Executive Summary 1. Introductory Overview 2

Transcription

1 Logistics Industry in Georgia Community and Economic Development Georgia Power November 2006 Georgia Power Company, Inc., 2006

2 Tablle off Conttentts Executive Summary 1 Introductory Overview 2 Georgia Logistics Environment 3 Larger Warehouses 3 Recent Warehouse Locations 3 Retailer Warehouse/Distribution Locations 4 Logistics IT Companies 4 Major Warehouse/Distribution Center and 3PL Locations 5 Transportation System 7 Highway 7 Trucking 7 Rail System 8 Air Service 9 Port Services 11 Workforce 14 Employment and Wage Rates 14 Unionization 16 Employment Regulations 16 Employee Recruitment and Training Opportunities 17 Summary of Georgia s Logistics Incentive Programs 21 Logistics Industry Technical Resources 22 Academic and State-Affiliated Programs 22 Professional Groups and Trade Associations 24 Appendix A Retailer Warehouse Locations in Georgia 26 Appendix B Identified Larger Warehouses 27 Appendix C Top 3PLs with a Presence in Georgia 40

3 Executtiive Summarry Georgia s historic prominence as a transportation crossroads has made it a natural location for growth of the logistics industry. Two Georgia cities, Atlanta and Savannah, are ranked among the top 10 logistics-friendly locations in the Southeast. Atlanta is the fastest growing and fourth largest logistics cluster in the country, and Savannah is the fastest growing container port on the East Coast. The state is home to a number of larger warehouse locations including those for 48 retailers. At least 14 facilities exceed 1 million square feet in size. Supporting logistics operations are 20 of the top 100 logistics IT companies. Third-party logistics providers (3PLs) are very active in Georgia; 50 of the top 100 companies operate in the state. Cross-country highway access using the state s five major, toll-free, wellmaintained interstates allows fast, cost efficient movement of products. Rail connectivity statewide is available from two Class 1 providers. Nine truck/rail intermodal facilities, including the largest one east of the Mississippi, are handling double-digit growth in intermodal freight. Hartsfield-Jackson Atlanta International Airport, the busiest in the world, provides nonstop service to 169 domestic cities and 68 international destinations. In addition to 27 airline passenger carriers, 13 cargo-only carriers operate from Atlanta. An international airport in Savannah and seven additional regional airports (all with 5,500 or longer runways) serve Georgia s second tier cities. The rapidly growing Port of Savannah is the nation s fifth largest container port. Currently 36 shipping line services call weekly, including 25 from Asia/Far East. The Port of Brunswick is the fourth-largest auto port in the eastern United States. The Colonel s Island Terminal handles vehicles for 22 auto and machinery manufacturers. A significant number of employees in logistics occupations are located in the Atlanta, Savannah and Macon metro areas. Georgia wage rates for 19 of 20 logistics occupations fall below the national average. Georgia s declining unionization rate of 3.7 percent now ranks 13 th lowest in the country. Workforce recruitment and training for logistics occupations is expedited by using the state-sponsored, award-winning Georgia Quick Start program. Training locations may be at company facilities or at one of 63 facilities in the Georgia Technical College System. Tuition reimbursement is available using the HOPE scholarship and grant programs. Incentives for locating logistics operations include tax credits and tax exemptions. Georgia s logistic firms stay on the cutting edge of new developments through involvement with the world-renowned Supply Chain & Logistics Institute (SCL) at Georgia Tech and affiliation with numerous locally active logistics professional groups. 1

4 IInttrroducttorry Overrviiew Historically, Georgia has been prominent in the Southeast for regional and national distribution of both industrial and consumer products. The state s superb transportation systems and supportive resources continue the tradition today, positioning it for future growth. Atlanta and Savannah are among the top 10 Southeast logistics-friendly locations. (Expansion Management) Atlanta is the fourth largest and fastest growing U.S. logistics cluster. Recognizing the state s impressive logistics assets, a study by Expansion Management and Logistics Today magazines ranked two Georgia cities among the top 10 Southeast logistics-friendly locations in Atlanta ranked number 6 with its international airport connectivity, three interstates and significant investment in warehouse real estate. Savannah, with its extensive and growing port facilities, two interstates and two rail providers, placed at number 7. Indeed, Atlanta is a significant East Coast center for all types of logistics services. In terms of employment, Atlanta is the fastest growing and fourth largest logistics cluster in the country behind only New York, Los Angeles and Houston. In addition to the extensive and expanding air and rail transportation capabilities, escalating employment in transportation and logistics is resulting from the many new warehouse/distribution center locations, as well as from growing support firms including specialized consulting, training, software and legal services. Growing import and export activity has propelled Savannah to the fastest growing container port on the East Coast. Recently announced locations of large retailer distribution centers, along with the increased capacity resulting from the opening of an eighth container berth, will boost through-put even more. 2

