UGA Report: Georgia forests provide $37 billion in ecological benefits to state

 A University of Georgia researcher has found that Georgia’s forestlands provide essential ecosystem services to the state worth an estimated $37 billion annually. This is in addition to the value of timber, forest products and recreation. This is the first time these indirect benefits of Georgia’s private forests have been estimated.

Rebecca Moore, an assistant professor in the Warnell School of Forestry and Natural Resources, studied the 22 million acres of privately-owned forestland in Georgia to estimate the benefits of water filtration, carbon storage, wildlife habitat and aesthetics.

“People value these things,” Moore said, “but because they aren’t like other goods in that people don’t go out and buy them, it’s difficult to estimate just how much we value them. The purpose of our research was to do just that—estimate the value of the ecosystem services provided by private forests in Georgia.”

Moore’s study was conducted with funding from the Georgia Forestry Foundation. The findings of her study were announced at the state capitol on Feb. 9.

“We have had studies for some time that tell us what the economic benefit of wood and fiber manufacturing in the state is,” said Steve McWilliams, executive director of the Georgia Forestry Foundation. “This new study allows us to place a dollar value on those services we receive from the standing forests, and they are many.”

Moore’s final report, which can be found at http://www.warnell.uga.edu/news/wp-content/uploads/2011/02/Final-Report-1-24-11.pdf, focused on six types of ecosystem services forests provide: gas and climate regulation; water quantity and quality; soil formation and stability; pollination; wildlife habitats; and aesthetic, cultural and passive use.

Moore and her collaborators—graduate students Tiffany Williams andEduardo Rodriguez and Warnell Assistant Professor Jeffrey Hepinstall-Cymmerman—analyzed Georgia forestlands by identifying key forest characteristics that affect ecosystem services and estimating per-acre values for each different type of forest.These values were estimated from survey data the team collected and from the results of previous published studies. What Moore found upon concluding her three-year study is that Georgia’s private forests provide an estimated $37 billion annual benefit to Georgia residents. The values can vary widely—between $200 to $13,000 per acre—depending on the location and ecology of the land, Moore said.

“Understanding the value of these benefits of forestland is important,” Moore said, “because it allows us to make better land use decisions. The ecological services forestlands provide are incredibly beneficial to Georgia, and you receive these benefits whether or not you own forestland. Many people think of them as free. But if we lose forestland, we risk losing these benefits.”

McWilliams said he hopes the results of Moore’s study focusing specifically on Georgia will result in public policy decisions that help us conserve Georgia’s working forests. “It carries a lot of weight when we can talk about Georgia forests to Georgia legislators and Georgia opinion leaders,” McWilliams concluded.

The Georgia Forestry Association is a conservation organization based in Forsyth. It works with landowners to adopt sound land management practices so that their forests will help provide clean air and water, soil conservation, wildlife habitats, recreation and timber products.

For more information on the Georgia Forestry Association, see www.gfagrow.org.

For more information on the Warnell School of Forestry and Natural Resources, see http://www.forestry.uga.edu/.

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Recession Makes Innovatin More Critical to Georgia Manufacturers

The recession has expanded the business advantages of Georgia manufacturers that compete on the basis of innovation in new or technologically improved products, processes, organizational structures or marketing practices. These innovative companies are more than twice as profitable as firms competing on the basis of low price.

That's one conclusion of the 2010 Georgia Manufacturing Survey, which also found that companies are preparing for post-recession growth, expanding export capabilities, addressing sustainability issues -- and still dealing with out-sourcing and in-sourcing. The survey, which included nearly 500 manufacturers, was conducted by Georgia Tech's Enterprise Innovation Institute, the Georgia Tech School of Public Policy, and Kennesaw State University, with support from the Georgia Department of Labor and accounting firm Habif, Arogeti & Wynne, LLP.

Georgia has approximately 10,000 manufacturers that provide nearly 350,000 jobs and account for 11 percent of the gross state product. Workers in manufacturing companies earn wages averaging nearly twice those of workers in retail companies.

The survey found a widening profitability gap between manufacturers that compete on the basis of innovation compared to those that use other competitive strategies. That gap has grown in each survey conducted since 2002.

"Companies that compete on the basis of innovation are much more profitable, pay higher wages and more likely to benefit from in-sourcing opportunities than firms that compete on low price," said Jan Youtie, the survey's director and a principal research associate in Georgia Tech's Enterprise Innovation Institute. "Adoption of an innovation strategy can be useful to manufacturers regardless of industrial segment, and is especially important during difficult economic times."

As part of the survey, companies were asked to rank six competitive strategies for their importance to winning sales. More than half of the respondents mentioned "high quality," while approximately 20 percent chose "low price" or "adapting to customer needs." Fewer than 10 percent reported "innovation/new technology" as a primary competitive strategy.

Across all six strategies, innovation was associated with the highest mean return on sales: 14 percent, compared to just six percent for the low-price strategy. And those financial benefits extended to workers, whose annual salaries averaged $10,000 per year more at innovative manufacturers than at other companies.

The top five innovative tactics reported by respondents were (1) working with customers to create or design a product, process or other innovation, (2) signing a confidentiality agreement to access a new product or process, (3) working with suppliers to create or design a product, process or other innovation, (4) purchasing new equipment, and (5) conducting research and development activities in-house.

While manufacturers of technology products are most often associated with the strategy, innovative companies can be found in all industrial segments, said Philip Shapira, co-director of the survey and professor in the Georgia Tech School of Public Policy.

