Tennessee Department of Economic and Community Development 2012 Report
Building On SuccessTENNESSEE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT
table of contentsLETTER FROM THE COMMISSIONERJOB MOMENTUMTOP PROJECTSEXPANDED TOOLKITRURAL FOCUSOPEN ECDMARKETING MILESTONESRAVE REVIEWSNEXT STEPS2012 BY THE NUMBERSEMBRACING INNOVATIONRegional OutreachSelect TennesseeCreative Community SummitsProductive PartnershipsThreeStarReturn on InvestmentTENNESSEE SPOTLIGHT“Nashville” DramaOn LocationFilm Incentive RebootMaking MusicGLOBAL REACHTennessee TradeForeign InvestmentJourney to Japan23567121516182019ECDMISSIONTo make Tennesseethe #1 locationin the Southeastfor high quality jobs
Dear Friends and Partners,As I reflect on 2012, I am truly proud of what theTennessee Department of Economic and CommunityDevelopment has accomplished. We have worked hardto further Gov. Bill Haslam’s goal of making our statethe No. 1 location in the Southeast for high quality jobs.And if our record-breaking results are any indication, itlooks like we are well on our way to achieving this mis-sion.A new course for economic development was charted in2011 with the advent of the Jobs4TN plan. The Gov-ernor’s strategies of prioritizing incumbent businesses,focusing on strategic clusters, establishing a regionalstructure, investing in innovation and reducing busi-ness regulation proved right on target to attract jobs andinvestment to Tennessee.As a result, ECD saw record job creation from projectslanded by our recruitment staff for a second year in a row.A total of 20,061 new jobs were committed from ECD projects alone in 2012. This represents aremarkable 10.4 percent increase from 2011 projects against a continued backdrop of worldwideeconomic uncertainty.Overall, more than 50,700 net new jobs were created in the state last year. In the manufacturingsector alone, we were first in the Southeast for net new manufacturing jobs created and fourthin the U.S. These rankings further solidify Tennessee’s reputation as a center for manufacturingexcellence and are a true indicator of the topnotch workforce that is available.However, record job creation is only part of the story. This past year also brought many newinitiatives and programs to life. The FastTrack Economic Development Fund was established.Tennessee companies found global marketplaces through increased trade efforts. A partnershipwith Launch Tennessee ushered in a new era of innovation. Rural issues were addressed througha series of meetings and roundtables, special events, new programs, and a reworked and simpli-fied ThreeStar program.Although much has been accomplished, our work is far from complete. With the help of ourpartners in state government and in local communities, we can continue to cultivate a business-friendly environment that gives companies the confidence to invest in Tennessee and its greatcitizens. This past year was only the beginning. Look for more great things to come in 2013.Sincerely,William (Bill) F. Hagerty, IVCommissioner
Job MomentumTennessee saw unprecedented suc-cess in job creation over the pastyear. A record-breaking 20,061 newjobs were committed from ECD proj-ects alone in 2012, a sure sign of thestate’s healthier, and now growing,economy. By year’s end Tennessee’sunemployment rate had also fallenbelow the national average and wasthe lowest in four years.After a departmental reorganizationin 2011, a new regional structure wasimplemented, resulting in more staffthan ever before dedicated to busi-ness recruitment. The ECD team isin direct, day-to-day contact with bothincumbent and out-of-state compa-nies to market Tennessee, answerquestions, address concerns andfacilitate partnerships.In making important expansion orlocation decisions, companies mostoften noted Tennessee’s business-friendly climate, central location,strong infrastructure and quality work-force as deciding factors.Jobs Created from ECD ProjectsInvestment Generated from ECD Projects3ECD Projects Landed
