Why Do Advanced Manufacturers Choose Tennessee?

Excellent transportation infrastructure and high quality of life are among the key reasons companies are investing in Tennessee.

By Bill Lewis on November 17, 2023

Eastman

Communities across Tennessee stand out when advanced manufacturers are looking for the perfect location to invest, employ innovative technology and create local jobs. 

Maury County is well known as a leader in the transition to electric vehicles. Ultium Cells, a joint venture of LG Energy Solution and GM, announced a new $2.3 billion manufacturing facility in 2021, built to supply batteries for electric vehicles at GM’s Spring Hill plant. Since then, the company also made plans for an expansion project, which represents an additional $275 million investment. 

Ultium Cells

Investing in Tennessee

In Jackson, Georgia-Pacific is investing $425 million in a new, state-of-the-art manufacturing facility. The 900,000- square-foot plant will employ about 220 people and will significantly increase production of Dixie-brand disposable tableware products. It is the first new Dixie plant built by the company since 1991. 

In the Knoxville region, more than 46,000 people work in manufacturing, and the sector contributes $7.1 billion to Knoxville’s gross metro product. 

“Logistics is certainly a key factor. Sitting at the intersections of Interstates 40 and 75, Knoxville is within a day’s drive to 65% of the U.S. population,” says Doug Lawyer, vice president of economic development for the Knoxville Chamber of Commerce. 

Another key feature is the region’s technology and research assets such as Oak Ridge National Laboratory’s Manufacturing Demonstration Facility and the University of Tennessee’s Machine Tool Research Center.

Knoxville is also home to the Institute for Advanced Composites Manufacturing Innovation (IACMI), which is leading research, workforce training and demonstrations around advanced materials, composites and additive manufacturing. 

Oak Ridge National Laboratory

Location Key in Tennessee

Notable recent recruitment or expansion successes in Knoxville include Innovate Manufacturing, a blow molding operation that recently added 90 production jobs. Kelvion, a manufacturer of commercial-scale heat exchanger systems, added 75 jobs. ATC Drivetrain added more than 200 jobs to its automotive transmission refurbishing plant. 

In Maury County, more than 20% of the workforce is engaged in manufacturing, which is almost three times the national average. “So, there is a lot of ‘know-how’ ingrained into the community,” says Travis Groth, vice president of economic development for the Maury Alliance. 

Maury County is located near the intersection of I-65 and I-840, allowing quick access in all cardinal directions and is located between Nashville and Huntsville, two of the hottest markets in the United States. 

Nashville International Airport and downtown Nashville are less than an hour away, and the county is serviced by two rail companies and a local airport. 

Businesses can reach 70% of U.S. markets within one day by truck, and air travelers can get back and forth in a single day to many of those markets. That strategic location supports a unique labor shed that allows employers to draw both professional and production talent from a single location. 

“From a quality-of-life perspective, we like to think of ourselves as a ‘Goldilocks’ community. Not too big, but not too small. Not too close to the big city, but not too far away,” Groth says. 

“Especially post-COVID, a lot of people are searching for places with a real sense of community where they can breathe, feel relaxed and grow their family. But they still want proximity to a major metro area with the amenities, opportunities and ease of travel those afford. They are searching for places exactly like Maury County, and they are finding it.” 

Jeff Adkins

Poised For Growth in Tennessee

Maury County has consistently been one of the top five fastest-growing counties in Tennessee and among the top 5% of the fastest-growing counties in the United States. 

“From an employer’s perspective in a tight labor market, you are positioning yourself for success by locating in a place that talent is choosing to move to of its own accord,” he says. 

In the past year, the Greater Jackson Chamber’s Team Madison County experienced investment at a level not ever achieved before, with more than $656 million invested by new and expanding companies in Jackson and Madison County. Those companies created more than 857 new jobs for area residents. 

“When we learned Georgia-Pacific chose Jackson for its Dixie facility, we asked what made us stand out. Several things were mentioned by the team, including robust and reliable utilities, a pro-business environment, our experienced workforce with a regional draw and the well-vetted site,” says Mandy White, chief economic development officer for the Greater Jackson Chamber. 

“But in the end, the company mentioned our experienced team and the relationship they had built with us throughout the recruitment process.” White says. “At the end of the day, you do business with people you know, like and trust, and we established that rapport with the Georgia- Pacific team early on in the process.”