september 2012 commerce

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INSIDE: Chamber Unveils New Website pg. 78 + Monthly Economic Indicators pg. 74

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News from the Knoxville Chamber.

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Page 1: September 2012 Commerce

INSIDE: Chamber Unveils New Website pg. 78 + Monthly Economic Indicators pg. 74

Page 2: September 2012 Commerce

EDITOR LORI FULLER [email protected]

DESIGN LADDY FIELDS

WRITER ANTHONY WELSCH

CONTACT THE KNOXVILLE CHAMBER(865) 637-4550 www.knoxvillechamber.com

PRESIDENT & CEO MICHAEL EDWARDS

EXECUTIVE VICE PRESIDENT RHONDA RICE

ECONOMIC [email protected]

FINANCE & [email protected]

[email protected]

PUBLIC POLICY & [email protected]

CENTRAL BUSINESS IMPROVEMENT DISTRICT (865) 246-2654 [email protected]

THE DEVELOPMENT CORPORATION (865) 546-5887

TENNESSEE SMALL BUSINESSDEVELOPMENT CENTER (865) 246-2663

LEADERSHIP KNOXVILLE(865) 523-9137

U.S. DEPT. OF COMMERCE EXPORT ASSISTANCE CENTER (865) 545-4637

NEW MEMBERS / NEW PREMIER PARTNERS

MEMBERSHIP MATTERS

Top Achievers are recognized for their countless volunteer hours and dedication to the Ambassador Program’s mission of serving as an active volunteer extension of the Knoxville Chamber to cultivate, promote, and maintain positive relationships between the Knoxville Chamber, its members, and the community.

THE KNOXVILLE CHAMBER’S MONTHLY NEWSLETTER

KNOXVILLE CHAMBER 44

SILVERPileum Corporation(865) 293-0050www.pileum.comComputer & IT Services

BRONZEBristol Motor Speedway(423) 989-6959www.bristolmotorspeedway.comSports & Recreation

HR Comp(865) 938-3555www.hrcomp.comBusiness & Professional Services: Human Resources

3 Minute Magic Car Wash - Fountain City(865) 249-7425www.3minutecarwash.comAutomotive Sales, Parts, & Service

640 Nissan(865) 687-6111www.640nissan.comAutomotive Sales, Parts, & Ser-vice: New Car Dealerships

A to Z Background Screening(888) 522-8912www.atozbackgroundscreening.comBusiness & Professional Services

ADS Phoenix(865) 573-9221www.adsphoenix.comBusiness & Professional Services: Marketing

All American Tire & Wheel(865) 688-1822www.allamericantireandwheel.comAutomotive Sales, Parts, & Service: Repair & Service

ALSAC/ St. Jude Children’s Research Hospital(615) 332-2388www.stjude.orgHealthcare Providers & Services:Hospitals & Clinics

Barberitos - Southwestern Grille and Cantina(865) 303-0068www.barberitos.comRestaurants - Eating & Drinking Places

Days Inn North(865) 687-5800www.daysinn.comHotels & Lodging

Gregory’s Greenhouse Productions, LLC(865) 607-0030www.gregorysgreenhouse.comFlorists, Nurseries & Garden Centers

Harold C. Ward, Jr., CPA, PC(865) 584-1500www.wardcpa.comBusiness & Professional Services: Accounting, Auditing, & Bookkeeping

Impact Performance! LLC(865) 306-3275www.impactperformancetn.comBusiness & Professional Services: Business Advisors & Consultants

Kear Contracting, LLC(865) 661-1504Construction & Contractors: General Contrac-tors

Keller Williams Knoxville Premier Properties(865) 694-5904www.johnniecreel.comReal Estate

KenJo Markets(865) 982-2192www.kenjomarkets.comShopping: Convenience Stores & Travel Centers

knox360(865) 245-2333www.knox360.comBusiness & Professional Services

Lighthouse Knoxville(865) 247-6072www.lighthouseknoxville.comEvent Planning, Catering, & Venues

Lockridge Law Firm(865) 522-4194Legal Services: Attorneys

Millennial Consulting LLC (615) 482-2277Business & Professional Services: Marketing

Nature’s Best Organics(865) 927-7646Building & Grounds Maintenance: Land-scaping

CONNECT with the

CHAMBER

Doug Lawyer @knoxoakridgeIVJennifer Evans @knoxevans

Kyle Touchstone @knoxecondevguyMark Field @field101

Michelle Kiely @mkiely1

facebook.com/KnoxvilleChamber

twitter.com/k_chamberCHAMBER STAFF

TO

P A

CH

IEV

ER

S

NavCal Marine Services, LLC(865) 765-3407www.navcal.comAttractions & Tourism

Publix Super Markets(865) 470-0720www.publix.comShopping: Grocery

Quaker Steak & Lube(865) 687-0399www.quakersteakandlube.comRestaurants - Eating & Drinking Places

Reliant Title(865) 238-4369www.reliant-title.comReal Estate: Title Companies

Salon Silhouette(865) 394-6919Personal Services: Salons & Spas

Send Out Cards - Maria Kear(865) 661-2228www.sendoutcards.com/mariakBusiness & Professional Services: Marketing

RIBBON CUTTINGS

Sam’s Club celebrated the grand re-opening of its newly remodeled west Knoxville club with a ribbon cutting ceremony and reception in August. Club Manager Tony Street (center) is joined by Knox County Mayor Tim Burchett, Knoxville Chamber President & CEO, Mike Edwards as well as Sam’s Club executives and associates, and Knoxville Chamber Ambassadors. Sam’s Club also gave several grants to area organizations after the ceremony.

