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Georgia: A Moving Argument

Low costs and training program make Georgia enticing.

  [ 5/1/2000 ]  By: Kerrie Bertz   Print This Article  Reprint/License This Article  E-mail This Article To A Friend  
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Muskin Leisure Products was moving. The maker of above-ground pools and accessories had outgrown its production facility, but more importantly, labor costs were too high.

Up and down the East Coast, Muskin executives studied labor-related factors such as workers' compensation rates, unemployment insurance costs and the rate of unionization.

In Georgia, Muskin Leisure found appealing solutions to its labor issues. First, Georgia is a right-to-work state with very low union membership and work stoppage rates. Workers' compensation insurance rates in Georgia have decreased by 30 percent since 1996, according to state figures.

Unemployment insurance in Georgia averages slightly above 1 percent, which translates to about $98 per employee. After three years, the rate is re-evaluated and adjusted (up or down) based on the company's employment history.

"Another state was on the top of the cost list," said Jean-Pierre Parent, executive vice-president and general manger for Muskin. "I had been touring the other state with officials, and they dropped me off at the Savannah (Ga.) airport on Thursday night.

"On Friday I was going to see what the Georgia economic development department had to offer."

Making an impression

What Parent saw on that tour of Georgia changed his mind.

"The agenda of that one day was incredible - I heard and saw more during one day in Georgia than a week in the other state," said Parent. "I was briefed on the state's offer. I was briefed on the work force. I was flown to five sites, and each site had a chamber presentation. It was unbelievable."

In the end, the attention and professionalism shown by the Georgia Department of Industry, Trade and Tourism secured Muskin Leisure's decision to invest $6 million in Midway, in southeast Georgia.

"Really, the incentives in Georgia weren't as good as the incentives elsewhere, but the support outweighed it," said Parent.

In August 1999, the company began renovating a 50,000 square foot building and constructing an additional 140,000 square feet of space to the facility. In November of 1999 construction was complete, and the plant was fully operational in January.

Getting your money's worth

Muskin is just one example of Georgians pulling together to do whatever is necessary to make a project happen - whether it's local community officials in their recruitment efforts or a work force of hundreds putting in extra time to fill an order.









 

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