Doing Business in Georgia Georgia Forestry Commission’s Forest Marketing and Utilization’s goal is to sustain the economic viability of forest land ownership in Georgia by: - Attracting new industry to Georgia by marketing Georgia’s abundant forest resource to prospects and existing Georgia industries seeking to expand - Providing marketing & technical support to existing industry - Assisting with new product development - Assisting in establishing new forest values Business Climate Atlanta is the capital of Georgia and is the South’s commercial and economic hub.  Georgia is a right-to-work state with low taxes that have not been raised since 1969 and a balanced budget requirement.  Since 2004, Georgia has maintained its AAA bond rating according to the nation's bond rating agencies - Standard & Poor’s, Moody’s, and Fitch Ratings. Georgia is a growing global business center; 59 countries now have consular offices and/or trade representation in the state, and more than 2,200 internationally owned facilities representing 44 countries are doing business in Georgia. Georgia exports in 2006 accounted for $20.1 billion worth of goods, an increase of 3% from 2004.  Incentives/Taxation Georgia provides a wide variety of statutory and negotiated incentives for eligible projects.  In addition, local development authorities, cities, counties and private-sector groups can offer innovative and creative solutions that can be substantial.  Georgia also offers an array of tax credits and exemptions to new and expanding businesses. For further information please contact the Georgia Department of Economic Development (GDEcD). Financing Georgia offers a variety of state financing programs.  Industrial Revenue Bonds are available, offering below-market financing for construction of manufacturing facilities.  Sixteen Regional Development Centers serve as Certified Development Corporations for business loans. The OneGeorgia Authority, oversees tobacco settlement funds used for development in the state’s most economically challenged areas.  The Department of Community Affairs has additional information about other programs. Business Services As Georgia’s lead sales and marketing arm, the Georgia Department of Economic Development recruits businesses, trade partners, and tourists to Georgia.  Georgia’s Environmnental Protection Division (EPD) one-stop permitting process can handle all requests for permits that are required by state and federal environmental protection legislation.  This coordinated permit procedure provides adequate review of environmental considerations without the need for an Environmental Impact Statement.  This often saves 12 to 24 months for a prospective business.  Economic Benefits of the Forest Industry in Georgia - 2006 Report     top Georgia's forest industry ranks 2nd behind food processing when considering compensation to employees and proprietors. Georgia's forest industry ranks 3rd behind textiles and food processing, when considering number of employees. Forestry activities result in $580 million in taxes and other payments to Georgia's state budget. Georgia has 185 primary manufacturers, including 12 pulp mills, 15 chip mills, 9 engineered-wood products, 140 sawmills/pole mills, and over 1,500 secondary manufacturers. Georgia is the top producer of paper and pulp in the United States. In 2006, exports from Georgia to world markets from the paper products, wood products and forestry & logging sectors accounted for 10% of the total export valuation from Georgia, or $2 billion. The Economic Impact of Forest Products Manufacturing in Georgia Total economic impact (including the multiplier effects to other parts of the economy) by Georgia’s forest industry in 2006: Economic Activity 2006 Changes 2005 to 2006 Output $27.7 billion + 7% Employment 149,347 jobs - 1% Compensation $6.8 billion - 3% The direct economic impact by Georgia’s forest industry in 2006: Economic Activity 2006 Changes 2005 to 2006 Output $17.8 billion  10 % Employment 67,733 jobs < 1% Compensation $3.5 billion  3% Economic Impact by Industry Sector As shown in the chart below, the pulp and paper sector of the forest industry continues to dominate the industry by producing 54% of the industry output.  Although the pulp and paper industry output as a whole seems to be recovering from the recession period earlier in this decade, the employment levels continue to decline.  This may be an indication of individual U.S. companies developing strategies to become more competitive with other international-based companies.  The opportunity for these companies to add new products, such as biofuels, to their production lines may spawn new investments followed by increased overall economic impact in the coming decade. Changes in specific forest industry sectors from 2005 to 2006 are reflected in the following table:   Industry Sector Changes 2005 to 2006 Output Employment Compensation Logging and nurseries  28% 0% 5% Lumber and wood preservation  14% 1% 4% Veneer, plywood, and engineered wood - 2% -2% 4% Manufactured housing and prefab buildings  6% -1% 1% Pulp and paper products  9% -1% 2% Wooden furniture and cabinets  10% 5% 6% Windows and doors  10% 6% -4% Overall  10% 0% 3%   Location – Proximity to Markets     top Georgia’s convenient location offers the perfect gateway to Southeast, U.S. and world markets. Georgia is the 4th fastest growing state in the U.S. and the Southeast is the fastest growing region. With more than 50 million residents, the Southeast is projected to remain the fastest growing U.S. market into the 21st century. Georgia provides immediate access to the region’s largest consumer markets – almost 10% of the consumer population in the Southeast lives in metro Atlanta.  More than 80% of the U.S. population is within a two-hour flight of Atlanta - nearly 100% is within four hours.  By truck, Georgia-based companies are two days or less from 80% of U.S. markets.  