Economic Incentives for Georgia Manufacturers
May 01,2017
Doing business in Georgia comes with a perk or two, especially for manufacturers. Manufacturing companies can operate in the state at a lower cost than other states, make leaps in innovation and secure (many) business incentives. Facts Manufacturers in Georgia account for over 8% of the state’s workforce and 11.06% of the state’s total output. With access to the Port of Savannah, this industry is helping drive the state’s economy in exports. In 2016, Georgia exported $32.77 billion in manufactured goods. While the Port of Savannah plays a major role in the success of Georgia’s manufacturers, so do the state’s economic incentives. Georgia’s pro-business environment allows manufacturing companies to operate at lower costs compared to neighboring states and provides access to global markets through the Port of Savannah, along with a smart, well-trained workforce. Tax Exemptions for Manufacturers Manufacturers are exempt from paying sales tax on numerous items. In the...
Georgia’s October Manufacturing Activity
Nov 01,2016
Georgia’s Purchasing Managers Index (PMI) — a reading of economic activity in the state’s manufacturing sector — increased by 4.1 points in October, to 53.5. Gains in new orders and employment offset the drop in production. The Southeast and National PMI remain above the 50 point threshold.The Purchasing Managers Index (PMI) Report is underwritten by the Manufacturing and Distribution Group of Smith & Howard, a top Atlanta CPA firm with a focus on serving manufacturing businesses, and is produced monthly by the Econometric Center at Kennesaw State University.Some general remarks from the October respondents:"Outlook is very good for balance of the year.""Very optimistic on business levels in 2017.""Normal leveling off in demand this time of year."Other highlights of the October PMI include:New orders were up 3.1 points, to 50.0Production was down 3.3 points, to 52.9Employment was up 11.9 points, to 58.8Supplier delivery time was down 3.5 points, to 55.9Finished inventory...
The 2016 GMA Manufacturing Summit: A Huge Success
Nov 01,2016
Smith & Howard was a proud sponsor of this year's Georgia Manufacturing Alliance (GMA) Summit, held October 26 at the Galleria in Atlanta, Georgia. The Summit featured a great lineup of speakers and presentations including the two keynote speakers, Kathleen Edge of Southwire Company LLC and Steve Hillis of Beaulieu Commercial & Aqua Hospitality Business. In addition, our very own Tim Howe presented to c-level executives on how sales and use tax can impact a company’s bottom line. The power packed agenda enabled attendees to break out in various training sessions to discuss challenges faced by manufacturers in Georgia. Many thanks to Jason Moss and the GMA team for hosting a great event for Georgia’s manufacturing community! To learn more and to get involved with the Georgia Manufacturing Alliance, click here.  [[{"type":"media","view_mode":"media_large","fid":"2176","attributes":{"alt":"","class":"media-image","height":"402","style":"margin: 15px;","typeof":"foaf:Image","width":"480"}}]]
From Offshoring to Reshoring – Trends in U.S. Manufacturing (Part II)
Oct 10,2016
In our September issue, we examined the origins and results of offshoring U.S. manufacturing jobs. In this issue, we continue our two-part series “From Offshoring to Reshoring – Trends in U.S. Manufacturing,” with a closer look at the more recent trend of reshoring—what’s driving it, and what the future may hold for Georgia and the nation. The Move to Reshoring in America Difficulties began to emerge after years of offshoring. The labor price gap between manufacturing operations in the U.S. and those in foreign countries began to close, while the cost of labor in China has increased 320% since 2000—and it is predicted to continue to climb at roughly 18% per year. By comparison, the average cost to manufacture goods in the U.S. was only 5% higher in 2015. Rising global fuel prices raised shipping costs, making the reasons to offshore less pressing, especially in light of the relatively lower...
Georgia’s July Manufacturing Activity
Aug 01,2016
Georgia’s Purchasing Managers Index (PMI) — a reading of economic activity in the state’s manufacturing sector — increased 3.2 points during July to 52.5. The most-improved area was employment; up 19.0 points in July. The Purchasing Managers Index (PMI) Report is underwritten by the Manufacturing and Distribution Group of Smith & Howard, a top Atlanta CPA firm with a focus on serving manufacturing businesses, and is produced monthly by the Econometric Center at Kennesaw State University.Some general remarks from the July respondents:"Cautiously optimistic.""Business continues to be great.""Right now adding good employees is a challenge for us and our venders. This affects deliveries all around."Other highlights of the July PMI include:New orders were up 0.2 points, to 46.9Production was up 6.5 points, to 53.1Employment was up 19.0 points, to 65.6Supplier delivery time was down 10.2 points, to 53.1Finished inventory was up 0.4 points, to 43.8Commodity prices were up 8.5 points, to...
