The inaugural Rock ‘n’ Roll Savannah Marathon had an estimated $32 million economic impact.

Many downtown businesses, particularly retailers, missed out on those spoils, however. Those stores had one of their worst Saturdays of the year as gridlock-fearing locals avoided downtown and the runners and their families were concentrated at the post-race party at Forsyth Park and at the remote parking lots.

Organizers have undertaken traffic and parking changes this year to prevent a repeat. The route winds through more of the historic district and most participants will park downtown this year.

The changes came at the behest of the Savannah Downtown Business Association (SDBA) and other business groups. Officials with the Competitor Group, which operates the marathon, were “very receptive,” according to SDBA President Ruel Joyner.

The SDBA hopes the more downtown-centric logistical approach pays off.

“Last year, nobody knew what to expect,” Joyner said. “It’s a trial and error deal, and the organizers seem committed to keep trying until we get it right. So we as businesses are optimistic.”

Retailers plan to tweak their approach as well. Few did much to appeal to the runners last year beyond hanging an understated welcoming placard in their windows.

Many will do more with their storefronts and offer extended hours and specials. And Visit Savannah is distributing 5,000 “welcome runners” lapel stickers to businesses for their employees to wear.

“I hope that businesses will go beyond simply unlocking their doors on Friday and Saturday,” Visit Savannah’s Joe Marinelli said. “Race participants are like other tourists and convention attendees in that they want to feel a sense of welcome. Showing runners or runners’ families that they are welcome will go a long way.”

When Steve Weathers resigned abruptly in September after two years as president of the Savannah Economic Development Authority, the SEDA board didn’t have to look far to find a new leader.

Trip Tollison, former vice president and chief operating officer for the Savannah Area Chamber of Commerce and Visit Savannah, had played a critical role in helping SEDA with various economic development projects, including both phases of major Gulfstream expansions.

He negotiated a resolution between the state, county, Georgia Ports Authority and Caterpillar related to ad valorum taxes on Caterpillar goods-in-transit through GPA – the last issue to resolve before the company’s announcement of a major new facility near Athens and substantial exports through the Port of Savannah.

And he has worked with Georgia Ports staff for the past decade, representing the business community’s support of the Savannah Harbor Expansion Project in both Atlanta and Washington, D.C.

With Weathers’ departure, his appointment as interim president and CEO of SEDA was immediate and unanimous.

“We are fortunate to have Trip on board during what we expect to be a very smooth transition for SEDA,” said David Paddison, SEDA board chairman.

Board vice chairman Bob James agreed.

“Trip has been involved in nearly all of the major economic development initiatives in Chatham County in the last decade and has worked closely with SEDA staff for many years,” the longtime Savannah business leader and president of Carver State Bank said.

Perhaps the most tangible evidence of the SEDA board’s confidence in its new hire is that no search for a permanent replacement is under way.

Tollison, who was officially appointed at SEDA’s October board meeting, recently sat down with the Morning News and Savannahnow.com to talk about his new role.

Q. Steve Weathers came in and took SEDA in some very different directions, such as establishing a World Trade Center and looking at the need for venture capital. Do you plan to continue in that direction, or do you have a different view of what SEDA should be going forward?

A. “What Steve has been able to do in the last two years is put into place many of the tools we’ll need to address the future of economic development. It’s no secret, for example, that Savannah has become more international in scope. In just the few weeks I’ve been on board, we’ve had visits from several international companies.

“With the World Trade Center Savannah, we’re better positioned than ever before to interact with the rest of the world. I’m really excited about having this tool in our toolbox and only see the role of the World Trade Center increasing as we attract new international business and help our businesses here develop their export capabilities.

“Another new idea, SEDA Innovations, addresses the issue of helping startup businesses in the region become capital-investment ready. The question now is what will that help look like? Will it be resources, money, hands-on interaction? We have some strategic decisions to make regarding SEDA’s role in innovation.”

Q. SEDA has a lot of strengths to bring to the community, including a talented staff. How will you utilize that staff and their individual talents to bring economic development and jobs to the region?

A. “The first thing we have to do is make sure we aren’t forgetting our core strategies — job retention, job creation and attracting investment. It’s like a three-legged stool. I feel like we have the staff in place now to allow us to pursue our core strategies and still look outside the box, to things like the World Trade Center and innovation.

“At the end of the day, we have one overarching priority — to bring jobs to the Savannah area.”

Q. In the past few years, it seems SEDA’s focus has shifted away from pursuing large projects. Will you return to that focus? What do you see as the state’s role in bringing major investment to our area?

A. “Since I’ve come on board, we’ve been busy on the project front and that’s definitely a good thing. Attracting investment to our area — whether it’s a new project or an expansion – is at the very heart of what we do.

“At SEDA, we don’t build anything, we don’t create products. Our skill set is in knowing how to cultivate and attract the kinds of businesses that are good for our area, that create good jobs and improve our quality of life. In my opinion, you just can’t do that in a vacuum. We need our partners — at the state and the ports and Georgia Power. We need to work with project developers and site consultants.

“One of the very first things I did when I was hired was to go to Atlanta to meet with the Georgia Department of Economic Development to make sure they know how important their relationship is to us. I think (Commissioner of the Georgia Economic Development Department ) Chris Cummisky and his staff would agree that being successful in economic development is about 25 percent knowledge and skill and 75 percent relationship building.

“One thing I can tell you for sure, when we are working on a great prospect, it will be all hands on deck. Working to get that benefit for Savannah will trump everything.”

Q. What can SEDA do to facilitate creating a larger pool of skilled workers in our area?

A. “I’m not a big study guy, but I do believe we need a comprehensive workforce development assessment — something that will tell us where we are lacking and what specific needs we should address.

“In addressing those needs, we must have a regional approach, defining workforce beyond the perimeters of Savannah. If we are going to consider a win in Effingham County a ‘local’ win — which we do — we need to be working regionally to resolve our workforce issues. The Savannah MSA — Chatham, Bryan and Effingham counties — is a good start, but we also need to embrace Bulloch, Liberty, Jasper and Beaufort.

“We need to continue to work with our schools and our businesses to identify those students who don’t plan to go to college and begin introducing them to skills training no later than (age) 16. Waiting until they graduate is too late.

“Woodville Tompkins is a great example of a school that’s working. We need to be asking ourselves ‘How can we put that program on steroids and expand it, not just in our school system, but in Richmond Hill, Guyton, Springfield?’

“I want to encourage businesses to follow the lead of JCB, which is working with Savannah Tech to offer a paid apprenticeship program that is training high school graduates in the specific skills it needs in a workforce.”

Q. How is SEDA addressing business retention?

A. “At SEDA, we realize the importance of the businesses and industries already contributing to the economy and creating jobs in the area. We have a great Business Retention Action Team in place whose program has become a model throughout the state on how economic development authorities can work with existing businesses to expand and grow right here in their own backyard.

“Enhancing this program is important, because there are still a lot of small businesses that don’t realize they have this resource. We want to get to know them and their needs.”

Q. Where would you like to see SEDA and Savannah, from an economic development perspective, five or 10 years from now?

A. “I’d like to see Savannah become more and more an international city, not just another city in Georgia that’s not Atlanta.

“I’d like to see the entire megasite filled.

“I’d like to see us develop better land resources, something I think we’re behind the curve on. We need a better inventory of potential property to show prospective projects. I’d like to see SEDA working with project developers, the government — whoever has property — to develop a portfolio that’s available to show site developers and potential businesses.

“I’d like to see a more regional approach to economic development. I hope to set up a retreat for area economic development professionals in the near future to work on defining ‘local’ as it pertains to economic development. How do we work better as a region on workforce development and how do we use regional clout to work better with the state and federal government?

“Finally, I’d like to see Savannah with a venture capital fund that gets serious attention, both from business and investors.”

QuickBooks Seminars

Hancock Askew & Co. LLP has announced the 2012 QuickBooks Seminars in Savannah. There is no charge for these classes, which will be held in the Learning Center at 100 Riverview Drive.

Intermediate QuickBooks® - Taking it to the Next Level will be held Wednesday from 9 a.m-12 p.m. The class covers proper procedures for recording sales, receiving payments, and using creditmemos, payables, payroll and sales tax to keep year-end adjustments to a minimum.

