tennessee economic development guide 2011-12

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Jobs Are Job One International Intrigue Foreign investments help drive growth The Road Ahead Nissan, Volkswagen accelerate production 2012 | tnedg.com TENNESSEE ECONOMIC DEVELOPMENT GUIDE

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Tennessee offers a wide array of advantages to businesses considering a startup or relocation within its borders. The following section offers a brief statistical look at the state, from transportation resources to job training opportunities.

TRANSCRIPT

Jobs Are Job One

International Intrigue

Foreign investmentshelp drive growth

The Road AheadNissan, Volkswagen accelerate production

2012 | tnedg.com

tennessee economic development guide

T n e d g . c O m 3

T n e d g . c O m 3

WorkstyleInciting Innovation 18Tennessee program encourages entrepreneurship, ‘knowledge economy’

The Road Ahead 22Volkswagen plant revs up Tennessee’s auto industry

Shaping a Bright Future 28Tennessee is global leader in chemicals, plastics

Foreign Intrigue 30Foreign investment, exports drive growth in Volunteer State

Where the good Life Begins 34Tennessee’s advantages make it a haven for retirees

Table of Contents Continued on Page 5

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On The cOveR nissan is producing its zero-emission LeAF vehicle in Tennessee. Photo by brian McCord

tennessee economic development guide

T n e d g . c O m 5

T n e d g . c O m 5

InsightOverview 11

Business Almanac 12

Business climate: Jobs Are Job One 16

energy/Technology 38

Transportation 44

health 51

education 54

Livability 60

gallery 66

economic Profile 70

Through the Lens 72

51 54

38

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All or part of this magazine is printed with soy ink on recycled paper containing 10% post-consumer waste.

Please recycle this magazine

T n e d g . c O m 7

Tellico Lake.Excellence Begins on

Discover what the boating industry already knows.Companies like Sea Ray, MasterCraft, Yamaha, Hyrda-Sports, Trophy, Lund Boats and Christensen Shipyards, Ltd. have all taken advantage of the quality developments and the natural beauty that Tellico offers. Tellico has 2,000 reasonably priced acres for consideration by companies seeking a strategic and attractive location for corporate offices, manufacturing and distribution facilities. Visit www.tellico.com or contact Ron Hammontree to find out how Tellico can provide a prestigious location for your new manufacturing or distribution facilities.

The site is located on US Hwy. 72, two miles from US Hwy. 411. We are 20 minutes from I-75 and less than 30 minutes from I-40. The site is served by CSX Transportation.

Premier Industrial sites in the greater Knoxville Oak Ridge Innovation Valley

www.tellico.com Tellico Reservoir Development Agency

Ron Hammontree 59 Excellence Way | Vonore, TN 37885 (865) 673-8599 | Fax: (423) 884-6869

T n e d g . c O m 7

cOnnecTIOnS

LifestyleFind out what it’s like to live here and what makes the community such a special place to be.

ONLINEl iFeST y le | workST y le | d igging deeper | V ideo | l ink To u S | adVerT iSe | c onTac T u S | S iTe map

Workstylea spotlight on the region’s innovative companies

See the videoour award-winning photographers give you a virtual tour of unique spaces, places and faces.

SITe guIde >>

Find available commercial

and industrial properties with

our searchable database.

SucceSS

BReedS SucceSS >>

meet the people who set the

pace for business innovation.

dIg deePeR >>

plug into the community with

links to local websites and

resources to give you a big

picture of the region.

demOgRAPhIcS >>

a wealth of demographic

and statistical information

puts the community at

your fingertips.

guIde TO SeRvIceS >>

links to a cross section of

goods and services special

to the community

dIgITAL mAgAzIne >>

read the magazine on your computer, zoom in on articles and link to advertiser websites.

gO OnLIne

Tnedg.cOm

an online resource at Tnedg.cOm

Jobs AreJob One

International Intrigue

Foreign investmentshelp drive growth

The Road AheadNissan, Volkswagen accelerate production

2012 | tnedg.com

tennessee economic development guide

tennessee TenneSSee ecOnOmIc deveLOPmenT guIde

T n e d g . c O m 9

T n e d g . c O m 9

Digital Edition

Share with a friendeasily share an interesting article, stunning photo or advertisement of your business on facebook, twitter or via e-mail.

haVe a BLOG Or weBSite?embed the digital magazine into your site to add compelling information about the successful businesses located here, what it’s like to work here and why it’s a great place to live.

dO MOre than JUSt read aBOUt ithear from decision-makers at leading companies, see video of the region’s success stories and find links to useful demographic information and information sources.

tnedg.com

34 T E N N E S S E E E C O N O M I C D E V E L O P M E N T G U I D E T N E D G . C O M 35

Where the Good Life BeginsTennessee’s advantages make it a haven for retirees

Story by Betsy Williams

F rom mountains to metropolitan, Tennessee has something for every retiree’s taste.

“When we started looking for a place to retire, Tennessee just kept coming up at the top of our list,” says Ruth Harton, who with her husband, Steve, moved to Tennessee from Georgia following retirement. The couple bought a house in Tellico Village, one of the state’s premier retirement communities in Loudon County in East Tennessee. Tellico Village is in the foothills of the Great Smoky Mountains and features a lake, golf and a short drive to Knoxville.

“We can spend time on the lake with friends and then drive into Knoxville for dinner and the symphony,” Ruth Harton says. “There’s always something for us to do, or we can do nothing and just enjoy the view of the lake and

mountains from our porch.”Stephanie Myers of the Loudon County

Economic Development Agency isn’t surprised the Hartons are happy with their retirement choice.

“Living in Loudon County is a comfortable lifestyle that offers affordable, quiet, gorgeous country living with a quaint, small-town atmosphere adjacent to Knoxville’s cultural activities and the Great Smoky Mountains at our doorstep,” Myers says.

The Hartons are part of a growing demographic pursued by the state through its Retire Tennessee initiative. Retirees from around the country are encouraged to choose Tennessee for the state’s low cost of living – 10 percent below the national average – recreational and outdoor spaces, easy access to metropolitan areas and pleasant climate.

RETIRE TENNESSEEThe Tennessee Department of Economic and Community Development has launched Retire Tennessee, a program which promotes the state’s most retirement-friendly communities. The counties meeting the criteria – offering such amenities as public parks, cultural activities and health facilities – are Cumberland, Hamilton, Hardin, Henry, Jefferson, Lincoln, Loudon, Maury, Putnam, Roane, Robertson, Sullivan and Warren counties.For more, go to retiretennessee.org.

Many retirees choose to relocate to Tennessee because of the wealth of amenities and activities offered.

JEFF ADKIN S

34 T E N N E S S E E E C O N O M I C D E V E L O P M E N T G U I D E T N E D G . C O M 35 34 T E N N E S S E E E C O N O M I C D E V E L O P M E N T G U I D E

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2012 Edition, volumE 20content Director/Business PuBlications billMCMeekin

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Tennessee Economic Development Guide is published annually by Journal Communications inc.

for advertising information or to direct questions or comments about the magazine, contact

Journal Communications inc. at (615) 771-0080 or by email at [email protected].

for More inforMation on econoMic DeveloPMent in tennessee, contact:

tennessee department of economic and Community development

312 rosa l Parks ave, 11th floor, nashville, tn 37243Phone: (615) 741-1888• fax: (615) 253-6443

www.tennessee.gov/ecd

visit Tennessee economic DevelopmenT GuiDe online at tneDg.coM

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T n e d g . c O m 11

T n e d g . c O m 11

Overview

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Overview

committed to creating Opportunity, JobsState initiative targetS growth in exiSting buSineSSeS

Tennessee economic development efforts have helped the state become a magnet for innovation, investment and jobs, and those efforts are gaining notice.

Tennessee ranked no. 4 on development counsellors international’s 2011 winning Strategies report, in which corporate executives with site selection responsibilities were asked to choose the state with the most favorable business climate.

The state is giving a sharp new focus to its economic development efforts through initiatives that are designed to make the state a leader in the Southeast in the creation of high-paying jobs.

a major thrust of gov. Bill Haslam’s Jobs4Tn program will be in assisting existing Tennessee businesses, which accounted for 86 percent of new jobs created in the state in 2010. The initiative also targets a half-dozen key industry sectors for strategic recruitment, creates job “base camps” in nine regions of the state, promotes rural economic development and supports investment and commercialization in

knowledge-based enterprises.gov. Haslam has launched a $50

million initiative designed to support innovation across the state. The inciTe program – for innovation coordination, commercialization, investment, technology and entrepreneurship – is a four-pronged program that includes new financing support for next-stage companies and initiatives designed to help move new products and technologies from the research lab to the marketplace faster.

