Area Development 2017 Annual Directory by Area Development

POWERFUL ECONOMIC DEVELOPMENT PARTNERS

IMPORTANCE OF AN INCENTIVES REVIEW PROCESS

REAL ESTATE SOLUTIONS FOR AUTO INDUSTRY

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A N D

F A C I L I T Y

P L A N N I N G

www.areadevelopment.com 2017 Annual Directory

November/December

SHOULD

URBANIZATION

DRIVE

the

SITE

DECISION?

Go to

The road to your company’s proﬁtability and success may run right though central and southern Indiana or southeastern Illinois. And in fact that road may look a lot like a highway, runway, railway or river port. That’s because Hoosier Energy has some of the best sites for distribution and logistical operations that the Midwest has to offer. If you’re building, expanding or relocating, you should make it a point to talk with us. Because while supplying you the power you need is job one, getting your product from point A to point B comes second nature. Let’s talk. You’ll ﬁnd Hoosier hospitality also means Hoosier accessibility. HOOSIERSITES.COM

812-876-0294

Hoosier Energy Rural Electric Cooperative is an equal opportunity employer.

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Vital. Useful. Updated Daily. The best information on site selection and facility planning available online • Current News: Real estate & industry news, and economic indicator reports updated throughout the day • Valuable Resources: Tax and incentive information, development contacts, and insightful surveys • Latest Studies, Research,

White Papers:

Aggregated from the top consultants, think tanks and institutions, and distilled into usable information • Reviewable Archives: Search the Area Development archives for content, opinion, and reports spanning the last five years from the top industry minds

Visit – www.areadevelopment.com

Providing What Others Don’t

CONTENTS 26

FEATURES

COVER STORY

16 Real Estate Solutions

Needed for Tech-Driven Auto Industry

On the verge of an automotive revolution, the CRE industry is working to meet the evolving needs of OEMs and parts suppliers.

19 The Importance of an

Incentives Review Process

SHOULD “URBANIZATION” DRIVE THE SITE DECISION? Companies have been following millennial talent to the urban locales this population cohort prefers, but as this group ages their lifestyle preferences — and your company’s location choices — may change.

Today’s reality requires companies to develop an incentives review process and give it due resources in order to obtain and keep valuable negotiated incentives.

23 Powerful Economic

Development Partners

The utility company is an unrecognized and underrated partner in the location decision process.

2017 ANNUAL DIRECTORY

An index to state information appears on page 39. State information is grouped by region. Listings of all state contacts and Select Sites contacts follow all regional sections and begin on page 99.

Exclusive Online Content

Visit this interactive directory offering Web and e-mail links to economic development organizations, GIS mapping and radius demographic reports, available buildings and sites listings, social media contact information, streaming videos, and more.

www.areadevelopment.com

NOW ONLINE... • Streamlining the Construction Project to Deliver Ahead of Schedule and Below Budget • Making The Best Use of Your Warehouse Storage Space • The Mountain in Your Location Decision: Discovering the Impact of Work-Life Balance Options on the Workforce • Location Notebook: Indiana Workforce Initiatives Attract and Retain Industry • Location Notebook: Kentucky Is Serious About Advanced Manufacturing • Location Notebook: Foreign Investment Making a Powerful Impact in Tennessee

Area Development® Site & Facility Planning (USPS 345-510) is published five times per year (Q1, Q2, Q3, and Q4 — and Annual Directory in December) at Richmond, VA, by Halcyon Business Publications, Inc., 400 Post Ave., Westbury, NY 11590. Periodicals postage paid at Westbury, NY, and additional offices. Single copies, $10. Yearly subscription U.S. & Canada, $75; foreign, $95.

AREA DEVELOPMENT

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

Volume 51 | Number 5 ANNUAL DIRECTORY

Quote:

In the aftermath of a hard-fought and often divisive campaign, it is worth recalling and reaffirming that the unity in diversity of the United States is one of the country’s greatest strengths. Ban Ki-moon (1944– ), South Korean statesman and politician and the current SecretaryGeneral of the United Nations

30 Canada’s Intent to Create

36 The Infrastructure

the World’s Largest Trading Bloc

Bandwagon

The Trump administration’s promise to rebuild the nation’s infrastructure leaves a lot of unanswered questions, but one thing is certain: the work is long overdue and will cost a lot more than the promised $1 trillion investment.

Canada’s signing of CETA offers a competitive advantage to companies choosing a Canadian location.

33 What’s Driving

Pharmaceutical Firms’ Siting Decisions?

A pharma company’s position in the drug life cycle chain affects where it will locate, as does its need for a skilled workforce and low taxes, among other concerns.

DEPARTMENTS 4 Editor’s note About Those Manufacturing Jobs…

6 In Focus Closing the Digital Gap

12 Front Line

8 In The Know • OECD Offers Positive Global Outlook • Challenges Ahead for American Workers • Only One Fifth of Employers Will Hire in Q1/2017 • Business Location Tracker

10 First Person John Hornick, Partner, Finnegan

Join Our Newsletter areadevelopment.com/newsletter Follow Us On twitter.com/areadevelopment

Defend Trade Secrets Act Gives Added Protection for IT

14 Front Line One-Year Update on the Revised Ozone Standard

104 Ad Index/

Web Directory

Online Database Resources www.facilitylocations.com Follow Us On www.fastfacility.com

POSTMASTER: Send address changes to Area Development, Circulation Department, 400 Post Ave., Westbury, NY 11590. Subscribers requesting address changes must provide both old and new addresses. © Copyright 2016 by Area Development® magazine. ISSN: 1048-6534. Printed in the U.S.A. Area Development® is a registered trademark of Halcyon Business Publications, Inc.

AREA DEVELOPMENT | 2017 Annual Directory

EDITOR’SNOTE

ANNUAL DIRECTORY/2017

About Those Manufacturing Jobs… Now that the presidential election results have been certified, both economic analysts and corporate executives are trying to figure out what to expect under the new Trump administration. If Trump follows through on his campaign promises of spending on infrastructure and revising personal and corporate taxes, as well as deregulation moves, the Organization for Economic Cooperation and Development (OECD) projects the U.S. economy will grow 2.3 percent in 2017 and 3 percent in 2018. According to the organization’s late November report, “In the aftermath of the U.S. elections, there is widespread expectation of a significant change in direction of macroeconomic policy.” The group’s chief economist, Catherine Mann, does warn that Trump’s anti-trade proposals could have negative consequences: “Protectionism and the inevitable trade retaliation would offset much of the positive effects of the proposed fiscal initiatives on domestic and global growth.” Trump has vowed to dismantle NAFTA, reject the TPP, and impose tariffs on China. In a highprofile move, he intervened in United Technologies’ plan to move jobs in its Carrier division to Mexico, negotiating a $7 million incentives package to keep about 800 jobs in Indiana. But is it realistic to expect all of the manufacturing jobs that have moved to other nations to come back to the U.S.? Most industry experts think not. U.S. manufacturing productivity is now at the highest level it has ever been, while its workforce shrunk by more than six million jobs from 1980 to 2010. There’s been a slight increase in manufacturing jobs since then, but it’s based on growth in advanced manufacturing which utilizes high-tech, automated processes such as robotics. In fact, the overall U.S. labor force participation rate (LPR) has trended downward since 2010, which could be tied in part to skill sets not matching up to today’s job opportunities, thereby forcing people out of the labor market. (Brian Corde, managing partner of Atlas Insight, explains the low unemployment paradox in our cover story this month.) So what’s really needed by those who want to work is further education and training. According to the Brookings Institution, “States and regions need to do more to retrain displaced…workers for jobs in expanding industries.” That might be the most realistic solution to the manufacturing job losses and economic woes that have polarized the electorate.