For more information or to register, contact Barbara Fierstein at 912-527-1337 or bfierstein@hancockaskew.com.

Chamber young professionals group

The chamber’s young professionals group will meet at Corks in Bluffton on Wednesday from 5:30-7 p.m. The networking group for the 40-and-under set, presented by the Hilton Head Island-Bluffton Chamber of Commerce, is an opportunity to meet with business colleagues in a casual setting. To register, visit www.hiltonheadchamber.org.

A kick start for your Kickstarter project

Jamie Bowerman, creator of the Bowerbag and a successful Kickstarter campaign, will present the program, an hour-long introductory session to Kickstarter fundraising campaigns. This will be a general overview of the nuts and bolts of putting together your own Kickstarter.

It will be held Nov. 1 from 6-7 p.m. at The Creative Coast, 15 West York St. Space is limited and registration will end the day before. The cost is $15. Visit, www.thecreativecoast.org/workshops to register.

QuickBooks Seminars

Hancock Askew & Co. LLP announced the 2012 QuickBooks Seminars in Savannah. There is no charge for these classes which will be held in the Learning Center at 100 Riverview Drive.

Reporting will be held Nov. 6 from 9 a.m.-12 p.m. The class covers how to manage your business using QuickBooks®, how to use “classes” as a tracking system for different retail locations or separating rental properties, manage inventory, available reports and processes.

For more information or to register, contact Barbara Fierstein at 912-527-1337 or bfierstein@hancockaskew.com.

Microsoft Access

Learn how to use Microsoft Access. The class will be held Tuesday and Thursday, Nov. 6 and 8, from 6:30-9:30 p.m. at the Coastal Georgia Center.

For more information, visit www.ceps.georgiasouthern.edu/conted/cesavannahmenu.html, email jfogarty@georgiasouthern.edu or call 912-644-5967.

Georgia Tech-Savannah hosts course

Georgia Tech Professional Education will conduct a Lean and Safe: Safety-Integrated Process Improvement course (MFG 2003) Nov. 6-8 at the Georgia Tech-Savannah campus. Participants will learn about the importance of developing an integrated approach for production processes and safety outcomes.

For more information or to register, visit www.gtpe.gatech.edu/lean-safe.

Bonding and insurance workshop

Join Chatham County’s Minority and Women Business Enterprise Program and Ajax Building Corp. Bonding and Insurance Options Workshop. The meeting will be held from 11 a.m.-1 p.m. Nov. 8. at the old courthouse, 124 Bull St., in the 3rd Floor Conference Room. This workshop is free, but RSVP is required. Space is limited. Contact B. Grant at 912-652-7925.

Business practices and ethics course

Individuals interested in expanding their knowledge of real estate appraisal are encouraged to register for Business Practices and Ethics being offered by the Savannah Chapter of the Appraisal Instituteon Nov. 9 at the Coastal Georgia Center, 305 Fahm St.

The registration fee is $165 for Appraisal Institute members and $190 for nonmembers. Early registration is encouraged. For more information, contact Lisa Faulkner at lfaulkner@faulknerlossing.com.

Advanced Project Management

Advanced Project Management covers the Project Management Institute’s five phases of a project: Initiating and closing projects; success planning; project simulation; controlling your project, and project management professional responsibility. The class will be held from 9 a.m.-3:30 p.m., Friday, Nov. 9 and Dec. 7, and Saturday, Nov. 17 and Dec. 15 at the Coastal Georgia Center.

For more information, visit www.ceps.georgiasouthern.edu/conted/cesavannahmenu.html, email jfogarty@georgiasouthern.edu or call 912-644-5967.

Inaugural Lowcountry Boil and BBQ Event

Presenting sponsor 98.7 The River, has partnered with the Greater Bluffton Chamber of Commerce on their inaugural Lowcountry Boil and BBQ event Saturday, Nov. 10 from 5 to 8 p.m. at the Bluffton Oyster Factory Park on Wharf Street, Bluffton. If it rains, the event will move to the Rotary Community Center at Oscar Frazier Community Park.

Tickets are $25 in advance and $30 at the door. Children 12 and under are free. Beer, wine and soft drinks will be available for an additional fee. For more information, call 843-757-1010 or visit www.blufftonchamberofcommerce.org.

Microsoft PowerPoint

A class on Microsoft PowerPoint will be held Tuesday and Thursday, Nov. 11 and 13, from 6:30-9:30 p.m. at the Coastal Georgia Center.

For more information, visit www.ceps.georgiasouthern.edu/conted/cesavannahmenu.html, email jfogarty@georgiasouthern.edu or call 912-644-5967.

QuickBooks Seminars

Hancock Askew & Co. LLP has announced the 2012 QuickBooks Seminars in Savannah. There is no charge for these classes which will be held in the Learning Center at 100 Riverview Drive.

Finance for Non-Financial Managers will be held Nov. 13 from 9 a.m.-12 p.m. The class covers Internal Controls - Important questions for your tax advisor for year-end, making QuickBooks® work with a paper or paper-less filing system, how to use QuickBooks® information as a management tool and using Internal Controls in QuickBooks.

For more information or to register, contact Barbara Fierstein at 912-527-1337 or bfierstein@hancockaskew.com.

“Lunch & Learn”

Savannah-Hilton Head CSCMP Roundtable & Savannah Traffic Club “Lunch & Learn” will be held Tuesday Nov. 13 at Crosswinds Golf Club, 232 James B. Blackburn Drive. Networking begins at 11:30 a.m. with lunch served at noon. The speaker will be Karl B. Manrodt, professor of logistics, Georgia Southern University. Cost is $25 for members and $35 for non-members. To pre-register, visit www.cscmp.org/wp/Events/Registrations/Register_4.asp?rgs_EventID=19851.

Photoshop Basics

Photoshop Basics introduces the different tools for editing photographs and will cover layers and basic editing to improve images. The class will be held Tuesdays and Thursdays, Nov. 17 to Dec. 6, from 6:30-8:30 p.m. at the Coastal Georgia Center.

For more information, visit www.ceps.georgiasouthern.edu/conted/cesavannahmenu.html, email jfogarty@georgiasouthern.edu or call 912-644-5967.

ONGOING

Pooler Business Network

When: Every first and third Thursday, 11:15 a.m. to 1 p.m.

Where: Western Sizzlin, U.S. 80 in Pooler

Information: RSVP to Jason Torres at jasonjtorres@gmail.com.

Downtown Business Professionals Chapter
of BNI

When: 11:30 a.m. every Thursday

Where: Hilton Savannah DeSoto, 15 East Liberty St.

Information: For information, call Kevin Brown at 912-447-1885 or email rkbrowndc@msn.com.

The Islands Chapter —
BNI group

When: Each Thursday at
8 a.m.

Where: Johnny Harris banquet facility, 1652 East Victory Drive

Information: Contact Kathy Salter at studio@dalyandsalterphoto.com.

Savannah Women’s
Business Network

When: Every second and fourth Wednesday, 11:15 a.m. to 1 p.m. for lunch.

Where: The Exchange Tavern on Waters Avenue

Cost: Cost for lunch

Information: RSVP to Kari Brown at kcbrown@colonybank.com.

Historic Savannah
Chapter ABWA

When: 6-7:50 p.m. second Thursday.

Where: Candler Heart & Lung Building, room 2.

Cost: Free

Information: Call 912-925-4980 or email blynneroberts@yahoo.com.

Toastmasters Club

When: Noon each Tuesday

Where: Savannah Mall across from “ Hill of Beans” Coffee Shop.

Information: Call 912-844-9139 or go to www.sbcsouthsidetm.com.

HIRES/PROMOTIONS

TONY ANGELO

New job title: Regional Vice President of the Southeast Region

Company: Philadelphia Insurance Companies

Duties: Angelo will oversee three PHLY offices that cover North Carolina, South Carolina, Georgia, Alabama and Mississippi.

Related work experience: Angelo spent 17 years at Liberty Mutual Group, Willis of Alabama and Federated Insurance Companies in various marketing positions.

Education: Angelo graduated from the University of Tennessee with a B.S. in business administration. He also holds CPCU, CIC, AAI, AU, ARM, and CPIA professional designations.