KIM DAVIS VISITKNOXVILLE

DANIEL MONDAYSLAMDOT, INC.

ANGIE HATCHER - SLEDGEKNOX AREA RESCUE MINISTRIES

The Casual Pint Downtown(865) 951-2160www.thecasualpint.comShopping: Specialty

The Peoples Bank(865) 474-6363www.thepeoplesbanknow.comFinancial Services: Banks

Total Office - New & Used Office Furniture(865) 898-6678www.totalofficetn.comShopping: Furniture

Tru Staff(865) 558-5960www.trustaff.comEmployment, Career, & Staffing Services

UBS Financial Services, Inc.(865) 329-1279www.ubs.com/team/morrisFinancial Services: Investments

K N OX V I L L E C H A M B E R | 68

TWO WAY TIE!

BRENT CHRISTIANCAPITAL FINANCIAL GROUP, LLC

Page 3: September 2012 Commerce

The Casual Pint Downtown(865) 951-2160www.thecasualpint.comShopping: Specialty

The Peoples Bank(865) 474-6363www.thepeoplesbanknow.comFinancial Services: Banks

Total Office - New & Used Office Furniture(865) 898-6678www.totalofficetn.comShopping: Furniture

Tru Staff(865) 558-5960www.trustaff.comEmployment, Career, & Staffing Services

UBS Financial Services, Inc.(865) 329-1279www.ubs.com/team/morrisFinancial Services: Investments

See “BANG” on pg. 70

K N OX V I L L E C H A M B E R | 69K N OX V I L L E C H A M B E R |

The Knoxville Chamber & Innovation Valley:Offering Community More Bang for Its Buck

The Knoxville Chamber and its economic development arm, In-novation Valley, provide critical services to both Knox County and the City of Knoxville and receive public funding for those specific services. However, the majority of the operating funds for both organizations come from the private sector, through either mem-bership dues or private investors. This allows the Chamber and

Innovation Valley to offer far more to taxpayers than what the city or county could offer if they handled the same services within their administrations without the benefit of private dollars.

In order to better understand the magnitude of the public-private partnership managed by the Chamber and Innovation Valley, it is important to know the roles each organization plays.

Innovation Valley is a regional economic development initiative led by the Knox-ville Chamber’s economic development staff which also includes the Oak Ridge Economic Partnership, the Blount County Chamber of Commerce, the Loudon County Economic Development Agency, the Roane Alliance, and the Tellico Reservoir Development Agency. Ultimately, Innovation Valley is tasked with the economic growth of the region, and it does this by recruiting new companies to the area, marketing the region globally, retaining existing businesses and helping them expand, and identifying current and future workforce needs, among a few other functions.

While the Knoxville Chamber is a membership organization and is focused on providing its member businesses with products and services to help them grow, it also fulfills many functions that are not specific to its membership base. These include serving as a clearinghouse for newcomer calls and information, and pro-viding research and demographic information to various constituencies.

Both organizations are providing fundamental services to Knox County and the City of Knoxville that would cost taxpayers much more if they were handled within the structure of government.

PUBLIC FUNDING CITY OF KNOXVILLE: Innovation Valley $400,000 Chamber $140,000

KNOX COUNTY: Innovation Valley $125,000 Chamber $80,000 TOTAL: $745,000

NEW BUSINESS RECRUITMENTInnovation Valley and Chamber executives ensure the area stays competitive

when it comes to bringing prospective businesses to East Tennessee. As a private non-profit, Innovation Valley offers those businesses a priceless commodity that government officials cannot: confidentiality.

Government officials, both elected and appointed, are prohibited by state law from entering into non-disclosure agreements. This requires chambers of com-merce and economic development agencies to be the first-line of interface with a recruit until the company is ready to be known.

“Confidentiality is key for many economic development prospects. There are situations where we work with a consultant who cannot divulge the name of busi-ness that is considering Knox County for an expansion until late in the recruitment process,” Executive Vice President Rhonda Rice said. “Think about it. If company ‘X’ is considering leaving city ‘Z’ to come to Knox County, they don’t necessar-ily want their intentions and explorations to be public record. This becomes even more of an issue if it is a publicly-traded company. There are many layers to re-

Page 4: September 2012 Commerce

K N OX V I L L E C H A M B E R | 70

“BANG” continued from pg. 69

cruitment, and being able to assure confidentiality is a basic need,” Rice continued.This doesn’t mean that the economic development efforts are hidden behind

a veil of secrecy. “We meet with our local elected leaders every other week and make sure they know what potential industries are saying about Knoxville and Knox County, what they see as our strengths, weaknesses, and what we can do to make our local job market even stronger,” said Rice.

BUSINESS RETENTION & EXPANSIONOver the past fiscal year, members of the Chamber’s economic development

team have visited more than five-dozen local companies, shown available prop-erties and discussed relocation with nearly 20 different prospects, and played a role in the creation of more than 1850 jobs in the Knox County area through expansions.

“We want our business community to be able to have candid conversations about what they need in order to thrive in Knox County. Sometimes it means we’re helping a company file for environmental permits, sometimes it’s helping an organization address a specific workforce issue,” Doug Lawyer, the Cham-ber’s vice president of economic development said.