www.areadevelopment.com EDITORIAL E-mail: editor@areadevelopment.com Editor Geraldine Gambale Staff and Contributing Editors Dale D. Buss Craig Guillot Dave Claborn Cynthia Kincaid Mark Crawford Phillip Perry Dan Emerson Mark Schantz Tom Ewing Steve Kaelble Clare L. Goldsberry Karen Thuermer

DESIGN/PRODUCTION Art & Design Patricia Zedalis Production Manager Jessica Whitebook Production Assistant Talea Gormican EXECUTIVE Publisher Dennis J. Shea dshea@areadevelopment.com Sydney Russell, Publisher 1965-1986 ADVERTISING SALES William Bakewicz (ext. 202) billbake@areadevelopment.com Valerie Krpata (ext. 218) valerie@areadevelopment.com ONLINE SERVICES Digital Media Manager Justin Shea (ext. 220) jshea@areadevelopment.com Business Development Matthew Shea (ext. 231) mshea@fastfacility.com Web Designer Carmela Emerson Circulation circ@areadevelopment.com EXECUTIVE OFFICES

Editor

Halcyon Business Publications, Inc. President Dennis J. Shea Finance Mary Paulsen finance@areadevelopment.com

2016 Editorial Advisory Board Christine Bustamante National Co-Leader, Global Location and Expansion Services, KPMG

Scott Kupperman Founder, Kupperman Location Solutions, LLC

Gregory Burkart Managing Director, Specialty Tax Practice Leader, Duff & Phelps, LLC

Dan Levine Practice Leader, Kathy Mussio Managing Partner, Location Strategies and Economic Development Atlas Insight Oxford Economics, Inc. Dick Sheehy Director, Advanced Planning & Jamie M. Lominack Real Estate Manager, Site Selection, CH2M HILL Michelin North America Eric Stavriotis Senior Vice President, Bill Luttrell Senior Locations Strategist, CBRE Werner Global Logistics, Werner Enterprises, Inc. Thomas Stringer Esq., Managing Director Michael McDermott Consulting Manager, & Practice Leader, Site Selection & Business Global Business Consulting, Incentives, BDO Consulting Cushman & Wakefield, Inc. Dean J. Uminski Executive, Bradley Migdal Senior Managing Director, Site Selection Consulting, Crowe Horwath LLP Business Incentives Practice, Dan White Senior Economist, Cushman & Wakefield, Inc. Moody’s Analytics

Les Cranmer Senior Managing Director, Savills Studley Dennis Cuneo Partner, Fisher & Phillips LLP Tim Feemster Managing Principal, Foremost Quality Logistics Larry Gigerich Managing Director, Ginovus Stephen Gray CEO, Gray Construction Minah C. Hall Managing Director, True Partners Consulting LLC

AREA DEVELOPMENT

John Morris Leader of Industrial Services for the Americas, Cushman & Wakefield, Inc.

Business/Finance Assistant Barbara Olsen (ext. 225) olsen@areadevelopment.com

All correspondence to: Area Development Magazine 400 Post Avenue, Westbury, NY 11590 Phone: Toll Free: Fax:

516.338.0900 800.735.2732 516.338.0100

MEMBER of

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

We’re committed to Economic Development and Community Investment. From economic development programs to energy efficiency incentives, we’re helping businesses grow and thrive all across Upstate New York. We applaud these companies for their commitment to our region: Fage, Empire Brewing, Byrne Dairy and Yancey’s Fancy. Learn how our programs can benefit your business. Visit www.shovelready.com

www.nationalgridus.com Connect with us on

INFOCUS

Closing the Digital Gap Ben Grinnell, Managing Director, North Highland

In one of his last keynote speeches before his retirement, John Chambers, Cisco’s CEO of 20 years, predicted that more than one third of businesses today will be dead in 10 years: “The only ones that will survive will turn their companies into digital, techie versions of themselves, and many will fail trying.” Today even the most analog of businesses are working to close the digital gap. Data drives business and companies that don’t act on it decisively while preparing for digital inevitability face extinction. The important question is how ready are you to capitalize on this trend? Results from an August 2016 survey conducted by North Highland of more than 200 C-suite business leaders in the U.S. and U.K. stressed the importance of investing in and establishing more — and smarter — data sources, and in carefully and quickly harvesting that data to use it to manage by evidence. Ben Grinnell is managing director and global lead of the Technology and Digital Service Line at North Highland. He has spent over 15 years working with technology leaders of FTSE 100 companies and has extensive experience in delivering infrastructure and application architecture strategies and solutions. Grinnell’s current focus is on helping technology leaders to adopt digital practices and transform large IT functions.

For example, Boeing, the 100-year-old aerospace company and America’s biggest manufacturing exporter, announced in July 2016 a partnership with Microsoft to build a cloud-based platform for its portfolio of commercial aviation analytics tools. Traditionally known for developing and building state-of-the-art jet airliner technology, this move helped Boeing take advantage of more robust data intelligence. As a result, data in the cloud now helps Boeing manage inventory and optimize maintenance to help reduce flight delays caused by last-minute system malfunctions. By analyzing a large set of information, ongoing and in real time, Boeing gains insight on repetitive and redundant processes and is even able to build predictive models that can support planes from manufacturing through commercial operations. In a recent Area Development interview, MAPI President and CEO Stephen Gold noted, “…manufacturing is in the midst of a new revolution, driven by digitalization and the integration of cyber and physical systems. The most important new technologies being developed have the potential to dramatically increase productivity in the coming decades.” One area where productivity is increased by digitization is reduction of distance between the manufacturing site and the end consumer. Take, for example, the innovative, on-demand dental crown manufacturing process developed by dental supplier Henry Schein. The traditional process for dental crowns used to involve taking an impression of a patient’s teeth and shipping the impression to a lab where it was turned into a mold. Artisans then applied white enamel powder to the crown to match color and finally it was shipped back to the dentist for insertion in the patient’s mouth. The whole process could take weeks, even months to complete. Today, Henry Schein has digitized much of the crown-making process. A 3D-mapping image of affected teeth is taken and a dental assistant then designs the crown on a tablet. The design file is sent to an on-premise drilling machine about the size of a large toaster. Thirty minutes later, the crown is complete and ready for patient insertion. The entire design and manufacturing process takes less than an hour — and the dental chair gives patients a back rub while waiting. To drive market gains in today’s rapid pace of digitization, organizations must move decisively to align technology and digital with strategy and culture. Companies leading digital evolution have embraced the following operating tenets: giving authority to data, organizing around products and objectives rather than functions or geographies, and designing processes to continuously transform. Robotics, automation, IoT, 3D printing and other disruptors will continue to promote digitization in the manufacturing sector.