5 Georrgiia Logiisttiics Enviirronmentt Georgia s extensive logistics facilities include an array of large warehouses such as those operated as part of manufacturing or retailing operations, as well as those managed by independent professional services. Other services support improvement in efficient tracking and movement of goods worldwide. Fourteen Georgia warehouses exceed 1 million square feet. Larger Warehouses As a central distribution center for many types of goods destined for Southeast locations, Georgia is home to a variety of significantly-sized warehouse facilities. At least 14 exceed 1 million square feet in size. Company Bldg Sq.Ft. City County Product K-Mart Corp. Distribution Center 2,200,000 Newnan Coweta Retail merchandise Target Import Distribution Center 2,200,000 Savannah Chatham Apparel and household goods Wal-Mart Stores, Inc. S.E. Bulk Storage 2,200,000 Statesboro Bulloch Bulk storage for retail distribution JC Penney Co. 2,000,000 Forest Park Clayton Distribution center Wal-Mart Stores, Inc. Reg. Dist. Ctr. 2,000,000 Douglas Coffee Discount retail Procter & Gamble Distribution/Venture Logistics 1,700,000 Albany Dougherty Paper and cleaning products Target Stores, Inc. 1,700,000 Tifton Tift Retail distribution Target Regional Distribution Center 1,500,000 Midway Liberty Apparel and household goods Home Depot 1,400,000 Pooler Chatham Retail home improvement supplies Solo Cup 1,300,700 Social Circle Walton Plastic and paper tableware Publix Super Market Warehouse 1,200,000 Dacula Gwinnett Retail groceries Wal-Mart Stores, Inc. 1,100,000 LaGrange Troup Retail merchandise American Port Services (Wal-Mart) 1,050,000 Savannah Chatham Apparel and household goods Home Depot 1,008,000 McDonough Henry Building materials Source: Georgia Power Logistics database, 2006 Georgia s Larger Warehouse Facilities Recent Warehouse Locations Recent significant growth in the size of the Southeast market, combined with expanded capabilities for handling greater volume, has made Georgia an even more popular location for warehouse facilities. New locations announced in the period 2004 through early 2006 include Target and PetsMart. 3

6 Selected Recent Warehouse Locations in Georgia Company Bldg Size and City County Product Year Announced ICON Health & 300,000 (2004) Savannah Chatham Fitness equipment Fitness 300,000 (2005) Kuehne + 247,000 (2004) McDonough Henry Tires Nagel/Pirelli Tire North America Staples 398,000 (2004) Lithia Springs Douglas Office products Target Import Distribution Center 2,200,000 (2005) Savannah Chatham Apparel and household goods Target Regional Distribution Center 1,500,000 (2005) Midway Liberty Apparel and household goods Cardinal Health 200,000 (2005) Duluth Gwinnett Healthcare products PetsMart 877,500 (2006) Newnan Coweta Pet food and supplies Service First Logistics 950,000 (2006) Atlanta Fulton Frozen, refrigerated and dry food products Sara Lee/Total Logistics Control 216,000 (2006) Macon Bibb Frozen and refrigerated food Oneida 499,000 (2006) Black Creek Bryan Flatware and dinnerware Source: Georgia Power Logistics database, 2006 More than 48 retailers have warehouse/ distribution centers in Georgia. Retailer Warehouse/Distribution Locations As a central distribution hub for serving markets in the Southeast, Georgia has become a location favored by many retailers. More than 48 retailers have facilities in communities throughout the state. Store categories include groceries, drug and fast food restaurant chains as well as major department and discount store networks, auto parts, furniture and other specialty retailers. Many retailers have multiple facilities, some serving as regional distribution centers and others serving as major import centers. For a complete list of retailers with dedicated Georgia facilities, please see Appendix A on page 26. Twenty of the top 100 logistics IT companies are located in Georgia. Logistics IT Companies Supporting the substantial number of warehouse/distribution facilities and capitalizing on the presence of world-class logistics expertise at Atlanta-headquartered UPS and Georgia Institute of Technology s Supply Chain & Logistics Institute, many companies specializing in development of logistics software have chosen to locate in Georgia. Atlanta is home to such premier supply chain software developers as Manhattan Associates, Manugistics and UPS Logistics Technologies. Twenty of the top 100 Logistics IT companies identified by Inbound Logistics magazine have a presence in the state. 4

7 Top Logistics IT Companies in Georgia CargoWise nvision Descartes Systems USA ORTEC Epicor Software PeopleNet HAL Systems Inc Precision Software Infor Global Solutions RMI Inovis Inc SAP America Logility Sterling Commerce Management Dynamics TransCore Manhattan Associates UPS Logistics Technologies Manugistics, Inc. Viewlocity Inc Source: Inbound Logistics, April 2006 and Georgia Power Community and Economic Development Georgia is home to 290 warehouse facilities that employ 100 workers or are at least 100,000 square feet in size. Major Warehouse/Distribution Center and 3PL Locations Georgia has extensive warehouse facilities of all sizes located throughout the state. To give a perspective on the locations of the larger facilities, those 290 identified as having a minimum of 100,000 square feet or 100 employees are listed in Appendix B beginning on page 27. 5

8 Georgia Warehouse/Distribution Centers with at least 100,000 square feet and/or 100 employees (Inset shows metro Atlanta area detail) 59 Rome Atlanta Columbus 85 Albany Macon 75 Athens Haralson Augusta Carroll Heard Bartow 95 Meriwether Cherokee Brunswick Pickens Pike Spalding Savannah Dawson Forsyth Barrow Paulding Cobb 285 Gwinnett DeKalb Walton Douglas Fulton Rockdale Clayton Newton 20 Henry Fayette Coweta Jasper 85 Lamar Butts 75 Valdosta Fifty of the nation s top 100 3PLs operate in Georgia. Reflecting Georgia s importance as a logistics center, many of the major national 3PL providers have a presence in the state. Fifty of the companies listed as Inbound Logistics top 100 3PLs have an operation in Georgia. Those with an office or warehouse management location are listed in Appendix C on page 40. 6