The opening in 20011 of Volkswagen’s $1 billion manufacturing complex in chattanooga cements Tennessee status as a center of automotive production. Tennessee is home to about 1,000 automotive-related enterprises. automotive-related production account for one in three Tennessee manufacturing jobs, employing more than 105,000 people.

Tennessee has a global reputation as a center of excellence in health-care and biotech research, delivery and medical device manufacturing. Home to renowned research centers such as St. Jude children’s Hospital in memphis and Vanderbilt university

medical center in nashville, and major clusters in such areas as biotechnology and health-care management, Tennessee is a recognized leader in all facets of the industry.

Some 770 foreign-owned companies have operations in the state and employ more than 101,000 people, with investments topping $22 billion. Japanese companies alone employ more than 34,000 people in Tennessee, where major international companies including nissan and Bridgestone have a significant presence.

a key component in Tennessee’s economic success is its roster of colleges and universities. The state has 51 public colleges, universities and technology centers that collectively educate 220,000 degree-seeking students across the state. Tennessee is home to 36 independent institutions that educate almost 65,000 students.

its rich and diverse cultural offerings, unparalleled natural beauty and range of lifestyle options make Tennessee an inviting place to live, work and invest.

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exceLLenT x-RAySThe naSa shuttle Discovery circled the earth for 12 days in July 2011, but was originally supposed to launch eight months earlier. However, thanks to oak ridge-based nucsafe, a hydrogen leak and multiple fuel tank cracks were detected, grounding the november 2010 mission.

nucsafe developed technology that helped detect the fuel tank fissures before liftoff, using a technique known as X-ray backscatter imaging. The technique inspected the shuttle’s fuel tank as well as carbon composites, heat shield material and spray-on foam.

nucsafe has been working with the space program using X-ray backscatter since 2003, following the Columbia mission catastrophe when a piece of insulation foam dislodged from the shuttle on liftoff, damaging the wing and ultimately resulting in the loss of the shuttle and crew as the spaceship re-entered the earth’s atmosphere.

Almanac

heLLO, We’Re FRIendLylooking to set up a business? give a thought to Tennessee, which in 2011 ranked no. 1 on the list of friendliest states to do business as deemed by the u.S. chamber of commerce, one of the nation’s major big advocacy organizations.

Factors that earned Tennessee its lofty spot include a good cost of living, a comfortable tax structure and a positive budget outlook. The u.S. chamber points out that in Tennessee, manufacturers are offered sales tax reductions and there is no personal income tax.

in addition, a statewide Jobs Tax credit gives job-creating businesses a break on excise and franchise taxes, plus the Tennessee legislature has a known reputation for its business friendly stance.

Shh, mOvIe’S STARTedreel exciting news: The state offers a number of incentives to encourage film and television production in Tennessee.

The Tennessee Film, entertainment & music commission (state.tn.us/film) currently has two specific incentive plans in place to promote film and TV production. one gives production companies 17 percent back on the money they spend on projects in Tennessee, and the second gives companies another 15 percent if they decide to headquarter their operations in the state.

officials with the Tennessee Film, entertainment & music commission point out that the state’s beauty and accommodating residents are two of many attractive reasons for doing business here.

12 T e n n e S S e e e c O n O m I c d e v e L O P m e n T g u I d e

ALL chARged uPThe largest battery production and distribution center in the entire world is located in Bristol.

exide Technologies has a 635,000-square-foot facility where it produces, distributes and recycles lead-acid batteries. The company has more than 120 years in the battery business, serving transportation and industrial markets.

The company’s batteries are made to fit automobiles, trucks, SuVs, heavy-duty vehicles, marine, rVs and lawn and garden equipment. other business sectors in which exide is involved with its battery technology include telecommunications, computers, security systems, emergency lighting, power plant systems, medical, alternative energy, railway crossings and various forms of military equipment used in mission critical environments.

PROJecT TO dye FORknoxville-based aqua-chem inc. manufactures water purification equipment, and is now working on a project to remove carpet dye from industrial wastewater that is used in large-scale carpet manufacturing.

aqua-chem, founded in 1940, is working with carpet manufacturer J&J industries of dalton, ga., to determine practical and economically feasible ways to remove dye and other chemicals from its wastewater, then reuse the water in environmentally sound ways. aqua-chem officials say the pilot project is demonstrating that 70 percent of wastewater in dyeing operations can be reused in the manufacturing process.

Besides water purification in industrial applications, aqua-chem serves customers in markets such as offshore oil and gas, commercial marine, pharmaceutical, beverage and the military.

T n e d g . c O m 13

SuITS uS FIneHardwick clothes has more than 130 years of business under its belt, with a customer base that has included u.S. presidents, movie stars and sports icons.

The cleveland, Tenn.-based company specializes in custom clothing and continues to fill nationwide orders through online sales, with a product line that includes blazers, sport coats, men’s tailored suits and tuxedos as well as ladies career wear. The company even makes attire for referees and umpires.

Hardwick clothes currently has 250 employees, including 10 salespeople who travel the united States in their respective territories. The company is the nation’s oldest american-owned tailored clothing producer and cleveland’s oldest manufacturer.

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On TheIR TuRFThe cincinnati reds use its products and services, and so do the Boston red Sox and atlanta Braves.

Southern athletic Fields in columbia, Tenn,, designs ballfields and manufactures products for baseball, softball and football fields. The company’s product line includes pitching rubber inserts, tarps, nail drags for dragging infields, grass seed blends and excellerator fertilizer. Turf-related growing products are shipped to clients in 50-pound bags, 1,000-pound sacks or 2,000-pound sacks.

clients of Southern athletic Fields number in the hundreds and include high school, college and professional teams. Some of the company’s other notable clients are auburn university, the Baltimore orioles, cincinnati Bengals, St. louis cardinals, Vanderbilt university and the university of Tennessee.

KnOWIng BeAnSBush’s has been making baked beans for customers since 1897, and even has a visitors center to tell its story.

The nationally known company established the visitors center in a former Bush’s country general store next to its chestnut Hill manufacturing plant near dandridge, Tenn. The store originally opened in 1897 to serve the chestnut Hill community but ultimately closed in 1996, then reopened as the visitors center in 2010.

The center capitalizes on its location near tourist attractions around the great Smoky mountains national park, and welcomes all individuals and families looking for something different to do. attractions at the center include a museum, gift shop, 74-seat theater and a Bush’s Family cafe.

Sunny dISPOSITIOnoutpost Solar in giles county is full of bright ideas, with its employees designing and manufacturing innovative solar energy systems.

The company’s solar products range from mega-grid systems designed for the most remote areas of the world, to systems that only generate a megawatt. outpost Solar professionals say they provide complete project management services that include design, build, installation, financing and tax incentive optimization.

one of the company’s claims to fame is the ability to quickly install solar grids in the aftermath of natural disasters, with those grids operating around the clock 365 days a year. all outpost Solar systems are virtually maintenance-free and can operate for years with only occasional cleaning.

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Business Climate

Jobs Are Job Onetennessee aims high with Jobs4tn program

Story by Bill Lewis • photography by Brian McCord

T he name of Gov. Bill Haslam’s new economic development strategy says it all. His Jobs4TN plan is intended to make Tennessee the

Southeast’s leader in the creation of high-paying jobs.“My top priority is for Tennessee to be the No. 1

location in the Southeast for high-quality jobs,” says Haslam. “By leveraging our existing assets in each region, we will be able to attract new businesses to the state while helping our existing businesses expand and remain competitive. We will be making significant investments in innovation to position Tennessee as a national leader well into the future.”

The plan to attract new businesses to Tennessee – while assisting the existing businesses that accounted for 86 percent of job growth in 2010 – is freshly minted, but it is already having an impact. Early successes include:

Health services provider TeamHealth plans to expand its corporate operations in Blount County by leasing a new facility to be constructed in Alcoa. Project developers will invest nearly $18 million and create 160 full-time jobs, with the anticipation of growing to 550 jobs in management, accounting, medical coding, billing and clerical.

Viacom Inc., the parent of MTV, CMT, Nickelodeon and other well-known entertainment, film and television properties, is establishing a shared services center to support the company’s finance group in Williamson County, creating more

than 100 accounting, finance and other corporate support function jobs.

Carlisle Transportation Products is locating its corporate headquarters in Franklin. The company has manufacturing operations in Jackson and Clinton as well as multiple manufacturing and distribution facilities in North America and China.

MANN+HUMMEL USA is locating a satellite production facility in Sequatchie County, where it will invest nearly $15 million over a three-year period and employ approximately 150 production workers and technicians by the end of 2013.

Technology protection provider Asurion will add 500 jobs to the Nashville-based company’s Davidson County workforce over the next five years.

