Industrial Directory Reports Georgia Lost Fewer Manufacturing Jobs Over Past Year

/PRNewswire/ -- Industrial employment in Georgia fell 4.2% over the past twelve months according to the 2011 Georgia Manufacturers Register®, an industrial directory published annually by Manufacturers' News, Inc. (MNI) Evanston, IL. MNI reports Georgia lost 21,757 industrial jobs between April 2009 and April 2010, roughly half the number of jobs MNI reported lost over the 2008-2009 survey period. MNI had recorded a loss of 48,904 industrial jobs or nearly 9% from April 2008 to April 2009.

Manufacturers' News reports Georgia is now home to 10,349 manufacturers employing 486,109 workers.

"The recession, combined with weak demand for housing and building materials, continues to contribute to the employment decline," said Tom Dubin, President of Manufacturers' News. "But manufacturing in Georgia is starting to pick up, with companies taking advantage of the state's favorable business climate."

Food products manufacturing remains Georgia's largest industrial sector by employment, accounting for 67,348 of the state's jobs, down 3.1% over the year, following the closures of two Pilgrim's Pride chicken processing plants, among others. Textiles and apparel ranks second with 62,019 industrial jobs, down 9.5%, due partially to closures and layoffs at carpet and flooring company Shaw Industries and carpet maker Mohawk Industries. Industrial machinery and equipment ranks as the state's third largest manufacturing sector with 43,546 of the state's industrial jobs, down 4.6% over the past twelve months.

MNI reports other industrial sectors that lost jobs over the past year included lumber/wood down 10.6%; rubber/plastics down 10.5%; printing/publishing down 7.7%; stone/clay/glass down 6.7%; electronics down 6.6%; furniture/fixtures down 3.9%; fabricated metal down 3.5%; transportation equipment down 3.1%; and primary metals down 2.9%.

Bright spots for the state included the opening of Kia's first North American manufacturing plant in West Point, the opening of a Johnson Controls plant, also in West Point, which will supply the Kia plant, the re-opening of a previously shuttered Pilgrim's Pride plant in Douglas, and the planned expansion of auto supplier ZF Group with the construction of a plant that will produce gear boxes for wind turbines. Other companies expanding or opening in Georgia include De Wafelbakkers, which plans a processing facility in McDonough; pet care products manufacturer Animal Health & Sciences; MAGE Solar; ATM manufacturer NCR Corporation; and Belgian flooring manufacturer IVC Group.

MNI reports industrial jobs declined the most in Southwest Georgia, down 10.2% over the year, with the region currently accounting for 35,730 manufacturing jobs. Industrial jobs declined 7.8% in South Central Georgia, with the region home to 47,992 workers, while Southeast Georgia saw a drop of 4.7%, currently home to 38,377. Northeast Georgia saw a decline of 4.5%, and is currently home to 77,382, while industrial jobs declined 2.7% in Northwest Georgia, with the region accounting for the most industrial employment with 286,628 jobs.

Atlanta remains the state's top city by industrial employment, accounting for 57,007 manufacturing jobs, up 2% over the past twelve months. Dalton saw employment decrease 8.5% and is currently home to 23,276 industrial workers. Marietta accounts for 16,109 industrial jobs, down 2.8%, while Alpharetta saw jobs drop 10.5% and currently accounts for 15,048 industrial jobs. Fifth-ranked Norcross accounts for 14,202, down 1.2% over the year.

Detailed profiles of Georgia's 10,349 manufacturers and 1,873 industrial distributors can be found in the 2011 Georgia Manufacturers Register®, available in print for $141 and on CD-ROM from $230. Each profile provides up to 30 facts, including vital contact information (phone, web, e-mail), 36,694 executives by name and title, product(s) manufactured, annual sales, number of employees, and more. Visitors to mnileads.com may generate custom profiles of manufacturers using thirteen different criteria, including area or zip code, county, SIC, sales volume, number of employees, and more. Information is also available on Facebook and Twitter.