MARKETING THE REGIONInnovation Valley takes the lead marketing the Knoxville region to the world,

touting the region as the place for high-tech, high paying jobs with an abun-dance of resources available through the Oak Ridge National Laboratory, University of Tennessee, and other facilities. Through one-on-one meetings with businesses and site selection consultants, trade shows, and well-targeted media buys, Innovation Valley presents a favorable impression of the region to the global business community.

Innovation Valley’s marketing efforts went a step further in April when it hosted a two-day “Green Carpet Tour” for several site selection consultants, tout-ing the region’s assets to a group of individuals charged with helping companies find locations to relocate to or expand in.

In addition to marketing the region to businesses and site selection consul-tants, the Chamber also markets the region to po-tential residents. Part of this role happens organically, as the public is conditioned to reaching out to the local chamber of commerce to solicit information about a given city or area. However, beyond just answering the phone calls and questions, the Chamber provides potential new residents with a wealth of resources and information via knoxvillechamber.com and its relocation packet mailers. Requests come from individuals, companies making out of market hires, and realtors looking for information to provide clients.

PROVIDING DEMOGRAPHICS AND DATALast year the Chamber fielded more than 2,000 informational requests from the

community and area businesses. Some of these requests include demographic analyses and targeted business lists that can take several hours to fill. Additionally, the Chamber frequently meets one-on-one with Knoxville and Knox County busi-nesses in consultations related to crafting an information request and understand-ing what data is available.

“No two people request exactly the same thing. We allow them to customize their request to their line of work or industry,” Chamber research specialist Joe Riley said. “You’re looking at somewhere between 20-30 minutes per request of leg-work that we do here in the office, on average.”

Additionally, Riley handled 189 Certificates of Origin for area businesses that export goods internationally. Trade law requires that chambers of commerce issue these certificates for international trade and the Chamber’s involvement eases the process for East Tennessee companies looking to do business overseas.

ADDITIONAL RESOURCES TO GROW BUSINESSESThere are a number of services the Knoxville Chamber offers to the public and

business community-at-large, at no cost to the individual, business, or taxpayer.“Throughout its 175-year history, the Knoxville Chamber has been the voice of

the business community as a whole. The Chamber does a lot more than what is outlined in the contract with Knox County or in our relationship with the City of Knoxville. We take our role to grow business very seriously,” Chamber CEO Mike Edwards said.

Chamber programs like Chamber Member MD are free to all businesses in the community and offer a way for small business owners to analyze their business

See “BANG” on pg. 71

Page 5: September 2012 Commerce

K N OX V I L L E C H A M B E R | 71K N OX V I L L E C H A M B E R |

“BANG” continued from pg. 70

operations and understand best practices. The University of Tennessee business school and business leaders such as Joe Weller, the former CEO of Nestle, en-dorsed the online analysis. Chamber Member MD is a proprietary tool and gives Knox County’s business community a leg-up.

“We’re here for businesses, whether they’re exploring an expansion or just try-ing to keep the lights on. We have world-class tools at the Chamber to help them make informed decisions and connect them with the resources they need to suc-ceed and sur-vive,” Cham-ber President and CEO Mike Edwards said.

Chamber Programs such as Pro-pel, which is led by Chamber Business Development Manager Doug Minter, give one-on-one counseling to a wide array of young businesses. It assists start-ups still finding their niche in the market to established small businesses looking to make a bigger splash. Propel’s accompanying Mentor/Protégé Program has de-livered a transformational impact on the small business community as well. In just three years, the program, which pairs young start-ups with established business leaders, has helped those businesses grow by more than 50 jobs while delivering $20 million in economic impact for East Tennessee.

THE RETURN ON INVESTMENTIn the end, it is all about job creation. That is what the Chamber and Innovation

Valley are charged with by the city, county, and the community-at-large. The more Knox County residents that are working, the more economically prosperous the region is. Between June 2011 and June 2012, more than 6,000 jobs were cre-

ated in Knox County, according to the most recent data available from the United States Bureau of Labor Statistics. The Knoxville Chamber played a role in assist-ing companies with several expansions that helped bring a good number of those new jobs to the region.

“We take our relationship with local government very seriously and do ev-erything in our power to ensure taxpayers receive every last bit of value from each dollar that gets spent promoting the community and helping grow our local economy,” Rice said.

Knoxville and Knox County taxpayers received a great return on their invest-ment from the Chamber and Innovation Valley’s economic development efforts. In Knox County, a new job was created during the 2012 fiscal year for every $120 in public funding in economic growth.

Jobs Public Funding Dollars/Community Created* To Chamber Job

Knox/Knoxville 6134 $745,000.00 $121.45

Hamilton/Chattanooga 901 $800,000.00 $887.90

Nashville Metro 3850 $300,000.00 $77.92

Shelby/Memphis 5481 $1,550,000.00 $282.80

*Source: U.S. Bureau of Labor Statistics (6/11 - 6/12)

Knox County’s investment in the Chamber and Innovation Valley is done through defined service contracts. That means every dollar the county contributes has a defined use. Each quarter the Chamber and Innovation Valley update the county with a report that offers details on site visits, meetings with existing businesses, and marketing efforts the Innovation Valley team does on behalf of the community to reach prospects. Similar reports are conducted with city leaders to keep them abreast of Knoxville’s standing in the competitive world of business recruitment.

While the funding the Chamber and Innovation Valley receive from city and county government is significant, it is enhanced by membership dues and inves-tors from the private sector that recognize the importance of economic growth for our community. The public-private partnership enables the organizations and our political leaders to ensure the taxpayers are getting more bang for their buck when it comes to economic growth initiatives.