AREA DEVELOPMENT

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

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INtheKNOW OECD Offers Positive Global Outlook According to the Organization for Economic Cooperation and Development’s (OECD) recent Economic Outlook report, world growth is still tepid at 3 percent, trade growth is even slower, and inflation remains below target in most OECD economies. Yet, says OECD Secretary-General Angel Gurría, “there is reason to hope that the global economy may be at a point of inflection.” In fact, the OECD forecasts global growth of 3.3 percent for 2017 and 3.6 percent for 2018. Gurría notes that fiscal stimulus efforts planned in the U.S. and China, as well as other countries’ more active use of fiscal policy, offer “some prospect of the world exiting from the low-growth trap.” Extraordinarily accommodative monetary policy has led to very low interest rates and created “fiscal space”

in which an annual increase in public spending of a half percent of GDP could be financed for several years in most countries without increasing the debtto-GDP ratio in the medium term. The OECD calls for this spending to be focused on areas that boost growth, including investment in high-quality infrastructure, education, and worker skills. Gurría also warns against the use of protectionist policies to boost demand for domestic production. For 2016, world trade volumes are expected to expand by less than global GDP for only the third time in the past 30 years. Helping displaced workers with “strong social safety nets” and adequate training and education to facilitate mobility is better than raising barriers to trade, he says, which would just raise prices and harm living standards for all.

Challenges Ahead for American Workers A Pew Research Center analysis of government jobs data finds that for the past several decades employment has been rising in jobs requiring higher levels of preparation — more education, training, and experience. This fact is not lost on American

Most workers see continuous training as essential or important to career success. % saying training/skills development throughout their work life will be… 54% Essential 33% Important, but not essential 12% Important Source: Pew Research Center

AREA DEVELOPMENT

workers. A new Pew Research Center survey of more than 5,000 adults, conducted in association with the Markle Foundation, confirms the fact that U.S. workers know new skills and training are vital to their future job success. Of those surveyed, 54 percent of those in the workforce say it will be essential for them to get training throughout their work life in order to keep up with changes in the workplace. In fact, 35 percent of workers — including the 27 percent holding a bachelor’s degree — say they don’t have the education and training they need to further their careers. During the past 12 months, 45 percent of these employed adults got extra training to improve their job skills. The job categories with the highest growth tend to require higher social skills, analytic savvy, and technical prowess, according to the research center’s analysis. Detailed understanding of how to use computers is “extremely” or “very” important, as is the ability to work with those from diverse backgrounds and training in writing and communications — all needs cited by 85 percent of those surveyed.

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

Studies/Research/Papers on Area Development Online.

Track business relocations and expansions on Area Development Online.

We cull insightful corporate real estate-focused studies, research, and papers from credible industry sources at www.AreaDevelopment.com/Studies.

We track announcements of all significant investment and job-creation projects throughout the United States and Canada at www.AreaDevelopment.com/NewsItems.

BUSINESS LOCATION TRACKER Auto Supplier to Establish Global Headquarters in Detroit BAE Systems Expands San Diego Shipyard A leading provider of ship repair, maintenance and modernization, conversion, and overhaul services for the Navy and others, BAE Systems received a new 950-foot-long, 55,000-lifting-ton floating dry dock at its shipyard in San Diego, Calif.

Adient, the world's largest global automotive seating supplier, is investing $50 million to renovate the Marquette Building in Detroit’s historic financial district for its global headquarters, bringing 500 jobs to the city, including 100 new ones.

Specialty Coffee Roaster to Open Virginia Manufacturing Facility Peet’s Coffee will invest $58 million to establish an East Coast 175,000-square-foot manufacturing operation in the City of Suffolk, Va., that will create 135 new jobs.

Tech Services Firm to Create 1,500 Jobs in South Carolina CompuCom Systems, Inc., a leading technology infrastructure services company, is locating its new global headquarters operations in Lancaster County, S.C., representing a $41 million investment.

Electric Car Maker Selects Arizona for Its Operations For its electric car manufacturing operation, Lucid Motors has selected Casa Grande, Ariz. The facility is expected to bring over 2,000 new jobs and more than $700 million in capital investment to the region by 2022.

Shaw Industries Completes New Georgia Manufacturing Facility New Distribution Hub for New Mexico Valley Cold Storage and Transportation, which ships goods in New Mexico and Texas, will invest $14 million to build a new 105,000 square-foot facility in Santa Teresa, N.M.

Food Manufacturer Expanding in Tennessee Leclerc Foods will establish its U.S. headquarters and expand production operations in Kingsport, Tenn., investing $49 million and adding 105 new jobs to the 100 already there.

The largest producer of carpet tile in North America, Shaw Industries Group, Inc., has completed construction of a new manufacturing facility located in Adairsville, Ga., with initial employment of 170 ultimately reaching 500 workers at full production capacity.

Only One Fifth of Employers Will Hire in Q1/2017 U.S. employers are cautiously optimistic about hiring plans heading into 2017 according to the latest ManpowerGroup Employment Outlook Survey released in mid-December. Of the more than 11,000 U.S. employers surveyed, 19 percent anticipate increasing staff levels in the first quarter of 2017, while only 6 percent expect to reduce payrolls, 73 expect no changes in their workforce count, and 2 percent are undecided. Nationwide, employers in all 13 industry sectors expect payrolls to increase during Q1/ 2017, with the leisure and hospitality sector projecting the most gains (27 percent). From a geographic perspective, employers in Oregon, Hawaii, Florida, Iowa, California, and Oklahoma report the strongest net employment outlooks, while Wyoming, Puerto

Rico, North Dakota, West Virginia, and Montana project the weakest outlooks. “In the wake of recent political events the majority of U.S. employers are now cautiously optimistic and intend to increase or keep their headcount stable for the next three months,” said Kip Wright, senior vice president of Manpower North America. “This a positive sign for job seekers and the economy at the start of 2017. But not all skills are created equal. We continue to see significant differences between industries and employers demanding increasingly specific skills to fill positions. Ensuring people can prosper and businesses can compete depends on developing a U.S. workforce that is prepared for the jobs of today, tomorrow, and the future.” AREA DEVELOPMENT | Q4/2016

FIRSTPERSON JOHN HORNICK

PARTNER

FINNEGAN

You obviously see a huge opportunity for 3D printing to bring jobs back to the USA. What types of jobs do you see given that the U.S. offers “high intellectual capital” as you note in your book, 3D Printing Will Rock the World? Hornick: The technology lends itself to customization of products, making complex, one-of-a-kind parts, contrary to mass production that requires large factories, economies of scale, and low-cost labor. Where 3D printing provides benefits is one-off, customized, highly complex parts that lend themselves to being made in smaller factories, making these parts or products where they’re needed in a regionalized model. It’s already happening. There are close to 1,000 of these small regionalized 3D printing factories in the U.S. and thousands or tens of thousands around the world. Some are traditional machine shops that have added 3D printing to expand their capabilities, and some are just 3D printing facilities, in some cases making prototype parts and in some cases making end-use parts. There is a lot of infrastructure that comes along with those businesses, such as machine manufacturing, materials development and manufacture, software development, maintenance of the machines, and a lot more. You mention that 3D printing “can break the boom-and-bust cycle of chasing the next cheap labor force.” Can you explain how that might happen? Hornick: The U.S. was the manufacturing powerhouse based on its labor through World War II — then labor became too expensive and shifted offshore. Japan then became the powerhouse of manufacturing in the 1980s, and the U.S. looked at that model for manufacturing and quality. Then the bubble burst in the early 1990s and manufacturing shifted to China. Now the same thing is happening there — costs are going up; labor rates are approaching what workers in the U.S. make; and the boom in China may be on its way to a bust. Manufacturing will then move someplace else. 3D printing and robotics, for example, will make manufacturing more regionalized in smaller companies doing customized manufacturing.