LISA SELLARS

New job title: Licensed Massage Therapist and Bodyworker

Company: Diamond Path

Duties: Sellars provides licensed massage, cranio-sacral, polarity therapy and myofascial release body work.

Related work experience: Sellars has 20 years experience in massage therapy.

MICHAEL R. MCLEOD

New job title: Vice President and Client Advisor

Company: SunTrust Bank, Savannah

Duties: McLeod will provide a range of planning-based financial services to wealthy individuals and families in Savannah.

Related work experience: McLeod has been an advisor with SunTrust Private Wealth Management in Atlanta since 2006. He is a Certified Financial Planner, holds his Series 7 and Series 66 securities registrations and also has an insurance license for Life, Accident & Sickness and Variable Products.

Education: McLeod earned his undergraduate degree from Washington & Lee University and has completed the Executive Program for Financial Planning at the University of Georgia’s Terry School of Business.

MICHAEL T. OWENS

New job title: Executive Director

Company: Savannah Area Tourism Leadership Council

Duties: Owens will handle the daily duties for the non-profit trade organization that represents the hospitality and tourism trade in the Savannah area.

Related work experience: Owens has served on the TLC Board of Directors since 2010 and has more than a decade of experience in the hospitality and tourism community in the Savannah market.

CHRISTOPHER BARR

New job title: Staff Geotechnical Engineer

Company: Terracon Consultants, Inc.

Duties: Barr will perform project site reconnaissance and provide locations for soil testing and perform foundation support analysis based on in-situ soil testing and lab test data.

Related work experience: Barr has 10 years of experience in the design and construction monitoring of various types of earth structures.

Education: Barr holds a bachelor of science degree in civil engineering.

WILLIAM SNOW, JR.

New job title: Geotechnical Staff Engineer

Company: Terracon Consultants, Inc.

Duties: Snow will perform project site reconnaissance and provide locations for soil testing and perform foundation support analysis based on in-situ soil testing and lab test data.

Related work experience: Snow has more than two years of construction experience with Palmetto Gunite Construction Company.

Education: Snow holds a bachelor of science in civil engineering and a master of science in civil engineering from Clemson University.

MICHELLE CREECH
LAWRENCE

New job title: Manager

Company: Parker’s, Garden City

Duties: Lawrence is responsible for overseeing the store’s daily operations, managing personnel and delivering customer service.

Related work experience: Lawrence served as store manager for Parker’s #36 in Bluffton, S.C.

Education: Lawrence graduated from Savannah High School in 2001 and attended Savannah Technical College.

SHERMAN COLLINS

New job title: Field service representative

Company: Gulfstream Aerospace Corp.

Duties: Collins provides technical and maintenance assistance to Gulfstream owners and operators in northern California.

Related work experience: From 1990 to 2000, Collins worked in various positions with Gulfstream in Savannah, Dallas and Long Beach, Calif. Most recently, Collins spent 12 years as the director of aircraft maintenance for an air transportation company in Dallas.

CRISTI LANKARD

Company: Harkleroad Diamonds and Fine Jewelers

Related work experience: Lankard has more than 20 years of fine jewelry experience in the Caribbean and in Savannah at Levy Jewelers.

HONORS/AWARDS

Armstrong honors 2012 Notable Alumni

On Oct. 20, Armstrong honored its 2012 Notable Alumni. Students, faculty, staff, Armstrong Alumni Association board members and past recipients of the award were asked to nominate alumni who have distinguished themselves in their professions, through community service or a combination of both.

The following were named to the 2012 Notable Alumni class:

• Michael H. Barker, Savannah

• Larry W. Branson, Savannah

• A. J. Cohen, Jr., Savannah

• Peter R. Doliber, Savannah

• Amy Gaster, Tybee Island

• Lolisa Joyner, Richmond Hill

• Michael L. Karpf

• Kaye Robinson Kole, Savannah

• Harriet Kanter Konter, Savannah

• Dale B. Lewis, Savannah

• Grace Burkett Martin, Savannah

• Sally Ray Murphy, Sheldon, S.C.

• Benjamin E. Price, Pooler

• Brandon Quillian, Savannah

• Francis P. Rossiter, Jr., Savannah

• Roger H. Smith, Savannah

• Ron Stephens, Savannah

• Patrick Talley, New Orleans

• Richard H. Wallace, Savannah

Georgia Southern professor honored

Kathryn Kennedy, a Georgia Southern University College of Education Assistant Professor of Instructional Technology, has been named the winner of the 2012 Outstanding Research in K-12 Online Learning Award. Kennedy was presented with the award at the Virtual School Symposium on Oct.21 at the Annual International Association for K-12 Online Learning Membership Meeting in New Orleans.

Travel agent honored

For the sixth consecutive year, Susan Dischner, of Four Seasons Travel, has been chosen for Travel + Leisure magazine’s A-List of 121 Top Travel Agents in its October issue. Susan is manager of Four Seasons’ Travel’s Leisure Department.

Attorney honored

William Norse, attorney at Duffy & Feemster law firm, was recently awarded the Martindale-Hubbell Client Distinction Award. Norse has also been selected for membership into the National Trial Lawyers Top 100 Trial Lawyers.

Attorney honored

Dwight Feemster, managing partner of Duffy & Feemster law firm, recently received a Martindale-Hubbell AV Preeminent Peer Review rating. An AV rating reflects that his peers rate him at the highest level of professional excellence. Feemster has also been selected for membership into the The National Trial Lawyers Top 100 Trial Lawyers for 2012.

Orthodontist honored

Dr. Robert A. Vaught was recently honored by The McCallie School with an Alumni Achievement Award for his contributions to the dental profession and specialty of orthodontics. Vaught is a diplomate of the American Board of Orthodontics and is past-president of the Georgia Association of Orthodontists, the Southeastern District Dental society, and the Savannah Dental Society. Vaught practices in Richmond Hill and will open a Savannah office on Waters Avenue by the end of the year.

CEO honored

Beth Williams-Holley, CEO of Ernest Signature Custom Homes LLC., was honored on Oct. 18 with the Home Builders Association of Greater Savannah’s Hall of Fame Award. Paula Mobley and Lamar Smith, longtime friends and business associates of Beth Williams-Holley, presented her with the award at the Home Builders Association’s Annual Installation Banquet.

Building council announces officers

The Savannah Branch of the US Green Building Council-GA Announces new officers.

The new officers are:

• J. Michael English, Queensborough National Bank and Trust Co., chair

• Jessica Pedigo, Seacrest Partners, chair-elect

• Sam Olin, Savannah College of Art and Design, treasurer

• Paul Teague, secretary

New appointment to election board

The Chatham County Republican Party Executive Committee has named Deborah S. Rauers to the Chatham County Board of Elections. Rauers will fill the vacancy created by the death of Mary McCracken Campbell who died on Oct. 7. Rauers will serve the balance of the unexpired term, ending December 2014.

The insurance industry in Georgia has a significant impact on the state’s economy that extends well beyond its responsibilities to collect premiums and settle claims.

The Insurance Information Institute, based in New York, reports that Georgia employs thousands of licensed professionals, pays significant taxes to the state, owns municipal bonds that help Georgia’s cities and towns and serves people in their times of greatest need.

According to U.S. Bureau of Labor Statistics data, the insurance industry provided 68,516 jobs in Georgia in 2010, accounting for about $5.9 billion in compensation. The number of jobs is more than the entire population of Warner Robins at 66,588.

Meanwhile, the insurance industry contributed about $8.3 billion to the Georgia gross state product (GSP) in 2010, and that accounts for 2.1 percent of the state GSP.

Premium taxes paid by insurance companies in Georgia totaled $360.6 million in 2011.

Direct premiums written by property/casualty insurance companies in Georgia totaled $13.7 billion in 2011.

For the many thousands of businesses that rely on some level of surplus line protection to keep their doors open, surplus lines is an important segment of the market. The Georgia surplus lines market accounted for $725.4 million in 2010, according to a survey by Business Insurance.

Insurance company claims payments help ensure the economic security of individuals and businesses and help sustain a number of related industries. In 2011 these payments in Georgia as measured by direct property/casualty incurred losses, were $8.9 billion.

