2006 Economic Impact Study
Download the Economic Impact Study
The manufacturing sector has long been a key foundation underpinning the Savannah area economy. However, in recent years the regional manufacturing industry has declined while non-manufacturing industries have experience solid growth. Yet, despite its decline in recent years, manufacturing has become more closely integrated with the region's non-manufacturing sectors since 2001. In some respects, manufacturing's overall role in the economy has increased despite its recent loss of jobs.
This apparently counterintuitive result occurs for three reasons. First, workers in manufacturing earn wages and salaries significantly higher than those in other economic sectors. Second, manufacturing has been purchasing more of its inputs from local suppliers. Third, the value-adding capacity of the manufacturing sector is unsurpassed by any other sector in the regional economy.
Thus, the benefits of maintaining a healthy manufacturing sector are substantial. Manufacturing's economic ripple effects spread through the entire regional economy creating opportunities in services, construction, distribution, retail, finance, insurance, real estate, and more. Manufacturing businesses also support state and municipal governments through their tax payments.
This study documents the economic and fiscal impact of manufacturing on the regional economy of Chatham, Effingham, Bryan and Liberty counties in 2005. This information could help the community understand the need to maintain the current manufacturing base and emphasize the benefits of attracting new manufacturing businesses.