AREA DEVELOPMENT

So that is what you mean when you mention in your book that 3D printing can “break the grip of centralized manufacturing and, in fact, may no longer be needed”? Hornick: There are some things that seem to be viable that aren’t — and some that are. You can 3D print the parts you need for customization then make the other parts conventionally. Some people believe 3D printing may shift car manufacturing from a centralized location [like Detroit] to the dealer, which makes sense. 3D printing gets back to that customization — specify what car you want, which may look very different than what we have now — and customize the features. The technology will continue to develop and lends itself to customization as well as regionalization. Why not have the car customized at the dealer? Maybe that’s how the automotive industry adapts to this technology. Do you see regionalized 3D printing as a way to reduce the problems of shipping and its high costs? Hornick: If you regionalize manufacturing, you shorten the supply and distribution chain. The closer you make the product to where it’s being used, the less costly it will be. There’s no warehousing or inventory involved. For example, Caterpillar has to warehouse tens of thousands of replacement parts to cover the machines they’ve built for the last 20 years that are still in use. Can you comment on the idea of making replacement parts, such as aircraft parts, in remote places where shipping might be a two- to threeday process, or stocking inventory too expensive? What about IP and infringement issues? Wouldn’t IP owners rather make and sell the replacement parts? Would automakers like it if repair shops could print the replacement parts? Hornick: Many companies have already 3D printed replacement parts. We tend to think of replacement parts as something we install and it lasts for several years like the original part. What 3D can do is provide interim parts or “sacrificial” parts to get the airplane or the heavy equipment out of a remote location and to a repair shop where replacement parts could be installed. It’s a complex issue. If you’re talking about repairing something, that’s probably not patent infringement. The trouble with 3D printing

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

from that perspective, making a 3D part in a remote location could be considered reconstruction, and the IP owners might object to that in some cases. However, OEMs might have limited ability to enforce their rights. The question is do you want to roll with the technology or do you want the technology to roll over you? Adapt to it and adopt it. Economic development organizations like to attract large manufacturers that can bring in big plants and hire hundreds of employees. What will small, independent 3D printing service bureaus do for the job market vs. the large factories that employ hundreds of people? Hornick: The economic development people should be thinking about education and training of local people so they can design for and use this technology, and many may start their own business. The biggest challenge is designing for 3D printing for the many applications for which the technology will be beneficial. They need people to operate the machines, perform the postprocessing steps, and write the program software for all the different applications. I talk to people all the time who say they can’t find the people with the necessary skills to do the job. Manufacturing away from control — away from the oversight

Coming to

of the large manufacturers or IP owners — is definitely disruptive to mass production. As I say in my book, all of this eliminates the need for mass production and economies of scale. Thus, even if 3D printing does not replace mass production, it could disrupt or destroy the need for it. These are the reasons that people who ask if 3D printing will ever be capable of mass production may be asking the wrong question. More importantly, when people can 3D print almost any part away from control, mass production may be displaced by production by the masses.

THE ASSIGNMENT John Hornick is a partner with the Finnegan intellectual property (IP) law firm, having founded the firm’s 3D Printing Working Group. Hornick advises and educates clients about 3D printing and the IP issues of this rapidly developing and potentially disruptive technology. Through his award winning book, 3D Printing Will Rock the World, you get the distinct impression that Hornick believes this technology has the ability to revitalize U.S. manufacturing and encourage reshoring, bringing new job opportunities for a 3D workforce.

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AREA DEVELOPMENT | Q4/2016

FRONTLINE

Defend Trade Secrets Act Gives Added Protection for IT

he Defend Trade Secrets Act (DTSA), signed into law on May 11, 2016 by President Obama, has received wide industry praise from manufacturers including Boeing, Caterpillar, Corning, Eli Lilly and Co., General Electric, Honda, IBM, Intel, Johnson & Johnson, Procter & Gamble, Siemens, Microsoft, and United Technologies, as well as organizations such as the Alliance of Automobile Manufacturers, the Software & Information Industry Association (SIIA), the National Association of Manufacturers (NAM), and the U.S. Chamber of Commerce. Matt Lavoie, spokesman for Caterpillar, says, “Caterpillar has publicly supported the act, having sent numerous letters to Congress. We feel it’s important to protect intellectual property for companies like Caterpillar.” And NAM writes, “Trade secrets are vital to the competitiveness of companies throughout our economy, and the threat to these innovations is becoming more serious and more complex. By creating a strong, uniform body of trade secrets law nationwide, the DTSA ensures that our laws keep pace.” Government officials point out that trade secrets are worth $5 trillion to the U.S. economy, and losses can cost between $160 billion and $480 billion a year. Government data further points out that trade secrets comprise as much as 80 percent of the value of a company’s knowledge portfolio. DTSA, which extends the Economic Espionage Act of 1996, essentially gives trade secret owners the option of using federal law to file trade secret lawsuits. Prior to DTSA, only state law authorized these lawsuits. Many see DTSA as critical given the growing rise in trade secret theft from foreign hackers, nation states, and rogue employees interested in obtaining U.S. businesses’ trade secrets. Jule Sigall, assistant general consul of IP Policy and Strategy

AREA DEVELOPMENT

By Karen E. Thuermer

for Microsoft, points out that prior to DTSA owners of copyrights, patents, and trademarks could go to federal court to protect their property and seek damages when their property was infringed upon, but trade secret owners could not.

Importance to Technology Companies Unlike patents, which give a set of exclusive rights to an inventor or assignee for a limited period of time in exchange for detailed public disclosure of an invention, trade secrets are not necessarily technical, but can be anything of commercial value that is not public. Sigall stresses that trade secrets are especially important today for technology companies, big and small. “Consider Microsoft’s Cortana, for example, which is our personal digital assistant,” he writes in a blog. “Behind Cortana sits a vast amount of technology developed or enhanced in-house by Microsoft — voice recognition; language translation; reactive and predictive algorithms that can synthesize context, location and data, and interface with the vast resources of the Bing search engine index; and a complex array of cloud servers to crunch and serve data in real time. This technology represents tens of thousands of hours of research, trial and error, and continued improvement as Cortana is adapted for new devices and new scenarios.” Another important aspect to DTSA is how it impacts hiring practices. Employees cannot be prevented from working for competitors due to their knowledge of trade secrets. Conditions on employment, however, must be tailored to the threatened misappropriation. An example: bakery-café chain Panera sued pizza chain Papa John’s, claiming its former head of IT was using Panera’s trade secrets to facilitate small orders and catering in his new employment with Papa John’s.

