Posted December 19, 2007

CHATTANOOGA, Tennessee -- Two-thirds of companies surveyed over an 18-month period by the Chattanooga Area Chamber of Commerce plan expansions that could create over 800 new jobs, bring an estimated $362 million in new capital investment and add over 770,000 square feet to local facilities.

The report offers a snapshot of the status of existing business, as well as the community’s strengths and weaknesses from the perspective of the businesses. 

The survey was conducted by the Chamber’s Business Retention and Expansion Visitation (BREV) team, composed of the Chamber and nine community partners. The results of the survey have been published by the Chamber in a report.

“The survey underscores the community’s indebtedness to existing businesses,” said Steve Hiatt, Chamber director of existing business development and BREV team chairman. “The six largest local projects announced in the last few months came from existing businesses.  Overall, existing business is responsible for over 88 percent of new job creation and over 85 percent of new investment in Chattanooga.”

Dr. Richard Casavant, dean of the UTC College of Business, praised the Chamber for its existing business program.  “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.”

From January 2006 to June 2007, BREV team members visited and surveyed 75 companies in Hamilton County.

The companies range in size from one employee to over 4,100 employees; 55 percent of the businesses have 100 or fewer employees. Thirty-two of the companies are producers of industrial goods; eight are in the consumer goods services sector, while six are in advanced manufacturing.

“The survey results suggest a number of positive trends in job growth and business investment in Chattanooga,” according to Hiatt.  “Responses show that over 80 percent of the businesses have introduced a new product in the last five years and over 80 percent anticipate introducing new products in the next two years.

“It is worth noting that in most cases, new product development comes out of a company’s Chattanooga operation, with several company research and development facilities located here.”

The survey also showed that 98 percent of the companies enjoy increased or stable sales.

“Market share of key products is also strong for area businesses, with 60 percent of companies indicating that their share of the market is increasing,” Hiatt said.  “It is promising that Chattanooga businesses also enjoy a national market, with 40 percent of surveyed companies reporting that their primary market focuses on national consumers.”

Overall, the Chattanooga area’s strengths received twice as many positive responses as compared to the number of responses regarding its weaknesses. “The Chattanooga community’s greatest strengths, according to the businesses surveyed, are its central location, workforce and quality of life, Hiatt said. “These attributes play an important role in our local companies’ abilities to grow and expand in the Chattanooga area.

“Of the community’s weaknesses, workforce was also the most frequently mentioned business concerns. Twenty-four percent of respondents included workforce as a community weakness which may suggest that some are not finding the skill sets required of their particular business.”

Hiatt said that the Chamber will use the results of the survey to shape the Chamber’s overall business plan in the areas of business retention, workforce development, education initiatives and public policy.

The BREV team used the Synchronist Business Information System™ as a tool to survey companies.  “The Synchronist System is a software tool to organize, analyze and report company information, giving community decision-makers invaluable insight into the dynamics of the local economy,” Hiatt said.

The Chamber was recognized by Blane, Canada Ltd. at the Annual Synchronist Users Forum in Chicago this year for excellence in the design, execution and impact of its existing business strategy and program. The award was based in large measure on the BREV team report.

BREV team members are Joyce Brinkmeyer, Chattanooga State; Celeste Longwith, Chattanooga Manufacturers Association; Stacy Wheeler, The Chattanoogan;  Judy Burnett, EPB; Paige Crumbliss, Manpower; Shara Claybrook, PSI/Families First Career Development Center; Julie Garren, Randstad; Scott Cooper, Tennessee Department of Economic and Community Development and Steven Moore, TVA.

Click here to view the 2007 BREV Report. Copies are also available by contacting the Chamber at 423-756-2121 or by emailing dbeecher@chattanoogachamber.com.