Commerce - September 2014 by Knoxville Chamber

INSIDE: Office Depot Chamber Program pg. 73 + Monthly Economic Indicators pg. 74

MEMBERSHIP MATTERS RIBBON CUTTING

TOP ACHIEVERS 1ST PLACE 2ND PLACE

Walmart associates and executives, local dignitaries, Knox County Mayor Tim Burchett, Knoxville City Mayor Madeline Rogero, and Knoxville Chamber President & CEO Mike Edwards prepare to cut the ribbon to welcome the new Walmart to University Commons in Knoxville.

MARC ARCHER

TOM O’BRIAN

3RD PLACE

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.

LANEY SHORTER

ARCHER DESIGN & MARKETING

CORE BENEFITS & INVESTMENTS

VISIT KNOXVILLE

NEW MEMBERS / NEW PREMIER PARTNERS GOLD PREMIER PARTNERS All Occasions Party Rentals (865) 588-1131 www.alloccasionspartyrentals.com Event Planning, Catering, & Venues: Rentals

SILVER PREMIER PARTNERS Premiere Building Maintenance Corporation (865) 522-7731 www.premierebuilding.com Building & Grounds Maintenance: Cleaning Services & Supplies

Tennessee Valley Asset Management Partners (TVAMP) (865) 577-1922 www.TVAMP.net Insurance: Life, Financial Services: Investments, Financial Services: Planning, Financial Services: Stocks & Bonds Walmart - University Commons (865) 824-4453 www.walmart.com Shopping: Discount Stores workspace interiors, inc. (865) 223-5404 www.workspaceinteriors.com Office Equipment, Supplies, & Services

BRONZE PREMIER PARTNERS Renaissance Wellness Center LLC (865) 240-4802 www.renaissancewellnessctr.com Personal Services: Aestheticians & Medispas

THE KNOXVILLE CHAMBER’S MONTHLY NEWSLETTER

EDITOR | WRITER JENNY WOODBERY DESIGN LADDY FIELDS

1st Choice Franchise Concepts (865) 320-0083 www.firstchoiceconcepts.com Business & Professional Services: Business Advisors & Consultants

Brown Bag Catering - Downtown (865) 228-3283 www.brownbagnow.com Restaurants

GOGLAMOROUS - The Blowdry Bar (865) 671-4663 www.goglamorous.com Personal Services: Salons & Spas

Motive Power (530) 848-6119 www.motive-power.com Financial Services: Expense Management Consultants

Casa de Sara (865) 690-3323 www.casadesara.org Associations & Organizations

Hilton Garden Inn Gatlinburg Downtown (865) 436-0048 www.gatlinburg.hgi.com Hotels & Lodging

Operational Solutions (865) 405-0141 Business & Professional Services

DocuBrain (865) 980-7045 www.docubrain.com Computer & IT Services: Software

Janify (865) 309-4999 www.janify.com/knoxville/ Building & Grounds Maintenance: Cleaning Services & Supplies

Petro’s Chili and Chips Catering (865) 805-4688 www.petroscaters.com Event Planning, Catering, & Venues: Catering

Knoxville Dental Care (865) 573-4593 www.drbradwhite.com Healthcare Providers & Services: Dentists

S & S Family Ent., dba Strike & Spare Western (865) 588-1312 www.strikeandsparebowling.com Sports & Recreation

Embroidery Boutique by Designs For You (865) 392-1024 www.designsforyouinc.com Business & Professional Services: Promotional Products European Body Works (865) 693-0485 www.europeanbodyworks.com Personal Services: Salons & Spas Five Bar (205) 535-7745 www.five-bar.com Restaurants

LAZ Parking (865) 525-4449 www.lazparking.com Transportation: Parking Misty’s Pet Depot (865) 523-9763 www.mistyspetdepot.com Pet Care & Supplies

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

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The Law Offices of Ogle, Elrod & Baril, PLLC (865) 566-0800 www.socialsecuritylawcenter.info Legal Services: Attorneys

ituated near Oak Ridge National Laboratory and the University of Tennessee, Innovation Valley has become an epicenter for technology and research. It’s this marriage of constantly evolving technology and cutting-edge research that makes the region an ideal place to create and design digital products. From television production and creative digital marketing tools to innovative apps and multimedia platforms, the Knoxville area has a vibrant community of digital media companies. It also offers a great environment for media-focused entrepreneurs and students to grow and thrive. Recognizing the increasing importance of digital media on the region’s economy, Innovation Valley has included creative media services 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 creative media services cluster focuses on video production, programming for broadcast and cable networks, digital media production, pre-productions, post-production, editing, imaging, graphics, animation, distribution, and replication.

