Chattanooga Business

Advantageous Offerings for Chattanooga Businesses

With an ideal location, plethora of business resources, high-speed internet, and low cost of living, Chattanooga is good for business. The city’s favorable business climate has led to a robust network of startups, and far-flung organizations continue to seek out the Scenic City for home base operations.

In recent years, the state of Tennessee has been recognized for everything from being the state with the best business climate to leading the nation in small business employment growth, and Chattanooga is no exception.

Inc. magazine listed Chattanooga in its lineup of 50 best places to start a business in 2020, and at the onset of 2020, a survey from ManpowerGroup forecasted that Chattanooga would lead the country in job growth. By early March, the jobless rate in the metro area had sunk to a low 3.3%. Although the pandemic presented the area with its fair share of challenges, numerous businesses and sectors were still full steam ahead, and by the third quarter of 2020, the Chattanooga Area Chamber of Commerce had already worked on more than 65 prospects for the year, compared to only 48 prospects at the same time a year ago.

Advanced manufacturing continues to be the bread and butter of the Chattanooga area and is a large contributor to the local economy and unemployment rates. At the forefront of this industry is Volkswagen, which announced an $800 million expansion to its production plant in 2019. By the end of 2020, Volkswagen had added 475 jobs, and the auto giant also broke ground on a $22 million battery engineering lab that will add an additional 20 jobs upon its completion in the spring of 2021.

In the spring of 2020, Collegedale’s McKee Foods Corp. announced its plans for a nearly $500 million project that would add more than 480 jobs over the next 15 years, and that’s not all. Other notable expansions span a variety of sectors and include IT and cyber-security consulting company Conversant Group’s commitment to add 100 jobs by 2023 in an $8 million project, and Reliance Partners’, a Chattanooga-based commercial insurance agency, plans to undergo a $1.3 million investment at its Chattanooga headquarters that will add 100 jobs.

Media conversion company Legacybox doubled its space in 2020 and added 125 jobs, while Southern Champion Tray will work throughout 2021 on an $85 million manufacturing plant that will bring over 120 jobs to its Centre South Riverport location.

MFG Chemical moved its headquarters in 2020 from Dalton, Georgia, to downtown Chattanooga, and Land Rover Chattanooga celebrated expanding its Ooltewah facility in a $4.5 million upgrade. Nearby in Dunlap, Tennessee, automotive supplier Mann+Hummel added 100 jobs in a response to increased business, and Cleveland’s Whirlpool plant began filling 400 remote customer service jobs in the last half of 2020.

For every company that’s adding jobs and expanding its footprint, there’s one just starting out, and Chattanooga welcomes aspiring entrepreneurs with open arms and an impressive lineup of business incubators and accelerators. Run by the Chattanooga Area Chamber of Commerce, INCubator is the third-largest business incubator in the nation. This organization runs alongside other area resources such as The Enterprise Center, Lamp Post Group, and CO.LAB and was at 81% occupancy as of December 2020. Despite the COVID-19 pandemic, the INCubator attracted 13 new startups since the spring of 2020.

Also supporting the economic outlook of local businesses are private and public equity groups such as Tenth Street Capital, FourBridges Capital Advisors, Chattanooga Renaissance Fund, The JumpFund, BrightBridge, River Associates Investments, and Dynamo Ventures, to name a few. The Scenic City has also gained notoriety over the last several years for having some of the lowest startup costs.

Given Chattanooga’s strategic location near water, rail, and interstate systems, the city has a rich history as a logistics hub. In recent years, growth for logistics providers in the area has been extraordinary. Out of the 11 Chattanooga companies named to Inc. 5000’s 2020 fastest-growing companies, eight are in the logistics industry.

Top logistics providers such as Covenant Transport, a national leader in expedited truckload freight, and U.S. Xpress, the nation’s fifth-largest, asset-based truckload carrier by revenue, are headquartered in the Scenic City, and Arrive Logistics, Coyote, and Kenco Group, which has plans to nearly triple its workforce by the end of 2021, also have a major presence in the area.

In 2020, Trident Transport, a Chattanooga-based freight brokerage company, doubled its number of employees and expanded its footprint with the addition of a 16,000-square-foot office space, and newcomer Fulex has plans to double its warehouse space and add more jobs as well.

Meanwhile, FreightWaves, a transportation and logistics data and content provider, secured a $37 million investment over the summer of 2020, which vaulted it into the top 10 companies in Tennessee to raise the most venture capital.

The last decade has welcomed multiple distribution facilities from companies such as Amazon and FedEx, and 2020 saw the addition of 100 positions at Amazon’s Chattanooga and Charleston, Tennessee, distribution centers.

Rounding out the city’s hallmark business sector is tourism. Each year, Chattanooga’s tourism industry generates roughly $1 billion and is responsible for a wealth of hospitality jobs and new hotels.

Regardless of the industry, another main draw when it comes to doing business in the Scenic City is EPB’s fiber-optic network. With a 10-gigs-per-second service that was established in 2015, organizations – whether they are medical or manufacturing, technology or transportation – can conduct their work with efficiency at the helm.

Did you know?

