New U.K. relationship may boost state's economy: Deal announces UK Trade & Investment to establish base in Georgia

Gov. Nathan Deal and Lord Stephen Green, Minister of State for Trade and Investment, announced today (May 18) from London that UK Trade and Investment (UKTI) will establish an office in Georgia to promote trade and foreign direct investment opportunities between the United Kingdom and the state.

“The United Kingdom is and will remain a strong business partner for the state of Georgia. The ties that bind us grow stronger each year, benefiting both economies,” said Gov. Deal. “In this mission to the United Kingdom, I hope to build on our firm foundation of friendship and trust to further opportunities that will create jobs and profitable investment opportunities.”

UKTI, part of the British Government, helps U.K.-based companies succeed in international markets and overseas companies bring high-quality investment to the country. The UKTI will be co-located with the British Consulate-General in downtown Atlanta. An officer is in place temporarily for the months of May and June to undertake preparation for the launch of the full-time trade office opening in early July with a team of two full-time trade officers. UKTI has been operating in Georgia through regular visits of trade officers from its Miami location.

“Trade and investment is at the heart of the UK’s growth strategy and we see great prospects for further growth of British business links with Georgia and across the Southeast,” said Lord Green. “That is why we are pleased to announce today an expansion of our UK Trade and Investment team in Atlanta to further develop these opportunities to the benefit of jobs in both our countries.”

Deal and Lord Green made the announcement during the governor’s first international mission since taking office. His visits to Liverpool and London are helping develop strategic partnerships with the United Kingdom to support job growth in both countries.

“The British government is delighted to be hosting Gov. Deal on this visit. The governor’s visit will help to advance additional opportunities to expand this successful economic partnership to the benefit of both our countries,” said Her Majesty’s Consul General, Annabelle Malins, who is accompanying the visit.

“We do a lot of business in and with the U.K. and establishing the new trade and investment office is a natural outgrowth of that relationship,” said Chris Cummiskey, commissioner of the Georgia Department of Economic Development, who is traveling with Deal on the mission.

The United Kingdom ranks as the sixth-largest export market and eighth-largest import market for Georgia. The state exported nearly $990 million there in 2010, with top exports including electrical machinery, wood pulp, aircraft or spacecraft, paper and machinery. Imports from the U.K. totaled close to $2.3 billion and consisted primarily of pharmaceutical products, nonrailway vehicles, electrical machinery, machinery, and aircraft or spacecraft.

More than 100 Georgia companies have operations in the U.K. and around 565 British facilities operate in Georgia, including 110 manufacturing locations. These U.K.-affiliated companies employ close to 35,000 Georgians. Through the Department of Economic Development, Georgia maintains both a business office and a tourism office in the U.K.

This program follows a series of high-level visits: Mayor Kasim Reed of Atlanta visited London in November, U.K. Minister Alistair Burt visited Georgia in December and a Liverpool delegation led by the University of Liverpool visited Georgia in January. Daily flights between Atlanta and London operate out of Hartsfield-Jackson Atlanta International Airport.

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Georgia Made... Georgia Grown...

Although born in Georgia, I was a military brat, leaving the state before I could walk. Moved back, married military and, at least for a bit, continued to move around again before settling back in my birth state. While I can't claim to have hit every corner of the globe, I've lived in enough places to say with some credibility that Georgia is the best of the best.

Georgia has a little bit of everything a person could want and a lot to be discovered. A little bit? Well, travel to New York and try to choose which show to see on Broadway. Georgia has a lot of top notch theater, but a little bit  in comparison to the overwhelming offerings in New York, "the City".

Go spend a month in Washington, D.C. doing nothing but visiting the Smithsonian and other museums - you'll need more time! Georgia has a wealth of history and fabulous museums, enough to keep you busy for months and months, if you're willing to get in the car. Not quite comparable to the volume in D.C., but they are well worth multiple visits.

I could go on! No matter where you're from or what you're looking for that's good, you can find it in Georgia.

Don't misunderstand though --- while we may have a little bit of everything, we also have a lot of some things that are uniquely "Georgia". Fantastic restaurants, home grown foods, talent in every artistic corner, festivals, warm people, thriving businesses, fun beaches, oh, the list is long.

Georgia is like one of those gift baskets people give sometimes when they're not quite sure what you might want. It's chocked full of everything imaginable. You just keep finding new things down in the basket, all different, all wonderful and all to be appreciated.

Because there are so many things in the Georgia 'gift basket', it can be daunting trying to find many of the great things created by Georgians. We want to support those who live in our state, shout about their great talents and accomplishments, figure out where to go, and eat or buy Georgia grown foods.

