Driving the supply chain

autom automotiv automo
aut DRIVING
THESUPPLY CHAIN
autom
Georgia.org

Engineering the Automotive Industry
The southeastern United States has become the preferred choice of automotive original equipment manufacturers (OEMs) and their suppliers growing from hosting 25 percent of the industry to more than 33 percent in just 10 years. Georgia is at the epicenter of this activity.
Kia Motors
INVESTMENT $2.9 billion CAPACITY 360 000 vehicles per year
"By choosing west Georgia Kia was able to take advantage of proximity to its future suppliers while benefiting from a solid infrastructure." Corinne Hodges Kia Motors Manufacturing Georgia (KMMG)
Taking You Places for 100 Years
Georgia has been an established automotive manufacturing center since 1909 when the first automobile was assembled in the state. Onehundred years later Kia Motors Manufacturing Georgia Inc. further expanded the opportunities for automotive suppliers in Georgia. The lasting presence of these automakers in the state has fostered healthy industry practices and a skilled workforce that produces world-class cars and parts.
2

120 auto manufacturers invested $5.2 billion in Georgia in 6 years
Porsche
FACILITY 26.4-acre headquarters campus 400 employees 1.6-mile test track
"It was on the one hand the brilliant support we got from the state of Georgia and the city of Atlanta but second and I would say equally important that we can stick on our very proud and very experienced workforce we have here in Atlanta." Bernhard Maier Executive Board of Management Porsche Cars North America Inc.
The driving factors for Georgia
4 Proximity to a large network of OEMs and suppliers 6 Comprehensive network of air sea rail and highway infrastructure to
efficiently transport supplies in and product out
7 Established manufacturing workforce and training available to advance
skills to meet companies specific needs
10 Business-friendly climate with competitive corporate tax structure and
incentives
3

page

southeastern oems

Scale

Legend
Original Equipment Manufacturer (OEM) Interstate Highways Commercial Airports Ports

0

125 Miles

250 Miles

0

125 KM

250 KM

500 KM

75
Peterbuilt (Paccar) Nissan
GM TENNESSEE
VW
85

95 64
VIRGINIA

81
BMW

Volvo

95 85

NORTH CAROLINA
Thomas Built (Daimler)
77
Freightliner (Daimler)
40
Freightliner (Daimler)

95
SOUTH CAROLINA

59 65
Honda
Mercedes-Benz

Atlanta
20
GEORGIA
Kia (Hyundai)

Chrysler

ALABAMA
85
Hyundai
65

Blue Bird

16

75

95

Atlantic Ocean

10

Connect to Georgia s Supplier Network
250 Georgia automotive part manufacturers quickly and easily access OEMs throughout the Southeast. This includes 40 on-site and local Kia suppliers who invested $1.25 billion and employ 7 000.

Georgia s Automotive Industry by the Numbers

Automotive Leaders in Georgia

5%
$3.2 billion exported
114%
$781 million in gross state product
111%

BBS Blue Bird General Motors
Hella Honda
Kia Lotus NAMFG Panoz Pirelli Tire Porsche Toyo Toyota

Over 250 facilities employing almost
18 000
1 year growth rates as of printing

orange North American Headquarters green Headquarters

Alternative Transportation and Equipment Manufacturers in Georgia
AGCO Corp. Caterpillar Club Car E-Z Go (Textron Inc.) JCB Kobelco Construction Machinery America Kubota Manufacturing of America Kubota Industrial Equipment Corporation Yamaha Motor Manufacturing

Fueling the Logistics Ecosystem

Georgia is a premier location for logistical support and infrastructure. According to Area Development magazine site selection consultants named Georgia 2nd in the U.S. for infrastructure and access to global markets.

By Air
Hartsfield-Jackson Atlanta International Airport
World s busiest and most efficient passenger airport
Connects passengers to more than 75 international destinations in 50 countries
10th largest air cargo hub in North America
14 cargo-only carriers and 1.5 million sq. ft. of cargo handling space
"Air Cargo Airport of the Year" (Air Cargo Week 2012)

Seattle
4 HOURS
San Francisco

Minneapolis

3 HOURS

Chicago

Denver

Cincinnati St. Louis

2 HOURS 1 HOUR

Dallas

Atlanta

Boston New York Washington DC

Tampa

Air Transit Times from Georgia

By Sea
Port of Savannah
Fourth-largest and fastest-growing container port in the U.S.
Dedicated on-terminal rail intermodal facilities for two Class 1 railroads
Savannah s Garden City Terminal is the largest single container terminal in North America
Port of Brunswick
Handles cargo for 21 domestic and foreign auto manufacturers
The nation s busiest seaport for automobile imports
By Rail
Most extensive rail system in the Southeast (4 700 miles)
Largest intermodal hub in the Southeast
Served by two Class 1 railroads and 24 short-line companies

