were:
• NCR’s commitment to bringing its global headquarters to Atlanta, part of this Fortune 500 company’s
massive expansion in Georgia that will create more than 3,000 jobs.
• Kia’s new auto manufacturing plant in West Point, which, with its suppliers, will create more than 6,000
jobs, giving the community and the state a significant economic boost.
• The 2009 BIO International Convention, the world’s top gathering for the biotechnology field, during
which thousands of industry professionals visited 32 Georgia exhibitors.
The Film, Music and Digital Entertainment Division, buoyed by the 2008 Georgia Entertainment Industry
Investment Act, attracted a record amount of investment to Georgia from production companies ready
to capitalize on this aggressive incentive and take advantage of Georgia’s skilled crews and diverse
locations. Communities all over the state benefited from the star power and the economic power these
productions generated.
Despite a worldwide cutback in travel, tourism in Georgia held its own, attesting to the richness of the
state’s travel destinations and to the hard work and commitment of the Tourism Division staff and its
partners. New and renewed initiatives ensured support for the state’s communities and tourism partners.
Among these programs were aggressive grassroots and social media initiatives, educational workshops
and seminars, and increased outreach through public relations.
All in all, I’m proud of the value our GDEcD team of professionals delivered in FY09, particularly under
trying economic conditions. We brought value to companies, to entertainment productions, to travelers,
and thus, ultimately, to the citizens of Georgia. It’s a value proposition we will continue to build on for
the future as we go about our mission to bring jobs and investment to Georgia.
Sincerely,
Ken Stewart
Commissioner
Georgia Department of Economic Development
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global
commerce
Fiscal 2009 saw companies from
Georgia’s strategic industries grow
and thrive, thanks to the teamwork
of the Global Commerce Division
and its economic development
partners around the state.
327
announcements
16,967
jobs created
$2.55
billion in
investment
• 47% of jobs announced in rural Georgia
• 40% of projects created by entrepreneurs & small businesses
• 46 international projects created 28% of total investment
• 219 trade deals in 42 countries
• #1 in entrepreneurial activity (Kauffman Foundation)
• 129 Entrepreneur Friendly communities
• #1 in workforce (CNBC)
• 80 million media impressions around the world
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HEADQUARTERS
NCR
“The decision to consolidate
functions in
Georgia and build a
technology-focused
corporate headquarters
campus is right
in line with our business
strategy to drive
growth, improve our
innovation output,
increase productivity
and continually upgrade
our focus on the
customer.”
–Bill Nuti, Chairman & CEO, NCR
In fiscal 2009, Fortune 500 technology company
NCR announced three major locations in Georgia. In
fall 2008, the company announced it would establish
a global Center of Excellence and its Worldwide Customer Service
headquarters in Georgia, resulting in 916 new jobs in Peachtree City and
Duluth. And in June 2009, the company announced it would relocate
its corporate headquarters to Duluth, adding 1,250 jobs, and establish a
new manufacturing facility in Columbus, encompassing 870 jobs.
Other headquarters
Company Jobs/Investment Location
Newell Rubbermaid 200 Fulton Co.
Wendy’s/Arby’s Group 120 / $3.5M Fulton Co.
Little League $5.5M Houston Co.
Powertech America, West Point
ADVANCED MANUFACTURING
Powertech America
Pirelli Tire, Floyd County
Transmission manufacturer Powertech
America is one of many major Kia suppliers
the Global Commerce team helped locate in
Georgia. Powertech is creating 355 jobs and investing $150 million at its
213,000-square-foot facility on the Kia site in West Point.
Other advanced manufacturing
Company Jobs/Investment Location
Toyo Tire 400 / $270M Bartow Co., 3 rd expansion in GA
Pirelli Tire of N. America $15M Floyd Co., 2 nd expansion in GA
Blue Bird 106 / $9.7M Peach Co., 3 rd expansion in GA
GreenTech Manufacturing 320 / $20M Coffee Co., new location
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Chairman & CEO Bill Nuti and Governor Sonny Perdue announce NCR’s
global headquarters relocation at Georgia’s Capitol in June, 2009.
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BIO 2009
Georgia’s pavilion housed 32 partners who collaborated to help the
state put its best foot forward in this high-wage industry. Emory and
Georgia Tech announced new research enterprises during the convention,
and the state and its partners collected hundreds of leads for new
growth opportunities.
BIOSCIENCES
“The Georgia Department
of Economic Development
provided exceptional
support we found
extremely beneficial.
Typically, this type of
event would not be practical
for a company of
our size. However, with
GDEcD as a partner, we
were able to maximize
publicity and awareness
for our company.”