After months of conversations and consultation between city of Knoxville Mayor Madeline Rogero, Knoxville Chamber officials, and the executives at Kimberly-Clark, the company recently announced it is committed to Knoxville and will remain here when it vacates its Summit Hill address in the coming months.

“We worked closely with the company and a number of site selection consultants to ensure Knoxville had every opportunity to keep the company and its employees here,” Doug Lawyer, the Chamber’s vice president of economic development said. “Kimberly-Clark is a stalwart of our corporate community and we did not want to lose them to another market,” he continued.

Knoxville’s City Council recently approved a measure that will spur Kimberly-Clark to invest $4.5 million in facility upgrades to the former Goody’s Headquarters offices in West Knoxville. In return, the city will freeze personal property taxes for the For-tune 500-company for five years.

“To see a unanimous city council vote, that’s a great sign our city council really

Kimberly-Clark Staying in Knoxvilleunderstands the value of retaining a great company like Kimberly-Clark brings to our community,” Knoxville Chamber executive vice president Rhonda Rice said. “There are dozens of communities that would fight tooth and nail to land an organization of Kimberly-Clark’s caliber. We’re thrilled they’ll be staying in Knoxville.”

The Chamber economic development executives worked closely with Kimberly-Clark as the company eyed a move into a more appropriate facility outside downtown Knoxville. Office space at the former Goody’s Headquarters is now full. A 360,000 square-foot distribution center adjoining the offices is actively being marketed to distribution prospects.

With more than 300 employees at an annual wage of more than $80,000, the high-paying jobs are a great value, bringing more than $60 million in economic impact to the Innovation Valley. The payment in lieu of taxes agreement that Knoxville’s City Council approved is valued at $200,000.

Page 6: September 2012 Commerce

K N OX V I L L E C H A M B E R | 72

Several Knoxville Chamber staff members recently attended the annual Ameri-can Chamber of Commerce Executives Convention in Louisville, Kentucky. Con-vention materials covered everything from best practices in Chamber program-ming to effectively communicating within a large membership organization.

“It is always good to go to the ACCE Convention in order to stay on top of trends and issues as they relate to operating an effective chamber of commerce,” said Mark Field, senior vice president. “We are excited about some of the pro-grams and benefits we learned about from our peers and look forward to integrat-ing them into what we do here in Knoxville,” he continued.

Doug Minter, the Chamber’s business development manager, headlined a ses-sion at the annual conference on inclusion in the workplace. His workshop, called “Growing Inclusively” discussed what East Tennessee has done to practice inclu-sion in a market that is not as racially-diverse as others.

“It was an honor to represent East Tennessee and showcase all the program-ming we have in Knoxville to make our community as inclusive as possible for people of all backgrounds,” Minter said.

At the annual awards presentation, the Chamber’s Membership Development Manager Ashleigh Adkins was once again recognized as one of the top ten sales executives in the country. Adkins was ranked 7th in the nation for new member sales last year.

Organizationally, the Knoxville Chamber was recognized with a Silver ACE Award for communications excellence in the category of electronic communica-

Knoxville Chamber Recognized at National Convention

Pictured center is the Chamber’s Ashleigh Adkins, who was recognized by ACCE as the 7th ranked sales executive in the country. She is flanked by Roy Williams, chairman of the ACCE board of directors (left), and ACCE President Mick Fleming (right).

tions for iKnowKnoxville.com. The Silver Award recognizes communications pieces which surpass the fundamental standards and criteria of communications excellence.

Chamber Hosts Luncheon Featuring Senator Bob CorkerMore than 250 business leaders joined presenting sponsor Pinnacle Financial

Partners at a recent Chamber luncheon featuring United States Senator Bob Corker at the Crowne Plaza in downtown Knoxville.

“I don’t think there is anything I like doing more than talking to a chamber group like this,” Corker said. “I thank you for your interest in the chamber of commerce and what Mike Edwards and his team are doing to promote Knoxville. You all have done an outstanding job.”

Corker spoke primarily about fiscal issues, pointing to the country’s deficit as one of the largest issues facing our nation’s future. Specifical-ly, the former Chattanooga mayor said government spending needs to be reined in and that could mean changes to programs like Medicare.

“A big part of what’s unfortunately happened is that people have been willing to put their head in the sand. Politicians would rather somebody else deal with the issue after they’re gone,” Corker said. “If you want to see havoc in America and you want to see some of the same issues we’ve seen in Europe, just let this issue keep going.”

Corker said he has a bill written that he believes will help fix what many see as a fiscal cliff in the country’s future. The Senator didn’t elaborate on the bill’s details

but said his office was plan-ning a push after the Novem-ber election.

“We are one fiscal reform package away from being able to focus on being a great nation,” Corker said.

After taking several ques-tions from the crowd ranging from his thoughts on Obam-acare, to the possibility of a balanced budget amend-ment, Corker was presented with an award by the United States Chamber of Com-merce. The award recognized Corker for having a voting

record which was 100% in line with what the U.S. Chamber considers business-friendly.

Rob McCabe and Nathan Hunter of Pinnacle Financial Partners with Senator Bob Corker, Mike Edwards, and Mitch Steenrod.

