Georgia Department of Economic Development

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Georgia Department of Economic Development
Ken Stewart Commissioner April 2, 2009
September, 2008
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Post-American World
Fareed Zakaria The Post-American World
Tectonic Shifts

• Rise of the Western World
• 15th Century
• Produced modernity as we know it

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Post-American World
Tectonic Shifts (cont)

• Rise of the United States
• Closing years of 19th century to mid-20th
• U.S. most powerful nation since Roman Empire
• Rise of the rest
• Last 20 years unprecedented growth
• 2006 2007 124 countries grew at 4 or more

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Post-American World
Look around

• Worlds tallest building Taipei (soon to be
  Dubai)
• Worlds richest person Mexican
• Biggest refinery under construction India
• Richest investment fund UAE
• Largest casino Macao
• Largest shopping mall Beijing

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Post-American World

• G20 Summit, London
• Now more prominent than G7
• Emerging economies
• Equal 50 of world economy
• Will probably provide 100 of world growth
  emerging from global recession
• Economic clout will lead to more political clout
• - Fred Bergsten, Director, Peterson Institute
  of International Economics

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International Transformation
The point

• Internationalization
• Markets
• Production (goods and services)
• Economy

• All countries increasingly interdependent
• World has changed (Data, People, Goods)

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Current Economic Snapshot

• February unemployment
• National 8.1
• Georgia 9.3
• Georgia per capita income in 2008 rose just 1.4
• Existing home sales
• Nationally, up 5.1 from January largest
  monthly sales jump since July 2003
• In Georgia, up 22.2
• Overall, national sales still down 10 from Feb.
  2008

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Current Economic Snapshot
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Current Economic Snapshot
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Current Economic Snapshot
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Current Economic Snapshot
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Current Economic Snapshot
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Current Economic Snapshot
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Current Economic Snapshot
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Georgias Competitive Assets

• United States is worlds largest marketplace
• How Georgia fits
• Hub of SE, one of fastest-growing regions in U.S.
• GA had 4th- biggest jump in population last year

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Georgias Competitive Assets

• Logistics
• Workforce
• Tax regulatory environment
• International business connections
• Quality of life
• Quick Start, HOPE Centers of Innovation

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Georgias Business Environment

• 1 in workforce training (Expansion Management)
• 1 in fiscal policies (Laffer Report)
• 3 in entrepreneurial activity (Kauffman
  Foundation)
• 4th best state to do business in (CNBC, Chief
  Executive Magazine)
• 5th best state for business (Forbes)

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GDEcDs Role

• Market sell assets
• Demonstrate value attribution to companies
• Maintain favorable business environment for
  existing businesses (large small)
• Foster unique public and private partnerships
• Measure PL is jobs, investment positive trade
  balance

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GDEcD Teams

• Global Commerce
• new business investment
• existing industry
• small businesses
• international trade
• Tourism
• Entertainment

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Global Commerce
Strategic Industries

• Aerospace other advanced manufacturing
• Advanced Communications
• Agribusiness
• Biosciences
• Energy
• Logistics Transportation
• Banking Finance

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Global Commerce
FY08 Successes

• 321 companies expanded or located
• 19,668 jobs (13.1 increase from FY07)
• 3.26 billion investment (17 increase)
• 67 expansions of existing GA businesses

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Global Commerce

• Rural projects 60 of all jobs, 56 of total
  investment
• 31 created by small businesses or entrepreneurs
• 16.5 international, BUT created 35.6 of the
  jobs 33 of the investment

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Tourism

• 2007 direct travel expenditures increased 5.8
  percent to 20.2 billion
• Domestic expenditures up 5.3 percent
• International expenditures up 12.2 percent
• Tax revenue up 5.7 percent
• Tourism employment up 2.6 percent
• 2008 Estimate down 12 percent

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Film, Music Digital Entertainment

• HB1100 Entertainment Incentive Act
• FY08 - 302 entertainment projects produced in
  Georgia
• Economic impact of 470 million
• 10 major films, 10 TV series
• New entertainment incentives drawing productions
  to all corners of GA

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Georgias Assets forEconomic Recovery

• Diversified economy
• Strong relationships
• Competitive assets
• Economic development partners united in purpose
• Creative, proactive initiatives to take market
  share

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Georgias Assets
Other competitive incentives

• Single Factor apportionment
• Sales Use tax exemption
• Inventory tax exemption
• New entertainment industry incentives
• BEST legislation

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Georgias Success Stories

• Kia and suppliers
• Delta-Northwest merger
• VW site location in Chattanooga
• 2009 BIO International Convention
• Entrepreneur-Friendly Program

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Georgias Success Stories

• BRAC military base realignments
• Potential new U.S. Africa Command base
• Growth of ports deepening of Savannah harbor
• New SEUS-Canada relationship
• Centers of Innovation

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Our Immediate Goals

• Keep Georgia front-of-mind worldwide
• Keep relationships strategic fresh
• Knock on more doors and put more shoe leather on
  the street
• Now is the time to capture market share