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