FOuR Key STRATegIeS OF JOBS4TnPrioritizing target clusters and existing industries:

Recruitment is focusing on six clusters in which the state has a competitive advantage. They are automotive; chemicals and plastics; transportation, logistics and distribution services; business services; health care; advanced manufacturing and energy technologies.

The state will focus on helping existing businesses expand and remain competitive through a targeted outreach program. A new “existing business toolkit” of incentives and resources will be available for Tennessee companies.

16 T e n n e S S e e e c O n O m I c d e v e L O P m e n T g u I d e

Establishing regional “jobs base camps”: Jobs base camps in nine regions across the state will work with local partners on a regional economic development plan and align existing federal and state resources. A key function of these jobs base camps will be reaching out to rural counties to incorporate them into broader regional economic development strategies that leverage existing resources and maximize their assets.

Investing in innovation: The $50 million INCITE program will focus on innovation, increasing commercialization of research and technology, investment and entrepreneurship across the state.

Reducing business regulation: The administration is working with existing Tennessee businesses, business advocacy groups and state agencies to identify federal and state laws and regulations inhibiting job growth.

LeveRAgIng TenneSSee’S ASSeTS“A focus on innovation along with raising our

achievements in education is the best approach to moving our state’s economy forward,” says Haslam. “Tennessee has remarkable assets in research and development. We need to do a better job of leveraging these assets and growing innovative new companies to reach our goal of becoming the No. 1 location in the Southeast for high-quality jobs.”

november 2011: Tennessee is ranked no. 8 on Site Selection magazine’s annual Top State Business climate ranking.September 2011: a development counsellors international survey of corporate executives ranks Tennessee no. 4 on its Best States for Business list.September 2011: Tennessee ranks no. 8 on Area Development magazine’s Top States for doing Business list.June 2011: The u.S. chamber of commerce and the national chamber Foundation’s study, enterprising States, ranked Tennessee no. 1 for taxes and regulation based on the state’s low cost of living, low state and local tax burden and manageable budget gap. Tennessee also ranked second in cost of living, fourth in state and local tax burden and 10th in both growth in share of national exports and budget gap.may 2011: The associated general contractors of america acknowledged Tennessee as one of three states with the highest addition of construction jobs from april 2010 to april 2011.may 2011: Tennessee was awarded Area Development magazine’s Silver Shovel, presented annually to states that have demonstrated much success and progress with job creation and economic impact. The awards recognize state economic development agencies that drive significant job creation through innovative policies, infrastructure improvements, processes and promotions that attract new employers and investments in expanded facilities.may 2011: electrolux’s $190 million north american cooking products manufacturing center in memphis was named to Site Selection magazine’s Top deals of 2010 list. amazon.com, which is putting distribution centers in Tennessee, was also named to the Honorable mention list. Honors were determined based on scale of capital investment and job creation, creativity in negotiations and incentives, regional economic impact, competition for the project, and speed to market.may 2011: Chief Executive magazine named Tennessee one of the top four states for business in its seventh annual survey of Best and worst States for Business. more than 500 chief executive officers rated states based on a wide range of criteria, from taxation and regulation to workforce quality and living environment.march 2011: The publishers of Trade & Industry Development magazine named nissan motor co., general motors and the Tennessee department of economic and community development among the recipients of its 2011 corporate investment & community impact (cici) awards. only 15 projects nationwide were selected from hundreds of submissions as winners in the corporate investment category.

Tennessee gains national notice

T n e d g . c O m 17

Nashville-based Asurion plans to add 500 jobs over a five-year

period in Davidson County.

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Inciting Innovationtennessee program encourages entrepreneurship, ‘knowledge economy’

Story by Bill Lewis

F rom Memphis to Mountain City, entrepreneurs and innovators are thriving in Tennessee. Gov. Bill

Haslam’s new economic development initiative is designed to help them achieve even greater success in the competitive global economy.

IncITIng SucceSSThe governor has committed $50

million to the new INCITE program – so named for its focus on Innovation, Commercialization, Investment, Technology and Entrepreneurship – which is designed to spark creation of knowledge-based jobs and position Tennessee for greater success in innovation-based economic development.

The initiative, part of the governor’s Jobs4TN strategy, includes co-investment in economic ventures, new business incubators throughout the state, new opportunities for entrepreneurship and a drive for greater technology transfer.

FAvORABLe cLImATe FOR enTRePReneuRIAL SucceSS

Tennessee is creating an environment in which entrepreneurship and innovation can grow, says Michael Burcham, CEO of the Entrepreneur Center in Nashville and selected by Haslam to lead a key component of INCITE, the Startup Tennessee initiative.

“Startup Tennessee is a great opportunity to move our state ahead of the curve in building the right climate for new businesses,” Burcham says.

Startup Tennessee, he says, will provide resources, mentors and capital to early entrepreneurs who have ideas to help them turn these ideas into real businesses. “It’s very important for our economy as we create new jobs for Tennesseans,” Burcham says.

Key elements of INCITE include:Innovation Coordination: Gov.

Haslam’s Jobs4TN strategy creates nine economic development regions across

The entrepreneur center in nashville creates an environment that promotes innovation. Photo by brian McCord

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Tennessee. The Department of Economic and Community Development (ECD) will work with each one to develop a strategic plan for economic development and strategies for innovation using the region’s unique assets. The Tennessee Technology Development Corp. (TTDC) will have a key role and will partner with ECD to hold an annual Governor’s Conference on Innovation to share best practices.

Entrepreneurship: ECD is funding a new or existing business incubator in each of the state’s nine economic development regions. The incubators will commit to meeting benchmarks, such as raising certain amounts of private capital for tenant companies. ECD will also create a statewide incubator network to share best practices and support efforts to raise private capital. A Governor’s

Award for Entrepreneurship will be awarded each year at the Governor’s Conference on Innovation.

Co-Investment Funds: Tennessee will target $30 million for creation of early stage, seed and mezzanine capital co-investment funds. These will be designed to be self-sustaining and complement existing TNInvestco and Pathway Lending programs.

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Michael Burcham, CEO of the The Entrepreneur Center in Nashville

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Russell Ingram, executive director of the Memphis Research Consortium

Commercialization: An important goal is to move new products and technologies from the research lab to the marketplace faster. That process is already under way in Memphis, where the governor committed $10 million in funding for the Memphis Research Consortium to enhance commercialization partnerships. ECD is working with TTDC to identify other opportunities across the state.

KeePIng gOALS In SIghTStartups and jobs are the

goals of the Memphis Research Consortium, says Executive Director Russell Ingram.

“Investment like this has to happen if we’re going to grow the Tennessee knowledge economy,” he says.

A portion of the funding is being used to recruit faculty members at local research universities in the growing

field of computational science. Their work will be linked with the universities technology transfer programs, which can transform new ideas into new jobs for Tennesseans.

“We’re seeking new faculty who can come in and be innovators and feed the technology transfer pipeline,” says Ingram. “We’re looking for folks who are not only interested in research but in building their own companies.”

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pHoTo c ourTeSy oF pHoTo c ourTeSy oF VolkSwagen c HaT Tano o g a

T n e d g . c O m 23

The Road Aheadvolkswagen, gM, nissan accelerate production

Story by Betsy Williams

Volkswagen’s chattanooga plant will generate about $12 billion in income growth and 9,500 jobs for Tennessee.

T he road ahead for the auto industry in Tennessee is paved with new investment,

new jobs and new opportunities.The May 2011 opening of the

$1 billion Volkswagen plant in Chattanooga cements Tennessee as a center of what has been described as America’s new Auto Belt. The Chattanooga Volkswagen plant will employ 2,000 workers and produce an estimated 150,000 cars annually, generating about $12 billion in income growth and an extra 9,500 jobs for the Tennessee economy.

The Chattanooga region is the right place for the Volkswagen plant, says Tim Spires, president/CEO of the Chattanooga Manufacturers Association.

“Our location is ideal and our strong workforce is capable of meeting the needs of advanced manufacturing techniques that Volkswagen and their suppliers require,” he says.

Nissan’s construction of its plant in Smyrna in the 1980s put Tennessee on the map as a good place to build cars.

ThOuSAndS OF JOBS“Tennessee’s location gives it

a strategic advantage,” says John Bradley, senior vice president of economic development for the Tennessee Valley Authority. “Nissan, VW and GM all have major automotive operations in the state, and Tennessee enjoys close proximity to other auto assembly plants within a few hours of the state’s borders. That concentration makes Tennessee a natural for the location of new auto suppliers and continued

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The chattanooga Volkswagen plant will directly employ 2,000 workers and produce an estimated 150,000 cars annually.

expansions by existing suppliers.”Indeed. In just the first six

months of 2011, four automotive-related industries announced new investme on costs when contracting with other tier suppliers,” Bradley says. “Conversely, Tennessee’s high concentration of suppliers makes it attractive for future assembly plant operations. So, there is this clustering that provides great synergy between supplier and

supplier, and between supplier and assembly operator.”