"Many people think that innovation is something that has to be done in a lab, but our results show that innovation occurs more broadly, particularly as companies partner with customers and suppliers to take into account their needs for a new product or process," he explained. "While high technology companies tend to be innovative by their nature, innovation occurs across all segments, and every firm has opportunities to be innovative."

Companies often cite cost as a reason for not innovating, but Shapira noted that only 10 percent of companies take advantage of R&D tax credits; fewer still use investment tax credits. "While financial incentives can assist innovation, there is a greater need to build awareness and capabilities among more of the state's firms to undertake innovation," he said.

Though more than two-thirds of Georgia's manufacturers have cut jobs or lost sales in the recession, many of these companies are now looking toward the future with plans for locating new customers, boosting capital investment, expanding research and development and continuing to reduce costs.

"When we look at their plans, Georgia manufacturers are in an expansive mood, looking for new customers and getting ready for the next phase of economic growth," Youtie said.

The survey found that 70 percent of respondents were looking for new customers, 20 percent planned to expand capital investment, and 15 percent planned to increase expenditures on research and development. At the same time, 60 percent of respondents said they still planned to cut costs.

Another trend studied was growth in the number companies selling to international markets. More than half of the responding manufacturers said they were exporters -- and those manufacturers reported 50 percent higher profitability than non-exporters. Some 22 percent of respondents had increased their export sales since the last survey in 2008.

"We don't find much difference between exporting companies when comparing them by the amount they export," Youtie noted. "What seems to be important is the capability to export. We think there is some learning that takes place, and some capability that a company develops to become an exporter. That capability translates into improved performance across the board, in addition to creating new markets and different margins."

The survey also found that out-sourcing of work has leveled off, with approximately 16 percent of manufacturers affected by the loss of business in 2010. At the same time, the percentage of firms benefitting from in-sourcing -- movement of work to Georgia -- has grown to nearly 15 percent.

"Out-sourcing isn't going away, but it has stabilized," Youtie said. "In-sourcing appears to be growing, which creates opportunities for good manufacturers to benefit from consolidation of production from other U.S. facilities or even from overseas."

The study also looked at sustainability issues, and found that 60 percent of companies recycle and attempt to reduce waste -- one form of sustainability. However, just 11 percent of respondents had inventoried their carbon footprints or emissions, and fewer than five percent were using renewable energy.

The bottom line for manufacturers?

"The results of our survey can point manufacturers to a way forward for getting ready for the next phase," said Youtie. "Companies can develop innovation capabilities; they can look into exporting and they can collaborate more with suppliers and customers."

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Troup County, Georgia Leverages Economic Development Tool

/PRNewswire/ -- Troup County voters along with those in LaGrange, West Point and Hogansville, Georgia approved the use of Redevelopment Powers making the entire county "TAD friendly." TAD's, or Tax Allocation Districts, are a form of tax increment financing in the state of Georgia.

"Today's economy is extremely competitive for developers and businesses. Our region is extremely competitive," says Troup County Commission Chair Richard Wolfe. "This economic development tool gives us the ability to create value in our community and to create jobs for our citizens. It's just one more economic development tool our neighbors don't have right now."

Most residents expressed a special interest in attracting new retail to the growing community. "We have to re-imagine retail development as economic development," Wolfe said. The County plans to capitalize on recent economic development success having added over 5,000 jobs. With Kia Motors and several suppliers ramping up production, this West Georgia community is now poised for a new era of growth.

The community is targeting retail and mixed-use developers to attract quality projects. Scott Turk, Governmental Services Manager noted, "Troup County is at a tipping point in its growth and evolution as a regional community. This tool can make all the difference in tipping it to the side of positive growth." Tax increment financing may be used for office, warehouse/distribution, corporate headquarters, retail/commercial, residential, and mixed-use development projects. Georgia has other tax and financing incentives for employers and especially for relocating corporate headquarters.

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Employment Gains Signal Upward Potential, Says The Conference Board

/PRNewswire/ -- The 224 thousand gain in jobs (excluding the 66,000 additional workers on the census) in April is very welcome news. It clearly shows that this economic recovery can no longer be seen as a jobless one. Following three quarters of growing production, companies apparently find they can't squeeze out any more output without adding workers. This underscores yesterday's news that Q1 productivity growth slowed to a healthy 3.6 percent following the staggering rate of above 7 percent on average in the previous three quarters.

These job gains are comparable to what we've seen following other deep recessions, suggesting that U.S. business has become more confident that the recovery is sustainable. Manufacturing jobs are returning to a significant extent, and construction employment turned the corner in the previous two months. The key factor this spring will be continued gains in service-sector employment beyond health and education.

Continued employment gains of this size could put the economy on a solid 3 percent growth track and -- if productivity growth stays up - even boost it to 3.5 or 4 percent.

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U.S. Economy Distancing Itself from Great Recession - BMO Economics

/PRNewswire/ -- U.S. real GDP rose a much stronger-than-expected 5.7 per cent annualized in Q4, building on a modest 2.2 per cent advance in Q3, and a far cry from the 5.4 per cent slide of a year ago.

"The advance in exports, personal consumption and business capital spending points to some positive momentum in the economy," said Sal Guatieri, Senior Economist, BMO Capital Markets. "First-quarter GDP growth should top 3 per cent, further distancing the economy from the Great Recession, and encouraging firms to resume hiring."

More than half of the quarterly increase reflected inventory rebuilding, with an assist from net exports. Exports soared 18.1 per cent, even topping the prior quarter's sharp gain, amid support from an upswing in global demand and a weak dollar. Final sales (GDP ex-inventories) strengthened to 2.2 per cent, though final domestic demand weakened a bit to 1.7 per cent. The latter reflected a moderation in consumer spending (2.0 per cent), after the cash-for-clunkers auto program boosted sales in Q3. However, the underlying rate of consumer spending, though still soft, looks to have picked up.

