Volkswagen’s ripple effect throughout Chattanooga
"The announcement by Volkswagen is really going to make this a boom town,” said Chattanooga Councilman Moses Freeman.
The ripple of one announcement sent shock waves through Chattanooga’s business community, because of something called the multiplier effect. Councilman Freeman said great to see this happening.
"It’s going to be a very positive influence on the economic revitalization and development here in Chattanooga."
You don’t have to take just Councilman Moses Freeman’s word for it, ask Charles Wood of the Chamber of Commerce.
"The 2,000 direct jobs of course that creates other jobs in the market,” said Wood. “Each one of those people is going to put gas in a car. Whether it’s the dry cleaners down the street, or the pizza place, or the movie theater, all of those places will effectively see a boost."
It does not stop there, according to the Chattanooga Chamber; they believe this will have an even greater impact beyond Volkswagen.
"Based on our analysis we see an additional 3,600 new jobs beyond the two thousand direct as well as about $200 million more in gross payroll that will come in to the region as a multiplier,” said Wood.
That means this Volkswagen announcement could provide more than 5,000 jobs to Chattanooga and millions of dollars to spend which excites local business owners like Dale Wilson.
"It’s going to free up monies that can be spent in the community and in people’s neighborhoods.”
Wilson owns Blue Ivy Flowers and said more business would definitely allow her to expand.
"Now there’re three of us that work here, and we would be more than welcome to have some more people come to work here,” said Wilson.
Charles Wood of the Chattanooga Chambers added this is a time where local business may have to gear up and get ready for a significant increase in business.