Chattanooga has attracted an influx of growth over recent years, and when looking at all the area has to offer, it’s easy to see why. Business leaders looking to invest in the region will find a favorable tax climate, acclaimed high-speed internet services, the most resilient smart grid in the nation, and stunning natural beauty. The Scenic City is great for business.

In a recent study, SmartAsset ranked Chattanooga among its top 20 cities for best job markets in terms of potential growth, affordability, remote work, commute time, employment rates, and health insurance benefits. City officials and organizations are taking major strides to strengthen Chattanooga’s economy and boost job growth, reflected in part by low unemployment rates – which dropped to a historic low in April 2024 at 2.5%.

Manufacturing has long been the cornerstone of Chattanooga industry and continues to be a catalyst for economic growth. Last year, tire manufacturer powerhouse Nokian Tyres wrapped up a five-year ramp-up plan, which saw the Dayton plant grow from a 60-member launch team to a 500-colleague workforce. The tire maker has invested a half-billion dollars in this plant since breaking ground in 2017, including the addition of a state-of-the-art, 350,000-square-foot finished goods warehouse. Avail Enclosure Systems is also looking to expand with a $10 million investment in its Chattanooga facility and 82 additional jobs. Following a $100 million grant from the U.S. Department of Energy, battery material maker Novonix is poised in a six-year agreement with Stellantis to provide a minimum of 86,250 metric tons of synthetic graphite from Chattanooga’s Riverside plant, making this facility the first large-scale synthetic graphite producer for the battery sector in North America.

Another boon in the region comes from SK Food Group, whose investment of $205 million in a factory plant in nearby Cleveland aims to generate 840 jobs by 2030. This initiative is in collaboration with the Partnerships in Industry and Education (PIE) Innovation Center, which serves Bradley, Hamilton, and surrounding counties as an educational and industrial training facility.

Looking to the future of job growth in the area, officials are continuing to improve access to Chattanooga via the addition of nonstop flights to Chattanooga Airport (CHA) as well as a $28 million terminal expansion completed in 2024. After a furlough following the pandemic, Delta Air Lines resumed nonstop service from CHA to New York City. This is in addition to the 10 cities and eight major hubs available to Chattanoogans through direct flights, making it easier than ever to connect across the country.

Establishing connection across the city is EPB Fiber Optics, which just celebrated 15 years of delivering the world’s fastest community-wide internet. The quantum network in conjunction with the organization’s 25-gig internet service is a key component in attracting tech and data companies to Chattanooga, and it also plays a role in enticing the remote workforce to relocate to the Scenic City. In fact, TechNational ranked Chattanooga as the second-best city in the nation for remote work, listing internet connectivity among other enticements like coworking spaces, affordability, favorable tax rates, and public safety.

Among tech, logistics, and other sectors, several locally-known names continue to garner national acclaim. Sixteen Chattanooga-based companies landed the 2024 Inc. 5000 list of “Fastest-Growing Private Companies in America,” including MOCA Logistics, Steam Logistics, Taimen Transport, and Trident Transport. Software groups FreightWaves and WorkHound also made the list in the software sectors, while construction company Big Sky Landscapes took an inaugural spot in the top 500.

Chattanooga is also a good proving ground for startups. The Hamilton County INCubator is the largest business incubator in Tennessee and the third largest in the country, providing 127,000 square feet of office and manufacturing spaces for budding entrepreneurs. INC clients and graduates bring an estimated $70 million in economic impact to Hamilton County. In addition, organizations such as LAUNCH and CO.LAB offer many business development programs and training initiatives.

Another major sector in Chattanooga’s economy is the local tourism and hospitality industry. Over 15 million people visit Chattanooga each year and spend an average of $4.3 million every day. The 2023 Economic Impact on Travel Report released by the Tennessee Department of Tourist Development found that visitor spending in Hamilton County directly supported 12,770 jobs.

Leaders across sectors are continuing to make Chattanooga a welcome place for business, regardless of industry type or size.