Government spending was also weak due to ongoing retrenchment at the state level and a pullback in defense spending. Non-residential construction remained in the dumps, sliding 15.4 per cent. The main upward surprise in the report came from a 13.3 per cent surge in business equipment spending, the fastest in nearly four years. Recent strength in capital goods orders, coupled with the President's proposal to provide investment tax credits, point to ongoing strength ahead. Residential construction also advanced further in Q4, despite a recent pullback in housing starts.

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Consumer Interest in Larger Autos Continues to Rise as Gas Prices Fall

/PRNewswire/ -- Larger vehicles continued to see increases in views across AutoTrader.com as gas prices fell to around $1.60 nationally. The new Ford F-150 led the way with the most overall views of any new vehicle on AutoTrader.com during the month of December, enjoying an increase of 23.03% from December 2007. The new Dodge Ram also gained in consumer interest, with an increase of views of 43.16% year-over-year. This rise in interest for these two full-size pick-ups came partially at the expense of their chief competitors, the Chevrolet Silverado and GMC Sierra, which were down 12.64% and 2.73% year-over-year, respectively.

Consumers also researched dealership inventories on other large SUVs and minivans such as the Honda Pilot and Honda Odyssey, which saw increases in views of 129.63% and 60.46%, respectively, as well as large family sedans including the Chevrolet Impala and Honda Accord, which were up 32.11% and 27.13%.

Asking prices for most new vehicles on AutoTrader.com generally rose during the month of December, which at first seems counterintuitive considering the sluggish economy and rising manufacturer incentives. However, among consumers who are shopping for a new vehicle, many are opting for less- expensive, less well-optioned cars and trucks, leaving dealerships with better-optioned, more expensive inventory. With most manufacturers now scheduling production stoppages to better match the overall supply of vehicles available with consumer demand, dealers are not as quickly replenishing their inventories of these lower-priced vehicles.

"Consumers have reached new levels of concern about the current state of the economy, a fact reflected in the sales numbers we have seen since October," said AutoTrader.com President and CEO Chip Perry. "At the same time, we are seeing new-car shoppers making every dollar count by spending increased time on-line looking at a larger selection of vehicles to find the right car or truck at the right price."

Used Vehicles Continue Price Drops

Used vehicle prices and research levels showed drops across the board, in line with the current economic mood of the nation. Bright spots included the Chevrolet Tahoe, which saw a fraction of a percentage point increase in views year over year; the Jeep Wrangler, which saw a 6.34% jump compared to December 2007, and the Toyota Tundra, which recorded a 10.42% increase.

"Just as with new cars, used vehicles are also suffering due to consumers' economic fears," said Perry. "However, just as with those new vehicles, great deals are available for the asking for shoppers looking to buy a used vehicle in the New Year."

Perry remains optimistic that automobile sales will begin to revive in 2009. In the short term, Federal bailout money flowing into the financial sector should make credit more available. Tight credit has been a major impediment for those buyers who were in-market for a new or used vehicle, limiting vehicle sales to buyers with the highest credit scores or significant down payments. Aggressive moves in pricing and incentives by manufacturers and dealers looking to move existing inventory off of lots, combined with increased access to financing, should help sales into 2009.

In the longer-term, Federal bailout money will allow the Detroit manufacturers to retool their factories and balance sheets, with an eye towards future development.

"Shoppers considering a vehicle purchase in 2009 need to know that credit is available," said Perry. "And for many people who put off a vehicle purchase because of economic uncertainty or because of tight credit, there is pent up demand. This is illustrated by the fact that our unique visitor traffic was up about 20% in December of this year compared to December of last year. So people are definitely on-line looking at vehicles, considering their options, building their consideration sets and figuring out what they can afford. I do believe with a new year, easier access to financing and this pent up demand, we should start seeing some positive movement in auto sales in 2009."

AutoTrader.com is the ultimate automotive marketplace with over 3.5 million vehicle listings. Using research gathered by studying the shopping habits of over 14 million unique monthly visitors to the site, many of whom are in-market shoppers looking to complete a vehicle purchase within the next 90 days, AutoTrader.com regularly compiles this data to offer insight into current and emerging sales trends in the automobile industry.

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Grubb & Ellis Predicts a Challenging 2009 for Commercial Real Estate as Economy Weathers Recession

/PRNewswire-FirstCall/ -- Grubb & Ellis Company (NYSE:GBE) , a leading real estate services and investment firm, today released its 2009 Global Real Estate Forecast, which indicates that 2009 will be a challenging year for commercial real estate with the economy starting the year 13 months into what may become the longest recession since the 1930s.

"The economy will struggle in 2009, which will dampen demand for all product types, resulting in negative absorption and increased vacancy," said Robert Bach, senior vice president, chief economist of Grubb & Ellis. "We expect total payroll job losses in the range of 1 to 2 million in 2009 on top of the 2+ million in 2008. GDP is likely to shrink by 1 percent in 2009, compared with growth of 1.3 percent and 2 percent in 2008 and 2007, respectively."

The investment market, which saw transaction volume plummet in 2008 as the financial markets collapsed and the credit markets froze, is expected to see a 15 percent increase in sales volume in 2009 as distressed properties are brought to market, particularly those acquired in the past couple of years with floating rate debt. Loan delinquencies and foreclosures will increase with more properties returning to lenders, who will be anxious to sell them. Debt capital will remain expensive and tight in 2009, but more of it will be available than in 2008, and there will be a slow increase in equity capital flowing into the market from private, institutional and offshore investors waiting on the sidelines. The coming year should be more active as the gap between buyers and sellers gradually narrows, with sellers making up most of that difference.