Now there is an excellent resource being developed by Camille and Bill Ronay, creators of event2000.com and of Ronay Guide fame, to find and share the best of the best in Georgia: Georgia Made Georgia Grown (GMGG).

I can't top their description: "Georgia Made Georgia Grown LLC markets and promotes artists, craft makers, entertainers, musicians, authors, food products creators, agri-tourism venue owners and other creative entrepreneurs in all 159 counties!... Whether you are looking for unique products and services as a gift, looking for the best in arts, crafts, food and entertainment for yourself, or looking for corporate resources from local sources in Georgia, GMGG has what you need."

I have been seeing tweets and tidbits on Facebook for a while, but only recently really took a good look at the site. Impressive to say the least. GMGG is going to become "the" place to be for Georgia's creative and entrepreneurial talent as well as an excellent resource for anyone visiting or living in Georgia.

If you are a Georgia farmer, artists, crafter, entertainer, serve Georgia grown in your restaurant, shop owner, or create anything in Georgia, go check out the site. If you'd like to find sell items made or grown in Georgia, go check out the site.

Get on board early. Based on past performance and the agressive marketing the Ronay's have already undertaken, this is going to be another successful venture by the pair. They are active in promoting Georgia and GMGG is developing into an outstanding resource. If you're on Facebook, be sure to find them and hit the "like" button on each of their GMGG channels (links are on the website). You'll receive a lot of quality information and learn so much about your fellow creative Georgians.

If you love the state and want to support the people and businesses that make it a fantastic place to live, go visit Georgia Made Georgia Grown.

- Janet McGregor Dunn
Editor, Georgia Front Page

Major buyer quits Georgia tobacco

In an industry slowly fading in Georgia, tobacco growers got a recent kick in the pants when their major purchaser announced it would no longer buy from them.

At a meeting in Alma, Ga., Oct. 14, Philip Morris USA announced to more than 75 growers that it would honor the three- and five-year contracts it still has with growers, as long as they meet the contracts’ requirements. But it will not give new contracts, said J. Michael Moore, tobacco specialist with University of Georgia Cooperative Extension.

The company will stop buying from Florida growers, too, essentially ending its business in the two states.

“This was no doubt a major blow. Not only to participating growers, but also to south Georgia’s economy,” said Moore, who attended the meeting.

In 1996, Georgia’s tobacco crop was worth $206 million. Last year, it was worth $57 million.

The company buys roughly half of Georgia’s crop, Moore said. The announcement affects half of the 200 to 225 tobacco growers left in the state.

Growers and industry leaders are currently trying to get the remaining three companies still buying in Georgia to buy more or persuade new companies to do business in the state, Moore said.

“We hope this is something we can overcome,” he said.

But it’s going to be a challenge.

With higher federal taxes on U.S. cigarette consumption and the Federal Drug Administration’s newfound regulatory sway over the product, companies aren’t looking to carry a big inventory of tobacco. It’s estimated that some have enough low-quality tobacco now to last them for the next decade, Moore said.

The number of tobacco growers continues to decline in Georgia. There were around 350 two years ago. In 2004, there were 1,000.

That same year, the federal government ended its Depression-era tobacco quota program at the growers' request. It provided price support but restricted how much they could grow and where. Growers and quota owners were compensated for the end of the program. They now can grow as much tobacco as they feel they need to fill contracts.

Filling those contracts was a challenge this year in Georgia, where disease and wet, stormy weather hit springtime planting and summer harvest hard. Of the 15,000 acres planted, Moore said, 1,700 acres or more were lost.

According to the Georgia Agricultural Statistics Service, Georgia’s average yield this year is 1,500 pounds per acre, or 600 pounds per acre less than last year. This is the lowest average yield ever recorded in the state.

The decision to grow tobacco in Georgia has become harder and harder for growers to make in recent years, Moore said. Many have sold their tobacco-related equipment, which can’t be used for any other crop.

Canadian growers are looking to get back into the tobacco business, calling down their interest to buy good equipment. If a Georgia grower is too uncertain about next year’s crop, he said, they may want to think about selling equipment while they can get a good price for it.

By Brad Haire
University of Georgia

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Engauge Helps Georgia Introduce New Business-Focused Website

(BUSINESS WIRE)--Engauge, a total marketing solutions agency, and the Georgia Department of Economic Development (GDEcD), announce the launch of a new business-focused website for the state of Georgia, www.Georgia.org.

Charlie Gatlin, GDEcD’s deputy commissioner for tourism and marketing said, “Particularly today, with the economy being an overriding theme in business, GDEcD recognizes the need to be a strong voice for commerce in the state. Georgia.org is a comprehensive resource for doing business in Georgia, and represents our commitment to supporting and growing industry in the state.”