( Seale

San Francisco (

5 - 7 DAYS

Denver (

Minneapolis (

Chicago (

St. Louis

3 -4 DAYS

(

Cincinna (
1 - 2 DAYS

Boston ( ( New York ( Washington DC

( Dallas

( Atlanta

Tampa (

rail Transit Times from Georgia

( Seale

5 DAYS
San Francisco (

4 DAYS

Denver (
3 DAYS

Minneapolis (

Chicago (

St. Louis (

Cincinna (

2 DAYS
( Dallas

1 DAY
( Atlanta

Boston ( ( New York ( Washington DC

Tampa (

By Interstate
80 percent of the U.S. population reachable within two truck days
Two major transcontinental interstate highways (I-95 and I-75)
Four additional interstates (I-20 I-85 I-16 I-59) connecting Georgia to 15 states
6

truck Transit Times from Georgia
More than 20% of the East Coast s automotive-related exports leave through Georgia s ports ($9.5 billion each year).

Tapping Top Talent

Workforce training hiring and education are top priorities in Georgia s efforts to help businesses grow. Few factors are more crucial to a company s success than recruiting training and keeping talent. But the savings that Georgia generates for businesses are also significant.

6.3 million working-age population (ages 18-64)
260 000 skilled production workers
Competitive cost of labor
Right-to-work state
Third-lowest manufacturing unionization rate in the U.S.
A reliable workforce with low turnover rates

Virginia Georgia Pennsylvania Illinois North Carolina Alabama Tennessee South Carolina Indiana Kentucky Ohio Michigan

Automotive Annual Wages
$41 805 $43 907 $44 860 $50 422 $51 228 $51 934 $51 960 $52 806 $52 914 $53 984 $55 451 $67 894

Source U.S. Bureau of Labor Statistics 2012 Q3

Unionization membership in manufacturing

20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0%

17.9%

5.6% 6.0%

9.1% 7.6%

11% 9.5% 10.5%

14% 14.8%

1.9% 2.9%

MI

KY

IN

LA

PA

AL

VA

TX

TN

MS

GA

SC

Source Unionstats.com 2012

workforce turnover rate in transportation equipment manufacturing

9%

8.5%

8.1%

8%

6.9% 7%

6%

5.6% 6.0% 4.7% 4.8% 5.2% 5.4%

5%

4.1% 4.2% 4.4%

4%

3%

2%

1%

0%

LA

IN

SC

KY

MS

AL

PA

TX

GA

TN

MI

VA

Source U.S. Census Bureau Quarterly Workforce Indicators 2012 Q1

Our pride in this facility is exceeded only by the pride we have in our committed and highly trained team members who have contributed so much to our accomplishments."
Byung Mo Ahn Group President and CEO
Kia Motors America and Kia Motors Manufacturing Georgia (KMMG) 7

1GeorgiaTech hastheTOP Graduate Programs inthe Southeast

Quick Start Training
Ranked No. 1 in the U.S. for workforce training by Area Development Magazine Georgia Quick Start is the premier partner for developing and delivering a strategic workforce. Quick Start provides free comprehensive workforce solutions for new and expanding automotive companies.
Quick Start s training for Kia has been so effective that the company s chairman has deemed it the "global benchmark" for its workforce training worldwide. Kia and Quick Start provide job-specific training in robotics welding and electronics labs. Since hiring began in 2008 tens of thousands of job candidates have gone through the pre-employment process and virtually all of Kia s 3 000 current employees in Georgia have received Quick Start training.
Higher Education and Research
Georgia s statewide network of two-year and fouryear colleges and universities provides workforce development education and research and development to support the automotive industry.
Georgia s 24 technical colleges with 30 satellite campuses offer a broad range of training in automated manufacturing technology robotics technology and electrical control systems and include the targeted fast-tracked certified manufacturing specialist program.

Top-ranked university programs and research in materials science electronics mobile technologies digital communications sensors telemetry aerodynamics and industrial mechanical and systems engineering and testing.

Georgia Institute of Technology
Georgia Southern University
Mercer University Southern Polytechnic
State University University of Georgia

8

GM Innovation Center
Investment $26 million and 1 000 jobs
"As General Motors looks to Georgia for the type of talent and the location of employees of the future we see this as one of the top states within the country. We ve had a long history here in Georgia of employment and this history is going to continue as we see Georgia - the university structure here - the employees - the people that live here as a huge benefit to General Motors."
Michael Bly GM Vice President Europe Powertrain

Manufacturing & Engineering EducatioN

3 500
3 500 certificates
diplomas and two-
year degrees

1 200
four-year
degrees

875
graduate degrees
(2012 -2013)

Aerospace (includes aerodynamics) Engineering

Civil Engineering

Computer Engineering

Electrical Engineering

Industrial & Systems Engineering 1 in the U.S.

