Georgia has been named the “Top State for Business” by Area Development, a leading publication covering corporate site selection and relocation, for the sixth year in a row, according to Governor Brian P. Kemp. The results are determined by the publication’s poll of site consultants.
“I am exceptionally proud that Georgia has once again been named the Top State for Business by Area Development,” said Gov. Kemp. “This announcement serves as a powerful testament to what we all know to be true: Georgia is the best place to live, work, and raise a family. Our efforts to cut red tape and ensure our business environment leads the nation continue to lure world-class companies to the Peach State from every corner of the map.
“Our world-class workforce is a direct result of our top-ranking colleges and universities, and Georgia Quick Start, the best workforce development program in the nation. The state’s innovative and comprehensive logistics network makes Georgia a gateway to the global economy by land, air, and sea.
Area Development’s 2019 Top States for Doing Business results reflect the rankings that states receive based on weighted scores in the following twelve categories: overall cost of doing business, corporate tax environment, business incentives programs, access to capital and project funding, competitive labor environment, shovel-ready sites program, cooperative and responsive state government, favorable general regulatory environment, speed of permitting, favorable utility rates, leading workforce development programs, and most improved economic development policies.
“The 10th Annual Best States for Doing Business rankings are drawn from our editor’s poll of leading site location, supply chain, 3PL, real estate, and corporate business consultants maintained in our proprietary consultant database,” said Area Development publisher and president, Dennis J. Shea. “We poll those consultants who are actively responsible for guiding scores of corporate site location project decisions, billions of dollars in capex, millions of square feet in new construction, and most importantly, creating thousands of new jobs across all fifty states. For the sixth consecutive year, Georgia ranked No. 1 overall in Area Development’s highly regarded annual Best States for Doing Business poll, including top rankings in four of the twelve critical categories measured.”
Along with the Top State ranking, Georgia was ranked No. 1 in cooperative and responsive state government, leading workforce development programs, competitive labor environment, and speed of permitting.
“We are honored to receive the title of Top State for Business for the sixth year in a row,” said Georgia Department of Economic Development Commissioner Pat Wilson. “Each day, our team is out on the front lines working with companies to spread the good news of Georgia’s top-ranked business climate.” Wilson said “Whether it is our logistics infrastructure, workforce, or pro-business climate, there are so many factors that play into an honor like this one, and none of it would be possible without the tremendous support we have from our economic development partners in every community throughout Georgia.”
Gov. Kemp said his “administration is committed to building our state’s economic development toolbox so that we continue to attract leading companies in manufacturing, FinTech, information technology, and other industries ready to invest in a state that values their business and positive impact on local communities.”Read More
ATLANTA–Trade tensions, a reduction in business investment and an earlier than usual presidential election swoon are contributing to a lowered growth path for 2020-21, according to Rajeev Dhawan of the Economic Forecasting Center at Georgia State University’s Robinson College of Business.
“Economic growth will take an oscillatory path, known as transition economics, to reach this lower level,” Dhawan wrote in his “Forecast of the Nation,” released Aug. 28, 2019.
“There is never a single reason for a downgrade, but the chief culprit for this one and its zigzag is the evolution of business investment from mid-2018 until now,” Dhawan said. “Investment contractions are a bad sign for future growth unless there are mitigating circumstances.”
One such mitigating circumstance affecting equipment investment was the March grounding of Boeing’s 737 MAX, which has spread downstream to suppliers such as General Electric (engines) and numerous parts makers across the country.
“This investment category will rebound at some point, but don’t count on help from those parked planes before early next year,” Dhawan said.
Also in retreat: investment spending on structures (commercial buildings, mining and fracking wells) dropped 10.6 percent in the second quarter of the year.
“The commercial sector seems to be pulling back on its building desire, despite good consumer spending,” Dhawan said. “The reason is the future seems more uncertain today than a year ago, when tariffs were a negotiating ploy and not a reality, as they are now.”
As for fracking, low oil prices are keeping well below the breakeven price per barrel, which Dhawan attributes to lowered demand from China.
“It seems unlikely that U.S.-Chinese trade tensions will ratchet down anytime soon,” he said. “And corporations, with their globally integrated supply chains, are spooked by the tit-for-tat tariff game. Investment is not expected to rebound to its mid-2018 high following the December 2017 tax cuts.”