Engauge designed the website to broadly address issues that are unique to businesses. The website provides information on:

* the benefits of choosing Georgia, such as low business and living costs and education opportunities;
* doing business in Georgia, covering topics like relocation and international business;
* specific Georgia industry information, covering a dozen key strategic industries;
* community development, addressing such things non-profit development and chambers of commerce.

From a technology perspective, the site was designed “modularly,” meaning that areas of the site are moveable and allow for new content to be added and shifted around without the complication of making it fit a fixed design. In addition, the site was developed to give GDEcD control of the content, through the use of a content management system (CMS).

“In many ways, what makes Georgia.org a success is what you don’t see,” said Al Skelton, group account director with Engauge. “It’s all the behind the scenes stuff. Not only does GDEcD have a large amount of control in terms of content, the site also has a flexible design that gives them freedom in the placement of content. All of these things make the site a long-term solution for GDEcD.”

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IRS Announces 2009 Per-Mile Business Driving Rate

Rismedia ---The Internal Revenue Service (IRS) has announced the new national per-mile business driving rate of 55.0 cents for the U.S. taxpayer, effective January 1, 2009. This new rate compares to a rate of 50.5 cents-per-mile from January 1 through June 30, 2008, and a rate of 58.5 cents-per-mile from July 1 through December 31, 2008.

“The change in the 2009 national per-mile rate reflects a combination of factors, but is driven primarily by the fluctuation in fuel prices,” states Ted Schuerman, senior project leader and vehicle cost expert within Government Services at Runzheimer International. “Other cost components, such as depreciation, insurance, and maintenance costs, remained relatively stable.”

To establish the annual per-mile rate, the IRS works closely with Runzheimer International, the Wisconsin-based workforce mobility firm. Runzheimer specializes in vehicle, travel, and living costs and has provided this service to the IRS since 1980.

The 55.0 cents-per-mile standard is the amount that a U.S. taxpayer can deduct for vehicle expenses on a 2009 tax return for business miles driven.


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Farmers Forced to Leave Tomatoes in Fields

When it comes to food, perceived danger can be as harmful as a real one, especially to a farmer’s wallet. Georgia tomato growers learned that lesson firsthand when consumers stopped buying fresh tomatoes during this summer’s Salmonella scare linked to fresh tomatoes.

In July, the U.S. Food and Drug Administration issued a nationwide warning regarding a Salmonella risk on varieties of raw red plum, red Roma and round red tomatoes.

“The disease wasn’t found on Georgia tomatoes, but the general public’s perception was that all tomatoes were affected,” said Archie Flanders, an economist with the University of Georgia College of Agricultural and Environmental Sciences.

The scare cost Georgia farmers $13.9 million. Georgia grows about 3,000 acres of tomatoes, worth between $60 million and $80 million annually.

As president of the Georgia Fruit and Vegetable Growers Association, Bill Brim tried to tell consumers through media interviews that Georgia tomatoes were safe. He ate tomatoes straight from his field on television.

“I was interviewed by (all the major Atlanta television media), and I tried my best to persuade people that Georgia tomatoes are safe,” Brim said. “The national news media really put us under by telling people not to eat any tomatoes unless they have the vine attached. What was so sad was that it wasn’t true.”

Georgia growers weren’t the only ones. “Growers in Tennessee, north Florida, Louisiana, North and South Carolina, and of course California, were all hit hard, too,” he said.

Brim grows 80-acres of tomatoes in Tifton, Ga. The summer scare cost him $1.2 million. “This was a very significant loss for small- and large-scale farmers,” he said.

Tomatoes are one of Brim’s most expensive crops to grow. An acre of tomatoes costs him $12,000. Bell pepper costs $8,000 per acre. Squash costs him $2,500 per acre, he said.

Georgia tomato growers lost $1.6 million from harvested tomatoes that were picked but not sold. Much of the state’s tomato crop wasn’t harvested because there wasn’t a market for them, Flanders said.

“When wholesalers aren’t buying produce, growers know the market is lost,” Flanders said.
To determine the total impact of the scare, Flanders led a survey conducted by the UGA Center for Agribusiness and Economic Development.

Most Georgia tomatoes are grown in nine southwestern counties and one county in northeast Georgia. Farmers there were surveyed by UGA Cooperative Extension agents.

The survey revealed that 32 percent of Georgia’s tomato acreage was left in the field due to decrease demand caused by the scare, Flanders said. Another 9 percent was lost to discarded harvested and packed tomatoes due to decreased demand.

Before the scare, Brim’s tomatoes were bringing $19 a box. Three days after the FDA warning, the same tomatoes dropped to $4 a box. A box costs him $8 to grow. That doesn’t include the packing cost.