Life insurance claims and benefits payouts in Georgia totaled $9.5 billion in 2011, including life insurance, death benefits, matured endowments, annuity benefits, and other life insurance benefits, but excluding accident and health.

The insurance industry plays a vital role in helping individuals and businesses prepare for and recover from the potentially devastating effects of a disaster such as a catastrophic hurricane, a storm or wildfire.

Four of the ten most costly hurricanes to hit the United States caused insured property damage in Georgia. They include Hurricanes Katrina in 2005, Ivan in 2004, Hugo in 1989, and Frances in 2004.

While coastal living is highly prized, the insured value of properties in coastal areas of Georgia totals $101.8 billion in 2012, according to an analysis by AIR Worldwide, a statistical gathering company for the insurance industry.

David Colmans is executive director of the Georgia Insurance Information Service. Contact him at 770-565-3806 or by email at dcolmans@giis.org.

Gas prices fell in Savannah

Average retail gasoline prices in Savannah fell 15.8 cents a gallon last week to $3.35 a gallon on Sunday. The national fell 9.6 cents a gallon last week to $3.56, according to gasoline price website SavannahGasPrices.com.

Prices Sunday were unchanged compared to the same day one year ago and were 25.3 cents a gallon lower than a month ago. The national average has decreased 23.1 cents a gallon during the last month and stands 10.2 cents higher than this day one year ago.

“With Hurricane Sandy headed for East Coast, there are a number of uncertainties in regards to the impact at the pump for various fuels,” said GasBuddy.com Senior Petroleum Analyst Patrick DeHaan. “There is very little to look back at history and compare this storm to, and so far, it remains to be seen exactly how gasoline and diesel prices will be impacted.”

Memorial recognized for organ donations

Memorial University Medical Center has received a Medal of Honor for Organ Donation from the U.S. Department of Health and Human Services. Memorial was one of 10 Georgia hospitals honored at the 7th National Learning Congress for Donation and Transplantation Community of Practice in Grapevine, Texas.

The recognition goes to Memorial for achieving national donation goals and having 75 percent or more eligible donors agree to organ donation. Memorial achieved this goal between April 1, 2010 and March 31.

“Every day roughly 18 people die while waiting on an organ transplant. Just one organ and tissue donor can save eight lives and help 50 others,” said Memorial’s Maria Theron.

To register as an organ donor, go to donatelifegeorgia.org.

Local technology all-stars get kudos

FALLS CHURCH, Va. — General Dynamics (NYSE: GD) has recognized 25 employees as technology all-stars during its 17th annual Women of Color in Technology awards program, held in Dallas Oct. 13, including eight at the Gulfstream Aerospace plant in Savannah.

Technology all-star awards recognize accomplished women of color from mid-level to advanced stages of their careers who have demonstrated excellence in the workplace and in their communities, the company said.

The Savannah recipients were Kimberly Brown, Julia Eady, Thuy Huynh, Cheryl Mitchell, Maggie Parker, Onzetta Roberts, Rachel Singleton and Cheryl White.

“We want to identify and encourage role models who can help shape the future by the way they manage people and approach problems, by the encouragement they give and the guidance they offer and through their commitment to colleagues, customer and company,” said Jay L. Johnson, chairman and chief executive officer of General Dynamics.

Longtime banking executive Jim LaHaise has been named president and CEO of The Coastal Bank, a locally owned and operated community bank headquartered in Savannah.

The appointment is subject to regulatory approvals.

LaHaise succeeds J. Thomas Wiley, Jr., who has accepted a position as vice chairman and president of State Bank and Trust in Atlanta. Wiley will serve as acting president and CEO of The Coastal Bank until the required approvals are finalized.

“I’m honored to continue the impressive history of success at The Coastal Bank,” LaHaise said, adding that he plans to continue Wiley’s legacy of collaborative leadership and culture building.

“The Coastal Bank will continue to provide exceptional customer service, outstanding products and state-of-the-art technology to personal and business banking customers,” he said.

“Tom Wiley has taken this bank through the toughest five years in memory and positioned it well to thrive as we move forward. My plan is to continue to execute that successful focus.”

Previously the executive vice president and chief banking officer at The Coastal Bank, LaHaise has more than 26 years of experience. He joined The Coastal Bank in 2007 after serving as executive vice president for sales and performance management with Flag Bank in Atlanta, president of Middle Georgia Banking for Century South and senior vice president of sales and service for AmeriBank in Savannah.

He is a graduate of The Citadel, the Military College of South Carolina in Charleston, and serves as chairman of the board of directors for the Savannah Technical College Foundation.

“Jim is a talented leader with deep knowledge of community banking and a strong commitment to coastal Georgia,” said Fred Bergen, The Coastal Bank’s board vice-chairman. “We have every confidence he will provide strong leadership for The Coastal Bank and that the transition will be a smooth one.”

Wiley agreed.

“Jim and I have worked together for 16 years,” he said. “I actually recruited him to Savannah to work with me at AmeriBank. We have moved together four times.

“We share not only experience, but core values.”

Wiley and LaHaise both joined The Coastal Bank five years ago.

“Jim has been involved in every aspect of the organization,” Wiley said. “It’s a natural evolution, and he certainly deserves this opportunity.”

Wiley will continue to serve as non-executive chairman of the board of directors of The Coastal Bank, and will remain actively engaged with the organization.

His new position with State Bank and Trust will be a homecoming of sorts for the banker who grew up in Atlanta and has extended family there.

“My wife, Susan, and I have thoroughly enjoyed our time in Savannah,” said Wiley. “I am proud of our accomplishments to date at The Coastal Bank and look forward to continuing as chairman of the board.”

ABOUT THE COASTAL BANK:

The Coastal Bank is a $450 million community bank with six locations along the Georgia coast. Locally owned and operated, the bank provides a full range of financial services, specializing in small business, consumer banking and real estate lending. Headquartered on Johnson Square in Savannah, the bank has been serving the greater Savannah area since 1954. For more information about The Coastal Bank, call 912-201-4934 or visit www.thecoastalbank.com online.

WASHINGTON — Americans increased their spending in September at twice the rate that their income grew, a sign of confidence in the economy. Still, consumers made up the difference by saving less for a third straight month, a troubling trend.

The Commerce Department said Monday that consumer spending increased 0.8 percent in September from August. That followed a 0.5 percent gain in August and was the best showing since February.

Personal income rose 0.4 percent, an improvement from a slight 0.1 percent gain in August and the best gain since March. However, after adjusting for inflation and taxes, income was flat in September. That followed a 0.3 percent decline in August.

Consumer spending is important because it drives nearly 70 percent of economic activity.

A pickup in consumer spending helped lift economic growth in the July-September quarter to a 2 percent annual rate. While that is faster than the 1.3 percent rate in the April-June period, it’s still too weak to create enough jobs to rapidly lower the unemployment rate.

Paul Dales, senior U.S. economist at Capital Economics, said weak income growth would likely hold back spending in the coming months. Consumers can only cut their savings by so much, he cautioned. And if Congress fails to reach a budget deal by the end of the year, taxes will rise in January. That could also dampen consumer spending.

“Faced with the prospect of major tax hikes in the New Year, (consumers) will soon become more cautious,” Dales said.

The spending gain in September reflected in part rising consumer confidence. The University of Michigan reported Friday that its final consumer sentiment index for October had hit a five-year high. Falling gas prices and a slightly better job market were credited with lifting consumers’ outlook.

Still, households trimmed their savings to finance the increase in purchases, Monday’s report showed. The savings rate dropped to 3.3 percent of after-tax incomes in September, down from 3.7 percent in August and 4.1 percent in July.

Americans also paid more for gas in September. That drove an inflation gauge tied to consumer spending up 0.4 percent last month. But excluding food and energy, prices rose just 0.1 percent. And gas prices have dropped since then, which could encourage more spending elsewhere.

With eight days until the election, the economy is being kept afloat by a revitalized consumer and the early stages of a housing recovery. The nation continues to struggle because businesses are reluctant to invest, and slower global growth has cut demand for American exports.

Republican nominee Mitt Romney is telling voters that President Barack Obama’s policies have kept the economy from accelerating.

Obama says his policies helped to stabilize the economy after the worst downturn since the Great Depression. He says the economy is slowly recovering under his administration and that Romney is advocating policies that would undo that progress.

