Introduction

The Savannah Economic Development Authority’s mission is to help create, grow and attract jobs and investment. It is a job we don’t take lightly. In fact, everything we do day to day is focused on that mission.

To get a sense of what we do and its resulting benefits to the region requires a big-picture view. So this year, we decided to take a step back and describe our process, how we measure our efforts and the work and partners it takes to bring a company to a location announcement. We also took a comparative view at the performance metrics of competitive markets and economic development organizations across the nation.

And though our work is diligent, it is only as strong as the partnerships we have formed. Together, may we continue to propel business, further strengthening the Savannah region with every passing year.

SEDA’s Efforts: The Funnel Effect

Georgia Governor Chief of Staff Chris Riley, Georgia Ports Authority Executive Director Curtis Foltz, Development Authority of Bryan County CEO Anna Chafin, SEDA President and CEO Trip Tollison, Georgia Governor Nathan Deal, GDEcD Commissioner Chris Carr, Technical College System of Georgia Commissioner Gretchen Corbin and GDEcD Deputy Commissioner Tom Croteau on a prospect visit.

Though the responsibilities we at SEDA undertake are varied, the ultimate goal of those efforts can be broken down into three stages:

  • 1) Generating Awareness
  • 2) Generating Conversations
  • 3) Generating Jobs and Investment

Much like a funnel, what begins as broad in scope ultimately narrows down to those few companies and industries with the highest potential for positive growth in the Savannah region.

 
Generating Awareness

“Much of [economic developer’s] high value work involves building relationships and making connections, and this work may not pay off for months or even years. In addition, much of their impact is influenced by market, demographic and other forces outside of their control.”

Making it Count: Metrics for High Performing EDOs
published by the International Economic Development Council (IEDC)

Each year, we set aggressive goals for lead generation in order to encourage positive growth of jobs and investment in our region. While the outcome is ultimately not under our control. Much effort and carefully planned strategy is used to pave the way for continued progress.


Our annual business plan sets goals and measures the following:

  • Conferences and trade shows
  • Targeted Marketing Campaigns
  • Media awareness
  • Website visits
  • Social media
  • Advertising
 
Generating Awareness

315,311*

*Conservative estimated numbers.

Generating Awareness

315,311*

*Conservative estimated numbers.


  • Consultant broker outreach
  • Local, regional and state networking
  • Existing industry visits
  • New projects
  • Request For Information proposals (RFI)
  • Referrals
  • Client visits
  • Site and community engagement
 
Generating Conversations

4,995*

*Conservative estimated numbers.

Generating Conversations

4,995*

*Conservative estimated numbers.


  • New company announcements
  • Existing company expansions
 
Projects Announced

17

Projects Announced

17

 

To help put things into perspective, SEDA generates

294

conversations to secure one company announcement.

How it All Begins

So where do announcements come from? Though media headlines are largely focused on new business locations (what are called attraction projects), the growth of existing local companies is vital to keeping the economy thriving and is a great selling point for new business attraction projects.

SEDA helps many local businesses grow and expand. Each year, the business retention and expansion director conducts more than 100 site visits with local businesses to inform them of programs, services, workforce development, training, community resources and expansion incentives. These efforts are so impressive, the program has been recognized by the International Economic Development Council.

For SEDA, 70-80 percent of announcements come from existing companies in Chatham County, which is aligned with what is generally accepted in the economic development industry.

A Comparative View of SEDA's Performance

The overall success of SEDA’s efforts each year is dependent upon many factors – some within our control and others that are not.

SEDA can control lead generation activities. SEDA can control the quality and effort that go into the sales process or ‘conversation.’ SEDA can not control the outcome or decisions of companies, so we generate as many quality leads as possible to increase chances of success.

While our performance is often looked at from an annual point of view, it takes time for a company to locate or expand and that rarely happens within the convenience of a calendar year. Examining 70 of SEDA’s most recent projects revealed that 20 percent took longer than a year to announce, with the average time spent working a project being nine months. One company took 3.7 years!

Often times, a company decides not to pursue or move forward with the location or expansion at all and the project just goes away. In that sense, it is not unlike the speculative work of most successful realtors and brokers.

The result of the controllable efforts of generating awareness and conversations leads to the generation of jobs and investment.

That said, you can offer the best package in the history of a community or state and still lose the project.

Extremely Competitive: Possible Opportunities within a Year

A ‘large attraction project’ defined here as one that brings with it 500 or more new jobs. According to the International Economic Development Council (IEDC), when asked ‘how many opportunities of that size are available in a given year?’ the answer is ‘very few.’ Based on past history, there are likely to be no more than a dozen major projects of 500 or more jobs across the entire nation in a given year with an estimated 15,466 economic development organizations vying for the same projects. In 21 years, 3 percent of projects SEDA worked have had 500 or more jobs including, Home Depot, JCB, Mitsubishi Hitachi Power Systems, Valujet Airlines, Ben Carter Enterprises and three announcements from Gulfstream Aerospace.

Savannah is performing exceptionally well relative to peers and larger communities in regards to total jobs and investment announcements.

What about comparing a market of similar size and assets to Savannah such as Lubbock, Texas?