4JOB MOMENTUM continuedTennessee once again saw the majorityof its job creation come from existingindustry expansions and domestically-owned projects. ECD has given a spe-cial focus to assisting the state’s currentindustries and helping them furthergrow and expand.Rural areas had a slight edge on thenumber of projects landed in 2012 overurban projects. Urban counties weredefined as those with a populationgreater than 75,000 and a higher den-sity of urban development and includedthe counties of Anderson, Blount, Brad-ley, Davidson, Hamilton, Knox, Madi-son, Maury, Montgomery, Rutherford,Shelby, Sullivan, Sumner, Washington,Williamson and Wilson.Return on InvestmentECD continued to use taxpayer incen-tives wisely when landing projects in2012. The average cost of incentivesper job has been lowered from $5,586in 2002-2010 to an average of $3,104per job during the Haslam administra-
TOP PROJECTS“Our investment increating hundredsof new jobs dem-onstrates Nissan’slong-time commitmentto our employees,Smyrna, and the stateof Tennessee. The dedicated workforce inTennessee continues to build high-qualityvehicles that compete and win globally,and we’re committed to ensuring thisdoesn’t change.”- Bill Krueger, Vice Chairman, Nissan Americas“We appreciate that our state and localleadership have a strong commitment tomaintaining a business climate that fostersgrowth and encourages investment. Welook forward to our continued growth inTennessee.”- Richard M. Bracken, Chairman and CEO,HCA“Middle Tennes-see is a great fit forour new facility andwas selected forits central location,attractive real estateand operating costs,and very capableworkforce. We aremost appreciative ofGovernor Haslam and the various stateand local leaders that worked together sodiligently to make this possible.”- Steve Sadove, Chairman and CEO, Saks“MacLean Power Systems is excited tolocate our operations in Trenton. We arelooking forward to growing our businessand creating opportunities here in WestTennessee. The availability of ready andsuitable facilities and a friendly businessclimate were critical to our decision.”- Barry L. MacLean, President and CEO,MacLean-Fogg5CompanyNissanNorthAmerica,Inc.VolkswagenofAmerica,ChattanoogaOperations,LLCParallonBusinessSolutions,LLCMagnetiMarelliSuspensionUSA,LLCAgeroU.S.SolutionsGroup,Inc.AccessAmericaTransportLa-Z-BoyCompanyTeam3LogisticsTRGCustomerSolutionsSaks,Inc.GreenMountainCoffeeRoasters,Inc.ObertoBrandsTitanTireAegisSciencesCorporationADTNike,Inc.MacLeanPowerSystemsHeilTrailerInternationalR&RTruckingCitySmyrnaChattanoogaFranklinPulaskiClarksvilleBristolChattanoogaDaytonChattanoogaSpringHillLaVergneKnoxvilleNashvilleUnionCityNashvilleKnoxvilleMemphisTrentonAthensMilanCountyRutherfordHamiltonDavidsonGilesMontgomerySullivanHamiltonRheaHamiltonMauryRutherfordKnoxDavidsonObionDavidsonKnoxShelbyGibsonMcMinnGibsonJobs2,2001,000800800549548450436425332313312310300271271250250230213Investment$ 325,000,000$ - $ 87,600,000$ 53,700,000$ 8,200,000$ 4,156,364$ 3,222,000$ 2,443,000$ 993,000$ -$ 13,000,000$ 5,130,000$ 28,700,000$ 9,000,000$ 20,433,000$ 1,790,000$ 276,000,000$ 12,000,000$ 3,500,000$ 9,300,000
6EXPANDED TOOLKITTennessee’s business recruitment arse-nal gained a powerful new tool in 2012.ECD’s FastTrack job training and infra-structure grant program was expandedto create the new FastTrack EconomicDevelopment Fund. By making reim-bursable grants to local industrial devel-opment boards, the fund aids projectsin a variety of ways, including relocationexpenses, temporary office space, capi-tal improvements, retrofitting and otherexpenditures not previously covered bythe FastTrack grants.Gov. Haslam proposed legislation forthe fund as a result of a 12-month re-view of ECD’s incentive programs withinput from companies, site selectionconsultants and economic developmentstakeholders. The fund was designedto support economic development inrural areas and for exceptional projectswhere the company’s impact on a givencommunity is significant.“A more flexible FastTrackgrant program will be extremelyhelpful to local governments,chambers of commerce and eco-nomic development profession-als around the state as we worktogether to encourage existingindustry expansions and recruitnew companies to Tennessee.”- ECD Commissioner Bill HagertyGov. Bill Haslam signed legislation in May 2012expanding the state’s FastTrack program to includea new Economic Development Fund.