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

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FRONTLINE

One-Year Update on the Revised Ozone Standard

eptember 30th marked an important clean air deadline. That’s when governors had to send EPA a list of in-state regions judged to comply, or not, with the revised ozone (O3) standard, changed one year earlier, October 1, 2015. EPA tightened the standard, from 75 parts per billion (ppb) to 70. Ozone is formed mostly from two common and ubiquitous precursor pollutants — nitrogen oxides (NOx) and volatile organic compounds (VOCs). At certain levels, O3 can cause lung and respiratory problems. The governors’ assessments are based on air-quality readings and related factors such as emissions sources and geography. Importantly, these are not final assessments. To the contrary, EPA will review the governors’ work. If EPA disagrees with a governor’s assessment, it will give notice by June 2, 2017, with final determinations made by October 1, 2017. This is not entirely an apples-to-apples review. The governors’ work is based on air-quality data from 2013, 2014, and 2015. EPA’s review will use data from 2014, 2015, and 2016. Obviously, different data could lead to different conclusions. EPA’s compliance determination is a critical Clean Air Act requirement. Noncompliance also includes a ranking of how excessively a region exceeds the standard. Rankings start at “marginal” and go to “extreme.” Each ranking adds pollution controls and sets specific compliance deadlines. Cities and metro areas have struggled with the ozone standard for decades. At the end of October, EPA said it was still gathering the governors’ reports. However, the Association of Air Pollution Control Agencies has compiled a portfolio of 17 reports from its membership. Those reports provide a “first draft” insight into the nation’s ozone profile and the likely direction and extent of upcoming regulatory programs. Following are some summary observations (except for California, which is

AREA DEVELOPMENT

By Tom Ewing

always an exception in discussions about ozone): • Some entire states are newly compliant. Governors in five states —IN, NC, SC, WA, and WV — conclude their entire state is in compliance. This is a big deal, particularly for Indiana and North Carolina, which had concerns that the Charlotte metro area might slide back to nonattainment status under the lower standard. Indiana’s Lake and Porter counties, adjacent to Chicago, have been out of compliance for years — no longer, even with a lower standard. • Four states have only a single noncompliant region. KY, NM, NY, and VA each report just one multicounty nonattainment area, with the rest of the state in attainment. Kentucky lists portions of three counties — Campbell, Kenton, and Boone, which are regulated as part of the greater Cincinnati air shed, as nonattainment. Virginia lists four counties — Arlington, Fairfax, Loudoun, and Prince William — as nonattainment, down from eight counties under the old standard! And New York lists every upstate county in compliance with the new standard, with just the nine New York metro area counties as nonattainment. • Big city metro areas are still the core problem areas in several reporting states. These include AZ, CO, MI, OH, PA, TX, and UT. However, of the reports that include numerical readings, most ozone levels are on the low side — ranging from 71 to 74 ppb. This is important for evaluating what it might take to squeeze out final increments of pollution, and related costs. As noted, the governors’ assessments really just start the regulatory next steps. And data from many states still needs to be added to complete the national picture. But this preliminary look, based on representative states with familiar problems, shows likely limited program expansion and pollution readings on the low side in places where one might expect much higher numbers. That’s an optimistic way to at least start thinking about next steps.

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THE STORY OF

BUSINESS IN

LAS VEGAS IS A STORY

WITHOUT LIMITS

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AUTOMOTIVE/REAL ESTATE

Real Estate Solutions Needed for Tech-Driven Auto Industry On the verge of an automotive revolution, the CRE industry is working to meet the evolving needs of OEMs and parts suppliers. By Jeffrey Green, Managing Director, Global Occupier Services, and Automotive Specialty Practice Group Leader, Cushman & Wakefield; and Paul Thurston, Vice President of Development and Pre-Construction, Becknell Industrial

he automotive industry, familiar with disruption, has entered a new and exciting wave of transformation and growth. We are on the verge of an automotive revolution, sparked by technology-driven trends such as diverse mobility, autonomous driving, electrification, and connectivity. Real estate solutions to these changes require us to rethink how we meet the needs within an evolving marketplace. We are witnessing an increased need for industry-centric manufacturing capacity globally and in the United States, in particular. In fact, despite major headlines focusing on manufacturing growth in Mexico, many of the world’s leading auto manufacturers (OEMs) — including Volvo, BMW, Mercedes, FCA, and others — are building or expanding their operations domestically. And as OEMs grow their footprints, their supplier bases continue to expand as well.

AREA DEVELOPMENT

Additionally, the rush to produce electric vehicles has inspired several new entrants to plan and build new auto plants as they attempt to compete with the likes of Tesla. Among them are Faraday Future, which is constructing a $1 billion factory in Nevada, and Lucid Motors, which just recently announced plans to build a $700 million factory in Arizona.

The “Right” Real Estate What do these companies and their suppliers need to reach their goals within the timing pressures of a dynamic market? Skilled labor, for sure; but they also require the right real estate to produce vehicles and parts. The real estate requirements present a couple of challenges. First, few available and existing auto plants can accommodate the evolving specifications of this sector. Second, the overall supply of better-quality industrial buildings continues to shrink commensurate with overall improvements in the industrial real estate market. For context, the industrial sector at the end of the third quarter of 2016 had registered 26 consecutive quarters of net occupancy gains. The national industrial vacancy rate continued to decline, falling by 90 basis points from the prior year to 5.6 percent. Industrial vacancy tightened in every

region of the U.S. in the third quarter and is currently tracking a full 280 basis points below the 10-year historical average. The U.S. manufacturing sector has witnessed steady occupancy gains since it hit bottom in 2009, with more than 220 million square feet of net positive absorption in the recovery since then. As a result, vacancy rates for U.S. manufacturing have fallen by 190 basis points during this period to a current level of 5.2 percent — well below the 10-year average of 6.6 percent. This tightening of quality industrial product across the country has led to increased new construction, especially build-to-suits. Meanwhile, manufacturing construction is recovering. Since 2010, 115.7 million square feet of manufacturing space has come online and the pace of deliveries is increasing. An average of 21.8 million square feet of new manufacturing product added during the past three years is approaching the pre-recession average of 24.4 million square feet. The automotive industry’s highlevel design requirements and supply/demand imbalance are combining to generate a surge in the development of next-generation manufacturing product in key markets nationwide.

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

Next-Generation Facilities

plans in house (i.e., efficiently) also reduces the amount of permitting time for a project and ensures a higher-quality project at a lower construction cost.