– Dr. Bob McNally, CEO, GeoVax
GDEcD seized the opportunity presented by the
2009 BIO International Convention’s first-ever visit
to Georgia to market the state as the crossroads
of global health. The state’s unique business assets, global reach, vast
reserves of talent and spirit of collaboration continued to attract bioscience
companies and investment during the year, and were showcased
during the convention to the 14,000 biotechnology industry professionals
who attended. In recognition of Georgia’s dynamic business advantages
for the bioscience industry, the BIO International Organization
named Governor Sonny Perdue “Governor of the Year.”
other bioscience projects
Company Jobs/ Investment Location
Cancer Treatment
Centers of America
500 / $150M Coweta Co.
Athens Research & Tech $5M Clarke Co.
St. Joseph’s Translational
Research Institute
20 / $18M Fulton Co.
Governor Sonny Perdue visits Sciele’s
exhibit at the Georgia Pavilion during
the BIO 2009 conference in Atlanta.
Exhibiting partners at the Georgia Pavilion
Georgia Companies
Abeome Corporation
Aderans Research Institute, Inc.
Altea Therapeutics Corporation
CryoLife, Inc.
GeoVax Labs, Inc.
Kemira Chemical
Optima Chemical Group, LLC
Sciele Pharma, Inc.
Shionogi & Co., Ltd.
St. Joseph’s Translational
Research Institute
UCB, Inc.
United Parcel Service
Zirus, Inc.
Georgia Research Institutions
Emory University
Georgia Institute of Technology
Georgia State University
Medical College of Georgia
Morehouse School of Medicine
University of Georgia
Yerkes National Primate
Research Center
Agencies & Organizations
Atlanta Convention and
Visitors Bureau (ACVB)
Atlanta Development
Authority (ADA)
Centers for Disease Control
and Prevention (CDC)
Centers for Disease Control
and Prevention Foundation
Georgia Bio (GaBio)
Georgia Department of Economic
Development (GDEcD)
Georgia Innovation Crescent
Georgia Quick Start
Georgia Research Alliance
Venture Lab
Georgia Work Ready
Metro Atlanta Chamber
National Health Museum
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ADVANCED COMMUNICATIONS
& INFORMATION TECHNOLOGY
Cbeyond
ENERGY
Suniva
AGRIBUSINESS/FOOD PROCESSING
Chicken of the Sea
“State and local officials
in Lyons presented us
with a tremendous opportunity
that ensures
our ability to compete
in the marketplace for
the long term.”
–Shue Wing Chan, President,
Chicken of the Sea International
Solar cell manufacturer Suniva will create 100 green
jobs to manufacture high-efficiency, low-cost solar
cells. The Gwinnett County production facility will
grow in stages, bringing its capacity to 175 megawatts by early 2010.
Georgia will be home to the first domestic Chicken
of the Sea canning operation in decades when the
new facility in Lyons opens. The company will create
200 jobs and invest $20 million in a 200,000-square-foot facility, where
workers will process frozen tuna loins into shelf-stable Chicken of the
Sea canned tuna to be shipped throughout the U.S.
Other agribusiness/food processing
Company Jobs/ Investment Location
Kellogg 220 / $30M Richmond Co.
MillerCoors 25 Dougherty Co.
Lance 70 / $10.5M Muscogee Co.
Innovation/Small
Enterprise FY09
• 65% of small businesses
called on were in Georgia’s
strategic industries.
• The Georgia Centers of
Innovation increased
innovation activity by 55%.
• New R&D legislation allows
qualified tech startups to
take a credit against their
with-holding tax liabilities.
• iResearchGeorgia.org
was launched to
streamline company access
to university research.
Communications and IT provider Cbeyond is
doubling the size of its operations in Cobb
County, adding 600 jobs and building out a
new call center and training facility. Cbeyond started with 15 employees
in Georgia, and this expansion will see employment top 1,300 over the
next several years.
“I chose Atlanta for its abundance of embedded technology talent,
its airport, its affordability, its natural beauty, the weather, diverse
and harmonious culture—and the incredible golf courses.”
–- Jim Geiger, CEO, Cbeyond
Other advanced communications/IT
Company Jobs/ Investment Location
First Data 1,000 / $50M Fulton Co.
Verizon 600 / $27M Fulton Co.
YesVideo Inc. 300 Gwinnett Co.
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Logistics
General Mills
Global outreach
“General Mills is pleased
to be growing our presence
in Georgia with
the new distribution
center in Social Circle.
Our Covington team
demonstrates day after
day the dedication of
Georgia employees, and
we are excited by the
strategic location that
Social Circle offers.”
