Roger Harris: 2011 outlook sunnier for ET economy

Aftershocks of the Great Recession continue to ripple through East Tennessee, but there are reasons to expect an improved regional economy in 2011.

To be sure, layoffs and business closings have not ended, but a number of projects are in the works that will bring millions of dollars of capital investment and thousands of jobs to the region over the next few years.

The big kahuna, of course, is Volkswagen's billion-dollar manufacturing complex in Chattanooga. Construction of the mammoth plant is virtually complete and production of the company's much-anticipated new sedan is expected to begin early2011.

VW has been hiring for months and plans to have a work force of 2,000 or more. VW also is indirectly responsible for hundreds of other new jobs as several suppliers and vendors have been attracted to the region.

Other projects in the southeast corner of the state that will take shape this year are Whirlpool Corp.'s $120 million expansion in Cleveland, Tenn., and Amazon.com's $139 million investment in new call centers in Chattanooga and Bradley County. The call centers will create about 1,400 jobs.

Also coming is Wacker Chemie's billion-dollar plant in Bradley County.

The solar energy industry is another economic driver for the region. Tennessee Solar Institute last month approved nearly $7.28 million worth of innovation grants that companies will use to reduce energy, train workers and install the latest technologies.

AGC Flat Glass North America in Kingsport, which manufactures glass for photovoltaic modules, was one of the grant winners, raking in awards totaling $1.5 million.

In Blount County, Pellissippi Place, a new business park that opened a few months ago, has attracted the attention of several companies interested in the park's tech focus.

The Horizon Center Business Park in Oak Ridge also is generating investment. ORNL Federal Credit Union bought 38 acres to build a new corporate headquarters. The environmental engineering firm Restoration Services Inc. and Carbon Fiber Technology Center also plan to build in Horizon Center. Together the three projects represent hundreds of new jobs.

Also, some businesses that previously slashed jobs are starting to rebuild their work forces as the economy recovers. Exide Technologies, a Bristol, Tenn.-based company that makes lead-acid batteries, laid off 70 percent of its work force in 2009, but has since added more than 200 jobs.

Knox County remains in the job creation game, despite the County Commission's ill-advised decision earlier this month to kill the proposed Midway Business Park. Long-term, the loss of the Midway park will hurt, but economic development officials have not been idle.

Among their recent successes are Cornell Dubilier Foil's purchase of the former Panasonic plant and Melaleuca's multimillion-dollar expansion of its facility in the Forks of the River Industrial Park. Melaleuca, an Idaho-based maker of nutritional supplements and other products, expects to create 500 new jobs over the next 10 years.

Complete recovery from the recession will take time - we have a long way to go to recoup the jobs lost in the last few years - but the regional economy is headed in the right direction.

Business writer Roger Harris may be reached at 865-342-6342. Follow his comments on business news on the Rant$ and Rave$ blog.