Charles Wood’s theory on how the Chattanooga region continues to attract international business is simple: Success breeds success.
“As you have large international companies that trust our community with their investment, that builds the level of comfort for others,” says Wood, who is currently serving as interim president and CEO of the Chattanooga Area Chamber of Commerce.
When foreign business leaders look at U.S. communities, they’re seeking viable industrial property with zoning and utilities in place. Cities unable to show promise of new workers, healthy housing markets and growing school systems have a much more difficult time attracting new businesses.
“You need community infrastructure,” says Wood. “Yes, you have an interstate; but it also means having a good airport, a good community college, a strong university.
“Then when you have all those things and they’re doing well and allow the community to be competitive — because you’re competing with other places across the country and sometimes world — that’s when the incentive conversation happens.”
For every dollar created in new jobs, there is a ripple effect throughout the community.
“Every new job impacts one family,” he says. “New wages have a significant multiplier impact. That’s money not in Chattanooga today.”
Chattanooga has attracted many foreign-based companies to open new plants and offices in the region, including Komatsu, Volkswagen, Gestamp, Wacker and Q Cells. But some of the foreign investment has also come from companies buying U.S.-based operations.
In 2009, the French company, Sanofi, bought the Chattanooga-based consumer health manufacturer Chattem; and Pilgrim’s Pride was acquired by the Brazilian multinational JBS S.A., the largest meat processor in the world. In 2016, China’s Haier bought GE Appliances, which owns Roper in LaFayette, Georgia.
Tennessee is home to over 1,000 foreign-based businesses that collectively have invested more than $44.3 billion in capital and employ more than 156,000 Tennesseans. The Tennessee Department of Economic and Community Development operates five offices around the world to help recruit even more foreign investment into the Volunteer State.
The state is known for being right-to-work, with no personal income tax. And for Chattanoogans, state and local tax burdens are some of the lowest in the country.
The state’s chief economic recruiter, Stuart McWhorter, says Chattanooga is a community that has the factors companies need to thrive.
“Tennessee is well located and we’re a relatively low-tax state that has a strong workforce for many of these companies wanting to operate in the U.S.,” he says.
GESTAMP
* Ownership headquarters: Spain
* Products manufactured: Structural metal stampings and welded assemblies
* Used for: Automobile production
* Local opening date: 2009
* Number of local employees: 647
KOMATSU
* Ownership headquarters: Japan
* Products manufactured: Heavy equipment and articulated haul trucks
* Used for: Construction and highway work
* Local opening date: 1986
* Number of local employees: 530
NOKIAN TYRES
* Ownership headquarters: Finland
* Products manufactured: All-weather tires
* Used for: North American driving conditions, with a specialized product ideal for Southeast Tennessee roads
* Local opening date: 2017
* Number of local employees: 350, but hiring to reach 475
NOVONIX
* Ownership headquarters: Canada
* Products manufactured: materials, equipment and services for the global-lithium-ion battery industry
* Used for: Electric vehicle and energy storage applications
* Local opening date: 2017
* Number of local employees: 93
PILGRIM’S
* Ownership headquarters: Brazil
* Products manufactured: Poultry processing
* Used for: Groceries
* Local opening date: 1952
Q CELLS
* Ownership headquarters: Korea
* Products manufactured: Solar equipment
* Used for: Commercial building
* Local opening date: 2019
* Number of local employees: 1,220
ROPER CORPORATION
* Ownership headquarters: Wholly-owned subsidiary of GE Appliances (parent company Haier, in China)
* Products manufactured: Ranges, cooktops and wall ovens
* Used for: Home appliances
* Local opening date: 1973
* Number of local employees: 2,600
SANOFI
* Ownership headquarters: France
* Products manufactured: Gold Bond, ACT, Unisom, Allegra, Xyzal, Nasacort, Icy Hot, Aspercreme, Zantac, Dulcolax and Cortizone 10
* Used for: Over-the-counter medications
* Local opening date: Originated as Chattem Medicine Co. in 1879; Sanofi acquired the company in 2010
* Number of local employees: 700
VOLKSWAGEN
* Ownership headquarters: Germany
* Products manufactured: Volkswagen Atlas, Volkswagen Atlas Cross Sport, Volkswagen ID.4
* Used for: Driving in style, reducing the carbon emissions
* Local opening date: 2011
* Number of local employees: 4,800
WACKER
* Ownership headquarters: Germany
* Products manufactured: Polysilicon and HDK™
* Used for: A variety of industrial (solar panels, semi-conductor chips) and household products (adhesives, clear coating)
* Local opening date: 2011
* Number of local employees: 750, but hiring to reach 800; adding 200 positions upon completion of upcoming expansion
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