The Lowcountry and Southeast Georgia are experiencing a surge in light industrial construction as businesses are drawn to the region’s strategic location, growing population and available land.
The significant growth in Southeast Georgia is partially due to its proximity to major transportation hubs, including the Port of Savannah and Savannah-Hilton Head International Airport. The Port of Savannah, now the third busiest port in the nation, offers convenient access to global markets. Additionally, the Hyundai Motor Group Metaplant in Bryan County, 25 miles from Savannah, has been a game changer, spurring light industrial growth to support the operation and the improvement of the I-95/I-16 interchange. As a result, the region is an attractive destination for companies looking to establish or expand their industrial operations.
The region boasts a robust transportation infrastructure featuring well-connected railways, interstates and secondary highways that link it to key markets. This network facilitates seamless import and export of goods while granting businesses access to a vast customer base.
CBRE, the global leader in commercial real estate services and investment, released its most recent report on construction in Southeast Georgia in March 2023. The report found substantial growth in construction activity across all major sectors in the region. The report also predicted that total construction spending in Southeast Georgia would reach $12.5 billion in 2023, an increase from $11.5 billion in 2022. Notably, the industrial sector led the way with expected spending of $4.5 billion in 2023, up from $3.5 billion in 2022.
The report also highlights the challenges developers face in the region due to rising construction materials and labor costs. Nonetheless, strong demand for space is expected to offset these challenges and maintain construction activity in the near future.
Architects are seeing an increased demand for their services from a diverse client base of businesses experiencing enough growth to require new or additional space. Two worth noting are C&H Precision Weapons, a firearms parts company in Richmond Hill, Georgia, and the Savannah location of Tennessee-based TCW trucking.
C&H designs and manufactures nearly 1,000 parts for the firearms industry. Due to growing demand in its market and needing room to expand, the company has swelled from five employees in 2019 to more than 60 today.
“We have outgrown not one, but two of the three buildings we own. Expanding into the third wasn’t an option. We looked at other properties and locations as we have grown but had not found a property large enough with the correct zoning,” said C&H owner Buck Holly. “As we continued to grow, we knew whatever we did, it had to be able to grow with us, so we came up with a plan to build something that will allow that.”
The solution puts the manufacturing center, retail store, gun range and café under one roof. It also demonstrates how a company’s need to expand, when met by the proper conditions of available land, a thriving design and construction community, and a business-friendly legal and regulatory environment, leads to a stronger business outcome.
“Putting it all in one location seemed like a natural addition to the plan: a range to teach, learn, practice and demonstrate right where you buy,” Holly added.
Focusing their business on a specialty spurred much of C&H’s need to expand, but finding a niche isn’t the only thing that requires new construction. TCW Trucking had its cross-docking facility expanded and upgraded in 2016. Due to their steady business practice and the organic growth of the Port of Savannah, they have already outgrown the entire space.
“I remember when we started in this building in 2016, we said we would never fill this place up. Well, we have, and now we need double the space,” said TCW Vice President-Eastern Region Rob Stephenson. “We continue to grow our truck fleet and maintenance space, which includes more support staff, not just drivers.”
Aside from growth at the port, Stephenson praises the Chatham Economic Development Authority for bringing economic opportunity and new businesses and industry to the area. There is a ripple effect that often leads to more opportunities for trucking and transportation businesses. The value-added proposition is undeniable.
“I’ve been in this business in Savannah for 18 years, and it is amazing how it has grown,” Stephenson added.
To keep up with growth, an additional factor to consider is the necessary labor pool to fill these jobs. A positive contribution to the surge in Southeast Georgia’s population increase is its appealing climate, stunning natural landscapes and abundant job opportunities. This population increase helps keep pace with the growing need for light industrial jobs in newly built spaces as businesses aim to establish themselves closer to their customers and suppliers. In addition, the region is home to several technical colleges and universities which produce skilled graduates that businesses require.
The pro-business climate in Southeast Georgia is also a significant factor in the rise of light industrial construction. The state offers several tax breaks and incentives for businesses and has a relatively low cost of doing business, making the region attractive for companies to locate their light industrial operations.
Other reasons for the surge in light industrial construction in Southeast Georgia include:
- Abundant available land in Southeast Georgia, making it a cost-effective place to build light industrial facilities.
- The growth of e-commerce and the new Hyundai plant is driving demand for warehouses and distribution centers.
- Southeast Georgia is home to increasing manufacturing industries, creating new jobs.
- Specific examples of light industrial projects that have been completed or are underway in southeast Georgia include:
- The Hyundai electric vehicle plant in Bryan County, a $5.5 billion project that will create 8,100 jobs and is scheduled to open in 2025.
- Amazon’s fulfillment center in Effingham County, a 1.5 million-square-foot facility scheduled to open in 2024. It is expected to create 500 jobs.
- ProLogis Industrial Park in Pooler, Georgia, a 1,000-acre park expected to attract various light industrial businesses. The location is already home to several companies, including Home Depot and Coca-Cola.
- West Chatham Commerce Park, a 500-acre park near the Port of Savannah. The site is expected to attract businesses involved in shipping and logistics.
- Effingham County Business Park, a 1,000-acre park located near I-95. It is expected to attract businesses involved in manufacturing and distribution.
The increasing prevalence of light industrial construction in Southeast Georgia brings numerous benefits to the region. These projects generate temporary construction employment and new full-time opportunities, contribute to tax revenue and act as a catalyst for attracting new businesses. This positive trend directly impacts the economy of Southeast Georgia, ultimately leading to an improved quality of life for its residents.
Light industrial construction can be a great way to invest in or grow your business in the Lowcountry.
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