– Kevin Schoen, Vice President
of Logistics, General Mills
Global food company General Mills is growing its
Georgia operations by adding a new 1.5 millionsquare-foot
distribution center in Social Circle. The
company is investing $42 million and creating 112 jobs via a third-party
logistics provider. The project showcases Georgia’s logistics strengths:
great location, outstanding workforce and business-friendly environment.
Other logistics locations
Company Jobs/ Investment Location
Chico’s FAS 189 / $15M Barrow Co.
Big Tex Trailers 130 / $7M Crisp Co.
International
Trade FY09
• 54% of trade deals were
assisted by GDEcD’s international
offices.
• 52% of deals assisted were
for companies with fewer
than 20 employees.
With the Global Georgia initiative, Governor Sonny Perdue made Georgia’s
international promotion and business development a priority.
Georgia’s 10 international offices extended the outreach of the state to
markets around the world, as Georgia sought foreign direct investment
to generate economic growth and jobs and helped Georgia companies of
all sizes to enter new markets. International leads increased 129%, from
1,193 in FY08 to 2,734 in FY09. GDEcD hosted 51 incoming delegations
representing 20 countries and 31 outbound missions to 15 countries, including
four Governor-led missions.
With an annual budget of $2.4 million in FY09, Global Georgia’s
initiative followed four main strategies:
• Raise Georgia’s visibility in key markets
through targeted marketing initiatives.
• Build and develop relationships with
in-market key decision-makers.
• Target each country’s top 3 industries.
• Focus on Georgia’s strategic industries.
Public
Relations
Advertising
Direct Marketing
Travel
Events
Web
Resources
Marketing Collateral
Membership
• 23% of Trade’s key clients
closed deals, averaging 2.3
deals each.
TRADE DEALS FY07 FY08 FY09
Deals 153 168 219
Value of Deals $14.9M $17.4M $29.1M
Companies Served 221 274 725
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tourism
The Tourism Division promotes Georgia as a
premier travel and tourism destination, bringing
revenue to the state that filters through the
economy and improves the quality of life for
Georgia’s citizens. Tourism staff members are
located throughout the state and are supported
by sales representatives in Germany and the
United Kingdom.
The 2008-09 recession demanded that the
division adopt new strategies to encourage travel
in Georgia. Among these were:
• Encouraging Georgia residents and those in
nearby states to plan their vacation in Georgia.
• Assigning each staff member grassroots
marketing, promotion and community outreach
initiatives to carry out.
• Ramping up public relations activities.
• Developing newsletters for consumer and group
markets.
• Connecting with potential travelers through popular
social media tools such as Facebook and Twitter.
• Making the tourism website, www.ExploreGeorgia.org,
easier to search, and adding a function that suggests
trips based on a user’s traveling preferences.
We continue to focus on our international markets in
Germany, UK, South America, Canada and the emerging
Asian markets. By ensuring strong Georgia brand
awareness in these areas, we will continue to outpace
our competition as tourism and travel rebounds.
$20
billion in direct
economic impact
$34.8
billion in total
economic impact
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FY09 Georgia
Tourism Grants
The Tourism Division’s regional team fanned out across the state to
grow the industry in FY09:
• Georgia’s 11 Visitor Information Centers (VICs) participated in over
1,800 community promotions.
• The regional representative team made 1,000+ site visits.
• The tourism team conducted, hosted or presented over 400 seminars,
workshops or training sessions.
• The tourism team worked on almost 200 tourism site projects and
partnered with numerous state agencies on programs meant to
keep Georgia tourism healthy and sustainable.
79%
21%
Product development successes
Company Jobs/ Investment Location
National Infantry Museum 25 / $100M Columbus
Marketing Georgia
The GDEcD tourism sales team markets the state to domestic and international
consumers, travel agents, group tour operators, travel media,
receptive tour operators, international consumers and international tour
operators.
The team goes well beyond trade show participation: it embarks on
sales missions and partnerships with eight national tour operator associations
as well as with AAA offices in 11 states. Direct mail, collateral
and familiarization tours are among the team’s tactics to keep Georgia
on the mind of those who influence travel decisions.
• 7,959 people signed up to receive the tourism newsletter during 13
consumer shows.
• Sales staff met with 143 tour operators during five international
travel shows, and 234 tour operators during eight domestic group
tour shows.
Co-op
Technology
In FY09, more than $1
million in co-op marketing
and technology grants
was awarded to tourism
entities around Georgia.
This funding impacted
109 communities and had
a projected economic impact
of over $246,532,187.
Aviation Museum
and Discovery Center
5 / $8M Marietta
Falling Waters Lodge 7 / $10M Gilmer Co.
