The Southeast has seen explosive growth since the COVID-19 pandemic as businesses and individuals migrate to warmer and often more business-friendly climates. They're not all choosing the largest cities in the region, though. Smaller "micropolitans" are grappling with the rapid pace of this economic growth and its effects on their populations and resources. Savannah, Georgia, which has experienced a growth rate on par with Atlanta's over the past two decades, is one example.
While Savannah and neighboring Tybee Island continue to entice tourists, the area has also lured large employers like South Korean automaker Hyundai and its $7.6 billion, 2,906-acre electric vehicle and battery plant. It expects to employ about 8,500 workers at full capacity. Other established firms in the area continue to grow; Gulfstream Aerospace Corporation is expanding its production facilities to add around 1,600 jobs. Memorial Health, the second-largest employer in Savannah, is adding facilities there and in neighboring Pooler and Richmond Hill.
The Port of Savannah has expanded berth capacity for incoming ships and processing capacity for containers. New rail lines will boost product movement inland, increasing employment at the port and among supporting businesses. Additional warehouses and distribution centers have come online to handle the influx of products. All told, the area expects an additional 10,000 to 15,000 jobs by 2030.
Savannah has many characteristics that inform its economic contributions. Its proximity to the Atlantic Ocean allows for the thriving port on the Savannah River, and miles of marshland protect the coast while serving as a nursery for important species like the diamondback terrapin. Seafood is a mainstay of the area economy, and the marsh helps shrimp, oysters, crabs, and flounder thrive. Savannah is the largest National Historic Landmark District in the United States, boasting beautiful and historic architecture along with arts, culture, and restaurants that draw visitors from all over the world.
As expansion projects move toward completion and tourism and supporting hospitality industries also experience sustained growth, employers, residents, and elected officials are concerned about the lack of a sufficiently trained workforce, the strain on infrastructure and housing, and the potential for the area to barrel into the future and lose its historic appeal. The Savannah Economic Development Authority (SEDA), a public-private partnership focused on facilitating business investment, has identified several focus areas to address these issues.
On workforce development, it concentrates on education curricula to match employment needs at the K–12 and higher levels, encourages ex-military and their spouses from Hunter Army Airfield to remain in the area, and targets historically underrepresented demographics for career training programs.
Housing is a particular concern for maintaining Savannah's ambiance. SEDA representatives note that land zoned for residential development does not adequately address the expected need. Codes and attitudes have to change, they said, if they are to convince city residents to accept more multifamily construction and rural areas to invest in public utilities to support increased single family or multifamily development. Tax relief or incentives for residential development and stricter regulations on short-term housing, such as vacation rentals, could also provide support.
One SEDA member describes the approach of carefully evaluating needs against the effects of increased housing availability as "gentle density." The Atlanta Fed has a particular focus on economic mobility in its District, often focusing outreach on ways in which it can support improved outcomes at all income levels. "It was affirming to learn key leaders across the metro Savannah region are also actively focused on creating an economy that works for everyone, especially given the tremendous amount of economic growth on the horizon," said Reggie Chever, vice president and regional executive for the Atlanta Fed.
The Georgia Ports Authority (GPA), with its centralized approach to Georgia's ports, rail, and trucking interchanges, has emerged as a useful partner in addressing these issues. With its experience in the public-private partnership space, the GPA has acted as a collaborator for SEDA and guide for other businesses looking to expand into the area. It has particular interest in maintaining a strong labor pool as it has expanded capacity for larger ships through river dredging and improved berths, increased container capacity by adding cranes, and built new intermodal terminals inland.
Over the next several years, the GPA will invest around $4.5 billion in infrastructure improvements to increase big-ship berth capacity from seven to 12 and increase efficiency of transitioning goods from sea to land. It is renovating the 200-acre Ocean Terminal from a facility with three smaller berths to two large-ship berths. It is also financing a new exit ramp for truckers to bypass traffic as they head to Atlanta and adding another terminal on Hutchinson Island. Additionally, the agency is working with the Georgia Department of Transportation on a future project that will raise the Talmadge Memorial Bridge by 20 feet, which will allow larger cargo ships to pass underneath.
All this growth is in response to changes in shipping routes and methods that have taken place since the supply chain issues of 2020. Since 2014, the Port of Savannah has grown by 58.8 percent, moving to ninth from 13th among US ports in dollar value of goods processed. Growth has largely been in imports, with the value of goods processed increasing by over $18 billion from 2020 to 2023.
The GPA is actively helping Savannah's business and government leaders develop a strong workforce that aligns with the area's progress. "Our central purpose is to support economic development for Georgia and the nation," said Griff Lynch, GPA president and chief executive officer. "Ultimately, our success in that endeavor relies not only on our own efforts, but on unified collaboration with our maritime community and our local, state, and federal partners."
SEDA encourages employers to innovate recruiting and retention methods. Many are discussing a potential need for workforce housing, and the Home Builders Association of Greater Savannah, the Savannah Area Chamber of Commerce, and Housing Savannah, a nonprofit dedicated to providing affordable housing, have provided strong private sector involvement. Other companies in Georgia have gone farther in providing a live-work-play model. Some school systems have begun offering onsite childcare for staff. Memorial Health has invested in its own nursing school to train staff it knows it will need.
Bert Brantley, president and chief executive officer of the Savannah Area Chamber of Commerce, acknowledges the complex road ahead.
"The Savannah region is at a pivotal point where our growth is outpacing our competitor regions, yet we still see even more opportunity in our future. Strategic investments made in our ports, airport, military bases, and other infrastructure have positioned us well to weather any national economic headwinds that may be on the horizon," Brantley said. "Our challenges going forward will be ensuring that we have the right public policies in place that help us develop a trained workforce with adequate housing choices and available childcare options."
Megan Houck
Senior Business Analyst Regional Economic Information Network