Tennessee Economic Development Guide 2009-10

TENNESSEE

What’ss Onlinee Read about Volkswagen gearing up for production in Chattanooga

ECONOMIC DEVELOPMENT GUIDE tnedg.com

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All in Good Taste Food production feeds the state’s economy

Less Pomp, More Circumstance Schools set higher bar for achievement

Here Comes the Sun State powers up clean-energy investment

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20 Workstyle Here Comes the Sun

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Tennessee shines in attracting clean-energy enterprise

Hands Across the Sea

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State advantages are a draw for major foreign investment

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All in Good Taste

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Tennessee food manufacturers feed the state’s economy

Suppliers and Demand

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VW assembly plant is growth engine for parts companies

A New Cash Crop

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Agritourism thinks outside the farm to create new economic opportunities

Big Friend to Small Business

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Entrepreneurs get a helping hand from a state government initiative

Starring Tennessee

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State lands a leading role in film and television production Table of Contents Continued on page 5

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ON THE COVER LightWave Solar Electric of Nashville installed 168 solar panels at Franke USA’s La Vergne headquarters. PHOTO BY JEFFREY S. OTTO

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Insight Overview

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Business Almanac

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Business Climate

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Energy/Technology

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Economic Profile

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Livability Not Shy, But Retiring

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Education: Less Pomp, More Circumstance

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Health

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What’s Online Read about Volkswagen gearing up for production in Chattanooga

ECONOMIC DEVELOPMENT GUIDE

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All in Good Taste Food production feeds the state’s economy

Less Pomp, More Circumstance Schools set higher bar for achievement

Lifestyle A showcase for what drives Tennessee’s high quality of life

Here Comes the Sun State powers up clean-energy investment

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Workstyle A spotlight on innovative companies that call Tennessee home

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ECONOMIC DEVELOPMENT GUIDE 2009-10 EDITION , VOLUME 1 8 MANAGING EDITOR BILL McMEEKIN COPY EDITOR JOYCE CARUTHERS ASSOCIATE EDITORS LISA BATTLES, SUSAN CHAPPELL, JESSY YANCEY STAFF WRITERS CAROL COWAN, KEVIN LITWIN CONTRIBUTING WRITERS PAMELA COYLE, MICHAELA JACKSON, JOE MORRIS, SAM SCOTT DATA MANAGER CHANDRA BRADSHAW SENIOR INTEGRATED MEDIA MANAGER ELIZABETH WEST SALES SUPPORT MANAGER CINDY HALL SENIOR PHOTOGRAPHER BRIAN McCORD STAFF PHOTOGRAPHERS JEFF ADKINS, TODD BENNETT, ANTONY BOSHIER, IAN CURCIO, J. KYLE KEENER PHOTOGRAPHY PROJECT MANAGER ANNE WHITLOW CREATIVE DIRECTOR KEITH HARRIS ASSOCIATE PRODUCTION DIRECTOR CHRISTINA CARDEN PRODUCTION PROJECT MANAGERS MELISSA BRACEWELL, KATIE MIDDENDORF, JILL WYATT SENIOR GRAPHIC DESIGNERS LAURA GALLAGHER, KRIS SEXTON, VIKKI WILLIAMS LEAD DESIGNER CANDICE SWEET GRAPHIC DESIGN ERICA HINES, ALISON HUNTER, JESSICA MANNER, JANINE MARYLAND, AMY NELSON, MARCUS SNYDER WEB IMPLEMENTATION DIRECTOR ANDY HARTLEY WEB DESIGN DIRECTOR FRANCO SCARAMUZZA WEB PROJECT MANAGER YAMEL RUIZ WEB DESIGN CARL SCHULZ WEB PRODUCTION JENNIFER GRAVES COLOR IMAGING TECHNICIAN TWILA ALLEN AD TRAFFIC MARCIA MILLAR, PATRICIA MOISAN, RAVEN PETTY

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CHAIRMAN GREG THURMAN PRESIDENT/PUBLISHER BOB SCHWARTZMAN EXECUTIVE VICE PRESIDENT RAY LANGEN SR. V.P./CLIENT DEVELOPMENT JEFF HEEFNER SR. V.P./SALES CARLA H. THURMAN SR. V.P./OPERATIONS CASEY E. HESTER V.P./SALES HERB HARPER V.P./SALES TODD POTTER V.P./VISUAL CONTENT MARK FORESTER V.P./EDITORIAL DIRECTOR TEREE CARUTHERS V.P./CUSTOM PUBLISHING KIM NEWSOM MANAGING EDITOR/COMMUNITY KIM MADLOM PRODUCTION DIRECTOR NATASHA LORENS PHOTOGRAPHY DIRECTOR JEFFREY S. OTTO CONTROLLER CHRIS DUDLEY ACCOUNTING MORIAH DOMBY, DIANA GUZMAN, MARIA MCFARLAND, LISA OWENS RECRUITING/TRAINING DIRECTOR SUZY WALDRIP DISTRIBUTION DIRECTOR GARY SMITH INFORMATION TECHNOLOGY DIRECTOR YANCEY TURTURICE IT SERVICE TECHNICIAN RYAN SWEENEY HUMAN RESOURCES MANAGER PEGGY BLAKE SALES SUPPORT RACHAEL GOLDSBERRY SALES/MARKETING COORDINATOR RACHEL MATHEIS EXECUTIVE SECRETARY/SALES SUPPORT KRISTY DUNCAN OFFICE MANAGER SHELLY GRISSOM RECEPTIONIST LINDA BISHOP

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Tennessee Economic Development Guide is published annually

by Journal Communications Inc. and is distributed through the Tennessee Department of Economic & Community Development.

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TENNESSEE ECONOMIC DEVELOPMENT GUIDE

Overview

Creating a Favorable Climate for Business TENNESSEE’S EFFORTS YIELD EXPANSION, NEW INVESTMENT

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ince taking office in January 2003, Gov. Phil Bredesen’s strategic focus of creating “higher skilled, better paying jobs” has yielded remarkable results for Tennessee.

With leadership from Commissioner Matt Kisber, the Tennessee Department of Economic and Community Development has helped spearhead a pro-business environment and an enviable record of new investment, expansion and job creation.

Since spring of 2008, Tennessee has been cited as the nation’s most competitive state for business, the second-best for business climate and the most improved state for development. From July 2008 through February 2009 alone, Tennessee landed more than $3 billion in new investment.

In the last five years, companies have invested $27 billion in capital and created 167,000 new jobs – two-thirds of them from expansion of existing business. Tennessee also attracted 43 corporate headquarters in that time.

Site Selection magazine in November 2008 ranked Tennessee

as the second-best business location in the United States, up from No. 7 in 2007. Site Selection also ranked Tennessee No. 1 among U.S. states in its coveted 2008 competitiveness rankings, in part because of the state’s regulatory climate, existing workforce skills and transportation infrastructure.

Volkswagen is building a $1 billion assembly operation in Chattanooga that will create 2,000 direct jobs and 9,400 indirect jobs. Asurion, the cell phone insurance provider, is spending another $100 million and adding 800 more jobs in Nashville over the next five years.

A report released in June 2009 by the Pew Charitable Trusts named Tennessee one of the top three states nationally for clean-energy job creation. In March 2008, Germanbased Wacker Chemie chose Bradley County for a $1 billion facility to make a primary component used in the manufacture of solar panels and

semiconductors, a project expected to create more than 500 jobs.

Hemlock Semiconductor, the world’s largest maker of polysilicon for the solar industry, selected Montgomery County for a silicon plant, an investment that could top $2 billion and create 900 jobs.

Whether it’s promoting enhanced standards for high school graduation, offering competitive incentives or providing a bevy of resources. The stage is set for success. Tennessee has created an inviting atmosphere to spur even more business growth and new investment.

Tennessee invites you to experience what everyone is talking about. For more information, contact: Tennessee Department of Economic and Community Development 312 Rosa L. Parks Ave., 11th Floor Nashville, TN 37243 (615) 741-1888 tnecd.gov

What’s Onlinee Take a virtual tour of Tennessee at tnedg.com, courtesy of our award-winning photographers.

Clarksville 75

Nashville

Knoxville Murfreesboro

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Tri-Cities

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Jackson 24 40

Memphis

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Chattanooga

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Almanac THEIR ROOTS GROW DEEP Agriculture is an age-old industry in Tennessee, and the state has the family farms to prove it. The Tennessee Century Farms Program identifies, documents and recognizes farms owned by the same family for at least 100 years. To date, the program has certified more than 1,200 such Century Farms.

The program is administered by Middle Tennessee State University’s Center for Historic Preservation and supported by the Tennessee Department of Agriculture.

The department was one of several sponsors of the inaugural Tennessee Farmland Legacy Conference held in fall 2008 that touched on such topics as farm estate planning and techniques that protect farmland while not hindering economic growth.

Go to www.picktnproducts.org/legacy for more on the program.