Shannon Vineyards 10 / $20M Statesboro
Information specialists at Georgia’s 11 Visitor Information Centers are on
the front lines of the tourism industry in the state, encouraging travelers
to stay and see Georgia. In FY09, VIC successes included:
• Generating $2,084,325 for state revenues through the hotel reservation
program.
• Distributing 525,120 Georgia travel guides.
• Winning an international tourism industry award for the third consecutive
year. This year’s Mercury Award, presented by the National
Council of State Tourism Directors, recognized Georgia’s VICs for
creating an innovative program to partner with tourism entities in
promoting their products at the VICs.
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TOURISM foundation
The Georgia Tourism Foundation encourages new public-private partnerships
that merge and strengthen Georgia’s tourism marketing efforts,
in order to attract more visitors and increase the industry’s economic
impact throughout the state. This non-profit, public-private organization
brings together leaders of the state’s premier tourism destinations
to consolidate marketing efforts, pool resources and more effectively
promote to vacationers Georgia’s natural beauty, cultural heritage and
rich attractions.
Foundation programs included:
2009 Techno-Tourism Conference
The third annual Techno-Tourism Conference took place in April in Marietta.
The conference, whose theme was “Social Media Marketing…Affordable,
Effective & Essential,” offered attendees strategies and tactics
to attract visitors through social media.
Georgia Applause initiative
Georgia Applause brings together the managers and directors of more
than 150 theaters around the state to collaborate and share resources.
The Tourism Foundation has formed a public-private relationship with
the Fox Theatre Institute to provide preservation and operations expertise
supporting economic revitalization in local communities.
Agritourism initiative
The Georgia Tourism Foundation launched the Georgia
Made Georgia Grown Products Web site to nurture,
support and market the growers, producers, artists
and craftspeople in the state, from Babyland General
Hospital in Cleveland to Lane Southern Orchards in Fort
Valley. The site, www.gamadegagrownproducts.org,
was a finalist in the U.S. Department of Commerce’s Excellence in Economic
Development awards. In addition to exhibiting at Ag Awareness Day at the
Capitol, the Tourism Foundation and GDEcD conducted a public relations
campaign in spring 2009 to educate visitors to the state’s 11 visitor information
centers about agriculture and agritourism in Georgia.
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film, music & digital
entertainment
Fiscal year 2009 was a record-breaking year for
entertainment productions in Georgia, thanks
to the impact of the Georgia Entertainment
Industry Investment Act passed in 2008. Robert
Duvall, Sandra Bullock and Miley Cyrus were
just some of the Hollywood elite who brought
star power to Georgia during the year.
The Investment Act is also encouraging the
production of original entertainment content
within the state, putting Georgians to work
and creating maximum value for the state. An
estimated 27,000 people work in over 1,600
entertainment industry-related companies in
Georgia. This industry is growing exponentially,
with a dozen new supply chain companies
locating in the state and existing entertainment
industry companies expanding their services
and hiring additional staff.
$590
million total investment
$1.1
billion economic impact
• 14 Hollywood studio feature films
• 12 independent feature films
• 93 television projects
• 250 TV commercials
• 36 music videos
• 41 video game productions
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Film & Television
FY09 Film and TV production activity
FY09 productions represented a 400% increase over the previous fiscal
year, bringing in more than $590 million in investment, representing an
economic impact to the state of over $1 billion. More than 100 significant
feature films and television series, movies, specials, pilots and episodes
were produced in Georgia, ranking the state number one in the Southeast
and among the top five states in the nation for film and TV productions.
Every major Hollywood studio and numerous television networks
brought projects to the state, allowing communities all over Georgia to
reap the benefits of their economic impact.
Movies filmed in Georgia during FY09 include:
• Five Killers, starring Ashton Kutcher, Katherine Heigl and Tom Selleck.
• The Blind Side, featuring Sandra Bullock, Kathy Bates and Tim McGraw.
• The Joneses, starring Demi Moore and David Duchovny.
• Get Low, with Robert Duvall, Sissy Spacek and Bill Murray.
• Zombieland, with Woody Harrelson.
59
Rome
75
Blue Ridge
Ellijay
575
Acworth Alpharetta
Kennesaw
Norcross
Dallas
Athens
Vinings
Powder Springs
Between
Austell Decatur
Douglasville
Monroe
Avondale Estates
Atlanta
20 Villa Rica
Stone Mountain
Lithonia Conyers Rutledge
Carrollton
Covington
Madison
20
Newborn
Peachtree City
Newnan Senoia
Griffin
75
Forsyth
Toccoa
85
Macon
Bowersville
Crawfordville
Augusta
Mayfield
A movie starring Miley Cyrus, entitled The Last Song, began filming in
June 2009 on Tybee Island and around Savannah.