RURAL FOCUSDeveloping a distinctive strategy forTennessee’s rural areas is critical tomaintaining competitiveness and grow-ing the rural economy. ECD traveledthe state, hosted events, initiated newprograms, and formed solid partner-ships last year, all with the goal ofencouraging economic development inrural Tennessee.Regional OutreachEven with a much leaner staff, ECDhas more eyes and ears on the groundthan ever before to assist with ruraland economic development. ECD’snine regional directors and their teamsvisited 4,404 existing industries, had3,219 stakeholder meetings and made837 presentations to community andbusiness groups in 2012 alone. On anygiven day, regional staff could be foundin their communities visiting companies,conducting site visits, encouragingentrepreneurship, listening to constitu-ents’ ideas and concerns, or speakingto local organizations.7GREATER MEMPHISNORTHERN MIDDLESOUTHEASTNORTHWESTSOUTHERN MIDDLEEASTSOUTHWESTUPPER CUMBERLANDNORTHEASTNike, Inc., Memphis250 jobs$276,000,000 investmentTrane, Memphis146 jobs$15,000,000 investmentUnited BiosourceCorporation, Cordova70 jobsNissan North America, Inc.,Smyrna2,200 jobs$325,000,000 investmentParallon Business Solutions,LLC, Nashville800 jobs$87,600,000 investmentAgero, Clarksville549 jobs$8,200,000 investmentVolkswagenofAmerica,ChattanoogaOperations,LLC,Chattanooga1,000 jobsAccess America Transport,Chattanooga450 jobs$3,222,000 investmentLa-Z-Boy Company, Dayton436 jobs$2,443,000 investmentGreenMountainCoffeeRoasters,Inc.,Knoxville312jobs$5,130,000investmentADT,Knoxville271jobs$1,790,000investmentOldDominionFreightLine,WhitePine210jobs$10,000,000investmentU.S.SolutionsGroup,Inc.,Bristol548jobs$4,156,364investmentCenturyLink,JohnsonCity152jobs$769,163investmentAngusIndustries,Inc.,Greeneville150jobs$3,450,000investmentMagneti Marelli SuspensionUSA, LLC, Pulaski800 jobs$53,700,000 investmentTRG Customer Solutions,Spring Hill332 jobsMagneti Marelli SuspensionUSA, LLC, Pulaski133 jobs$3,299,600 investmentFoutch Industries, LLC,Smithville60 jobs$500,000 investmentPutnam County PlasticMolding, Inc., Cookeville51 jobs$1,765,000 investmentStonePeak Ceramic, Inc.,Crossville50 jobs$15,000,000 investmentTitan Tire, Union City300 jobs$9,000,000 investmentMacLean Power Systems,Trenton250 jobs$12,000,000 investmentR & R Trucking, Milan213 jobs$9,300,000 investmentLeroy Somer North America,Lexington110 jobs$8,800,000 investmentArmstrong Hardwood FloorCompany, Jackson95 jobs$10,000,000 investmentTennesseeTBDNCompany,Jackson68 jobs$26,000,000 investmentTop Projects by Region
RURAL FOCUS continuedSelect TennesseeECD launched Select Tennessee Certi-fied Sites, a new statewide site certi-fication program to help communitiesprepare locations for investment andexpansion. The program sets consis-tent and rigorous standards companiescan rely on when making critical loca-tion decisions. Businesses know thata well-prepared site alleviates risk andsaves money, making certified sites amore attractive choice.Tennesseecommunitiesparticipating inthe program willbetter under-stand the globalcompetitive environment for their sitesand be able to identify targets for mod-ernization. Through a partnership withAustin Consulting and The Foote Con-sulting Group, a total of 55 applicationswere received in the first and secondrounds and are being evaluated.8“In our day-to-day work withsite selection consultants andcorporate officials, we hear overand over again the importanceof demonstrating our readinessfor new business investment andexpansion. The Select TennesseeCertified Sites Program providesa roadmap to ready sites forpotential investment. This pro-gram is an innovative new wayto take Tennessee to the apexof site locations and show theworld that Tennessee is readyfor business.”- ECD Commissioner Bill Hagerty