Millions

Today’s auto parts manufacturing and assembly plants are being built with substantially higher ceiling heights, wider column spacing, more flexible loading, higher power, greater ventilation, and more employee and truck parkProximity to Assembly Plants ing than in the past. In fact, 36-foot ceiling heights, 60-foot Supply chain considerations — such as distance to cusloading bays, and 50-foot by 50-foot column spacing are tomers and suppliers — have been and remain crucial to becoming the new normal. Manufacturing bay spacing is automotive plant site selection. The Rust Belt remains a going as wide as 100 feet, and many companies require popular region for OEMs; however, there are a number of space for crane bays, which are used to swap out dies in the additional “hot” markets emerging. various manufacturing processes. To that end, today more than ever before, automotive supThe flow of a manufacturing facility can be critical to a pliers are required to deliver parts to an assembly plant in a new process, which is another reason why it is much easier just-in-time fashion, often 30 minutes or less. Proximity and to design a new facility from scratch rather than trying to having multiple routes to the assembly plant, avoidance of locate an existing building, which may not meet a comtolls, interstate accessibility, and traffic patterns are all considpany’s needs. ered when selecting a site for parts delivery to the line. Additionally, European automotive entrants, in parFor example, Volvo is constructing its first U.S. factory ticular, aspire to build assets that are future-proofed for near Charleston, S.C. The company cited proximity to inadaptive re-use after the initial use has run its course. They ternational ports and infrastructure, a strong skilled labor look at the way American manufacturers have traditionally force with experience in the high-tech manufacturing secbuilt — with the option to raze and redevelop once a faciltor, and an appealing investment environment among its ity has run its course — as an oddity. These companies are reasons for choosing its Berkeley County location. Magna is developing their new facilities with reuse, sustainability, also building a new manufacturing facility in South Caroand adaptability in mind. For example, the incorporation of lina. The 165,000-square-foot plant in Greenville County a nine-inch slab in a building initially earmarked for distriis reported to be producing exterior molded and painted bution can accommodate a heavy manufacturing operation assemblies for BMW AG, which maintains an assembly opdown the road. eration in neighboring Spartanburg County. New construction takes time, and time is the enemy of In Illinois, two Chrysler suppliers are building facilities production; speed-to-market is crucial. Developers are benear the OEM’s Belvidere assembly plant. Yanfeng Autoing asked to quickly build facilities to meet the capacity motive Interiors is constructing a 336,000-square-foot facildemands of the auto industry as they work to accommoity, while Magna International is building a 220,000-squaredate an increased volume in new car sales. Construction foot facility; both are reported to be manufacturing compocycle times are being reduced. Where 12 to 14 months used nents for Jeep® Cherokee vehicles assembled locally. to be the average cycle time, today the timeframe has been Another good example is the Lucid Motors project. reduced to 10 to 12 months. Accomplishing this turnaround without cutting corners or getU.S. Manufacturing Recovery ting mired in the approval process can be challenging. Net Absorption (MSF) Among the myriad of challenges, getting buy-in from the 60 8.0% local municipality to turn around 7.0% permits in a timely manner can 40 be a huge factor particularly from a budget perspective, especially given potential delays due to winter conditions. The ability to break permits into separate grading permits, shell permits, and build-out permits allows construction to commence much earlier, rather than waiting for a complete building to be fully designed. Coordinating architectural, structural, MEP (mechanical, electrical, plumbing), and civil

6.0% 20

5.0%

4.0% Manufacturing has posted 220 MSF+ of occupancy gains and vacancy has fallen 190 basis points during the recovery.

-20 -40 -60

3.0% 2.0% 1.0%

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

0.0%

Source: Cushman & Wakefield Research AREA DEVELOPMENT | 2017 Annual Directory

Its Casa Grande, Ariz., location will enable fast shipping of parts manufactured in Sonora, Mexico. And, in Detroit, Flex-N-Gate Corp. is building a 500,000-square-foot manufacturing plant after receiving a new Ford Motor Co. contract for aftermarket parts. The facility will produce products for other customers as well. “While the transformation of the automotive OEM business, overall, is not an e-commerce, online-shopping–driven opportunity, it is certainly a technology-based and connectivity-driven transformation. It happens that, however, each big change driver has had a significant impact on the industrial real estate market,” comments John Morris, Cushman and Wakefield’s Logistics and Industrial leader. “The two businesses are colliding in the middle of a short supply real estate market.”

TODAY

MORE THAN EVER BEFORE,

AUTOMOTIVE SUPPLIERS ARE REQUIRED TO

DELIVER PARTS TO AN ASSEMBLY PLANT IN A JUST-IN-TIME

FASHION.

Without a doubt, OEMs and their suppliers are busy and show no sign of slowing down. In turn, we anticipate continued and strengthening demand for manufacturing real estate. The good news is that seasoned real estate professionals understand and can address the distinctive challenges of the automotive sector from labor issues, logistics, infrastructure, technology, and credits and incentives, to the unique requirements of the real estate itself. And developers are finding creative solutions to deliver buildings more rapidly than ever before without sacrificing quality. These are exciting times within the auto industry, and it is uplifting to witness new factories coming on line from existing and disruptive players within a sector that not that long ago was struggling to stay relevant and financially strong. ■

THIS ISN’T THE CENTER OF TULSA.

YOU ARE.

Move your business to the Tulsa region and you can do more than share in the economic boom our downtown renaissance represents—you can be a driver of it. We offer businesses the resources, opportunities, incentives, and quality of life that add up to long-term, mutual success. Please visit GrowMetroTulsa.com/MoveForward to download our regional business overview.

18 AREA0586.indd AREA DEVELOPMENT 1

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com 17/05/16 7:48 PM

INCENTIVES/GOVERNMENT REGULATIONS

The Importance of an Incentives Review Process Today’s reality requires companies to develop an incentives review process and give it due resources in order to obtain and keep valuable negotiated incentives. By Minah Hall, Managing Director, True Partners Consulting

Federal regulatory agencies are looking more closely at the tax credits and incentives state governments award to companies.

Questions to ask when implementing an incentives review process:

The Importance of a Review Process Incentives review and compliance has always been a vital part of monetizing the incentives a company negotiated during the site selection process. With the additional burdens placed on governmental agencies and possibly on companies through a potential FASB standard, it is now more important than ever to establish an incentives review process for all incentives awarded.

• How often will we conduct an incentives review? • Which aspects of the review can be automated? • Do we need and can we afford a software program to help? • What is our review methodology? • What data do we need? • Which team members should be involved and what are their roles?

ransparency, increased scrutiny, and compliance…these words have taken on increased importance in today’s business environment. In the incentives world, it is no different. Incentives reporting has become the focus of (potentially) two new accounting standards, and successfully “monetizing” negotiated incentives is becoming more and more important to companies of all sizes. CFOs and accounting team members may want to move incentives compliance up on their lists.

Increased Scrutiny The Governmental Accounting Standards Board (GASB) finalized the new Tax Abatement Disclosures, Statement No. 77 in August 2015; this statement requires governmental bodies to disclose information about (1) a reporting government’s own tax abatement agreements and (2) those that are entered into by other governments that reduce the reporting government’s tax revenues. Similarly, the Financial Accounting Standards Board (FASB) jumped into the fray in November 2015 (comments were due in February 2016, but no final statements had been released at the time of this article). The FASB wants to use this as a tool to increase transparency related to “government assistance arrangements” including “(1) the types of arrangements, (2) the accounting for government assistance, and (3) their effect on an entity’s financial statements.” Bottom line?

