Despite the tough economy, a survey of Hamilton County companies shows many are eyeing expansion and hiring within three years.
Businesses could create roughly 1,100 jobs and invest more than $200 million, according to the survey by the Chattanooga Area Chamber of Commerce released today.
“The survey underscores how much the economic strength of the community depends on the health of our existing businesses,” said Steve Hiatt, the Chamber’s existing business development director.
Asked why some area companies are talking about expansion amid the sluggish economy, he said, “Does Alstom and Volkswagen mean anything to you?”
VW is investing $1 billion in a new auto assembly plant to open early next year, while Alstom is plowing $300 million into a factory slated to make the world’s largest steam and gas turbines for power plants.
The Chamber survey showed:
– Some 63 percent of the 75 businesses that took part indicated expansion plans.
– Work force availability and stability was listed as one of the area’s top strengths.
– About 83 percent of businesses plan to introduce new products in the next two years.
However, the survey also revealed:
– Inadequate skilled labor in certain fields is one of the area’s greatest weaknesses. Hiatt cited manufacturing skills such as maintenance mechanics, machinists, welders and certain kinds of engineers.
– Only 51 percent of companies rate the quality of the work force as high or very high.
– Air passenger service received the lowest rating among community services.
Hiatt said while unemployment is high – Hamilton County’s jobless rate was 8.7 percent in August – the survey results suggest positive trends in job growth and business investment and that the city is doing better than most of Tennessee and the nation.
“I think Chattanooga stacks up very well with Tennessee … and national data,” he said.
Tom Edd Wilson, the Chamber’s chief executive, said the group’s existing business program is vital.
“A business retention and expansion program shows that the Chamber and local government are concerned with business needs,” he said. “In turn, the program improves the ability of local government to help businesses.”
The survey indicated that in the two years since August 2008, existing businesses were responsible for 49 percent of job creation and 63 percent of new investment.