Tennessee Can Learn From The Economic Impact Of TVA In Memphis opinion
The entire business community of Tennessee has been watching closely the some time-running debate around energy providers in Memphis.
As this issue is being considered, it is important to recognize that for businesses in West Tennessee and our entire business community, utilities are a core component of growth and prosperity for a city and the region as a whole.
Memphis plays an important role in Tennessee’s economy in many ways – from logistics and transportation to manufacturing, banking and finance, entertainment and hospitality, and the list goes on.
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How Memphis’s Economy Succeeded
Memphis is thriving and because of the city’s vital role in our economic growth and strength, we want to see it continue to grow and flourish even more than it is today.
Such economic growth requires a strong utility – one that focuses on more than just low-cost, reliable service. This requires a provider who is also a committed community partner.
The Center for Economic Development, part of the Memphis Chamber, recently released an economic impact study in which the Tennessee Valley Authority (TVA) details the many ways the city of Memphis invests in people, businesses and vitality.
TVA’s direct involvement in countless economic developments for Tennessee—and Memphis in particular—is creating lasting, tangible value for the people of Memphis.
In the five years included in the study, TVA’s economic growth efforts resulted in 16,000 high-paying jobs — 10,000 that were new, and more than 6,000 that were retained by businesses living in Memphis.
It is important to acknowledge why these companies either stayed or moved to Memphis. While many factors are involved in a decision, we know that businesses rank energy cost and reliability among the top reasons.
TVA’s relentless focus on maintaining low rates — with rates in Memphis ranking as second lowest compared to similar power company models — benefits not only Memphis’ residents and businesses, but the state as a whole.
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TVA plays a key role in economic success
Companies view Tennessee as a center of business, a place where they can run critical operations, and where they can locate their headquarters because they will receive highly reliable service from TVA and local power companies.
The report also highlights high quality and well-paid jobs as a result of TVA’s economic development efforts.
About 50% of these jobs created from 2015 to 2020 did not require a high school degree, yet they paid a median annual salary of $81,900 – far higher than the average annual salary in our state. This means that the jobs being created through these economic development efforts match the skills of many Memphians who are actively looking for jobs.
The jobs being created are bridging the unemployment gap and providing new opportunities. These are significant figures – and only possible as a result of economic development partners such as TVA.
Overall, this study shows what we know: TVA is one of the strongest assets we have for economic growth, and it has a distinctly positive impact on Memphis.
The economic impact and investment of TVA in ensuring the success of the people of Memphis and the city is evident.
Bradley Jackson is the president and CEO of the Tennessee Chamber of Commerce and Industry, which serves as the primary voice of diverse business and manufacturing business interests on key employment and economic issues facing public policy decision-makers in Tennessee.
This article was originally published on Memphis Commercial Appeal: How TVA’s Partnership Has Benefited the Economy of Memphis