An effective incentives review process seeks to: • Review the company’s active incentives contracts; • Track the company’s progress toward incentives contract requirements; and • Monitor and comply with incentives contracts’ reporting requirements. When establishing an incentives review process, it is important to first determine the frequency at which the company will conduct an incentives review, as each company’s incentives scope and resources will vary. For a smaller company with only a few negotiated incentives, it may be more cost-effective to perform an incentives review on an annual basis; however,

AREA DEVELOPMENT | 2017 Annual Directory

Mississippiâ&#x20AC;&#x2122;s Winning Business Advantage With second-to-none advantages, Mississippi is a prime location for todayâ&#x20AC;&#x2122;s companies searching for tomorrowâ&#x20AC;&#x2122;s business solutions. 2Q 1RY &RQWLQHQWDO 7LUH RÉ?FLDOO\ EURNH ground at the companyâ&#x20AC;&#x2122;s future commercial vehicle tire manufacturing plant near Clinton, Miss. Announced in February, the project represents a $1.4 billion investment and creates 2,500 jobs. The decision by the worldâ&#x20AC;&#x2122;s fourth-largest tire manufacturer to locate LQ 0LVVLVVLSSL LV D WHVWDPHQW WR WKH VWDWHČ&#x2021;V VLJQLČ´FDQW business advantages. â&#x20AC;&#x153;Building this new facility in Mississippi is a critical part WR RXU JURZWK VWUDWHJ\ IRU &RQWLQHQWDO 7LUH Č&#x2039; VDLG 1LNRODL Setzer, a member of Continentalâ&#x20AC;&#x2122;s executive board and head of Continentalâ&#x20AC;&#x2122;s global tire business worldwide. Č&#x160;7KLV LV WKH Č´UVW QHZ SODQW JOREDOO\ IRU WKH WUXFN WLUH business in more than 10 years. And, at $1.4 billion, this is the largest investment ever for our CVT business. We are convinced that the state of Mississippi provides the best options for Continental to grow our tire business.â&#x20AC;? According to Setzer, Mississippi enticed the tire giant with three factors: people, infrastructure and support. With supportive leadership committed to economic development, the state boosts its position as a desirable site location by continuously strengthening these business advantages through pro-business engagement and incentives. Gov. Phil Bryant signed into law the Mississippi :RUNV )XQG WKLV SDVW \HDU 7KH IXQG HQDEOHV WKH VWDWHČ&#x2021;V WRS UDQNHG FRPPXQLW\ FROOHJH V\VWHP WR enhance customizable training programs to more HÎ?HFWLYHO\ PHHW WKH QHHGV RI FRPSDQLHV )LIW\ PLOOLRQ GROODUV LV FRPPLWWHG RYHU \HDUV WR ZRUNIRUFH WUDLQLQJ 6HYHQW\ Č´YH SHUFHQW RI WKH IXQGV DUH GHGLFDWHG WRZDUGV new job creation, while 25 percent are allocated to H[LVWLQJ ZRUNIRUFH WUDLQLQJ DQG ZRUNIRUFH FHUWLČ´FDWLRQ 7KH 0LVVLVVLSSL :RUNV )XQG LQLWLDWLYH MRLQV an extensive portfolio of existing state business incentives. The relocation of Chiquita to the Port of Gulfport is one example of companies recognizing Mississippiâ&#x20AC;&#x2122;s advantages. In 2014, Chiquita relocated shipping operations to New Orleans after more than 40 years at the Port of Gulfport. While in New Orleans, the company maintained ripening

Governor Phil Bryant, executives from Continental Tire, local state officials break ground at the site of the companyâ&#x20AC;&#x2122;s newest manufacturing facility in Hinds, Co. Miss. VWRUDJH RSHUDWLRQV LQ 0LVVLVVLSSL 7KH EHQHČ´WV RI GRLQJ EXVLQHVV DW WKH 3RUW RI *XOISRUW RXWZHLJKHG WKH EHQHČ´WV of their existing location, however, and the company announced the return of its shipping operations to the Mississippi Gulf Coast in July 2016. The Gulf Coast not only celebrated the return of Chiquita, but also the acquisition of three new gantry cranes valued at $30 million at the Port of Gulfport. The cranes add to the stateâ&#x20AC;&#x2122;s impressive infrastructure and logistics capabilities. In addition to people and infrastructure, the state RÎ?HUV XQSDUDOOHOHG VXSSRUW WR EXVLQHVVHV RSHUDWLQJ LQ the state. In August, reclining furniture manufacturer Southern Motion announced plans to expand in Baldwyn, Miss. The expansion creates an investment of $8 million and 600 jobs. â&#x20AC;&#x153;We are very excited for the opportunity to expand our business in Baldwyn. This would not have been possible without the governor and the Mississippi Development Authorityâ&#x20AC;&#x2122;s commitment to grow our existing industries in the state,â&#x20AC;? said Southern Motion President and CEO Roger Bland. :LWK D UHDG\ WR ZRUN ODERU SRRO VWURQJ LQIUDVWUXFWXUH and business-friendly environment, industry leaders from DURXQG WKH 8 6 DQG DURXQG WKH ZRUOG FRQWLQXH WR Č´QG their competitive edge in Mississippi.

To learn more about the Mississippi advantage, visit or call the Locate Mississippi team at 1.800.360.3323.

larger companies, with many incentives negotiated across many states and local jurisdictions, may want to consider implementing an incentives review process on a semi-annual, quarterly, or even monthly basis depending on the scope of incentives and resource availability. Furthermore, a company may need to decide which aspects of the review process, if any, can be automated and which parts of the review process will be completed manually. This determination may further dictate the frequency at which an incentives review is performed. Some companies may invest in a software system to track the company’s progress toward incentives contract requirements and monitor upcoming incentives reporting deadlines, while others may collect and maintain all relevant incentives data in an excel spreadsheet. Companies should perform a cost/benefit analysis before investing in a software tracking system, taking into account monetary cost as well as the cost of staff time and training requirements. Regardless of the system utilized for the incentives review process, it is also helpful to establish a formal review methodology to determine how the company will review its incentives, especially for companies with multiple incentives awards negotiated over a long period of time. For example, a company with incentives tied to many different locations may decide to review its incentives based on project location or real estate footprint, while a company with a smaller real estate footprint may decide to conduct its review based on incentive program or by incentives tied to the largest value to the company.

The Players in the Process Once a company establishes the frequency at which it will perform an incentives review, which aspects of the process can be automated (if any), and

a review methodology, the company is then ready to designate a project lead. The project lead will help identify individuals in various departments (stakeholders) who can obtain the data needed to track project progress and complete incentives reporting. Typical stakeholders of the incentives process may include, but are not limited to, human resources, real estate, legal, and the fixed asset team. For instance, human resources may be relied upon for headcount information and real estate for construction or build-out progress. Additionally, the project lead may be a member of one of the stakeholder teams listed above or a member of a different department. It is imperative to identify each stakeholder and communicate each stakeholder’s role and responsibilities in order to demonstrate the overall impact of the incentives review process. The project lead will then establish a central calendar with the key milestones and timelines identified for each stakeholder. As mentioned above, incentives reporting deadlines are becoming more and more important, so it’s critical that project teams manage to those deadlines. Establishing an incentives review process enables a company to identify project deficiencies well in advance of contract deadlines and decreases the risk of a company not being in compliance with incentives reporting requirements.

WRITE YOUR SUCCESS STORY IN MISSISSIPPI Whether it’s as big as a battleship or visible only with a microscope, Mississippi manufactures it. If it’s going into outer space or coming in from overseas, Mississippians make it move. Companies collaborate with our #1 nationally ranked community college system for workforce training and utilize the nationally recognized centers of excellence at our universities for R&D. Mississippi is building one success story after another. That’s why companies like Rolls Royce, NASA, SpaceX, Northrop Grumman, Huntington Ingalls, GE Aviation, Airbus Helicopters, and Raytheon have operations in Mississippi. Let us help write your success story in Mississippi.

