Quad/Graphics, Inc.  announced today it will close five plants as part of its ongoing integration plans. The company expects operations to cease in Clarksville and at the following plants by the end of 2010:  Corinth, MS.; Lebanon, Ohio; Reno, NV.; and Dyersburg, TN. The Dyersburg plant had been previously announced for closure in the first quarter of 2011 by World Color Press Inc.; however, Quad/Graphics will accelerate its closure to this fall.

Quad/Graphics, an American commercial printing company, bought Montreal-based World Color Press, formerly Quebecor World in 2010. The two companies did not announce the deal’s value, but the transaction is expected to be worth between $1.3 billion and $1.4 billion. The deal brought Quad/Graphics into the Canadian market, as well as into some Latin American markets, such as Mexico, Brazil, Argentina, Chile, Colombia, and Peru. Quebecor World had filed for bankruptcy protection in January 2008 and emerged in mid-2009 under the name World Color Press.

“Today’s announcement is a major step in integrating operations and creating the most efficient and modern manufacturing platform in the industry. Through this plan, more clients will benefit from our industry-leading technology and automation, while continuing to receive top-quality, on-time services.” — Quad Graphics CEO Joel Quadrucci

The five plants announced for closure encompass nearly 2.7 million square feet and employ a total of approximately 2,200 employees. Most of the equipment housed in the plants will be shut down and scrapped, thereby permanently removing excess capacity. Quad/Graphics will consolidate work into plants with the most efficient and competitive platforms. It has developed a comprehensive plan designed to smoothly transition client work between facilities.

“We value the talents and contributions of employees impacted by today’s announcement, and want to help them with their career transition. No plant is closing because of employee performance or client service issues, but rather because we are moving work to locations with the most efficient platforms for serving our clients’ needs. To the extent possible, we’d like employees to continue with the company and we will review transfer opportunities with them.” — Quadrucci

“I’m pleased and grateful to the leadership of A.O. Smith for their continued faith in the state of Tennessee and in Tennessee workers,” said Tennessee Governor Phil Bredesen. “As one of the area’s largest employers, A.O. Smith has long been an economic engine for the local economy and the company’s impact will continue. I’m convinced A.O. Smith’s Tennessee workforce will have an important role to play in the company’s ability to meet the needs of its customers well into the future.”

“This announcement is the result of a lot of hard work by people at both the community and the state level,” said Commissioner Matt Kisber, Tennessee Department of Economic and Community Development. “This partnership demonstrates the value of working together to create and retain good jobs for our citizens and shows why Tennessee continues to be considered one of the premier locations in the U.S. for business investment.”

The  board members are: Mr. Todd Harvey, Byers & Harvey; Mr. Brad Martin, Lyle, Cook & Martin; Mr. Fred Landiss, F&M Bank; Mr. Jay Patel, Hilton Garden Inn; The Honorable Jerry Allbert, Montgomery County Parks; The Honorable Geno Grubbs, City Council; Mr. Steven Stroman, Batson Nolan; Ms. JoAnn Weakley, Weakley Business Services; and Ms. Pennie Smith, Courtyard by Marriott.

This year’s board will be chaired by Jay Patel, with Steve Stroman serving as his vice-chairman. Jerry Allbert was reappointed and sits as the immediate past chairman. Stroman is new to the board this year, as is Smith. All board members serve a three year term.

“I am looking forward to another great year with the Convention and Visitors Bureau and working with the board. This next year will be full of positive events for Clarksville and its tourism,” said Patel.

The holiday begins Friday, August 6 at 12:01 a.m. and ends Sunday, August 8 at 11:59 p.m. During the designated three-day weekend, consumers will not pay state or local sales tax on select clothing with a price of $100 or less per item, school and art supplies with a price of $100 or less per item, and computers with a price of $1,500 or less, a savings of nearly 10 percent on exempt items.

Examples of exempt items include:

• Clothing: Shirts, dresses, pants, coats, gloves and mittens, hats and caps, hosiery, neckties, belts, sneakers, shoes, uniforms whether athletic or non-athletic and scarves.
• School Supplies: Binders, book bags, calculators, tape, chalk, crayons, erasers, folders, glue, pens, pencils, lunch boxes, notebooks, paper, rulers and scissors.
• Art Supplies: Clay and glazes; acrylic, tempera and oil paints; paintbrushes for artwork; sketch and drawing pads; and watercolors.
• Computers: Central processing unit (CPU), along with various other components including monitor, keyboard, mouse, cables to connect components and preloaded software (Note: While the CPU may be purchased separately, other items must be part of a bundled computer package in order to be eligible.)

