Companies are coming, and more are on the way.

The 2010 calendar year brought major business gains and growth for the 22-county region of the Southeast Industrial Development Association, or SEIDA, and 2011 looks just as optimistic. The headliner continues to be Volkswagen, as it constructs a $1 billion assembly plant in Chattanooga that will ultimately bring 2,000 jobs to the region. The German automaker is scheduled to begin production of its new mid-size sedan, the Passat, by mid-year.

“The ripple effect of VW’s assembly facility will likely create an additional 9,000 indirect jobs along with more than $500 million in new personal income for the region,” says Matt Kisber, former commissioner of the Tennessee Department of Economic and Community Development under the Bredesen administration.

No. 1 in Strength
Business Facilities magazine reports that the Volkswagen investment has helped propel Tennessee to the No. 1 ranking for U.S. Automotive Manufacturing Strength, the No. 2 ranking for Economic Growth Potential, and the No. 5 ranking for Best Business Climate. In addition, Enterprise South Industrial Park – a $21 million supplier park adjacent to Volkswagen's assembly plant – is expected to bring 9,500 more jobs to the area and is already attracting tenants.

“Automotive plants are the Holy Grails of economic development, and our decades of persistence finally paid off,” says Chattanooga Mayor Ron Littlefield. “We turned away a lot of companies over the years that wanted that parcel of land, but we wanted a top automaker here. We certainly have one in Volkswagen.”

Sunny Days Ahead
Meanwhile, another company with a $1 billion investment will also be doing business in the SEIDA region. German-based Wacker Chemie AG (pronounced VOCKer KEMee) will be constructing a huge manufacturing plant in Bradley County, Tenn. beginning this year, and will ultimately produce polysilicon for solar panels.

“We are in an excellent position to market and showcase the assets of our whole region,” says Kathy Johnson, program director for SEIDA. “We have a fabulous workforce, a lot of available sites for facilities to move into, low-cost reliable power and a great network of regional partners, who have learned how to focus on regional economic development that benefits us all.”

Other major economic development news in the SEIDA region includes:

Many Job Openings
Just before Christmas, the world's largest online retailer, Seattle-based Amazon.com, announced plans to invest $139 million to build two 1-million-square-feet distribution centers in Chattanooga and Bradley County. Expected to be operating by the 2011 holiday season, the fulfillment centers will create up to 1,400 jobs over the next three years and more than 2,000 positions during peak seasons.

Alstom has completed a $300 million expansion of its Chattanooga turbine plant, which positions the company to become a true leader in the resurgence of nuclear power production in America.

Vinyl flooring manufacturer IVC U.S. Inc., has invested $70 million in a new plant in Whitfield County, Ga., creating 115 jobs. And surface-top manufacturer LG Hausys America Inc., has earmarked $50 million to expand its operation in Gordon County, Ga., creating 80 new jobs.

In addition, Whitfield County opened an industrial park off of Interstate 75 near Carbondale, Ga., with hopes of luring manufacturing, automotive, chemicals, data center, plastics and retail industries. Plans to construct an aeronautic industrial park at Western Carolina Regional Airport in Andrews, N.C. are also in the works, while another industrial park is underway near the Blairsville Airport in Union County, Ga.

“New and existing industries find the Southeast a good place to grow and expand,” Johnson says. “This is where community, economic and workforce development is a priority.”