Economic development publication Business Facilities in its annual State Rankings Report in 2011 named Tennessee the No. 1 state in the nation for automotive manufacturing strength, the second consecutive year the Volunteer State received that recognition.

“With new VWs rolling off the assembly line at a world-class,

energy-efficient manufacturing facility and top-tier suppliers lining up to set up operations in the Chattanooga area, Tennessee has cemented its position as the top automotive powerhouse in the U.S.,” Business Facilities said in its report.

cOmPAnIeS InveST And exPAndThat synergy creates a ripple effect

of new investment and new jobs:SL America, an automotive parts

supplier for GM, is expanding its

B rian mc C ord

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Middle Tennessee Development Alliance

MTDALow Taxes • Low Labor Costs • Centrally Located

Tour our sites online at:

middletndevelopmentalliance.comLawrence County • Lewis County • Wayne County

production will start in Tennessee in 2012 on the zero-emission nissan leaF and the lithium-ion batteries that will power it.

Living green is making sure the air in your home is healthy for your family to breathe. Test your home for radon and build radon-resistant. It's easy. That's living healthy and green.

Just call 866-730-green or visit www.epa.gov/radon

Living greenstarts from the ground up.

Clinton plant for the fourth time in a decade. The $14 million expansion will create 100 new jobs.

DLH Industries, specializing in air and f luid management assemblies, was scheduled to begin manufacturing in fall 2011 in Bristol and is expected to create 75 jobs over the next two years.

NYX Inc., a Michigan-based automotive supplier, plans a $23 million manufacturing facility in Linden to produce injection-molded plastics for automotive manufacturers beginning in early 2012, creating 400 jobs.

Valeo will produce front-end modules for Nissan in its $5.4 million plant in Smyrna, which will create 63 jobs within the first year.

Koyo Corp. of USA, a Japanese company located in Washington County, is investing $30 million in an expansion that will double its workforce to 125 by 2014. The company produces taper roller bearings used in vehicle axle and transmission systems.

In 2012 production will start in Tennessee on the Nissan LEAF, a zero-emission, all-electric vehicle, and the lithium-ion batteries that will power it. Side-by-side plants in Smyrna will employ more than 1,300 workers and turn out 150,000 electric cars and 200,000 advanced-technology batteries annually.

Meanwhile, GM is investing $32 million in its Spring Hill engine plant to support the acceleration of the 2013 Chevrolet Malibu.

pHoTo By Brian mc c ord

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Shaping a Bright Futuretennessee is global leader in chemicals, plastics

Story by John Fuller

T ennessee’s chemical and plastics industry cluster is providing solid benefits to the state.

The chemical/plastics segment is one of the state’s six core industry groupings. More than 800 chemical- and plastics-related businesses operate in Tennessee, providing employment for more than 52,000 workers. Exports of chemical and plastics products exceed $3.5 billion and have more than doubled in the past 10 years.

The major reasons for such a strong chemical and

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plastic presence in Tennessee are its proximity to major markets, relatively low labor costs and innovative state programs to assist companies wishing to locate or expand.

chemIcAL cOmPAnIeS exPAnd In TenneSSeeA number of global players in chemical and

plastics production have put down roots in Tennessee, which remains an attractive location for new investment.

Olin Corp. broke ground in July 2011 on a facility that will expand production of potassium hydroxide at its Charleston, Tenn., facility. Olin will invest more than $160 million and preserve 350 jobs at its existing facility in Bradley County.

“We are delighted to makes this investment in the Charleston community, which has been home to our plant since 1962,” says Frank Chirumbole, president of Olin Chlor Alkali Products, based in nearby Cleveland, Tenn. Olin officials say they were greatly helped with a series of state incentives, including a $41 million in Tennessee tax-exempt, variable rate Recovery Zone Facility bonds.

Austin Powder, an Ohio-based company, announced plans to build a facility on 400 acres in Greene County to produce liquid ammonium nitrate. Operating the plant under the name U.S. Nitrogen, Austin will invest more than $110 million and create

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olin corp. broke ground in July 2011 on a facility that will expand production of potassium hydroxide at its charleston, Tenn., facility.

Tennessee ChemiCal and PlasTiCs by The numbers

369Number of chemical manufacturers

420Number of plastics/ rubber manufacturers

$3.5 billionTotal combined exports

52,000Total combined employment

15%Percent of total state employment

Tennessee Department of Economic & Community Development

80 new jobs with an annual payroll of $4 million. Austin Powder officials said that Greene County offers a solid and dependable workforce, a superior business climate and tremendous transportation accessibility.

Foreign companies have also made sizeable investments in the state. Leading nonwoven material producer Japan Vilene Co. has announced that its VIAM Manufacturing Inc. is locating its VICAM subsidiary in Manchester, Tenn. The facility, which is expected to open in 2011, will invest more than $32 million and create 70 jobs.

The facility will make a polyester-based carpet fiber by recycling clear plastic bottles. The carpet fiber will then be used in headliner, seat backs and door panels in the automotive industry. The 44,000-square-foot plant in Coffee County will be located on a 12-acre site and could potentially triple in size in the future.

eASTmAn LeAdS In mAnuFAcTuRIngTennessee’s largest employer in the

chemical/plastics industry sector is Eastman Chemical Co., headquartered in

Kingsport. Eastman employs more than 6,500 workers there and has annual revenues of more than $5.8 billion. The facility manufactures hundreds of chemicals, fibers and plastics found in products that people use every day.

The Eastman facility has more than 550 buildings and about 4,000 acres of land, with its main production facility covering 900 acres. By the end of 2011, Eastman will complete a five-year, $1.3 billion reinvestment project to upgrade and expands its Kingsport facilities.

Eastman officials cite several reasons why they like the Volunteer State, including its positive business climate, skilled workforce, excellent quality of life, great interstate highway and rail systems, and strong educational institutions.

“The employees at Eastman are very dedicated and loyal to the company,” says Parker Smith, vice president and general manager of worldwide operations support and quality at Eastman Chemical. “That’s why we have so many employees with over 25 years of service. Bottom line, it’s the quality of the people in our area that make this such a great place to do business.”

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Investment Total JobsJapan $14.62 billion 34,813Germany $2.56 billion 10,305Canada $1.20 billion 12,545United Kingdom $1.13 billion 13,347Sweden $551 million 5,830France $531 million 8,817

Tennessee Export Volume by Year2010 $25.9 billion2009 $20.5 billion2008 $23.2 billion2007 $21.9 billion

Top Tennessee ExportsTransportation Equipment $4.03 billionChemical Products $3.47 billionComputers, Electronics $3.40 billionGeneral Manufacturing $2.70 billionMachinery $2.02 billionPrimary Metals $795.5 millionElectrical Equipment $752.3 millionFabricated Metal Products $752.1 millionPaper Products $680.5 millionProcessed Foods $607.0 million

a Global Player:� TenneSSee exPORTS And FOReIgn InveSTmenT

Sources: U.S. Census Bureau, Tennessee Department of Economic and Community Development

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Accent on TennesseeForeign investment, exports drive growth in volunteer State

Story by Bill Lewis

Business is the universal language in Tennessee, where nearly 770 international companies,

including household names such as Nissan, Bridgestone, Volkswagen and Electrolux have invested $22 billion and employ more than 101,000 workers.

Foreign direct investment is just one way the global economy creates jobs and wealth in Tennessee. Another 80,000 workers are employed by the 6,400 Tennessee businesses with export operations. At least one business is involved in exporting in 91 of Tennessee’s 95 counties, says Steven Livingston, senior associate at the Business & Economic Research Center at Middle Tennessee State University.

International companies have a direct impact on local economies throughout the state. At last count, 72 of Tennessee’s 95 counties have at least one foreign-owned business, he says.

“We need to remember that these

businesses are bringing global knowledge and techniques to share with local economies around the state, and that, too, is a tremendous positive,” says Livingston.

Other reasons foreign businesses invest in Tennessee include the state’s central location, its highly developed transportation network and the availability of “greenfield” sites that are ready for development, Livingston says.

The state has continued its success in attracting international investment. A sampling of major global investments in Tennessee includes:

Electrolux: The Swedish appliance manufacturer selected Memphis as the location of its new North American Cooking Products manufacturing center. The company is investing more than $190 million in the facility, which will employ more than 1,200 people when it is fully operational. The company chose Memphis because of

exterior view of Bridgestone americas Holdings, inc. corporate headquarters in nashville, Tn

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the city’s low costs, skilled labor pool, central location and excellent logistics. Electrolux also has operations in Springfield, Tenn.