Jon Schallert spoke to Creative CommunitySummit attendees in Franklin, Tenn. Schallertis an internationally-recognized speaker andbusiness expert specializing in teaching busi-nesses and communities how to turn them-selves into Consumer Destinations.RURAL FOCUS continuedCreative Community SummitsThe Tennessee Main Street and Ten-nessee Downtowns programs held aseries of Creative Community Summitsin Jackson, Franklin and Greenevillelast fall focusing on innovative strate-gies to generate economic growth inrural communities.The day-long summits consisted ofinteractive presentations, educationalsessions, networking opportunities andaccess to resources across the state.Topics included “Growing DestinationBusinesses” with nationally recognizedspeaker Jon Schallert and “CultivatingLocal Heritage Tourism, Arts, Cultureand Agriculture to Jump Start a RuralEconomy” presented by the NationalTrust Main Street Center Senior Pro-gram Officers Kathy LaPlante andNorma Ramirez de Miess.Sponsored by ECD and USDA RuralDevelopment, the summits were free ofcharge for participants.9“The Creative CommunitySummits are a direct responseto needs identified during ourrecent rural development round-tables held across the state.By leveraging the natural assetsof our rural communities andhelping prepare our rural areasfor competing in today’s globaleconomy, we will lay the groundwork for future economicgrowth.”- ECD Commissioner Bill Hagerty
RURAL FOCUS continuedProductive PartnershipsECD regularly partnered with fellow stateagencies, including the Department ofAgriculture and the Department of TouristDevelopment, to address the unique chal-lenges and opportunities Tennessee’s ruralcommunities face.Rural meetings were held in each of ECD’snine jobs base camp regions throughoutMarch, April and May. Agriculture and Tour-ist Development attended and participatedin each of these conversations to gatherinformation and hear comments from localstakeholders on rural economic concerns.More than 400 local mayors, economicdevelopment executives, chamber ofcommerce officials and other local leadersattended.Partnering again with the Department ofAgriculture, three Rural Opportunity Round-tables convened in Waynesboro, Bolivarand Milan last year. Each meeting focusedon ways to leverage the surrounding area’sunique agriculture or forestry resourcesto enhance and grow the local economy.More than 250 participants including theU.S. Department of Agriculture, the Univer-sity of Tennessee Extension, local farmersand area economic development officialsparticipated.ECD also hosted three interdepartmentalmeetings with the senior staffs of Agri-culture, Tourist Development, Labor andWorkforce Development, Environment andConservation, and Transportation to discussrural issues. Some of the many topics ofconversation included:• Goals and work programs of each department;• TVA research for food processing and beveragerecruitment;• USDA Rural Development grant opportunities;• Use of the Tennessee Trails system to promotetourist development in rural areas;• How Tennessee Main Street and TennesseeDowntowns programs are used to enhance tour-ism, agriculture and small business development;• Ways to expand the seamless communicationand coordination between departments and howto pool resources in solving rural issues.10
RURAL FOCUS continuedThreeStarECD’s long-running ThreeStar program gota new look and feel last year. After a seriesof statewide listening sessions attended bymore than 400 stakeholders, a revised andsimplified plan was developed.ThreeStar is now based on the MOREguiding principle:MeasurableECD will annually score communities basedon progress related to the Governor’s topfive priorities – jobs and economic develop-ment; fiscal strength and efficient govern-ment; public safety; education and work-force development; and health and welfare.Outcome OrientedCounties can receive new grant fundsto help with improvements related to theGovernor’s focus areas. Up to $15,000 willbe available to Tier 3 counties and up to$7,500 for Tier 2 counties.Reward ResultsState matching dollars are available for alltiers and tied to measurable improvement inthe Governor’s focus areas. A higher statematch will be provided to counties achiev-ing improvement across all five focus areas.EfficientThe paperwork burden and program com-plexity have been dramatically reduced.In the end it’s all about results. Countiesdon’t compete with one another in the newThreeStar system but only with themselvesto better their communities and boost theirlong term competitiveness in a globaleconomy.11Expected average dollars per county over next two years based onpast incentive award rates and future new grant monies.• In total, only 26 counties received state dollar benefits from theThreeStar program over the 2 year period studied• Approximately 35 percent of Tier 2 and Tier 3 Counties receivedincentive dollars• Only 18 percent of Tier 3 counties received incentive dollarsState Dollars Spent for ThreeStar IncentivesTwo-Year Program Budget
