by Neel AREA CHAMBER of COMMERCE belong engage lead prosper nashville notes Special Economic Edition ‘APRIL 2009 Nashville well-positioned for quick recovery Despite the national recession, the Nashville region continues to exhibit areas of strength that have made itresilient through past economic peaks and valleys. Industry diversity and a strong class of entrepreneurs have, time and again, helped the region achieve employment gains and income growth far above national averages, particularly as recessions are winding down andl recovery has commenced. Nashville gains more jobs, more quickly In an economic recovery the Nashville area has consistently outperformed the US. in annual net job gains across business cycles since the 1970s. Nashville typically emenges more quickly and with higher percentage growth in jobs than the nation. In this graph, red vertical lines indicate recessionary periods. ‘Graph 1, Joo Orange 1973-2008 More diversity strengthens competitiveness The Nashville-area economy has changed significantly over the past 30 years, Today, the region increasingly looks to emerging service sector industries for growth. Manufacturing was a dominant force in many Nashville-area counties as recently as the 1970s, While manufacturing remains a vital force in the regional economic base, many key Nashville sectors - health care, tourism, education - are les tied to changes in the national business cycle. Graph 2, Manufacturing, Thea and Now (Gap 1: Nasvile MSA and USS, Annu Percentage Jeb Change, 1973-2008 10 i i = Nashville MSA sus. Graph 2: Manufacturing, Then and Now (Cheatham Davidson Dickson Roberson Rutherlord Sumner Willamson Wison 50% 49% «AB BTM. 7% 22% = 47% im Davidson Dickson Robertson Rutherford Surmner Wiliameon Wilson 40% 30% 2008 ™% a% —-H% M1, * In 1975, sho ght Nose MSA cous a 40 pacet moro al workesin manag *1n 208 ery to the at courts ho 40 pron a re al wants n mana,Unique service industry mix keeps economy stable ‘The diversity of the Nashwille-area economy is one of the significant hallmarks ofits success. The rapid transformation of the industry mix continues, with strong representation in leading service industries - health care, business and professional services, hospitality, information technology and others. ap 5 Senco Eoneny Goth Entrepreneurs set Nashville apart, help recovery ‘The Nashville area has a uniquely high level of entrepreneurship - 216 percent of all workers. The level of total proprietor employment and income exceeds that of the nation and of many major metro areas in the US. The ability of Nashville's selfemployed residents to be nimble and innovative ‘has been a major factor in the region consistently ‘emerging more quickly and strongly from economic recessions since the 1970s. ap, Pop Epler cme Nashville housing market resilient The Nashville housing market has remained remarkably resilient since 2007. Strong employment and income gains in recent years, coupled with moderate home price increases, have helped keep housing prices relatively stable and have lessened the financial strain on consumers compared to other US. markers. Groh 5, Nostie Hosing Markt Se 6h US Dosen Lic Mme La We ect 601.85 Coasts ph 5 oan toe 6p 5 ee 6a Gam taeda Graph 3: Nashilearea Senice Economy Dominance Growing 700,000 _—_____ pie nue a oat a a 100,000 se Sendoes, Oe, Agicutre, Mring, Fishing, Forestry ‘Finance, Insurance, and Real Estate ‘Foal and Wholesale Trade ‘Transportation and Public Utes sMtanufaciing sConsinton Graph 4: Proprietor Employment and Income as Star of Total 5% 10% aoe "= Proprietor Employment = Proprietor Income (Graph 5: Neshvile Housing Market, 2000-2008 16,000 14,000 — So , ~~ 9 tooc0 ao ls th 1,000 4 4,000 = ill 2000 2001 2002 2003 2004 2005 2006 2007 2008 s=Closings stinventory —Median Price 250,000 ‘150,000 $100,000 $50,000 0