SUCCESS COMES IN SMALL BITES What began with a hamburger restaurant that opened in Chattanooga in 1932 has grown into an enterprise with 420 restaurants in 11 states.

The Krystal chain is known for small, square hamburgers, but also serves breakfasts of eggs, bacon, toast and waffles. In addition to being Krystal’s corporate home, Chattanooga hosts the Krystal Square Off World Hamburger Eating Championship. At the fifth annual event in September 2008, Joey Chestnut of San Jose, Calif., defended his title and won the $20,000 first prize by downing 93 Krystal burgers in eight minutes.

THE DOG ATE MY DOWNLOAD You may not be able to get Beatles songs, but you can get free education content from iTunes.

The Tennessee Department of Education has launched an electronic learning center in collaboration with Apple’s iTunes and the Tennessee Board of Regents that allows students, teachers and parents access to downloadable free content from the iTunes U. area of the iTunes store.

Students can download lessons in language arts, study skills and math, while educators can view training sessions on Tennessee’s new academic standards, School-wide Positive Behavior, reading and other teaching resources. For more, go to www.TNelc.org.

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GOLDEN PRAISE FOR NEW JOBS AND INVESTMENT

TEAMING UP TO GET TO ZERO

Tennessee’s success in attracting new jobs and investment is getting nationwide notice. Area Development, a leading magazine covering corporate site selection and relocation, honored Tennessee with its prestigious Gold Shovel Award, presented annually to the state achieving the most success in terms of job creation and economic impact.

Nissan, which has its North American headquarters in Middle Tennessee, will introduce zero-emission vehicles in the United States in 2010 and two years later will mass market ZEVs globally.

Nissan and Tennessee have formed a partnership to promote zeroemission vehicles, including electric vehicles, in Middle Tennessee.

The initiative includes participation from the Tennessee Valley Authority and several other partners, including local governments, universities, businesses and electric utilities.

Gov. Phil Bredesen has agreed to explore strategies in which the state might help support infrastructure deployment for electric vehicles, including charging stations in public places.

Economic development projects announced in 2008 were considered for the award. Based on the number of high-value added jobs per capita, amount of investment, number of new facilities and industry diversity, Tennessee achieved the highest weighted overall score.

Additionally, Volkswagen Group of America’s announcement that it would invest $1 billion in a new Chattanooga plant and employ 2,000 people was recognized as a Project of the Year.

YOU CAN TAKE THEIR WORD FOR IT Murfreesboro in Rutherford County is great place to raise a family.

Ask Business Week, which in 2008 placed the city on its list of Best Places to Raise Your Kids. The magazine cited housing affordability, the presence of Middle Tennessee State University and abundant recreation and cultural options.

The city, which eclipsed the 100,000-population mark in 2008, “hosts a jazz and a folk music festival in the summer and most major high school sports championships. It has expansive sports fields, including a new $13 million soccer complex,” the magazine noted.

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UÊÊ7 À v ÀVi | More than 300,000 available employees rich in manufacturing backgrounds UÊÊ/À> } | Top 10 in the nation by site selection consultants UÊÊ iÛi «i`Ê- ÌiÃÊ> `Ê Õ ` }à | Updated computerized site and community data, including location, available utilities, transportation, zoning and demographic statistics UÊÊ vÀ>ÃÌÀÕVÌÕÀi | Low utility costs, abundance of natural gas and advanced digital/fiber-optic networks UÊÊ V>Ì | Access to more than 70 percent of the nation’s population within one-day truck delivery UÊÊ/À> ë ÀÌ>Ì | Strategic interstate access (I-81, I-40, I-26, I-75, I-77), rail service (Norfolk Southern and CSX), 55 interstate trucking companies, commercial air, charter and air freight services, and a Foreign-Trade Zone UÊÊ ÃÌÊ vÊ }Ê Õà iÃà | Numerous tax credits, pro-business communities, and no sales tax on industrial machinery and equipment, raw materials or pollution control equipment UÊÊ/iV }ÞÊ,ià ÕÀVià | Universities and technology associations/ Tennessee Technology Corridor UÊÊ ÛiÀÃiÊ V Þ | Medical technologies, a broad range of manufacturers, corporate headquarters and distribution center

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NEW ATTRACTION NESTS AT PIGEON FORGE Pigeon Forge is a mecca for family-style entertainment, and the East Tennessee destination is getting another major attraction.

The $114 million Belle Island Village is a 26-acre themed resort that will offer a variety of retail, hospitality and entertainment venues and feature live concerts, shows and other entertainment to appeal to all age groups.

Attractions include Carnival Cove, which will replicate the rides, games and other experiences from an early 1900s carnival; the Debbie Reynolds Hollywood Motion Picture Museum, estimated to be the largest private Hollywood collection in the world; and NASCAR legend Darrell Waltrip’s Racing Experience, which will give visitors the experience of driving at 200 mph on a virtual track and seeing a hands-on pit crew area. For more on the project, go to www.belleisland.com.

MAKING THE DIRECTOR’S CUT Memphis has built an impressive resume as a film location, but it’s now getting good reviews as a base for film production.

Moviemaker Magazine ranked the city No. 8 on its 2009 list of the 25 best places for independent moviemakers. It was the fourth consecutive year on the list for Memphis, but a two-notch jump from the city’s 2008 ranking.

The magazine notes several wellknown independent movies shot in Memphis – including Mystery Train and Hustle & Flow – and credits the Memphis & Shelby County Film and Television Commission for its work. With benefits such as salesand-use tax refunds, extended nightly deadlines for FedEx shipping and the experienced Memphis Movie Motorcycle Unit, “shooting here can add up to serious savings – of both money and stress,” the magazine says.

DAVY CROCKETT SLEPT HERE The king of the wild frontier and one of the legends of the Alamo spent the first eight years of his life in Greene County, Tenn.

The Davy Crockett Birthplace State Park near Limestone features a replica of the log cabin where Crockett was born in 1786, along the Nolichucky River. His birthplace actually consists of 105 partially wooded acres preserved as a historic site by the Tennessee Department of Environment and Conservation.

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Business Climate

Playing A Strong Hand State’s efforts pay off in a string of major investments, expansions Story by Pamela Coyle • Photography by Antony Boshier

workforce

infrastucture

flexibility

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ew economic investment in Tennessee is as brisk as it is diverse.

In March 2008, German-based Wacker Chemie chose Bradley County for a $1 billion facility to make hyperpure polycrystalline silicon, a primary component used in the manufacture of solar panels and semiconductors. The project, the third billion-dollar investment the state landed in an eight-month span, is expected to create more than 500 jobs.

It follows Hemlock Semiconductor, the world’s largest maker of polysilicon for the solar industry, selecting Clarksville for a silicon plant, an investment that could potentially top $2 billion and create 900 jobs. Volkswagen is building a $1 billion assembly operation in Chattanooga.

Asurion, the cell phone insurance provider, is spending another $100 million and adding 800 more jobs in

Nashville over the next five years.

Green Mountain Coffee Roasters will spend $55 million and hire more than 300 people as its new operation in Knoxville gets brewing. DeKalb County will see 200 new jobs as Star Manufacturing expands its commercial cooking appliance plant.

Matt Kisber, commissioner of Tennessee’s Department of Economic and Community Development, attributes the state’s success to its flexibility in working with prospects and its focus on helping established companies grow.

“When it comes to economic development, we do not apply the one-size-fits-all approach,” Kisber says. “We understand the recruitment process is a long-term relationship. We take the approach that companies are looking to minimize risk; everything we can do to provide predictability minimizes risk.”

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Nashville-based Asurion plans to add 800 jobs over the next five years as part of a $100 million capital investment in Tennessee.

Site Selection magazine in November 2008 ranked Tennessee as the second-best business location in the United States, up from No. 7 in 2007.

In the last five years, companies have invested $27 billion in capital and created 167,000 new jobs – twothirds of them from expansion of existing business.

Tennessee also attracted 43 corporate headquarters during the same period.

“We have a great business climate that is recognized as one of the very best in the country,” Kisber says. “We have a good workforce, and companies tell us over and over again that it is among the best – if not the best – in the entire country.”

Site Selection’s annual survey of company executives

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found that regulatory procedures, existing workforce skills and transportation infrastructure to be the top three business considerations.

For Green Mountain Coffee, based in Waterbury, Vt., East Tennessee was a perfect spot for its expansion.

“As we visited, we loved the feel of Knoxville and the whole feel of East Tennessee,” says Jon Wettstein, the company’s vice president of operations.

The company started its logistics study in January 2008, closed on a former wall covering distribution building in July that year and started production in September.

“Everything was right,” Wettstein says. “We’ve got a lot of growth to happen in Knoxville.”

Science Applications International Corp. is growing,

Tennessee’s Top Projects of 2008 HEMLOCK SEMICONDUCTOR Category: Manufacturing of polycrystalline silicon Location: Clarksville, Montgomery County Company investment: $1.2 billion to $2.5 billion 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.