New York and Los Angeles. “One reason media companies choose to locate in Knoxville is because of the area’s technological assets, central location, and the low cost of living,” said Doug Lawyer, vice president of economic development for the Knoxville Chamber. “Companies won’t see all of those benefits in Los Angeles or New York.” Scripps Networks Interactive, RIVR Media, and Jewelry Television are a few of the prominent television production companies that call Knoxville home. Scripps Networks — which includes HGTV, Food Network, DIY Network, Cooking Channel, Travel Channel, and Great American Country — and Jewelry Television together garner 180 million viewers worldwide. Production companies like RIVR Media and Jupiter Entertainment produce programming for national networks like A&E, ESPN, and Discovery Channel. But the region’s creative arena extends beyond television. The Knoxville area also provides a perfect setting for digital marketing and other creative technology services. Pyxl is one of the area’s premier digital marketing firms. The company specializes in business market strategy, creative brand development, technology, digital

DIGITAL INNOVATION While Knoxville might not be the first place one thinks of as a video production hub, the city has been ranked the third largest market in the nation behind

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See “Target” on pg. 70

“Target” continued from pg. 69 marketing communication, and inbound marketing. “Pyxl is unique because we start with immersing ourselves in our clients’ business models and understanding what drives their growth,” CEO Brian Winter said. “Many digital marketing companies are focused on delivering a single project or creating a particular marketing asset. However, we always make sure we know how our clients’ investment in our services will have an impact on clients’ top-line growth. That puts us in a unique place where we are fusing technology, creativity and business acumen together to deliver digital marketing results — the core of our company’s mission statement.” Winter said the company opened its first office in Knoxville because of the resources the area has to offer. “Knoxville has always been an intersection of innovation and technology with three main pillars crucial for digital marketing: technology, design, and research,” Winter said. “Within Knoxville, technology has been celebrated and supported by organizations like Tech 20/20 and implemented by places like Oak Ridge National Laboratory. We’ve also seen innovative design and production brought to the area by Scripps and UT’s research facilities.” He added, “There are few places where you have the innovation we have here in Knoxville combined with such a great community and a wonderful place to live and work.” While still based in Knoxville, Pyxl now has additional offices in Boulder, Co., and Phoenix, and works on projects for companies like Pilot Flying J and Provision Healthcare. Gigmark Interactive Media is another innovative local company that came onto the scene in 2007 with a unique piece of technology — the Interactive Flash Drive. The brainchild of Parker Frost, the product provides customers with an interactive sales and marketing tool. Unlike an ordinary USB drive that has to be manually updated by the user, Gigmark’s IFD automatically updates itself and provides important insights into the behavior of the user. GM, Ford, Sony, the Marines, and Ally Bank are just a few of the companies that have used the IFD technology. Following the success of the IFD, Gigmark has created a new product, Yakity App. This desktop application is a more affordable, timely option for businesses — specifically non-profit — that want to use Gigmark’s analytic technology. “While Gigmark has been successful, we were passing up business every day from customers who did not have the budget or had time constraints of when they needed the product,” Frost said. “So we took all our experience and developed a more standardized approach that could be made in a matter of hours and days, instead of months and months. It also created a software as a service business for us.” Though YakityApp is still relatively new, Frost said they have about 45 customers currently using the platform. “Locally, we have customers like MVP, Helen Ross McNabb, Back Porch Vistas (BPV Financial), and Aqua-Chem.”

CREATING THE FUTURE Innovation Valley is not only a great setting for established creative service businesses, but also a great place for nurturing the next generation of creative minds. Pellissippi State Community College’s Bagwell Center for Media and Arts is dedicated to preparing students for multimedia careers. The 29,370-square-foot building houses Pellissippi State’s media technologies program and art program. The media technologies program offers courses in four concentrations: communication graphics technology, photography, video production technology, and Web technology. Media technologies students graduate with an Associate of Applied Science degree. “A unique feature of this program is its cross-disciplinary environment that reflects what is occurring in industry,” said Ella Ruggles, program coordinator for video production technology. “The art program offers a comprehensive range of studio courses