Manufacturer’s Purchasing Manager’s Index Report: 2016 Mid-Year Review
Jul 05,2016
Each month in Manufacturing and Distribution Matters, we provide monthly PMI updates to our readers. This month, we wanted to bring you a “big picture” look back at the first half of 2016. Below, you’ll find links to two infographics summarizing the last 6 months of PMI data. Click the images to access a full-size PDF file.    
Georgia Plays Key Role in the Large-Scale Manufacturing of Cell-Based Therapeutics
Jul 01,2016
Two key Georgia technology leaders are playing a pivotal role in the advancement of the large-scale manufacturing of cell-based therapeutics that can treat a wide range of serious illnesses. The Georgia Institute of Technology (Georgia Tech) – a fellow Midtown neighbor – and the Georgia Research Alliance (GRA) have joined forces to launch the National Cell Manufacturing Consortium (NCMC), an industry-academic-government partnership that recently released the National Roadmap for Advanced Cell Manufacturing. The roadmap was announced June 13 at the White House Organ Summit.To learn how Georgia is positioning itself to be at the forefront of this emerging growth industry with revenues over $1 billion, read the full article, “Roadmap for Advanced Cell Manufacturing Shows Path to Cell-Based Therapeutics.”For information on Smith & Howard's manufacturing accounting services, please contact us at 404.874.6244 or simply fill out the form below. 
Georgia Provides New Grants for High-Demand Manufacturing Jobs
Jun 01,2016
As jobs in the manufacturing industry have become more advanced, there is a growing demand for educated workers to fill open jobs in Georgia. In May, Gov. Nathan Deal approved a budget that includes tuition money for students working in high-demand fields, including industrial maintenance. The Strategic Industries Workforce Development Grant is open to technical college students pursuing a certificate or diploma in high-demand industries. You can learn more about the grant in this article or visit the Technical College System of Georgia's website. 
Foreign Manufacturing Activity in Georgia Shows Increase
Nov 02,2015
According to Don Sabbarese, Professor of Economics at Kennesaw State University, "New orders in 2015 have slipped since the first quarter. Production, employment and capital spending have not shown a similar pattern, which poses the question of whether a weakness in new orders will lead to a weaker trend for the other components. Other economic data including the Georgia and National PMIs suggest that might be possible." The Georgia International Business Index (GIBI) Report is underwritten by the Manufacturing and Distribution Group of Smith & Howard, a top Atlanta accounting firm, and is produced quarterly by the Econometric Center at Kennesaw State University.    The GIBI increased by 1.3 points from 64.8 to 66.1 in the third quarter of 2015.   Highlights of the second quarter GIBI include:  New orders were down 9.1 points, to 50.0 Production was up 3.2 points, to 71.4Employment was up 0.6 points, to 64.3Capital Spending increased 10.4 points, to 78.6Georgia International Business Index provides a snapshot of foreign manufacturing business activity in Georgia. Data on new...
First Quarter 2015 GIBI Report Shows Increase
Apr 21,2015
The Georgia International Business Index (GIBI) Report is underwritten by the Manufacturing and Distribution Group of Smith & Howard, a top Atlanta accounting firm, and is produced quarterly by the Econometric Center at Kennesaw State University.    The GIBI increased 14.8 points, from 47.7 for fourth quarter 2014 to 62.5 for first quarter 2015 based on increases in all underlying variables.  Highlights of the first quarter GIBI include:  New orders were up 10.5 points, to 65.0 Production was up 19.1 points, to 60.0Employment was up 9.5 points, to 55.0Capital Spending increased 20.0 points, to 70.0Georgia International Business Index provides a snapshot of foreign manufacturing business activity in Georgia. Data on new orders, production employment and capital spending are collected and tallied into a diffusion index compiled from responses to the question: did your company experience an increase, decrease or no change during the past quarter? A GIBI reading above 50 indicates that more respondents are reporting increases than decreases.40% of foreign-funded manufacturers reported that their exports this...

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