Debt will be the hot investment type in 2009. Investments could be made in CMBS, collateralized debt obligations or funds investing in these assets. Or debt investments could be made at the property level with owners seeking to refinance their properties. More equity investments will be made as well in 2009 as investors holding an estimated $300 to $400 billion in institutional, private and offshore equity begin to deploy their capital in response to falling prices.

The outlook is equally challenging for global markets, both developed and emerging. The previous contention that emerging markets would largely escape the financial crises in North America and Europe looks to be overly optimistic. This will not be an ordinary downturn, but rather a structural correction in global capital markets that will impact every sector of the economy and real estate market.

One benefit of the global market correction has been the rapid evaporation of inflationary pressures in most key economies. The decline in inflation has left governments less reticent in using interest rates as a weapon in the battle to stave off sharp economic and commercial decline.

Office Tenants Will Have the Upper Hand in 2009

The office construction pipeline contained 90 million square feet at year-end 2008, the lion's share of which will be delivered in 2009. This combined with a projected 45 million square feet of negative absorption, including a big jump in sublease space, will push vacancy up by two percentage points to end 2009 at 16.5 percent. Tenants will have greater negotiating leverage in 2009 with concession packages becoming more generous as the year progresses. The growing inventory of sublease space will put downward pressure on asking rental rates for direct lease space, which are expected to decline in the range of 4 to 5 percent for both Class A and B space by year-end.

"Employment growth drives demand for office space and the labor market will be shrinking in 2009," said Bach. "Government and health care will be among the few sectors with growing demand for office space."

In this difficult market, Washington, D.C. should be at the top of office investors' buy list, according to Grubb & Ellis' Investment Opportunity Monitor, a proprietary market ranking in which Grubb & Ellis annually measures 60 office, 53 retail, 56 apartment and 55 industrial markets against 13 to 17 criteria important to the performance of real estate investments. Washington, D.C., is the one market that will benefit from the credit crisis as the government expands to implement its economic recovery plan.

Following Washington, D.C., on the top 10 list are Portland, Ore.; Los Angeles; San Francisco; Austin, Texas; Dallas-Fort Worth; Houston; Raleigh-Durham, N.C.; Boston; and Oakland, Calif. The Texas markets offer strong population growth, while the others offer strong population growth as well as natural barriers to entry.

Industrial Users Strive to Reduce Costs

Businesses look at industrial space as a productivity enhancer, an integral part of their supply chain strategies. Their relentless quest for cost-saving efficiencies should sustain demand for industrial space in 2009, despite the weak economy. However, supply is expected to outpace demand with absorption dipping into the red and the vacancy rate rising by 60 basis points to end the year at 9.4 percent as the construction pipeline delivers space still underway.

"The industrial market will recover more quickly than the office market because the construction pipeline is set to thin out sooner," said Bach.

For the third consecutive year, the logistics business is driving demand for space in Grubb & Ellis' Investment Opportunity Monitor's 2009 rankings. Los Angeles retained the top spot on the list, with its proximity to the busiest ports in the U.S., negligible vacant space and little developable land. Also making the list were other cities with nearby port facilities including Houston (No. 2), Oakland, Calif., and Seattle (tied for No. 4), Miami (No. 8), Portland, Ore. (No. 9) and New Jersey (No. 10). Inland distributions hubs Atlanta (No. 3), Dallas (No. 6) and Chicago (No. 7) rounded out the list.

Will Consumer Spending Rebound in 2009?

Consumer spending hit a 28-year low in 2008 with retailers in the crosshairs of the downturn. Grocery store-anchored centers in mature trade areas will hold their ground in 2009, while centers on the urban fringe, where housing construction has stalled will suffer. Retailers will be even more conservative with their expansion plans in 2009, with more store closings and fewer openings. Expect higher vacancies and softer rental rates by year-end.

"Value retailers are garnering the majority of consumers' dollars in this challenging economic climate," said Bach. "Even the luxury retailers, which are usually immune to downturns, are feeling the pain."

According to Grubb & Ellis' Investment Opportunity Monitor, no retail market will escape the effects of the recession entirely, but some offer more protection due to factors such as strong population growth, a high median income and/or limited land for further development. Los Angeles topped the list for retail investment followed by Washington, D.C. California had an additional three cities in the top 10 with Orange County (No. 6), San Francisco (No. 7) and San Diego (No. 9). Texas appeared three times with Houston (No. 3), Dallas (No. 4) and Austin, Texas (No. 8). Also making the list were Atlanta (No. 5) and Portland, Ore. (No. 10).

Multi Housing Will See Vacancy Rising as Well

The housing slump and recession have produced countervailing forces that will both help and hurt the multifamily market in 2009. Apartments are seeing some new renters who have lost their homes to foreclosure, while landlords are able to maintain existing renters who are waiting for prices and mortgage rates to fall further. However, new graduates who can't find jobs are doubling up with a roommate or moving in with a relative to conserve cash. At the same time, the apartment market faces competition from an increasing supply of unsold condos and foreclosed homes returning to the market as rentals. The negative forces are expected to have a slight edge in 2009 resulting in slowly rising vacancies for the multi housing market this year.

Of the top 10 apartment markets in Grubb & Ellis' Investment Opportunity Monitor, seven are on the West Coast and three are on the East Coast. All offer barriers to entry, good economic prospects and high home prices. Los Angeles ranks first followed by San Francisco; Orange County and Oakland, Calif.; Washington D.C.; San Diego; New York City; San Jose, Calif.; Long Island, N.Y.; and Portland, Ore.

