Tennessee Ranked No. 1 in Automotive Manufacturing Strength for Second Year in a Row

Business Facilities 2011 State Rankings Released; State Also Honored for Transportation Infrastructure, Economic Growth Potential, Business Climate

NASHVILLE – Business Facilities, a national economic development publication, has issued its annual 2011 State Rankings Report, and Tennessee has been named the No. 1 state in the nation for Automotive Manufacturing Strength for a second consecutive year. Tennessee also earned high honors for Transportation Infrastructure, Economic Growth Potential and Business Climate.

“I’m pleased the editors of Business Facilities and other corporate decision-makers recognize Tennessee’s strengths in the automotive industry,” Tennessee Gov. Bill Haslam said. “We are always working to improve our already attractive business climate and improve our workforce, and it is no accident that so many global automotive manufacturers and suppliers call Tennessee home.”

“As part of Gov. Haslam’s Jobs4TN economic development plan, Tennessee has centered its recruitment efforts on six key clusters in which the state has a clear competitive advantage, with the automotive industry being one of them,” Tennessee Department of Economic and Community Development Commissioner Bill Hagerty said. “The Business Facilities No. 1 ranking in Automotive Manufacturing Strength further confirms our focus is where it should be to grow Tennessee’s economy.”

Last month Volkswagen Group of America, Chattanooga Operations announced the hiring of its 2,000th employee at the newly-opened Chattanooga plant. Hiring is expected to continue through early fall at which time there will be about 2,300 employees at the facility. The plant has the capacity to produce up to 150,000 vehicles a year and is currently building the all-new 2012 Passat sedan, specially designed for the North American Market.

"With new VWs rolling off the assembly line at a world-class, energy-efficient manufacturing facility and top-tier suppliers lining up to set up operations in the Chattanooga area, Tennessee has cemented its position as the top automotive powerhouse in the U.S.," Business Facilities Editor-in-Chief Jack Rogers said.

Construction is also progressing on Nissan’s manufacturing facility in Smyrna, Tenn., which will produce lithium-ion batteries to power the Nissan LEAF zero-emission vehicle. The plant will be capable of producing 200,000 advanced-technology batteries annually and is located adjacent to Nissan’s vehicle assembly plant, where the all-electric Nissan LEAF will be produced beginning in late 2012. Combined, Nissan LEAF and battery production will create up to 1,300 manufacturing jobs when the plants are operating at full capacity.

"The Volunteer State is well-positioned to defend its automotive crown for years to come," Rogers added. "A skilled workforce, low-cost utilities and a burgeoning supplier network have laid the foundation for exponential growth in this key manufacturing sector."

In addition to the Volkswagen and Nissan auto assembly plants, more than 860 automotive suppliers, original equipment manufacturers and ancillary manufacturers are located in Tennessee.

Other honors Tennessee received in the 2011 Rankings Report include: fifth for Best Transportation Infrastructure, seventh for Economic Growth Potential and eighth for Best Business Climate.

"Tennessee has world-class infrastructure from its interstates to its airports, making our state a strategic choice for business with its central location and access to markets throughout the U.S. and around the world," Haslam said.

"With a goal to make Tennessee the No. 1 state in the Southeast for high quality jobs, we are working hard to help our existing industries expand, while also attracting new companies to the state," said Hagerty. "I am pleased that Business Facilities recognizes the strong business climate and economic growth potential we are cultivating in Tennessee."

The accolades don’t stop at the state level, however, with Tennessee cities topping several economic development related lists. Memphis MSA ranked number one in Top Logistics/Distribution/Shipping Hubs and number seven for Best Cost of Living. Nashville ranked number five for Best Cost of Living, and Knoxville ranked number four for High Tech Hubs.

For more on Business Facilities 2011 State Rankings Report, visit http://businessfacilities.com/.

About the Tennessee Department of Economic and Community Development
The Tennessee Department of Economic and Community Development’s mission is to develop strategies which help make Tennessee the No. 1 location in the Southeast for high quality jobs. The department seeks to attract new corporate investment in Tennessee and works with Tennessee companies to facilitate expansion and economic growth. To find out more, go to www.tn.gov/ecd.

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Contact: Shannon Sumrall, ECD
Office: (615) 253-4897
E-mail: shannon.sumrall@tn.gov