9 Trransporrttattiion Systtem Georgia s interconnected transportation system helps companies improve their globally competitive position. A key component in the success of Georgia s logistics companies is the state s outstanding highway, rail, air and port interconnected transportation system. With a central location in the Southeast and efficient ways of connecting to national and world markets, a Georgia company has a globally competitive edge. Highway Interstate highway access from Georgia to the rest of the United States is unparalleled. Five major interstates (I-16, I-20, I-75, I-85 and I-95) cross the state. Atlanta is one of five cities in the country with three cross-country interstates intersecting near downtown. Two major interstates intersect in Savannah. Southeastern United States Highway System Jackson! 40! ! 59 Atlanta Columbia! Nashville Highly rated for quality of maintenance, Georgia s toll-free highway system moves traffic efficiently. 65 Montgomery! Tallahassee! Georgia s extensive road system is well maintained. Pavement conditions of the state s rural Raleigh! and urban interstates ranked number 1 in a 2005 study of state highway systems by the University of North Carolina. Washington-based TRIP rated Georgia s Interstate pavement conditions as Good using Federal Highway Administration data in a 2006 study. 95 The state s Intelligent Transportation System (ITS) components ease traffic flow and improve travel time. A Transportation Management Center operates around the clock to provide statewide incident management using video monitoring, changeable highway message signs and the Navigator website. Within the Atlanta area, Highway Emergency 95 Response Operator (HERO) vehicles respond immediately to incidents, minimizing traffic disruption caused by blocked lanes. No parts of Georgia s interstate system operate as toll roads. Improvements to the state s highway system are planned and implemented by a careful process. The state s three-year budget for highways and transit totals $8.03 billion, with $4.21 billion in federal funds; $3.5 billion in state funds, of which $2.74 billion are state bonds; and $0.3 billion in local funds. In the metro Atlanta area alone there are 49 road and highway infrastructure projects valued at more than $30,000,000 each. Trucking With the state s superb interstate connections, Georgia is one of the nation's major trucking hubs. 7

10 In fewer than two truckload delivery days, Georgia businesses can reach 82 percent of the U.S. industrial market and 79 percent of the nation s largest consumer markets. Seattle 5 Days San Francisco 4 Days Typical Truck Transit Times from Atlanta 3 Days Denver Dallas 2 Days St. Louis 1 Day Cincinnati ÊÚAtlanta Tampa Boston New York More than 43,938 interstate and several thousand intrastate motor carriers list Georgia as their base of operation. The Georgia Motor Trucking Association represents more than 400 for-hire carriers and 400 private carriers. Weigh stations along Georgia interstates have AVI capability to speed pre-approved trucks through by-pass lanes, saving valuable transit time. Trucks obtain AVI transponders from a private national firm. Georgia s Extensive Rail System Georgia s 4,700-mile rail system is the most extensive in the Southeast. Rail System Georgia's 4,700-mile rail system, which provides direct rail service to approximately 500 Georgia communities, is the most extensive in the Southeast. Two of the country's largest Class 1 rail systems, CSX and Norfolk-Southern, provide the vast majority of rail freight service in Georgia, with connections to systems throughout the United States. An additional 24 short line rail companies operate on 1,452 track miles in the state. 59 Rome Atlanta Columbus 285 Albany 75 Macon Athens 16 Valdosta 20 Railroads Interstate Highways Augusta Savannah 95 Brunswick 8

11 Nine truck/rail intermodal facilities offer state-of-the-art transfer capability for rapid movement of goods. Five are located in the Atlanta area, two are at the Savannah port, and two are at the Brunswick port. Georgia Truck/Rail Intermodal Facilities The combination of Georgia s nine large and efficient trainto-truck transfer locations, converging interstate highways and easily accessible port facilities make Georgia one of the nation s global cargo-handling powerhouses. Facility Rail Operator Location Anguilla Junction Yard CSX Brunswick CSX Rail Yard CSX Savannah Fairfax CSX Industry Yard CSX Fairburn Hulsey Rail Yard CSX Atlanta Inman Rail Yard Norfolk-Southern Atlanta Mason Intermodal Container Transfer Facility Norfolk-Southern Savannah Mydharris Yard Norfolk-Southern Brunswick East Point Industry Yard Norfolk-Southern East Point Whitaker Yard Norfolk-Southern Austell Source: Official NHS Intermodal Connector Listing: Georgia, Federal Highway Administration and Georgia Ports Authority CSX s Hulsey Yard in Atlanta handles more than 500 trucks and 16 trains per day, while accommodating 180 flatcars simultaneously. Together, the Hulsey and Fairfax (Fairburn) yards perform in excess of 300,000 lifts annually, making Atlanta CSX s 4 th largest metro area operation in terms of lift volume. Atlanta is a regional headquarters for Norfolk-Southern. Between 80 and 110 trains move through the Atlanta Yards daily with at least two stack trains headed for the West Coast. The Whitaker Intermodal Terminal is the largest intermodal facility east of the Mississippi. With capacity for 275,000 lifts annually, the facility completes Norfolk-Southern s Atlanta hub service for the ports of Charleston, SC, Savannah, GA, Miami and Jacksonville, FL. To handle the double-digit growth in intermodal freight, the company plans to invest $10.7 million in this Austell facility. In addition, the East Point Yard in south Atlanta is the largest Road Railer hub in the world. Air Service Two international and seven regional airports provide commercial airline services in Georgia. International Service Hartsfield-Jackson Atlanta International Airport is the world s busiest in passenger volume and flight operations. Approximately 89 million passengers passed through Hartsfield-Jackson during