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U.S. agriculture can feed the growing world

It is crystal clear that rising population and growing nutritional demands will require food production to double by 2050. Yet, land available for food production is unlikely to increase, and, in fact, may decrease.

Where the increase in food production will occur depends upon geopolitics, climate or climate changes and environmental considerations.

Europe isn’t likely to adopt new technologies to increase food production. In the United States, agricultural patterns are changing with climate changes. Climate change will likely exacerbate drought conditions in western United States. California’s current drought may become permanent.

The Southeast has a long growing season, abundant sunlight, good soils and reasonable amounts of rainfall and groundwater. Agriculture in the region must grow to meet world food demand.

Keeping pace with population

For years, Malthusian predictions were that mass starvation was inevitable as populations grow. The evidence has been just the opposite. Food production has kept up with population and improved nutrition of less-developed societies. In fact, there is a worldwide food surplus. But there are still starving populations. Most often the situation isn’t lack of food, but an inability to move it to where it’s needed, often due to local political instability.

There is every reason to believe that rising yields and improved nutrition in agriculture will continue for many years. Most yield increases have come from new technologies from the U.S. system of agricultural research and education.

The partnership of land-grant universities, the federal government through the U.S. Department of Agriculture and private industry has allowed American farmers to maintain the technological advantage for a century. As someone who works in the area, I’m certain this system will continue to produce the discoveries that have driven this success. Yet, as other countries adopt the technologies we develop then modify them for low-cost production, we are under constant stress to push farther ahead of the curve. This issue is particularly important for labor-intensive crops.

In Georgia, farm production continues to increase and remain adaptable. Strong evidence is shown in changes from 2007 to 2008. 2007 was a terrible year for Georgia farmers. One of the worst droughts on record played havoc on nearly every aspect of agriculture. Some commodities like the green and landscape industries were decimated when watering bans assured new plants wouldn’t survive. But, despite the drought and economic downturn, 2008 was better, in terms of farm-gate value, than 2007.

This is a testament to the tenacity and creativity of farmers who can still make money in the face of so many problems. For 2008, the total value of farming and processing in Georgia was $55 billion. The industry generated 356,000 jobs for the state, a source of jobs that has remained stable. This confirms what we have known for many years: agriculture, while not immune from economic downturns, is less impacted than most sectors of our economy.

Misperceptions

There is a general perception that we have fewer farms than in the past and that farms are consolidating and getting larger. The opposite is true. We have more farms than we did 10 years ago, and farms are smaller than a decade ago. This trend is likely attributable to growing demand for locally produced food. Americans have a renewed desire to know where their food comes from.

Fortunately, our political leaders understand food production is an issue of national security. We can’t always count on other countries for food. No one wants our food production shipped overseas. It’s bad to be dependent on imported fuel. It would be disastrous to depend on other nations for food. We have only an 11-day food supply in the U.S. food chain. If that chain is broken, critical problems arise immediately. We never want to be in a position where food can be used as a political weapon against us.

Unlike other industries that can revive after prolonged inactivity, agriculture is different. It may be impossible to ever bring this knowledge back once lost. It’s not just training workers in the science and practices of agriculture. Agricultural knowledge is location-specific, learned over generations and part of the ingrained heritage of a farming community.

Water planning needs

Water is an overarching factor affecting the future of agriculture in the U.S. The western U.S. has good water policies. The Southeast, however, always assumed that water supplies were unlimited. Unprecedented drought over the past two years demonstrated water isn’t unlimited.
States need planning, development and deployment of infrastructure, policies and technologies to meet future water demands in agricultural and non-agricultural use. This is critical during drought. There’s no reason to dump millions of cubic meters of water into the Gulf of Mexico at the expense of agriculture. Water shortages in agriculture can irreversibly harm agriculture.

The U.S. needs to aggressively promote our agricultural products around the world. Foreign sales of agricultural products remain one of the bright spots for U.S. trade. Future trade agreements shouldn’t be made that hurt U.S. agriculture. In 2007, agriculture was one of the areas that alleviated our trade deficit. That year, we imported $79 billion versus $116 billion in exports. Don’t kill the golden goose.