Sponsored by:

Page 7: September 2012 Commerce

K N OX V I L L E C H A M B E R | 73K N OX V I L L E C H A M B E R |

Innovation Valley and the state of Tennessee were in the driver’s seat in front of just under 1,000 automotive industry officials and executives at the recent Center for Automotive Research Management Briefing in Traverse City, Michigan.

Doug Lawyer, the Chamber’s vice president for economic development and current Chairman of the Tennessee Economic Partnership, attended the annual conference. Lawyer stressed Tennessee’s prominent position in the industry and had the chance to share some of the opportunities available for automotive component companies in Tennessee.

“It is the best opportunity to network and meet automotive professionals each year,” Lawyer said. “I had the chance to speak with several individuals about Tennessee and what we have available from a facility, technology, and workforce standpoint.”

Lawyer said the National Transportation Research Center, carbon fiber research, and East Tennessee’s automotive history were all hot topics in his conversations.

“In addition to the Nissan, General Motors and Volkswagen manufacturing facilities, we also boast more than 900 automotive suppliers in the state of Ten-nessee,” he said.

Tennessee’s governor was also a part of the conference for the first time in its history. At a reception for about 100 automotive executives, Gov. Bill Haslam spoke of Tennessee’s business-friendly attitude and told the story of

how his Tennessee-based family business, Pilot Flying J, grew from one gas station to an employer of over 20,000 today. Haslam is one of just a handful of governors not rep-resenting Michigan that have been invited to speak at the C.A.R. management briefing.

“The Tennessee Economic Partnership worked for more than a year to get a Ten-nessee representative in front of an audience at the conference,” Lawyer said. “It’s the Michigan governor’s home-turf so it isn’t easy to get someone from another state on the agenda. Governor Haslam was terrific and the reception hosted by the Tennessee Economic Partnership was very well received by everyone at the conference.”

Innovation Valley and Tennessee Showcase Auto Opportunities

Jesse Smith and Doug Lawyer of Innovation Valley and the Knoxville Chamber joined Gov. Bill Haslam at the C.A.R. Management Briefing in Traverse City, Michigan.

The first Sam’s Club opened its doors in 1983. Today, Sam’s Club operates in nearly 600 locations nationwide. Sam’s Club is the nation’s eighth-largest retailer and a leading Membership warehouse club offering superior products and services to more than 47 million Members in clubs across the U.S. as well as in Brazil, China, and Mexico.

Sam’s Club makes savings simple for small business owners, last year saving members more than 59% on office supplies versus traditional retailers. An annual membership fee provides access to those products and other services, such as free cost comparisons, Click ‘N Pull, and access to capital through a SBA loan program that can help a small business owner succeed.

Cellular Sales operates Verizon Wireless retail locations throughout the United States. Here in Cellular Sales’ hometown, a team of dedicated small business professionals provides its East Tennessee business clients concierge-level wireless account service.

“We want to make you more productive as a business person. We’re going to find solutions to your problems and save you money,” said Will Davis, a business account manager at Cellular Sales.

Cellular Sales owes their success to a simple and unrelenting focus on total customer satisfac-tion and they’d love to show your business that dedication. For more information or to contact them for a consultation, head to CellularSales.com.

Small businesses are built on smart decisions and Comcast Business Class is committed to providing businesses the resources they need to make those decisions as quickly as they can. Comcast Business class offers reliable internet, phone, and TV services.

“We really have a competitive edge we can offer businesses,” Jennifer Brown, a business services account executive with Comcast said. “Everything with technology is the faster the better. We can give you that speed while still providing reliability.”

For more information or a free consultation, contact your local account executive or see how Comcast’s internet speeds compare to the competition at www.business.comcast.com.

Page 8: September 2012 Commerce

K N OX V I L L E C H A M B E R | 74

MONTHLY ECONOMIC INDICATORS (July 2012)

WORKFORCE

INFLATION RATES - CONSUMER PRICE INDEX (CPI) - ALL ITEMS

HOUSING MARKET

RESIDENTIAL BUILDING PERMITS

AIR SERVICE (MCGHEE-TYSON AIRPORT)SALES TAX REVENUE - STATE & LOCAL ($)

RETAIL SALES - NATIONAL (IN MILLIONS OF DOLLARS)

NOTE - Knoxville MSA includes: Anderson, Blount, Knox, Loudon & Union Counties

Resident Labor ForceKnox Co.Knoxville MSA TennesseeU.S.

Non-Ag EmploymentKnoxville MSATennessee

Available LaborKnox Co.Knoxville MSATennessee

Unemployment RatesKnox Co.Knoxville MSATennesseeU.S.

July 2012243,050383,400

3,141,500156,526,000

336,0002,677,300

18,02029,670

305,620

6.77.08.88.6

June 2012243,790384,570

3,152,900156,385,000

336,9002,683,500

17,88029,440

301,200

6.77.08.78.4

July 2011240,840377,830

3,144,800154,812,000

326,1002,644,900

20,09032,880

338,090

7.57.99.69.3

% ChangeJune ’12-

July ‘12-0.3-0.3-0.40.1

-0.3-0.2

0.80.81.5

0.00.00.10.2

% ChangeJuly ’11-July ‘12

0.91.5

-0.11.1

3.01.2

-10.3-9.8-9.6

-0.8-0.9-0.8-0.7

Sources: Tennessee Dept. of Labor & Workforce Development/U.S. Bureau of Labor Statistics

Source: Knoxville Area Association of Realtors

Source: Metropolitan Knoxville Airport Authority

*Southeast Region Avg.U.S. Avg.