12 Hartsfield-Jackson is served by 27 passenger carriers, including 17 domestic carriers and 10 foreign flag carriers. More than 80 percent of the U.S. market is within a twohour flight time of Atlanta. Hartsfield-Jackson averages more than 2,600 daily departures and arrivals. Nonstop flights serve 169 U.S. cities. In a week, approximately 500 direct international flights serve 68 international destinations in 42 countries. Nonstop Air Service from Atlanta Atlanta is positioned well on a number of major highways, and, from a location point of view, is perfect for us to use as our Southeastern hub. Robert Zoller Jr., CEO, Kitty Hawk, Inc. Seattle 4 Hours San Francisco 3 Hours Denver 2 Hours St. Louis 1 Hour Cincinnati Boston New York Dallas ÊÚ Atlanta Tampa Nonstop Air Service from Atlanta Destination Location Number of Cities United States 169 North America (non-u.s.) 17 Caribbean 13 Central America 7 South America 8 Europe 20 Asia and Mid-East 3 Source: AIG Airline Tapes, July cargo-only air carriers operate from Hartsfield- Jackson. More than 700,000 metric tons of freight, express and mail shipped through Hartsfield-Jackson in 2005, making the airport the tenth busiest in the country for cargo shipments. Thirteen cargo-only carriers operate from Atlanta. Kitty Hawk Air Cargo recently announced establishment of its regional ground hub near Hartsfield- Jackson. 10

13 Hartsfield- Jackson received the ACE Award for Excellence from Air Cargo World in In 2007 a fourth 104,000 square-foot building will be added to the South Cargo complex, complementing the 27 plane parking spaces and more than 1.2 million square feet of cargo handling space at the North, Midfield and South cargo complexes. All complexes offer excellent dockside access to Interstates 75, 85, 285 and 20. In addition to the main cargo handling areas, the airport houses a U.S. Department of Agriculture-approved Perishables Complex, the only one of its kind in the southeastern United States. Inauguration of a fifth runway and air control tower in May 2006 has added flight capacity and is boosting on-time performance. An additional 10-year $5.4 billion airport improvement effort is underway. Projects include a new rental car agency complex, significant improvements to the passenger terminal complex, and an expanded and upgraded international terminal with 10 additional passenger gates Rome Columbus ") ") Atlanta 985 Albany Macon ") In Georgia s coastal area, Savannah/Hilton Head International Airport is served by eight commercial carriers which offer 41 daily non-stop flights. Regional Airports Seven additional airports provide Georgia s second tier cities of Albany, Athens, Augusta, Brunswick, Columbus, Macon and Valdosta with commercial passenger Georgia s Larger Airports and air cargo services. Runways at all regional 85 Athens Valdosta ") Runway Length ft ft ft ft. ") Military Airport Augusta ") Savannah ") Brunswick airports are 5,500 feet or longer. Georgia is also served by 106 public use airports, 238 private use airports, 115 private use heliports, and six military airports. Port Services Established in 1945, the Georgia Ports Authority (GPA) operates modern, efficient deepwater facilities and provides valueadded marine terminal services in Savannah and Brunswick, as well as inland barge terminals in Bainbridge and Columbus. Port of Savannah Located on the Savannah River approximately 22 nautical miles from the sea buoy, the port complex offers service capability for containerized, general and roll-on/roll-off cargoes. 11

14 Jackson! The Port of Savannah is growing at doubledigit annual rates and is the nation s fifth largest container port. 40! Raleigh! ! 59 Atlanta Columbia! Nashville 65 Montgomery! 85 Savannah Port improvements totaling $1 billion are planned for the next 10 years In every year since 2001, the Port of Savannah has been the fastest growing major container port on the East Coast and is the fifth largest U.S. container port. In FY 2006 the port handled more than two million twenty foot equivalent units (TEUs), an increase of 15.9 percent from the previous year. A major port facility expansion with an eighth container berth was completed in 2006, and four post-panamax container cranes will be added in 2007, increasing capacity by another 20 percent. Additional infrastructure improvements totaling $1 billion and including deepening of the harbor from 42 to 48 feet are planned for the next 10 years. As the port has grown, more shipping line services are making regular calls. At present, 36 shipping line services including 25 from Asia/Far East call weekly, and 27 lines serving Europe make weekly stops. As many as eight new services to Asia through the Suez Canal are expected in Georgia s Ports Tallahassee! p p Savannah Brunswick The port complex includes two terminals, Garden City and Ocean, both of which offer convenient access to Interstate Highways 95 and 16 within 10 miles of all port facilities. Garden City Terminal Garden City Terminal features a 1,200-acre complex with the longest contiguous dock on the East Coast. Rail interchange and line haul services are provided by both CSX and Norfolk-Southern. Adjacent to the terminal, the Mason Intermodal Container Transfer Facility provides port users with four 2,500-foot tangent rail tracks for container transfer. More than 100 motor carriers also service the Port of Savannah, and more than 3,000 containers and chassis arrive and depart daily. Ocean Terminal With 11 berths and more than 6,600 feet of docking space, the 208-acre Ocean Terminal provides 1.4 million square feet of inside storage and 83 acres of open storage. Facilities are capable of handling general, roll-on/roll-off and containerized cargoes ranging from heavy equipment and machinery to forest products and iron/steel using gantry cranes with lifting capacities of up to 175 tons. Transit sheds and warehouses are equipped with alongside rail and truck capabilities to expedite the handling of cargo and container stuffing/stripping operations. Rail services are provided by CSX and Norfolk-Southern. 12