Wacker Chemie AG: The company is investing about $1 billion in Bradley County, where it will produce hyper-pure polysilicon used in solar panels and photovoltaic devices. The facility is the first of its kind for Wacker outside of Europe. The project is creating 650 jobs.

Volkswagen Group of America: The automobile manufacturer has invested $1 billion at its assembly plant in Chattanooga. The facility has created more than 2,000 direct jobs and another 9,500 related jobs.

TenneSSee exPORT vOLume gROWSTennessee businesses are exporting more

products than ever before, from automobile parts and medical devices to Jack Daniel’s Tennessee Whiskey. Together, they exported products valued at about $26 billion in 2010. Tennessee ranks 14th among the states in export volume.

Participating in the global marketplace makes Tennessee businesses stronger, says Bill Pittman, president and chief operating officer of DeRoyal. The company, headquartered in Powell, Tenn., has a worldwide presence as both an exporter and a direct foreign investor.

DeRoyal manufactures health-care products that support surgical and acute care, orthopedics and patient care, and wound care at facilities not only in Tennessee but in foreign markets that include Guatemala, Estonia, Costa Rica, the Dominican Republic and China. The company exports its

products around the world, and the global marketplace is tightly interconnected. Temperature monitoring devices manufactured in Costa Rica, for example, are shipped to 60 countries.

“It’s multidirectional, like an airline schedule,” says Pittman.

DeRoyal was named Exporter of the Year by ThinkGlobal Inc., publisher of Commercial News USA, the official export-promotion magazine of the U.S. Department of Commerce. Half of the company’s profit will come from sources outside of the United States within the next four years, but income is not the only benefit of global markets, says Pittman.

LeARnIng gLOBAL LeSSOnS“The value of exporting exists not only in revenue

generation, but also from the knowledge gleaned from our customers throughout the world. Improving care and improving business worldwide diversifies our business and creates new solutions throughout our firm and our marketplace,” says Pittman.

“As we expand we can’t forget (that) 300 million people in the U.S. is a big number but only 5 percent of the world’s population. There’s a lot of innovation outside the United States,” he says.

With its skilled workforce, low taxes and high quality of life, Tennessee is the perfect headquarters location for the company, says Pittman.

Referring to Oak Ridge National Laboratory, Pittman notes that “Twenty miles from my office, we have the highest concentration of Ph.D.s in the world.”

Jack daniel’s Tennessee whiskey is one of the many Tennessee products exported around the world.

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Where the good Life Beginstennessee’s advantages make it a haven for retirees

Story by Betsy Williams

F rom mountains to metropolitan, Tennessee has something for every retiree’s taste.

“When we started looking for a place to retire, Tennessee just kept coming up at the top of our list,” says Ruth Harton, who with her husband, Steve, moved to Tennessee from Georgia following retirement. The couple bought a house in Tellico Village, one of the state’s premier retirement communities in Loudon County in East Tennessee. Tellico Village is in the foothills of the Great Smoky Mountains and features a lake, golf and a short drive to Knoxville.

“We can spend time on the lake with friends and then drive into Knoxville for dinner and the symphony,” Ruth Harton says. “There’s always something for us to do, or we can do nothing and just enjoy the view of the lake and

mountains from our porch.”Stephanie Myers of the Loudon County

Economic Development Agency isn’t surprised the Hartons are happy with their retirement choice.

“Living in Loudon County is a comfortable lifestyle that offers affordable, quiet, gorgeous country living with a quaint, small-town atmosphere adjacent to Knoxville’s cultural activities and the Great Smoky Mountains at our doorstep,” Myers says.

The Hartons are part of a growing demographic pursued by the state through its Retire Tennessee initiative. Retirees from around the country are encouraged to choose Tennessee for the state’s low cost of living – 10 percent below the national average – recreational and outdoor spaces, easy access to metropolitan areas and pleasant climate.

reTire TennesseeThe Tennessee Department of Economic and Community Development has launched Retire Tennessee, a program which promotes the state’s most retirement-friendly communities. The counties meeting the criteria – offering such amenities as public parks, cultural activities and health facilities – are Cumberland, Hamilton, Hardin, Henry, Jefferson, Lincoln, Loudon, Maury, Putnam, Roane, Robertson, Sullivan and Warren counties.For more, go to retiretennessee.org.

many retirees choose to relocate to Tennessee because of the wealth of amenities and activities offered.

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BIg cITy excITemenT IS ALWAyS cLOSe ByMiddle Tennessee, with Nashville at its heart,

appeals to retirees interested in cultural opportunities, quality health care and college towns, while still having the choice of living in a small, close-knit community, like Cookeville in Putnam County.

“Our community is an ideal place for retirees looking to relocate,” says George Halford, president/CEO of the Cookeville-Putnam County Chamber of Commerce. “We’ve got the amenities of a large city with a small town feel and exceptionally low cost of living. And we’ve got cultural opportunities. We are one of the smallest towns in the Southeast that has a full-blown, professional symphony orchestra, a performing arts center and art galleries galore.”

Cookeville was tagged as “Asheville West” in a study by Wadley Donovan Growthtech research group.

Cookeville, like many other Tennessee communities, also boasts access to quality health care – an amenity retirees seek when looking to relocate. Cookeville Regional Medical Center provides inpatient, outpatient, rehabilitation and

emergency care in addition to a host of specialty services such as The Heart Center and The Cancer Center.

SmALL TOWnS emBRAce neWcOmeRSFurther west, places like Hardin County

welcome retirees to enjoy a leisurely pace in a beautiful setting.

“Hardin County offers genuine Southern amenities,” says Rachel Baker of the Retire Hardin County program. “Retirees can choose resort living on Pickwick Lake or a farm in the country on the borders of historic Shiloh Battlefield. People make you feel welcome here.”

Jean and George Gunn found exactly what they were looking for when they chose Savannah in Hardin County for their retirement. The couple bought property along the river in 2006 to build their retirement cabin.

“The area has unlimited possibilities and opportunities,” George says. “The bright blue sky reminds us of what it use to be like when the air was non-polluted. The people bring us back to a time and place where being a neighbor meant something.”

T n e d g . c O m 39 38 T e n n e S S e e e c O n O m I c d e v e L O P m e n T g u I d e

T n e d g . c O m 39

Energy/Technology

as the industry expands, state takes a commanding role

W hen one state lands a pair of billion-dollar industrial projects, the world tends

to take notice. When those projects give the state a commanding position in a fast-growing, widely admired industry, the effect tends to be compounded.

The polysilicon manufacturing facilities being built by Michigan-based Hemlock Semiconductor in Clarksville and Germany-based Wacker Chemie in Bradley County will give Tennessee a dominant position in the growing global market for solar technology. The facilities also expand the state’s growing advanced manufacturing base, which provides high-paying jobs that aren’t easily moved offshore.

Wacker is investing $1.5 billion to build its facility, which is expected to be employ 650 people and be operational in 2014.

Hemlock, meanwhile, is investing

$1.2 billion, and plans to employ 500 when it comes online in 2013.

The company has options to expand the project, and the state approved a $150 million bond issue in spring 2011 to build infrastructure ahead of a possible $3 billion investment.

“Phase One alone is the single-largest investment this region has seen,” says James Chavez, CEO of the Clarksville-Montgomery County Economic Development Council.

Hemlock parent company Dow Corning noted in a recent public filing that its polysilicon production was “sold out” to customers in the first half of 2011, and that the situation wasn’t expected to change anytime soon.

In addition to the 500 people who will work for Hemlock in Clarksville, 1,600 people are involved in the facility’s construction. If the company decides to expand, that

employment boost could stretch out for years.

Chavez says economic development officials are now recruiting other companies, such as ingot and wafer makers, to improve the value chain for the industry.

“The Hemlock Semiconductor project is certainly a game-changer for us and for the state,” he says.

SuPPORT FOR eneRgy InnOvATIOn

Energy companies coming to Tennessee enjoy several advantages, including one of the nation’s pre-eminent research facilities in Oak Ridge National Laboratory. The globally renowned research hub has an annual budget of $1.6 billion and about 4,700 employees engaged in everything from neutron science to supercomputing and energy applications.

Solar Innovation Shines

Story by Dan Hieb

in 2010, the Tennessee Solar institute offered $9 million in grants to help businesses install solar. pHoTo By JeFFre y S . oT To

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One of the lab’s focuses is helping to “move all this world-class research to the marketplace,” says Tom Rogers, the lab’s director of industrial partnerships and economic development. One example is a lab-developed heat-absorbing foam that is being used to prolong the life of LED lights, among other uses.

In addition to licensing technology to businesses, Oak Ridge collaborates with companies to solve problems. Rogers says the lab hosted 65 visits through mid-2011, introducing businesses leaders to researchers. The lab also hosts seminars to let entrepreneurs and investors know about research with commercial promise.

(Businesses can find out more at www.ornl.gov/adm/partnerships.)