“Shooting in Georgia is like coming home.
Great crews, great locations and easy livin’.”
–- Tim Bourne, film producer, Alcon Entertainment
(The Blind Side, The Lottery Ticket)
Columbus
Fort Valley
Montezuma
Perry
Unadilla
Vienna
Cordele
Warner Robins
Hawkinsville
Dublin
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95
Savannah
Albany
Blakely
Colquitt
75
Scenes from The Blind Side
95
Valdosta
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music
Georgia’s
music
industry
• 9,500 workers were
employed in over 1,000
companies.
• Payroll grew by $5 million.
• State tax revenue grew
by $5 million.
Thirty-six music videos were produced in Georgia in FY09, and 37
Georgia music artists were nominated for 2008 GRAMMY awards,
with five winners bringing home the coveted trophies.
Many Georgia music artists are also transitioning into producing or
starring in feature films, and appearing in dramatic television series
or reality shows. Movie soundtrack composition and film/TV music
scoring qualify for Georgia’s incentives if the projects were produced
in the state. Georgia’s music industry is currently ranked number four
in the nation.
Investment Economic Impact
digital entertainment
Qualified Entertainment
Project Spend
$465 M
$590 M
$1.1 B
Georgia’s 30 percent tax credit, the biggest in the nation for video game
development, is stimulating increased interest in Georgia, and has motivated
several companies to locate here. Among the projects GDEcD has
assisted are:
• CCP, a video game company based in Iceland, which expanded its
Stone Mountain operations and announced plans to hire 200 additional
workers beginning in 2010.
• Electronic Arts, the nation’s largest video game publisher, which
operates an R&D lab in Savannah and has recently launched
EA-Atlanta to provide a back-end digital distribution portal for
the parent company.
•French video game company Metaboli , which purchased Turner
Studios’ GameTap franchise and set up shop in Atlanta.
$136 M
$242 M
$261 M
2007 2008 2009
Currently, more than 60 video game businesses operate in the state.
Georgia’s video game workforce is estimated at over 1,600 workers, and
15 of the state’s colleges and universities offer video game development
courses or curriculums, including some graduate degree programs.
Investment
Economic Impact
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GDEcD board of directors
Tom Ratcliffe (Secretary)
First Congressional District
Hinesville
Charles Tarbutton (Vice Chairman)
Twelfth Congressional District
Sandersville
Georgia Allies
The Georgia Allies supports the work of the Georgia Department
of Economic Development by helping foster the
professional relationships important to attracting, retaining,
and growing world-class capital investment and quality
jobs across Georgia. This public-private partnership, dedicated to
Georgia’s success, allows the state to pool resources and maximize its
marketing efforts and outreach.
The group matches attributes of Georgia to the needs of specific
businesses through the use of resources like www.GeorgiaFacts.net,
Georgia events like the Red Carpet Tour and the Georgia Quail Hunt,
and other global marketing collaterals and events. In FY09, 221 existing
Georgia businesses decided to stay in the state and expand, and
106 companies relocated or began new operations in the state. The
work of the Georgia Allies contributed significantly to these numbers,
and laid the foundation for future locations and expansions in Georgia.
Rick Singletary
Second Congressional District,
Thomasville
Harriette Watkins
Third Congressional District
Fairburn
Paul Wood
Fourth Congressional District
Tucker
J. Thomas Wiley
Fifth Congressional District
Savannah
Phil Jacobs
Sixth Congressional District
Atlanta
Price Harding, III
Seventh Congressional District
Roswell
Ben Hinson
Eighth Congressional District
Macon
Phil Wilheit
Ninth Congressional District
Gainesville
Tom Griffith
Tenth Congressional District
Bogart
Thirteenth Congressional District
Vacant
Richard Anthony
Member-at-Large
Columbus
H. “Monty” Osteen
Member-at-Large
Augusta
Brian Foster
Member-at-Large
Savannah
Mike Garrett (Chairman)
Member-at-Large
Atlanta
M.S. “Tee” Tolleson
Member-at-Large
Elko
Sam Way
Member-at-Large
Hawkinsville
Gardiner Garrard
Member-at-Large
Atlanta
Jim Hammock
Member-at-Large
Dublin
Larry Hutcheson
Eleventh Congressional District
Temple
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Georgia Department of Economic Development
75 Fifth Street, N.W., Suite 1200
Atlanta, GA 30308
For more information, please visit
georgia.org or call 404.962.4000