Tennessee’s advanced energy sector outperforms the overall state economy

Tennessee

KNOXVILLE, Tenn. (WATE) — A report on the Advanced Energy sector in Tennessee shows that it is outpacing the state economy. The sector employs nearly 394,000 Tennesseans in more than 20,300 businesses that contribute almost $46 billion to the state’s GDP, according to the report.

According to the report, the sector created more jobs than in all other sectors combined in the state. In 2019, 393,756 workers were employed in advanced energy jobs, a 10% increase since 2018. State-wide, almost 15% of all Tennessee jobs are in advanced energy. The report also found that workers in the sector earn an average wage of $64,000, which is much higher than the state-wide average of $48,000.

The advanced energy sector contributed $45.8 to the state GDP, representing 12.2% of the total state GDP, according to the report. In total, the sector’s output has grown 8.2% since 2016. The report shows that the growth in employment, payroll spending, and businesses in the sector has outpaced the total growth for Tennesee’s economy since 2016.

The 2021 report also looked at the advanced energy sector within Tennessee’s metro areas and counties through analysis from the North American Industry Classification System and 2019 Census Bureau data.

The Nashville metro area is the largest contributor to Tennessee’s advanced energy sector, accounting for 30.5% percent of state AE employment. Second is the Memphis metro area, with a growth of 7.4% in the number of AE establishments doing business. The Knoxville metro area is the third-largest employer of AE workers, in total it saw a 10.3% increase in total payroll spending since 2016.

Advanced energy includes any technology that makes energy or transportation cleaner, safer, more secure, and more efficient. This includes wind, solar, and nuclear technologies, electric and plug-in hybrid vehicles, lightweight composites in the automotive industry, natural-gas fueled trucks, bioenergy, pollution-control equipment, smart grids, combined heat and power, high-performance buildings, more efficient industrial technologies, and power reliability.

The 2021 Tennessee Advanced Energy Economic Impact report builds on data first analyzed in 2015 and 2018. It identifies the number of jobs and businesses associated with advanced energy and calculates the sector’s contributions to state GDP and state/local taxes.

The 2021 Tennessee Advanced Energy Economic Impact Report was released by Tennessee Advanced Energy Business Council, a statewide organization that champions advanced energy as economic development and job creation strategy. The report was funded by the University of Tennessee and the Tennessee Valley Authority. For more information, visit www.tnadvancedenergy.com

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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