VOLKSWAGEN GROUP OF AMERICA Category: Auto manufacturing Location: Chattanooga, Hamilton County Company investment: $1 billion Jobs: 2,000 ASURION Category: Headquarters Location: Nashville, Davidson County Company investment: $100 million Jobs: 800 over five years in headquarters and customer care GREEN MOUNTAIN COFFEE ROASTERS INC. Category: Manufacturing Location: Knoxville, Knox County Company investment: $55 million Jobs: 360 LECLERC FOODS Category: Baked good manufacturing; headquarters, R&D, manufacturing Location: Kingsport, Sullivan County Company investment: $35 million Jobs: 85

too. SAIC, a technology services provider, in 2008 set up a Shared Services Center in Oak Ridge, where it has been in operation for 30 years.

The expansion added 150 jobs, bringing employment to 800 full-time workers. “SAIC was drawn to the Oak Ridge area because of its stable work force, modern telecommunications infrastructure, favorable business environment and attractive quality of life,” says spokeswoman Melissa Koskovich.

Continued growth is what Tennessee wants, and Kisber says company executives laud the state’s approach as customer focused.

“We hear all the time, ‘The way you work with us is different than anyone,’” Kisber says.

JOHNSON CONTROLS INC. Category: Automotive seating, consoles and interior components manufacturing Location: Columbia, Maury County Company investment: $19.72 million Jobs: 311 SCIENCE APPLICATIONS INTERNATIONAL CORP. Category: Headquarters Location: Oak Ridge, Anderson County Company investment: $10 million Jobs: 150; bringing employment to 800 people STAR MANUFACTURING Category: Manufacturing Location: Smithville, DeKalb County Company investment: $4.24 million Jobs: 200

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Here Comes the Sun Tennessee powers up efforts in renewable energy, biofuels Story by Pamela Coyle

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ennessee is making bold moves to position itself as a leader in clean energy, including a proposed Solar Institute, big investment in biomass technology and tax incentives for companies in the renewable-energy supply chain.

The state already has landed some impressive players. Hemlock Semiconductor will invest $1.2 billion to $2.5 billion on a silicon manufacturing operation in

Clarksville as part of a joint venture between majority owner Dow Corning Corp. and two Japanese companies.

German company Wacker Chemie announced in February 2009 plans for a $1 billion silicon plant in Bradley County. The companies are the top two producers of polycrystalline silicon for the solar industry.

By the end of 2009, the state hopes to have the Tennessee Solar Institute in place to support the growing

industry on the research side.

“Energy and solar are innovation based,” says Matt Kisber, Tennessee Department of Economic and Community Development commissioner. “We cannot sit back and thrive on existing technologies.

These investments are being talked about as national security and energy independence issues, but they are really about economic development and job creation.”

LEADING THE WAY STATE PUTS PLAN IN PLACE TO BECOME A GREEN GIANT TENNESSEE has passed new legislation designed to make the Volunteer State a national leader in energy efficiency and clean-energy technology.

The Tennessee Clean Energy Future Act of 2009 is a wide-ranging law with bipartisan support that addresses several major recommendations made by the Governor’s Energy Policy Task Force.

KEY COMPONENTS OF THE LEGISLATION INCLUDE: Requiring state government to “lead by example”

with improved energy management of its buildings and passenger motor vehicle fleet.

Encouraging job creation in the clean-energy technology sector by making qualified businesses eligible for Tennessee’s existing emerging industry tax credit.

Promoting energy efficiency in newly constructed homes with a limited statewide residential building code and expanding eligibility for federal funds used to “weatherize” existing homes in low-income areas.

Shoals Technologies in Robertson County uses robotic machinery in production of junction boxes for solar panels. P H O T O B Y J E F F A D K I N S

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What’s Onlinee Read more about Tennessee’s clean-energy initiatives at tnedg.com.

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BRIAN McCORD P H O T O C O U R T E S Y O F P EG GY G R E B

More Insight Tennessee offers the “Green Tool Kit,” a number of tax credits and other incentives to promote clean-energy enterprises. Incentives include tax credits to certified green-energy supply chain manufacturers, reduced taxes on electricity and tax credits on pollutioncontrol equipment. For more information, go to tnecd.gov.

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As the U.S. Department of Energy’s largest science and energy lab, Oak Ridge National Laboratory works on improving basic materials for application in solar, auto, battery and other sectors to boost efficiency.

“We have a strong incentive to work with industry and come up with solutions,” says Dr. Thom Mason, ORNL director. “Changes in our energy landscape become real only once they are in the hands of the private sector.”

Gov. Phil Bredesen has proposed the Volunteer State Solar Initiative, a solar-energy and economic-development program that would use up to $62.5 million in federal stimulus money to advance job creation,

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

education, research and renewable-power production in Tennessee.

In addition to the solar institute, the initiative includes plans for the West Tennessee Solar Farm, a five-megawatt, 20-acre power generation facility at Haywood County’s industrial megasite.

In biofuels, Tennessee has invested more than $70 million, including a pilot refinery to help jumpstart the industry. The first product from the plant in the Niles Ferry Industrial Park may be ready by the end of 2009, says Timothy Rials, research and development director of the University of Tennessee’s Office of Bioenergy Programs.

Green-Collar Revolution

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TENNESSEE SETS PACE IN CLEAN-ENERGY JOB GAINS

Tennessee’s efforts in clean-energy technology include major investments in solar power research and development. Wind-generated energy is an increasing part of the state’s power grid. The state has invested more than $70 million in biofuel efforts, such as switchgrass.

The project is a joint venture with UT and DuPont Danisco Cellulosic Ethanol LLC. Focusing on switchgrass, a crop that can grow well on marginal lands, the process uses enzymes and microbes to break the plant cellulose into sugars and turn the sugars into ethanol.

The first 723 acres were harvested in fall 2008. One acre can produce up to nine tons of switchgrass, and the working formula is 100 gallons of cellulosic ethanol per ton.

“The real key here is about eliminating the conversation around

food vs. fuel, because it all involves marginal lands,” Rials says.

Shoals Technologies focuses on wire and integration components for solar installation, and the company is growing so quickly it needed a second site. Fast. Shoals moved into an existing building in Portland in Robertson County and already is rolling product off the lines. It’s also moving its headquarters to Gallatin.

“Everyone was receptive to us. The economic development people (local and state) did a great job,” says John Maros, Shoals vice president.

The Volunteer State is building a national reputation in cleanenergy job creation.

In the most detailed study of the sector to date, the Pew Charitable Trusts found that Tennessee’s emerging cleanenergy economy grew at a pace seven times faster than overall job creation in the state between 1998 and 2007.

The study, released in June 2009, noted that Tennessee had more than 15,500 jobs and nearly 1,100 companies in clean-energy enterprises in 2007, and that the sector attracted more than $16.3 million in venture capital funding between 2006 and 2008.

“Expanding our focus on energy efficiency, renewable power production and other clean energy activities is helping jumpstart our state’s economy, and it happens to be the right thing to do for the environment,” says Gov. Phil Bredesen.

The study, which was based on actual creation, businesses and investment, found Tennessee’s clean-energy economy grew more than 18 percent between 1998 and 2007, while overall jobs grew by 2.5 percent in the state during the same period. Tennessee also outpaced the national average in annual percentage growth in job creation in the clean-energy sector in that period.

The study noted the state’s largest increases in clean-energy jobs came in the energy efficiency and conservation and pollutionmitigation categories.

“I think the best thing about clean energy jobs is that they are incredibly diverse, from research to manufacturing, from engineering to installing, and the list goes on from there,” Bredesen says. “There is a host of opportunities for Tennesseans with all kinds of backgrounds.”

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BRIAN McCORD

Hands Across the Sea Tennessee’s advantages are a draw for major foreign investment Story by Joe Morris

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combination of available land, low tax structure and quality workforce is keeping Tennessee high on the list of investment by foreign-owned companies.

Nearly 680 foreign-owned companies from 30 different nations employ some 112,000 Tennesseans and have made investments in the state totaling $19.2 billion.

Three major projects announced in a span of just a few months underscore the interest.

Volkswagen will invest some $1 billion in Chattanooga.

Germany’s Wacker Chemie plans a $1 billion facility to manufacture hyperpure polycrystalline silicon in Bradley County. Hemlock, a joint venture between majority owner Dow Corning Corp. and two Japanese companies, is investing $1.2 billion to $2.5 billion in a silicon plant in Montgomery County.

“The recent Wacker announcement and the VW investments are a clear indicator that southeastern Tennessee has become an extremely attractive location for German companies,” says Kristian Wolf, president and chief executive officer of the German American Chamber of Commerce of the Southern United States.

Japan’s presence in Tennessee dates to the 1970s, and today its business presence includes major auto and tire manufacturing among the 147 Japanese companies that have operations in the state.

