Lawmaker: Ga. Can't Close Carter Visitor Center

(National Park Service)

Georgia economic development officials were left red-faced as a veteran state lawmaker said the department's plans to shutter a visitor center in former President Jimmy Carter's hometown of Plains violated state law.

The Georgia Department of Economic Development's budget plan eliminated $186,407 for the visitor center as part of agency budget cuts.

But at a budget hearing Thursday at the state Capitol, state Sen. George Hooks, a Democrat from Americus, said Georgia law dating from 1977 requires the state to "construct, operate and maintain a tourist center" near the home of any Georgian elected president.

Economic Development Commissioner Ken Stewart said he was not aware of the law and said "we will certainly go look at our options."

(AP)

Click here for more GPB coverage about budget cutting statewide.

Albany tire plant closing down

Cooper Tire and Rubber Co. says it will close its plant in Albany, Ga., the result of a capacity study of its four plants.

The Findlay, Ohio-based company will keep open plants in Findlay; Texarkana, Ark.; and Tupelo, Miss. The company announced the decision in a conference call Wednesday.

Workers were told in October that the company was facing higher costs and shrinking demand, and that Cooper had to make a dramatic cut. The company embarked on a study of each of its plants while the factories and their communities worked to provide Cooper with reasons to keep operating.

In Findlay, union workers voted to accept a pay cut. In Texarkana, the union voted to scuttle its current contract in favor of one in which workers would freeze salaries.

(AP)

Recession not slowing economic development push

Georgia like the rest of the nation is suffering through the recession. But a group of state economic development leaders on Tuesday said Georgia is well positioned to weather the storm while still expanding its global reach.

That’s because they say key ingredients remain strong in Georgia. They point to workforce training, ability to attract a young population, and Georgia’s transportation infrastructure.

Ken Stewart with Georgia’s Department of Economic Development acknowledges the state’s construction and textile sectors have taken hard hits in the ailing economy. But he says for the past six months, the state has been pushing its aerospace, life-science and agriculture industries worldwide.

"What we do is we go sell what we know is sustainable. We’re selling our strategic industries in a proactive and focused way. It’s a simple process. We say which industry segments to we want to grow--where are the companies throughout the world within those industry segments that are leaders and need to have access to this marketplace."

In their trips to bring new business to Georgia, officials say it’s what they cannot control that’s been the problem--the general global economic malaise postponing company expansion plans. Sam Williams is president of metro Atlanta’s Chamber of Commerce:

"They’re not saying we don’t want to come to metro Atlanta or Georgia...they’re saying we still want to come, but we’re having problems borrowing money and arranging our capital financing to accommodate growth and expansion there. So they’re saying ‘let’s keep in touch, we still want to do this, but let’s talk in March, let’s talk in June’."

Williams is hopeful that a proposed economic stimulus package by the incoming Obama-administration to target the nation’s infrastructure might benefit Georgia. Williams says investment in the state’s transportation grid can quickly open the door to new jobs.

Economic development officials plan to push Georgia lawmakers in January on issues such as transportation funding and rolling back tax rates on businesses.

Automotive suppliers in Georgia

The future of America's three auto companies hangs in the balance in Congress. The automotive industry has a huge impact on Georgia's economy. From parts to suppliers, the effects of trouble in that sector could be widely felt here. But who they're making parts for could cushion the blow.
The state is home to more than 300 parts manufacturers and suppliers. The companies make everything from electric window mechanisms, to auto glass and bed liners.
According to the Georgia department of Economic Development more than 23-thousand people work for these companies. Heidi green is the Deputy Commissioner for Global Commerce. She says suppliers here are somewhat insulated because they also make parts for foreign cars, produced in the south.

"They may be seeing some excess capacity with one company, but VW, which you know, numbers were very, very strong this last quarter, provides them with an opportunity to use up some of that existing capacity that they might have. That's the advantage that some of these parts companies have that maybe an automotive company doesn't."

Green says construction on the Kia plant in West point is going full steam ahead and that close to 4-thousand supplier jobs will come from that.

Bill Heard closures reinforce Dep't of Labor stats

Yesterday’s closure by Bill Heard Chevrolet is a bracing indicator of economic woes statewide.

The Georgian former employees of the nearly 90-year-old company join the latest state-Department of Labor figures:

• In August, Georgia’s six-point-three percent unemployment rate was two-tenths of a percent above national average.
• August unemployment rates of ten percent or higher were listed in ten counties.
• Overall, August figures say that 310, 683 Georgians are out of work.

But, says Bruce Kaufman, an economics professor at Georgia State University who specializes in industrial relations and economics, it’s worth keeping some perspective:

“One could over-read the significance [of the Bill Heard closure], because to some degree these are just normal events.

"But the financial turmoil, high interest-rates and tight credit conditions push the most marginal and troubled companies over the cliff – so these conditions could well be the straw that broke the camel’s back in terms of Bill Heard, and we have to wonder how many dominoes are going to be following them.”

A few of those dominoes are in metro Atlanta: the Atlanta Business Chronicle reports that three major homebuilders with a cumulative $27 million dollars in debts today filed for Chapter 7 bankruptcy.