in painting, drawing, design, printmaking, ceramics, and sculpture that are designed to transfer to four-year institutions.” Ruggles said the media technologies courses offer hands-on instruction using production equipment, computers, software applications, and facilities that meet or beat industry standards. The Bagwell Center’s facilities include a large high-definition video production studio with a green screen wall, a professionally equipped photography studio that uses the latest in digital imaging and lighting equipment, numerous video editing suites, state-of-the-art computer labs for each of the concentrations, art studios, a sound recording studio, and an art gallery. For creative entrepreneurs, the Knoxville Entrepreneur Center recently introduced Students work on graphic design projects at Pellissippi State MediaWorks, the Community College’s Bagwell Center for Media and Arts. center’s inaugural digital media accelerator. 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. Nine startups were chosen for the program. Jonathan Sexton, KEC’s entrepreneur in residence, said MediaWorks aims to showcase a thriving digital media startup community in East Tennessee. The program, he said, represents a key element in KEC’s ongoing drive to highlight the region’s leadership in technology, digital media, and media content creation. “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.” On Aug. 5, the MediaWorks entrepreneurs were put to the test at Demo Day. Entrepreneur Haseeb Qureshi gives the pitch for his The event was the culmination startup, AudioHand at the Knoxville Entrepreneur of the 12-week program, and Center’s MediaWorks: Demo Day. gave each startup the chance to pitch its idea to a sold-out crowd, which included potential investors. “The entrepreneurs we’re really blown away by the support of, not only the business community and investors, but also the general population,” Sexton said. “The fact that so many people showed up from around the region to check out all the great ideas coming out of Knoxville, speaks to the interest and excitement in this new creative class. We have world-class talent and ideas in Knoxville, and Demo Day showed that our light is shining brighter than ever.”

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MENTOR/PROTÉGÉ PROFILE PROTÉGÉ

MENTOR Name of Firm: Spanish Language Solutions Name of Owner: Coral Getino Website: www.spanishls.com (under construction) Industry Type: Business Services (Translation/ Interpretation)

What is the importance of having a mentor to you? Having someone to brainstorm with, to learn from, and to guide me. Someone to share openly what I am doing (hurdles or success stories), and who can offer honest advice. How has this program added to or changed your value of Chamber membership? I think this is probably the best money I have spent on business management. It has taught me there are common challenges and common solutions to many problems small business owners face. It also has provided me an opportunity to network with my peers and mentors. What do you want to learn from your mentor? How to sell my services. How to successfully compete with other businesses in the market. How to grow from a “one person” operation to a business with several employees.

Name of Firm: DIREC Consulting Name of Owner: Margaret O’Donnell Website: www.direcconsult.com Industry Type: Business Consulting Who has been one of your important mentors and why? A manager I worked for at Levi Strauss & Co. taught me the importance of being a risk taker and following my intuition. Often doing what you know is right ethically also can result in a good business decision. What were the key lessons learned? When you have a dream, follow it, and never give up. How has being a mentor helped you or your firm? I think I have learned more from Coral than she has learned from me. She is a very successful business owner. I have benefited from working with a professional from a different country; her perspective on the world and the U.S. has helped me expand my dreams for my own business. What do you want your protégé to learn from you? Coral is good at promoting her business already. I wanted her to learn not to be afraid of rejection in selling her concepts. She has become more assertive and much more persistent. I believe that is paying off for her already.

Career Magnet Academy Opens Doors to Inaugural Freshman Class On Aug. 11, the Career Magnet Academy welcomed its inaugural class of students. As Knox County’s newest magnet school, the academy aims to ready students for the workforce. Located on Pellissippi State Community College’s Strawberry Plains campus, the new school has 127 freshmen for the 2014-15 school year. CMA Principal John Faulconer said they have at least one student from every middle school in Knox County transfer to the academy. The school focuses its instruction on four main “cluster” areas – advanced manufacturing, sustainable living, teacher preparation, and homeland security. When defining the clusters, the school system worked closely with the Knoxville Chamber to identify areas of local industry that have a high demand for skilled workers. “This type of high school will change the face and perception of career and

technical education, decrease the skills gap, and impact economic growth and development,” Faulconer said. Faulconer said the students’ freshman year will be spent exploring each pathway. Near the end of that year, each student will choose which “cluster” area they want to focus their instruction on for the next three years. Students will also have the opportunity to earn dual credit/enrollment for the courses they take at the CTE school. At the ninth- and 10th-grade level, students will be considered for dual credit. Once at the 11th- and 12th-grade level, students will be able to take advantage of dual enrollment. Depending on the cluster the student has chosen, he or she could potentially earn up to 33 hours in college credit. “(Students have) the opportunity to graduate from high school with a regular Tennessee high school diploma, as well as multiple industry certifications and an associate’s degree from Pellissippi State,” Faulconer said.