“All the food chains and grocery chains quit taking them,” he said. “I dumped 30 percent of our crop and left 30 percent in the field. It was heartbreaking. … You do an excellent job growing it, and then you don’t have a market to sell it. You just have to leave it to rot.”

Each year, Georgia has two tomato crops, one harvested in summer and one in fall.

Brim is now harvesting 40 acres. Prices are still.

“I think there are going to be more and more people getting out of the tomato business because the market was just declined,” Brim said. “We just hope the market will turn around and consumers will get the confidence back. I stand behind the fact that Georgia-grown produce is the safest food in the world.”

By Sharon Dowdy
University of Georgia

Sharon Dowdy is a news editor with the University of Georgia College of Agricultural and Environmental Sciences.

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FBI: The Cyber Threat Today

Crooks and spies using the Internet to commit crimes against U.S. businesses and to attack government networks are getting more sophisticated, and the increasing number of such crimes not only impacts the economy but threatens national security.

That’s the message Shawn Henry, recently appointed head of the FBI Cyber Division, delivered to a group of reporters on Wednesday, revealing that we have thousands of open cases into cyber crimes and organized cyber attacks and detailing our strategy to protect the nation’s networks.

One case in point: We joined our international partners yesterday in announcing a major takedown of a transnational criminal network that was buying and selling stolen financial information through an online forum known as “Dark Market.”

“The business of the United States is done on the Internet,” said Henry, a veteran cyber crime investigator. And the information that flows electronically 24/7 is increasingly the target of not only identity thieves and scammers, but organized crime groups, terrorists, and overseas governments.

“There are a number of countries who have an interest in stealing information from the United States,” Henry said, explaining that as many as two dozen nations have taken an “aggressive interest” in penetrating our networks. In the past year, he added, “the malicious activity has become much more prevalent.”

Malicious activity could come in the form of attacks that deny access to websites, that compromise sensitive information, or that introduce “botnets” that spread viruses and covertly co-opt computers to carry out data theft.

“There are a number of countries who have an interest in stealing information from the United States,” Henry said, explaining that as many as two dozen nations have taken an “aggressive interest” in penetrating our networks.

New groups of hackers—virtual gangs—are a growing threat as well, banding together to pool their expertise and carry out coordinated cyber attacks. Henry pointed out that in years gone by, if a gang wanted to rob a bank, it needed crooks with various skills—safe cracker, get-away driver, look-out, etc. That’s essentially what we’re seeing in the cyber world today, only these virtual gang members have never met in the physical world. “There are organized groups that are very successful,” Henry said.

The 3 Ps. To address the rising threat, the Cyber Division has a threefold strategic plan—“Prioritize, Proactive, Partnerships.”

By prioritizing our efforts, we can go after the most critical threats. Being proactive means adopting the same time-tested investigative techniques that have been so successful in our physical crime investigations—the use of informants, electronic surveillance, and placement of undercover agents to penetrate and dismantle virtual criminal operations.

The third “P”—partnerships—means building even stronger relationships with law enforcement agencies worldwide. He said we’ve worked with such countries as Great Britain, Canada, Russia, and Turkey to swap best practices and techniques. We’ve also sent agents to Romania to work with law enforcement there, leading to nearly 100 arrests in cyber crime cases representing “tens of millions of dollars” in losses, Henry said.

And the Internet Crime Complaint Center, or IC3—a partnership between the FBI and the National White Collar Crime Center—continues to assist state and local law enforcement in fighting cyber crime. Since its establishment in 2000, IC3 has received more than a million complaints. In the last couple of years, there’s been an “uptick” in the number of reports, according to Henry. Lately, they’re coming in at the rate of nearly 20,000 per month.

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Mercer to Offer Free GMAT Course For Applicants to Two of Its Programs

Mercer University’s Eugene W. Stetson School of Business and Economics will offer free GMAT prep courses for up to 40 qualified applicants to two of its most popular programs - the Master of Business Administration and its new Master of Accountancy program.

The course will run from 2 to 6 p.m. for four Saturdays, Sept. 6, 13, 20, and 27, in the Business and Education Building on Mercer’s Cecil B. Day Graduate and Professional Campus in Atlanta. The course will be held for applicants in time for second session of the fall semester, as well those seeking admission to the spring semester. The apply to the programs, contact Tracey M. Wofford, associate director of admissions, at (678) 547-6422 or wofford_tm@mercer.edu. For information about the GMAT prep course, or to register once application has been made to the graduate programs, contact Kaitlin David in the School of Business at david_kr@mercer.edu or (678) 547-6161.

