NETWORKS Sullivan Partnership 2022 Annual Report

Annual Report 2022

Getting Our Groove Back With people moving about more and more, Northeast Tennessee has opened its doors to the world, and – as one might expect – the world seems to be liking what it sees.

By Bill Sumner, NETWORKS Sullivan Partnership Chairman

As governments, businesses, industry sectors, and citizens of the world determine their respective positions in this brave new post-COVID world (depending on who you ask), there certainly seems to be more movement these days. In last year’s Annual Report, I wrote about the difficulties in performing our work when travel was so restricted. Fortunately, as that has changed over the past year, our team has taken every opportunity to bring companies and site selection firms into Northeast Tennessee as well as get on the road and take our message to them. In other words, it has gotten easier to do what we do as an organization.

So, why does what we do matter? To answer that question, you need to define who “we” are. By “we”, I am referring not only to the NETWORKS Board and Staff but our partners as well. Our success is determined by each other’s success. For example, if we are successful in our work our cities will have an easier time pursuing retail projects. Likewise, by bringing in strong retail amenities such as The Pinnacle in Bristol or the Kingsport Pavilion and our specialty stores throughout our downtowns, our quality of life is more appealing to decision-making industrialists. Similarly, our education and workforce development partners – a major differentiating advantage to our recruitment efforts – get far more support when we are doing well, and the better they do, the more appealing we are to companies. You can easily connect the dots with other assets we have as well, such as Tri-Cities Airport and our many tourist attractions and events. That is our collective “we” and why it matters that we work well together.

Our collective “we” has a great deal to show off here as I am sure most of the readers of this report know. So, we did. We rebooted the region’s signature inbound marketing event, the Northeast Tennessee Red Carpet Tour, adding recently recruited company executives and final-stage prospects to our guest list along with site location consultants. We hosted our peers with the Tennessee Economic Development Council (TEDC) being held at Meadowview Conference Resort and Convention Center. Although Kingsport was the host city – which included an opening night reception at the Kingsport Chamber of Commerce complete with rides on the Kingsport Carousel and drinks courtesy of Bristol-based Tennessee Hills Distillery – nearly 200 ED professionals, elected officials, and partners from as far away as Memphis also spent time in Bristol, experiencing hot laps at Bristol Motor Speedway and learning about our deep roots in the state’s calling card sound at the Birthplace of Country Music Museum.

We were also on the road with the Tennessee Economic Partnership (TEP) and exhibiting with Tri-Cities Airport at the MRO Americas trade show, the premier event in the aviation maintenance, repair, and overhaul industry.

It is of note that our CEO, Clay Walker, sits on the Board of Directors for both TEDC and TEP as we continue to make being a meaningful member of Team Tennessee a big part of our strategies. We owe a great deal to Team Tennessee, particularly the Tennessee Department of Economic and Community Development (TNECD). We just completed excavation work on a 40-acre site with rail accessibility in Partnership Park II thanks in large part to a $1 million grant from TNECD.

Abby Mease, our Workforce Development and Special Projects Coordinator, secured a $50,000 grant through the state’s Three-Star Program to create NeTnConnects.com, a career pathways web portal. This site, a product of recognizing our symbiotic relationship, was launched in mid-December and is already getting a great deal of attention and kudos.

Of course, a constant point of emphasis is industry recruitment and expansion. While it is only one part of what we do at NETWORKS, it is the area that draws the most attention and by which many people gauge our effectiveness. TNECD is an integral partner here as well, whether being the lead provider, stepping up in the recruitment process, or bringing critical incentive solutions to the table (it’s usually and rather than or, by the way). This year was a great rebound from COVID in terms of jobs and investment, with new and expanding companies accounting for 832 jobs and $66 million in investment, highlighted by Tennessee Hills Distillery, Symmco, and Advanced Call Center Technologies (ACT).

In March, the Board and staff met for a strategic planning session, spending the day with Chad Chancellor of Next Move Group, LLC. It was an excellent opportunity to evaluate and adjust what we do, as well as why we do it. We discussed things like land development, workforce issues, solutions, recruitment, and expansion, and expanded into the impact of our work and the work of our partners. We reiterated the importance of regionalism and the need to get it right.