Clothing and school supplies valued at $100 or less per item are included, as are computers and other technology valued at $1500 or less per item.

State Rep. Joe Pitts, District 67

“This annual opportunity for parents and students to save money on school supplies helps put dollars back in the pockets of working families. However, everyone in the state can take advantage of the savings and that’s what makes this weekend great for all Tennesseans.” — State Rep. Joe Pitts

“People all across Tennessee could use a financial break and this sales tax holiday provides that relief,” said Pitts. “The Tennessee Sales Tax Holiday helps put taxpayer money back into the pockets of taxpayers and there’s absolutely nothing wrong with that.”

Please visit the Sales Tax Holiday Web site at www.tntaxholiday.com to learn more about the items exempt from sales tax. The Tennessee Department of Revenue also assists consumers via e-mail, Salestax.Holiday@TN.gov, and through its toll-free statewide telephone hot line, (800) 342-1003. Staff is available to answer questions Monday through Friday 7 a.m. to 5 p.m. Central Time.

This year’s members are: Jeannie Beauchamp, Chairman; Steve Kemmer, 1st Vice Chair; Charlie Koon, 2nd Vice Chair; David B. Smith, Immediate Past Chairman; J Runyon, Legal Counsel; Charles Foust, JR., Sec-Treasurer, Vice Chair, Finance/Administration; Katie Gambill, Vice Chair, Membership Services; Jim Durrett, Vice Chair, Military Affairs; Bill Roberts, Vice Chair, Public & Community Affairs and Mike Jones, Vice Chair, Business Development.

The  public is welcome to visit, tour the new office, and participate in games and giveaways. Inflatables will be available to keep children occupied. Refreshments will be served.

NASHVILLE, TN: Tennessee Governor Phil Bredesen and Economic and Community Development Commissioner Matt Kisber today announced plans to attend the 2010 Shanghai World Expo to promote trade, investment and tourism between the state of Tennessee and China. The state of Tennessee is a sponsor of the U.S. Pavilion for the event, which is expected to host 5-6 million of the more than 70 million visitors to the Expo which opened May 1, 2010 with the theme “Better City, Better Life.” Tennessee Revenue Commissioner Reagan Farr and International Investment Director Lori Odom will also accompany the delegation.

“Our state’s participation in the Shanghai World Expo is a unique opportunity to educate visitors from around the world about Tennessee, its quality of life and its business climate,” said Governor Bredesen. “Our state’s relationship with Chinese business and government leaders continues to grow and Tennessee’s participation is an important signal that our state is ready to expand business ties.”

Tennessee’s participation in the Shanghai World Expo is an important bookend to the Chinese government’s decision to participate in the 1982 Knoxville World’s Fair, the first time following the Cultural Revolution the Chinese government agreed to participate in a world event. The purpose of Tennessee’s participation in the Shanghai World Expo is to build relationships and expose Expo visitors to the Tennessee “brand,” eventually leading to additional investment, job creation and tourism.

“Since 2007, when Tennessee opened its office in Beijing, business opportunities between Tennessee and China have grown steadily,” said Commissioner Kisber. “We believe there are important opportunities for Tennessee companies to sell to Chinese customers, creating new job opportunities for Tennesseans and greater profits for companies.”

Governor Bredesen and Commissioner Kisber will depart for Shanghai on May 14, 2010 and return on May 22, 2010. During their visit, the Tennessee delegation will tour the U.S. and Chinese pavilions at the invitation of the China Council for the Promotion of International Trade and co-host an investment roundtable for Chinese business leaders interested in entering the U.S. market with the China Investment Promotion Agency.

Following the Shanghai portion of the trip, the Governor and Commissioner will meet with Tennessee companies operating in Hong Kong and then meet with members of the American Chamber of Commerce in Ho Chi Minh City, Vietnam to explore business opportunities for Tennessee companies there, primarily in infrastructure development, I/T and telecommunications, consumer goods, industrial machinery and energy.