Japan in 2008 relocated its consulate general to Nashville, where the Japan-America Society of Tennessee has been promoting friendly relations and cultural understanding between the two countries since 2000.

The society is playing a key role in setting up the 32nd annual Southeast U.S./Japan Association & Japan-U.S.

Southeast Association meeting that will be held in October 2010 in Nashville. The associations are made up of leaders in business and government from Japan and eight Southeast states including Tennessee. The groups promote trade, investment, understanding and friendship.

“Japan is really the pioneering investor here,” says Leigh Wieland, Japan-America Society executive director.

“It began with a Nissan forklift company in the late 1970s, and then just grew from there. They’re still coming.”

Having the consulate general of Japan relocate to Nashville only underscores Tennessee’s geographical advantage as a place for Japanese companies when they’re considering a location in the United States, she says.

“We can point to that to show them they have services they need to operate here and stay in touch with their government. It’s a great convenience to them,” she says.

Canadian companies find the state a good place to do business for several reasons, not the least of which is the bottom line, says Brian Oak, consul general at the Canadian Consulate General – Atlanta.

“Tennessee plows significant cash and tax incentives into attracting foreign-development investment,” Oak says. Volkswagen’s presence should mean more business for Canadian companies, he says. Canada’s inroads into VW’s Chattanooga regional sourcing office bring additional benefit because as suppliers are approved there, they automatically will have the opportunity to supply VW’s plant in Juarez, Mexico, Oak says.

“This provides Tennessee and the surrounding Southeast states with an added incentive to attract Canadian auto-parts suppliers,” he says.

ThyssenKrupp Waupaca Inc. in Etowah is one of nearly 680 foreign-owned companies with operations in Tennessee. The company, which makes iron castings for the auto industry, has invested $160 million to expand its operations.

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TENNESSEE ECONOMIC DEVELOPMENT GUIDE

All In Good Taste Tennessee’s food manufacturers feed the state’s economy Story by Pamela Coyle

T

ennessee’s food producers serve up the sweet, the savory and the saucy, a menu that provides not only dietary staples, but also economic stability to the state.

The Volunteer State boasts an array of well-known brands, from Bush’s Baked Beans to Jimmy Dean sausage to Pringles to Goo Goo Cluster and Little Debbie. Food manufacturing accounts for 36,000 jobs in the state.

“We don’t go up when the economy goes up and don’t go down when economy goes down,” says Steve Harrison, a vice president at Bush Brothers & Co. “We want people to eat at home and eat outside.”

The 101-year-old company has headquarters in Knoxville and its flagship plant in Chestnut Hill. In the last five years, Bush Brothers has spent more than $250 million upgrading its

Jefferson County plant, a project now in its third phase. While the company has a classic product, it often introduces new varieties, including a line of “grilling beans” in 2008 that Harrison describes as “more robust” and mixed with other vegetables. “They are designed to complement steaks, chops, fish and chicken,” he says.

Jimmy Dean is another U.S. food mainstay, and parent company Sara Lee in October 2008 introduced a new line of breakfast entrees and added turkey sausage bowls and croissant sandwiches to its Jimmy D-Lites line.

The Newbern plant in Dyer County employs about 800 people.

“The plant is one of the largest raw sausage manufacturers in the United States,” says plant manager Mark Porter.

Texas-based Five Star Custom Foods will invest $20 million over the next

16% 4%

33%

8%

14% 10% 15%

FOOD INDUSTRY CREATES JOBS Baked Products Dairy Products Fruits & Vegetables Sugar & Confectionary Grain Milling Animal Food Other Products

MORE AT TNEDG.COM

Tennessee’s food and beverage manufacturers cover everything from breakfast to dessert. P H O T O B Y T O D D B E N N E T T

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three years to locate a plant in Nashville that will initially employ between 70 and 100 people.

On the sweet side, Nashville-based Standard Candy Co. has been making the Goo Goo Cluster for nearly 100 years. The local labor market got a boost earlier this year when Standard closed its plant in Eastman, Ga., and transferred 250 jobs to Nashville.

Nutritional bars account for more than 90 percent of the company’s sales, though the Goo Goo Cluster is its signature product.

Like chocolate, Tennessee is hard to resist. Leclerc Foods, a Canadian

company, started making granola bars at its new Kingsport facility in December 2008. A second production line, which is planned for 2009, will produce crackers.

The company projects a capital investment of up to $35 million and plans on hiring 100 people over the next three years.

Tennessee also is home to McKee Foods, with a plant in Collegedale that has been turning out treats for 70 years and today has sales of $1.5 billion.

McKee, the nation’s largest snack cake producer by volume, makes Little Debbie, a product line named for the

co-founder’s granddaughter that now tops 160 offerings.

The latest, introduced in April, is a 100-calorie cookies-and-cream concoction, making the company’s 10th product in the 100-calorie line. “Our customers say they taste better than the competitors’ and are about half the price,” says spokesman Mike Gloekler.

More than 3,000 people work at McKee and its subsidiaries in Tennessee, which include Sunbelt, Heartland and Fieldstone Bakery brands, Gloekler says.

“We have fourth-generation family leadership and even some fourth-generation employees,” he says.

BUILT TO LAST STATE FORGES STRONG MANUFACTURING HERITAGE equipment is the state’s largest industrial sectorr by employment, accounting for nearly 53,000 jobs, followed by industrial machinery and fabricated metal products manufacturing.

Tennessee economic figures peg the value of manufacturing in 2008 at $48.3 billion, 22 percent of the state’s Gross Domestic Product.

PHOTOS BY ANTONY BOSHIER

Tennessee is home to more than 8,100 manufacturers that employ some 445,000 workers, ranking the state 14th in the United States for industrial jobs and 17th for number of manufacturers.

According to research by directory publisher Manufacturers’ News Inc., transportation

A host of products familiar in refrigerators and pantries are made in Tennessee, which has a long tradition of food manufacturing.

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The 1,700-acre I-40 Advantage Megasite in Haywood County is adjacent to a major rail line and interstate highway.

BYOB - Bring Your Own Backhoe HAYWOOD COUNTY HAS A SHOVEL-READY SITE PRIMED FOR MAJOR MANUFACTURING

O

ne of Tennessee’s premier industrial sites is within 50 miles of a major airport, a port on the Mississippi River and 1.7 million people from which to hire workers.

In Haywood County, the I-40 Advantage Megasite is next to a CSX main line and Interstate 40.

A TVA-certified megasite, the 1,700-acre parcel is halfway between Memphis and Jackson, off Exit 42.

The state has proposed selling $27 million in bonds to buy the core acreage because Haywood County’s options on the land will expire in 2010. That will boost the marketing potential to lure a major tenant that could mean hundreds of new jobs for

the region.

“It could be transformational,” says Paul Latture, former president and CEO of the Jackson Area Chamber of Commerce.

Haywood County Mayor Franklin Smith says with the state as a partner, engineering and other site prep work can proceed, which will further shorten the time frame for a prospect that wants to build.

Tennessee is home to three of eight TVA-certified sites. In 2008, Volkswagen claimed one in Chattanooga and Hemlock chose one in Clarksville for solar manufacturing.

The sites work well for manufacturers of automobiles,

transportation-related equipment, chemicals, plastics and heavy manufacturing, says John Bradley, TVA senior vice president of economic development.

“It is extremely rare to have a site of this quality and size adjacent to rail and also this close to an interstate,” Bradley says.

TVA hired an outside firm to evaluate and certify the megasites, and the process included rigorous environmental, archeological and geotechnical studies.

“A certified site saves time and money and gets you on a company’s short list for location consideration,” Bradley says.

– Pamela Coyle

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Suppliers and Demand VW assembly plant is growth engine for parts companies Story by Joe Morris

Willkommen VW

$1 billion Investment by Volkswagen in Chattanooga operation

2,000 Direct job creation from plant

9,400 Estimates of job creation from plant construction and supplier activity

$511.1 M Estimate on how much plant’s presence will boost incomes in region each year

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V

olkswagen has parked its new U.S. assembly complex in Chattanooga, and the ripple effects from that $1 billion investment and plans for 2,000 direct jobs are already being felt.

In April 2009, M-Tek Inc. of Manchester landed a $147 million contract to provide interior door panels for a sedan set for production beginning in 2011. In June 2009, Tier 1 supplier Gestamp Corp. announced plans to invest $90 million for an auto parts stamping plant in Chattanooga that will create 230 jobs.

A study by the University of Tennessee’s Center for Business and Economic Research estimated the plant will boost incomes in the region by $511.1 million annually, generate more than $55 million a year in new tax revenues for state and local govern-

ments, and create 9,400 indirect jobs from construction and supplier activity.

Denso supplies several products to VW, including air conditioning compressors, HVAC units, condensers and cam timing control systems.

“We are always pursuing new business opportunities with automakers and, as VW is one of Denso’s customers, we welcome them to Tennessee. This is a great place to do business,” says Hugh Cantrell, general manager of automotive services for Denso Manufacturing’s Athens facility.