In 2020, Project Voice (previously called The Alexa Conference), which is the No. 1 event for voice tech and artificial intelligence in America, decided to officially make Chattanooga it’s permanent home

Chattanooga Business

Chatt Choices™

UrbanStoryVentures

Urban Story Ventures 

MauldinJenkins

Mauldin Jenkins 

CodySims

Cody Sims – Ameriprise Financial Services, LLC

Advantageous Offerings for Area Businesses

With an ideal location, plethora of business resources, high-speed internet, and low cost of living, Chattanooga is good for business. The city’s favorable business climate has led to a robust network of startups, and far-flung organizations continue to seek out the Scenic City for home base operations.

In recent years, the state of Tennessee has been recognized for everything from being the state with the best business climate to leading the nation in small business employment growth, and Chattanooga is no exception.

Inc. magazine listed Chattanooga in its lineup of 50 best places to start a business in 2020, and at the onset of 2020, a survey from ManpowerGroup forecasted that Chattanooga would lead the country in job growth. By early March, the jobless rate in the metro area had sunk to a low 3.3%. Although the pandemic presented the area with its fair share of challenges, numerous businesses and sectors were still full steam ahead, and by the third quarter of 2020, the Chattanooga Area Chamber of Commerce had already worked on more than 65 prospects for the year, compared to only 48 prospects at the same time a year ago.


Advanced manufacturing continues to be the bread and butter of the Chattanooga area and is a large contributor to the local economy and unemployment rates. At the forefront of this industry is Volkswagen, which announced an $800 million expansion to its production plant in 2019. By the end of 2020, Volkswagen had added 475 jobs, and the auto giant also broke ground on a $22 million battery engineering lab that will add an additional 20 jobs upon its completion in the spring of 2021.


In the spring of 2020, Collegedale’s McKee Foods Corp. announced its plans for a nearly $500 million project that would add more than 480 jobs over the next 15 years, and that’s not all. Other notable expansions span a variety of sectors and include IT and cyber-security consulting company Conversant Group’s commitment to add 100 jobs by 2023 in an $8 million project, and Reliance Partners’, a Chattanooga-based commercial insurance agency, plans to undergo a $1.3 million investment at its Chattanooga headquarters that will add 100 jobs.


Media conversion company Legacybox doubled its space in 2020 and added 125 jobs, while Southern Champion Tray will work throughout 2021 on an $85 million manufacturing plant that will bring over 120 jobs to its Centre South Riverport location.


MFG Chemical moved its headquarters in 2020 from Dalton, Georgia, to downtown Chattanooga, and Land Rover Chattanooga celebrated expanding its Ooltewah facility in a $4.5 million upgrade. Nearby in Dunlap, Tennessee, automotive supplier Mann+Hummel added 100 jobs in a response to increased business, and Cleveland’s Whirlpool plant began filling 400 remote customer service jobs in the last half of 2020.


For every company that’s adding jobs and expanding its footprint, there’s one just starting out, and Chattanooga welcomes aspiring entrepreneurs with open arms and an impressive lineup of business incubators and accelerators. Run by the Chattanooga Area Chamber of Commerce, INCubator is the third-largest business incubator in the nation. This organization runs alongside other area resources such as The Enterprise Center, Lamp Post Group, and CO.LAB and was at 81% occupancy as of December 2020. Despite the COVID-19 pandemic, the INCubator attracted 13 new startups since the spring of 2020.

Also supporting the economic outlook of local businesses are private and public equity groups such as Tenth Street Capital, FourBridges Capital Advisors, Chattanooga Renaissance Fund, The JumpFund, BrightBridge, River Associates Investments, and Dynamo Ventures, to name a few. The Scenic City has also gained notoriety over the last several years for having some of the lowest startup costs.


Given Chattanooga’s strategic location near water, rail, and interstate systems, the city has a rich history as a logistics hub. In recent years, growth for logistics providers in the area has been extraordinary. Out of the 11 Chattanooga companies named to Inc. 5000’s 2020 fastest-growing companies, eight are in the logistics industry.


Top logistics providers such as Covenant Transport, a national leader in expedited truckload freight, and U.S. Xpress, the nation’s fifth-largest, asset-based truckload carrier by revenue, are headquartered in the Scenic City, and Arrive Logistics, Coyote, and Kenco Group, which has plans to nearly triple its workforce by the end of 2021, also have a major presence in the area.

In 2020, Trident Transport, a Chattanooga-based freight brokerage company, doubled its number of employees and expanded its footprint with the addition of a 16,000-square-foot office space, and newcomer Fulex has plans to double its warehouse space and add more jobs as well.


Meanwhile, FreightWaves, a transportation and logistics data and content provider, secured a $37 million investment over the summer of 2020, which vaulted it into the top 10 companies in Tennessee to raise the most venture capital.


The last decade has welcomed multiple distribution facilities from companies such as Amazon and FedEx, and 2020 saw the addition of 100 positions at Amazon’s Chattanooga and Charleston, Tennessee, distribution centers.

Rounding out the city’s hallmark business sector is tourism. Each year, Chattanooga’s tourism industry generates roughly $1 billion and is responsible for a wealth of hospitality jobs and new hotels.


Regardless of the industry, another main draw when it comes to doing business in the Scenic City is EPB’s fiber-optic network. With a 10-gigs-per-second service that was established in 2015, organizations – whether they are medical or manufacturing, technology or transportation – can conduct their work with efficiency at the helm.

Did you know?

In 2020, Project Voice (previously called The Alexa Conference), which is the No. 1 event for voice tech and artificial intelligence in America, decided to officially make Chattanooga it’s permanent home.

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