Prospective students can visit the School’s Web site, www.mercer.edu/business and click the prep course link for registration information and to check future prep courses and dates.

The Stetson School of Business and Economics holds the highest level of accreditation available for business schools from AACSB International – The Association to Advance Collegiate Schools of Business. Long a leader in business education in Atlanta with its evening MBA program, the School of Business launched this fall the Master of Accountancy. Both the MBA and MAcc are evening programs targeted toward the growing group of professionals in the Atlanta area in need of career-focused programs to help them succeed.

The Master of Accountancy degree will be offered over one calendar year. The degree is a 30-semester program comprised of 10 courses. The degree is intended to provide students with the knowledge and skills consistent with a professional graduate degree. The program is designed to prepare students for careers in public or private accounting and enable them to achieve career advancement in the accounting profession. While providing an in-depth study in basic areas of accounting, through its electives, it permits specialization in one of two emphases: public accounting (including tax and financial accounting) and international accounting (relevant to public and private accounting).

The Flexible MBA is a self-paced program that provides adults with the flexibility to attain an advanced business degree without interrupting their careers. Classes are held one evening per week in eight-week sessions, allowing students to complete their degrees along a timeline they design.

The course and materials will be available free of charge to the first 40 qualified individuals who register with the Atlanta Office of Admissions. To qualify, individuals must make application to the University’s Atlanta MBA or MAcc program and provide transcripts showing that they have previously earned a four-year degree from a regionally accredited institution with a minimum 2.5 GPA. International applicants must also have achieved the minimum required TOEFL score for admission and provide an evaluation of any international transcripts showing equivalency to a U.S. four year degree.

For more information, visit the degree programs section of the Stetson School of Business Web page at www.mercer.edu/business. Additionally, online applications for all degree programs are available on the Web site through the “Application” link within each degree program's information page. To contact the Atlanta Office of Admissions for the School of Business, call Tracey M. Wofford, associate director of admissions, at (678) 547-6422 or e-mail wofford_tm@mercer.edu.

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Credit Aftershocks Damage Nation’s Growth Prospects; Oil Holds the Key to Fed’s Next Move, Says Georgia State Forecaster

The aftershocks from the credit crisis which continue to spread to other sectors have not only put the economy into a recessionary state but also have damaged its growth prospects until 2010, according to Dr. Rajeev Dhawan, director of the Economic Forecasting Center at Georgia State University. In his Forecast of the Nation, released today, Dhawan warns that any additional uptick in oil prices could put the economy further at risk and recovery further away.

“Despite all of the aftershocks from the credit fallout, oil has been the wild card testing the Fed’s patience,” he said. “If the price of oil does not retreat below $100 per barrel by October on a sustained basis, worries of inflation will cause the Fed to raise rates much earlier than expected.”

Dhawan expects the price of oil will drop to an average of $89 per barrel in the fourth quarter of 2008 allowing the Fed to hold off on rate hikes until next spring. However, he anticipates that the Fed will be somewhat aggressive raising the federal funds rate by 250 basis points by mid-2010.

“The Fed hikes will begin even before growth catches its stride which is a departure from the norm,” he said. “But rather than waiting until job growth picks up to normal levels, the Fed will hike the federal funds rate to show it is serious about containing inflation.”

While Dhawan says that the Fed will be able to stave off inflation, he cautions that the fragile health of the banks will cause the economy to recover at a slow rate.

“Despite efforts by the Fed and the Treasury to help bail out the financial industry, lenders still need to keep liquidity or cash on hand to deal with charge-offs that they will have to take as loans continue to go sour,” he said. “Still, some banks are on the brink of failure and it will be up to the FDIC to bail them out and should they run short of funds, look for the government to bail out the FDIC leaving taxpayers with the tab. Thus my forecast calls for an anemic recovery in 2009 and a below potential growth in 2010.”

Highlights from the Economic Forecasting Center's National Report:
The GDP growth fails to cross the 2.0% mark until late-2009. Overall, real GDP growth for 2008 will be 1.4%, decelerating to a 0.5% rate in 2009. In 2010, real GDP will grow by 2.2%, still below the trend rate of 3.0%.
For 2008, consumption growth will be 1.0%, before moderating to 0.3% in 2009. It will rise by 1.9% in 2010. Durable goods consumption will decline by 2.8% in 2008 and 3.7% in 2009, before experiencing a sharp 3.9% rise in 2010.
For the year 2008, oil prices will average $106.7 per barrel, before moderating to just below $90.0 per barrel in 2009 and 2010.
Housing starts will average 0.949 million units in 2008 and will drop to 0.900 million units in 2009. Housing starts will rise to 1.209 million units in 2010.
For 2008, the inflation rate will average 4.3% but will moderate sharply to a 2.2% rate in 2009. In 2010, the inflation rate will average 2.0%. Meanwhile, the core CPI inflation rate will average 2.3% in 2008 and 2009, before rising mildly to 2.4% in 2010.
The unemployment rate will average 5.5% in 2008, but it will rise to 6.3% in 2009, dropping slightly to 6.2% in 2010.