Brannan Atkinson, executive director of the Tennessee Auto Manufacturers Association, says an association event in December 2008 drew 175 people from Tennessee, Alabama and Mississippi eager to learn what Volkswagen was up to.

Volkswagen’s milestone announcement that it would begin making cars in Tennessee will drive new opportunities for a cadre of suppliers that will serve the operation. PHOTO BY BRIAN Mc C ORD

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$198 million to VW contractors and subcontractors for plant construction, with another $230 million in contracts planned over the next 20 years.

Construction began in May 2009 for a training center on the Enterprise South site that will house a 160,000-square-foot Volkswagen Training Academy.

The Chattanooga Area Chamber of Commerce officials note that Gov. Phil Bredesen worked with Hamilton County Mayor Claude Ramsey, Chattanooga Mayor Ron Littlefield and others to have a $20 million interchange constructed off Interstate 75 into the VW site – even before the company made a final decision.

“The Volkswagen project required a whole new level of cooperation,” says Tom Edd Wilson, chamber president and CEO. “That same spirit of cooperation is aiding our community in meeting Volkswagen’s

aggressive timeline for the plant to become operational.”

The chamber also is working with the private sector to establish new industrial infrastructure to attract additional companies, such as automotive suppliers and other companies, particularly those that manufacture larger components such as chassis, interior panels and seats.

Chattanooga State Community College has been identified as the primary training partner, so the chamber’s workforce development staff is assisting the college and VW’s human resources team in prepping for hiring and training.

“Most of that won’t begin until 2010,” says J.Ed. Marston, chamber vice president of marketing and communication, “but we’re working to make sure that the infrastructure to support that and all their needs is well under way in the meantime.”

IAN CURCIO

“People want to get in here right now and get close to the VW folks.

They know the Tennessee auto industry is doing well,” he says.

Just up the road from Enterprise South Industrial Park, where Volkswagen is building its plant, Cleveland is getting ready for new business, says Gary Farlow, the president and CEO of the Cleveland/ Bradley Chamber of Commerce.

“We’re still waiting for the big waves to break here,” Farlow says.

“After the announcement, the state asked us to submit potential sites and buildings, and we turned in six. We’ve added two more since and identified some other public industrial park land. When they award the contracts, we’ll be ready.”

As of summer 2009, nearly $436 million in local contracts have been awarded by the city, state and VW. That figure includes more than

Hamilton County Mayor Claude Ramsey stands at the site of Volkswagen’s planned $1 billion Chattanooga plant.

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TENNESSEE ECONOMIC DEVELOPMENT GUIDE

BRIAN McCORD

The Port of Cates Landing is the only developable site on the Mississippi River between Memphis and Cairo, Ill.

Harboring Big Ambitions PORT OF CATES LANDING INTERMODAL FACILITY WILL CREATE A WAVE IN SHIPPING

A

s it nears completion, the massive Port of Cates Landing in West Tennessee is drawing interest from shippers and manufacturers throughout the United States.

The port, which will be accessible to barge traffic year round following its completion in 2010, sits on the only developable site on the Mississippi River above the 100-year flood plain between Memphis and Cairo, Ill. The port, near Tiptonville, has 9,000 linear feet of slack-water harbor, expandable to 14,000 linear feet, and sits close to Interstate 55, I-155, I-40, I-24 and I-69, as well as the major air and rail freight centers of Memphis and the Canadian National Railway line. Its intermodal port dock will serve barge, rail and truck traffic and is likely to see plenty of all three, says Jimmy Williamson, Northwest Tennessee Regional Port Authority chairman.

“We have shown prospective users the state study that shows a gallon of fuel moves a ton of freight 59 miles by truck, 212 by rail and 500 or more by water, so it’s a much cheaper mode of transportation,” he says.

The potential is what caught the eye of U.S. Rep. John Tanner, who helped shepherd federal funds to the port project.

“It is the most important economic development project in Northwest Tennessee in my lifetime, and the positive impact will be felt for generations to come,” he says.

To that end, Tanner predicts that the port will soon anchor a thriving hub not only for intermodal transportation, but other businesses as well.

“The possibilities are limitless,” he says. “A University of Memphis study projected as many as 5,600 new jobs for West Tennessee. That will not only have a huge impact throughout West Tennessee, but also benefit the state through creating more jobs, generating more income and increasing tax revenues.”

– Joe Morris

Lake County

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A New Cash Crop Agritourism thinks ‘outside the farm’ to harvest new opportunities Story by Carol Cowan

More Insight BUMPER CROP OF INFO Several online resources provide information on Tennessee’s agritourism attractions, including: • The Tennessee Agritourism Association, www. visittnfarms.com • Tennessee Vacation (the state’s official tourism site), www. tnvacation.com/ agritourism • Pick Tennessee Products, www. picktnproducts.org

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rom more than 30 wineries and numerous pickyour-own berry and pumpkin patches to the dozens of dairies, corn mazes and fall harvest festivals, agritourism destinations are cropping up all over Tennessee.

Typically closer to home and less expensive than highly commercialized attractions, agritourism destinations are especially appealing to families.

“Agritourism is often a hands-on experience, where families are picking products together, tasting local products and experiencing the rural outdoors in an out-of-the-ordinary way,” says Phyllis Qualls-Brooks, assistant commissioner of the Tennessee Department of Tourist Development. “Whether it’s a hayride, a campfire or a corn maze, agritourism gets people outside and into nature.”

The sites, she says, can provide educational and entertaining opportunities for youth, where they can discover the processes of milk production or learn about vegetables from actual experiences rather than from a book or in a classroom. And for adults, she says, “Wineries are a very romantic getaway.”

An educational component makes Vera Ann Myers’ family’s agritourism attraction in Greene County particularly meaningful to her.

Myers operates Myers Pumpkin Patch and is a former teacher and the current president of the Tennessee Agritourism Association.

“Personally, it’s very satisfying to educate the public

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BRIAN McCORD

Above: The 150-year-old Donnell Century Farm in Jackson lets visitors get an up-close look at barnyard animals and includes a hay climb, corn palace and goat ramp. Right: Randall & Paula Carr’s Wild Horse & Burro Adoption Center in Cross Plains has been a Robertson County landmark for 30 years and lets visitors experience nature and animals. P H O T O B Y A N T O N Y B O S H I E R

26% 48%

35% 43%

TENNESSEE’S AGRITOURISM ENTERPRISES OFFER VARIETY OF EXPERIENCES Offer on-site retail markets Offer restaurants Offer tours Offer pick-your-own

MORE AT TNEDG.COM

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about farming,” she says. “I love seeing kids’ eyes light up when they get on a hayride, or hearing senior citizens say, ‘I remember when…’ Plus, I get to combine my two favorite things – farming and education. I’ve found my niche.”

While opening her family’s farm to tourists was a natural fit for Myers, it’s a matter of economic necessity and a vital development tool for many farmers and rural communities.

“Food prices in the stores keep going up, but the price we get is going down, and prices for feed are outrageous.

Farmers hang on because farming is what we know and love,” Myers says.

“We need agritourism to make up the difference. Farmers need to think outside the farm. If it takes bringing people to our farms to keep from losing them, then that’s what we need to do.

And we’re getting people off the

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interstates and bringing customers out to the rural areas where, hopefully, they will spend money,” she says.

According to Myers, Tennessee is looked on as a model state for agritourism thanks to Gov. Phil Bredesen’s Agritourism Initiative and strong support from state agencies such as the Department of Agriculture and the Department of Tourist Development.

Agritourism sites are listed in the Official Tennessee Vacation Guide and included on state-sponsored tours for travel writers.

In fall 2009, two tours will focus solely on agritourism and culinary attractions in Tennessee, Qualls-Brooks says, including farm-to-table restaurants, farmers markets and various farm events happening around the fall harvest.

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TENNESSEE ECONOMIC DEVELOPMENT GUIDE

Big Friend to Small Business Entrepreneurs get a helping hand from a state government initiative

Story by Joe Morris

E

ntrepreneurship is a booming business in Tennessee.

The Ewing Marion Kauffman Foundation’s Index of Entrepreneurial Activity – a leading indicator of new U.S. business creation – ranked Tennessee among the top states in 2007, with 460 adults out of every 100,000 creating a business.

The promotion and support of entrepreneurial activity is a key focus of the Business Enterprise Resource Office of the Tennessee Department of Economic and Community Development.

Michelle Proctor, BERO director, says the

office has three main focuses: helping businesses find and obtain financing, helping them with procurement issues or doing business with the government, and helping them at startup.

“We help them understand licensing and certification requirements, regulations, things they need to know to set up their business,” she says.

BERO also works with Southeast Community Capital, an SBA-certified microlender, to manage the $10 million Rural Opportunity Fund created by Gov. Phil Bredesen to help rural small businesses,

More Insight The Business Enterprise Resource Office (BERO) provides technical, financial and management information assistance to small business and minorityand women-owned enterprises. For more on BERO and its services, go to tnecd.gov/bero.