Materials Science Engineering

Mechanical Engineering

Source U.S. News and World Report

Centers of Innovation
The Georgia Center of Innovation (COI) for Manufacturing (located in the Georgia Tech Manufacturing Institute) builds multi-disciplinary teams that bring together industry government and higher education to help Georgia s manufacturers solve problems and seize opportunities.
Access to university R&D Direct collaboration with key state contacts and
industry leaders Product commercialization assistance Access to emerging technologies Industry specific expertise Connection to potential investor networks for
qualifying companies Matching grants for qualified projects Process improvement for bottom line
The COI for Manufacturing provides manufacturers with an R&D-friendly environment for prototyping and testing ideas products and processes. This team helps clients speed the commercialization of innovation by connecting them with resources to bring their concept to market. The end result is a shorter route to commercialization and growth of jobs and investment in Georgia.
Learn more at GeorgiaInnovation.org

Quick Start[ed] auto companies in georgia
Kia Honda Precision Parts of Georgia (HPPG) Pirelli Tire North America Toyo Tire and Rubber Company Nisshinbo ZF Industries Learn more at GeorgiaQuickStart.org
9

Business-Friendly Climate

Georgia has a business-friendly cost-competitive climate for operating a business
Six percent corporate income tax rate Single factor gross receipts (or sales) apportionment factor for corporate income tax Job tax credits are valued at $1 250 - $4 000 per job and may apply to payroll withholding tax
in some cases Sales tax exemption for purchases of tangible property integral to the manufacturing process Sales tax exemption on energy used in the manufacturing process Competitive utility rates Local property tax relief possible for qualified land building and equipment

corporate income tax rates apportionment

Ohio South Carolina Georgia Kentucky Michigan Virginia Alabama Tennessee North Carolina Indiana Illinois Pennsylvania

Corporate Income Tax Rates 2013

Corporate Income Tax Based on

0.00% 5.00% 6.00% 6.00% over $100K 6.00% 6.00% 6.50% 6.50% 6.90% 8.00% 9.50% 9.99%

NA Single-factor sales Single-factor sales Property payroll and double-weighted sales Single-factor sales Property payroll and double-weighted sales OR triple-weighted sales Property payroll and double-weighted sales Property payroll and double-weighted sales Property payroll and double-weighted sales Single-factor sales Single-factor sales Single-factor sales

entry & median wages of automotive production occupations

Occupation
Helpers-Production Workers Team Assemblers Fiberglass Laminators & Fabricators Cutting Punching & Press Setters Operators & Tenders Metal & Plastic Inspectors Testers Sorters Samplers & Weights Multiple Machine Tool Setters Operators & Tenders Metal & Plastic Welders Cutters Solderers & Brazers Electromechanical Equipment Assemblers Electrical & Electronic Equipment Assemblers Machinists

Georgia Entry Wage
$8.31 $9.08 $10.81 $10.66 $10.34 $9.57 $11.62 $11.71 $11.54 $11.78

Georgia Median Wage
$10.08 $12.84 $13.52 $13.91 $14.54 $14.63 $15.85 $15.86 $15.92 $17.54

U.S. Median Wage
$11.84 $14.38 $14.40 $14.94 $17.90 $16.85 $18.46 $15.84 $14.89 $19.65

Source Georgia Department of Labor 2011 U.S. Bureau of Labor Statistics 2012
10

Electric and natural gas prices

8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00

$8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00

MI

PA

IN

VA

TN

NC

IL

OH

SC

AL

GA

KY

Electricity Cents per kWh Natural Gas Dollars per Thousand CF. Source U.S. Energy Information Administration March 2013 (VA is as of Feb. 2013)

"What s unique about the whole Georgia environment workforce and infrastructure is the collaboration has been tremendous. It is very seamless between dealing with the State vs dealing with the City vs dealing with the University setting. From our standpoint it made it a lot easier and that collaboration is really the key. You can go to a lot of states but the effort to get it done here is much less than a lot of other places."
Tom Gebhardt President
Panasonic Automotive Systems Company of America

affordable Real Estate

Georgia s availability of land translates into affordability for industrial projects. And with over 1 500 available buildings there are plenty of options to retrofit an existing facility. The state of Georgia also has available 30 shovel-ready industrial sites certified under the Georgia Ready for Accelerated Development (GRAD) Sites Program.

industrial lease rates ($/sq. ft.)

