Manufacturing Drives Growth in Savannah
I finally got around to reading the Savannah Economic Trends 2024 report, published by the Savannah Chamber of Commerce, where both Home Buyers of Savannah and Ranger Investors are members. My favorite economists from Georgia Southern University, the team behind the Economic Monitor, contributed significantly to this report. In addition to various economic forecasts, the report outlines the key pillars of Savannah’s economy:
- Manufacturing
- Port Operations and Logistics
- Tourism
- Health Care
- Military
- Real Estate
These industries collectively produced $29 billion in economic output in 2022, making the Savannah economy the third-largest in Georgia. From 2021 to 2022, Savannah’s economic output increased by 3.6%, outpacing nearly every major metro in Georgia except Gainesville. The private sector accounted for 89% of economic activity ($26.2 billion), with manufacturing contributing the largest share of economic growth.
It might be easy to assume that tourism would be Savannah’s primary driver of economic growth. As Savannah’s reputation continues to expand, more and more tourists flock to our beautiful city, making their presence felt downtown and at the beach. However, while the hospitality sector employs a substantial portion of the workforce (14.3%), its economic impact is less than that of manufacturing.
Despite comprising only 9.8% of the workforce, manufacturing contributes 17.6% of the region’s economic output. The weekly wages from manufacturing jobs are well above the Savannah average, granting those in the sector greater purchasing power in an already affordable city. When comparing housing costs, Savannah remains well below the national average, and is notably more affordable than other port cities and southeastern cities.
In the realm of manufacturing, the Hyundai Metaplant is a dominant force, with expectations that Hyundai and its suppliers will create over 10,000 manufacturing-related jobs. Other major manufacturers, such as Gulfstream and JCB, have long provided substantial employment in Savannah and continue to invest in the region.
With over 400 manufacturers fueling Savannah’s economy, and many more on the way, the city’s affordability and job opportunities will continue to attract workers and their families. The pressing question now is: How will we house them all?