15 Port of Brunswick Brunswick is the fourth-largest auto port in the eastern United States. Three modern deepwater terminals Colonel's Island Terminal, Mayor's Point Terminal and Marine Port Terminal comprise port facilities. Colonel s Island terminal handles vehicles for 15 automotive manufacturers. A new rail line extension to Colonel s Island Terminal will shorten freight delivery by as much as nine days. Colonel s Island Terminal Colonel's Island Terminal has emerged as one of the most dynamic, environmentally clean and fastest growing RoRo facilities in the United States. During FY 2006, more than 368,000 automobile and machinery units from 22 manufacturers were handled via Colonel's Island Autoport. Upon completion of a harbor-deepening project in 2006, all of the world s auto-carrying fleet will be able to safely access port facilities. The terminal features three auto processing centers to assist in the movement of vehicles, machinery and farm equipment. AMPORTS, Atlantic Vehicle Processors, Inc., and International Auto Processing, Inc., are located on-site to offer a wide range of auto processing and distribution services. The processing centers provide total refurbishment services in addition to mechanical and cosmetic enhancements for the import/export of vehicles. The Colonel's Island Terminal features 1,850 feet of berthing space and includes more than 1,700 acres of improved land with ample room available to support further development of the automobile/machinery import/export trade. The terminal is also equipped with a multi-purpose agri-bulk facility used for the import and export of a vast array of bulk grain products. The terminal is located 2.5 miles from I-95 and has rail service from both CSX and Norfolk-Southern. Mayor s Point Terminal The Mayor s Point Terminal offers two berths, more than 350,000 square feet of transit shed space and 7.9 acres of open storage. Wood pulp, plywood and lumber have been the primary products handled in recent years. Interstate access is via I-95 six miles away. Both CSX and Norfolk-Southern provide rail services. Marine Port Terminal Operated by Logistec USA, Marine Port Terminal handles general cargo and bulk commodities. With 145 acres and 2,415 feet of berthing space, facilities include 491,000 square feet of covered storage and 15 acres of open storage. Rail service is provided by CSX and Norfolk-Southern. 13

16 Worrkfforrce Georgia s many logistics facilities employ a large and qualified workforce. Several programs are providing additional workers to staff the state s growing logistics industry. Substantial logistics employment is located in the Atlanta, Savannah and Macon metro areas. Employment and Wage Rates Georgia s substantial logistics employment includes those occupations associated with warehouse/distribution facilities. Facilities in the metro areas of Atlanta, Savannah and Macon employ a substantial portion of the state s logistics workforce. Georgia and Selected Metro Area Logistics Occupational Employment SOC Code Occupation and Description Employment Georgia Atlanta Macon Savannah Transportation, Storage, 3,930 2,730 N/A 160 and Distribution Managers Computer Support 18,500 14, Specialists Industrial Engineers 4,280 2, Industrial Engineering 1, N/A N/A Technicians Security Guards 26,230 17, , Janitors and Cleaners, 52,320 28,170 1,700 2,520 Except Maids and Housekeeping Cleaners Order Clerks 7,480 4, Cargo and Freight Agents 1,790 1,560 N/A N/A Production, Planning, and 11,880 7, Expediting Clerks Shipping, Receiving, and 21,110 12, Traffic Clerks Stock Clerks and Order 57,450 34,340 1,230 2,150 Fillers Weighers, Measurers, 2,890 1, Checkers, and Samplers, Recordkeeping First-Line 6,510 3, Supervisors/Managers of Helpers, Laborers, and Material Movers, Hand First-Line 8,150 4, Supervisors/Managers of Transportation and Material-Moving Machine and Vehicle Operators Truck Drivers, Heavy and 52,270 29,200 1,160 2,160 Tractor-Trailer Truck Drivers, Light or 30,520 16,770 1,100 1,220 Delivery Services Industrial Truck and Tractor 30,370 15, ,210 Operators Cleaners of Vehicles and 10,180 6, Equipment Laborers and Freight, Stock, 84,670 48,480 1,570 4,270 and Material Movers, Hand Packers and Packagers, 30,260 16,850 N/A 610 Hand Source: Occupational Employment and Wage Estimates, U.S. Bureau of Labor Statistics, May 2005 Wages in Georgia for the occupational classifications most frequently employed by logistics companies compare favorably with national averages. Annual wage rates in 14

17 Georgia for 19 of the 20 major logistics occupational codes are below the national average. Average wage rates in Georgia for 19 of 20 logistics occupations are below the national average. Wage Rates for Occupations Frequently Employed by Logistics Companies SOC Code Occupation and Description Average Annual Wage U.S. Georgia Atlanta Macon Savannah Transportation, Storage, $75,130 $69,890 $73,640 $63,910 $59,080 and Distribution Managers Computer Support $43,380 $41,600 $43,320 $35,430 $43,220 Specialists Industrial Engineers $68,500 $65,750 $68,020 $66,380 $59, Industrial Engineering $49,220 $48,190 $50,720 N/A N/A Technicians Security Guards $22,690 $21,850 $22,280 $21,700 $19, Janitors and Cleaners, $21,120 $18,620 $19,830 $15,860 $14,600 Except Maids and Housekeeping Cleaners Order Clerks $27,410 $26,190 $28,300 $22,860 $24, Cargo and Freight Agents $37,380 $39,660 $40,130 N/A $32, Production, Planning, and $38,920 $37,460 $38,920 $35,670 $39,070 Expediting Clerks Shipping, Receiving, and $26,620 $26,270 $27,180 $24,980 $28,470 Traffic Clerks Stock Clerks and Order $22,060 $21,760 $22,920 $19,830 $19,910 Fillers Weighers, Measurers, $27,030 $24,760 $25,850 $20,600 $27,890 Checkers, and Samplers, Recordkeeping First-Line $41,210 $39,260 $40,420 $35,860 $40,140 Supervisors/Managers of Helpers, Laborers, and Material Movers, Hand First-Line $51,230 $49,170 $53,250 $48,820 $50,820 Supervisors/Managers of Transportation and Material-Moving Machine and Vehicle Operators Truck Drivers, Heavy and $35,460 $35,250 $37,700 $35,060 $34,950 Tractor-Trailer Truck Drivers, Light or $27,020 $25,980 $28,330 $26,590 $25,100 Delivery Services Industrial Truck and Tractor $28,830 $26,270 $27,150 $28,110 $28,300 Operators Cleaners of Vehicles and $19,720 $18,620 $18,930 $19,260 $19,660 Equipment Laborers and Freight, Stock, $22,460 $21,480 $22,200 $19,870 $26,660 and Material Movers, Hand Packers and Packagers, $18,990 $18,210 $18,740 $14,560 $16,940 Hand Source: Occupational Employment and Wage Estimates, U.S. Bureau of Labor Statistics, May