About the Tennessee Department of Economic and Community Development

The Tennessee Department of Economic and Community Development’s mission is to create higher skilled, better paying jobs for all Tennesseans. The department seeks to attract new corporate investment in Tennessee and works with Tennessee companies to facilitate expansion and economic growth. To find out more, go to www.tn.gov/ecd or www.investtennessee.org.

The trip to Greenville is both timely and relevant because community leaders are hopeful that what happened for Greenville over the past 15 years is on the horizon for Clarksville-Montgomery County. The announcement of a new BMW plant in 1992 and subsequent expansions have transformed Spartanburg County, South Carolina. The plant is at the center of growth in the “Upstate South Carolina” region. The initial investment of $2.2 billion has created over 23,000 jobs in the state. According to a study by the University of South Carolina, the plant generates more than $1.2 billion dollars in salaries each year. It’s estimated that for every job at the facility, another 4.3 jobs have been created. In addition, thousands more jobs have been formed because of the automotive parts suppliers and research facilities that have invested in the area.

“The similarities between Greenville and Clarksville, with the attraction of Hemlock Semiconductor, make this year’s trip a great community development opportunity,” says James Chavez, President & CEO of the Economic Development Council. “We’ll get to see how their city has planned for growth, recruited new business and changed their economic landscape. The information we gather will help us as we create a vision for Clarksville and our direction for the future.”

Aside from the BMW plant and a thriving economy, Greenville boasts a revitalized downtown, world-class healthcare, award-winning schools and universities, a flourishing arts scene and breathtaking options for nature and sports enthusiasts.

Participants will have the opportunity to hear from Greenville’s mayor and talk with city officials about their downtown revitalization, public/private partnerships, growth demands, and parks/greenways development. The cost of the trip is $1,000 per person and includes transportation, lodging and meals. To register or for more information, contact Melinda Shepard at (931) 245-4341 or melinda@clarksville.tn.us.

Patrick McGaughey

The Clarksville Area Chamber of Commerce is sponsoring a national business seminar to help keep local businesses strong in a slow economy. “While the economy in Clarksville remains strong, outside influences can domino into our economy,” said James Chavez, president and CEO of the Clarksville Area Chamber of Commerce. The seminar, entitled “High Performance in a Low Economy” is being presented by international business consultant and speaker Patrick McGaughey.

In recent months, business associations including Realtors and Home Builders have said, “Pat’s take on the economy is right on and his solutions make so much sense.” McGaughey indicates that the low economy has become a perfect excuse to procrastinate or simply not do business. Fears and indecision go hand in hand to hurt all businesses trying to move forward. “We focus on helping businesses help their customers in making courageous purchasing decisions,” McGaughey said. “Building courage back into our customer base is the foundation of this presentation,” he added.

Prior to his consulting career, McGaughey spent over 30 years in broadcasting, business association management and medical administration. In addition to his consulting work, McGaughey is a faculty member for the United States Chamber of Commerce Institute for Organization Management at the universities of Arizona, Wisconsin, Georgia and Villanova. He is scheduled to be the keynote speaker at the upcoming conference for the Tennessee Chamber of Commerce Executives.

The “High Performance in a Low Economy” seminar will be held Wednesday, February 10, from 8:00 a.m. until 10:00 a.m. at the Clarksville-Montgomery County Economic Development Council, 25 Jefferson Street. As a co-sponsor of the event, the Clarksville Chamber is offering a special rate of $49 per person for General Admission, and a discounted rate of $35 per person for Chamber members. To register, contact Melinda Shepard at 931-245-4341 or melinda@clarksville.tn.us.

NASHVILLE, TN: Commissioner Matt Kisber of the Tennessee Department of Economic and Community Development today announced the launch of Tennessee Downtowns, a competitive community improvement program for cities and counties seeking to revitalize traditional commercial districts. The program is open to communities with downtown commercial districts established at least 50 years ago and ready to organize efforts for downtown revitalization based on the successful “Main Street Four-Point Approach to Downtown Revitalization^tm.” Applications are available online at www.tennesseemainstreet.org, and must be completed by February 5, 2010.

Tennessee Downtowns is part of ECD’s Tennessee Main Street Program and will award up to six innovation project grants. Successful applicants will also receive an 18-month program of technical assistance which includes training on downtown revitalization and historic preservation, an introductory site visit, attendance at a two-day downtown revitalization workshop and a grant of up to $15,000.