$5.00

$4.50

$4.43

$4.00

$3.78 $3.79 $3.89 $4.13

$3.50

$3.41 $3.50 $3.63 $3.63

$3.00 $2.75 $2.86 $3.04 $3.06 $3.14

$2.50

$2.00

$1.50

$1.00

MI/Detroit

KY/Lexington

SC/Columbia

TN/Knoxville

GA/Savannah

IL/Peoria

NC/Fayetteville

IN/Ft. Wayne

VA/Roanoke

GA/Columbus

OH/Toledo

AL/Montgomery

PA/Erie

GA/Augusta

Source Costar National Industrial Report 2013 Q2
11

Georgia s automotive Suppliers
TN SC
AL
FL
Georgia Department of Economic Development 75 Fifth Street NW Suite 1200 Atlanta Georgia 30308 - USA Georgia.org 1.404.962.4000

Georgia s Largest Automotive Suppliers - Over 200 Employees

Autos & Light Duty Vehicles
Blue Bird Corp Kia Motors Manufacturing Georgia Inc.

Fort Valley West Point

Heavy Duty Trucks Coachworks Holdings Inc

Fort Valley

Body & Trailers Carry-On Trailer Inc. Cottrell Inc. Great Dane Limited Partnership Great Dane Trailers Horton Vans Inc. Pace American Supreme Corporation

Lavonia Gainesville Savannah Statesboro Eatonton Fitzgerald Griffin

Electrical & Electronic Equipment

Kautex Inc.

Lavonia

Prestolite Wire LLC

Tifton

Steering & Suspension
Tenneco Automotive Operating Co.

Hartwell

Brake Systems
Mando America Corporation Nisshinbo Automotive Manufacturing Inc.

Hogansville Covington

Transmission & Power Train Global Powertrain Systems Powertech America Inc. ZF

Newnan West Point Gainesville

Seating & Interior Trim Hyundai Dymos Milsco Manufacturing Co

West Point Thomson

Metal Stamping
Dongwon Autopart Technology Georgia LLC
Guardian Automotive Corporation
Hitachi Automotive Systems America Inc.
Sewon America Inc.
Shiroki North America Inc.
SRG Global Inc. - Covington
Voestalpine Automotive Body Parts Inc.

Hogansville
Covington
Monroe Lagrange Dalton Covington Cartersville

Primary Metals Bekaert Corp Franklin Aluminum Company Westcast Industries Cordele LLC William L Bonnell Company

Rome Franklin Cordele Newnan

1 600 3 100
250
325 400 1 000 400 275 270 275
275 500
350
956 250
300 300 440
350 325
275 300 250 912 385 300 220
210 450 325 350

North American Headquarters

Porsche Cars North America

Atlanta

Fabric Mills Carpet & Rugs Apache Mills Inc. Pretty Products LLC Propex Operating Co LLC

Calhoun LaGrange Ringgold

Chemicals Textile Rubber and Chemical Co Dalton

Plastics & Rubber
Dongnam Tech Hanil E-Hwa Interior Systems Georgia Corp. Honda Precision Parts of Georgia LLC Kumho Tire Thomson Plastics Inc Toyo Tire North America Manufacturing Inc.

Columbus LaGrange
Tallapoosa Macon Thomson White

Nonmetallic Mineral Products

Thermal Ceramics

Augusta

Other Parts Decostar Industries Inc. Daehan Solution Georgia LLC Dinex Emission Inc. F & P Georgia Mfg. Inc. Inalfa SSI Johnson Controls Inc. Leggett & Platt Inc Lund Inc. Magna Powertrain Usa Inc. Mobis Alabama

Carrollton West Point Dublin Rome Acworth West Point Atlanta Lawrenceville Norcross West Point

Fabricated Metal Products American Boa Inc. HL-A Co. Inc. (Honda Lock America) Koyo Bearings USA LLC Koyo Bearings USA LLC YKK AP America Inc

Cumming
Bremen
Dahlonega Sylvania Macon

Machinery
TD Automotive Compressor Georgia LLC

Pendergrass

Electrical Equipment Exide Technologies SAFT America Inc Club Car Inc E-Z-GO Freudenberg - NOK Freudenberg - NOK WIKA Instrument Corporation

Milton Valdosta Evans Augusta LaGrange Cleveland Lawrenceville

272
514 205 320
415
395 225
450 300 375 800
535
600 300 250 500 300 670 300 320 300 600
250 525 250 320 790
300
320 226 1 050 1 100 310 425 490

start the conversation
The Georgia Department of Economic Development s Advanced Manufacturing team helps the world s leading automotive companies and suppliers with everything from site selection to workforce training and logistics. To take advantage of our expertise and connections contact us at 404.962.4822.
About Us
The Georgia Department of Economic Development (GDEcD) plans manages and mobilizes state resources to attract new business investment to Georgia drive the expansion of existing industry and small business locate new markets for Georgia products inspire tourists to visit Georgia and promote the state as a top destination for arts events and film music and digital entertainment projects. Visit Georgia.org.
Georgia Department of Economic Development 75 Fifth Street NW Suite 1200 Atlanta Georgia 30308 - USA Georgia.org 1.404.962.4000