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Automotive Manufacturing Georgia: the Epicenter of Growth in the Southeastern Auto Corridor

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Automotive Manufacturing Georgia: the Epicenter of Growth in the Southeastern Auto Corridor Automotive Manufacturing Georgia: The Epicenter of Growth in the Southeastern Auto Corridor In this study: 1. Georgia’s Automotive Industry Overview 8. Highly-Skilled Talent 2. Southeastern Automotive Industry Overview 12. World-Class Training 4. Automotive Epicenter 13. Centers of Innovation and Resources 5. Kia’s Success Continues 14. Gateway to the World 7. Suppliers Thrive 15. Map and List of Automotive Companies in the Southeast Community and Economic Development Automotive Manufacturing Georgia: The Epicenter of Growth in the Southeastern Auto Corridor Automotive Automotive Epicenter – Georgia is at Innovation and Resources – Georgia’s Manufacturers with 50+ Workers the center of the thriving Southeastern world-class colleges and universities offer Automotive Corridor. Prime manufacturing the highest caliber graduates and research sites in Georgia are within hours, or even centers, keeping Georgia’s automotive minutes, of the region’s automotive Original manufacturers at the leading edge of Equipment Manufacturers (OEMs). innovation and productivity. Highly-Skilled Talent – Georgia’s workers Gateway to the World – Georgia’s are highly skilled and have an outstanding highway system, state-of-the-art ports, work ethic. Georgia is among the top extensive rail system and world-renowned workforce training states in the nation. international airport keep Georgia-made products flowing to customers. Word-Class Training – Georgia’s Quick Start program is internationally recognized Pro-Business Climate – For the fifth year for providing customized state-of-the- in a row, Georgia ranks No. 1 in the nation art training for Georgia’s workers. The among the top states for doing business. Quick Start staff brings years of expertise Georgia offers a variety of incentives when preparing the state’s workforce specifically designed to assist companies 51,000 for productive careers in automotive with the large initial investment auto- Workers employed by Georgia’s manufacturing. related manufacturing requires. 171 automotive-related facilities with 50 or more employees Groupe PSA Chooses Atlanta for its Top Auto Employers 880,000 North American Headquarters Automotive-related production Company Employment employment in the Southeast “While the overall business environment, Kia Motors Manufacturing Georgia 3,000 standard of living and university system (KMMG) played an important part in our decision, Blue Bird Corp. 1,900 3,200 our unique needs in terms of technology, Yamaha Motor Manufacturing Corp. 1,600 Jobs created by Georgia’s mobility innovation and car culture Toyo Tire North America Manufacturing 1,200 automotive-related locations ultimately identified Atlanta as our Textron Specialized Vehicles 1,100 and expansions in the last perfect choice.” Sentury Tire Co. (under construction) 1,000 three years Honda Lock (HL-A Co.) 1,000 Larry Dominique, President PSA North America Decostar Industries 1,000 Source: “Groupe PSA Chooses Atlanta for its North American Headquarters,” PSA Groupe, 1.23.2018 Freudenberg-NOK (2 locations) 935 31,000 Cottrell Inc. 900 Automotive-related engineers and TD Automotive Compressor Georgia LLC 850 production workers in Georgia Mobis Alabama LLC 842 Source: Automotive Database, Georgia Power Community Sources: EMSI 2018.2, press releases and Automotive & Economic Development, 2018 Database, Georgia Power Community & Economic Development, 2018 Georgia Power Community & Economic Development – Your Partner In Business © Georgia Power, October 2018 1 The Southeastern automotive industry is thriving. Over the past 15 years, the Southeast has become the nation’s automotive epicenter. The success of foreign auto makers in non-traditional auto manufacturing locations has invigorated growth in Alabama, Tennessee, Mississippi, South Carolina and Georgia. A new “Automotive Alley” has emerged, stretching from the Great Lakes to the Gulf of Mexico. MN WI The Southeast’s sound economy, stable and growing workforce, low unionization, MI right-to-work status and low cost of doing business are a few of the reasons auto IA manufacturers find the Southeast so appealing. OH IL IN MO KY TN AR New Vehicle Registrations in the Southeast RGIA MS AL GEO The Southeast is a hot market for automakers, with 2018 bringing more than 3.1 million in LA new vehicle registrations, a 23.8 percent increase since 2012. The Southeast accounts for 18 percent of all new vehicle registrations in the U.S. Auto manufacturers seek to be close Automotive Alley to sales, providing a clear advantage for the Southeast. New Vehicle Registrations in the Southeast 2018 Vehicle 3.5 State Registrations Note: The term ‘automotive alley’ refers to the automotive industry concentration in the U.S., Thomas ons) i Florida 1,354,330 ll Klier, FRB Chicago i 3.0 GEORGIA 493,765 ons (m i t a North Carolina 446,443 str 2.5 gi Tennessee 27 7,793 cle Re i 2.0 South Carolina 215,163 Alabama 212,993 New Veh 1.5 Mississippi 111,644 2011 2012 2013 2015 2017 2021 2010 2014 