But, Kaufman says, while cautioning not to be blasé, we’re not at the monetary brink:

"We don’t want to look at this and say, we’re at the start of the next depression, but we do want to look at this and say, if things get worse, we’re going to see bigger ripple effects like Bill Heard.”

In the midst of the poor economics prospects, Governor Sonny Perdue this weekend heads out to Spain for a two-week economic mission.

Perdue says he’s hopes to come back with jobs and investments.

Click here for more GPB News on the economy.

Kia: car plant construction still on track

Signs on the road to completing the Kia car plant. (Dave Bender)

Vehicles are set to roll off the Kia Motor assembly plant near West Point by November of 2009 according to Randy Jackson, Kia human resources director.

Jackson said an estimated 650 employees will be hired by the end of 2008, and that by the end of 2009, about half of the 2,500 team members expected at full capacity will have been hired.

Jackson said that output would depend on how quickly and how well the workforce training comes along. The company says it expects to reach the 2,500 employee benchmark in late 2010.

One hundred and sixteen professionals have been hired so far to work at the $1 billion facility, and have set up temporary offices in nearby LaGrange and at the plant site.

Companies supplying the plant have hired on over 5,000 employees, according to a Kia statement.

The plant will produce some 300,000 vehicles annually including the Sorrento SUV, and another, yet-to-be-named vehicle, when the facility reaches full capacity, Jackson said.

Kia officials in May quashed rumors of changes and uncertainty in their production plans, due to soaring gas prices. Senior Hyundai officials in Korea had been quoted in the Atlanta Journal-Constitution as saying that the plant would retool to produce a small car, instead of a planned SUV model.

Click here for more GPB News coverage of the Kia plant, and its regional impact.

Georgia, Michigan tussle over 'Priceline' callcenter

(Courtesy)

Columbus, Georgia and Wyoming, Michigan are in competition for a new call-center for Priceline, an Internet-based travel site.

A Columbus Chamber of Commerce official confirmed the report, but was unable to provide further details, saying that the negotiations were still in progress.

Columbus is reportedly offering an $11 million incentive package to the Norwalk, Conn.-based company, according to the Grand Rapids Press. The Chamber of Commerce says the amount offered in the package was lower, but could not confirm the sum.

Officials say such a center, which would handle online flight, hotel and car-rental bookings would create upwards of 400 jobs, although the Chamber of Commerce would not confirm that number.

The Michigan Economic Growth Authority on Tuesday approved a state tax credit worth up to $3.9 million over seven years to encourage the Norwalk, Conn., company to open a call center in Wyoming.

The Grand Rapids suburb is proposing an additional seven-year property tax abatement worth $1.1 million. The Michigan Economic Development Corp. has offered up to $200,000 in job training assistance. according to the Michigan newspaper.

The Chamber of Commerce and Priceline spokesman Brian Ek say a final decision is expected early this summer.

Click here for more GPB News coverage of economic development issues in Georgia.

(With The Associated Press)

State exports see sharp rise

A banner year for Georgia exports has bolstered the state economy.

Through the first nine months of this year, state exporters tallied 17.2 billion dollars in goods sent overseas. That’s a 15-percent jump from the same period last year.

The Georgia Department of Economic Development says it’s a near across the board increase for different categories of exports. Transportation equipment leads the way with 3.2 billion dollars.

Kathe Falls is Director of International Trade for the department.

"I think we’re looking at a couple things. I think it’s the U.S. dollar, which makes our goods so much more attractive overseas. And I think some of it too is we’re doing so well on foreign direct investment that’s located in Georgia".

The rush of new foreign investment in the state has included China. The country has in turn jumped to number-2 in taking Georgia exports.

Other statistics given by the state's Department of Economic Development:
- Georgia stands 15th in the U.S in exports (dollar value)
- 85% of ten-thousand businesses in Georgia selling products overseas, are small or midsize companies

Drug testing company to bring 400 new jobs

Georgia officials' attempts to create a biotechnology building spree may be paying off.

Now, a company that tests new drugs on humans says it will expand its headquarters in suburban Atlanta.

Quintiles will invest $19 million in the project, which will double its size to 850 employees and consolidate its two Atlanta area offices under one roof in Marietta.

Company CEO Dennis Gillings says the local resources ensure his drug-testing business will grow.

"With the CDC here, with a lot of fabulous universities here, and a lot of medical schools and a lot of biotechnology companies, a lot of research entitles, clearly there’s a huge spread of capabilities here in the Atlanta area," he said.

Georgia ranks seventh in the nation in recruiting life-sciences companies. Officials say the industry brings the state prestige and well-paid jobs.

Kia kills bond, but officials optimistic

Kia Motors recently pulled a half billion dollar bond sale for an assembly plant to be built near West Point.

Despite the move, state officials say there are no changes in Kia's plans to go ahead with the project.

"Everything is on schedule, and we expect it to go forward as planned," said Allison Tyrer of the state Department of Economic Development. Tyrer made the comments in response to reports of concern by Wall Street investors.

She adds that initial construction for a state-funded training facility has already started. Officials say they expect KIA to begin construction in the next few months.

The $1.2 billion factory is scheduled to be completed in 2009. Officials say the facility will employ 2800 workers, and provide another 2600 additional service positions.