18 Georgia s 3.7 percent unionization rate ranks 13 th lowest in the country. Unionization Union membership in Georgia has been declining in recent years, as it has throughout the United States. Since 2000, the percentage of unionized non-government workers has decreased from 4.6 percent to 3.7 percent (2005). Georgia s unionization rate is now well below the national level of 7.8 percent and ranks 13 th lowest in the country. Percentage of Unionized Private Workers Percentage Georgia U.S. Source: Union Membership and Earnings Databook, Bureau of National Affairs, 2006 Georgia is a right-to-work state and has passed employmentat-will legislation. Employment Regulations Right-to-Work State Georgia has been a right-to-work state since Fewer than half of the states in the country grant workers this protection. Right-to-Work legislation assures that: Workers will not be forced to join a union by employers or other union members. Employees working for a company with a union presence may decide for themselves whether or not to join a union. Workers cannot be forced to join a strike. Interference with an employer s lawful business through violence or mass picketing will not be allowed. Employment-at-Will State Georgia employment law recognizes the doctrine of employment-at-will. In Georgia, in the absence of a written contract of employment for a defined duration, an employer can terminate an employee for good cause, bad cause or no cause at all, so long as it is not an illegal cause. Federal Employment Regulations Georgia acknowledges the multitude and strength of federal mandates which govern the workplace. No state employment laws are more stringent or restrictive. 16

19 Employee Recruitment and Training Opportunities Georgia s public post-secondary education systems include the Georgia Department of Technical and Adult Education, which oversees technical education and training, and the Georgia Board of Regents, which offer associate s, bachelor s, master s and Ph.D.- level degree programs. Georgia Department of Technical and Adult Education Among the options for recruiting or training technical workers to start or expand a logistics facility are the alternatives administered by Georgia s Department of Technical and Adult Education. Expansion Management ranked Georgia Quick Start as the top workforce training program in the nation in Quick Start Quick Start is Georgia s internationally-recognized skills-based training program that provides job-specific training at no cost for qualified new and expanding companies. Training programs prepare workers to meet a company's timing and location needs. In FY 2006, Quick Start trained 44,156 workers through 256 projects. And in 2005, Expansion Management magazine ranked Georgia s Quick Start as the top workforce training program in the nation. A number of distribution facilities have taken advantage of Quick Start s customized job-specific technical training services. Distribution Facilities Using Quick Start Services Advance Auto Parts Fred s Inc. MBM Corporation AmeriCold Logistics GENCO Rheem Sales Co., Inc. Bass Pro Shops Havertys Furniture Saddle Creek Corp. Best Buy Co., Inc. hh gregg Sara Lee Chico s Hugo Boss Staples CIBA Vision Corp. ICON Health & Fitness Target CitiTrends Fashion Kellogg s Snacks Tractor Supply Co. Cooper Lighting Keystone Automotive Wal-Mart Dollar Tree Stores Kuehne + Nagel Z Gallerie Source: Quick Start, Georgia Department of Technical and Adult Education, 2006 When starting a project with a newly locating or expanding company, Quick Start staff conduct a needs analysis to determine the skill sets required for company operation. Core skills training in a pre-employment phase can be used to provide candidates with a realistic view of the job and give the company an opportunity to observe each candidate s technical and teamwork skills prior to final employment decisions. Advanced post-employment training programs are developed for the individual needs of each company. Quick Start has had experience with companies handling products ranging from clothing to paint to snack foods to vehicles. In the past, distribution 17

20 companies have requested a variety of training modules often characterized as either process training or task training. Representative Quick Start Job-Specific Training Modules for Logistics Centers Process Training Task Training Warehouse Layout RF Scanner Operations Coding & Labeling Systems Receiving Procedures RF Scanner and WMS Systems Picking Procedures Pick/Pack Wave Logic Packing Procedures Receiving Damaged/Missing Item Processing Staging Non-Conveyable Item Processing Put-away Gift-wrapping Picking Case Erector Operations Sorting Printer Maintenance Packing Stretch Wrapper Operations Process-specific Safety Trailer Cubing Productivity Measures and Goals Troubleshooting & Fault Recovery Source: Distribution Center Training, Quick Start Quick Start worker training may be conducted at the company s facility or a technical college location. To insure on-time start-up operations, training may be conducted at the company s facilities or at a state-supplied facility, such as one of 34 technical college campuses or 29 technical college satellite locations near the company s site. Georgia Technical College System The Georgia Department of Technical and Adult Education s technical colleges offer degree, diploma and certificate programs to give students the specific skills needed for today s work environment. Programs are geared to meet the needs of full-time students who are preparing for a career, as well as part-time students who are currently employed and updating or enhancing their skill sets. Both Business Technology and Industrial Technology specializations offer opportunities for logistics careers. Certified Warehousing and Distribution Specialist Program One of the more popular training regimens offered through Georgia s technical colleges is the Certified Warehousing and Distribution Specialist Technical Certificate. The fast-track program covers such topics as working in the warehouse environment, warehousing workforce skills, warehousing and distribution processes, and warehousing technology skills. Some companies have pre-qualified workforce applicants by guaranteeing interviews to graduates of the program. Others have specified this basic training curriculum for employees who have been hired. 18