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Ford Motor Company Welcomes Action to Provide Emergency Funding to GM and Chrysler

/PRNewswire-FirstCall/ -- Ford Motor Company (NYSE:F) said today that it welcomes action by the Administration to provide emergency funding for General Motors Corp. and Chrysler LLC.

"As we told Congress, Ford is in a different position. We do not face a near-term liquidity issue, and we are not seeking short-term financial assistance from the government," Ford President and CEO Alan Mulally said. "But all of us at Ford appreciate the prudent step the Administration has taken to address the near-term liquidity issues of GM and Chrysler. The U.S. auto industry is highly interdependent, and a failure of one of our competitors would have a ripple effect that could jeopardize millions of jobs and further damage the already weakened U.S. economy."

Ford recently submitted to Congress its comprehensive business plan, which details the company's plan to return to pre-tax Automotive profitability by 2011. In the plan, Ford said the transformation of its North American automotive business will continue to accelerate through aggressive restructuring actions and the introduction of more high-quality, safe and fuel-efficient vehicles -- including a broader range of hybrid-electric vehicles and the introduction of advanced plug-in hybrids and full electric vehicles.

"Ford has a comprehensive transformation plan that will ensure our future viability -- as evidenced by our profitability in the first quarter of 2008," Mulally said. "While we clearly still have much more work to do, I am more convinced than ever that we have the right plan that will create a viable Ford going forward and position us for profitable growth."

Ford is asking for access to a line of credit of up to $9 billion in bridge financing, but reiterated that it hopes to complete its transformation without accessing a government loan.

"For Ford, a line of credit would serve only as a critical backstop or safeguard against worsening conditions, as we drive transformational change in our company," Mulally said.

Ford reiterated that it is continuing aggressive actions to reduce costs and improve Automotive gross cash to fund its product-led transformation plan, despite the continued weakness in the global automotive market and economic environment. Ford said it is more committed than ever to deliver more of the safe, affordable, high-quality, fuel-efficient vehicles that consumers want and value. The company's plans include:

-- Delivering best-in-class or among the best fuel economy with every new vehicle introduced.

-- Investing approximately $14 billion in the U.S. on advanced technologies and products to improve fuel efficiency during the next seven years.

-- Introducing industry-leading, fuel-saving EcoBoost engines on today's vehicles for up to 20 percent better fuel economy and up to 15 percent fewer CO2 emissions versus larger-displacement engines.

-- Bringing to market by 2012 a family of hybrids, plug-in hybrids and battery electric vehicles.

-- Upgrading the Ford, Lincoln, Mercury lineup in North America almost completely by the end of 2010.

-- Bringing six European small vehicles from global B-car and C-car platforms to be built in Ford's North America plants.

-- Retooling three North American truck plants to produce small, fuel efficient vehicles.

-- Building on vehicle quality that is now on par with Honda and Toyota - and that consistently is being recognized by important third-parties like J.D. Power and Associates' Initial Quality Study - driven by Ford's disciplined and standardized processes for every product.

-- Building on vehicle safety leadership - with the most U.S. government 5-star safety ratings of any auto company and recently moving past Honda for the industry's most IIHS "Top Safety Picks" - plus new smart safety features, such as the industry-first MyKey technology that limits top speed and audio volume for teens and the first forward crash-avoidance system for mainstream vehicles.

-- Supporting Ford's products with a lean, flexible global manufacturing system on par with leading Japanese and European facilities.

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Cooper Tire Announces Intent To Close Albany, Ga., Facility

/PRNewswire-FirstCall/ -- Cooper Tire & Rubber Company (NYSE:CTB) today announced the pending closure of its manufacturing facility in Albany, Ga. This announcement follows a network capacity study analyzing the Company's optimal manufacturing footprint in the United States. The impact on net profit of this closure is estimated to be $150 million to $175 million in restructuring charges, between 50 and 60 percent of which will be non-cash charges. Annual savings after implementation are estimated at between $75 million and $80 million. A portion of these savings will begin to materialize in 2009 as production from the plant is moved to other locations.

United States manufacturers have come under intense pressure in recent years from increased lower-priced imports and softening domestic demand for products. Roy Armes, chief executive officer, said, "This was a difficult decision and we regret the impact it will have on our employees in Albany and the surrounding community. The detailed study we performed was fair, objective, and conclusive that we needed to consolidate our capacity and close one of our U.S. facilities. The government and community agencies were actively engaged and involved and offered a high level of support, but the final outcome was clear."

The facility was acquired by Cooper in 1990 and employs approximately 1,400. Cooper intends to realign the mix of products at its remaining U.S. facilities located in Findlay, Ohio, Texarkana, Ark., and Tupelo, Miss., to meet customer demand.

Armes continued, "Cooper customers in the North American market must have competitive products of the highest quality from Cooper in order to grow and prosper in this intense market. This capacity rationalization will help us meet that demand. Employees in Albany were notified of the outcome and will be provided support as the facility winds down operations in the next 12 months. We appreciate the hard work and efforts that our employees have always demonstrated and will assist them where possible through this transition. Unfortunately, this was a very necessary action to position Cooper to compete in a global market environment.

"The current state of the economy and demand for our products in the United States has caused us to rethink how we could best leverage our fixed costs. We will also continue with our existing ongoing lean, six sigma, and automation initiatives to improve our cost structure throughout our operations, in addition to this capacity rationalization effort. This capacity reduction, along with improvements at our other facilities, will allow Cooper to optimize our global footprint and capitalize on current and future market opportunities."