A seldom considered issue -- but one that will have a significant impact on U.S. agriculture’s future -- is supporting economic development in poor countries. Future demand for U.S. agricultural products will come from rising incomes and consumer demand in these countries. We can help the world’s poor and U.S. agriculture at the same time.

Food and fuel

U.S. agriculture can not only feed the world, it can provide energy. The Southeast has been labeled the Saudi Arabia of bioenergy. Energy production from grains, especially corn, is a short-term solution. Cellulosic ethanol is the long-term hope for energy production from plants, especially pine trees, something Georgia has plenty of. However, technological breakthroughs must be made before this happens. Whether they come next year or 10 years from now remains to be seen.

Farmers are good stewards of the land and natural resources. Agriculture is a strong, stable segment of the nation’s economy. Given sound policy, strong support, solid investment in research and education, and stepped-up focus on food safety, security, science and trade, U.S. agriculture is poised to meet the demand to feed and nourish the growing world population.

By J. Scott Angle
University of Georgia
College of Agricultural & Environmental Sciences

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What's Ahead for the Global Auto Industry?

Over the course of just a few months, the profile of the U.S. automobile industry has changed in profound ways as GM and Chrysler, two of the Big Three American carmakers, have filed for bankruptcy. The most immediate, visible effects are likely to involve direct and indirect job losses as manufacturing plants are shut down and car-parts suppliers and other vendors go out of business.

Under a “best case” scenario--a relatively smooth and easy bankruptcy and emergence for the two industrial titans--the U.S. auto industry is likely to lose 60,000 jobs by the end of this year, growing to about 179,000 in 2010, according to a Center for Automotive Research study. The bankruptcies and their ripple effects also will shrink the U.S. economy by $3.4 billion in 2009, and by another $9.9 billion in 2010, according to the CAR study.

But the industry also will undergo other significant strategic and tactical changes, says Jagdish Sheth, chaired professor of marketing at Emory University’s Goizueta Business School and auto industry consultant whose works include The Rule of Three: Surviving and Thriving in Competitive Markets and The Self-Destructive Habits of Good Companies...And How to Break Them. In a recent interview with Knowledge@Emory, Sheth discusses the latest developments within the industry and the likely outcomes.

Knowledge@Emory: Your “Rule of Three” observes that in almost every mature industry, the natural competitive forces through shakeouts and mergers end up in three large companies as full line suppliers surrounded by many small niche companies. Until recently, the U.S. auto industry was dominated by GM, Ford Motor and Chrysler. With two of them filing for Chapter 11 bankruptcy, what happens to the Rule of Three?

Sheth: Nothing. The Rule of Three is still valid because the automotive industry, like many others, is no longer a domestic industry, but a global one. We have already seen this in the tire industry. At one time, the U.S. was dominated by Goodyear, Firestone, and B.F. Goodrich. In Europe, the big three were Michelin, Dunlop, and Pirelli. But today’s global tire market is dominated by Bridgestone (Japan), Michelin (Europe) and Goodyear (US). Something similar will happen in the auto market, and we will see three companies from different markets dominating the global auto industry, while others will operate in niche segments.

Knowledge@Emory: Which American companies will likely become global players?

Sheth: First, let us consider what is happening now. Chrysler is not just bankrupt, but is being sold to Fiat. It will get consolidated into a global play. So in the U.S., we are really talking about Ford and GM.

Knowledge@Emory: Which of these two American automakers is likely to dominate the global stage?

Sheth: Ford may be one of them, but only if it makes some strategic international mergers or acquisitions. Ford needs more of a global reach, and may have to merge with a European company; although now that the Nissan-Renault alliance is under strain, there might be a merger of Renault or Peugot with Ford.

If Ford cannot follow through with a significant merger or acquisition, then I think a European carmaker, perhaps Volkswagen, is likely to emerge as a global player; but only after it completes additional mergers such as the one with the owner of the Audi brand [in the 1960s].

Knowledge@Emory: Which carmaker will be the third major player?