As the western most location in the Eastern Time Zone, (G.M.T. +5), Georgia shares common business hours with the majority of the U.S., Europe and Central and South America.  Workforce Georgia’s 4 million plus member workforce is young, productive and growing rapidly.  Each year, 50,000 graduates of technical, four-year and two-year colleges enter the Georgia labor force.  You can recruit from Georgia’s talented workforce online at www.georgiahire.com.  Georgia's nationally recognized workforce training program, Quick Start, is provided free of charge to new and expanding companies.  Recognized by such publications as Expansion Management and Fortune, Quick Start has offered services ranging from company orientation to advance manufacturing technology training to productivity enhancement. Since 1967, more than 3,700 companies and 390,000 Georgia workers have benefitted from this no-cost program.  Infrastructure     top Georgia’s infrastructure is ready to meet the needs of the new century, while ensuring that services are available at competitive costs.  Air Atlanta’s Hartsfield-Jackson International Airport is the world’s busiest passenger airport and allows travelers to reach 80% of the continental U.S. population within two hours.  And with Atlanta’s location in the eastern end of the Sunbelt, the city serves as the South’s gateway to Latin America, Europe and Asia. Rail CSX Transportation and Norfolk Southern Corporation give Georgia the Southeast’s most extensive rail system with 5,000 miles of main- and branch-line track.  Water Georgia has deep-water ports at Savannah and Brunswick.  The Port of Savannah is the largest container port in the southeast and is the fastest growing port in the U.S.  It is also the western-most container port on the Atlantic coast, making it much closer to the heart of the U.S. market than any other eastern seaboard port.  The port at Savannah is the largest foreign commerce port on the South Atlantic coast offering global container service with more than 90 steamship lines serving Georgia. The Georgia Ports Authority maintains offices worldwide for truly global convenience. Highways Georgia has the most extensive highway transportation network in the U.S.  Georgia’s 20,000 miles of state, interstate and federal highways has been recognized as the best maintained in the nation.  From Georgia you’re two truckload days or less from 80% of U.S. markets.  Georgia maintains an advantage to carriers by offering the lowest fuel tax in the U.S. at 7.5¢/Gallon.  Telecommunications Atlanta is a transmission hub for the country’s two largest fiber optic trunk routes, which link most major population centers in North America.  These routes provide fiber optic links to points all over the United States as well as Europe, Japan, Australia and South America. Energy Georgia’s energy industries have competitive rates that are below the national average.  New businesses locating in Georgia with connected loads of at least 900 kW may choose among competing electrical suppliers.  Natural gas provides about 43% of the energy used in Georgia’s industries. Industry Support     top Georgia has an unparalleled combination of wood resources, processing industries, market access and transportation.  In addition, an extensive network of support services enables Georgia to be a world leader in forest products industries.  Partners working together to improve forestry and the forest products industry in Georgia include: Logging Industry – Georgia has an ample and well-educated supply of logging contractors that ensures a constant flow of raw material from forests to mills.  Approximately 1,200 logging contractors operate in Georgia in 2007.  Each contractor has an average of two truck drivers and five employees in the woods.  As of September 2007 1,953 timber harvesters and procurement foresters have earned Master Timber Harvester designation obtained through continuing education. Forestry Contractors - over 160 vendors offer a variety of reforestation and site preparation services. Forest Protection – Georgia Forestry Commission firefighters have the best fire suppression record in the Southeast with the average size fire consuming less than five acres.  Five year averages for the period 2002 - 2006 show that 7,408 wildfires burned 28,692 acres or 3.9 acres per fire. Quick response to wildfires, from 447 forest rangers located at 129 offices across Georgia, ensures that Georgia’s forest resources are well protected. Forest Management – Over 500,000 non-industrial private landowners (NIPL) own 74% of the commercially available forestland in Georgia or 18-million-acres.  NIPL are served by 42 Georgia Forestry Commission foresters and 1,221 private consulting foresters. Forest Water Quality – The Georgia Forestry Commission, in cooperation with Georgia Environmental Protection Division (EPD), administers this program that is based upon voluntary Best Management Practices (BMP’s).  BMP’s are the most appropriate or applicable forest practices or activities to attain a silvicultural goal while protecting the chemical, physical, and biological integrity of the state’s waters.  Georgia's 2004 Silvicultural BMP Implementation and Compliance Survey reports an overall implementation rate of 90%; 99% of the acres evaluated were in compliance with BMP’s. The Georgia Forestry Association - One of the oldest conservation and advocacy organizations in the nation. University of Georgia Warnell School of Forestry and Natural Resources – The oldest school of forest resources in the South. Georgia Tech Advanced Wood Products Lab – The laboratory’s mission is to move the production of finished products in the United States using wood and wood composite materials into an internationally competitive position. Herty Advanced Materials Development Center – The oldest independent contractual research and development organization in the South.  Their mission is to conduct a broad range of lab tests, pilot scale investigations, and limited production of all fibrous materials.