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Suniva Opens the South’s First Solar Cell Factory

(BUSINESS WIRE)--At a ribbon cutting ceremony this morning, Suniva Inc., a manufacturer of high value crystalline silicon solar cells, officially opened the first solar factory in the Southeastern US with the help of Georgia Governor Sonny Perdue. Located in the Atlanta metro area, Suniva’s manufacturing facility will create over 100 high-paying, permanent green jobs by year-end 2009 and even more as it ramps to full production capacity in 2010.

Governor Perdue spoke at the event about the company’s importance to the state economy and Georgia’s presence on the national energy stage, “With patents developed in the laboratories of Georgia Tech, Suniva’s story is a prime example of how Georgia can lead the nation by teaming the strengths of public and private institutions,” said Governor Perdue. “Georgia made a strong commitment to the clean energy industry through its Energy Innovation Center and Bioenergy Corridor, and Suniva’s new facility makes us one of the first states in the nation manufacturing solar cell technology.”

Today’s announcement comes at a crossroads in the nation’s pursuit of new energy policies during tough economic times. President-elect Barack Obama and his transition team have discussed advancing the new energy economy as part of the US’s economic recovery plan. As a company whose major intellectual property was developed in a government-funded lab, Suniva is a stand out example of how government-backed initiatives can generate new US-based companies and facilitate the growth of renewable energy production and adoption.

Suniva’s founder and CTO, Dr. Ajeet Rohatgi, who is also the founder and director of Georgia Tech’s University Center of Excellence for Photovoltaic Research and Education (UCEP) funded directly through the Department of Energy (DOE), spoke at the event: “Though Suniva is barely a year old, in some ways today’s ceremony is twenty years in the making. My life’s work in advancing solar technologies has been made possible as a direct result of government funding and involvement with Georgia Tech. Suniva is the realization of all those years of hard work.”

In October — less than six months after announcing plans to build a manufacturing facility — Suniva completed installation of its first production line in this new facility and began shipping its proprietary ARTisun™ solar cells. Suniva’s solar cells are delivered to solar module manufacturers around the world under existing contracts worth over USD$1B.

“As the U.S. economy retools to become an international leader in the new energy economy, Suniva stands at the forefront, supplying a superior homegrown product to the international solar industry,” said John Baumstark, CEO of Suniva. “With our first factory officially open today, we are driving down the cost of solar and keeping clean energy technology and jobs in the US.”

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LG Electronics USA Opens Training Academy in Georgia; Consolidates Local Mobile Phone and Appliance Operations

/PRNewswire/ -- LG Electronics USA announced the grand opening today of the LG Training Academy in Roswell, Ga., to support LG's fast-growing commercial air conditioner business. At 16,000 square feet, this state-of-the art facility has the capability to train hundreds of engineers, contractors and technicians each month.

The city of Roswell was a natural choice for LG Electronics USA. The strategic location of the new facility places LG in a position to deliver the best hands-on product training for a region of the country with high demand for commercial air conditioning systems.

The training academy is the centerpiece of the new LG Roswell facility, which also houses the company's local operations for LG Mobile Phones and LG Digital Appliances. This location now has a total of 30 employees and plans to hire additional staff in 2009.

Michael Ahn, president and CEO, LG Electronics North America, called the new Roswell location "a symbol of LG's growth and vitality" in North America. "This is another important milestone in LG's tremendous expansion in the United States. Particularly noteworthy now during the U.S. recession is LG's investment in the communities where we live and work and our commitment to economic development and education here in the greater Atlanta area," he said.

The new academy will drive additional revenue to the City of Roswell with the use of local lodging and hospitality venues to support the influx of trainees. The academy will also partner with Atlanta-area printing and office suppliers for general business needs.

"LG Electronics' presence in Roswell shows its confidence in our workforce. LG Electronics will boost our economy through partnerships with local businesses and the use of our lodging and hospitality venues," said Roswell Mayor Jere Wood. "We look forward to working with LG as they build their commercial air conditioning business and add jobs and revenue to the city of Roswell."

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Ford Motor Company Announces it Will Re-Evaluate Strategic Options for Volvo Car Corporation

/PRNewswire-FirstCall/ -- Ford Motor Company (NYSE:F) announced today it will re-evaluate strategic options for Volvo Car Corporation, including the possible sale of the Sweden-based premium automaker.

Ford said the decision to re-evaluate strategic options for Volvo comes in response to the significant decline in the global auto industry particularly in the past three months and the severe economic instability worldwide. The strategic review of Volvo is in line with a broad range of actions Ford is taking to strengthen its balance sheet and ensure it has the resources to implement its product-led transformation plan.

"Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo as we implement our ONE Ford plan," said Ford President and CEO Alan Mulally. "Volvo is a strong global brand with a proud heritage of safety and environmental responsibility and has launched an aggressive plan to right-size its operations and improve its financial results. As we conduct this review, we are committed to making the best decision for both Ford and Volvo going forward."

Ford said the review likely will take several months to complete. In the meantime, Ford will continue working closely with Volvo as it implements its restructuring plan under CEO Stephen Odell, who was appointed to lead Volvo earlier this year.

At the same time, Ford and Volvo will continue to put in place processes that allow Volvo to operate on a more stand-alone basis in the absence of the Premier Automotive Group structure, an effort which began in November 2007 following a previous review by Ford of strategic options for Volvo.