Michelle Proctor is the state’s Business Enterprise Resources Office director. P H O T O B Y B R I A N M c C O R D

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fund helped owners Thomas and Lorie Pavlou continue to grow and be in better shape between getting bids and receiving payment.

And in Germantown, 11-year-old Stragistics Technology Inc. provides information technology, management, consulting and staffing services.

Owner Hughetta Dudley needed BERO’s assistance to obtain a $150,000 loan from the Memphis Area

Association of Government for working capital. The AfricanAmerican-owned and woman-owned business is not only an SBA-certified entity, but also a certified diversity supplier at the local and state level.

“This administration has increased the amount of resources available and added staff to our office,” Proctor says. “We take small business in this state seriously.”

ANTONY BOSHIER

as well as connect clients to other nontraditional sources of funding.

The statewide initiative won Business Retention and Expansion International’s (BREI) 2009 MultiCommunity Program Award for populations over 100,000.

BERO’s highly popular Tennessee Business Matchmaking series of business-to-business conferences has been likened to “speed dating” for companies. The office also offers free, online seminars to answer questions or issues that face small, minorityor women-owned businesses.

In 2008, BERO helped more than 1,800 entrepreneurs and business owners, including a business owner in all 95 Tennessee counties. About a third of BERO clients are ethnic minorities, and about half are women.

In Kingsport, Phil and Diana Pipkin were able to turn a hobby into a business by opening Phil’s Dream Pit BBQ. The Pipkins received a $10,000 loan from the ECD-BERO Rural Micro-Loan Fund, and were connected to the Department of Agriculture’s Pick TN Products program to manufacture and market their barbecue sauce.

BERO assisted Stephanie Newton in applying for and obtaining a $10,000 loan for her business, Hair & Body Image in Kingston. The salon provides beauty services and products as well as tanning and nail services.

Newton is also working with a local Small Business Development Center on her business and marketing plan.

T&L Baking Co. in Cleveland is a 20-year-old manufacturer of angel food and pound cakes for regional distributors. The $10,000 loan the business received from the micro-loan

A BERO assistance program helped Stephanie Newton obtain a loan to purchase Hair & Body Image in Kingston.

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Starring Tennessee State lands a leading role in film, television production

Story by Sam Scott

I

t is true Hannah Montana: The Movie is set in Tennessee, which also happens to be the home state of its teenage mega-star Miley Cyrus.

But with movie magic able to turn anywhere into Montana’s hometown of Crowley Corners, the decision on where to shoot the film came down largely to dollars.

For a while, Louisiana looked like it would be the victor.

But then Tennessee went into high gear, wooing the film’s executives with a relentless courtship that

showcased the state’s financial incentives and the abundance of homegrown technical talent.

The frantic effort was worth it, says Perry Gibson, head of the Tennessee Film Entertainment and Music Commission, who believes word-ofmouth from the Walt Disney Films production will bring more movies and also benefit the state in ways that have nothing to do with movies.

“Bringing Hannah Montana to the state was one of the biggest booms to the industry we have had for awhile,”

“We see some real impact on tourism in the future.

It really demonstrates how terrific our terrain and rivers and farms are and the beauty of this state.”

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TENNESSEE ECONOMIC DEVELOPMENT GUIDE

What’s Onlinee See video of memorable music made in Memphis at tnedg.com.

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Above: Stewart Holmes, technical director at Beale Street Studios in Memphis, films a music video. Beale Street Studios is a full-service production house. Right: Major film production is on an upswing in Tennessee. PHOTOS BY BRIAN McCORD

On Screen • Tennessee ranks in the top 10 states outside California with the most film productions.

• Memphis ranks eighth in the nation among individual locations for most film productions.

Source: Motion Picture Association of America

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she says. “We see some real impact on tourism in the future. It really demonstrates how terrific our terrain and rivers and farms are and the beauty of this state.”

That type of success is helping to cultivate the state’s film and television culture.

East Tennessee, where Scripps Networks in based, is an epicenter for cable television productions that include cooking, gardening and home repair programming.

The industry infrastructure in Middle Tennessee could get a big boost with Browns Creek Media Village, a state-of-the-art film and television production studio, highereducation film school and an arts and entertainment venue concept that has been proposed for the Tennessee Fairgrounds in Nashville.

While Hannah Montana has garnered much attention, the state has a long history of making movies. Memphis, in particular, has repeatedly caught the industry’s eye. In 2009, Movie Maker magazine named it the eighth best movie-making city in the country.

Memphis has played a role in several notable films, including The Firm, The Client, The People vs. Larry Flint, 21 Grams and Walk the Line, which included several locations

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

across Tennessee. In 2005, the city was dubbed the “lucky charm” of the Sundance Film Festival when Memphis-filmed Hustle & Flow and Forty Shades of Blue won prizes.

That pedigree has helped spawn other business, such as Beale Street Studios in Memphis, which provides production and post-production work for corporate and other clients.

But the city knows the business’ frustrations, too. In 2004, CBS gave up a chance to film an Elvis miniseries there because incentives made Louisiana cheaper, even with the cost to construct a fake Graceland.

The decision helped galvanize the state into offering its own incentives, which give up to 32 percent rebates on what filmmakers spend in state.

The result has helped attract several productions, chief among them, Hannah Montana, Gibson says.

Productions that come to Tennessee benefit from the availability of talented labor, low cost of living, cooperative leaders and amazing landscapes.

“We have everything but the ocean and the Antarctic,” Gibson says.

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Livability

Not Shy, But Retiring Tennessee towns are a draw for post-career living Story by Kevin Litwin • Photography by Antony Boshier

S

ome 78 million baby boomers are nearing retirement age, and Tennessee wants them to know the Volunteer State is a great place to spend their golden years.

The Tennessee Department of Economic and Community Development’s Retire Tennessee program (www.retiretennessee.org) brings together a number of resources to promote the state as a destination for retirement living.

Tennessee offers a number of advantages, says Ramay Winchester, Retire Tennessee program director.

A moderate climate, plentiful and quality health care, and a reasonable cost of living are major draws.

“If someone wants water recreation, there is the Tennessee River in West Tennessee, and if they want close proximity to an international airport and a vibrant entertainment scene, there is Middle Tennessee,” she says. “And if they want mountains, they can opt for East Tennessee.”

But pocketbook advantages are a key factor in why people want to move to Tennessee when they retire, she says.

“The main reason is that the state has low property taxes,” she says. “Also, we have low utility bills. I did a trade show in Detroit last winter and asked people what their January utility bills were, and the answers were always $400 to $500. Then I told those folks that my utility bill in January was $150, and I live in a 3,200-square-foot home. They were stunned,

plus I informed them that prices for homes are so much more reasonable in Tennessee compared to Northern states.”

Ten communities spread across the state – Cumberland, Greene, Hamilton, Hardin, Henry, Jefferson, Lincoln, Putnam, Robertson and Sullivan counties – are participating in the Retire Tennessee program, meaning they have met state-established criteria of providing resources and amenities needed to be a viable retirement destination.

Winchester says the key word in the retiree attraction program is affluent.

“We aren’t after the second-home buyer, because second-home buyers notoriously leave their bank account where their first home is,” she says. “Tennessee wants these people to pull up roots, move here, contribute to the tax base and be an active part of the community where they choose to live.”

Beth Alexander, president of the CrossvilleCumberland County Chamber of Commerce, says she is pleased that Cumberland County is part of the Retire Tennessee program because it helps local communities thrive.

“Affluent retirees obviously buy homes and shop locally where they live, and they also like to volunteer with a number of causes, which is something you can’t put a price tag on,” Alexander says. “I think communities are shortchanging themselves in the area of economic development if they don’t look at attracting the affluent retirees.”

Retire TN Hardin County (Savannah, Pickwick, Shiloh) www.retirehardincounty.org Henry County (Paris, Paris Landing) www.paristnchamber.com Cumberland County (Crossville) www.crossville-chamber.com Lincoln County (Fayetteville) www.liveinlincolncounty.com Putnam County (Cookeville, Baxter, Algood, Monterey) www.cookevillechamber.com Greene County (Greeneville) www.greenecounty partnership.com/ retirement.aspx Hamilton County (Chattanooga) www.choosechat-tanooga.com/ Jefferson County (Jefferson City & Dandridge) www.jeffersoncounty tennessee.com Sullivan County (Kingsport, Bristol, & Blountville) www.movetonor theasttn.com Robertson County (Springfield) www.robertsonchamber.org

Tennessee offers a range of lifestyle options for retirees, from urban living to on the water.