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Chamber Readies For Tailgate-Themed Schmoozapalooza Networking Expo The Knoxville Chamber is gearing up for Schmoozapalooza XI on Sept. 18 at the Knoxville Civic Coliseum. More than 500 people are expected to attend the tailgatethemed networking extravaganza. With more than 70 businesses exhibiting, the bash gives attendees a chance to make new connections in a fun, casual setting. “Schmoozapalooza provides Knoxville-area businesses with an affordable venue to market their products and services to a large mass of the business community,” said Mark Field, the Chamber’s senior vice president. “There is always a great buzz and energy at the event. We try to keep it light and lively so attendees can have fun while doing business.” The event will be held from 4 – 7 p.m. and tickets are $10. Chamber members can save $5 by preregistering on www.knoxvillechamber.com prior to Monday, Sept. 15. This fall’s event is co-sponsored by Comcast Business Class and Cellular Sales.

Comcast Business offers reliable services for businesses of any size, providing an integrated and unparalleled product experience for data, voice, and video along with cloud services and signature support opportunities. “Our network enables a wide range of speeds to meet the unique needs of today’s fast moving businesses and provides the scalability for businesses to grow,” said Sandra Kent, regional marketing manager of Comcast Business Class. “Many of the upgrades that businesses need as they grow can be made with just a phone call.” As one of the nation’s leading providers of information, communications and entertainment products and services, Kent said Comcast Business customers receive 24/7 priority support from a dedicated local team of account executives and technical experts prepared to rapidly resolve any issues. To learn more about what Comcast Business can do for your business, visit www.business.comcast. com.

Cellular Sales was founded in Knoxville more than 20 years ago. Since then, it has become on of the fastest growing privately owned retailers in the country. As Verizon Wireless’ largest premium wireless retailer nationwide, Cellular Sales has more than 540 retail stores in 28 states. In addition to its headquarters and customer care call center being located in the Knoxville, Cellular Sales also has more than 25 retail locations in the area. “We are in the process of expanding our retail system throughout the country,” CEO Dane Scism said. “We owe our success to a simple and unrelenting focus on total customer satisfaction. This dedication to our customers has become our corporate mission and is the backbone of our success.” For more information on Cellular Sales or to find a retail location, visit www.cellularsales.com.

Sen. Corker Visits Chamber, Meets with Local Manufacturers

U.S. Sen. Bob Corker visited the Knoxville Chamber on Aug. 21, met with local manufacturers, and presented two U.S. Department of Commerce Export Achievement Awards to local companies. Corker spoke to the intimate group of area manufacturers about economic development and revitalizing the nation. He also took time to answer questions from the audience. “There’s nothing I enjoy more, nor think means more, than ensuring that heads of household have good paying jobs,” Corker said. “As I look at our state, whether we’ve had Republicans or Democrats as governor, somehow we’ve kept a good, steady vision of economic development.” Corker said while Tennessee has had a defined vision, the nation has not. He said he hopes to see some sort of vision come out of Washington in the future, and that it’s focused on economic development and entrepreneurism. Several attendees had comments and questions for the senator, ranging from export/import policies to the status of the U.S. Export-Import Bank. Corker extended the time he had originally allotted for the event, in order to respond to everyone’s questions. The event wrapped up with Corker and Rob Leach, director of the Knoxville Export Assistance Center for the U.S. Department of Commerce, recognizing Nanomechanics of Oak Ridge and GEFCO of Loudon for export sales achievements. Nanomechanics manufactures high tech, scientific tools that characterize mechanical properties on surfaces or structures less than a nanometer, or one billionth of a meter. GEFCO, a new acquisition by Astec Industries, operates in Loudon, Tenn. and Enid, Okla. The company designs and manufactures portable drilling rigs, pump units, and related tooling products for water wells and the oil & gas market. The companies’ exports have enabled the companies to increase business while sustaining or adding new jobs locally.