The unemployment rate fell to 7.8 percent last month, the first time it has been below 8 percent since January 2009, the month Obama took office.

BREAKOUT:

A summary on September’s consumer spending

SPENDING UP: Americans increased their spending 0.8 percent in September, the Commerce Department said Friday. It was the biggest gain since February and a sign of confidence in the economy.

INCOME AND SAVINGS: Income grew 0.4 percent, the biggest gain since March. Still, consumer spending rose twice as fast. Americans financed their additional spending by cutting savings for the third straight month.

OUTLOOK: A pickup in consumer spending helped lift overall economic growth in the July-September quarter. But economists are worried that consumers can’t keep spending as fast without better gains in employment and wages.

Last Tuesday, I focused on ways in which the Obama administration and the federal government could have softened the impact of the housing bust.

That bust is at the heart of the Savannah metro area economy’s ongoing woes.

As regular readers probably know, I took a lot of flak back in 2008 for predicting a prolonged slowdown in new construction and a steep decline in local home prices.

I wish I had been wrong. And I wish I could take credit for having some extra special analytical skills.

But the simple truth is that anyone taking a close, unbiased look at the numbers would have arrived at the same conclusion. The slow growth we’ve had the last three years has been close to a best-case scenario given the depth of the financial crisis and housing bust.

So, here on the cusp of a presidential election, can we make predictions about the local economy for the next four years?

The latest employment estimates are extremely encouraging. We could finally be seeing a virtuous circle taking hold, with good economic news spawning more good news.

The Georgia Department of Labor estimates that the Savannah area labor force expanded by a healthy 2.6 percent over the past year. Even better, we saw an annual jump of 4.0 percent in the estimate of area residents who are employed.

In writing about some good signs a few months ago, I noted that much of the improvement in employment appeared to be within the city of Savannah. The latest data show continued gains in the city limits and also solid gains throughout the metro area (Chatham, Effingham and Bryan counties).

With so many significant projects in the works, it’s reasonable to expect the local employment situation to continue to improve through 2013.

Tourism has rebounded strongly from its recession lows, and other sectors are looking good too. New home construction and home prices may never reach the dizzying highs of a few years ago, but both appear to have bottomed.

Whoever wins the presidential election next week will have to deal with some long-term deficit and debt issues. That will almost certainly cause a drag on the local economy.

The expiration of the payroll tax cut, which seems likely under either an Obama or Romney administration, will hurt local spending.

And of course the Savannah economy will be impacted by world events — the recession in Europe, uncertainty in China, the likelihood of occasional spikes in gas prices.

It’s also entirely possible that the ordinary business cycle will bring us another recession — let’s hope a shallow one — before 2016.

But there are a lot of reasons for optimism about the local economy, regardless of who is elected president next week.

City Talk appears every Sunday and Tuesday. Bill Dawers can be reached via billdawers@comcast.net and http://www.billdawers.com. Send mail to 10 East 32nd St., Savannah, GA 31401.

Parker’s, a Savannah-based regional chain, has opened a new-4,000-square-foot store at 2419 Augusta Road in Garden City.

Parker’s 28th store was opened just after the company was recognized as a Market Leader at the National Association of Convenience Stores (NACS) annual trade show Oct. 7-10 in Las Vegas.

Trade show attendees got a first look at new industry ideas and best retail practices during its “Ideas 2 Go” video exhibition, which showcased Parker’s popular PumpPal loyalty program, aesthetically pleasing female-focused store design and use of innovative check-out and multimedia pump technology.

The organization also recognized Parker’s mobile app, premier craft beer Growler offerings, exclusive gas giveaways and Fueling the Community program.

As part of the Market Leader honor, Parker’s was selected as one of 12 national convenience store retailers included in the group’s “Ideas 2 Go” DVD, which features innovative convenience store retailers and includes interviews on topics such as food service, niche marketing, community involvement and new merchandising methods.

With Hurricane Sandy closing major deepwater ports from Virginia to New York, a domino effect has delays stretching up and down the coast and into the nation’s heartland.

“This storm has definitely disrupted shipping along the Eastern Seaboard,” said Curtis Foltz, executive director of the Georgia Ports Authority.

“Already, we’ve had a number of vessels that were scheduled to be in port by today either delayed or rerouted,” he said. “Ultimately, this is going to affect trade — unfortunately in the middle of peak retail season.”

In the aftermath of Hurricane Sandy and extensive flooding in the New York area, the Port Authority of New York and New Jersey issued a press release Tuesday morning notifying users that all the Port Authority’s maritime facilities are closed until further notice.

In Baltimore, the Maryland Port Administration said its public marine terminals would remain closed Tuesday. After closing Monday, the Virginia Port Authority said its marine terminal would reopen Tuesday and start handling vessels at 7 p.m.

The northeastern U.S. ports supply 170 million U.S. and Canadian customers with cargo goods. Disruption to these ports is also expected to have a significant impact on supplies like food and oil to the region.

CSX Corp. and Norfolk Southern Corp., the two main Eastern railroads, are telling customers to expect at least three days of traffic delays in the affected areas. For truckers, travel in the region will remain difficult, though some road restrictions are being eased as the storm passes through.

Truckers who got back on the road Tuesday were dealing with roadblocks and detours, as well as more rain, wind and snow.

Foltz said he doesn’t anticipate any problems with the increased vessel traffic expected once the storm clears and Northeast ports reopen.

“We have the capacity to handle the extra ships and will be available to help any neighboring ports as needed,” he said.

Green Jet fuel powers Gulfstream flights

UOP LLC, a Honeywell (NYSE: HON) company, has announced that Honeywell Green Jet Fuel, produced using Honeywell’s UOP Renewable Jet Fuel process, powered demonstration flights by Gulfstream Aerospace to this year’s National Business Aviation Association convention.

Five Gulfstream aircraft flew from the company’s Savannah headquarters to Orlando on Oct. 27 and 28 for the convention.

Both engines of the aircraft were powered by a 50/50 blend of Honeywell Green Jet Fuel and petroleum-derived jet fuel. The renewable fuel was made with natural oils from camelina, an inedible plant that grows in conditions where other food crops cannot. This marked the first time Gulfstream’s entire fleet has flown on renewable jet fuel.

Gulfstream G150, G280, G450, G550 and G650 aircraft participated in the flights. Previously, Gulfstream’s G450 was the only Gulfstream aircraft flown using renewable jet fuel.

Each gallon of camelina-based fuel burned instead of petroleum reduces the net carbon dioxide equivalent emissions by 68 percent.

Advice day features lawyers, accountants

The Creative Coast, 15 W. York St., will host “Free Advice Friday” on Nov. 2 from noon-2 p.m. with representatives of three law firms and an accounting practice.

The advice givers includes:

• Kate Strain, Belzer PC, an attorney practicing intellectual property;

• Patty Paul, Oliver Maner LLP, an attorney practicing employment law;

• Daniel Rowe, Deemer Dana & Froehle LLP, a CPA for tax matters;

• Dana Braun: Callaway, Braun, Riddle & Hughes, PC, for business structure, lease and real estate matters.

No appointments are needed. Anyone’s invited to stop buy for a few minutes and discuss issues on which they need advice with one or more of the panelists.

Leadership luncheon seminar slated

HILTON HEAD ISLAND, S.C. — The Hilton Head Island-Bluffton Chamber of Commerce, in partnership with the Center for Service Leadership, will offer the leadership seminar “Creating a Culture of Service Excellence” at noon on Nov. 13, at the Sea Pines Country Club.

The event will be the second in the chamber’s leadership luncheon series that feature prominent speakers from organizations known for their commitment to creating a culture of leadership among their staff.

Speaker Kris Downing, director of business strategy and partnerships with the Center for Creative Leadership, will share leadership tactics designed to help area business take their organizations to the next level.

The cost is $20 or $200 for a table of 10. Advance registration is required. For more information, go to hiltonheadchamber.org.

WASHINGTON — Superstorm Sandy will end up causing about $20 billion in property damages and $10-$30 billion more in lost business, according to IHS Global Insight, a forecasting firm.