We also reiterated our commitment to professional development. We are proud of our staff and want to give them every opportunity to grow. Congratulations to our Director of Economic Development who passed IEDC’s Certified Economic Developer exam. Not everyone who works in economic development is even eligible to sit for the two-day exam and a small percentage of people who take it pass it, let alone on their first try. This was Michael’s first attempt and he nailed it, so we are very proud of him. It gives us something else in which to take pride. We have more than our share of those positive points and it feels good to be able to tell the world about them.

The Year in Review Near the end of 2021, project activity was trending toward its pre-COVID level which led to several investment and job announcements in 2022. Companies such as Advanced Call Center Technologies (ACT), Tri-City Extrusion, Tennessee Hills Distillery, and Symmco Inc., were in the news this year. These companies will collectively add $66 million of investment and 832 jobs to the region.

Not all projects that invested and created jobs are included in that total. A few projects chose not to publish a news release or hold an event (such as Design 1 Solar Group, which will bring more than 200 jobs to Bristol, and HSN, which has exceeded its forecast hires of its previous expansion, in Piney Flats, by some 150). Additionally, Tri-Cities Airport announced Final Forge will locate its military headgear company to Aerospace Park, creating about a dozen jobs.

Plenty of advancements were made in land and workforce development as well as marketing and our role within Team Tennessee. Here’s a look at how 2022 went…

The Year in Review

JANUARY & FEBRUARY

A Chronological Look at 2022

BTES Teacher Industry Day

Jerry Caldwell named President of Bristol Motor Speedway

MARCH & APRIL

Northeast State Aviation earns FAA Certification

Governor Lee joins as TCAT opens Kingsport Campus

NETWORKS continues partnership with Tri-Cities Airport at MRO Americas Show

Michael Parker Earns IEDC Certified Economic Developer Status on First Attempt

NETWORKS, Partners Look to Military for Workforce Answers

Veterans Advantage: mission accomplished NETWORKS proud to be among the sponsors

Clay Walker, along with partners and industry visits Fort Campbell Hire a Hero Event

The Year in Review

Tennessee workforce official rides more than 630 miles to promote veteran employment opportunities

MAY & JUNE ACT Announces Two Projects – Kingsport and Bristol – To Bring 650 Jobs Governor Lee, Commissioner Rolfe Announce Advanced Call Center Technologies

Cardinal Glass holds flag dedication

NETWORKS joins sponsors at regional 'Call to Action' Diversity Equity & Inclusion Summit

GSM Filtration celebrates 10th anniversary

The Year in Review

Tri-City Extrusion set for $30.8 million expansion in Bristol Governor Lee, Commissioner Rolfe Announce Tri-City Extrusion Expansion

JULY & AUGUST NETWORKS joins partners for E2E Summit E2E Summit Returns under FTDD Leadership E2E is a convening of employers, k-12 and post-secondary educators, and elected officials, designed to address workforce challenges and pursue opportunities.

Welcome back home Dr. Jeff McCord “I’m excited to come alongside the hundreds of individuals who work at the College, who love the College, and who want the very best for the students and communities in which they live,” McCord said after the board’s vote.

“Northeast Tennessee is a special place with enormous opportunity. And Northeast State is central to helping our region realize its potential.”

Symmco to invest $13.1 million, creating 86 new jobs Governor Lee, Commissioner McWhorter Announce Symmco Inc. to Locate in Hawkins County

Video Recap

The Year in Review

Tennessee Hills Distillery invests $21.3 million in New Bristol Headquarters Governor Lee, Commissioner McWhorter Announce Tennessee Hills Distillery to Expand Operations in Sullivan County

Video recap

SEPTEMBER & OCTOBER

TNECD Commissioner Stuart McWhorter visits the region

Dr. Bo Shadden named CTE Administrator of the year

Clayton Dowell Named CEO of BTES

TDOT Commissioner Butch Eley meets Northeast TN Leaders

The Year in Review

Friendship Career Center Opens

Sullivan County Selected for TNECD Property Evaluation Program

Governor's Conference for Economic Development back and bigger Than Ever

Readers Digest Lists Kingsport Carousel as One of the Nicest Places in America

PEP evaluates potential industrial properties, advising counties on industrial site improvements and where investments may be most beneficial. Since its inception in 2015, PEP has helped improve the inventory of industrial sites and buildings across the state, with more than 380 sites being reviewed.