TENNESSEE SPOTLIGHTFrom the small screen to the big screento iTunes, Tennessee made its mark onthe entertainment industry in 2012. ECD’sTennessee Film, Entertainment and MusicCommission (TFEMC) was on hand everystep of the way by supporting entertainmentcompanies and facilitating new productions.“Nashville” DramaMusic City became the backdrop for ABC’scritically acclaimed “Nashville,” filmedentirely on location in Tennessee. Afteran October premiere, the hour-long dramastruck the right chord with audiences,prompting the alphabet network to order afull 22-episode season. The year endedwith the announcement of Golden Globenominations for its two stars, Connie Britton(“Friday Night Lights,” “American HorrorStory”) and Hayden Panettiere (“Heroes”).ECD approved a $7.5 million reimbursablegrant for “Nashville” based on a total firstseason projected spend of $44 million inqualified Tennessee production expendi-tures, which include those for goods or ser-vices purchased from a Tennessee vendoror paid to a Tennessee resident.In a unique confluence of film and music,“Nashville” released its first soundtrack inDecember on Music City’s Big MachineRecords. The album reached No. 1 onBillboard’s Soundtracks chart and No. 3 onthe Top Country Albums chart.12“Nashville” chronicles the day to daystruggles and triumphs of Rayna James(Britton), a legend in the country musicindustry, whose husband, played by EricClose (“Chaos,” “Without a Trace”), iscampaigning for mayor of Music City.James frequently crosses paths and findsherself at odds with the young up-and-coming star Juliette Barnes (Panettiere).“Nashville” was created by AcademyAward winner Callie Khouri and is a Lions-gate, ABC Studios and Gaylord Entertain-ment production. The show airs Wednes-days at 10 p.m. EST on ABC.
TENNESSEE SPOTLIGHT continuedOn Location“Nashville” wasn’t the only high-profile proj-ect visiting the state in 2012. In total, theTFEMC assisted more than 87 productions,resulting in 1,038 production days and morethan $39 million in Tennessee expenditures.Chattanooga welcomed the production of“42,” a feature film based on the story ofbaseball great Jackie Robinson that waswritten and directed by Academy Awardwinner Brian Helgeland. Chadwick Bose-man stars as Robinson, the heroic AfricanAmerican who was the first man to breakthe color line in the big leagues and whoseuniform number is the only one to be retiredby Major League Baseball. Harrison Fordalso stars as Dodgers General ManagerBranch Rickey, the MLB executive whofirst signed Robinson to the minors in 1945before bringing him up to the majors twoyears later.The movie filmed scenes at the historic En-gel Stadium, which doubled as Brooklyn’siconic Ebbets Field, and other locations inChattanooga. The production spent an es-timated $5 million in Tennessee and helpedrestore and rebuild Engel Stadium. “42” isslated for release on April 12, 2013, coin-ciding with the 66th anniversary of JackieRobinson Day and on the heels of MLB’s2013 opening season.“The Identical” starring Ray Liotta, SethGreen and Ashley Judd filmed entirely inNashville and spent approximately $8 mil-lion in the state. The movie was producedby Tennessee production company City ofPeace, written by local writer Howie Klaus-ner and directed by local director DustinMarcellino.Other notable film projects last year includ-ed “Guilt Trip,” partially filmed in Memphisand starring Seth Rogan and Barbara Strei-sand, and “Inspiration Pop 2929,” an inde-pendent feature filmed entirely in WayneCounty and produced by the Tennessee-based company For Our Father Films.13Commissioner Hagerty meetsChadwick Boseman during thefilming of “42.”
