Atlanta’s Economic Outlook

Overview

Even during a slow national period, metro Atlanta has made a strong showing on every measureof economic healthy jjob growth, population growth and housing starts.This is not to say that the region faces no challenges. Over the next several years events such asclosures at auto plants and military bases, and a changing landscape of mergers and acquisitionswill play out.But Atlanta’s robust and diverse economy gives our region a strength that is envied by othercities. In a recent story titled “Life After Carmaking,” the Washington Post noted: “The city isbolstered by its vibrant services sector, which has the potential to sweep in workers cast off bythe decline in manufacturing. In its economic clout, Atlanta stands as a symbol of thetransformation overtaking the American economy and illustrates the hope of thousands of bluecollar workers trying to adjust to a new landscape.”

 

The metro Atlanta economy has been strong, even during a slow national period.

· Last year Atlanta gained more than 60,000 jobs.· Metro Atlanta adds 100,000 people per year – 60 percent of whom move here.· In 2006, Atlanta saw more than 70,000 new housing starts.· Personal income growth continues to be higher than the national average.· The so-called “Katrina effect” in Atlanta has meant a boost in population, jobs, housing, spending and increased port activity via shipments diverted to Atlanta.· Georgia has had strong export growth for the last several years.· This year looks strong, too. Preliminary job growth estimates through next year projects 44,000 more jobs.

The chart on back shows growth in Atlanta from 1995 – 2005. Key points:

· Every day 2,337,600 people in met ro Atlanta have a job.· Although the rate of recovery is slower than the growth experienced between 1995 and 2000, we have a three-year trend of job growth. · Our small-business sector remains strong. Of the nearly 4,000 companies that located in Atlanta in 2005, two-thirds were small and mid-sized businesses.

In the next few years, metro Atlanta will face other changes.

Delta’s bankruptcy will continue to play out. Strong local support helped avert a USAir buyout.

The General Motors plant will close by 2008. Ford’s plant will close by 2007.

Fort Gillem, Fort McPherson and the Marietta Naval Station are closing.

Mergers and acquisitions of large companies such as Georgia-Pacific, Scientific-Atlanta,

BellSouth and Russell Corp. will affect the business landscape.

 

 

 

KPMG Study Reveals Atlanta is Least-

Expensive Large U.S. City for Business

March 21, 2006

NEW YORK, March 21 /PRNewswire/ -- Competitive labor costs along with favorable state-tax incentives contributed to Atlanta ranking as the leastcostly place to do business among 23 U.S. cities/locations with populations exceeding 1.5 million, according to a study by KPMG LLP, the audit, tax and advisory firm. New York and San Jose, Calif., were the most expensive places to do business among large U.S. cities.

Tampa, Fla., and Indianapolis emerged as the most cost-competitive locations behind Atlanta, ranking a close second and third, respectively, in the large-cities category. Other large cities/locations with business costs below the U.S. average were Northern Virginia (Metro D.C.) and Milwaukee.

KPMG's 2006 Competitive Alternatives study measured the combined impact of location-sensitive business-operating costs, such as labor, facility, transportation and utility costs, as well as income taxes, among the 23 cities. The biannual study's basis for comparison is the after-tax cost of startup andoperation for 12 specific industries over a 10-year span. The study enablescompanies to perform a "quick scan" of jurisdictions to determine which can offer a cost-competitive business environment. "Selecting the best site for a business operation requires balanced consideration of many factors, including business costs, business environment, personnel costs and quality of life issues," said Hartley Powell, national leader for KPMG's StrategicRelocation and Expansion Services practice. "This study offers a comprehensive guide for comparing business costs in the United States and contains valuable information for any company seeking a cost advantage in locating a business operation."

According to the study, Atlanta had a cost index of 96.4, representing business costs 3.5 percent below the U.S. national average of 100.0. Atlanta was followed by Tampa at 96.5 and Indianapolis at 96.6. The overall Competitive Alternatives study measured business-operating costs in 128 cities throughout nine countries. A total of 27 location- sensitive cost components were considered. The full text of the 2006 study is available online athttp://www.CompetitiveAlternatives.com.

Cost indexes for the 23 large U.S. cities studied follows. The benchmark cost index (U.S. = 100) is defined as the average of nine representative U.S. cities.