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The Land of Rivers, Lakes, Mountains and Valleys A Good Place to Live, Work, Shop and Play Located on the Tennessee River Connected to Three Major Interstates (I-24, I-40 and I-75) by a Four-Lane Highway (Hwy. 27) Major Railroad through County Award-Winning Tennessee Airport of the Year, Featuring 5,000’ x 100’ Runway, with Low-Lead Jet Fuel Available Land Available in Dayton and Spring City Industrial Parks

Rhea County A Certified Three-Star Community

Home of: Historic Rhea County Courthouse and Scopes Trial Museum Bryan College, a Major Liberal Arts College Historic Downtown Shopping Districts Dayton is a Tennessee Main Street Community Ad Sponsored by: Volunteer Energy Cooperative

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TENNESSEE ECONOMIC DEVELOPMENT GUIDE

Rhea Economic & Tourism Council, Inc. (423) 775-6171 £äÇÊ > Ê-ÌÀiiÌÊUÊ >ÞÌ ]Ê/ ÊÎÇÎÓ£ www.rheacountyetc.com VOLUNTEER ENERGY C OOPER ATIVE: £nÎx Ê ÜÞ°ÊxnÊ ° P.O. Box 277

iV>ÌÕÀ]Ê/ ÊÎÇÎÓÓ P HONE: (423) 334-1020 FAX: (423) 334-7007

Livability

Giving Main Street a Major Makeover INITIATIVE BOOSTS THE FORTUNES OF TENNESSEE’S HISTORIC DOWNTOWN DISTRICTS

A

Tennessee Department of Economic and Community Development program is giving downtowns throughout the state more curb appeal.

The Tennessee Main Street Program is affiliated with the national network of Main Street programs that operate under the National Trust for Historic Preservation.

The program gives participating communities guidance in developing long-term strategies to assist them in revitalizing their commercial cores and promoting economic development.

Tennessee has 23 certified Main Street communities, which makes them eligible to apply for Innovation Grants from the state.

Through 2007, Main Street Program initiatives in Tennessee communities had created nearly 1,000 jobs, 100 businesses, 213 building rehabilitations, $25.3 million in private investment and $32.3 million in public investment.

The focus is on four main areas:

design, promotion, economic restructuring and organization.

Design includes visual aspects of a downtown, such as historic buildings, cleanliness, streetlights and landscaping. Promotion involves drawing attention to a downtown through such attractions as festivals, heritage reenactments, music and farmers markets.

Economic restructuring refers to

recruiting and retaining downtown businesses, creating residential spaces, making the district user friendly and walkable, and adding technological benefits such as Wi-Fi. Organization means building partnerships among groups and individuals that are interested in downtown revitalization.

Go to www.tnecd.gov for more on Tennessee’s Main Street program.

Tennessee’s Main Street program is helping historic downtowns with improvements such as Wi-Fi access.

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Education

Less Pomp, More Circumstance Tennessee Diploma Project overhauls state’s high school graduation standards

Story by Joe Morris

T

ennessee is overhauling standards for high school graduates, a move to give students sharper skills as they enter the workforce The Tennessee Diploma Project, a part of the national American Diploma Project Network, will require all highschool graduates to complete a specific curriculum designed to better prepare them for college or a career.

It also adds more coursework to the state’s existing

New HS Diploma Requirements Beginning Fall 2009 Math Science English Social Studies Wellness Personal Finance Electives 0

1

2

3

4

Credits

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graduation requirements, especially in math and science.

The overhaul, championed by Gov. Phil Bredesen, included input from state educational entities, business and community groups, and others interested in the state’s educational welfare.

“We have been fortunate to have strong partners in terms of being part of a 34-state network, and also with the business community and others in the coalition,” says Margaret Horn, senior management consultant in the Governor’s Office of State Planning and Policy. “They’ve gotten the message out to their constituents.”

Compared to more than 30 other states in the American Diploma Project network, Tennessee has roared through the process, but it has done so in a deliberate manner and with the near total support of every organization and entity involved, says Dr. Rich Rhoda, executive director of the Tennessee Higher Education Commission.

The initiative provided a foundation for revising high school graduation requirements and bumping up math and science learning, Rhoda says.

When state education officials got into the existing curriculum they found that Tennessee wasn’t that different from other states — which wasn’t a good thing, says Dr. Gary Nixon, executive director of the Tennessee State Board of Education.

“Nobody was doing a very solid job in giving kids the reading, science and math skills they needed, and without those it’s hard to get the technical and post-secondary skills,” Nixon says.

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BRIAN McCORD

Education

New curriculum standards enacted in Tennessee will improve the work-ready skill sets of the state’s high school students.

With new standards and benchmarking systems in place, the next step will be helping schools and teachers develop their curriculum and deliver it.

“That’s going to take a lot of professional development, and we’re working on that,” Nixon says.

The importance of high school graduates having the skill sets in place to either join the workforce or do better in a certificate program, two-year college or four-year degree setting is vital to business, says Ellen Thornton, executive director of the Tennessee Business Roundtable.

Six meetings with 130 CEOs from around the state gave policymakers a clear view of employers’ specific needs for a current and future skilled workforce, Thornton says. “We didn’t find groundbreaking information, but we were able to provide that inventory to the TDP officials. We think we’re on the right track now.”

And other states are learning from Tennessee when it comes to organizing such a massive educational overhaul, notes Sandy Boyd, vice president for strategic communications and outreach for Achieve Inc., the company behind the American Diploma Project.

“This is what businesses look at,” says Boyd. “It sends a huge signal that Tennessee is serious about developing the kind of workforce it needs for the jobs of today and tomorrow.”

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TENNESSEE ECONOMIC DEVELOPMENT GUIDE

Effects of HS Drop Out Rate on State’s Economy

$7.3 billion Lifetime lost earnings of droputs in 2008

$7,000 Extra yearly earnings from a high school diploma

$46.8 million Community college remediation costs and lost earnings if all seniors graduated college-ready

90 percent Tennessee graduation rate goal for 2014 Source: Alliance for Excellent Education

A Formula for Math, Science Achievement TENNESSEE PROGRAM SPURS PARTNERSHIP BETWEEN SCHOOL DISTRICTS, UNIVERSITIES

T

ennessee is sharpening the math and science skills of elementary and high school students by helping teachers sharpen theirs.

The state’s Math and Science Partnership offers grants to higher education institutions to provide research-based professional development for teachers in K-12.

The grants create a three-year relationship between a university and area school systems to enhance math and science instruction.

A $566,000 grant to Tennessee Tech University in Cookeville, for example, will be used to develop additional mathematical teaching knowledge for K-5 teachers in Cumberland, Fentress, Hamilton,

Overton, Pickett, Putnam, Sequatchie, Trousdale, Van Buren, Warren and White counties.

The University of TennesseeMartin received two $250,000 grants, one for a program geared toward high school math for two local school districts, the other for institutes for chemistry and physics in the Jackson-Madison, Union City and Weakley school districts.

“Educators know better than anyone that learning never stops, particularly when it comes to finding the best way to teach students emerging skills,” says Timothy Webb, Tennessee’s education commissioner.

The grants must be used for

programs that include an engineering, math, or science department of an institution of higher education and a high-need school district in the state.

The program has awarded more than $2.2 million in grants for programs involving several universities and school districts around Tennessee.

“A solid foundation in math and science teaches students the problem-solving and analytical skills that are so valuable to success in any career,” says Gov. Phil Bredesen.

“Tennessee is working to ensure its K-12 teachers are equipped with the latest proven strategies for helping students master these critical skills.”

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Health Care

Health

Building Biomedical Muscle Memphis’ momentum bolsters state’s strong research legacy, innovation

Story by Joe Morris Photography by Brian McCord

M

emphis already enjoys a muchdeserved reputation as a hub for medical prosthetic devices and related research, but it’s also growing in stature as a biotech center.

From small start-ups to large-scale investment in facilities and research, the Bluff City is luring scientists from around the globe. And the products coming out of the lab are as varied as the facilities themselves.

A veterinary vaccine that would protect humans from Lyme disease carried by wildlife is being developed

by Biopeptides Corp. arGentis Pharmaceuticals LLC is raising upward of $12 million to bring its dry-eye therapy product and related research through the clinical trial phase.

The company is readying its first two therapies for clinical trials in

preparation for bringing the product to the market. It also has created a pipeline of other eye-related products and research areas, says Tom Davis, president and CEO, who co-founded the company in 2005.

“We are here with the Southern College of Optometry, the only optometry school with a developed scleroderma treatment, and University of Tennessee Health Science Center, which is doing some phenomenal research,” Davis says. “We have a pharmacy school down the street, as well as St. Jude’s Children’s Research Hospital. We are sitting in the nexus of a fairly robust scientific research community, which I didn’t realize when we began the company.”

The $22 million Regional Biocontainment Laboratory is under construction at the UT-Baptist

Scientist David E. Komatsu at work at the InMotion Musculoskeletal Institute, an orthopaedic research laboratory in Memphis

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Research Park, a development that eventually will include 1.2 million to 1.5 million square feet of lab and research space. The UT Health Science Center’s College of Pharmacy building also is under construction.

