The maker of Sea Ray, Bayliner and Maxum pleasure boats made a big splash in mid-June when it revealed its intentions to move its headquarters from the Chicago area to downtown Knoxville, Tenn.
The Brunswick Boat Group (BBG), a unit of Brunswick Corp., plans to relocate 75 employees and hire about 25 additional positions for the new facility.
"The mission of the BBG is to be the best global recreation boat business in the world," said Dustan E. McCoy, president of the Lake Forest, Ill.-based Brunswick Boat Group. "This includes providing a full line of services and products and leveraging all appropriate activities. Bringing the senior executive management of the BBG together in one location is key to achieving the group's goals."
The BBG's relocation plan will allow for the consolidation of many of its administrative, finance, legal and other support functions that previously had been handled by various divisions.
The relocation represents a logical move for the company, which already has three manufacturing plants, as well as the world headquarters of the Sea Ray Division, Boston Whaler and Baja boat brands located in the Knoxville area.
"Much of the infrastructure for the BBG is already located in Knoxville, including our information technology, finance and legal functions," McCoy said. "As a result, locating in Knoxville will result in minimal disruption to our ongoing activities. Its proximity to several of our manufacturing plants and the quality of life Knoxville provides our employees made this location ideal."
Once the company completes the relocation project sometime this fall, more than 1,600 people will be employed by BBG in East Tennessee.
Shipping Advantages
Thanks to the FedEx hub in Memphis, the city is an eternal favorite for businesses that rely on consistent and timely shipping methods.
While manufacturing companies may come to mind as the companies best poised to take advantage of the city's transportation assets, other industries are also reaping the benefits.
Cell Genesys, a manufacturer of patient-specific lung cancer vaccines, is an example of a high-tech company that is dependent on quick air transport for its success.
Earlier this year, the innovative company leased a 35,000 square foot facility in Memphis, which produces Cell Genesys' patient-specific GVAX(r) lung cancer vaccines for both Phase III clinical trials and potential market launch.
The facility is an important complementary element to the company's two other manufacturing sites: a 41,000 square foot facility under construction in Hayward, Calif., for cell-based products, and an existing 48,000 square foot facility in San Diego for viral-based products.
"Our Memphis facility is the remaining component of the manufacturing infrastructure we need to implement our plans for multiple Phase III trials and future potential product launches," said Joseph J. Vallner, Ph.D., president and COO of Cell Genesys. "The site will enable the rapid production and shipping of patient-specific vaccines and will complement the centralized production of non patient-specific, 'off-the-shelf' products, which will be carried out in our Hayward facility."
Tennessee is also a prime location for manufacturing companies that need access to their large markets, many of which are located in the eastern half of the United States.
Delta Faucet cited market advantages when it finalized plans to build a new central distribution center at its existing manufacturing plant in Jackson, Tenn.
"Our decision to locate the facility in Jackson was due to its central location in relation to many of our large markets," said John Singleton, Delta's vice president of manufacturing. "This allows for shorter shipping lead times, a big benefit for our customers."
A mixture of new and existing employees will staff the more than 250,000 square foot distribution center, which is expected to be running sometime in the second half of 2003.
Incentives Take on Many Forms
Most often, grants and other financial assistance come to mind when one thinks of incentives for businesses. Certainly, Tennessee can deliver when it comes to financial incentives.
UnumProvident Corp. was a recent recipient of state funding, when it received two new state grants for its $68 million downtown Chattanooga expansion. One grant will be used for training, and an infrastructure grant will be used to help relocate underground cables.
UnumProvident, the nation's largest disability insurer, said it will bring more than 500 new jobs to the city during the next two years, and so the company is embarking on a new $56 million office building project.
The availability of ample and affordable real estate is another incentive for companies that are growing.
In Clarksville, businesses will find large tracts of land in the Clarksville-Montgomery County Corporate Business Park. The park offers prime highway-accessible property that is suited for businesses, including manufacturing, distribution, professional office space and retail development.
And West Tennessee boasts that if your business has big needs, the region has sites that can meet your needs.
The West Tennessee Industrial Association is the gateway to a number of "megasites." Industrial parks with prime industrial land are located in Memphis, Millington, Somerville and Jackson -just to name a few.
Yet for other companies, a quality work force is a prime reason to keep business going in an existing location.
Chase Scientific Glass Inc. announced in July that it had expanded its facilities, from 220,000 square feet to 230,000 square feet, in the Roane County Industrial Park.
The company plans to hire 23 additional employees to accommodate the expansion, which will include the addition and relocation of office and manufacturing space and relocation of the maintenance facilities.
"It's a good part of the country to make products and do business," said Steven Munzer, president of Chase Scientific Glass.
Rachael Hedgcoth is Senior Editor of Expansion Management magazine and can be reached at rhedgcoth@penton.com.
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