2016 2018 2019 2022 2023 2025 2020 2024 200 8 200 9 Source: IHS Markit, June 2018 Growing Southeastern Exports 10.3 Percent Annual Increase in the Southeast Since 2000 Also, Southeastern transportation $6 0 equipment exports have grown at 10.3 $55 percent annually since 2000. In 2017, $50 . S manufacturers in this segment exported . $4 5 $4 0 $61 billion in product, with $9.8 billion ons U i ll i $35 in Georgia. Transportation equipment $ B $30 includes automotive, aircraft and other $2 5 transportation-related products. $2 0 $1 5 $1 0 2011 2012 2013 2015 2017 2001 2010 2014 2016 2007 2002 2003 2004 2005 2006 2008 2009 2000 Source: Foreign Trade Division, U.S. Census Bureau, 2018 2 Georgia Power Community & Economic Development – Your Partner In Business © Georgia Power, October 2018 The Southeast Region is home to 16 auto, truck and bus assembly plants. Truck & Bus Assembly Southeastern Auto Assembly Plants Produce the Most Popular Models Blue Bird: Blue Bird’s headquarters and major manufacturing facility are located in Fort OEM Location Model Valley, Georgia. Blue Bird is one of the largest BMW Spartanburg, SC X3, X4, X5, X6, X7 (late 2018) school bus manufacturers in the country. General Motors Spring Hill, TN Cadillac XT5, GMC Arcadia Thomas Built Buses: Located in High Point, Honda Lincoln, AL Odyssey, Pilot, Ridgeline, Acura MDX North Carolina, Thomas assembles around Hyundai Montgomery, AL Elantra, Sonata, Santa Fe, Santa Fe Sport 15,000 school buses, commercial buses and Kia West Point, GA Sorento CUV, Optima specialty vehicles per year. Thomas Built Mazda Toyota Huntsville, AL Mazda Crossover, Toyota Corolla (2021) Buses is a subsidiary of Daimler Trucks Mercedes-Benz Vance, AL GLE, GLS, GLE Coupe, C-Class North America and is one of the largest bus manufacturers in North America. Mercedes-Benz North Charleston, SC Sprinter Van Altima, Frontier, Murano, NV Cargo, NV Nissan Canton, MS Freightliner: With assembly locations in Passenger, Titan, Titan XD Mount Holly and Cleveland, North Carolina, Altima, LEAF, Maxima, Pathfinder, Rogue, Nissan Smyrna, TN Freightliner has a major presence in the Infiniti QX60 Southeast. The Mount Holly location makes Toyota Blue Springs, MS Corolla medium-sized trucks while the Cleveland Volkswagen Chattanooga, TN Passat, Atlas SUV facility produces the company’s full line of class 8 truck models (DaimlerChrysler is the Volvo Ridgeville, SC S60 (late 2018), XC90 (2021) parent company). Timeline of Southeast Auto OEMs with Current Yearly Production Capacity Smrn, TN 550 Sprtnbur, SC Cnton, MS 450 450 West Pont, GA 360 Montomer, Lncoln, AL AL Huntsvlle, AL 300 300 300 Vnce, AL 180 Chttnoo, TN Blue Sprns, MS 150 150 Rdevlle, SC 100 Sprn Hll, TN North Chrleston, SC * 1 1983 1990 1993 1994 1999 2002 2003 2009 201 2017 2018 2021 *This plant is a current expansion to existing facility. Expanded plant will produce car vehicles from start to finish. Source: 2018 North America Car and Truck Assembly Plants, Automotive News, press releases Georgia Power Community & Economic Development – Your Partner In Business © Georgia Power, October 2018 3 Georgia is at the center of the thriving Southeastern automotive industry. Georgia is at the heart of the rapidly- • Southeastern automotive assemblers expanding Southeastern Automotive currently have the capacity to produce Corridor. This region is the new epicenter of approximately 3.3 million units, which automotive manufacturing growth in the includes units produced at Volkswagen’s United States. assembly facility in Tennessee and Kia’s recent production increase. • Transportation equipment exports in the Southeast region accounted for 21.9 • Automotive companies locating in the percent of the U.S. total transportation Southeast thrive with many expanding equipment exports in 2017. within a year of opening a new facility. Automotive Alley AutomotiveCars, Light Alley& Hea vy Vehicles within a 500 Mile Radius Cars, Light & Heavy Vehicles within a 500 Mile Radius Ohio Indiana Illinois W Virginia Virginia Missouri Kentucky North Carolina Tennessee Arkansas South Carolina ATLANTA Mississippi Georgia Port of Savannah Alabama Port of Brunswick Huntsville, AL Bowling Green, KY Springeld, OH Lincoln, AL Georgetown, KY N. Charleston, SC Montgomery, AL Louisville, KY Ridgeville, SC Vance, AL St. Louis, MO *2014 Spartanburg, SC Fort Valley, GA Canton, MS Timmonsville, SC *ATV West Point, GA Blue Springs, MS Chattanooga, TN Normal, IL Cleveland, NC Smyrna, TN Greensburg, IN High Point, NC Spring Hill, TN Lafayette, IN Mount Holly, NC Dublin, VA Princeton, IN Chillicothe, OH Williamstown, WV Source: Georgia Power Community & Economic Development 4 Georgia Power Community & Economic Development – Your Partner In Business © Georgia Power, October 2018 Georgia is home to world-class automotive innovation as well as one of the most successful automotive assembly plants. Kia Success Story Continues Quick Start Helps Companies with Workforce Training Needs Since the start of production on Nov. 16, 2009, Kia Motors Manufacturing Georgia, KMMG, has experienced a tremendous amount of success thanks to the commitment and “can Quick Start is the nation’s leading do” mindset demonstrated by its team members.
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