"Outstanding safety, an increased focus on environmentally friendly vehicles and contemporary Scandinavian design will continue to be the foundation upon which we will build a strong Volvo business for the future." Odell said. "We intend to build upon our strong brand heritage and to appeal to our global customers with vehicles like the new XC60 -- the safest car Volvo has ever built. Volvo also will introduce seven low-emission models in 2009, giving us the best environmental product range in the premium segment.

"We have a strong brand presence in Europe, North America and the Asia Pacific region, and are growing in key markets such as China and Russia, where we are the leading premium brand."

Ford Motor Company, a global automotive industry leader based in Dearborn, Michigan, United States, manufactures or distributes automobiles in 200 markets across six continents. With about 224,000 employees and about 90 plants worldwide, the company's core and affiliated automotive brands include Ford, Lincoln, Mercury, Volvo and Mazda. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford's products, please visit www.ford.com .

Safe Harbor

Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts and assumptions by management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated. We cannot be certain that any expectation, forecast or assumption made by management in preparing these forward-looking statements will prove accurate, or that any projection will be realized. More detailed information about these and other factors that could affect future results is contained in our filings with the Securities and Exchange Commission. Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.

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Georgia's Forest Industry Contributions Recognized

Governor Sonny Perdue has proclaimed October 19-25 National Forest Products Week,
highlighting the Georgia Forestry industry’s $28.5 billion impact on the state in 2007. According to statistics released by The Georgia Institute of Technology, the Forestry industry also provided
employment for more than 141,000 Georgians and compensation of $6.7 billion to employees and proprietors.

“Our state is one of the nation’s leading pulp and paper producers,” said Nathan McClure, Forest
Marketing Director for the Georgia Forestry Commission. “While the building products industry is being affected by downturns in real estate, the outlook is for positive future growth in relation to bioenergy.”

According to the report, the “Manufactured housing” economic impact sector posted the greatest
loss between 2006 and 2007 at 14.7%. “Pulp and Paper” and “Packaging” were two sectors that
experienced gains during 2007, reflecting increases in wood products exports.

Georgia ships more than $16 billion of forest products, such as lumber, paper, paperboard and
allied products every year. The report shows local economies of 37 Georgia counties are “very” or
“critically” dependant on the forest manufacturing industry. The Forest Industry ranks second in Georgia behind food processing when considering compensation to employees and proprietors. Forestry ranks third behind textiles and food processing when considering number of employees.

“Construction is continuing on the state’s first commercial scale pine-to-ethanol production plant in Soperton,” said McClure. “Plans have also been announced to build five pine-to-electricity plants in the state. Our rural forestry economy can be expected to improve as more investments are made in Georgia’s Bioenergy Corridor.”

The complete 2007 Economic Impact of Forest Products Manufacturing in Georgia report can be
viewed at GaTrees.org/Forest Marketing/Doing Business in Georgia.

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Cruise Industry Spending Tops $676 Million, Generates 9,147 Jobs in Georgia in 2007

PRNewswire/ -- The North American cruise industry contributed $676 million in direct spending to the state of Georgia's economy in 2007, a 1.4 percent increase over the previous year according to a recently released study commissioned for Cruise Lines International Association (CLIA).

This spending, in turn, generated 9,147 jobs paying $437 million in wage income. This represents 3.6 percent of the industry's total U.S. direct expenditures, ranking the state seventh in the nation in terms of cruise industry spending. State business sectors most impacted by the industry's direct spending included: business services and government, $327 million; manufacturing, $177 million; and information services, $63 million.

With no direct cruise operations, Georgia is a major source market for cruise passengers. Resident cruise passengers totaled 337,000, 3.7 percent of U.S. resident passengers. The state also supports the cruise industry with a wide range of goods and services.

"The cruise industry continues to make an impressive contribution to the economic well-being of the country and Georgia plays a significant role as one of the leading beneficiaries of industry spending and job creation," said Terry L. Dale, president and CEO of CLIA.

The Contribution of the North American Cruise Industry to the U.S. Economy in 2007 study was conducted by Business Research & Economic Advisors (BREA) in Exton, Pa., and analyzes the economic benefits to the U.S. economy from five principal sources: spending by cruise passengers and crew; shoreside staffing by cruise lines in U.S. cities; expenditures by cruise lines for goods and services; U.S. port services; and vessel maintenance and repair.

Among other key Georgia findings:
-- Tourism-related businesses such as tour operators, airlines, hotels,
restaurants and providers of ground transportation were the
beneficiaries of 20 percent of the cruise industry spending, receiving
$134 million.
-- Another $166 million was spent with businesses in the following
sectors: food processors, computer and electronic equipment
manufacturers, advertising agencies, insurance companies and
management and technical consultants in the non-manufacturing sector.
-- Direct expenditures in Georgia also impacted such industries as
telecommunications, financial services, software publishers and
textile and apparel manufacturers.


Nationwide, the North American cruise industry continued to have a significant and growing impact on the U.S. economy in 2007, positively affecting every state in the country. Cruise line and passenger spending generated a total of $38 billion in gross economic output, a 6.4 percent increase over 2006, and generated 354,700 American jobs paying $15.4 billion in wages and salaries. Direct spending by cruise lines, their employees and passengers totaled $18.7 billion.

The full economic study and summary can be downloaded from CLIA's Web site, www.cruising.org .

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Military training device supplier to expand in Eastanollee

Combat Training Solutions, which manufactures simulated explosives for the military, announced today that it plans to add more than 30 jobs and invest $1 million to expand in Stephens County.

“Helping entrepreneurial companies expand is an important part of our mission,” said Ken Stewart, commissioner of the Georgia Department of Economic Development. “We are especially proud that Combat Training Solutions is not only growing our economy, but also supporting our troops.”