Georgia and Atlanta—Georgia’s Boat Tied to National Woes

Georgia’s job picture continues to look bleak despite gains in education, healthcare, and government jobs during the second quarter of 2008. According to Dhawan, the problem stems from the housing downturn which has had a negative ripple effect throughout Georgia’s economy. Additionally, high gas prices and the credit crisis have added to the area’s problems and, like the national economy, Georgia’s growth prospects will not return until 2010.

In his Forecast of Georgia and Atlanta, Dhawan says that Georgia’s residential and commercial real estate sector continues to show signs of weakness which not only impacts construction jobs but has spread to supporting sector jobs as well. While future construction growth depends on what the economy’s growth warrants, it is also a function of credit market conditions.

“Ultimately, it is the willingness of the banking sector to make new construction loans that makes future construction activity possible. The ability to finance construction in turn depends on the quality of the bank’s balance sheet,” says Dhawan. “Unfortunately, Georgia has been hard hit by the credit crisis with a proportion of unprofitable lending institutions currently at 25%, almost double the national rate.”

In addition, high gas prices are negatively impacting consumer spending and are wreaking havoc with Delta, the area’s largest employer, which has already announced major cutbacks in routes and jobs.

Net-net, says Dhawan, the prognosis for Georgia’s growth in the coming quarters is bleak. The question is when can the area expect to see job growth return?

“I expect job losses to continue at a somewhat heavy rate for the rest of the year and anticipate a net loss of 35,300 jobs for calendar year 2008,” he said. “In 2009, we’ll see the decline slow to 2,600 losses before the recovery strengthens in 2010 where we can expect to see 61,700 new jobs.”

However, he cautions, “Like the national picture, this forecast assumes that oil prices moderate below $100 per barrel by late October and stay low.”

Highlights from the Economic Forecasting Center's Local Report:
For calendar year 2008, we anticipate 35,300 net losses (14,600 premium jobs). In 2009, 13,900 job losses are expected in the first half of the year, followed by 11,300 job gains in the second half, making for 2,600 job losses (11,000 premium jobs losses). The recovery will strengthen in 2010 when 61,700 jobs will be created (12,000 premium jobs).

Atlanta’s employment growth will remain negative for the remainder of 2008 for a total loss of 20,600 jobs (8,000 premium job losses). For calendar year 2009, Atlanta will post 3,900 job gains, but 4,100 premium job losses. The recovery will strengthen in 2010 when 44,200 jobs are created (10,200 premium job gains).

Atlanta's total housing permits will plummet by posting a 52.1% drop in 2008 after a 34.6% decline in 2007. Permit activity will again decrease at a slower rate of 5.0% in 2009 but will inch up in 2010, posting an 18.4% increase.

Most MSAs in Georgia will exhibit slower employment growth in 2008, with Albany, Columbus, Dalton, and Macon observing job losses. Only Savannah, Gainesville and Warner Robins will see any increase in employment in 2008, though increases will average below 1.0%.

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United States and Cities Fare Well in a KPMG Report on Business Tax Costs

PRNewswire/ -- San Juan, Puerto Rico, Baltimore and Atlanta have the most favorable tax structures for businesses among U.S. cities/locations with populations exceeding 2 million, according to a study released today by KPMG International (KPMG).

Of the 35 large international cities highlighted in the study, San Juan, Baltimore and Atlanta all rank in the top ten -- first, eighth and ninth, respectively. And among the 10 countries in the study, the U.S. ranked fifth in terms of the favorability of its overall tax structure for business.

KPMG's 2008 Competitive Alternatives: Focus on Tax study is a global comparison of the total tax burden that may be faced by companies in 102 cities throughout 10 countries including corporate income taxes, capital taxes, sales taxes, property taxes, miscellaneous local business taxes and statutory labor costs. The study is intended to provide a guide for companies wanting to compare the tax burden they may incur in different cities around the world.

"Cities across the United States recognize that attracting and retaining businesses of all sizes is important for a vibrant local economy," said Hartley Powell, national leader of the Strategic Relocation and Expansion Services practice at KPMG LLP, the U.S. member firm of KPMG International. "As the survey results indicate, certain cities are leaders in developing a tax environment that encourages business development, and tax costs are a key consideration in the site selection process."