TENNESSEE SPOTLIGHT continuedFilm Incentive RebootTennessee’s film incentive program wentthrough a major overhaul in 2012 to providea complete one-stop-shop for film incen-tives and to target and include smallerproductions in the state.The new program incentivizes projects withbudgets over $200,000 for grants equal to25 percent of in-state expenses, a changefrom the previous threshold of $1 million. Inaddition to lowering the dollar threshold, therevised program includes recurring fundingfor the program. These changes were madewith the goal of incentivizing more filmsby Tennessee companies and attractingindependent filmmakers by streamlining theincentive delivery process.Making MusicFrom rock to soul to country to gospel,Tennessee music is world famous and bigbusiness. The TFEMC has refocused andexpanded its mission to include the state’slucrative music industry.Music industry outreach and initia-tives in 2012 included:• Recruiting entertainment companies to locateand expand in Tennessee.• Hosting a reception for key music industrystakeholders before December’s GRAMMYNominations Concert in Nashville.• Honoring songwriters who won major awardsin the past year.• Direct acknowledgement from Gov. BillHaslam to every songwriter achieving a No. 1hit.• Engaging Tennessee musicians to perform atstate events, including RCA Recording art-ist Chris Young at the Capitol Tree LightingCeremony.• Sponsoring activities at the Bonnaroo Musicand Arts Festival in Manchester.• Hosting a CMA Awards pre-telecast receptionfor the Board of Directors and other VIPs.14“The Identical,” starring Ray Liotta, SethGreen and Ashley Judd, films a scene atNashville’s War Memorial Auditorium.
EMBRACING INNOVATIONIn today’s global competition for jobs andinvestment, the states embracing andnurturing innovation initiatives will be theones that prevail. That’s why ECD remainsfocused on raising Tennessee’s profile ininnovation-based economic developmentand driving growth in the creation of knowl-edge-based jobs.A major step forward in ECD’s innovationefforts was made in 2012 with the forma-tion of Launch Tennessee, a public-privatepartnership focused on supporting thedevelopment of high-growth companies inTennessee with the ultimate goal of foster-ing job creation and economic growth.15“Launch Tennessee will help setTennessee apart as a state whereentrepreneurship and innovationare valued as key economicdevelopment tools in our effort tomake our state even more businessfriendly.”- Governor Bill HaslamLaunch Tennessee is Focusedon Four Key Areas:EntrepreneurshipIncluding the oversight of nine regionalbusiness accelerators across the state.The accelerators have screened nearly 700companies, raised more than $17 millionin private sector capital and engaged over500 mentors.CommercializationIncluding the creation of new programs toaid businesses with the development ofbusiness plans and management teamscentered on emerging technologies fromresearch institutions. Launch Tennesseehas implemented Small Business Innova-tion Research and Small Business Tech-nology Transfer support programs for earlystage companies across the state and iscurrently finalizing a new commercializa-tion strategy for 2013.CapitalIncluding oversight of the state’s INCITECo-investment Fund, which has investednearly $7.1 million in 18 Tennessee-basedcompanies that directly resulted in follow-on investments of $18.6 million. LaunchTennessee is also in the process of imple-menting additional strategies for in-stateand out-of-state capital recruitment.OutreachIncluding hosting sector-specific eventsthat bring together entrepreneurs, men-tors, researchers and investors. LaunchTennessee has begun both in-state andout-of-state outreach strategies that includean aggressive communications plan,sponsoring existing innovation-focusedevents across the state and positioningthe organization’s annual conference as atop entrepreneur and investor event in theSoutheast.