Another resource is the Tennessee Solar Institute, based at the University of Tennessee in Knoxville. The institute works with Oak Ridge to foster solar innovation and get it to the marketplace.

The institute has awarded grants that have helped fund 144 installations in all corners of the state, representing more than 6.2 megawatts of clean-energy production and creating an economic impact of more than $35.9 million.

“We’ve had banks, construction companies, farms, a company that trains hunting dogs down in Polk County,”

Green Gains in KnoxvilleKnoxville’s green economy was the fastest-growing in the nation between 2003 and 2010, according to a study by The Brookings Institution, a Washington think tank. The home of the University of Tennessee’s flagship campus saw its green jobs grow from 6,206 to 16,135 – a rate of 14.6 percent a year. Only one other area – Raleigh-Cary, N.C. – even came close to that rate of growth.

one of Tennessee’s major advantages is the research conducted at the renowned oak ridge national laboratory. Photo Courtesy of oak ridge national laboratory, Jason riChards, ornl PhotograPher.

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says communications manager Chris Davis. “You name the type of business and there’s a good chance that they’ve installed solar.”

The institute also hosts seminars to help train workers, and has awarded grants worth $14.5 million to help spur private innovation.

mITSuBIShI, ALSTOm JOB gAInSEnergy and advanced

manufacturing are a business recruitment focus for Gov. Bill Haslam, and not just in the solar sector.

In February, Tokyo-based Mitsubishi Electric Corp. announced plans to build a $200 million facility in Memphis that will employ 275 people making extra-high-voltage power transformers. And France-based Alstom is building a $300 million plant in Chattanooga, where 350 people will build turbines for power generation.

Like Hemlock and Wacker, both projects will involve high-tech manufacturing, which requires a skilled workforce, making the jobs higher-paying and harder to move offshore.

Another example is Volkswagen’s new auto manufacturing facility in Chattanooga, which came online in late 2010.

The strategies appear to be paying off. Last summer, Business Facilities magazine named Tennessee its State of the Year, and said it had the second-highest potential for economic growth in the nation.

Left: montgomery county mayor carolyn Bowers, left, James chavez of the clarksville-montgomery county economic development council, and clarksville mayor kim mcmillan. chavez: ‘Hemlock plant is a game changer.’ Top: oak ridge national laboratory has an annual budget of $1.6 billion and 4,700 employees.

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Tennessee’s extensive highway transportation network makes it a home to a large number of distribution facilities. staff Photo

air, water, roads, rail make tennessee a distribution dream

T ennessee is well situated as a major transportation hub for the United States.

With major interstate highways, service from six of the largest U.S. railroads, one of the world’s largest air cargo hubs and its western border hugging the Mississippi River, Tennessee has the means to move goods anywhere.

For the second year in a row, Tennessee’s transportation system ranks as one of the best in the nation, according to CNBC’s 2011 America’s Top States for Business. Tennessee’s overall score makes it the fifth-best in America in the category of Transportation and Infrastructure.

Five commercial airports serve

the state’s travelers and shippers. Memphis International Airport has more than 5 million airline boardings annually, and Nashville International Airport 4.3 million. Nashville International has completed the second phase of a major terminal renovation project and plans an expanded consolidated rental car facility in the near future.

memPhIS: WORLd cARgO huBMemphis is home to FedEx,

the world largest express transportation company, making Memphis International Airport one of the busiest air cargo hubs in the world. More than 9.4 million tons of air cargo is

shipped out of Memphis annually.The Memphis Super Hub, as

FedEx calls it, has slots for 175 aircraft and 300 miles of conveyor belts. More than 4,000 employees during the day and 8,000 at night handle 3.3 million packages a day.

Many firms have located their shipping capabilities near the airport. Nike has a 1 million-square-foot distribution center in Memphis and employs more than 1,800 workers.

“Logistics is our main industry here in Memphis,” says Mark Herbison, senior vice president of economic development for the Greater Memphis Chamber of Commerce. “I believe it is unparalleled in the country when

The Right connections

Story by John Fuller

Transportation

46 T e n n e S S e e e c O n O m I c d e v e L O P m e n T g u I d e

you look at the four main modes of transportation. Our location is ideal for the company with time-sensitive products.”

Tennessee has an impressive lineup of interstate highways, including I-40, I-24, I-75, I-65, I-26 and I-81. With such an extensive transportation network of highways, the state is home to a large number of logistics and distribution facilities.

Over the past decade, more than 120 distribution centers

haven located in the state. Ingram Books and Bridgestone have large distribution centers in La Vergne, and Stellar Management Group has a major distribution center in Chattanooga.

The state is home to 13,700 distribution centers, employing more than 146,000 workers.

Online retailer amazon.com will make capital investment of more than $350 million in the state and create 3,500 full-time jobs with ditribution centers in Hamilton,

Bradley and Wilson counties and elsewhere in Tennessee.

Memphis is the second-largest port along the Mississippi, with more than 150 companies doing business there. Two other large rivers, the Cumberland and the Tennessee, also provide important waterway access for the state’s businesses.

PORT OF cATeS LAndIngThe Port of Cates Landing in

Northwest Tennessee promises to

clockwise from Top: memphis is home to Fedex, the world largest express transportation company; Tennessee has service from six of the largest u.S. railroads; Fedex has a commanding presence at the memphis airport. Je

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The Cumberland River, along with extensive rail and interstate systems make Tennessee an

economical place to move goods to and from.pHoTo By JeFFre y S . oT To

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Well disTribuTed

13,736distribution centers in Tennessee as of 2010

147,000number of workers employed at Tennessee distribution centers

76Percent of u.S. population within one day’s drive of Tennessee

8major interstates that pass through Tennessee

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have an enormous economic impact. Construction started in mid-2011 on this $52 million complex along the Mississippi River. The port is situated on the only developable site above the 100-year f lood plain between Memphis and Cairo, Ill. Planned for completion in early 2013, the port is being developed by the Northwest Tennessee Regional Port Authority. Economic forecasters estimate that the project will create 234 construction jobs and 1,700 permanent jobs when completed.

Cates Landing is close to railroads and within a day’s truck drive of 75 percent of U.S. markets.

Port authority officials say several companies have expressed interest in locating near the port; a 350-acre industrial park is planned in nearby Lake County. Jimmy Williamson, port authority chairman, says the port facility will be a “game changer” for the region. An 11-county effort to furnish job training to workers in the region is underway.

“We believe this project will give northwest Tennessee a tremendous advantage it has never had before,” Williamson says.

ingram Books has a large distribution center in la Vergne. pHoTo By Brian mc c ord

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Health

tennessee sets the pace for medical research and technology

F rom world-renowned research hospitals to promising life science

startups, Tennessee is home to one of the fastest-growing health-care and biotechnology sectors in the nation.

Memphis has long been synonymous with cutting-edge medical research. Methodist Le Bonheur Healthcare and St. Jude Children’s Research Hospital are just a few of the recognizable names bridging the public and private life science sectors in West Tennessee.

“The partnership of Memphis hospitals with area universities and researchers creates a tremendous baseline for biosciences,” says Regina Whitley, vice president of marketing and communications at the Memphis Bioworks Foundation, a nonprofit foundation organized in 2001 to help transform Memphis into an international center of excellence for bioscience.

A healthy Body of Work

Story by Melanie Kilgore-Hillphotography by Brian McCord

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AdvAnTAgeS In BIOScIenceMemphis already is 24 percent

above the national average for bioscience jobs, thanks to opportunities in biomedicine, biologistics and bio-based products. Four of the world’s top pharmaceutical companies have operations in Memphis, including GlaxoSmithKline, Johnson & Johnson, Pfizer and Merck (Schering-Plough), along with

300-plus bioscience companies, support service firms and medical device manufacturers.

Memphis also is the international corporate headquarters and world hub for FedEx, giving local companies the latest cutoff times for next-day delivery in the United States. And with the richest soil along the Mississippi Delta, Memphis is quickly becoming a haven for

Vanderbilt university medical center in nashville is a renowned center of health research.

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The university of Tennessee Health Science center in memphis

companies looking to develop greener technologies.