Dhawan expects the Federal Reserve will cut rates in September, and then pause to observe concrete evidence of the anticipated growth slowdown. He then expects the Fed will decrease rates again in December, leading to a limited boost in home refinancing activity.
“A sharp drop in the 10-year bond rate since the Fed’s rate cut of July 31 is mostly due to global capital seeking a safe haven,” Dhawan said. “What cannot be forecast is when this fear-motivated flight to safety will end. If the move to 10-year bonds persists it will further depress the growth trajectory and keep the yield curve inverted longer, which would require deeper (emergency) rate cuts by the Fed.”
Highlights from the Economic Forecasting Center’s National Report
- Overall GDP growth will be 2.3 percent in 2019, 1.7 percent in 2020 and 2.0 percent in 2021.
- Investment growth will be 2.9 percent in 2019, 1.7 percent in 2020 and then rise to 3.2 percent in 2021. Monthly job gains will moderate to 153,000 in 2019, drop to 118,600 in 2020 and gain 116,900 new monthly jobs in 2021.
- Housing starts will average 1.225 million in 2019, 1.228 million in 2020 and then increase to 1.265 million in 2021. Vehicle sales will average 16.7 million in 2019, 15.9 million in 2020 and 16.0 million in 2021.
- The 10-year bond rate will average 2.1 percent in 2019, 2.2 percent in 2020 and rise to 2.5 percent in 2021.
- percent in 2019, decline 6.0 percent in 2020 and fall another 3.0 percent in 2021.
ATLANTA–Stuttering global growth and escalating trade tiffs that are affecting national economic prospects are also being felt in Georgia across many employment sectors, according to Rajeev Dhawan of the Economic Forecasting Center at Georgia State University’s Robinson College of Business.
In his quarterly “Forecast of Georgia and Atlanta,” Dhawan wrote that he expects two Federal Reserve rate cuts before 2019 ends, asking, “Will these extra cuts help us negate the fallout from our trade spats? And what relief will it provide at the state and Atlanta metro levels?”
The forecaster’s answer to these questions is mixed. Yes, lower rates should help with interest-sensitive sectors such as home refinancing, vehicle sales and small business loans.
“But, these rate cuts cannot overcome the hesitation of big corporations to undertake the capital expansions that determine future job growth,” said Dhawan in the report released Aug. 28, 2019. “These firms are global in scope and dependent on external markets for a big proportion of their revenues.”
A case in point is Delta Air Lines. The state’s largest corporate employer collects 30 percent of its passenger revenue from international operations. In the second quarter of 2019, its global sector grew by 5.2 percent, compared to 8.7 percent for the same period in 2018.
The Port of Savannah, another transportation crown jewel, is largely responsible for driving the economic growth of the Savannah metro area. In mid-2018, Savannah’s job growth was 2.7 percent, outpacing the state’s job growth rate of 1.9 percent when global trade volumes were good. But by June 2019, Savannah’s growth rate dropped to 1.2 percent, putting it below the state’s 1.7 percent growth as the global economy cooled.
“Globally connected sectors and areas grow higher than average when the world economy is booming, but they decelerate sharply when the tide turns,” Dhawan said.
The global health of Fortune 500 companies headquartered in Georgia determines the hiring of managerial jobs in Atlanta, which has a multiplier effect on downstream sectors.
Domestic demand sectors are performing better than globally connected ones, particularly hospitality (historically high occupancy rates), education (growing due to population growth), healthcare (overall population growth and aging) and construction (new hotel, office and apartment developments).
“Fed rate cuts will alleviate the pain somewhat, and relatively clear skies will emerge, but without a rainbow,” said Dhawan.
Highlights from the Economic Forecasting Center’s Report for Georgia and Atlanta
- Georgia employment will add 65,200 jobs (11,400 premium jobs) in 2019, gain 53,500 jobs (9,400 premium) in 2020 and increase by 48,200 (9,700 premium) in 2021.
- Nominal personal income will grow 4.3 percent in 2019, then increase by a better 5.1 percent in 2020 and 2021.
- Atlanta will add 45,300 jobs (7,900 premium positions) in 2019, moderate to 37,900 jobs (7,200 premium) in 2020 and 35,600 jobs (7,300 premium) in 2021.
- Atlanta housing permitting activity will fall 18.9
Selling your business can takes as much planning and careful consideration as starting it does. The Atlanta Small Business Network recently interviewed former GABB president Michael Ramatowski, Managing Partner at RamBizGroup Business Solutions, in the ASBN studios.