Combat Training Solutions, founded in 2005 in Stephens County, evolved from a recreational paintball company into a full-fledged defense contractor. With an extensive line of military and law enforcement training products, CTS’s proprietary systems allow the trainee to be in direct contact with the explosion effect without injury. This unique feature is the driving reason for its extensive usage by U.S. and allied militaries around the world.

CTS has purchased a 6,000-square-foot building on close to seven acres at the Meadowbrook Industrial Park in Stephens County. The company expects rapid growth as it continues to add to its product line and service offerings.

“This move meets an immediate need in our manufacturing and engineering operations while the additional acreage permits rapid expansion as new contracts materialize,” said Nathan Brock, president and CEO of Combat Training Solutions.

“We appreciate Combat Training Solution’s additional investment in our community and the additional jobs they will provide for our people,” said Bob Defenbaugh, chairman of the Stephens County Development Authority. “We’re proud of their accomplishments and will continue to support them and assist their growth. Combat Training Solutions is a great example of the entrepreneurial spirit of our people and the talent that we have right in our own back yard.”

Suzanne Browne was project manager for GDEcD.

Combat Training Solutions, Inc. (CTS) is the leading provider of innovative non-pyrotechnic Improvised Explosive Device (IED) simulation products and integrated solutions for education, training and operations. Based upon a legacy of non-pyrotechnic design achievements, CTS has successfully adapted its technologies to national security, defense and law enforcement organizations across the U.S. and abroad. CTS continues to deliver on its mission to design, manufacture and integrate the most advanced simulators and training devices available today to better prepare war fighters for battle and help win the war on terror.
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Westmoreland: Stimulus Requires Pro-Growth Policies

U.S. Rep. Lynn Westmoreland expressed his support last week for the Republican Study Committee’s pro-growth economic package as the best means to stimulate our nation’s sagging economy.

“Our economy has suffered some serious shocks, from the housing market problems to drops in the stock markets, at the same time that the dollar isn’t going as far for American families at the gas pump or the grocery store,” Westmoreland said. “Now is a great time for this series of targeted tax cuts that will spur consumer spending and encourage businesses to continue to invest, expand and create new jobs.”

Highlights: The Economic Growth Act contains four main provisions, as follows:

1) Full, Immediate Expensing. The bill would allow all businesses to immediately expense — or fully deduct on their tax returns — the costs of assets (including buildings) they purchase for their business in the year that they buy such assets (“Section 179” expensing). Under current law, businesses can only take limited deductions in pieces, over several years. By uncapping and accelerating the expensing, this provision would encourage the purchase of assets with which to grow a business.

2) Significant Reduction in the Top Corporate Tax Rate. The bill would immediately cut the top corporate income tax rate from 35 percent to 25 percent, aligning it with the average rate in the European Union. By allowing businesses to keep more of the money they earn, this provision would encourage the expansion of businesses, the hiring of more workers and an acceleration of investment, while making American companies more competitive internationally.

3) End the Capital Gains Tax on Inflation. The bill would index for inflation the cost basis used when calculating the capital gains tax on assets acquired before the end of 2008. Under current law, the capital gains tax is based on the difference in the original purchase price of the asset and the sale price of the asset. However, some of this difference, or “gain,” can be attributed to inflation. By effectively reducing the amount of a gain that is taxable, this provision would encourage the movement of capital in 2008 and spur voluminous economic investment.

4) Simplify the Capital Gains Rate Structure. The bill would allow corporations to benefit from the 15 percent capital gains rate. Under current law, individuals pay a top capital gains rate of 15 percent, but corporations are subject to a 35 percent top rate. By encouraging corporations to sell unwanted assets, this provision would unleash funds and materials with which to create jobs and grow the economy.

“We all like to think that Washington can flip a switch and help our nation avoid an economic downtown,” Westmoreland said. “Fact is, we have a strong, dynamic economy that doesn’t turn on a dime. I’m sure that in coming weeks, Congress is going to take act to kick start the economy as much as possible but our best hope is too strengthen the fundamentals of our economy even more to assure steady, long-term growth. That’s what the Republican Study Committee’s Economic Growth Act provides and I hope that we’ll be able to incorporate these ideas into any stimulus package.”

The Republican Study Committee is the caucus for House conservatives. The RSC’s pro-growth plan mirrors proposals put forth by Americans for Tax Reform.

Small Businesses Lead U.S. Growth

12/20/07 Small businesses continued to lead growth in the U.S. economy in 2006, according to a report issued today by the Office of Advocacy of the U.S. Small Business Administration.

“Today’s report shows that overall, small firms continue to drive a resilient U.S. economy,” said Advocacy Chief Economist Chad Moutray. “In releasing this annual small business research report, we are pleased also to showcase new research by economists in the field of small business and entrepreneurship.”

Moutray released the report at a December 19 meeting of the Rotary Club of Washington, DC. The study, The Small Business Economy: A Report to the President for 2007, is Office of Advocacy’s annual report on the state of small business in America.

The report reviews the economic environment for small businesses in the year 2006, including the financial and federal procurement marketplaces. New research focuses on minority- and veteran-owned businesses, social entrepreneurship, and pre-venture planning. Other chapters and appendices provide data on small business and an update on Office of Advocacy initiatives.
The Office of Advocacy, the “small business watchdog” of the federal government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats, and it funds research into small business issues.

For more information and a complete copy of the report, visit the Office of Advocacy website at www.sba.gov/advo. Print copies are also available upon request to the Office of Advocacy (202) 205-6933.