“Tennessee Downtowns is a natural extension of the Main Street program and serves as a valuable introduction for communities across the state to the critical concept of downtown revitalization,” said Commissioner Kisber. “I encourage communities to apply for this innovative program and take the first steps toward a rebuilding a thriving central business district.”

Communities that participate in the Tennessee Downtowns program may wish to continue a self-initiated downtown revitalization effort at the end of the program or apply for certification in the Tennessee Main Street Program through the competitive application process. Successful completion of the Tennessee Downtowns program does not automatically result in qualification for the Main Street program.

“A vibrant downtown is a crucial piece of the economic development puzzle for communities of all sizes,” said Rick Meredith, assistant commissioner for Community Development at ECD. “A groundbreaking program like this one will help communities to lay the foundation for sustainable economic growth.”

“The National Trust Main Street Center is very proud to see our partner in Tennessee adding such an innovative program which brings the resources of the Main Street Four Point Approach^tm to a larger number of communities,” says Lauren Adkins, assistant director for field services at the National Trust Main Street Center. “This program shows great promise and continues the strong record of success that Tennessee Main Street has achieved in recent years.”

Main Street revitalization is a comprehensive, incremental, self-help economic strategy that also focuses on developing public-private partnerships to enhance community livability and job creation, while maintaining the historic character of the district. For information about the Main Street Program and the Main Street Four Point Approach^tm, visit http://www.preservationnation.org/main-street/about-main-street/.

Tennessee’s Main Street program provides communities with technical assistance and guidance in developing long-term strategies that promote economic growth and development. The program provides information and assistance in forging public networking and training opportunities for downtown commercial districts.

For more information about Tennessee Downtowns, visit www.tennesseemainstreet.org.

About the Tennessee Department of Economic and Community Development:
The Tennessee Department of Economic and Community Development’s mission is to create higher skilled, better paying jobs for all Tennesseans. The department seeks to attract new corporate investment in Tennessee and works with Tennessee companies to facilitate expansion and economic growth. To find out more, go to www.tnecd.gov.

BusinessWeek’s fourth annual survey calculated information from several categories.  Affordability, safety, and school test scores were given the greatest weight.

“It makes sense.  We have beautiful parks, Greenways and a Riverwalk.  Families can afford to buy a home in safe neighborhoods.  They have easy access to jobs with more on the way through HSC. Clarksville really is Tennessee’s Top Spot” said Mayor Johnny Piper.

Other criteria included number of schools, household expenditures, air quality, job growth, family income, museums, parks, theaters, other amenities, and diversity.

Recently, Clarksville was also named by CNN as the fourth best city in the country to start a business and .

Clarksville is Tennessee’s fifth largest city and the ninth fastest growing city in the U.S.

Lynn Halliburton, a manager of the Office Depot on Wilma Rudolph Blvd. and store clerk, Aleixa Torres, take a momentary break. Curtis Davis Photo

The economic forecast for Clarksville and surrounding areas  through the holidays looks highly optimistic, suggesting that Clarksville’s economy is fairly robust overall. That’s not to say that the job market has recovered, however and some types of businesses will still be impacted by the economy. In short, many people are  struggling to stay a float amid  economic turbulence. However business owners  hold great expectations for the holidays.

When asked how business is faring in today’s economy, Silke Tyler, owner of Silke’s Old World Breads, Bakery & Café on College Street commented, “For the Christmas holiday season, I expect it to be very well. We have not felt any drop and we don’t anticipate it either. We have a wonderful customer base and we strive to keep that on a daily basis.”

Silke Tyler takes a moment to showcase a Christmas gift basket of assorted breads and holiday treats. Curtis Davis Photo

When asked what the business and sales outlook for the holiday season looked like, Lynn Halliburton, one of the managers at Office Depot said, “I think we’ll do as good as we did last year. Yeah, our sales are maybe up a bit from last year—I don’t think we’ll see a significant increase. Last year, it was slow with the “Recession” and it was a slow year in general. I hope to see an increase because we have some really excellent products and services here.”

