Tennessee’s advanced energy sector is a rapidly expanding and lucrative growth sector in Tennessee and a source of high-quality jobs, according to a new report released today, Wednesday, June 17, 2015 by the Tennessee Advanced Energy Business Council (TAEBC) and the Howard H. Baker Jr. Center for Public Policy.
The Tennessee Advanced Energy Economic Impact Report is the first document of its kind that defines the scope and scale of Tennessee’s advanced energy sector and quantifies its economic impact. It identifies the number of jobs, contribution to state GDP and state/local taxes and number of companies associated with the state’s advanced energy sector.
Key findings from the report include:
- Advanced energy is a rapidly expanding and lucrative growth sector in Tennessee. Nearly 325,000 jobs are supported by 17,334 firms in the state’s advanced energy sector in 2013.
- Advanced energy requires skilled labor and thus is a source of high quality jobs in Tennessee.
The annual average wage of a worker in advanced energy was $48,764, which is well above the state average.
- Tennessee manufacturers benefit from a robust advanced energy sector.
Especially Tennessee’s automotive manufacturers that are integrating advanced energy technologies into their processes and products as a result of higher fuel economy standards.
- Advanced energy contributes significantly to our state and local economies.
Tennessee’s advanced energy sector contributes $33.4 billion to state gross domestic product, while workers in the advanced energy sector pay more than $820 million in sales tax to state and local governments.
- Advanced energy represents an opportunity to promote rural economic development.
Currently, almost 80 percent of advanced energy activity is centered in just 20 counties in Tennessee. Davidson County leads Tennessee’s advanced energy economy.
Rural Tennessee could benefit from further growth in advanced energy activity.
- Tennessee is not the only state vying for a piece of the advanced energy economy. Highlighting our assets and opportunities will provide Tennessee with a competitive edge in the recruitment and retention of the advanced energy sector.
Approximately 11 states including Arkansas, North Carolina, South Carolina and Florida are benchmarking and tracking their advanced energy economies.
“Advanced energy” is defined as any technology that makes energy cleaner, safer, more secure and more efficient. Rather than favoring specific technologies, advanced energy is technology neutral. Examples include electric and plug-in hybrid cars, lightweight composites for the automotive industry, natural gas fueled trucks, pollution control equipment, bio energy, high-performance buildings, more efficient industrial processes, power reliability, smart grids, combined heat and power and the latest power generation technologies.
Read the news release here.
The report is available online here.