Some 400,000 square feet of research space will be added to the region over the next two years, with an estimated 1.4 million square feet available by 2017.

The InMotion Musculoskeletal Institute in Memphis is an independent orthopaedic research laboratory that is focused on research, innovation, and entrepreneurship for discoveries to treat musculoskeletal disease and injuries.

Dr. Steven Bares, president and executive director of the Memphis Bioworks Foundation, says the foundation splits its work into four areas: program leadership, developing infrastructure, expanding the workforce and driving entrepreneurship.

In addition to spearheading development of the UT-Baptist Research Park, the foundation also has created the Memphis Academy of Science and Engineering, which prepares high-school students for the bioscience workforce. Among its other endeavors are

Innova, an early-stage investment organization; TECworks, an entrepreneurship development organization focusing on tech entrepreneurship and commercializing; and the AgBioworks initiative, which seeks to apply industrial biotechnology to the region’s crop and forest biomass resources.

Memphis’ growth in biotech enterprise bolsters the health-care business apparatus of Tennessee, a recognized leader in hospital administration, health-care entrepreneurship, research and other innovation.

Like Memphis, Nashville’s health-care industry has a long research legacy aided in part by strong university input and state government programs that bring in new players, says Dr. Ken Holroyd, assistant vice chancellor for research at Vanderbilt University Medical Center, who also serves on the Tennessee Strategic Research Board.

“There have been a lot of interesting things going on across the state in health research,” Holroyd says. “There’s a lot of opportunity for venture capital and angel investors and others interested in working with a top-flight medical research community to come here.”

More Insight UT-Baptist Research Park www.utbaptist researchpark.com The UT-Baptist Research Park will serve as an anchor of the bioscience industry in Memphis. When fully developed, the park will include 1.2 million to 1.5 million square feet of laboratory, research, education and commercial space and generate nearly 5,000 bioscience jobs, 4,000 support positions and a $2 billion annual economic impact. Capital investment into the research park is expected to reach $1.6 billion to $4.3 billion over the next 10 years. Located in the Memphis Medical Center District, the park will include a regional biocontainment laboratory where contagious materials can safely be studied.

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Energy/Technology

Navigation Device Technology partnership provides a road map to innovation

Story by Michaela Jackson

I

n some states, the public and private sectors don’t have much in common beyond their alliteration.

In Tennessee, though, a strong government-industry-academic partnership is one of the driving forces behind technological innovation and future economic growth.

The Tennessee Technology Development Corp., a public-private partnership funded by the Tennessee Department of Economic and Community Development, brings stakeholders from all affiliations around one table to promote the role that technology plays in economic development initiatives.

“Public-private partnerships like

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TTDC offer flexibility and continuity for new development strategies and also provide a direct link to thought leaders in the private sector,” says Eric Cromwell, president and CEO of TTDC. “The ability to have corporate executives, research scientists, entrepreneurs and venture capitalists designing and overseeing new economic development strategies is a powerful advantage for Tennessee.”

TTDC, which has recently been restructured and revitalized, is building momentum, as partners align around a statewide “Competitiveness Agenda” that focuses on innovation and the business climate factors that foster innovation.

$2.5 billion

$120.67

Annual research spending by Tennessee-based organizations

University R&D per-capita spending in Tennessee

TENNESSEE ECONOMIC DEVELOPMENT GUIDE

What’s Onlinee Read more about Tennessee’s tech innovation at tnedg.com.

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Eric Cromwell oversees the Tennessee Technology Development Corp., a public-private partnership. P H O T O B Y B R I A N M c C O R D

A major component of the Competitiveness Agenda is promotion of world-class research institutions that support business innovation, from technology startups to corporate research and development centers.

“With organizations like St. Jude’s Children Research Hospital, the University of Tennessee, Oak Ridge National Laboratory and Vanderbilt University, Tennessee is competitive in research awards,” says Dr. William Evans, CEO of St. Jude and current chairman of TTDC. “A focus of TTDC and our many partner organizations is to convert the extraordinary potential held within these institutions into innovations and businesses with transformative capabilities,” he says.

Tennessee-based organizations are responsible for spending more than $2.5 billion in research each year, and TTDC’s goal is to see more of the intellectual property generated by

“Tennessee has the advantage of evaluating strategies in other states and making informed decisions on what could work best to serve the unique needs of Tennessee.” these research efforts transferred into Tennessee businesses.

The balance between commercializing research and providing state support for entrepreneurship and corporate innovation is a primary focus in Tennessee, not only for TTDC, but for legislative leadership as well.

“Tennessee has the advantage of evaluating strategies in other states and making informed decisions on what could work best to serve the unique needs of Tennessee,” Cromwell

says. “A revitalized TTDC provides the opportunity for statewide alignment around a plan that makes Tennessee more globally competitive, and this is our chance to introduce new strategies with transformational potential.”

With support for the initiative growing, leaders across Tennessee believe TTDC’s work to increase access to capital, deepen the state’s research base and support high-potential entrepreneurs will further move the state from a position of good to great.

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Memphis Area Chamber www.memphischamber.com

Boult Cummings Conners & Berry www.boultcummings.com

Monroe County Economic Development www.monroegovernment.org

Chattanooga Chamber of Commerce www.chattanoogachamber.com

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TENNESSEE ECONOMIC DEVELOPMENT GUIDE

City of Clarksville www.cityofclarksville.com City of Hohenwald www.lewisedc.org City of Lewisburg www.marshallchamber.org Clarksville-Montgomery County Economic Development Council www.clarksville.tn.us Cleveland Bradley Chamber www.clevelandchamber.com Cookeville Area Chamber www.cookevillechamber.com Dyersburg Dyer County Chamber

Oak Ridge National Laboratory www.ornl.gov/partnerships Obion County Joint Economic Development Council www.obioncounty.org/industrial_ opportunities/index.html Peerless Pinnacle Company Pulaski-Giles County Economic Development Commission www.gilescountyedc.com Rhea County Economic & Tourism www.rheacountyetc.com Tellico Reservoir Development Agency www.tellico.com The Roane Alliance www.roanealliance.org

ECONOMIC PROFILE BUSINESS SNAPSHOT

DEMOGRAPHICS 2000 population, 5,689,283 2007 population, 6,156,719

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 an employment overview.

Change, 8.2% Per-capita income (2006), $32,305 Median household income (2007), $42,389

LARGEST CITIES (2007) Memphis, 674,028 Nashville, 590,807 Knoxville, 183,546 Chattanooga, 169,884 Clarksville, 119,284

EMPLOYMENT Total nonagricultural employment (2008), 2,839,500 Government, 423,600, 15% Construction, 140,200, 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'Charleyâ&#x20AC;&#x2122;s Inc., 22,294

TRANSPORTATION 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

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%

EXPORTS BY CATEGORY Transportation Equipment, $4.3 billion, 22.4% Computers & Electronic Product, $2.83 billion, 14.8% Chemical Manufactures, $2.41 billion, 12.7%

Whatâ&#x20AC;&#x2122;s Onlinee For more in-depth demographic, statistical and community information on Tennessee, go to tnedg.com and click on Economic Profile.

Misc. Manufacturing, $1.63 billion, 8.5% All Others, $7.9 billion, 41.5% Total value, $19.1 billion

COMMERCIAL AIRPORTS 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

MONROE COUNTY ECONOMIC DEVELOPMENT

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Ad Index C2 AT&T 2 BLOUNT PARTNERSHIP 56 BLUECROSS BLUESHIELD OF TENNESSEE 7 BOULT CUMMINGS CONNERS & BERRY 10 CHATTANOOGA CHAMBER OF COMMERCE C3 CITY OF BROWNSVILLE & HAYWOOD COUNTY 49 CITY OF CLARKSVILLE

6 COOKEVILLE AREA CHAMBER 10 DYERSBURG DYER COUNTY CHAMBER 48 GALLATIN ECONOMIC DEVELOPMENT AGENCY C4 INNOVATION VALLEY INC. 1 MEMPHIS AREA CHAMBER 63 MONROE COUNTY ECONOMIC DEVELOPMENT 14 NORTHEAST TENNESSEE VALLEY REGIONAL INDUSTRIAL DEVELOPMENT ASSOCIATION

62 CITY OF HOHENWALD 8 CITY OF LEWISBURG

60 OAK RIDGE NATIONAL LABORATORY

14 CLARKSVILLE-MONTGOMERY COUNTY ECONOMIC DEVELOPMENT COUNCIL

40 OBION COUNTY JOINT ECONOMIC DEVELOPMENT COUNCIL

53 CLEVELAND BRADLEY CHAMBER

62 PEERLESS PINNACLE COMPANY

Ad Index, cont’d 8 PULASKI-GILES COUNTY ECONOMIC DEVELOPMENT COMMISSION 48 RHEA COUNTY ECONOMIC & TOURISM 9 TELLICO RESERVOIR DEVELOPMENT AGENCY 64 THE ROANE ALLIANCE

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