GABBNOVEMBER 2015

GEORGIA DEPARTMENT OF ECONOMIC DEVELOPMENT:

• WHO WE ARE: marketing and sales arm of the State of Georgia

• WHAT WE DO: Strategically deliver economic development throughout the state by:

– Attracting new business investment

– Supporting the expansion of existing industry

– Promoting small businesses

– Locating new markets for Georgia products

– Attracting tourists from within and outside the state

– Promoting Georgia as a desirable location for entertainment businesses and projects

DEPARTMENT DIVISIONS

► International Trade

► Centers of Innovation

► Tourism

► Film

► Global Commerce

► GA Council for the Arts

• We assist businesses by coordinating:

– Site Location Services

– Market Research

– Business Incentives Analysis

– Employee Training

– Innovation and R&D Services

– Export Assistance

– International Office Assistance

GDECD: GLOBAL COMMERCE DIVISION

• Aerospace, Defense & Advanced Manufacturing

• Logistics, Energy, Agribusiness, & Food Processing

• Life Sciences & Advanced Technologies

• Corporate Solutions

• International Investment

• Existing Industry and Regional Recruitment

• International Trade

• Centers of Innovation

TEAM FOCUSED / INDUSTRY SPECIFIC

WHAT INDUSTRIES ARE HOT?

► Automotive

► Headquarters

► Aerospace

► Food processing

► Innovation Technology

SO…WHERE DO PROSPECTS COME FROM?

► Regional Project Managers

Work with Existing Industries and Communities to identify:

► Expansion Opportunities

► New Locations for Targeted Suppliers and Customers

► Project Managers attend Trade Shows throughout US developing contacts and leads ► Work multi-location projects throughout state

► 11 International Offices work with companies worldwide to encourage new locations in Georgia

► Site Selectors/Consultants/Brokers

► Walk ins or call ins

GLOBAL COMMERCE: STATEWIDE CONNECTIONS

Regional Project Managers

– Work with existing companies on expansion projects

– Recruit new companies targeted for their region

– Provide regional expertise and local connections

– 75% of New Job Growth comes from existing industries

HOW HAS THE RECRUITMENT PROCESS CHANGED?

20 years ago …

► Industries: 80-90% of projects were manufacturing-based. Today 50-60%

► Location searches: companies target regions. Today, neighboring states or any country anywhere in the world

► More players (states, countries) - more aggressive

~ Increased difficulty to capture jobs

~ Increased competition forces states and communities to be more

proactive and escalate marketing efforts (websites, trade shows)

► Technology: searches began with a phone call, letter or fax. Today, Internet.

HOW HAS THE RECRUITMENT PROCESS CHANGED?

20 years ago …

► Searchers: just a handful of site location consultants in US. Today, 5x as many projects are handled by site location consultants; we rarely work directly with company/large project

► Community Involvement: done by Chambers & privately funded. Local governments not involved in funding or structure of ED

► Publicly-financed local economic development authorities are the norm.

► Local economic development is sometimes totally funded by public dollars.

► Incentives: Giving land or tax abatements at local level was unheard of. Now they can exceed the amount of state incentives.

HOW HAS THE RECRUITMENT PROCESS STAYED THE SAME?

► Companies still need to make a profit and locate in or near their product market.

► Companies are risk-averse; reduce exposure to risk.

► It is important to position a Georgia site as a place that meets both these needs.

MOU development;

Prospect locates in

state!

Qualified leads become project with

assigned code name

Prospect requests best and final offer from communities

Prospect identifies possible locations

for the project; additional visits may be arranged

Visits arranged and conducted with

prospect, PM and local ED team

Prospect evaluates various state/

community submissions and

disqualifies locations

Initial site/ building/ community

database search conducted

PM determines location

requirements & project drivers

The Project ProcessLeads are developed

from various sources

CONFIDENTIALITY

► Vitally important to the company and the community

► Code names

► Non-disclosure agreements

► Local media, politics

► Dangers of social media and networking sites

PARTNERSHIPS ARE KEY

► Existing industries

► Communities

► State agencies

► Utilities and railroads

► Education community

► Business community

► Federal agencies

STATE INCENTIVES & PARTNERS

► Training & Hiring

► Tax Credits & Exemptions

► Financing

► Infrastructure & Permitting

► Site Location and Facility Assistance

► Business Plan

PRO-BUSINESS ENVIRONMENT:LOW TAXES & TAX CREDITS

► Low Effective Tax Rate

► 6% Corporate Income Tax Rate

► Single Factor Apportionment

► Corporate Tax Credits

► Job Tax Credit (OZ & QTJC)

► Investment Tax Credit

► Port Tax Credit Bonus

► R&D Tax Credit

► Retraining Tax Credit

► Child Care Tax Credits

► Available to a business or its headquarters engaged in:

► Manufacturing► Warehouse / Distribution► Research & Development► Telecommunications► Processing (data, information, software)► Tourism► Biomedical Manufacturing ► Alternative Energy Products Manufacturing

► Available to any business creating jobs in Opportunity Zones, Military Zones, as well as Georgia’s 40 least developed counties

► Job Tax Credits range from $1250 to $4000 per job, per year, for up to 5 years

PRO-BUSINESS ENVIRONMENT:JOB TAX CREDITS

IMPROVING COMPETITIVENESS

Workforce Development

► Governor's Office of Workforce Development @ GDEcD

► Governor’s High Demand Career Initiative

► WorkSmart

► Quick Start

► Computer coding vs. math

► “Go Build Georgia”

► Film Academy

► Transaction processing curriculum

NEW & EXPANDED INDUSTRY ANNOUNCEMENTS

Fiscal Year 2009 2010 2011 2012 2013 2014

Announcements 327 335 360 403 389 374

Investment$2.55 billion

$3.74 billion

$4.39 billion

$5.98 billion

$6.07 billion

$5.0 billion

Jobs 17,467 19,462 22,022 28,776 31,656 28,404

SMALL BUSINESS HAPPENINGS

► Georgia Small Business Week: 3rd week of February

► Small Business ROCK STARS: February 15 2016

► Mentor Protégé Connection

► Micro site www.Georgia.org/smallbusiness