Sheth: As things stand, Toyota will be the best candidate. It is already the dominant brand in Japan, which is a big market, and it is active in other Asian markets, such as China and India. Toyota is also entrenched in the United States and in Europe.

Knowledge@Emory: With two of the Big Three U.S. automakers effectively sidelined, will there be any competitive pressure on foreign automakers to maintain or expand their U.S. manufacturing operations?

Sheth: Importing a fully built vehicle is usually not very cost efficient. It means that millions of dollars sit idle as inventory is shipped to a destination, and then further delayed in warehousing and distribution. Instead, as car companies become increasingly globalized, they will find it more efficient to source components globally, while setting up localized assembly facilities. This is similar to the industrial model that PC makers already utilize. But to make this global model work, automakers must improve their supply chain management capabilities. Right now there are still too many delays and other inefficiencies.

Knowledge@Emory: Let’s go back to GM. If it emerges from bankruptcy as a much smaller company, does it still have any competitive advantage?

Sheth: Yes, but not as a carmaker. Instead, GM’s key assets are its capabilities. One of them is OnStar. Right now OnStar is known primarily for its roadside assistance communications, but it can be a key player as automobiles evolve through vehicle telematics, or the integration of sending, receiving and storing multimedia information (voice, data, video) through Internet connectivity. Eventually, vehicles will trade information with each other to reduce traffic accidents and congestion, and will serve as communication centers linking individuals to everything from their home security system to their kitchen appliances.

Knowledge@Emory: These are all innovative ideas, but the U.S. government effectively owns GM right now. Do you think the company can be nimble and responsive when it’s owned by politicians?

Sheth: First, I do not think the federal government wants to be involved in day-to-day management. Instead, I believe the government will act as an institutional investor, setting financial goals and governance targets that will encourage the company to get itself back on track. There is some evidence to suggest that is what happened in the banking bailout. The government initially provided huge sums of money to banks when it loaned money at high interest rates through the Troubled Asset Relief Program (TARP). But the governance requirements and interest rates were so onerous—intentionally so—that banks were incentivized to quickly take steps on their own to raise capital and pay back the TARP funds. Similarly, I think the federal government will quickly move to sell off its stake in GM, or orchestrate a merger or acquisition with a foreign or a private equity company.

Knowledge@Emory: What will increasing globalization mean to the dealership model?

Sheth: I have said before that there are too many dealers and that the traditional model—where state laws often protect dealers’ franchises—is not tenable. But this excess is now being rationalized by GM and Chrysler, which are using their respective bankruptcies to circumvent the state franchise protection laws.

I anticipate more superdealers to emerge, similar to American Nalley of Brunswick and Hennessey Auto Cos. in Georgia [and Reedman-Toll in Pennsylvania]. I also expect we’ll see more regional and national dealers like CarMax and AutoNation.

The automobile industry is changing significantly, and while the developments may cause some initial dislocation, the changes are necessary and will result in greater efficiencies in the long term.

From Knowledge@Emory

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Healthy, Marketable Chicken Feet

Dermatitis in humans can make skin itch and burn. When it hits chickens, it drastically reduces farmers’ profits and cuts the supply of an Asian delicacy – chicken feet. It also leads to an estimated loss of about $100 million for the Georgia poultry industry each year.

Chicken feet, or paws, are the third most demanded part of the chicken, coming in behind the breast and wings, said Eric Shepherd, a poultry science graduate student in the University of Georgia College of Agricultural and Environmental Sciences. Georgia produces roughly 20 percent of the paws exported from the U.S. each year.

Too much moisture

Footpad dermatitis, a burn-like condition on chicken feet, is caused by excess moisture in chicken litter, Shepherd said. Litter, which is the wood shavings chickens walk on, contains bacteria naturally and from chicken waste. When there is too much moisture in the litter, however, it allows for greater bacterial growth and increases the bacteria count.

Bacteria breaks down fecal matter and releases ammonia as a by-product, Shepherd said. And the chemical reaction of the ammonia causes the burns.