Considering the most common reason for selling a business is due to retirement, Michael says it’s important that a business owner get the most out of selling their business. He said that’s why members of the Georgia Association of Business Brokers make sure that business owners are getting the most out of their business and not leaving any equity on the table.
Michael also shared with ASBN exactly how much work goes into selling a business. Business brokers generally follow certain steps to determine the value of a business. He says for GABB specifically they will begin their process with a no-cost meeting with the business owner before they begin to work towards determining the price at which the business would sell for. From there they will be able to determine how they are going to fund it and whether or not the business is ready to be taken to market.
Georgia has been ranked the top state in the nation for business for the past five years by at least two business ranking companies, according to Emily Poole, metro Atlanta project manager for the Georgia Department of Economic Development.
Poole spoke to the Georgia Association of Business Brokers on June 25 at their weekly meeting. Site Selection, an internationally circulated business publication covering corporate real estate and economic development, ranked Georgia tops in the nation for business from 2013 through 2018. Area Development, a leading executive magazine covering corporate site selection and relocation, ranked Georgia tops in the nation from 2014-2018, Poole said.
In her presentation “Georgia: A Profile in Economic Development,” Ms. Poole described how her department works to develop business in Georgia, how they track trends and how varying factors converge to make local projects happen. The GABB is the state’s largest association of professionals dedicated to buying and selling businesses and franchises.
Among the items that make the Peach State favorable for business:
- Unchanged 6% corporate income tax rate for over 50 years; lowered to 5.75% effective January 1, 2019.
- Consistent AAA credit rating from all three credit agencies for the past 20 years
- First Southeastern state to adopt single-factor apportionment
- Certain tax credits applicable to payroll withholding
- Top 10 for lowest effective tax rate
Georgia many economic incentive programs include job tax credits, a port tax credit bonus, a quality jobs tax credit and mega project tax credits. The state also has discretionary grants for land acquisition, site preparation, building construction and equipment costs. Community incentives include the potential for property tax abatement, buying land at a reduced cost, waivers of permitting fees, site preparation and cash grants.
The Georgia Association of Business Brokers meets at conference room hosted by the Georgia Association of Realtors at 6065 Barfield Road, Sandy Springs, GA, 30328. The monthly GABB meeting is free and open to the public and is preceded at 9:45 a.m. by a free light breakfast and networking session. Thanks to Christopher J. Cowart, CFP®, CTFA, CRPC®, Vice President, Private Wealth Management for SunTrust Bank for sponsoring the meeting. The meeting will last from about 10:30 to somewhere between 11:30 and noon. Please fill out the form below if you are not a GABB member but wish to attend our meeting.
Emily Poole serves as the Region 3 (Metro Atlanta) Project Manager for the Georgia Department of Economic Development. Prior to joining the Department, Emily worked for the City of Fayetteville as their Director of Economic Development, as well as the Fayette County Development Authority as Vice President of Economic Development.
Awarded Fayette County Young Professional of the Year for 2011, Emily has an impressive record of community service and partnership. The 2012-2013 President of Young Professionals of Fayette County, Emily has served on the board of the Fayette Chamber of Commerce and Main Street Fayetteville. Currently, she serves on the Board of Directors for Bloom, AV Pride, and Fayette Senior Services. Additionally, she is a 2013 graduate of the Atlanta Regional Commission’s Regional Leadership Institute, and a 2014 graduate of Leadership Fayette.
A native of Fayette County, she graduated from McIntosh High School in Peachtree City. She received a Bachelor’s degree in Psychology & Human Services and an MBA in International Business from Clayton State University where she was recognized with the “MBA Service & Leadership” Award for the Class of 2016.
The GABB is the state’s largest and oldest association of professionals who specialize in brokering the purchase and sale of businesses and franchises. Broker members help owners determine the asking price of their business, create marketing plans and strategies for selling their business, identify and qualify buyers, and have the knowledge, experience and skills needed to help maintain the confidential nature of the process. Affiliate members include bankers, lawyers, appraisers, insurers and other professionals who work closely with brokers to help owners and buyers get to the closing table.
For more information about GABB, please contact GABB President Dean Burnette at 912-247-3209 or firstname.lastname@example.org, or GABB Executive Director Diane Loupe at email@example.com or 404-374-3990.