“Having an inventory of shovel-ready industrial sites is a crucial part in recruiting and successfully landing economic development projects,” TNECD Commissioner Stuart McWhorter said.

Sullivan County Hosts TEDC Annual Fall Conference

The Year in Review Northeast Tennessee Red Carpet Tour Back After COVID-forced Hiatus

NOVEMBER & DECEMBER

Career Pathways Portal Launched NETWORKS Launches Career Pathways Web Portal TNECD Grant Creates Opportunity for Unique Workforce Asset

Dr. Michael Browder retires as CEO of BTES

Northeast State Community College's Richard Blevins Elected to Tennessee Aviation Hall of Fame

PARTNERSHIP PARK II NETWORKS Sullivan Partnership recently completed its mass grading project in the Select TN Certified Industrial Park, Partnership Park II. The newly created, 50-acre, pad-ready rail accessible site is the result of more than $4 million investment, with the Tennessee Department of Economic and Community Development contributing $1,000,000 through its Site Development Grant Program. NETWORKS was the first organization to receive a High Impact Award through the SDG program which allowed the state in increase its participation above the normal $500,000 max award for any one project.

The newly created rail accessible site will allow NETWORKS Sullivan Partnership to target industries that otherwise would not be able to potentially locate here due to a lack of suitable sites. Pad-ready industrial sites that offer direct rail access are quite scarce, especially in East Tennessee. With this more recent investment, Sullivan County has positioned itself to be an attractive option for industries seeking a new or additional location to build a facility.

Wages in Sullivan

850+ Jobs Announced

$91,000,000+ Capital Investment

$45,000,000+ New Annual Payroll

County rose 10.1% over the previous 4Q's

2022 by the Numbers

Sullivan County GDP to $8.5B (41% of Northeast TN's entire GDP

$231,000,000 in construction permits issued (62% industrial)

Where Tennessee Begins Its Business Day! NETWORKS Sullivan Partnership is the economic development organization serving the Northeast Tennessee communities in Sullivan – including charter partners Bluff City, Bristol, and Kingsport – and Hawkins counties.

Our team of professionals is ready and able to assist you and your company reach your fullest potential here something

Board of Directors VOTING MEMBERS: Bill Sumner, Bell – Chairman; David Wagner, Bank of Tennessee – Vice Chairman; CeeGee McCord, Eastman – Secretary/Treasurer; Pat Breeding – GRC Construction; Jerry Caldwell – Bristol Motor Speedway; Troy Wilson – Domtar; Erin Downs – BTES Board Chair; Mayor Mahlon Luttrell – Bristol; Lea Powers – Bristol; Mayor Pat Shull – Kingsport; Mark Vance – Sullivan County; Mayor Richard Venable – Sullivan County; Mayor Jeff Broyles – Bluff City EX-OFFICIO MEMBERS: Emily Ball – AEP; Clayton Dowell – BTES; Evelyn Rafalowski – Sullivan County Schools; Jeffrey Dykes – BrightRidge; Chris McCartt – City Manager, Kingsport; Dr. Chris Hampton– Kingsport City Schools; Dr. Sam Rowell – Northeast State Community College; Bill Sorah – City Manager, Bristol; Dr. Annette Tudor – Bristol City Schools; Clay Walker – NETWORKS CEO

Staff

Clay Walker, CEcD - CEO Michael Parker, CEcD - Economic Development Director Abby Mease - Workforce Development & Projects Coordinator Ronnie Price - Economic Development

PO Box 747, Blountville, TN 37617 • networkstn.com • NETWORKS Sullivan Partnership Annual Report 2022