CRER director and chief economist Howard Wall took part in the Chattanooga Area Chamber of Commerce’s 2025 Economic Outlook Breakfast. He and Chattanooga city mayor Tim Kelly addressed questions about the state of the local economy:
Although there’s been a manufacturing renaissance nationwide, Wall said it’s been particularly strong in Chattanooga, constituting about 20% of job growth over the past 10 to 12 years. This benefits other sectors of the regional economy, he said.
Manufacturing accounts for about 14% of local employment, Wall said, greater than the roughly 8% nationwide. That’s a dramatic difference, he said.
It’s hard to predict the precise outcome of Trump’s tariff plan, but it’s unlikely to be good, Wall said. Oftentimes, proponents argue tariffs help protect domestic manufacturing. However, those protections are often limited because many foreign imports are raw materials needed for the production of goods, Wall said. The automobile and construction industries could be hit particularly hard.