In the long run, the devastation the storm inflicted on New York City and other parts of the Northeast will barely nick the U.S. economy. That’s the view of economists who say a slightly slower economy in coming weeks will likely be matched by reconstruction and repairs that will contribute to growth over time.

The short-term blow to the economy, though, could subtract about 0.6 percentage point from U.S. economic growth in the October-December quarter, IHS says. Retailers, airlines and home construction firms will likely lose some business.

The storm cut power to about 7 million homes, shut down 70 percent of East Coast oil refineries and inflicted worse-than-expected damage in the New York metro area. That area produces about 10 percent of U.S. economic output.

New York City was all but closed off by car, train and air. The superstorm overflowed the city’s waterfront, flooded the financial district and subway tunnels and cut power to hundreds of thousands. Power is expected to be fully restored in Manhattan and Brooklyn within four days.

Most homeowners who suffered losses from flooding won’t be able to benefit from their insurance policies. Standard homeowner policies don’t cover flood damage, and few homeowners have flood insurance.

But Freddie Mac said it will offer help to borrowers whose homes were damaged or destroyed, who live in designated disaster areas and whose loans the mortgage giant owns or guarantees. Among other options, mortgage servicers will be allowed to reduce the monthly payments of affected homeowners or require no payments from them temporarily.

Across U.S. industries, disruptions will slow the economy temporarily. Some restaurants and stores will draw fewer customers. Factories may shut down or hold shorter shifts because of a short-term drop in customer demand.

Some of those losses won’t be easily made up. Restaurants that lose two or three days of business, for example, won’t necessarily experience a rebound later. And money spent to repair a home may lead to less spending elsewhere.

Shipping and business travel has been suspended in areas of the Northeast. More than 15,000 flights across the Northeast and the world have been grounded, and it will take days for some passengers to get where they’re going.

On Tuesday, more than 6,000 flights were canceled, according to the flight-tracking service FlightAware. More than 500 flights scheduled for Wednesday were also canceled.

Economists noted that the hit to the economy in the short run was worsened by the size of the population centers the storm hit.

“Sandy hit a high-population-density area with a lot of expensive homes,” said Beata Caranci, deputy chief economist at TD Bank.

Hurricane damage to homes, businesses and roads reduces U.S. wealth. But it doesn’t subtract from the government’s calculation of economic activity.

By contrast, rebuilding and restocking by businesses and consumers add to the nation’s gross domestic product — the broadest gauge of economic production. GDP measures all goods and services produced in the United States.

Paul Ashworth, chief U.S. economist at Capital Economics, expects the storm to shave 0.1 to 0.2 percentage point from annual economic growth in the October-December quarter. He thinks the economy will grow at an annual rate of 1.5 percent to 2 percent in the fourth quarter. It expanded at a 2 percent annual rate last quarter.

But Ashworth says any losses this quarter should be made up later as rebuilding boosts sales at building supply stores and other companies.

“People will load up on whatever they need to make repairs — roofing, dry wall, carpeting — to deal with the damage,” he says.

In the short run, Caranci said the economic damage could be heaviest for small businesses that lack the money and other resources to withstand lost sales.

“It will remain to be seen how long disruptions to electricity and infrastructure persist,” she said.

But she noted that the storm should give a boost to the construction industry, which shed millions of workers after the housing bust. Many who lost construction jobs were skilled employees with disproportionately high pay, and the loss of those jobs hit the economy hard.

Major retailers began trying Tuesday to ramp up their operations before the critical holiday shopping period.

Sears Holdings Corp., which operates Kmart and Sears, said 80 of its stores were still closed as of midday Tuesday, down from 187 Monday. Wal-Mart Stores Inc., the world’s biggest retailer, said it was working to reopen the 168 stores it closed. And Darden Restaurants Inc., parent company of Olive Garden and Red Lobster, by Tuesday afternoon had reopened roughly 160 of the 260 restaurants it closed Monday.

Retailers collect up to 40 percent of their annual revenue in November and December. Retailers, excluding restaurants, could lose at least $25 billion in sales this week, estimates Burt Flickinger III of retail consultancy Strategic Resource Group. Because of the storm, he’s reduced his forecast for holiday sales to a 2.1 percent increase over last year from the 3.2 percent increase he had predicted earlier.

Reopening is often difficult after a storm. New York City’s subways and buses remained closed Tuesday, making it hard for employees to get to work. Macy’s and Saks Fifth Avenue flagship stores stayed closed Tuesday — bad news for those retailers, because major department stores can derive 10 percent of annual sales from their Manhattan locations.

Still, those stores that could open for business did. A Westside Market in Manhattan remained open 24 hours a day throughout the storm, even though only about 20 percent of workers managed to show up Monday and Tuesday.

“They found a way to get here — I don’t know how,” store manager Jay Bilone said.

Insured losses from the superstorm will likely total $5 billion to $10 billion, the forecasting firm Eqecat estimates. Insurance losses are typically a fraction of the overall cost to the economy.

Chubb, Allstate and Travelers are the insurers most likely to suffer losses, said Greg Locraft, an analyst at Morgan Stanley. Those companies claim a major share of the affected areas.

“As an insurance event, Sandy is going to be a blip on the balance sheet,” said Duncan Ellis, U.S. property practice leader at Marsh, the insurance broker. “2012 has been a relatively catastrophe-free year.”

That taxes and job creation are garnering the most public attention two weeks before the national election is to be expected. And, correctly I believe, much focus is being paid to the revenue side of the account. However, what shape taxes take, and how they dictate employment and economic prosperity, in the coming years remains an ubiquitous and complex question.

At least one notion resonates with consensus across America: It is the risk-taking entrepreneur who facilitates small-business creation and is the source of our fastest job growth.

OK, now what? One strand of discourse suggests strongly that taxes on high-income earners are intimately tied to the spirit of entrepreneurship. Tax increases of the income, investment or estate variety are thought to impede household savings and firm investment, handcuffing capital owners from pursuing future projects like technological innovation or the purchase of a new factory.

Capital gains and dividends are taxed at a maximum rate of 15 percent, a lower rate than the tax on labor income of most middle-class individuals. For instance, the income for an individual making between $35,000 and $85,000 per year is taxed at 25 percent at the federal level.

However, if a large portion of wealth for high-income taxpayers comes in the form of investments, which it historically has, such individuals may pay a lower effective tax rate as a result. But there are many nuances to the relationship between capital investments, labor and respective taxes.

First, capital gains are the difference between the selling price of a security and the purchase price. There are temporal distinctions as well. Short-term capital gains, corresponding to securities held less than one year, are taxed at the owner’s income tax rate, while longer-term capital gains are taxed at the maximum 15 percent level. Similarly, unqualified dividends are taxed at the regular income tax rate, while qualified dividends receive the 15 percent maximum rate.

It is obvious that the capital gains and dividend policies are of greater concern to those of greater wealth. A disproportionate amount of wealth is comprised of investments as income levels rise. Ignoring for a moment that both income taxes on the highest income earners and capital gains taxes were substantially higher during the 1950s and 1960s, two decades synonymous with economic prosperity, let’s think about the responsiveness of savings/investment and labor supply behavior to changes in their respective tax rates.

Put differently, how much does savings behavior change when capital gains taxes increase? How much do labor supply decisions change when labor income tax increases?

It turns out that savings behavior is relatively unresponsive to changes in capital gains taxes compared to the responsiveness of labor supply behavior to changes in income tax rates. Savers will save, but labor decisions are more sensitive to other factors. Just look at the 1990s and 2000s. Capital gains taxes have decreased, especially from 2003 and 2008 tax reform, while savings rates have also decreased.

OK, so what about the entrepreneurial spirit? I am hard-pressed to believe that those beginning a start-up firm are thinking seriously about taxes on investment gains. In fact, capital gains for low-income individuals are actually taxed at zero percent. What’s more, individuals pursuing start-ups might not be too concerned with an estate tax that only kicks in on estates of more than $5 million.

If the goals toward a more prosperous economy and job creation are to encourage small business growth, let’s think about the factors that underpin the decision to become an entrepreneur. Sure, company owners think long and hard about corporate income taxes and capital gains, and rightfully so. But let’s be realistic. Those issues become more relevant for established firms, not those just trying to make it off the ground.