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Office Depot Chamber Advantage Program Offers Great Savings for Members A Knoxville Chamber membership has a lot of benefits, but one benefit many members are raving about is the Office Depot Chamber Advantage program, which provides members with discounts on most office supplies. This is the fourth year the Chamber has been partnered with Office Depot. “It’s great for our member businesses because it gives them discounts on things that they’re going to be buying anyway for their business,” said Melissa Spangler, vice president of member services for the Knoxville Chamber. Office Depot offers several ways Chamber members can save. One option is the Office Depot Business Account, which allows member businesses to order discount office supplies via phone, fax, or Web and provides next-day delivery. Business Account holders can also take advantage of monthly specials and promotions. As an added bonus, the program makes it easy to track expense by providing members with monthly reports on supply expenses. Smaller businesses can take advantage of the program through the Office Depot Store

Card. This offers discounts for purchases made in retail stores. Zac Smith, general manager of retailer SmartWay, said this aspect of the program has been invaluable to his business. “With opening a brand new business in West Knoxville, I’ve had to buy all office supplies from paper clips to whiteboards,” Smith said. “Because of the Chamber’s Office Depot program I have been able to go the store in person and pick out exactly what I needed, without having to guess if it would be right online and literally saved hundreds of dollars in a single trip. Not to mention the outstanding prices on photocopies with same or next day completion.” Last year, Office Depot rolled out the Employee Purchase Program, which allows employers to pass along savings to their employees. With the Employee Purchase Program card, employees can save 10 percent on their purchases in store or on www.officedepot.com The upside of the program is that there are benefits for everyone involved. Customers are given more buying power, the Chamber is able to offer the card as a benefit, and Office Depot is able to build a base of loyal customers. “It’s a win-win-win situation,” Spangler said. To learn more about the program, visit www.knoxvillechamber.com/office-depotprogram. If you’re a member who doesn’t have their discount card yet, contact Katie Wells at kwells@knoxvillechamber.com. To sign up for a business account, contact Kathy Natour, Office Depot’s territory development manager, at 865-368-9705. Chamber intern Abby Ferguson contributed this story.

RIBBON CUTTING

Fulin’s Asian Cuisine celebrated the grand opening of its new Knoxville location on Town Center Boulevard in July. David Guan, owner, is pictured center cutting the ribbon and is joined by Fulin’s associates, family, friends, and Knoxville Chamber Ambassadors and representatives.

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MONTHLY ECONOMIC INDICATORS

(July 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 July ’13July ‘14

July 2014

June 2014

July 2013

% Change June ’14July ‘14

233,310 366,010 3,069,400 157,573,000

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

238,110 374,730 3,153,600 157,196,000

0.1 0.1 -0.1 0.4

-2.0 -2.3 -2.7 0.2

340,100 2,781,600

340,200 2,791,600

328,800 2,722,200

0.0 -0.4

3.4 2.2

16,760 26,830 262,350

15,970 25,470 249,260

18,460 29,900 300,040

4.9 5.3 5.3

-9.2 -10.3 -12.6

6.6 6.7 7.8 6.5

6.3 6.4 7.4 6.3

7.0 7.2 8.5 7.7

0.3 0.3 0.4 0.2

-0.4 -0.5 -0.7 -1.2

Non-Ag Employment Knoxville MSA Tennessee

Residential Closings Residential Inventory Median Residential Price

July 2014 1,387 11,606 $155,000

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 July ’12July ‘14

July ’13-‘14

June ’13-‘14

July ’12-‘13

1.9 2.0

2.1 2.1

2.2 2.0

-0.2 -0.1

-0.3 0.0

% Change July ’13July ‘14

Knoxville (City)

Total Single-Family Multi-Family

June 2014* 265 17 248

June 2013 11 11 0

% Change June ’13June ‘14 230.9 54.5 100.0

Knox Co.

Total Single-Family Multi-Family

363 115 248

99 99 0

266.7 16.2 100.0

Knoxville MSA

Total Single-Family Multi-Family

387 139 248

126 126 0

207.1 10.3 100.0

Tennessee

Total Single-Family Multi-Family

1,879 1,448 431

2,052 1,272 780

-8.4 13.8 -44.7

Knox Co. Knoxville MSA Tennessee

July 2014

June 2014

July 2013

% Change June ’14July ‘14

48,964,535 69,193,625 654,991,640

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

47,346,542 67,115,826 634,841,867

0.1 -0.1 4.0

3.4 3.1 3.2

13,561,747 19,535,969

13,560,783 19,530,542

13,169,293 18,797,569

0.0 0.0

3.0 3.9

% Change July ’13July ‘14 4.2 6.2 2.7 1.3 4.1 6.5 3.1 -0.7 1.6 7.2 4.0 6.5 6.6 -2.6