Acting store manager Steve Hobbs expressed just how spectacular it was going to be for Electronic Express with the store expanding into a new building when asked if the season was going to be a good one for Electronic Express. “Yeah, I’m projecting it to be better than last year. In the last year it’s been up. I haven’t really seen a decline or a downturn in the industry. I haven’t really felt a recession. I’ve got a lot of feedback from customers that its hard but they’re still buying stuff. Customers are buying bigger ticket items more than more frequent smaller items. We’re not getting much foot traffic, but the foot traffic we do get is for bigger items.”

Hobbs continued, “We’re expanding into a bigger store — the old Circuit City building -and eventually we’re moving this store into that store. It’s definitely good because we’re kind of busting at the seams now—putting models next to each other and stacks of stuff on top. And the new store is a stand alone and far larger for our needs. Tentatively, we’re planning on being in the new building as soon as the store is up and running by the 21st of November, but before Black Friday for sure,” Hobbs said.

Steve Hobbs, acting manager of Electronic Express. Photo: Curtis Davis

An emerging trend is for customers to buy fewer products, but to buy big-ticket items when they do make a purchase. Even though economists are inundating us with information on how spending was better for October, some businesses may have to return from prematurely overstocking. During the interview, Hobbs also noted that consumers are still asking for credit cards. At this point is is worth noting the steep rise in both businesses and consumers getting and using more credit cards than before to stay a float during the economic turmoil this year. With the previous freeze on small business loans, credit cards continue to grow in use.

The year’s unemployment rate has continued to increase steadily and economists typically have projected, as in recessions past, that employment will be the last sector to recover because companies are not as likely to rehire so soon. So while the economy is doing better with all the stimulus plans such as Cash for Clunkers, and so forth, it will still feel like a recession to the vast majority of unemployed workers—especially with all the factories and companies that have laid off workers this year. Clarksville does have a growing job market with more businesses in one place than most places due to our proximity to the Fort Campbell area. For laid off workers, now is the time to invest in education or to educate oneself on new skill sets during spare reading time. Additionally, it is important to remain active in seeking employment and unemployment benefits due to a larger volume of callers. Volunteering now is a good way to expand one’s resume in the future and help others less fortunate.

Despite the overall positive reports, some managers were still hit by the realities of a shrinking consumer base. An anonymous restaurant manager of one of the big chains commented on how the economy was hurting them: “Business is really slow right now; I hope it picks up by Christmas.” Overall, managers are expecting some growth in sales from consumers this holiday season and think that this year will be better than last year regardless, and with the stimulus dollars in the economy, it almost has to be better for holiday sales.

NASHVILLE, TN: The editors of Site Selection magazine, one of the nation’s premier economic development publications, have ranked Tennessee among the five best states in the U.S. for best business climates. The announcement marks the seventh time in the past decade Tennessee has been listed among the top ten states for business climate. The state has been ranked among the top five states in five of the past seven years.  The closely watched annual rankings appear in the November 2009 issue.

“I am pleased Tennessee is listed once again among the top five business climates in the country. This is a very competitive ranking by a very well-respected publication,” said Commissioner Matt Kisber of the Department of Economic and Community Development. “We’ve worked hard to maintain our reputation as a state that is business-friendly by viewing job creation as a partnership between the state and local communities and designing projects according to a prospective company’s individual needs.”

The annual business climate rankings are determined by the number of new and expanded business facility projects in each state as well as perceptions in a survey of corporate site selectors across the country.  Site selectors were asked to rank the factors most important to them when determining a location for a new facility.  Some of those factors included transportation infrastructure, existing work force skills, and state and local taxes.  In the site selector “executive survey” portion of the rankings, Tennessee also ranked 5^th.

“It is gratifying that publications like Site Selection are recognizing Governor Bredesen’s Jobs Cabinet approach to economic development and the more than 170,000 new jobs and $27 billion in new capital that have resulted from it,” said Commissioner Kisber.

The Site Selection accolade is one of many that Tennessee has collected this year for its economic development efforts.  Southern Business & Development magazine named Tennessee a co-state of the year and Governor Phil Bredesen, Commissioner Kisber and Revenue Commissioner Reagan Farr were named to the publication’s Ten People Who Made a difference list.  Tennessee also won Area Development magazine’s prestigious Gold Shovel Award, which is presented annually to the state achieving the most success in terms of job creation and economic impact.

To read more about Site Selections annual business climate rankings, please visit www.siteselection.com.