Dr. Nicholas J. Mangee is an assistant professor of economics at Armstrong Atlantic State University and can be reached at Nicholas.mangee@armstrong.edu.

ATLANTA — Gov. Nathan Deal said Tuesday that the $181 million in state money already committed to the Savannah River channel deepening can immediately start the environmental parts of the project.

As he was hailing the economic impact of the U.S. Army Corps of Engineers’ formal approval last week for the project, a new report predicts there will be so much work in Georgia’s freight industry that it will soon be hard to find enough workers.

The governor made his comments at the Georgia Chamber of Commerce’s annual State of the Ports luncheon, in which Atlanta-based shippers get an update on progress at Georgia’s two seagoing ports.

“I just know that it’s important that this project begin, and if we have to start it with just state funding, I feel certain that with the commitments we’ve seen at the federal level that federal money will be forthcoming,” he said.

He noted that the state is racing to complete it in time to accommodate larger ships that will be able to transit the Panama Canal that will be widened by 2014. The state wants to make sure shippers using the larger container vessels won’t take their business elsewhere because the Savannah River isn’t deep enough.

“Any time that we can shave off is important,” he said. “There are some preliminary things that we can begin to do.”

More than half of the $652 million cost for the project will be spent on environmental projects to mitigate for potential damage from the deepening and to correct past problems. State funds already in hand can go immediately to those projects, as well as to dredging the 14 miles of the river closest to the ocean.

The main work of digging the river bed down to a depth of 47 feet at low tide must wait until Congress adds money next year.

In a related issue, a report released by the Georgia Center of Innovation for Logistics says the state will produce 9,500 new logisitics jobs each year, growing 18 percent yearly, which is 5 percentage points higher than the national average and three times higher than the Southeastern average.

Filling all those jobs is already a challenge here. Georgia issues 51 percent of the nation’s truck-driving certificates and graduates 46 percent of all industrial engineers.

“We have a huge opportunity for new jobs in logistics,” said Page Siplon, the center’s director. “We needed to put a number on that. This report is the tip of the iceberg. Now, we’re going to be working on executing some of those recommendations.”

Among the recommendations in the report are streamlining the transition for military veterans to get truck-driving licenses, internships and scholarships and convincing federal officials to track logistics as a separate industry in its statistics.

Siplon said the center is beginning to coordinate with Georgia’s education agencies and Department of Labor to fill those jobs now and in the future.

ATLANTA — The number of jobs linked to Caterpillar’s decision to build an excavator plant in Athens could triple when the company’s suppliers build their factories in the state as well, Gov. Nathan Deal said Tuesday.

And Caterpillar announced another 50-75 jobs it is creating in the Savannah area.

Both announcements came during a panel discussion at the Georgia Chamber of Commerce’s annual State of the Ports luncheon.

The governor said Caterpillar, which already has 1,500 workers in various plants across the state, helped him meet 10 of its suppliers during a recent trade mission to Japan. He predicted “a good many” would locate in Georgia.

“Caterpillar made it very clear that they want their suppliers close to where they are,” he said.

The Athens plant will employ 1,400 workers when it’s fully staffed and operational in two years.

“We’re told that twice that many jobs (will be) coming from their supplier base, in other words, another 2,800,” Deal said.

Asked about details, the governor declined to offer specifics.

“We have some in the works. I can’t tell you who they are,” he said.

One reason Caterpillar located its new factory in Athens is because it has had a close relationship working with the Georgia Ports Authority since 1980. The Port of Savannah carries greater tonnage of Caterpillar shipments than any in the world, and recently it began moving some of its freight through the Brunswick port so that it would not be so heavily reliant on Savannah.

“Mostly it’s Caterpillar using our ports in many different modes, not just the traditional freight of large machinery that’s coming out of one of our general-cargo facilities, but they ship goods in and out of our container facility,” said Curtis Foltz, executive director of the Georgia Ports Authority.

Caterpillar Logistics President Steve Larson agrees.

“Savannah has just been a great port for Caterpillar,” he said.

He said the authority recently helped convince Norfolk Southern to add trains to save days in moving equipment to Georgia from Caterpillar’s Illinois facilities.

“We also have just made a decision here recently to locate a call center in Savannah, and it’s going to drive more activity here,” he said.

Georgia Power’s Hill to chair foundation

Armstrong Atlantic State University has announced the appointment of Cathy Hill, region vice president of Georgia Power, as board chair of the Armstrong Foundation.

Hill succeeds John C. Helmken II, president of Savannah Bancorp, who joined the board in 2008 and served as chair from 2010-2012.

Hill has held her current position since 2008. She holds a bachelor’s degree in electrical engineering from the Georgia Institute of Technology, a master’s in business administration from Georgia State University and she attended the Harvard Business School Executive Management Program.

She is the board chair of the United Way of the Coastal Empire and a board member of the Savannah Area Chamber of Commerce and Savannah Economic Development Authority.

The Armstrong Foundation provides more than $300,000 annually to support the university.

Kroger raises money for storm victims

Kroger stores in the Savannah area and throughout the chain’s Atlanta division are encouraging customers and associates to donate to the American Red Cross, which is providing shelter, meals, emotional support and other necessities to those affected by the deadly aftermath of Hurricane Sandy.

Beginning yesterday, customers can “round-up” their purchases to the nearest dollar at all of the 11 Kroger stores in the Savannah area. Customers can also make donations to the American Red Cross at Kroger cash registers.

“Our hearts are with our friends and neighbors in New York, New Jersey, and across the East Coast who have been devastated by this unimaginable superstorm,” said Glynn Jenkins with Kroger’s Atlanta Division. “We ask that our customers come together as we ‘round-up’ support for Sandy’s countless victims.”

JodyJazz wins Excalibur award

Savannah’s JodyJazz Inc., 1335 Lynah Ave., Suite 112, received the 2012 Excalibur Award for small businesses during an Oct. 26 ceremony in Atlanta that attracted an audience of more than 400 leaders from Georgia’s business community.

The Excalibur Awards presented by the Technology Association of Georgia and the Business and Technology Alliance of TAG recognize Georgia companies that demonstrate the best use of third-party technology.

“We believe celebrating these tech-enabled companies and organizations strengthens our message of Georgia’s emerging position as a national leader in technology,” said Tino Mantella, president and CEO of TAG.

The award’s citation for JodyJazz said owner Jody Espina — with his slogan of “A Mouthpiece for Every Player” — has created unique, high quality saxophone and clarinet mouthpieces to meet the needs of discerning professionals and students alike.

DETROIT — Shares of General Motors surged Wednesday after the company announced big job cuts in Europe and reported third-quarter earnings that were far better than Wall Street expected.

The Detroit company said it has cut 2,300 jobs in Europe this year and wants to trim 300 more, part of a larger plan to reduce costs and raise revenue in the struggling region with new vehicles that are more appealing to buyers.

Despite the moves, General Motors Co.’s net profit fell 14 percent as European losses widened and North American earnings dropped due to falling pension income and higher warranty costs.

But investors looked past the decline because GM’s earnings far exceeded expectations. GM’s stock rose $2.12, or 9.1 percent, to $25.40 in afternoon trading.

The company rode North American profits, big improvements in South America and strong earnings in international areas outside of China to make $1.48 billion, or 89 cents per share for the quarter. That’s down from $1.73 billion, or $1.03 per share, a year earlier. Excluding one-time items, the company made 93 cents per share, beating analysts’ estimates by 33 cents.

Still, there are signs of trouble. Profit in North America, GM’s most lucrative market, fell 17 percent from July through September. The company’s U.S. market share dropped more than two percentage points to 17.6 percent, and its U.S. sales increase of 3.4 percent for the year lags overall market growth of 14.5 percent. In Europe, where GM hasn’t made money in a dozen years, it lost $478 million before taxes. That’s $186 million worse than a year earlier.

Yet GM said its third-quarter performance shows that steps it has taken to fix troubled business units are working. Four of the company’s five units were profitable, with Europe the only exception. “It stems from our geographic diversity, strong brands and the financial rigor we are instilling in the business,” Chairman and CEO Dan Akerson said.

Fourth-quarter pretax earnings should be about the same as last year’s $1.1 billion, the company said.