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

1,289 15,656 $156,300

RESIDENTIAL BUILDING PERMITS

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

July 2013

% Change July ’13July ‘14 7.6 -25.9 -0.8

Source: Knoxville Area Association of Realtors

Available Labor Knox Co. Knoxville MSA Tennessee

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

% Change June ’14July ‘14 6.4 0.4 -1.3

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

July 2014

June 2014

446,251 30,266 19,935 8,290 57,517 48,132 8,500 48,883 52,801 24,863 10,353 93,236 36,814

438,735 31,596 19,238 8,003 55,063 47,421 7,966 47,737 53,935 24,280 10,200 90,052 36,581

428,090 28,512 19,417 8,182 55,254 45,186 8,242 49,244 51,958 23,195 9,951 87,576 34,537

% Change June ’14July ‘14 1.7 -4.2 3.6 3.6 4.5 1.5 6.7 2.4 -2.1 2.4 1.5 3.5 0.6

6,661

6,663

6,836

0.0

July 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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Innovation Valley Releases Second Quarter Stakeholder Report Innovation Valley had several economic development achievements during the second quarter of 2014. The region welcomed new recruits Local Motors and Wetekam Monofilaments USA, and also held a grand opening for Footwear Industries Tennessee (FIT USA). The quarter started strong with Local Motors announcing in April it would be locating in Innovation Valley and hiring 100 employees. On May 28, the company opened its first retail space in downtown Knoxville. Local Motors is in its final stages of building the world’s first 3-D printed vehicle with the help of Oak Ridge National Lab at its Manufacturing Demonstration Facility. That exciting announcement was followed up by Wetekam Monofilaments USA purchasing a 93,000-square-foot facility in Jefferson City. The German-based company plans to create 32 new jobs and have a $3.8 million investment in Innovation Valley. The company will manufacture industrial monofilament yarns through a high tech extrusion process. “As you can see, Innovation Valley has had many achievements throughout the past quarter,” said Thom Mason, director of Oak Ridge National Lab and chairman of Innovation Valley’s board of directors. “This is an exciting time with opportunities appearing as the economy builds momentum throughout the region and we are positioned for more.” In addition to the region’s two new recruits, FIT USA held its grand opening in May, nine months after announcing plans to locate in Innovation Valley. The company hired 109 individuals and invested $5.4 million to begin manufacturing a line of men’s work and hunting boots. For more information about Innovation Valley and to view the latest stakeholder update in its entirety, visit www.knoxvilleoakridge.com. Kayla Witt, marketing coordinator for the Knoxville Chamber, contributed this story.

GRAND OPENING FIT USA Celebrates Opening of New Facility in Jefferson City In late May, nine months after announcing plans to locate in Innovation Valley, FIT USA hosted a grand opening for its new 40,000 square foot facility. The China-based company hired 109 individuals and invested $5.4 million to begin manufacturing a line of men’s work and hunting boots.

PA R T N E R P R O F I L E

The Roane Alliance Joining economic development forces in 2008, The Roane Alliance is one of eight partner agencies in Innovation Valley, the regional economic development initiative managed by the Knoxville Chamber. Located west of Knoxville, The Roane Alliance represents Roane County and encompasses the communities of Harriman, Kingston, Oak Ridge, Oliver Springs, and Rockwood. “Having a partnership with Innovation Valley is crucial to our community because it pools regional resources and information that makes our business case much stronger than it would be if we isolated our county and worked alone,” said Wade Creswell, president and CEO of the Roane Alliance. “A truly regional approach to economic development is the only way we can envision and obtain successful development of our local economy.” Roane County is home to two key Department of Energy resources: Oak Ridge National Laboratory and the East Tennessee Technology Park. These assets are considered to be vital to our region’s economy, and can be matched by very few places in the world. “I would consider Roane County’s most unique asset to be ORNL,” Creswell said. “It is the foremost materials and energy science laboratory in the world, and attracts the most talented scientists globally. This provides unparalleled resources, experiences, and expertise to the surrounding business community.” Roane County is also known for Watts Bar Lake. One of seven lakes in Innovation Valley, the 33,000-acre reservoir is a key segment of the Tennessee River and provides crucial infrastructure assets to the region such as transportation, electricity generation, and flood control. Watts Bar also adds to Innovation Valley’s high quality of life as it boasts 771 miles of shoreline and only fluctuates five feet on average between seasons, offering recreational opportunities for residents and visitors alike. In addition to its great quality of life and strong technological assets, Roane County has three of the state’s Select Tennessee Certified Sites. The Select Tennessee program was launched in June 2012 with the goal of helping Tennessee communities prepare available sites for investment and expansion. The program sets a consistent and rigorous standard upon which companies can rely in making critical location decisions. To learn more about Innovation Valley and its regional partners, visit www. knoxvilleoakridge.com Kayla Witt, marketing coordinator for the Knoxville Chamber, contributed this story.