July ’11-‘121.41.4

June ’11-‘121.61.7

July ’10-‘114.23.6

% ChangeJune ’11-

July ‘12-0.2-0.3

% ChangeJuly ’10-July ‘12

-2.8-2.2

Source: U.S. Bureau of Labor Statistics *South – City Size Class B/C

Source: Tennessee Dept. of Revenue

Source: U.S. Census Bureau – Advance Monthly Retail Trade Report

State Sales TaxKnox Co.Knoxville MSATennessee

Local Sales TaxKnox Co.Knoxville MSA

July 201248,004,19667,109,685

613,858,234

13,181,63317,774,727

June 201247,458,31866,464,916

589,616,339

13,189,97018,398,079

July 201148,216,08567,753,483

594,270,774

13,759,09118,977,590

% ChangeJune ’12-

July ‘121.21.04.1

-0.1-3.4

% ChangeJuly ’11-July ‘12

-0.4-1.03.3

-4.2-6.3

CategoryTotal Retail SalesBuilding MaterialsClothing StoresElectronics & AppliancesFood & Beverage StoresFood Svcs & Drinking PlacesFurniture & Home FurnishingsGasoline StationsGeneral Merchandise StoresHealth & Personal Care StoresMiscellaneous StoresMotor Vehicle & Parts SalesNon-store RetailersSporting Goods/Books/ Hobby/Music

July 2012401,988

25,00318,242

7,79553,26045,262

7,97545,88950,29522,065

9,98676,32632,931

6,959

June 2012405,820

27,00918,618

7,63253,16245,398

7,77345,70651,21322,13110,39776,24733,289

7,245

July 2011388,749

24,25617,776

7,88253,00543,088

7,31647,49350,99021,909

9,55970,50328,531

6,441

% ChangeJune ’12-

July ‘12-0.9-7.4-2.02.10.2

-0.32.60.4

-1.8-0.3-4.00.1

-1.1

-4.0

% ChangeJuly ’11-July ‘12

3.43.12.6

-1.10.55.09.0

-3.4-1.40.74.58.3

15.4

8.0

Residential ClosingsResidential InventoryMedian Residential Price

July 20121,034

14,862$148,125

June 20121,115

14,767$138,600

July 2011897

15,718$149,500

% ChangeJune ’12-

July ‘12-7.30.66.9

% ChangeJuly ’11-July ‘12

15.3-5.4-0.9

Knoxville (City)

Knox Co.

Knoxville MSA

Tennessee

TotalSingle-FamilyMulti-Family

TotalSingle-FamilyMulti-Family

TotalSingle-FamilyMulti-Family

TotalSingle-FamilyMulti-Family

June 2012*13130

108108

0

131131

0

1,7851,143

642

June 201134340

95950

118118

0

1,173977196

% ChangeJune ’11-June ‘12

-61.8-61.8

0.0

13.713.70.0

11.011.00.0

52.217.0

228.6

*All 2012 building permit data is preliminary and therefore subject to revision throughout the year.

Sources: U.S. Housing & Urban Development – SOCDS – State of the Cities Data Systems; U.S. Census Bureau – Building Permits Survey

PassengersCargo

May 2012157,152

8,076,221

April 2012142,564

7,128,486

May 2011156,578

7,499,503

% ChangeApril ’12-

May ‘1210.213.3

% ChangeMay ’11-May ‘12

0.47.7

Page 9: September 2012 Commerce

K N OX V I L L E C H A M B E R | 75K N OX V I L L E C H A M B E R |

The protégés are not the only ones that benefit from the Chamber’s Mentor/Protégé Program. Obviously the protégés are able to take advantage of their mentor’s experience and maybe skip some of the pitfalls the mentor

had to experience on his/her way to success. But the program also gives the mentors an opportunity to reflect and realize all the challenges they were able to surmount.

“As a small company you are not always in the position to do certain things that may offset or disrupt your operation. That is where having a mentor comes in. You are able to get a different spin and insight on various issues,” Gary Johnson of CG Services Corporation said.

That same benefit carries over to Johnson’s mentor, Cavanaugh Mims, who gets a peek back some of the obstacles his business has overcome.

“A good mentor/protégé program allows both firms to ‘peek in’ to how successes are accomplished and to ‘bring home’ those skill-sets and tools that will make their business even more successful. Access to systems and leadership are important, but often it is the little things…the details…that can be just as valuable to both firms,” Mims said.

In the case of CG Services’ partnership with Visionary Solutions, the

two businesses are complementary to each other, and the mentor/protégé rela-tionship enables them both to take advan-tage of opportunities in the complex world of government con-tracting. Both compa-nies work heavily in government contracts and waste manage-ment for the facilities in Oak Ridge.

“This enables us to better assist with meeting growth objectives and providing helpful preventative tips in business management and government contracting,” Mims said.

For more about PROPEL’s Mentor/Protégé Program, call program director Doug Minter at (865) 246-2662 or email him at [email protected].

PROPEL MENTOR/PROTÉGÉ PROFILEProtégé: Gary Johnson, CG Services CorporationMentor: Cavanaugh Mims, Visionary Solutions

Cavanaugh Mims Gary Johnson

The Knoxville Chamber con-gratulates Casey and Margarita McClure of Triple 8 Corporation, this year’s winner of the Tennes-see Small Business Development Center’s Rising Star award.

Triple 8, a cloth diaper com-pany, has grown from a spare room in the couple’s basement to a West Knox County operation that plans to distribute 600,000 diapers this year in more than 20 countries. The company sells diapers under the Swaddlebees and Blueberry brands.

