East TN, Obama, Economy (Knoxville, Kingsport: sales, real estate, home sales) - Kingsport - Johnson City - Bristol - Tennessee -The Tri-Cities area - City-Data Forum

Pocketplayer · 03-06-2009, 02:22 PM

I met w/a Real Estate agent this week and he told me to not buy property in East TN because the defense budget is going to get slashed and that will dramatically impact East TN.

Agree/ disagree?

kamoshika · 03-06-2009, 03:35 PM

That agent is clueless on both counts. It's the growth rate of the defense budget that's targeted for cutting, not the budget itself. The proposed defense budget for 2010 is 4 percent higher than this year's.

Besides, outside of Oak Ridge & Knoxville, the defense industry is a very small part of East Tennessee's economy. I believe the largest defense contractor in NE Tenn. is BAE Systems in Kingsport, which operates the federally owned Holston Army Ammunition Plant.

mbmouse · 03-06-2009, 06:07 PM

Nuclear Fuels in Erwin makes all the fuel cells for the aircraft carriers and subs...the only place in the world that does. However, cutting budget and cutting off these military crafts only source of fuel are two way different things, won't happen.
Then again, they employ only about 250 people. Now if the country/world stopped needing plastic and Eastman Chemical was heading under, we may have issues here.
Funny, that Realtor can't read seeing as the last report that the Feds just released last week rated Kingsport MSA (a part of E.TN) the 3rd highest appreciation rate in the country.
I personally deal with real-estate investors from all over the country, they aren't complaining at all about their r.o.r.

plipford · 03-06-2009, 07:13 PM

I am employed by the defense industry, and survived the Clinton cuts to the defense budget.

Let's put things in perspective, the AOL Time Warner merger a few years ago, involved more money than the entire aerospace / defense industry in our country. The lesson learned is that the aerospace / dense industry is a smaller part of our economy than a lot of people think. It is also a smaller part of the federal budget than a lot of people think.

Knowing this, I would look at the area in general. Any changes in the aerospace / defense industry would be insignificant, unless the area is highly invested in the aerospace / defense industry.

To be invested in the aerospace / defense industry, you require engineers and technicians. I wish that was true in the Tri - Cities area. I would find a job there in a heartbeat. As it is now, I plan to retire there. If you research the industries in the area, then you will not find, outside of Eastman, a hub of technology.

I am not saying this is a bad thing. If I am wrong, I would absolutely love hearing of a career opportunity in the area. Right now I am just counting down the days till retirement, and I can move to the Tri - Cities area.

Beretta · 03-06-2009, 07:34 PM

Let me guess, the realtor is NOT in East TN and would rather you buy something in his/her area?

ComicalMoodyDan · 03-07-2009, 08:40 AM

Actually Bristol and Kingsport ranked 3rd in the united states based on home sale price apppreciation in 2008. To read the article click on the link below.

Kingsport - Bristol TN-VA ranked 3rd in nation for home sales price appreciation in '08 - Kingsport Times-News Online

rccrain · 03-09-2009, 06:11 AM

You might want to look up the tricities largest employers and see how many are related to defense. Not many.

Does anyone know how many are employed by the helicopter company in Piney Flats? I'd guess < 100.

mbmouse · 03-09-2009, 06:57 AM

Quote:

Originally Posted by rccrain

You might want to look up the tricities largest employers and see how many are related to defense. Not many.

Does anyone know how many are employed by the helicopter company in Piney Flats? I'd guess < 100.

I heard they just laid off 35..........

and they are private and not military.

Wonder why the OP hasn't been back to this thread?

rccrain · 03-09-2009, 10:19 AM

I thought they made the type of transport helis that were used by the military ... I could be wrong. Do you know what the company is called?

I'd bet making million $ helis is a pretty cyclical business.

kamoshika · 03-09-2009, 11:24 AM

Edwards & Associates, the helicopter company in Piney Flats, mostly sells and services commercial aircraft but they signed a $2.8 million service contract w/ the DoD in '07. They primarily refurbish old helicopters and complete new ones for their managing owner, Bell Helicopter. According to Manta, they employ(ed) 120 at their Piney Flats location.