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Location/Transportation
Bordering eight states in the south central region of the U.S., Tennessee is strategically located to facilitate prompt, efficient and economical transportation to principal markets and population centers.
As a major intersection for air, road, rail and waterway transportation, Tennessee offers accessibility to deep water ports on the Gulf of Mexico and the East Coast, and is a prime location for both domestic and international commerce.
Six different interstate highways
Eight interstate spurs around the metro areas
An excellent system of federal, state and local highways
Five major regional airports
A robust commercial service system for passenger and freight movement
Memphis International Airport is the No. 1 air cargo-handling facility in the world
Three major railroads traverse parts of Tennessee
Fourteen short-line railroads serve small communities and rural areas
Tennessee is located on the nation’s inland waterway system and offers 1,062 miles of navigable waterways
Memphis ranks 2nd among U.S. inland ports
The Tennessee-Tombigbee Waterway provides direct access to the Gulf of Mexico harbors and international markets
Automotive Industry
Tennessee has emerged as a major force in the domestic production of automobiles and trucks. Tennessee’s three automotive assemblers, Nissan, Saturn and Peterbilt have pushed its ranking in the U.S. to 5th in autos and 8th in truck production. Tennessee’s combination of three major assembly plants and over 1,000 supplier plants provide a workforce of 159,500, just over 38% of the state’s total manufacturing employment. Total annual payroll is estimated at $6.6 billion. The latest addition to Tennessee’s automotive industry is Toyota’s $124 million engine block plant scheduled to open in Jackson, Tennessee in late 2005.
Distribution
Bordering eight states in the south central region of the U.S., Tennessee is strategically located to facilitate prompt, efficient and economical transportation to principal markets and population centers. Since its inception of overnight delivery to 25 U.S. cities in 1973, Memphis-based FedEx has grown into a multimillion-dollar corporation with air and ground forces that handle more than 6 million packages each day. Statewide, the distribution industry provides almost 5 percent of all nonfarm jobs.
Technology
Tennessee’s niche in technology capabilities can be found in Oak Ridge. The Oak Ridge National Laboratory is very progressive in developing and initiating new projects. One example is the Spallation Neutron Source, a U.S. Department of Energy $1.4 billion, six-yearproject. This neutron testing facility, when completed in 2006, will attract scientists from all over the world to utilize its capabilities.
In 1999, Tennessee embarked on a public-private partnership, created by the state’s General Assembly, to forge Tennessee’s role in the technology-oriented “New Economy.” Tennessee’s new economy is being built onemerging new ideas, on capitalization of research institutions across the state, by licensing intellectual property around the best ideas, and helping new companies find talent to fuel their growth. Other notable research sites in Tennessee include the Arnold Engineering Development Center, the University of Tennessee, St. Jude Children’s Research Hospital and Vanderbilt University/Hospital.
| Major Manufacturing Companies ( bySector) |
Company | City |
Product |
| Transportation Equipment | Tennessee Denso Noranda Aluminum Saturn Corp Aerostructures Corp. Nissan Motor Mfg. USA |
Maryville Franklin Spring Hill Nashville Smyrna |
Auto parts Wheels Auto assembly Aircraft pts. Auto assembly |
| Machinery | Astec Industries Franke Inc. Porter Cable/Delta Corp. Murray Ohio Calsonickanseiv N. A. |
Chattanooga Chattanooga Jackson Lawrenceburg Shelbyville |
Const.mach. Food svc equip Power tools Lawn tractors Auto air cond. |
| Chemicals | Eastman Chemical Co. King Pharmaceuticals Polyone Corp. Bulab Holdings Chattem Inc. |
Kinsport Bristol Dyersburg Memphis Chattanooga |
Plastic mtrls. Pharmaceuticals Plastic mtrls. Organic chems Pharmaceuticals |
| Food | Doane Pet Care Co. ACH Food Companies McKee Foods Land-O-Sun Dairies Brach Van Houten |
Brentwood Cordova Collegedale Johnson City Chattanooga |
Dog/cat food Fats/oils Bread products Dairy products Candies |
| Fabricated Metals | Y12 Nnsc Ms Varco Pruden Buildings Yorozu Automotive Choctaw Inc Manchester Tank & Equipment. |
Oak Ridge Memphis Morrison Memphis Brentwood |
Warheads Prefab bldgs. Metal auto trim Fabricated pipe Vessels & tanks |
| Primary Metals | Mueller Industries Alcoa Inc. Norandal USA North American Royalties Pasminco |
Memphis Alcoa Franklin Chattanooga Clarksville |
Copper Aluminum Aluminum foil Iron castings zinc |
| Rubber & Plastics | Bridgestone/Firestone Dura-Line Corp. TRW Koyo Steering Systems M-Tek Aqua Glass Corp. |
Nashville Knoxville Vonore Manchester Adamsville |
Tires Plastic pipe Auto parts Auto parts Fiberglass tubs |
| Printing & Publishing | American Color Graphics Thomas Nelson Publishers Quebecor World United Methodist Pub. House Premier Graphics |
Brentwood Nashville Kingsport Nashville Cordova |
Printing svcs. Books Books Books Comm.. print |
| Electronic/Elec Equipment |
Alcoa Fujikura Nortel Networks Thomas & Betts Matsushita Elec Components Five Rivers Electronics |
Franklin Nashville Memphis Knoxville Greeneville |
Wire harness Switching equip Elec connectors Audio systems Televisions |
| Nonagricultural Employment by Sector | Employment | Percent of Total |
| Manufacturing | 464,700 | 17.2 |
| Mining | 3,700 | 0.1 |
| Construction | 119,00 | 4.4 |
| Trade, Communication, Utilities | 173,800 | 6.4 |
| Finance, Insurance Real Estate | 132,300 | 5.0 |
| Trade | 635,300 | 23.5 |
| Services | 771,900 | 28.6 |
| Government | 402,200 | 14.8 |
The bottom line is that the cost of doing business in Tennessee is low and the state means to keep it that way.
Some reasons are inherent – a central location within three-fourths of the nation’s population, a mild climate and motivated, hard-working people. But other reasons are by design, such as a right-to-work law, low-cost electricity from the Tennessee Valley Authority, workforce training initiatives that produce highly skilled and loyal employees, an ever-growing investment in technology and a lightly regulated, low-tax business environment.
The very first Competitiveness Award granted by Site Selection magazine in 2003 went to Tennessee. A comprehensive study of all fifty states using numerous criteria judged Tennessee as number one in providing a competitive advantage to new and expanding businesses.