One of Memphis’ newest assets is the University of Tennessee-Baptist Research Park, a growing major bioscience research facility located on 13 acres in the Memphis Medical Center. Once completed, the research park will include 1.2 million square feet of world-class laboratory, research, education and commercial space.

nAShvILLe’S heALTh-cARe huBHealth care is the largest and

fastest-growing employment sector in the Nashville area, boasting more than 250 health-care companies and 300-plus professional services firms. The region’s health-care industry contributes an annual economic benefit of nearly $30 billion and more than 200,000 jobs to the local economy annually. Globally, 56 health-care companies headquartered in Nashville generate $70 billion in revenue and more than 400,000 jobs. Vanderbilt University Medical Center calls Nashville home, as do hospital operators Community Health Systems and Hospital Corporation of America, which pioneered the for-profit hospital concept and now operates 164 hospitals in 20 U.S. states and Great Britain.

medIcAL TRAde cenTeRWith its high concentration

of health-care companies, it’s no surprise that Nashville is slated to welcome the world’s first medical trade center in 2013. Currently under development by Dallas-based Market Center Management Co., the Nashville Medical Trade Center will be an international marketplace promoting the exchange of goods, services and

ideas for the health-care industry. Located in downtown Nashville, the 1.5-million-square-foot global marketplace will serve health-care vendors, providers, educational institutions, trade events and more while generating an estimated annual economic impact of $140 million.

A heALThy FuTuReNashville also is poised to

become a health information technology center, as new federal regulations concerning electronic medical records and state insurance

exchanges are implemented.Caroline Young, president of

the Nashville Health Care Council, says the organization is partnering with the Nashville Technology Council and the Nashville Area Chamber of Commerce to develop technology workforce initiatives to meet the industry’s growing demand.

“With that concentration comes a tremendous amount of talent,” says Young. “Nashville often is seen as a center of innovation and thought leadership due to the amount of experienced health-care executives located here.”

pHoTo By Brian mc c ord

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Education

universities in tennessee accelerate research efforts

A key component in Tennessee’s economic success is its roster of colleges

and universities. The Volunteer State is home to 51 public colleges, universities and technology centers that collectively educate 220,000 degree-seeking students. Thirty-six private independent institutions educate another 65,000 students.

The state’s institutions of higher education – including the University of Tennessee and Vanderbilt University – are known globally for their research efforts, annually devoting millions of dollars to that cause. For example, in 2010 the University of Tennessee

committed $280 million toward research endeavors.

Much of the research generated on the state’s university campuses is finding its way into the commercial marketplace.

“Our success stories include a researcher who recently invented a stretchable fabric that is now used in baby diapers, and the fabric today is in billions of disposable diapers that are sold every day throughout the world,” says Joy Fisher, director of business startups for the University of Tennessee Research Foundation.

The foundation provides assistance and resources to the research activities of faculty, staff

and students of the institutions in the University of Tennessee system – UT’s f lagship Knoxville campus, including its Institute of Agriculture and Graduate School of Medicine, and campuses in Chattanooga, Martin, Tullahoma and Memphis.

BuRn BOdy FATFisher says the foundation,

based in Knoxville, works with professors and scientists in the university system to evaluate their inventions, ideas and discoveries, then tries to market and license the technology to companies that may be able to use the technology in their businesses.

head of the class

Story by Kevin Litwin

The university of Tennessee research Foundation in knoxville works with professors and scientists in the university system to evaluate their inventions, ideas and discoveries. pHoTo By Brian mc c ord

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Vanderbilt’s center for neuroscience drug discovery is researching ways to combat brain disorders such as parkinson’s disease, schizophrenia and Fragile X syndrome.

“We also take care of patents, copyrights and trademarks, and also look to form startup companies if the technology has many aspects to it,” she says. “One such startup getting ready to launch is Nutraceutical Discoveries, which developed a product called Innutria. It is a food ingredient that blends naturally occurring nutrients, and burns body fat when added to food or beverages.”

ReAd 180At Vanderbilt University in

Nashville, faculty members across all disciplines received more than $500 million in external funding for research in 2009. In 2010, university staff suggested 133 invention ideas.

A recent success story includes a Read 180 product developed by a Vanderbilt education professor. Read 180 is sold by Scholastic publishers – the same company that published the Harry Potter series – and helps struggling readers raise their reading achievement levels, says Janis Elsner, associate director of the Vanderbilt University Center for Technology Transfer and Commercialization. “Read 180 helps middle school kids who haven’t really learned how to read, and turns their lives around. It’s a fantastic education breakthrough, and Vanderbilt still receives royalties from that product,” she says.

cOmBAT BRAIn dISORdeRSAlan Bentley, assistant vice

chancellor at the VU Center for Technology Transfer and Commercialization, says Vanderbilt has also recently established a Center for Neuroscience Drug Discovery that is researching ways to combat brain disorders

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STAMP OUT BREAST CANCERWITH YOUR FEET.

Every step you take in the Susan G. Komen Race for the Cure® helps raise vital funds for the fight against breast cancer. But don’t let your journey stop there. Take a step toward improving your own health by educating yourself about the disease and getting regular screenings. Step by step, this Race will be won.

Learn more about the Komen Race for the Cure by visiting www.komen.org or calling 1-877 GO KOMEN.

This space is provided as a public service. ©2008 Susan G. Komen for the Cure®

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such as Parkinson’s disease, schizophrenia and Fragile X syndrome.

Vandy currently has three neuroscience drug-licensing deals in the works with pharmaceutical companies, but Bentley says it takes time to make such deals

because drugs must be monitored for quite awhile before reaching the marketplace.

“Drug discovery, personalized medicine, biostatistics, prosthetics, engineering, education – Vanderbilt is involved in research for those disciplines and many more,”

Bentley says. “The university is really accelerating our research efforts. That includes licensing technologies to several existing industries, plus we’re looking to be more collaborative on innovative projects with many established companies.”

PubliC Four-year ColleGes and universiTies• Austin Peay State

University, Clarksville

• East Tennessee State University, Johnson City

• Middle Tennessee State University, Murfreesboro

• Tennessee State University, Nashville

• Tennessee Technological University, Cookeville

• University of Memphis, Memphis

• University of Tennessee, Knoxville

• University of Tennessee Health Science Center, Memphis

• University of Tennessee at Chattanooga, Chattanooga

• University of Tennessee at Martin, Martin

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at Vanderbilt university, faculty members received more than $500 million in external funding for research in 2009.

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volunteer State offers cosmopolitan culture, natural beauty

T here is plenty to see in Tennessee, from one end of the state to the other, with

attractions that stretch from Beale Street and Graceland in Memphis to Dollywood and the Great Smoky Mountains in East Tennessee.

The Volunteer State enjoys a favorable climate, reasonable cost

of living, some of the world’s most renowned health-care institutions, and abundant outdoor resources for fishing, boating and hiking. Twelve national parks, 53 state parks and 79 natural areas make it easy to get outside. For sports fans, Tennessee offers professional football, basketball and hockey,

NASCAR racing, major Division I college sports and 150 golf courses.

RAnKed FOR LIvABILITyTennessee has a number of

cities that rank high for their quality of life. Franklin in Williamson County ranked 66th on CNN/Money’s 2010 Best Places to Live list, and several Tennessee cities appear on the Livability.com national website that lists desirable places to live in the United States. Tennessee cities ranking on Livability.com include Collierville in West Tennessee; Brentwood, Clarksville and Mt. Juliet in Middle Tennessee; and Johnson City and Kingston in East Tennessee.

Nashville always receives accolades thanks to its country

mutual Attraction

Story by Kevin Litwin

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plenty of outdoor recreation opportunities abound, from the mississippi river in west Tennessee to the great Smoky mountains national park in east Tennessee. Je

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The national Trust for Historic preservation named dandridge, Tenn., one of its 2011 dozen distinctive destinations. nominated by the dandridge community Trust, the east Tennessee city was cited by the national Trust for its “idyllic natural setting amid the great Smoky mountains, its welcoming small-town spirit, and a charming historic downtown that epitomizes the quintessential Southern appalachian frontier town.” The national Trust noted

the community’s unique features, such as the historic county courthouse and museum, early 19th-century taverns and revolutionary war-era graveyard as well as antique shops, galleries and old-fashioned soda fountain at Tinsley-Bible drug co. For 12 years, the national Trust for Historic preservation has annually selected communities across the country that offer cultural and recreational experiences different from those found at the typical vacation destination.

Kudos For dandridGe

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music scene and Grand Ole Opry, but Music City is also the health-care capital of the United States, with some 300 health-related enterprises. More than two dozen higher education institutions (including Vanderbilt University) are in Nashville, and the city’s vibrant economy is drawing growing numbers of young professionals to the downtown district.

A WeALTh OF OPPORTunITIeSJackson, located in West Tennessee

between Memphis and Nashville, includes attractions like the Casey Jones Home & Railroad Museum. Jackson enjoys a good business climate, top-rated hospitals, award-winning schools, affordable housing and a wealth of recreational opportunities.

Two of the state’s largest cities are in

East Tennessee, a region graced with the Blue Ridge Mountains and its Great Smoky Mountains subrange. Knoxville is the third-largest city in the state and home to the University of Tennessee. Nearby is the Oak Ridge National Laboratory, one of the world’s premier research institutions. Chattanooga, in Southeast Tennessee, is the state’s fourth-largest city, offering attractions such as Ruby Falls, Lookout Mountain and the Tennessee Aquarium. Volkswagen opened its first North American manufacturing plant in Chattanooga in 2011.