To test litter moisture, poultry farmers scoop up a fistful of chicken litter and squeeze it. Shepherd is testing more accurate methods of moisture monitoring and researching moisture prevention methods. He hopes his research will improve the quality of the birds’ lives, make poultry farmers’ jobs easier, and cleaner, and help them produce better poultry.

Huge export for poultry industry

“In the last decade or so, chicken paws have become really important to poultry companies in the U.S. because there is such a high demand in Asia,” he said. “If the paws have dermatitis, you can’t sell them.”

Georgia’s is the nation’s leader in poultry production. The Georgia poultry and egg industry generated $18.4 billion for the state’s economy in 2006 alone.

Although poultry producers in Georgia already sell an average of about 130 million pounds of paws each year, Shepherd and Mike Lacy, head of the CAES poultry science department, estimate producers could be selling about 320 million pounds of paws.

With more precise testing techniques, moisture levels can be better monitored. This will help prevent dermatitis from occurring and increase paw exports.

Helping chickens and farmers

Shepherd is also look at ways to keep excess moisture out of litter. Moisture tests and preventative methods will help farmers eliminate dermatitis before it begins.

Along with studies on litter, Shepherd observes and samples chickens with dermatitis and studies the burns.

“I hope to help poultry producers better use the information learned through our research and convince them to spend a little bit of money up front to make their lives easier and make better products,” he said. The poultry industry employs over 100,000 people in Georgia.

By Allie Byrd
University of Georgia

Allie Byrd is a writer with the University of Georgia College of Agricultural and Environmental Sciences.

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Cruise Industry Spending Tops $676 Million, Generates 9,147 Jobs in Georgia in 2007

PRNewswire/ -- The North American cruise industry contributed $676 million in direct spending to the state of Georgia's economy in 2007, a 1.4 percent increase over the previous year according to a recently released study commissioned for Cruise Lines International Association (CLIA).

This spending, in turn, generated 9,147 jobs paying $437 million in wage income. This represents 3.6 percent of the industry's total U.S. direct expenditures, ranking the state seventh in the nation in terms of cruise industry spending. State business sectors most impacted by the industry's direct spending included: business services and government, $327 million; manufacturing, $177 million; and information services, $63 million.

With no direct cruise operations, Georgia is a major source market for cruise passengers. Resident cruise passengers totaled 337,000, 3.7 percent of U.S. resident passengers. The state also supports the cruise industry with a wide range of goods and services.

"The cruise industry continues to make an impressive contribution to the economic well-being of the country and Georgia plays a significant role as one of the leading beneficiaries of industry spending and job creation," said Terry L. Dale, president and CEO of CLIA.

The Contribution of the North American Cruise Industry to the U.S. Economy in 2007 study was conducted by Business Research & Economic Advisors (BREA) in Exton, Pa., and analyzes the economic benefits to the U.S. economy from five principal sources: spending by cruise passengers and crew; shoreside staffing by cruise lines in U.S. cities; expenditures by cruise lines for goods and services; U.S. port services; and vessel maintenance and repair.

Among other key Georgia findings:
-- Tourism-related businesses such as tour operators, airlines, hotels,
restaurants and providers of ground transportation were the
beneficiaries of 20 percent of the cruise industry spending, receiving
$134 million.
-- Another $166 million was spent with businesses in the following
sectors: food processors, computer and electronic equipment
manufacturers, advertising agencies, insurance companies and
management and technical consultants in the non-manufacturing sector.
-- Direct expenditures in Georgia also impacted such industries as
telecommunications, financial services, software publishers and
textile and apparel manufacturers.


Nationwide, the North American cruise industry continued to have a significant and growing impact on the U.S. economy in 2007, positively affecting every state in the country. Cruise line and passenger spending generated a total of $38 billion in gross economic output, a 6.4 percent increase over 2006, and generated 354,700 American jobs paying $15.4 billion in wages and salaries. Direct spending by cruise lines, their employees and passengers totaled $18.7 billion.

The full economic study and summary can be downloaded from CLIA's Web site, www.cruising.org .

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