In addition to working closely with TSBDC, Triple 8 is a mem-ber of the Chamber’s Mentor/Pro-tégé Program and is paired with mentor-company, Radio Systems Corporation.

Chamber Protégé wins TSBDC’s Rising Star Award

Larry Rossini, Director of the Tennessee Small Business Develop-ment Center presents Casey and Margarita McClure with 2012’s Rising Star Award.

Triple 8 has a corporate headquarters and distribution center in West Knox County off Outlet Drive.

Page 10: September 2012 Commerce

K N OX V I L L E C H A M B E R | 76

After startling successful results in a pilot program funded by a Knoxville business leader, the Community Schools concept is growing in Knox County. At a recent Premier Partner event at Pond Gap Elementary sponsored by Lewis, King, Krieg, and Waldrop, P.C., Knoxville Chamber members heard more about the concept, how it works, and how to get involved.

“Our sponsorship of this event represents an on-going commitment to education,” David Draper

of Lewis, King, Krieg, and Waldrop, P.C. said.Local business leader, Randy Boyd, initially became engaged in the discussion

on public education reform when he helped launch knoxAchieves, which eventually grew into the tnAchieves program. The mission of tnAchieves is to increase higher education opportunities for Tennessee students by providing last-dollar scholar-ships for community college and mentor guidance.

However, the founder of Radio Systems Corporation quickly realized that some-thing needed to be done for students before they reached their senior year in high school. “I realized providing an opportunity for a student as they left high school was just too late,” Boyd said.

So Boyd started doing research and even considered opening a charter school in Knox County. After more conversations with educational professionals and site visits, he realized a charter school wouldn’t solve the root of the problem. He saw students were distracted and unable to excel in the classroom because of hunger and other social issues that were taking place outside of their time in the school.

With the help of the University of Tennessee and Knox County Schools, Boyd set out to establish the first Community School in Knox County. It’s a place where students get meals, mentorship, as well as an education. It’s also uniquely a place where parents can get access to laundry facilities, English-language classes, as well as courses to help them get on track for a G.E.D.

It didn’t take long for the program to make an impact. In the first year of the pilot program, Pond Gap saw absences decrease 34-percent, student discipline refer-rals fell 77-percent, and nearly half of the students in the program improved overall grades.

“It’s just amazing what we’ve seen happen,” Susan Espritu, Pond Gap’s princi-pal said. “We worked for eight years to try to get a PTA started. After the com-munity school model came in, parents and neighbors saw the school on television and in the news and felt a sense of pride. This year, they came to us and said, ‘we want a PTA!’”

Pond Gap does it all without additional tax dollars. Randy Boyd has taken on financial responsibility for the program which costs just under $12 per student/per day. For the school year, the total came to approximately $150,000 with additional costs for summer programming.

The program is now expanding to three additional Knox County Schools. While Boyd realizes not everyone is able to help the program financially, he encouraged the attendees to participate in some way.

“If you don’t have the money but have the time, come read to the kids for an hour. You’ll get more back than you could ever imagine,” he said.

To find out more about the Community Schools concept, contact Jennifer

Boyd, Espiritu Share Community Schools Concept with Premier Partners

Boyd told the crowd the teachers at Pond Gap and schools like it are in a very chal-lenging situation. Nearly 90-percent of the student body receives free or reduced price lunches.

Chamber Board Chairman Mitch Steenrod; David Draper of Lewis, King, Krieg, and Wal-drop, P.C.; Radio Systems founder Randy Boyd; and Pond Gap Principal Susan Espiritu.

Evans at the Knoxville Chamber. For information on tnAchieves, head to www.TNAchieves.org.

Sponsored by:

EMPLOYEE OF THE MONTHThe Knoxville Chamber’s June Employee of the Month, Terry Ta-bors, presents August’s Employee of the Month, Doug Minter, with the award. Minter is the business development manager for the Chamber and Tabors is the Cham-ber’s accounting manager.

Page 11: September 2012 Commerce

K N OX V I L L E C H A M B E R | 77K N OX V I L L E C H A M B E R |

PREMIER PARTNER PROFILE

Pileum CorporationWhen it’s time to assess or

upgrade a company’s informa-tion technology, it’s one thing to get the flashiest, latest, and greatest technology; it’s another to ensure the investment is going to pay off and give the organiza-tion a positive return.

Pileum Corporation doesn’t believe in selling cool technology just because it’s cool. Technol-ogy should be used to make businesses more profitable either by saving the client money, by making the business more efficient, or by allowing the busi-ness to provide better service. That mindset has helped Pileum become one of East Tennessee’s fastest growing information technology service providers.

“We work alongside our clients based on their needs. We have companies of all sizes and verticals; we service five employee companies to organizations with 50,000 employees. We specialize in helping analyze and tackle complex projects with our real world expert knowledge and resources,” Sean Camp of Pileum said.

A dedicated team of engineers delivers value by working side-by-side with Pileum’s “solutions architects”, former CIOs and technology directors. The staff has years of experience wearing management’s shoes in various industries. Clients benefit from that experience and it also helps Pileum understand their diverse needs and how to cost-effectively ensure those needs are met.

Headquartered in Jackson, Miss., Pileum opened its Knoxville office in 2008 and has grown rapidly through tough economic times. Pileum services over 450 ac-counts in the Southeast and its fastest growing market is East Tennessee.