21 Additional information on Georgia s technical college system is at For information on Quick Start, visit Georgia Technical Colleges and Satellite Locations %U Atlanta 20 %U Rome Columbus %U Albany 75 Macon Athens 20 Valdosta 16 Technical Colleges Satellite Campus Technical College %U College with Tech Program Augusta 95 %U Brunswick Savannah Board of Regents of the University System of Georgia The University System of Georgia includes 35 public universities and colleges where students can pursue degree programs. In addition to general business degree programs offered at many campuses, several schools offer programs which focus on logistics or supply chain specializations. Examples include: 19

22 Georgia Institute of Technology (Atlanta) Executive Masters in International Logistics; MBA with supply chain concentration; bachelor s, master s and Ph.D. degrees in Industrial Systems and Engineering, logistics professional certificates Georgia Southern University (Statesboro) Bachelors in Logistics and Intermodal Transportation Clayton State University (Morrow) Bachelors in Business with a supply chain concentration University of Georgia (Athens) Bachelors in Logistics and Materials Management Using the HOPE Grant, students seeking to become Certified Warehousing and Distribution Specialists may be eligible for full tuition reimbursement. HOPE HOPE - Helping Outstanding Pupils Educationally - is Georgia s unique program that rewards students hard work with financial assistance in degree, diploma, or certificate programs at any eligible Georgia public or private college, university, or technical college. Participants in the Certified Warehousing and Distribution Specialist Program, as well as most other degree and diploma programs, may be eligible for full tuition reimbursement. Georgia high school graduates with a 3.0 grade point average who are seeking postsecondary education at one of Georgia s public colleges or universities are eligible for the HOPE Scholarship. Students must maintain a 3.0 grade point average to keep the scholarship. At public colleges, the HOPE Scholarship provides full tuition, approved mandatory fees (such as health and student activity fees) and $300 per semester for books. Room and board expenses are not covered. Full-time enrollment is not required. All Georgia residents are eligible for the HOPE Grant that provides tuition for degree and non-degree programs of study. The certificate or degree program must be approved by the Georgia Department of Technical and Adult Education. Truck Driver Resources Training programs for truck drivers are available from several sources in Georgia to ensure an adequate supply of driving professionals. Five of Georgia s public technical colleges in locations throughout the state offer truck driver training. Two proprietary schools in the Atlanta area offer three-week 180-hour CDL Class A training programs. Two services specializing in recruitment and placement of trained truck drivers also operate in Georgia. 20

23 Summarry off Georrgiia s Logiisttiics IIncenttiive Prrogrrams Businesses expanding or newly locating in Georgia are often eligible for a variety of incentives offered at the state and local levels. The table below lists major statutory and discretionary incentives and tax exemptions available to logistics companies. For detailed information on these programs, Georgia Power Community and Economic Development at econdevga@southernco.com or see Georgia Power s Georgia Information, Incentives chapter at The incentives listed below are available to qualified logistics companies. Tax Credits: Credits applicable to Georgia corporate income tax liability and, in some cases, payroll withholding Job Tax Credit Job Tax Credit Bonus Retraining Tax Credit Education Tax Credit Small Business Growth Tax Credit Research and Development Tax Credit Child Care Tax Credit Qualified Child Care Property Tax Credit Port Activity Job Tax Credit Mass Transit Tax Credit Teleworking Tax Credit Opportunity Zone Credits Renewal Community/ EZ/EC Credits (Federal) State Tax Exemptions: Exemptions applicable to property and sales tax Federal Tax Exemption: Exemption applicable to customs duties Property Tax (discretionary incentive administered through local governments or development authorities) Freeport Inventory Tax (Property) Packaging Materials Sales Tax Primary Material Handling Equip. Sales Tax Custom Software Sales Tax Telephone Services Sales Tax Enterprise Zones (Property) Foreign Trade Zones Note: Additional discretionary assistance may be available at the state and local levels. 21

