Day Lancaster’s Take on International Companies Gaining Ground in Gwinnett

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Mike Chambers & Jack Haden Rep Jadow in Sale of 1.7 Million SF at Cobb West
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Day Lancaster’s Take on International Companies Gaining Ground in Gwinnett

Diverse Companies Call Gwinnett Home

ATLANTA, GA, NOVEMBER, 2015 – International companies seeking to gain a foothold in the United States are increasingly showing up in Gwinnett County.

“It’s been in the works since the ’80s so it’s not anything new,” said Day Lancaster, a commercial real estate broker with NAI Brannen Goddard. “I think there was a lull with the Great Recession that certainly put a dent in activity, but as the economy has returned we’re starting to see a pickup in activity.”

Currently there are 534 internationally-owned facilities employing 24,649 workers, according to figures provided by the Georgia Department of Economic Development.

Lancaster recently brokered a real estate deal for Haso Ltd., a Tokyo-based developer and manufacturer of high-quality hygiene and household cleaning products. The company will hire 170 workers and make a $7 million in capital investment. The company leased a 100,000-square-foot facility in Peachtree Corners. The Gwinnett facility will house all U.S. production operations for the company, as well as serve as the corporate office for president, senior staff, human resources, accounting, marketing and maintenance.

The recession not only cut the profits of American companies with large international operations, but also prevented foreign companies from expanding to the U.S. as well. Now Japanese companies are starting to make a comeback and those who have distributions operations are finding metro Atlanta, and Gwinnett County in particular, an attractive choice, according to Lancaster.

“The Gwinnett warehouse footprint gives you got lots of distribution types of building and it’s second to Fulton Industrial, if not ahead, in terms of square footage,” said Lancaster.

It’s no surprise that Gwinnett is a strong draw for international companies and nationals. The county is now “majority minority” with 25 percent of the population born outside the United States. According to one diversity index, there is 78.6 percent that two people meeting in Gwinnett are from different backgrounds.

While the county is perhaps best known for its large Asian population, the largest contingent of foreign firms are from Western Europe. Out of the top 10 countries represented here, nine are from the Continent and just one – Japan – is Asian, according to Nick Masino, executive director of the Gwinnett Chamber’s Partnership Gwinnett program.

“Some people think we must have a lot of Asian companies, but these are not international companies, but companies started by people who have moved to the United States to open up a small business,” he said.

International companies locate to Gwinnett for many of the same reasons as native-born firms. These include low cost of doing business, available real estate, a trained workforce and good schools and amenities, according to Masino.

In addition, there is a wider variety of housing options for both executives and workers along this stretch of metro Atlanta, according to Lancaster.

“The housing options, the lifestyle options, are probably better on the north side of town,” he said.

Close proximity to Hartsfield-Jackson Atlanta International Airport and a well-developed road and interstate system are always high on the list of must haves for companies considering the area.

When United Arab Shipping Company North America was seeking a location to consolidate its operations, the firm found Gwinnett provided the qualities it was seeking after looking at a variety of other locations around the country.

“We narrowed it down to Charlotte and the greater Atlanta area,” said Anil Vitarana, company president. “One advantage of Atlanta was really the availability of real estate. We were keen to purchase rather than lease a standalone building. We wanted to be close proximity to the big city and a nice airport, but we didn’t want to be in the city. We wanted a little more suburban location.”

The company shipping operations required staff to travel frequently and also meet with out-of-town clients, making access to the airport and international flights critical, he added.

The building on Spalding Drive in Peachtree Corners, also provided a location that was easily accessible for the company’s workforce. While about 50 of its 160 employees decided to relocate from other offices, most were hired locally, hired from another shipping company that left the market.

“They were already in the business and already trained, so I would say that was a bit of a stroke of luck,” said Vitarana. “We are in the shipping business and Atlanta, although there are a lot of logistics activity around here, the steamship industry is not one of the businesses that has been here for a long period of time.”

Another reason for Gwinnett’s success is its relentless pursuit of international companies. Both local officials and the state’s economic development department have helped ease the relocation of firms like China’s TravelSky Technology Ltd., according President Mark Zhang.

“The United States is new for Chinese companies so we don’t know a lot about it the local culture and legal environment,” said Zhang. “This team helped us to set up everything we needed.”

A leading IT solutions developer for the airline and tourism industries, Gwinnett also gave Travelsky easy access to some of its prime customers such as Delta Air Lines Inc. and TravelPort. The company will house its operations in the Gwinnett Commerce Center in Duluth. The project, which is expected to create 30 to 50 jobs, represents a $10 million investment in the community.

By the numbers
534 – Gwinnett County internationally-owned facilities
24,649 – Employees
Georgia Department of Economic Development

via Atlanta Business Chronicle