According to the study, San Juan had a total tax index of 46.6 representing tax costs 53.4 percent below the U.S. national average of 100.0. San Juan was followed by Baltimore and Atlanta at 92.1 and 95.1, respectively.

Other high-ranking large U.S. cities included Tampa, Fla. (98.1), Detroit (98.6), and Phoenix (98.8).

Industry Classifications

The results of the study also vary depending on the type of business. As a location for R&D operations, the three cities with the most cost-effective tax structure in the large-sized city category were San Juan (61.8), Baltimore (88.4), and Portland, Ore. (88.5).

For manufacturing operations, where property taxes and taxes on equipment and capital are of interest, the three, large-sized U.S. cities with the most cost effective tax structure were San Juan (42.4), Baltimore (91.3), and Atlanta (95.3).

The services industry, on the other hand, tends to be most affected by statutory labor costs. The top three, large-sized U.S. cities with the most favorable tax structure for services included San Juan (65.5), Atlanta (92.7) and Baltimore (94.2).

Mid-sized Cities

In the mid-sized city category (populations between 500,000 and 2 million), the top cities included Omaha, Neb. (94.2), Greenville-Spartanburg, S.C. (95.2), Little Rock, Ark. (95.7), Milwaukee, Wis. (96.0), Youngstown, Ohio (97.1), Raleigh, N.C. (98.1), McAllen, Texas (98.5), Buffalo, N.Y. (98.9), and Salt Lake City, Utah (99.1).

Small-Sized Cities

In the small-sized city category (populations between 100,000 and 500,000), the top cities included Saginaw, Mich. (92.0), Cheyenne, Wyo. (92.1), Cedar Rapids, Iowa (92.1), Sioux Falls, S.D. (92.8), Shreveport, La. (92.9), Lexington, Ky. (93.0), and Montgomery, Ala. (95.2).

The full text of the 2008 study by KPMG International is available online at www.CompetitiveAlternatives.com.

The total tax index is a measure of the total taxes paid by corporations in a particular location and industry, expressed as a percentage of total taxes paid by similar corporations in the United States. Thus the United States has a total tax index of 100.0, which represents the benchmark against which the other countries and cities are scored.

Forbes Ranks Georgia as Third Best State for Alternative Energy from Biomass

Forbes Magazine has tapped Georgia as the third best state in the nation for alternative energy from biomass. Also this week, cable news and business channel CNBC ranked Georgia in the top ten and second in the Southeast in its annual rankings of “America’s Top States for Business.”

According to a recent Forbes article entitled “America's Best Places For Alternative Energy,” the abundance of biomass in Georgia’s Bioenergy Corridor ranks third in the nation as a potential source of renewable energy. The article referenced the amount of privately owned forest in Georgia, more than any other state in the country, as a reason for the state’s ranking. Forbes also cited that “roughly 50 million tons of the state's own timber end up in the state's wood-products manufacturing plants every year” and the industry “returns nearly half of it in the form of primary mill wood debris.” Only Iowa and North Dakota ranked higher. Rounding out the top five were Mississippi and North Carolina.

“Georgia’s wealth of natural resources combined with our research institutions and a strong business climate create an ideal environment for the development of renewable energy,” said Governor Perdue. “We appreciate Forbes’ recognition of our ability to develop alternative energy sources.”

Georgia’s Energy Innovation Center (EIC), housed at the Georgia Environmental Facilities Authority (GEFA), draws on the state's vast resources to expand and strengthen Georgia's bioenergy industry. The EIC recruits and promotes industries focused on producing energy from clean and renewable sources. Georgia boasts an abundance of renewable natural resources such as pine trees and agricultural products, along with waste streams from agriculture and industrial processes, available as feedstocks for an expanding renewable energy industry. Companies concentrating on every aspect of energy development will find a streamlined and pro-active business environment in Georgia.

Georgia is at the forefront of the nation’s development of cellulosic ethanol, a non-food feedstock for the production of ethanol from pine and other wood residuals. Range Fuels broke ground on the nation’s first commercial-scale cellulosic ethanol plant in Soperton on November 6, 2007. The facility is expected to be operational in 2009. In addition, the state’s research institutions including the Georgia Institute of Technology, University of Georgia and the Herty Advanced Materials Development Center are providing R&D in support of cellulosic ethanol and other renewable energy alternatives.

The Bioenergy Corridor represents an extensive network of bioenergy-related businesses and organizations located throughout the state: Atlanta and Rome to the north; Columbus to the west; Albany, Valdosta and Brunswick to the south; and Athens, Augusta and Savannah to the east. The Bioenergy Corridor’s northern region encompasses research and development, academic, and public and private partnerships. Manufacturing facilities are primarily situated in the mid-to-south region, where a majority of commercial pine forests and current commercial forestry infrastructure are located.

