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Atlanta Economic Overview
2nd Quarter 2007 Atlanta is the economic capital of the Southeastern US, strategically located to service the entire region. Ranking fourth in the nation, the city’s biggest strengths are its logistics and transportation network, including an excellent interstate highway system and a world class airport. Atlanta’s broad-based economy, business-friendly environment and high quality of life are among its other strengths. Metro Atlanta consists of 28 counties with a population of over 5 million and an employment base of nearly 2.4 million. Since 2000, Atlanta has added an average of more than 146,000 residents and 31,400 jobs annually. These factors have driven dozens of major corporate relocations to Atlanta over the past decade. Most recently, Newell Rubbermaid, Mueller Water Products, Inc. and Solo Cup have relocated corporate headquarters to Atlanta. In addition, Kia Motor Corporation has broken ground at their auto manufacturing facility in West Point and will be open for business in a few years. Economic Base Atlanta boasts a diversified economy, based on services and trade, but not particularly dominated by any single industry group. Sectors comprising more than 10% of local employment include: retail trade, professional and business services, educational and health services, leisure & hospitality and government. Atlanta is the state capital of Georgia and represents the largest concentration of Federal jobs outside of Washington DC, including the Centers for Disease Control and Prevention. Nearly 83% of the Fortune 1,000 companies have local operations in Atlanta. Atlanta ranks third (behind New York and Houston) as a Fortune 500 headquarters city. Leading public companies, based on revenue, are Home Depot, United Parcel Service, Coca-Cola, Bellsouth, and Coca-Cola Enterprises. The top five publicly traded firms, each employing more than 10,000, include:
Despite the housing woes and the subprime meltdown nationally, Atlanta’s economy remains steady heading into the second half of 2007. Area economic pundits have predicted that job growth for the metro area will again be lackluster, with a little more than 40,000 new jobs created by the end of 2007. So far, though, the job market remains steady. As of the latest unemployment report, Atlanta’s rate remained unchanged at a healthy 4% with 9,800 new jobs added to the market from April to May of 2007. Population and Demographics Atlanta has a population of approximately 5.03 million, which has increased by 18.16% since 2000, nearly three times the national average. According to Claritas, an additional 536,000 residents will call Atlanta home during the next five years, representing a population increase of more than 107,000 annually. The fastest growing counties in the MSA since 2000 are Forsyth, Henry, Newton and Paulding. Fulton County is the primary county in the MSA with a population of more than 818,000. The City of Atlanta, with a population base of 425,000, has reversed its trend of population declines with the addition of 18,600 residents since 2000. Other notable demographic characteristics and trends are:
Future Outlook Several of Atlanta’s major corporations experienced serious financial trouble in 2005 and announced drastic restructuring plans. Delta appears to be nearing the end of their restructuring plans and is preparing to emerge from bankruptcy in April 2007. This means the transportation and, warehousing & utilities industries can expect to see growth beginning in 2008. Healthcare is expected to continue its hiring frenzy and should remain immune to the slight economic slowdown predicted for 2007. The Georgia State University Economic Forecasting Center has projected modest employment gains for 2007 of 48,200 jobs locally. They are feeling very optimistic about job growth in 2008 and 2009 with estimates in the 60,000 range each year. Atlanta is a strong, diversified economy that is steadily returning to its pattern of growth. It has taken some time for the economy to recover but the underlying employment composition and demographics that have driven Atlanta’s growth remain in place. Source: Georgia State University’s Economic Forecasting Center, Claritas, GA Department of Labor, & The Metro Atlanta Chamber of Commerce.
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