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Knoxville Stands Out at ACCE Annual Convention The Knoxville Chamber was well represented at the annual American Chamber of Commerce Executives Convention in August. The convention is held annually in different cities across the nation. This year, the convention was hosted by Cincinnati, Ohio. The primary goal of the convention is to provide networking opportunities for chambers and executives, and to encourage the spread of ideas and shared strateMark Field, the Chamber’s senior vice president of gies among chambers of membership, receives his CCE designation varying sizes. “There’s a saying here, ‘When you’ve seen one chamber, you’ve seen one chamber,’” said Melissa Spangler, vice president of member services. “Each chamber takes pride in its individuality, and ACCE provides opportunities to share best practices and successful programs without forgetting the uniqueness of each chamber’s situation.” Several Knoxville Chamber employees attended the 2014 convention, with three receiving special recognition and two others serving in leadership roles. Ashleigh Adkins, the Chamber’s membership development manager, received her Platinum Sales Achievement Award, which is awarded for career membership sales of more than $750,000. Chamber Account Executive Cori Johnson received a Bronze Sales Achievement Award, which is given for $175,000 in career sales. These awards not only recognize sales numbers, but both women’s success in connecting the local business community to the Chamber. Chamber CEO and President Mike Edwards served as moderator of a panel discussion on higher education attainment, and Doug Minter, the Chamber’s business development manager, taught a class outlining the highly successful Propel mentor/protégé program started in 2009. Minter was also promoted to chairman of the ACCE Diversity and Inclusion Council from his previous position as vice chairman. Additionally, Mark Field, senior vice president of membership, received his Certified Chamber Executive designation. The CCE program, described as the Ph.D. of the chamber of commerce industry, is the highest certification a chamber executive can earn from ACCE, and is used to test and affirm an applicant’s familiarity with the central chamber management concepts such as management; planning and development; membership and communications; and operations. Field received the CCE designation after an extensive and rigorous nine-month application process involving — among other things — personal references and proof of individual preparedness, as well as chamber financial statements, a strategic plan, annual reports and budgets, and member retention rates. This achievement places Field in an elite group of fewer than 500 chamber executives nationwide who have earned the CCE designation over the last 38 years since the program’s inception. Chamber intern Abby Ferguson contributed this story.

PREMIER PARTNER PROFILE

Provision Center for Proton Therapy Provision Center for Proton Therapy is Tennessee’s first and only proton therapy cancer treatment facility. One of only 14 in the nation, the proton center is situated at the heart of Dowell Springs, a thriving 120-acre comprehensive outpatient medical campus located on Middlebrook Pike in Knoxville. Proton therapy, the most advanced form of radiotherapy in the world, uses a single beam of high-energy protons to treat various forms of cancer, such as prostate, pediatric, sarcoma, brain, lung, and breast cancers. Different from conventional radiation therapy — in which beam energy dissipates as it passes through the body — proton beams can be fine-tuned with millimeters of accuracy to deliver maximum energy within the controlled range of the cancerous tumor. The treatment is administered on a fractionated schedule. Patients receive treatments over the course of four to eight weeks depending on the size and complexity of the tumor. To date, Provision has treated 118 patients from 12 states, Mexico and Brazil, and nine different types of cancers. “In addition to the therapy itself, Provision has created a ‘Culture of Care’ that extends beyond service and establishes a new standard of excellence for patient care,” said Nancy Howard, vice president of Patient Services and vice president of the Provision CARES Foundation. In 2010, Provision announced its $119 million investment in the community and its plans to establish a treatment center in Knoxville. Howard said East Tennessee hospitality will be a distinguishing feature of the Provision Center for Proton Therapy, aligned with a team of clinical experts in the global proton therapy industry. “Knoxville is a premier destination for proton therapy treatment, where local or out-of-town patients and their families can enjoy the natural and cultural resources of East Tennessee while visiting to receive treatment,” Howard said. Olympic gold medalist Scott Hamilton is a board member and supporter of Provision Center for Proton Therapy. He has expanded his cancer-related philanthropic efforts to the area bringing “Scott Hamilton and Friends on Ice” to Knoxville on Dec. 6 at the Knoxville Civic Coliseum. The second annual ice skating performance will showcase Olympic and world figure skating champions skating to a live musical concert. Proceeds from this one-of-a-kind event will benefit the Provision CARES Foundation. Provision is working with its sister company, ProNova Solutions, to develop more efficient and less expensive proton therapy equipment. The development and commercialization of this next generation of equipment will make proton therapy more accessible both globally and across the nation in the future. For more information on the Provision Center for Proton Therapy and proton therapy treatment, visit www.provisionproton.com.