This week, the financial network CNBC ranked Georgia in the top 10 in “America’s Top States for Business.” Coming in at number 8, the Peach State received high marks for its strong workforce, excellent transportation network and affordable cost of living. Georgia received the second highest ranking in the Southeast, behind only North Carolina, which came in at number 6.

Each year, CNBC compiles rankings for all 50 states in 10 categories such as workforce, transportation, cost of doing business and others. The combined scores in those 10 categories are then used to generate an overall ranking.

“Georgia’s high ranking in America’s Top States for Business shows that CNBC appreciates our state’s selling points,” said Ken Stewart, commissioner of the Georgia Department of Economic Development. “We market Georgia every day by showcasing our well-trained workforce, unmatched transportation network and a cost of living that is welcoming to families.”

The state’s access to capital, business friendliness, cost of doing business, technology and innovation and overall economy also placed Georgia above average. According to its Web site, CNBC used publicly available data to score all 50 states on 40 different measures of competitiveness, which are separated into ten broad categories. For more information, visit the Web site at http://www.cnbc.com/id/25447603.

Servigistics Wins Stevie(R) Award in 6th Annual American Business Awards(SM)

PRNewswire/ -- Servigistics, the leading strategic service management solution provider, was named a winner in the 2008 American Business Awards for Best Executive. Servigistics CTO and Founder, Mike Landry, earned this recognition in the category of best MIS and IT Executive because of his vision, leadership and expertise in strategic service management.

The awards were presented during ceremonies at the Marriott Marquis Hotel in New York City. The ceremonies were hosted by Cheryl Casone of Fox Business Network and broadcast nationwide on radio by the Business TalkRadio Network. Stevie Awards were presented in over 40 categories including Best Overall Company, Best Executive, and Best Corporate Social Responsibility Program. More than 2,600 entries from companies of all sizes and in virtually every industry were submitted for consideration.

Members of the Awards' Board of Distinguished Judges & Advisors and their staffs selected Stevie winners from among the Finalists. Finalists were chosen by business professionals nationwide during preliminary judging in April and May.

"Such an honor would not be possible without the support, vision and leadership of our clients, who are leading the drive to invest in post-sales service as a profit lever and competitive differentiator," said Mike Landry, Founder and Chief Technology Officer, Servigistics. "In addition, congratulations go to my colleagues at Servigistics, who strive to consistently deliver above and beyond our client expectations."

Cbeyond Ranks Seventh among Georgia’s Top Public Companies

BUSINESS WIRE--Cbeyond^®, Inc. (NASDAQ: CBEY), a leading IP-based managed services provider, ranked seventh on the Atlanta Journal-Constitution’s list of Georgia’s top 100 public companies. Cbeyond improved by nine positions from the 2007 list, which ranked the company sixteenth.

PricewaterhouseCoopers LLP ranked the list of the top 100 public companies based on five weighted variables: annual revenue, year-over-year revenue change, annual change in profit margin in fiscal 2007, return on equity and total return on investment for calendar 2007. The ranking is determined by totaling the five variable rankings for each company and dividing by five.

Featuring a growing portfolio of more than 30 productivity-enhancing applications, Cbeyond is the last communications company a small business will ever need. From landline phone and email access, to BlackBerry® and Hosted Microsoft Exchange, Cbeyond tailors an appropriate solution for its small business customers.

The company also offers a SIP trunking solution, which enables direct IP peering with SIP-enabled IP PBX phone systems. Called BeyondVoice® with SIPconnect, this service eliminates the need for a VoIP gateway on the premise, improves voice quality and creates a strong foundation for personalized applications and rich media services. Cbeyond currently interoperates with more than 20 IP PBX phone systems.

Cbeyond saw significant growth in 2007 propelling it into the top 10 of the Georgia 100. In 2007 the company opened offices in San Diego, Detroit and San Francisco. The company is poised to continue its growth in 2008 with new offices slated to open in Miami, Minneapolis and a third, yet-to-be-announced market. Cbeyond currently serves more than 36,000 small businesses and offers its services in 11 cities throughout the United States.

Focused on measured growth, Cbeyond’s strategy is to leverage its sale-driven distribution model to deeply penetrate the small business community in each city it serves. The company also works closely with each small business customer to design a communications solution to meet their needs.

“Cbeyond experienced great success in 2007 due to our consistent, predictable business model,” said Jim Geiger, chairman and CEO of Cbeyond. “The continued growth and profitability of the company highlights the need small businesses have for big business communication tools that are affordable, reliable, and easy-to-use.”

For more information about Cbeyond and its portfolio of small business communication services, visit www.cbeyond.net.