KPMG's 2006 COMPETITIVE ALTERNATIVES STUDY

(U.S. Cities with population of more than 1.5 million)

Cost Index Rank

1. 1 Atlanta, GA 96.
2. 2 Tampa, FL 96.5
3. 3 Indianapolis, IN 96.6
4. 4 Milwaukee, WI 98.5
5. 5 Northern Virginia (Metro DC) 99.8
6. 6 Portland, OR 100.5
7. 7 Chicago, IL 100.8
8. 8Phoenix, AZ 101.1
9. 9 Dallas-Ft. Worth, TX 101.2
10. 10St. Louis, MO 101.9
11. 11 Providence, RI 102.4
12. 12 Detroit, MI 102.7
13. 13 Philadelphia, PA 102.8
14. 14 Houston, TX 102.9
15. 15 San Diego, CA 103.2
16. 16 Riverside-San Bernardino, CA 103.3
17. 17 Las Vegas, NV 103.6
18. 18 Minneapolis, MN 103.8
19. 19 Seattle, WA 104.4
20. 20 Newark, NJ 107.7
21. 21 Boston, MA 107.8
22. 22 San Jose, CA 108.5
23. 23 New York, NY 112.6

Cost index figures were created by measuring the combined impact of 27 cost components that are most likely to vary by location. More than 2,000 individual business scenarios were examined, analyzing more than 30,000 items of data. For comparison purposes, the national average was assigned a cost index of 100.0.

KPMG's Strategic Relocation and Expansion Services practice, with more than 50 U.S. professionals, offers a comprehensive range of services that help companies find tax and other efficiencies when expanding, relocating or consolidating their facilities.

KPMG LLP, the audit, tax and advisory firm (http://www.us.kpmg.com), is the U.S. member firm of KPMG International. KPMG International's member firms have 103,000 professionals, including 6,700 partners, in 144 countries.

 

      FOREIGN GOVERNMENT OFFICES AND SERVICES•

A total of 55 countries, territories and regions are officially represented in nearly 100 career and honorary consulates, trade and tourism offices, and business and industrial development offices in metro Atlanta.

• Additionally, the Georgia Department of Economic Development provides a team of experienced international trade representatives in a dozen major business markets around the world. These business professionals assist international companies in locating Georgia products and services or can partner with the Metro Atlanta Chamber of Commerce or Georgia Power’s economic development group in helping an international business establish an office or manufacturing presence in metro Atlanta.

 

 

EDUCATIONAL AND CULTURAL ENVIRONMENT

• International cultural and educational institutions have a long history in Atlanta. These groups and others offer a second home to Atlanta’s significant foreign-national populations and to others who enjoy the many ways they help enhance this region’s quality of life. These groups include the Goethe Institute, Alliance Francaise, the Japan-America Society and the Southern Center for International Studies.

• The International Baccalaureate (IB) diploma is available in eight Atlanta-area high schools including public school systems in City of Atlanta and City of Marietta, Cobb, DeKalb, Fulton, Gwinnett, Bartow and Forsyth Counties as well as in the private Atlanta International School.

• Many private schools foster an international perspective with curriculums designed to help ease the transition into learning in the U.S.: the Atlanta International School, the Georgia Japanese Language School, Seigakuin Atlanta International School, and The German School of Atlanta. They are popular, with an enrollment of 400 at the Japanese-language schools, 200 at the German school and more than 800 at the Atlanta International School.

• Several Atlanta-area postsecondary schools offer English as a Second Language and Intensive English programs to aid international students who must prove their fluency in English to enter U.S. universities.

• Locally produced and published media – newspapers, radio and television - inform the many international populations in Atlanta. A sample of Atlanta’s print and broadcast news sources that offer bilingual or native-language editions and programming includes:

– Atlanta Viet Bao (Vietnamese/English)

– El Informador (Spanish weekly)

– La Vision (Spanish daily)

– India Tribune (Indian subcontinent news)

– Khabar, Inc. (Indo-Pak-Bangla)

– Korea Times– Southwest (Korean daily)

– Mundo Hispanico (Bilingual)

– The Russia House Newspaper (Russian)

– Chinese World Journal (Chinese daily)

– Radio Mex WPLO (Spanish)

– Univision WUVG 34 (Spanish)

• Atlanta’s thriving and growing international communities are an integral part of the city’s economic and cultural scene. A variety of religious facilities such as Hindu temples, mosques, synagogues and churches offer opportunity for worship. In addition, numerous ethnic social opportunities such as Greek, Indian and Jamaican festivals, Chinese and Jewish community centers, and Asian and Hispanic shopping centers meet the recreational needs of this region’s distinct foreign-born communities while inviting others to sample and enjoy the diversity.

 

Atlanta Communities