Expansions by companies such as Steam Logistics and West Star Aviation in the past year helped the city's chief economic development group continue to blow past its original $1 billion investment goal.
The Chattanooga Area Chamber of Commerce hit its five-year mark of attracting $1 billion in new capital investment in mid-2021, three years early, according to the business group. Key business expansions in the 12 months ending June 30 helped put the figure at $1.09 billion with two years left in its Chattanooga Climbs economic development plan, the Chamber reported at its annual meeting this week.
"We've had so much interest in Chattanooga," Christy Gillenwater, the chamber's president and chief executive, said in a telephone interview on Thursday.
Over the past 12-month period, the Chamber wooed $38 million in capital investment and 685 jobs, the group reported.
Gillenwater cited Chattanooga's history of "building a great place" coupled with recent work of making intentional relationships with site selectors as a couple of reasons for meeting and surpassing the investment goal early. Also, helping existing companies grow and expand was key, the Chamber official said.
Even during the pandemic, the city stayed "focused on its message externally and we continued building the Chattanooga brand," Gillenwater said.
Chattanooga-based Steam Logistics earlier announced plans to create 400 jobs and is investing $11.2 million, according to the Chamber.
The third-party logistics company founded in 2012 will expand to the historic John Ross Building at Fourth and Broad streets next door to its existing offices and plans to more than double its workforce, Steam Chief Executive Jason Provonsha said.
He said in an email Thursday that the company has 865 employees with about 700 in Chattanooga.
"We added a dozen new hires on Monday and have been adding 12 to 20 per week for many months," Provonsha said.
West Star, an aircraft maintenance company at Chattanooga Airport, is growing its operation in a $17 million project that will add 100 jobs, officials said earlier.
The company plans to construct a new 40,000-square-foot hangar and retrofit an existing hangar as it adds 57,000 square feet of space, according to officials.
Terry Hart, president and CEO of Chattanooga Airport, said West Star has continued to boost its operations since landing at Lovell Field in 2015.
"There has been lots of activity," Hart said in an interview last year about the company that employs more than 250 people in the city.
While interest rates are up, inflation sits at a historically high level and supply chain issues persist, Gillenwater said Chattanooga has a diverse and resilient economy.
"I think we'll weather any potential storm well relative to other parts of the country," she said.
Gillenwater said that when it comes to the area's workforce, it's important to ensure people are aware of opportunities with companies, bolstering their skills and that transportation barriers are removed.
Janelle Reilly, market CEO for CHI Memorial, took over at mid-year as Chamber board chairwoman. Paul Leath, director of regional operations for Chattanooga Gas Co., is chairman-elect, according to the Chamber.
CHATTANOOGA CLIMBS
Three years into its five-year economic development plan, the Chattanooga Chamber has hit these marks:
• Capital investment: 110% of $1 billion goal.
• Total jobs: 63% of 5,000 goal,
• Average wage: 91% of $55,000 goal.
• New payroll: 63% of $500 million goal.
Source: Chattanooga Area Chamber of Commerce
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318. Follow him on Twitter @MikePareTFP.