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Premier Partners Hear from ORNL’s Thom Mason at Recent Event Knoxville Chamber Premier Partners enjoyed an exclusive event with Oak Ridge National Laboratory Director Thom Mason on July 31 at King University. Mason, who has been director of the lab since 2007, gave attendees insight into ORNL and its important relationship to Innovation Valley. ORNL is managed by UT-Battelle and is the Department of Energy’s largest multidisciplinary science and energy laboratory, with a staff of more than 4,000 and 3,000 guest researchers working at the facility. The lab has five core research areas — nanotechnology and material sciences; computational sciences; biotechnology; energy and environment; and homeland security. While these initiatives are the main pillars of ORNL’s work, Mason said the lab has been looking into new arenas like engagement in education and fostering economic development by getting new technology to market. In terms of education, Mason said one of the things he’s most proud of is the graduate program ORNL started at the University of Tennessee. The Bredesen Center for Interdisciplinary Research and Graduate Education seeks to create opportunities for exceptional students to engage in interdisciplinary research and education. In just four years, the program has grown to be the largest Ph.D. program at UT’s Knoxville campus. “The students who are drawn into this program, as far as grades and GRE scores, are high-level students who would fit right into the best science and engineering schools in the country,” Mason said. “It’s having a tremendous impact on our research programs just to have all of these enthusiastic young people engaged.” Mason said that not only is this partnership beneficial for the students and the lab, but it also is helping further UT’s mission to become a Top 25 research institution. He explained that to move higher on the national list, schools must have more graduate students enrolled. “This program is helping increase the quantity and quality of students,” Mason said. “In the current budget climate, there’s no way UT could ask the state government to add 100 new research faculty — essentially they get that new faculty by tapping into the people working at ORNL.” Recently, Mason said the lab’s graduate students have shown an increased interest in entrepreneurism, and about a third of the class have elected to pursue entrepreneurial studies in addition to their science or engineering curriculum. “If you look at places that are hot spots for entrepreneurial activity, a lot of the time it’s young people who want to take the risk (of starting a company),” he said. “We’re hopeful that this will create opportunities for them to go off and start a company.” Mason said creating an entrepreneurial culture is one way of moving technology to the market place and fostering economic development. The lab is working on allowing entrepreneurial leave, which would allow an employee to work on a startup company while retaining his or her position. He said he hopes this would increase the success rate of startups that come out of the lab. ORNL is also impacting economic development through work done at its Manufacturing Demonstration Facility.

The Knoxville Chamber’s Premier Partners were treated to an exclusive event with ORNL Director Thom Mason on July 31. Chamber Executive Vice President Rhonda Rice; Thom Mason; Misty Mayes, CEO of Management Solutions LLC; and Chamber CEO and President Mike Edwards pose for a photo.

“The goal is to work closely with industry, demonstrating some of these new techniques, like carbon fiber and additive, and reduce the barriers to entry and hopefully accelerate technology commercialization,” Mason said. MDF was created by the Department of Energy 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 U.S. manufacturing. MDF currently houses the largest 3-D printer in the U.S. Companies like Honeywell, GE Energy, and Northrop Grumman have all worked with the facility on additive manufacturing projects. Vehicle innovator Local Motors, which operates a storefront on Market Square, is currently working with MDF on printing the world’s first 3-D car, which they’ll debut at the Association for Manufacturing Technology’s International Manufacturing Show in Chicago later this month. Mason said the additive technology offered at MDF was the prime reason the Phoenix-based business chose to locate here.