2017 REGIONAL ECONOMIC DEVELOPMENT GUIDE 2 NASHVILLE ECONOMIC DEVELOPMENT GUIDE Table of Contents
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NASHVILLE 2017 REGIONAL ECONOMIC DEVELOPMENT GUIDE 2 NASHVILLE ECONOMIC DEVELOPMENT GUIDE Table of contents 4 Location 28 Health Care Management 7 Economy 31 Information Technology 10 Accessibility & Transportation 34 Music & Entertainment 12 International Business 36 Advanced Manufacturing 16 Demographics 38 Distribution & Trade 18 Talent & Workforce 40 Arts, Culture & Entertainment 24 Target Sectors 43 Contact Us 26 Corporate Services Photo credit: Warne Riker NASHVILLEREGIONAL ECONOMIC PROFILE DEVELOPMENT - SECTION NAME GUIDE XX 3 Population growth +10.2% 2010: 1,755,446 2015: 1,935,107 NASHVILLE ECONOMIC MARKET Montgomery Robertson Sumner Cheatham +4.0% Davidson Dickson Wilson 2010: 6,346,105 Williamson 2015: 6,600,299 Rutherford TENNESSEE Maury LOCATION Nashville Strategically located in the heart of the Tennessee Valley, the Nashville region is where businesses 50% of the U.S. thrive and the creative spirit resonates across industries and communities. The Nashville population (150 million people) lives within 650 Economic Market has 10 counties and a population of more than 1.9 million, making it the miles of Nashville. largest metro area in a five-state region. Many corporate headquarter giants call Nashville home, including Nissan North America, Bridgestone Americas, Dollar General, Hospital Corporation of America and Gibson Guitar. A national hub for the creative class, Nashville has the strongest concentration of the music industry in America. The Nashville region’s educated workforce not only provides an abundant talent pool for companies, but also bolsters the region’s vibrancy, artistic and musical essence, and competitive edge in technology and innovation. The Nashville region is defined by a diverse economy, low costs of living and doing business, a creative culture and a well-educated population. Cultural diversity, unique neighborhoods, a variety of industries and a thriving creative community make Middle Tennessee among the nation’s best locations for relocating, expanding and startup companies. 4 NASHVILLE ECONOMIC DEVELOPMENT GUIDE - LOCATION Population growth and top employers +1.6% +8.3% +3.7% 2010: 39,105 2010: 626,681 2010: 49,666 CHEATHAM 2015: 39,741 2015: 678,889 2015: 51,487 DAVIDSON DICKSON TOP EMPLOYERS TOP EMPLOYERS TOP EMPLOYERS A.O. Smith Water Products Vanderbilt University Tennsco Trinity Industries St. Thomas Health Services Shiloh Industries Gate Precast HCA ConAgra Foods +8.4% +12.3% +3.5% 2010: 80,956 2010: 172,331 MAURY MONTGOMERY ROBERTSON 2010: 66,283 2015: 87,757 2015: 193,479 2015: 68,570 TOP EMPLOYERS TOP EMPLOYERS TOP EMPLOYERS Maury Regional Medical Center Austin Peay State University Electrolux Home Products IBEX Global Trane Company Macy’s Logistics GM Spring Hill Manufacturing Convergys Corp. International Automotive Components +13.7% +9.6% SUMNER RUTHERFORD 2010: 262,604 2010: 160,645 2015: 298,612 2015: 175,989 TOP EMPLOYERS TOP EMPLOYERS Nissan North America UniPres USA Middle Tennessee State University Gap Inc. National HealthCare Corp. ABC Group +15.6% +13.1% WILLIAMSON 2010: 183,182 WILSON 2010: 113,993 2015: 211,672 2015: 128,911 TOP EMPLOYERS TOP EMPLOYERS Community Health Systems Cracker Barrel Old Country Store United Healthcare CEVA Logistics Nissan North America Tennova Healthcare Source: U.S. Census Bureau, 2015 estimates U.S. Source: NASHVILLE ECONOMIC DEVELOPMENT GUIDE - LOCATION 5 U.S. Population around Nashville More than half of the nation’s population resides within 650 miles of Nashville Seattle St. Paul Portland Minneapolis Milwaukee Buffalo Detroit Chicago Cleveland Salt Lake City Lincoln Pittsburgh Denver Indianapolis New York Kansas City Cincinnati Philadelphia St. Louis Baltimore Washington DC Oakland Colorado Springs Wichita San NASHVILLE Norfolk Francisco Las Vegas Oklahoma City Raleigh Albuquerque Memphis Greenville Los Angeles Charlotte Little Rock Phoenix Birmingham San Diego Ft. Worth Shreveport Atlanta Dallas Montgomery Austin Jacksonville Houston Population per square San Antonio New Orleans mile by county Tampa 0 - 24 Miami 25 - 49 50 - 99 100 - 499 500+ 6 NASHVILLE ECONOMIC DEVELOPMENT GUIDE - LOCATION ECONOMY Economic drivers The Nashville region’s economy continues to be a key driver of Nashville has ranked within the top 10 large metros for job growth business activity in Tennessee and the southeast region. The area and population growth for the past four years. The Nashville region benefits from a diverse economy, and the balance of health care and experiences low unemployment, steady in-migration, and a favorable corporate operations with manufacturing and supply chain sectors business climate, making it a top location for companies looking to makes