 
 
population:
projects with 100-499 jobs
projects with 50-99 jobs
projects with 1-49 jobs
 
283,379
13%
18%
54%
Savannah:
Lubbock:
 
243,843
10%
16%
72%
 

population:

Savannah:
Lubbock:

283,379

243,843


 

projects with 100-499 jobs

Savannah:
Lubbock:

13%

10%


 

projects with 50-99 jobs

Savannah:
Lubbock:

18%

16%


 

projects with 1-49 jobs

Savannah:
Lubbock:

54%

72%

Population:

Savannah: 283,379

Lubbock: 243,843

Projects with 100-499 jobs:

Savannah: 13%

Lubbock: 10%

Projects with 50-99 jobs:

Savannah: 18%

Lubbock: 16%

Projects with 1-49 jobs:

Savannah: 54%

Lubbock: 72%


Looking at projects from 2006-2013 (8 years)

Percentage of projects that brought in 500+ jobs

4% Savannah
0% Lubbock

Propelling Business: Facing Challenges and Setting Goals

Available Land

Making progress is rarely without its challenges and opportunities – one of those being the availability land and space in Chatham County.

3Q 2015 Industrial vacancy rates showed a downward trend in availability, which gives us fewer options.*

2.8%

*The CoStar Group, Inc.


The good news is that in 2013, Chatham County voted to approve SPLOST, with a portion of the funds going to develop and execute a strategic land development plan. Since that time, SEDA has been exploring opportunities to address the land challenge and will begin executing when the funds become available in future years.

The support of SEDA’s partners and the private sector is also critical for the continued success and growth of our region.

Workforce

Another critical challenge is workforce. It is a national dilemma and not unique to Savannah, though we do our best to understand and address it at the local level. In an effort to identify the assets and needs to further develop a skilled workforce, SEDA, the Savannah Area Chamber of Commerce and the United Way of Coastal Georgia commissioned a workforce study in 2013.

While the study identified many perspectives, positives and negatives, the greatest perceived barrier from employers was the lack of education, training and skills – including soft skills – of job seekers.

Since that time, many organizations including Junior Achievement, Step Up Savannah, the Coastal Workforce Investment Board and others have reviewed the study and have used it to better inform programs, services and plans.

One of the key players in workforce development is Savannah Technical College. And in 2015, the SEDA Board of Directors stepped up and pledged a five-year commitment of a total of $203,000 for Savannah Tech’s Precision Manufacturing program.

 

"Savannah Tech is one of the most vital assets we have in economic development in Chatham County, working with companies every day to deliver a workforce they need to be successful...We are proud to commit to Savannah Tech’s capital campaign."

SEDA President and CEO, Trip Tollison.

Savannah: A City Built on Business

While Savannah has its challenges, we are also a city with great assets and advantages.

Most notably, our infrastructure. Savannah’s ideal location on the Atlantic Ocean in the southeastern part of the United States but the western-most port puts 70 percent of the U.S. population within a two-day drive by ground, water, rail or air. We are connected to the most extensive surface transportation network in the United States including major interstates I-16 and I-95, giving drivers easy access to the entire East Coast.

The Port of Savannah is home to the largest single-terminal container facility of its kind in North America and is the nation’s second-busiest container exporter in the nation.

Savannah has two Class I railroads, which include on-terminal service to the Port of Savannah.

The Savannah/Hilton Head International Airport is Georgia’s second-busiest airport with 21 nonstop destinations and 40+ daily direct flights.

While the workforce has challenges, it also has its advantages. With close to 416,000 in the labor pool available within 60 miles, with a median age of 34.9, the Savannah area population is young and diverse. Among those contributing to Savannah’s workforce are more than 4,000 servicemen and women who transition out of the local military each year and graduates of the area’s 19 area colleges and universities, which enroll more than 60,000 students.

Other advantages that give Savannah an edge include the World Trade Center Savannah, Foreign-Trade Zone 104, a low tax structure and incentives available, an entrepreneurial ecosystem and of course the quality of life we experience in Savannah. To learn more about Savannah’s advantages, visit seda.org.

The Pipeline: Greatest Potential for Growth in our Region

SEDA constantly evaluates the market, the potential for growth for our region and focuses on specific industries that would have the greatest potential for success here. Those industries include:

  • Advanced Manufacturing
  • Aerospace
  • Entertainment Production
  • Logistics & Distribution
  • Creative Design & Technology

While we focus our proactive marketing efforts on these specific industries, we often evaluate and respond to inquiries from other sectors of the economy. If we think the company could be successful here and the operation would create jobs, we do our best to locate them.

Each phone call, RFI completed, tradeshow attended, marketing effort executed, event planned and all actions in between, support the efforts that lead to the creation of jobs and investment in Chatham County. 2015 was no different. Below is SEDA’s Top 10 for 2015:

10

Enhanced strategic regional economic development efforts with the formation of the Savannah-Harbor Interstate 16 Corridor Joint Development Authority.

9

Deannexation of Pooler Mega Site into Chatham County.

8

Sale of the Amtrak Station and excess property, which helped SEDA finish the year in a strong financial position.

7

World Trade Center Savannah secured or maintained 56 partners including 10 economic development partners as well as the City of Savannah as Founding Investor.

6

Passage of the Freeport Exemption in Garden City that eliminates the inventory tax.

5

Awarded The International Economic Development Council 2015 IEDC Bronze Award for SEDA website redesign.

4

70 percent of all announced projects were from existing businesses in Chatham County.

3

Increased number of prospect visits by 38 percent from 2014 to 2015.

2

Creation of the Savannah Entertainment Production Incentive, which will increase the number of qualified crew members living/working in the area and increase direct investment in Chatham County.

1

Every dollar invested and every retained or new job that SEDA helped facilitate. Including 667 new job opportunities and $204.7 million investment.