GLOBAL REACHTN TradeECD reignited the state’s international tradeefforts last year with a renewed commit-ment to help Tennessee companies findnew marketplaces and revenue streamsaround the globe. Thanks to a U.S. SmallBusiness Administration State Trade andExport Program grant, two trade missionsbrought Tennessee sellers together withinterested buyers in foreign lands.China and South Korea were the destina-tions for 11 Tennessee medical devicemanufacturers and health care companiesin April. The group made stops in Beijingand Seoul and attended business match-making meetings arranged by the U.S.Commercial Service. Also on the itinerarywas a visit to Shenzhen, China and theInternational Medical Equipment Fair, thelargest exhibition of medical equipment andrelated products and services in the Asia-Pacific region.Tennessee’s automotive sector was thefocus of a second trade mission in July toMexico City, Mexico. Seven auto suppli-ers and manufacturers met with potentialcustomers and partners through businessmatchmaking meetings. The group alsoattended PAACE Automechanika, the larg-est and most prominent international tradeshow for the automotive industry in Mexicoand Central America.ECD’s efforts to boost exports of Tennes-see goods and services don’t end withtrade missions. State-led trade offices areplanned for Mexico, the United Kingdom,Germany and China to help companiesenter new markets, answer questions andmake valuable connections.16Anderson FlapsBPS EngineeringColonial Diversified Polymer ProductseSpin TechnologiesGlobal Industrial ComponentsGayle TechnologiesQuality FiltrationTennessee Companies Participatingin 2012 Trade MissionsChina and South Korea MEXICOABT Molecular ImagingChristie Medical HoldingsDream SystemseSpin TechnologiesFillauerGryphus DiagnosticsHollywogiScreen VisionSilicone Arts LaboratoriesStinger MedicalVenX Medical
Gov. Bill Haslam met with Japanese officialsduring his visit to the SEUS meeting in Tokyo.GLOBAL REACH continuedForeign InvestmentTennessee is home to 834 foreign-ownedcompanies, investing $24 billion and em-ploying almost 110,000 Tennesseans. Theeffects of these investments are felt state-wide, and some of the largest announce-ments last year came from Japanese-owned Nissan, German-owned Volkswagenand Italian-owned Magneti Marelli.In an effort to continue the recruitment offoreign investment to Tennessee, invest-ment promotion offices were established in2012 through a competitive bid process inJapan, Canada and Germany. An addition-al investment office in the United Kingdomwill be added in early 2013.Journey to JapanIn September Gov. Bill Haslam led a del-egation of Tennessee officials and businessleaders to the 35th Annual Joint Meeting ofthe Southeast U.S.-Japan and Japan-U.S.Southeast associations in Tokyo. This an-nual event promotes trade, investment, un-derstanding and friendship between Japanand the seven southeast member states.While there, the Governor and ECD hostedthe Tennessee Existing Industry Luncheonfor officials of Japanese companies operat-ing in the state. Japan is Tennessee’s larg-est foreign investor nation, investing $15billion in our state’s economy and employ-ing almost 39,000 Tennesseans.17
OPEN ECDOne of Gov. Haslam’s priorities in movingTennessee forward is creating and main-taining a customer-focused, efficient andeffective state government. ECD takes thischarge very seriously, and in June launcheda new transparency website – OpenECD.tn.gov. It is designed to be user-friendly anda place where citizens can easily accesspublic documents pertaining to ECD grantsand incentives.Information is available on ECD’s FastTrackgrant program, Community DevelopmentBlock Grants, TNInvestco investments andfrequently asked question on tax incentives.OpenECD is updated quarterly and the pub-lic can sign up to receive email alerts whennew information has been updated or added.MARKETING MILESTONESSelling Tennessee to prospects around theworld took a fresh approach in 2012 byintroducing several new tools and initiatives,including:• A series of industry-specific fact sheets werecreated detailing the state’s key attributes andother helpful information.