World City Guide

Business

Business Profile
After a period of positive growth in the healthcare and music publishing industries, the US economy slowdown has hit Nashville and the impact of the attack on the World Trade Center swiftly impacted the city’s economy. Unemployment rose to 3.2% in the Nashville region. Nevertheless, this is still lower than the rest of Tennessee at 4.6% and the national average of 5.4%. The service industry and manufacturing have been badly affected in the state of Tennessee, with 3,400 and 1,500 jobs cut in those sectors respectively.

It is likely, however, that Nashville’s main industries will not disappear overnight, as the city has become a centre for healthcare companies – Nashville’s Columbia/HCA is the largest healthcare firm of its kind in the country. Healthtrust and Equicorp are also based here. In all, there are 14 healthcare companies within the city, generating annual combined revenue of some US$22billion. In addition, there are a further 12 investment and venture capital companies that deal primarily with healthcare. On the back of this success, biotech companies (one of the few industries to benefit from the attacks on the US) are looking at Nashville as a good place to invest.

This rather puts the music industry revenue of Music City USA (estimated at just over US$3.2billion annually) in the shade. However, the music industry has a much wider reach, as that income is spread across 200 recording studios, while the industry provides work for almost 6,000 union-registered musicians. It is estimated that about 25,000 people in Nashville work directly in the entertainment business. The music industry also embraces ancillary industries, such as publishing, the new media and broadcasting. Companies such as Gaylord Entertainment (who run the Grand Ole Opry, the Opryland Hotel, Country Music Television International, the renowned Acuff-Rose Music Publishing and several other related business operations) have a finger in every pie. It may be low income compared to healthcare but it is high profile. Everyone has heard of Nashville, because of its music industry. This obviously attracts an enormous number of visitors to the city – tourism revenue is currently running at US$2.2billion per annum.

Another area of development is new technology. Dell Computers recently chose Nashville as their first expansion in the USA outside their home state of Texas. Dell is building a manufacturing centre and a technical support centre, estimated to provide at least 3,000 new jobs over the next five years.
The main business districts are located in Downtown Nashville (private business and government offices) and the West End, around Vanderbilt University (financial and music businesses). Other music businesses are, of course, located around Music Row.

Business Etiquette
In a city used to seeing entertainment industry folk dressed down, the Nashville approach tends to be more casual than elsewhere in the USA. Some meetings will be conducted in jeans, although it is important for business visitors to gauge the situation correctly, as the city’s financial and healthcare executives can be as formal as their musical counterparts are informal. Few restaurants or clubs require a jacket and tie and casual-smart will suit most places.

Business cards should always be exchanged – only at the end of a meeting. More formal colleagues will prefer a business lunch to dinner, while in the entertainment industry, a social drink after work, followed by some music, would not be out of the ordinary. Southern hospitality may often lead to an invitation to a host’s home – an invitation sincerely meant and one that should be gratefully accepted. Southern states tend to be more conservative than the north, so visitors should limit themselves to moderate social drinking until they know their hosts. Bad language tends to be frowned upon, although again, the music business has its own rules. Courtesies are all-important and ‘Sir’ and ‘Ma’am’ will be frequently heard. If a host appears to be unduly formal, it is very likely due to the courteous Southern upbringing. Southerners tend to stick together too and side with fellow Southerners, so visitors should avoid talking about politics until they know whom they are dealing with.

Business hours are generally 0900-1700 Monday to Friday, although the entertainment businesses usually start and finish later.