“We do business locally. Our customers stem from where our offices are,” Camp said. “That business model has always worked for us because our local offices deliver the most value to our customers.”

Pileum prides itself on staying with customers throughout the process, from as-sessment of needs, to installation, to proactive maintenance aimed at ensuring their clients stay up to speed in the face of natural disaster or other disruption. Pileum’s suite of services includes:

• IT Outsourcing• IT Consulting• Business Continuity/Disaster Recovery• Networking“Our biggest assets are our customers. We focus on them to ensure we develop

long-standing relationships. It’s simple, when we earn a customer and their trust, we don’t lose them,” Camp said.

To set-up a consultation with Pileum, contact Sean Camp at (865) 293-0013.

Chamber Receives Grant from Messer Foundation

Thanks to a generous grant from the Messer Foundation, the Knoxville Chamber is adding new technology to its arsenal to help improve the local workforce as well as expand the reach of programming geared toward busi-ness development and inclusion.

Andy Lorenz, vice president and general manager of Messer Construction Company, presented a $25,000 grant to the Chamber’s Partners Initiative Fund at a recent board meeting. The money will go toward the purchase of a pair of 323 Link systems. These video recording devices will allow educators, lecturers, or presenters an easy way to record and upload educational videos to the web.

“At Messer we know that giving back contributes to the overall well-being and long-term vibrancy of the communities in which we live, work, and raise our families,” Lorenz said. “One of the ways we build community is by investing our time and dollars in high impact organizations and initiatives like The Partnership Initiatives Fund.”

“With new technol-ogy reaching students and our workforce every day we saw an opportunity to expand a lot of the great programming our community already offers. We’re thrilled the leader-ship at Messer and the Foundation chose our project and continue to do everything they can to make Knoxville a stronger place to do business,” Evans said.

Initial plans call for one of the 323 Link units to be used primarily in a classroom setting with the Knox County Schools. That system will focus on recording STEM (science, technology, engineering, and mathematics) professionals. For example, if a Messer engineer tells a group of high school students how they use engineering in their job, the experience and learning opportunity will now have the ability to reach hundreds of students, not just the host classroom.

The other system will be used predominantly with the Chamber’s business development and inclusion efforts. The systems will afford more opportuni-ties for entrepreneurs, small businesses, and others to reach resources that otherwise may have been limited to participation in a given event.

“Access to information and resources that support education, workforce development, and economic inclusion are critical to our community’s suc-cess. They also make up the criteria we look for in selecting grant recipients for our Foundation,” Lorenz said.

The Chamber’s Vice President of Public Policy and Education Jennifer Ev-ans pitched the Chamber’s plan to the Messer Foundation along with Doug Minter, the Chamber’s business development manager in June. The 323 Link systems are currently being built and are expected ready for use by the end of September.

• Datacenter Design• IT Security• Wireless• VoIP

EMPLOYEE OF THE MONTH

Page 12: September 2012 Commerce

UPCOMING EVENTS

K N OX V I L L E C H A M B E R | 78

America’s Best Business Address® just drastically improved the look and feel of its home on the World Wide Web. The Knoxville Chamber recently unveiled a redesigned and reformatted KnoxvilleChamber.com that offers more opportunities to share your business’s success stories and interact with East Tennessee’s business community.

Web users looking for information about Chamber events, economic devel-opment, education, or relocation will likely find the new website much more appealing and better-organized.

“We took a step back and looked at our website from a user’s perspective,” said Lori Fuller, vice president of marketing and events for the Chamber. “Our website has a diverse audience of users and our team spent a great deal of time making sure it was organized with those different groups of visitors in mind. We also recognized that we needed to talk to the users, not at them. The conversational tone throughout the site is a result of that,” she continued.

Designed by Bluegill Creative, the new KnoxvilleChamber.com offers tradi-tional chamber information mixed with great visual content, and social media integration. The site is divided into nine different sections, appealing to the vari-ous audiences that utilize it. New content includes the “Member News” area of the website, allowing members to submit press releases via an online submis-sion form, and member testimonials which rotate throughout each section of the site.

The site’s overall look is complementary to the Chamber’s online business directory, iKnowKnoxville.com, which was launched in November 2010.

Chamber Unveils More Interactive, Redesigned Website

SEPTEMBER 11New Member Orientation4 – 6 p.m.Knoxville Chamber, 17 Market Square

Sponsored by:

SEPTEMBER 13a.m. Exchange 8 – 9 a.m.Image Matters, 3017 Sutherland Ave

Sponsored by:

Catering Sponsor:

SEPTEMBER 19Bright Ideas Seminar: Cash Flow – The Lifeblood of Your BusinessPresented by: Michael Ownby, B2B CFO11:30 a.m. – 1 p.m.Knoxville Chamber, 17 Market Square$25 for members/$35 for non-members (boxed lunch included)

Sponsored by:

Co-Presented by:

SEPTEMBER 25Schmoozapalooza4 – 7 p.m.Knoxville Civic Coliseum, 500 Howard Baker Jr. Ave.Tables in Tabletop Expo: $200 members/$300 non-membersAttendee Registration: $10 (members can save $5 by pre-registering online prior to September 21)

Sponsored by:

Media Sponsors:

SEPTEMBER 27Exclusive Premier Partner Event w/ Featured Speaker Holly Warlick, Head Coach UT Lady Vol Basketball7:30 – 8:30 a.m.Calhouns on the River, 400 Neyland Drive