STReeT SmARTSThe state has made a commitment to

preserving and restoring its historic downtowns through efforts such as the Tennessee Main Street Program. Nearly

Above: The annual cma music festival brings thousands of country music fans to downtown nashville pHoTo By JeFFre y S . oT To

Right: ruby Falls draws many tourists to chattanooga.

ouTdoors Galore 12National parks and historic sites in Tennessee

130State parks and natural areas

19,000Miles of river in Tennessee

150Golf courses in Tennessee

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30 communities across the state now have eye-pleasing downtowns that are growing economically, attracting new businesses and even luring residents. The Main Street Program helps communities with efforts to create vibrant downtown districts with interesting shops, restaurants, offices, nightlife and residential development.

Dyersburg, Savannah and Tiptonville in West Tennessee, Columbia and Murfreesboro in Middle Tennessee, and Dayton, Morristown and Rogersville in East Tennessee are among the state’s Main Street communities.

clockwise from Top: downtown columbia is one of Tennessee’s main Street communities; The Tennessee aquarium in chattanooga offers fun for the whole family; Beale Street in memphis draws crowds to its many blues clubs and restaurants. a

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Gallery

many well-known companies have locations in downtown chattanooga

Jeff Adkins

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Businesses in Franklin, Tenn.

Photo by Jeffrey S. Otto

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Gallery

Roane county courthouse

Photo by Brian mccord

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The James h. Quillen college of medicine at east Tennessee State university

Photo by Antony Boshier

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BuSIneSS SnAPShOTTennessee is home to eight Fortune 500 headquarters. nissan and Volkswagen plants make auto manufacturing one of Tennessee’s top industries, along with health care and energy technology. The state’s wide range of colleges and universities includes the university of Tennessee.

ecOnOmIc PROFILe

visit ouradvertisersAT&Twww.att.com

Blount Partnershipwww.pellissippiplace.com

BlueCross BlueShield of Tennesseewww.bcbst.com

Chattanooga Chamber of Commercewww.chattanoogachamber.com

City of Clarksvillewww.cityofclarksville.com

Cleveland Bradley Chamberwww.clevelandchamber.com

Cookeville-Putnam County Chamber of Commercewww.highlandsecd.com

Dyersburg Dyer County Chamber of Commercewww.dyerchamber.com

Gallatin Economic Development Agencywww.gallatingetsit.com

HTL Advantagewww.htladvantage.com

Knoxville-Oak Ridge Innovation Valleywww.knoxvilleoakridge.com

Maury Alliancewww.mauryalliance.com

Memphis Area Chamberwww.memphischamber.com

Metropolitan Nashville International Airportwww.flynashville.com

Middle Tennessee Development Alliancewww.middletennesseedevelopmentalliance.com

Monroe County Economic Developmentwww.monroeeconomicdevelopment.com

Networks Sullivan Partnershipwww.networkstn.com

Oak Ridge National Laboratorywww.ornl.gov

Pulaski-Giles County Economic Development Commissionwww.gilescountyedc.com

Rhea County Economic & Tourismwww.rheacountyetc.com

Tellico Reservoir Development Agencywww.tellico.com

The Roane Alliancewww.roanealliance.org

Washington County Economic Development Councilwww.thewcedc.com

What’s Online For more in-depth demographic, statistical and community information on tennessee, go to tnedg.com and click on Demographics in the Facts & Stats section.

demOgRAPhIcS

POPuLATIOn2000 – 5,689,2762010 – 6,346,105change – 11.5%

PeR cAPITA IncOme$23,557

medIAn hOuSehOLd IncOme (2009)$41,715

LARgeST cITIeS (2010)memphis – 646,889nashville – 601,222knoxville – 178,874chattanooga – 167,674clarksville – 132,929

emPLOymenT

admin. Support – 522,832Specialized Fields – 421,837management – 317,857retail – 278,392Technology – 108,535construction – 95,028agriculture – 80,229Sales – 75,862

TRAnSPORTATIOn

Seven different interstateseight interstate spurs around major metropolitan areas87,259 miles of roadway1,074 miles of interstate13,752 miles of state roads8,114 state-owned bridges13,752 locally owned bridges19 interstate rest areas13 interstate welcome centers9 truck weigh stationscOmmeRcIAL AIRPORTSBristol-Johnson-kingsport, Tri-cities regional airport, www.triflight.comchattanooga, chattanooga metropolitan airport, www.chattairport.comknoxville, mcghee Tyson airport, www.tys.orgmemphis, memphis international airport, www.mscaa.comnashville, nashville international airport, www.nashintl.com

memphis international is a central hub for Fedex and is the no. 1 transporter of air cargo in the world. The state also has 75 publicly owned, general aviation airports and 39 automated weather observing Stations

RAILSix major rail lines operate on 2,340 miles of rail and 20 short-line railroads operate on 829 miles of rail. Three major railroads cross parts of the state: norfolk-Southern, cSX, illinois-central/ canadian national. memphis is the third-largest rail center in the united States.

WATeRWAySThe state has 1,062 miles of navigable waterway. The Tennessee-Tombigbee waterway provides direct access to gulf of mexico harbors and international markets and the east coast.

memphis is the fourth-largest inland port in the united States

uTILITIeS

eLecTRIcTennessee offers an abundant supply of affordable electric power, available through the Tennessee Valley authority. electric rates in Tennessee are among the lowest

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in the nation, about 14 to 26 percent below the national average. Technical, financial and consulting services are available to help companies locate and find business solutions that generate savings and create profits. The TVa’s megasite program features community sites pre-certified for large automotive plants or other specifically identified industries.

gASmore than 35,000 miles of natural gas pipelines and distribution lines crisscross the entire state.

TenneSSee PuBLIc unIveRSITIeSaustin peay State university clarksville, Tn www.apus.edu enrollment*: 10,744

east Tennessee State university Johnson city, Tn www.etsu.edu enrollment*: 14,999

middle Tennessee State university murfreesboro, Tn www.mtsu.edu enrollment*: 26,654

Tennessee State university nashville, Tn www.tnstate.edu enrollment: 9,165

Tennessee Technological university cookeville, Tn www.tntech.edu enrollment: 11,700

university of memphis memphis, Tn www.memphis.edu enrollment:* 22,586

university of Tennessee-chattanooga chattanooga, Tn www.utc.edu enrollment:* 10.726

university of Tennessee Health Science center memphis, Tn www.utmem.edu

enrollment:* 2,692

university of Tennessee knoxville, Tn www.utk.edu enrollment:* 27,306

university of Tennessee-martin martin, Tn www.utm.edu enrollment:* 8,479

* undergraduate and graduate students, 2010-2011

Tennessee’s low cost of doing business is the direct result of the following business advantages and incentives:right-to-work staterecent workers’ compensation reformone of the lowest overall utility costs in the nationconsistently one of the lowest per-capita taxed states in the nationno state sales tax on purchases, installation and repairs of qualified industrial machinery

Ad Index 2 AT&T

4 BlounT PArTnershiP

50 BlueCross Blueshield of Tennessee

36 ChATTAnoogA ChAmBer of CommerCe

53 CiTy of ClArksville

8 ClevelAnd BrAdley ChAmBer

7 Cookeville-PuTnAm CounTy ChAmBer of CommerCe

32 dyersBurg dyer CounTy ChAmBer of CommerCe

C2 gAllATin eConomiC develoPmenT AgenCy

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27 middle Tennessee develoPmenT AlliAnCe

71 monroe CounTy eConomiC develoPmenT

Ad Index (cont.) 32 neTworks sullivAn PArTnershiP

40 oAk ridge nATionAl lABorATory

58 PulAski-giles CounTy eConomiC develoPmenT Commission

36 rheA CounTy eConomiC & Tourism

6 TelliCo reservoir develoPmenT AgenCy

C3 The roAne AlliAnCe

58 wAshingTon CounTy eConomiC develoPmenT CounCil

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Last week i had the opportunity to see where the internet comes from. well, sort of … i shot some photos at the electric Power board’s distribution center in Chattanooga, tenn. the city recently installed the fastest broadband network in the united States, matched only by hong Kong globally. Miles and miles of fiber optic cables transfer information to and from customers in the form of broadband internet and digital cable television using the center as a hub.

FROm OuR PhOTO BLOg: TenneSSee

POSTed By JeFF AdKInS

more Online See more favorite photos and read the stories behind the shots at throughthelensjci.com.

now that you’ve experienced tennessee through our photos, see it through the eyes of our photographers. visit throughthelensjci.com to view our exclusive photographers’ blog documenting what all went in to capturing those perfect moments.

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