• Auto supplier directories and foreigninvestment guides were compiled.• A quarterly e-newsletter was designedspecifically for site selectors.• MemphisMegasite.com was redesignedand launched with location specifics,transportation information, labor data,maps and more.• National ads were placed in leading economicdevelopment trade magazines including SiteSelection, Chief Executive, Business Facilitiesand Area Development.• Business recruitment staff representedTennessee at a variety of trade shows andconferences including the Site Selectors Guild,the Jones Lange LaSalle Academy, HannoverMesse, Industrial Asset Management CouncilProfessional Forum, CoreNet Global Summit,Southern Economic Development CouncilAnnual Conference, Center for AutomotiveResearch Management Briefing Seminars andthe Southern Automotive Conference.• ECD ramped up its social media outreach,particularly on Facebook and Twitter, wherethere were 114 percent and 135 percentincreases in likes and followers respectively.18
Gov. Bill Haslam poses withthe Gold Shovel Award givento Tennessee for its successin job creation and economicimpact in 2012.RAVE REVIEWSNational publications took notice ofTennessee’s business-friendly climate in2012. The Volunteer State was consistentlyranked among the best places in the U.S.for companies to locate and expand.8th Best Business ClimateSite Selection, November 20127th Best State for Doing BusinessArea Development, October 20121st for Overall Infrastructureand Global AccessArea Development, October 20121st for Distribution/Logistics Hub AccessArea Development, October 20123rd Best Run StateBarron’s, August 20121st for AutomotiveManufacturing StrengthBusiness Facilities, July 20124th for Emerging Data Center HubsBusiness Facilities, July 20125th Best Transportation InfrastructureBusiness Facilities, July 20128th for Economic Growth PotentialBusiness Facilities, July 20128th Best Business ClimateBusiness Facilities, July 20129th for Job Growth LeadersBusiness Facilities, July 201210th Best Education ClimateBusiness Facilities, July 20122012 Gold Shovel Award WinnerFor success in job creation andeconomic impactArea Development, June 20124th Best State for BusinessChief Executive, May 201219
NEXT STEPSIf the successes of the past two years areany indication, it looks like 2013 is shapingup to be another exceptional year for ECD.Many of the initiatives started in 2012 willhit their stride and continue to grow, whilenew programs are in the works.Look for the Select Tennessee CertifiedSites to be announced, along with a newmarketing campaign and website aimed atsite selectors, consultants and other com-pany decision makers.The doors to foreign markets will beopened wide for Tennessee businesseswith a new training program and trade of-fices around the world.Innovation will once again play a centralrole in the state’s efforts to encourage en-trepreneurship, research and development,and in-state commercialization.Grants will be more readily available toTennessee’s rural communities through thestate’s revamped ThreeStar program.In short, ECD will continue to devoteits time and resources to achieve Gov.Haslam’s goal of becoming the No. 1 statein the Southeast for high quality jobs.2020,061Jobs Createdfrom ECD Projects193ECD Projects Landed837Number of Communityand Business Presentations9Rural MeetingsMore Than 400 Attending9Accelerators700 Companies Screened$17 Million Raised500 Mentors Engaged50,700Net New Jobs Added inTennessee3,219Stakeholder Meetings$31 BillionValue of Tennessee Exports$3.1 BillionInvestment Generatedfrom ECD Projects4,404Existing Company Visits79%Existing Industry Expansions3Rural OpportunityRoundtablesMore Than 250 ParticipatingINCITE Co-Investment Fund$7.1 MillionInvested18 Companies$18.6 Million in Follow-OnCapital52%Projects located inPredominantly Rural Counties9ThreeStar Listening SessionsMore Than 400 Attending2012 By The Numbers
TENNESSEE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENTwww.tn.gov/ecd • (615) 741-1888 • (877) 768-6374