Athens-Clarke and the surrounding counties should soon see a boost from one of the world’s leading manufacturers.

Caterpillar, a manufacturer of industrial equipment, expects to break ground for a new plant within the next several weeks said Jim Dugan, a spokesman for the company.

The project, which is planned to be completed late in 2013, is expected to bring around 3,200 jobs to the area between the plant and its suppliers.

Jeffery Humphreys, director of the University’s Selig Center for Economic Growth, said the development will have a major impact on the local and state economy.

As Caterpillar — a manufacturer of industrial equipment — moves to Athens, it bring with it nearly 3,200 jobs. The construction of their Athens plant is expected to be complete in late 2013. JUSTIN JOHNSON/Staff

“The immediate benefit is that it expands the economic base,” Humphreys said.

The initial expansion will come as jobs are filled in the construction of the plant, which will be located at the intersection of old US 29 and GA 316. In the long term, though, employee incomes and employee spending will have a substantial economic impact, according to Humphreys.

“The larger economic base leads to work for more part time positions and positions for related services,” he said.

The project comes at a time when manufacturing positions in Georgia had been on their way out.

“We’ve lost a number of jobs in Northeast Georgia and Georgia as a whole during the great recession,” Humphreys said. “Most of those were related to construction manufacturing, but there was a broad based downturn.”

This trend was blunted to some extent in the Athens area, but not wholly avoided.

“Much of this can be attributed to the presence of the University, but even the University was not enough to shield the city from a downturn,” Humphreys said.
However, the manufacturing sector saw growth last year that many others did not, he said.

Mayor Nancy Denson said attracting Caterpillar to the area was the result of a joint effort by Athens-Clarke and Oconee counties and the state of Georgia. The two counties equally split the costs of incentives intended to draw the large manufacturer.

Denson said the incentives included the counties’ respective economic development authorities initially paying for the property and waiving 90 percent of the property tax, which will be gradually transferred to Caterpillar. The counties also agreed to cover the full cost of road, water and sewage extensions.

“The thing to remember here is that for 30 years that property has been empty,” Denson said. “Now we will be receiving 10 percent of a $200 million investment that will increase over 20 years.”

Dugan said that Caterpillar’s decision was based on a number of other factors as well.

Considerations for the company included proximity to ports in Savannah and Charelston, and state funded training programs, such as Georgia Quick Start. Perhaps the biggest factor, though, was the existing labor pool.

“It’s a buyers market and we have a plentiful supply of workers,” Humphreys said. “Some will need specialized training, but I’m sure there will be no problem filling positions.”

Denson said the largest beneficiaries of the Caterpillar plant will be the unemployed and underemployed in the area.

“These are the kind of jobs that have not been available in the area in almost a generation,” she said. “Now these jobs will be available for people that want or need to stay in Athens.”