24 Logiisttiics IIndusttrry Techniicall Resourrces Both academic and professional resources support logistics companies in Georgia. Academic and State-Affiliated Programs Georgia Tech s Graduate Industrial Systems Engineering Program has been ranked #1 in the country in each of the past six years. SCL has the largest number of logisticsoriented engineering graduates at the bachelor's, master's and Ph.D. level of any university in the world. Supply Chain & Logistics Institute (SCL) at Georgia Tech ( The world-recognized Supply Chain & Logistics Institute in the School of Industrial and Systems Engineering (ISyE) provides logistics expertise for industries focusing on global logistics, information technology, industrial engineering and supply chain management. SCL's logistics mission is three-fold. Research - The Institute emphasizes the three major elements of the logistics value chain: supply chain: design, transportation planning, and e-commerce logistics. Professional Education - SCL offers a comprehensive curriculum of more than 10 short courses and seminars, ranging from material handling to global logistics, which may be taken individually or as part of a Georgia Tech Professional Education certificate program. SCL also sponsors an Executive Master s in International Logistics (EMIL) degree through Georgia Tech s School of Industrial and Systems Engineering (ISyE). Industry/Academic Practice - SCL works with more than 15 corporate partners known as Leaders in Logistics. Members evaluate professional education programs, review and steer research agenda and work with faculty and students on research projects. In addition, the Georgia Tech Supply Chain Executive Forum provides individuals who have executive-level responsibility for supply chain activity with resources to enhance the success of their supply chains. The SCEF purposely includes a broad range of organizations that are essential to the success of any supply chain (e.g., retailers, wholesalers, manufacturers, suppliers, transport providers, 3PLs, IT and software firms, etc.) in the belief that true supply chain integration occurs only when these organizations work together effectively. Maritime Logistics Innovation Center (MLIC) ( The Maritime Logistics Innovation Center is a unique partnership of private industry, academia and federal and state authorities such as the Georgia Ports Authority (GPA). Working together, these groups develop, apply and promote new technologies, identify unique applications for existing technology, and create best practices for safe, efficient and secure supply-chains. MLIC is headquartered at Georgia Tech s Savannah campus. MLIC links industry partners such as manufacturers, retailers and various transportation mode providers who are facing the challenges and opportunities of the maritime logistics industry with problem solvers, including world-renowned 22

25 I spend a lot of time talking with industry, asking what kinds of things keep them up at night, says Page Siplon, Director of Georgia s Maritime Logistics Innovation Center. Understanding the unique needs of the logistics industry and then connecting them with the right problem solver team is crucial to growing Georgia s logistics industry. researchers from academia, leaders from the technology community, relevant industry associations and other industry experts. MLIC strives to promote innovative technology solutions. Members are given licensing opportunities for new approaches, and partner companies can take advantage of overhead-free matching funds to help seed research projects. A recently-announced collaboration with Savi Networks, a provider of Radio Frequency Identification (RFID)-based information services to monitor cargo container shipments, will provide terminal operators and their customers the ability to obtain real-time information on RFID-tagged containers at other ports worldwide connected to Savi Networks. This project will create an interactive test bed for research and development efforts throughout Georgia s industries, enhancing their competitiveness and the state s role as a center of global commerce. Georgia Tech Research Institute (GTRI) ( As the non-profit research arm of the Georgia Institute of Technology, GTRI is a sponsor-oriented applied research organization focused on research, education and economic development programs to improve the global competitiveness of Georgia, the Southeast and nation. GTRI employees annually perform or support approximately $100 million in research for more than 200 clients in industry and government. GTRI laboratories include: Aerospace, Transportation and Advanced Systems Laboratory (ATAS) with specializations in intelligent transportation systems and intermodal transportation infrastructure. The Electro-Optical Systems Laboratory (EOSL) with specializations in RFID and Tagging, Tracking and Locating. This lab also incorporates the Logistics and Maintenance Applied Research Center (LandMARC) ) which focuses on the integration of performance support and information technology for application to the logistics and maintenance environment. Advanced Technology Development Center (ATDC) ( Since its inception in 1980, Georgia s nationally recognized science and technology incubator, ATDC, has assisted more than 100 Georgia entrepreneurs from start-up operation to independent business. In addition to its original location on the campus of Georgia Tech, ATDC now has facilities in Columbus, Savannah and Warner Robins. Among the innovators working with logistics applications under ATDC guidance are the following companies: 23

26 Having graduated more than 100 businesses, ATDC has been recognized by Inc. Magazine as one of the nation's top non-profit incubators. Agrios provides a solution and service to automatically capture, identify and archive damage information on fleet and personally-owned vehicles so as to reduce losses for fleet owners and insurance companies. Avion Logistics provides supply-chain optimization for the aerospace industry through the use of advanced reclamation and inventory management technologies. ScanTech Holdings, LLC develops and markets high-energy electron beam and X-ray inspection systems. A leader in dual energy X-ray technology, ScanTech has developed the most sophisticated and cost effective systems for the detection of threats that may be hidden in baggage and cargo containers. Its heavily patented technology allows not only imaging of the contents, but also enables operators to differentiate threat materials that may be hidden inside. Vendormate is a technology and analytics company that provides Web-based business-credentialing and compliance-monitoring solutions to help companies better manage the composition and risk of their supplier-base. Professional Groups and Trade Associations Atlanta Maritime Association ( Organized in 1975, the Atlanta Maritime Association offers educational and informative events, social events and networking opportunities which foster growth and excellence in the international ocean cargo industry. Members include containerized ocean cargo carriers, ocean transportation intermediaries (OTIs - freight forwarders, customs house brokers, NVOCCs), truckers, warehouses, and other allied services. Recent activities have included tours of rail transport facilities, dinner speaker meetings and social outings. Job postings are listed on the association website. American Society of Logistics and Transportation (AST&L) ( AST&L is a professional organization founded in 1946 by a group of industry leaders to insure a high level of professionalism and promote continuing education in the field of transportation and logistics. AST&L's mission is to facilitate education and certification in the fields of transportation, logistics, and supply chain management. Organization members includes shippers, carriers, educators, consultants and thirdparty logistics individuals committed to raising the professional standards in the industry. The group s CTL (Certified in Transportation and Logistics) Certification Program began in In 2002, AST&L affiliated with The National Industrial Transportation League (NITL) to enhance the education component for the organization and its members. 24