Nashville one of the region’s most attractive growth centers. relocate or expand their business. JOBS ANNUAL ECONOMIC IMPACT 250,000 $38.8 billion jobs HEALTH CARE annual economic impact 60,000 MUSIC & $10 billion jobs ENTERTAINMENT annual economic impact 82,100 $9.5 billion MANUFACTURING jobs annual economic impact 87,500 TOURISM & $5.7 billion jobs HOSPITALITY annual economic impact NASHVILLE ECONOMIC DEVELOPMENT GUIDE - ECONOMY 7 Management, information, administration, Transportation, warehousing and professional and technical services (7,875) wholesale trade (3,211) Retail trade (5,991) Construction (2,966) 40,484 BUSINESS ESTABLISHMENTS Finance, insurance and real estate (4,869) Education, arts, ent. and rec. (1,695) (NASHVILLE MSA) Health care and social assistance (4,445) Manufacturing (1,440) Accommodation and food services (3,753) Miscellaneous services (4,239) TOP REGIONAL EMPLOYERS FORTUNE 500 / 1000 LOCAL COMPANIES HEADQUARTERED 2015 *National, regional or division EMPLOYEES RANKING headquarters IN THE NASHVILLE REGION Vanderbilt University HCA 63 Medical Center* 20,000 Community Health Systems 125 HCA Holdings* 10,380 Dollar General 138 Nissan North America* 10,100 Tractor Supply Company 415 Saint Thomas Health* 7,100 LifePoint Health 430 Vanderbilt University* 6,400 Delek US Holdings, Inc. 445 Community Health Systems* 5,000 Brookdale Senior Living 515 Randstad 4,361 Iasis Healthcare 697 Asurion* 4,000 Genesco 721 Electrolux Home Products 3,400 Cracker Barrel Old Country Store 763 The Kroger Co 3,212 Amsurg 766 National HealthCare Corp. 3,100 Shoney’s Inc.* 3,000 Lowe’s Cos. 2,981 General Motors 2,643 Cracker Barrel Old Country Store* 2,600 Gaylord Opryland* 2,500 Maury Regional Medical Center* 2,200 Middle Tennessee State University* 2,174 Triumph Aerostructures 2,135 AT&T 2,100 UPS 2,084 Amazon 2,050 Dollar General Corp.* 2,025 Source: Book of Lists, 2015-2016 Book of Lists, Source: 8 NASHVILLE ECONOMIC DEVELOPMENT GUIDE - ECONOMY Doing business Unprecedented growth UNEMPLOYMENT RATE (2015) CORPORATE BUSINESS CLIMATE Nashville MSA 4.6% Tennessee 5.8% Corporate income tax rate 6.5% Personal income tax rate 0% United States 5.3% Franchise tax 0.25% Sales tax rate 7% state (2.75% local option) Average effective 0.75% property tax rate KEY ECONOMIC INDICATORS (2010 - 2015) Unemployment insurance tax 2.7% (of first $8,000 in wages) Right-to-work state Ye s Nashville MSA State labor force 3,062,800 Tennessee 34.1% United States 23.5% Regional labor force 934,340 Cost of doing business 94% 20.0% CNBC state business 6 friendliness ranking 10.6% 19.6% CNBC state 2 8.8% infrastructure ranking 14.9% 3.8% CNBC state cost of doing 10 3.9% business ranking CEO magazine business 4 climate ranking Population Job GDP growth growth growth Cost-of-living index 95.2 Average lease rate $24.49 PSF for CBD office Average lease rate $23.77 PSF for suburban office PER CAPITA INCOME (2015) Average lease rate $4.27 PSF for industrial $47,392 $40,457 $46,730 Nashville MSA Tennessee United States Source: Tax Foundation 2016, State of Tennessee Department of Labor and Workforce Development, Moody's Analytics, CNBC Top States for Doing Business 2016, ACCRA Cost of Living Index, CBRE NASHVILLE ECONOMIC DEVELOPMENT GUIDE - ECONOMY 9 ACCESSIBILITY & TRANSPORTATION The Nashville region is centrally located within the United States, providing a competitive advantage to businesses that locate here. Nashville’s location and expansive modes of transportation allow manufacturing and logistics businesses to reach U.S. and international locations with ease and affordability. Tennessee shares a border with eight different states, providing connectivity to the southeast region and beyond. 12 million people live within a 2.5-hour drive 75% of the U.S. market is within a 2-hour flight 2-day trucking distance Three major interstates converge in Nashville 10 NASHVILLE ECONOMIC DEVELOPMENT GUIDE - ACCESSIBILITY & TRANSPORTATION AIR ROAD RAIL WATER TRANSIT • Nashville • Nashville is • CSX • Port of • Comprehensive International one of only six Transportation Nashville on plan in place to Airport (BNA) U.S. cities at the has two major the Cumberland break ground on is located only convergence rail yards in River; nine-foot regional transit eight miles from of three major Nashville, as well navigation channel project by 2020 downtown. interstate as an Intermodal accessible to Ohio highways – I-40, terminal, TDSI River, Mississippi • Intercity bus • The airport I-65 and I-24. automatic River and Gulf of system averages 440 distribution Mexico daily arriving and • The 440 Parkway terminal and • Music City Star departing flights downtown TRANSFLO suburban rail and provides service loop and Briley terminal. Nashville to more than 12.9 Parkway link is CSX’s division • Nashville B-cycle million passengers the urbanized headquarters.