In Europe, GM made rosier predictions than other automakers. The company expects to break even before taxes by the middle of the decade. Losses this year are expected to run from $1.5 billion to $1.8 billion, about double the figure from 2011. Next year, losses should be slightly less.

The job cuts, which have come mainly through voluntary departures and early retirements, are part of a plan to cut $300 million in costs this year and an additional $500 million from 2013 to 2015, said Vice Chairman Steve Girsky, who is leading the restructuring. More job cuts could be made in the future depending on sales.

GM also is cutting inventory and low-profit rental car sales in Europe, and it plans to eliminate a third shift now working at its Eisenach plant in Germany next year. It’s also reviewing whether its transmission plant in Strasbourg, France, will stay open. It’s negotiating the closure of its Bochum plant in Germany, and it plans to cut Opel Astra production from three plants to two.

But cost reductions, Girsky said, aren’t the only way the company plans to fix Europe. It has changed leadership, bringing in outside executives and several from North America. The company plans 23 new models and 13 new engines by 2016 in an effort to raise sales, including the Opel Mokka small SUV and the Opel Adam small car due out later this year. GM has 45,000 orders for the Mokka, far more than it can fill this year, Girsky said.

Girsky said all of this is being done with no expectation for improvement in Europe’s economy, which has been hit hard by government debt problems.

“We’re developing a plan that is not highly dependent on (the) external environment dramatically improving over the next several years,” he said.

In North America, GM’s pretax profit fell 17 percent to $1.8 billion. But in South America, the company swung from a $44 million loss last year to a $114 million profit on the strength of new models. And GM’s international operations, fueled mainly by areas outside of China, nearly doubled its pretax profits to $689 million.

GM also acknowledged that its third-quarter North American pretax profit margin of 7.8 percent was far below rival Ford Motor Co.’s 12 percent. GM plans to close the gap in part with higher revenues when new products, including pickup trucks, roll out. GM now has the oldest North American model lineup in the industry, but it plans to revamp 70 percent of its models in the next two years.

The company also said 12,600 — about 30 percent — of its U.S. salaried retirees took lump-sum payments instead of monthly pension checks. It also expects to close a deal next month to shift liability for its salaried pension plan to an annuity managed by The Prudential Insurance Co. The actions will cut GM’s pension liability by $29 billion, $3 billion more than the original estimate of $26 billion, the company said.

CertusBank, N.A., with offices in South and North Carolina, Georgia and northern Florida, announced Wednesday it has agreed to acquire Quadrant Financial Inc., a subsidiary of Savannah-based First Chatham Bank.

First Chatham bought a controlling interest in Quadrant Financial, a Louisville, Ky.-based lender specializing in Small Business Administration loans, in 2005.

By the end of this year, it had become the 22nd largest producer of small business loans in the country and the second largest in Georgia behind SunTrust Bank, said Brian Foster, First Chatham’s chief executive officer.

Foster said Quadrant has become one of the most recognizable names in small business lending.

“We had built this company, Quadrant, which we were majority owners of with slightly more than 50 percent,” he said. “Over the years, it had grown and had become a very profitable lending subsidiary, primarily focused on SBA loans.”

Quadrant had grown to the point where First Chatham couldn’t provide the resources for the firm to grow to its full capacity, Foster said, and it became clear it would become more valuable to a larger bank.

Selling Quadrant also would create capital for First Chatham and allow the bank to focus on its Coastal market, he said.

Certus was a good choice, Foster said, because they’re in a strong capital position and were looking to expand in the Southeast.

“It was a perfect match for the two of us,” he said.

The sale requires regulatory approval, but Foster said the banks hope to close the deal by Dec. 31.

CertusBank, based in Greenville, S.C., will become the No. 1 small business lender in South Carolina with the acquisition of Quadrant.

“I’m thrilled about this acquisition,” said Walter L. Davis, co-CEO of CertusBank. “lt positions us perfectly to expand our small to mid-size business platform in the Southeast, especially in our headquartered state of South Carolina.”

Davis said bank officials also are excited to have John Handmaker and George Vredeveld, the co-founders of Quadrant, join their organization.

“They are proven leaders in the industry and have developed a strong team of small business lending professionals,” Davis said.

CertusBank agreed to acquire 100 percent of Quadrant, which was founded in 2001, has offices in eight states and has originated more than $750 million in small business loans across the United States.

Handmaker and Vredeveld said they have been privileged to serve the financing needs of their customers and are excited and honored to be part of CertusBank.

CertusBank has two branches in the Savannah area, one on Hodgson Memorial Drive and the other in Rincon. CertusBank acquired them when the Georgia Department of Banking and Finance closed Atlantic Southern Bank in May 2011.

ABOUT CERTUSBANK, N.A.

CertusBank, N.A. is a subsidiary of CertusHoldings lnc. (formerly Etue Ridge Holdings Inc.) and has $57.8 billion in assets, 37 branch locations, three operations centers and offices in North and South Carolina, Georgia and northern Florida.

When we moved to Savannah 12 years ago, I brought with me my entire woodshop, my source of therapy and relief from the pressures of work. Among my floor tools was a grand old 1948 9-inch Model A South Bend metal lathe.

Lack of space for all this equipment was soon clear, and with no further use for the lathe I listed it for sale in the classified ads of this newspaper. Weeks went by and finally I got a call from an individual asking whether I still had the tool and what I wanted for it.

I had paid $1,500, carefully restored it to pristine condition and now I was asking only $750. The caller said he also had one and was offering it at $700 but had no takers either.

At the time I was baffled at the lack of response, but I was soon to learn a lesson that has stayed with me.

Frustrated, I decided I would list it on eBay, part by part. The interest was overwhelming, and in a few weeks I had sold the entire lathe and pocketed more than $2,200. The bids came in from Canada, the Midwest and California but none from the South.

The lesson is something I should have realized.

Small manufacturers, one- and two-man machine shops, tool-and-die makers, not to mention a host of other skilled blue collar jobs, were never a big part of our Southern culture. The small shops were often spin-offs from larger manufacturers where the shop owners had learned their skills, taken an innovative idea from their experiences, and started new businesses.

Metalworking craftsmanship as a hobby would also be less likely to be widespread in the Sunbelt. Before the Civil War, the Confederacy was largely agricultural, and the manufacturing base of the Union played no small part in the outcome of that conflict.

However, there was a time when manufacturing was an important part of Savannah’s economy. During World War II, the Southeastern Shipbuilding Corporation built 88 liberty ships in Savannah and employed thousands of people.

Most of the women and older male workers migrated or commuted to Savannah from rural areas for the work, some living in housing projects. When the war ended and demand dried up, they returned home, leaving little legacy of skilled labor in the city. (For the story see “On the Swing Shift: Building Liberty Ships in Savannah” by Tony Cope.)

There is a much underappreciated value that manufacturing brings to a community. Large employers not only bring jobs, but suppliers and service companies, new residents and consumer spending, housing demand, and tax revenues. New sources of philanthropy and community support are added benefits.

As important as creating an entrepreneurial culture is for our region, nothing has the immediate impact of the location in our region of a major employer. But, perhaps nothing is overlooked as much as the potential for innovation.

Take the late Stanford Ovshinsky, an undeniably brilliant inventor with no college background, who at one time made his living designing automation equipment for the automotive industry. That exposure to electronics eventually led him to create the rechargeable nickel-metal hydride battery. He also held patents on the re-writeable optical disc and flat panel display among others. His early instruction was as a lathe operator in Michigan.

Our economic development team is always trying to bring big manufacturing to our region in a hotly competitive world. It is manufacturing jobs where people are working together, sharing ideas over lunch or a beer to solve design and production problems. That collaboration can lead to innovations that themselves spawn new industries.

The 2011 Charleston Regional Development Scorecard, an economic comparison of nine southern cities done by Clemson University, echoes the SRI report to Savannah Economic Development Authority.

Savannah continues to rank last among its peers in the Innovative Activity Index. Using a scale in which the U.S. norm is 100, Raleigh’s score is 183 and Austin is literally off the chart — 270. Savannah’s score is 21. That is not a typo.

We are a generation behind, playing catch-up. We cannot hide among the soft folds of fluffy rhetoric about our city.

Russ Wigh is a professor of business. Email him at rdwigh@bellsouth.net.