Compliance Deficiencies Since a company should continually be tracking progress of each incentive under an incentives review process, the project lead should be able to quickly determine if the company is not on target to meet its various incentives contract obligations. Most incentives contracts will outline a company’s contractual obligation, which typically includes job creation and/or job maintenance requirements, capital investment requirements, minimum

MISSISSIPPI

GLOBAL mississippi.org

AREA DEVELOPMENT | 2017 Annual Directory AREA0645.indd 1

17/11/16 12:27 AM

“

average wage maintenance, etc. If the project lead determines that a project is not on track, the company should communicate any delays or other Most incentives contracts will outline reasons for noncompliance to respective economic developers in advance of becoming noncomplia company’s contractual obligation, ant (typically at least 30 days in advance). which typically includes job creation Furthermore, identifying these deficiencies enables the company to communicate potential projand/or job maintenance requirements, ect delays. In addition to timely identification of project deficiencies, an incentives review process capital investment requirements, will minimize a company’s risk of not being compliant with incentives reporting requirements. average minimum wage, etc. The repercussions of not filing timely or meeting minimum requirements may result in a variety of consequences. These can range from delayed payment timing for a minor oversight, to termination in the program for a moderate infraction, or, most severely, potential clawbacks being refunded with interest, penalties, and even attorney’s fees. In the worst case scenario, not only is there a monetary penalty with clawbacks but the potential negative press associated with a clawback can be a damaging to a company’s reputation, especially in today’s environment of public scrutiny. ■

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ENERGY/SITE SELECTION

Powerful Economic Development Partners The utility company is an unrecognized and underrated partner in the location decision process. By Josh Bays, Principal, Site Selection Group, LLC

n the Q3/2016 issue of Area Development magazine, I provided commentary on the results of the 2016 Top States for Doing Business Survey. I briefly discussed the role a wellfunded and organized electric utility can play in shaping a state’s business environment, especially as it relates to attracting industrial investment. Specifically, I noted: One major reason for these states’ successes is their comprehensive economic development programming. With few exceptions, the states scoring best in this survey tend to have the most robust and capable state-level economic development platforms. Although these state-level efforts demonstrate each of these states’ commitment to long-term economic development, I firmly believe that the vast majority of the Top States for Doing Business have one severely underrated (at least to the casual industry follower) asset in common: the strong support of well-organized and well-funded power companies…These competitive states are supported by utility companies that often have more marketing and project management resources than the state economic development agencies themselves. In addition, these utilities can play a positive role shaping a state’s business environment. These comments seemed to generate significant interest from corporate readers that would like to broaden their understanding as it relates to the value and support offered by electric utility economic development organi-

zations. In reality, electric utilities can prove to be one of the most valuable partners to a company seeking to locate their corporate project.

An Unrecognized and Underrated Partner As a company navigates the location decision process for its latest project, the involvement of third parties increases as the process progresses. These third parties often include a mix of site selection consultants, engineers, attorneys, real estate brokers, tax professionals, economic developers, and government officials at the municipal, county, regional, and state levels. Because site selection projects are infrequent exercises for a typical indus-

trial company, most corporate project leaders are unfamiliar with the roles all these various parties should play in the process, especially those representing economic development interests from different levels of government. Therefore, the role the utility company can play in the process may not be apparent at first glance. But from marketing sites and communities to project management and transaction assistance, utility economic development partners can be a resource along the entire value chain of site selection. More often than not, utility economic developers can be leveraged in the same capacity that one would leverage state economic development officials. But due to their

AREA DEVELOPMENT | 2017 Annual Directory

knowledge of their local utility networks and site availability, utility partners can be a valuable asset during the entire project — but especially during the site-specific phase of the location decision process.

Most corporate

companies, they are often less bureaucratic and nimbler than traditional forms of economic development (or at the very least, in my opinion, effectively portray themselves in this light). As a result, I have found that having a party at the table who has many of the exact same motivations as our clients can be an invaluable asset for building trust throughout a process.

• Utility companies understand that electric consumption will follow jobs and executives capital investment. While a large-scale data center or large incorrectly assume • Do not underestimate the funding of automotive OEM is still the Holy Grail for utility economic development groups. most utility companies, most corporate that it takes a large I am continually amazed at how well executives incorrectly assume that it takes megawatt user to funded many utility economic development a large megawatt user to generate the ingroups are and how that can really move terest and assistance of electric providers’ generate the the needle at the strategic and project level. economic development departments. While Those funds enable electric utilities to adopt utility companies’ primary objective is, and interest and aggressive marketing campaigns, staff their will always be, to sell power, measuring inteams with the brightest talent, proactively ternal success based on traditional economic assistance of invest in product development, and incentivdevelopment metrics like job creation and ize projects at a higher level than ever before. capital investment is becoming an increaselectric providers’ A prime example of the byproduct of being ingly common practice for utility companies well funded is the role Santee Cooper, their loacross the country. economic cal electric cooperatives, and The South CaroOne utility economic development execudevelopment lina Power Team played in attracting Volvo tive with whom I recently spoke confirmed to Berkeley County, S.C. In an effort to reduce this changing philosophy: “In an effort to departments. upfront capital expense and help streamline better align ourselves with our state, regional, the site development process, Santee Cooper and local economic development partners, we provided assistance in acquiring the land curunderstand that electric consumption will folrently being developed for Volvo. low jobs and capital investment. Therefore, it Another example is the involvement the Tennessee Valley is critical that we measure our performance with these metrics, Authority had in repurposing an old coal plant in Alabama in addition to power consumption. At the end of the day, it is for a Google data center. Although an unconventional projabout being a valued community partner; selling electricity will ect, the two parties were able to generate $600 million in take care of itself.” capital investment in a situation where power plant workers were losing their jobs. • Utility companies have a few competitive advantages when it comes to delivering economic development services. There are several inherent advantages that utility ecoWhat Does the Future Look Like? nomic development platforms provide that make them an Although utility companies providing economic developinvaluable resource. For one, due to their financial resources ment services is not a new concept, it is clear that electric and internal exposure to electrical-related issues, they can providers in the Southeast have been the leaders in this areoften offer more technical expertise, which can be difficult to na. However, utility companies in other parts of the country find when working with other economic development partare investing more resources into their economic developners who aren’t tasked with technically challenging requests ment platforms as well. for utility service and cost estimates on a daily basis. Returning to an earlier point, some corporate clients Further, although constrained to their service territory, can be initially confused by the number of economic deelectric utilities tend to work the “regional approach” to velopment officials involved in a project. As I hope I’ve economic development better than their state and local demonstrated here, utility economic development partners counterparts. Especially in instances that cross state lines, can bring a lot to the table, especially in terms of technical the utilities can provide project management services withexpertise along with strategic and project-level funding. That out being influenced by government politics. Of course, like being said, introducing another party to the project only their state or regional partners, some utilities’ service areas underscores the critical importance of project coordination are constrained by political boundaries, but those that cover from the community side. Regardless of who’s “leading” the major population centers straddling state lines (e.g., Duke in project — whether the state, regional authority, county/city, Charlotte and Cincinnati, TVA in Greater Chattanooga and or utility — leveraging all parties’ experience and assets is Tri-Cities) can be especially valuable in identifying the optionly effective when a clear and consistent message is delivmal location for an active project. ered to the corporate client and the process is seamless from Because electric utilities generally operate as for-profit beginning to end. ■

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Barrie 187 km Toronto 112 km

Milwaukee 891 km

Providence 867 km

Detroit 266 km New York 749 km

Chicago 732 km Illi Il Illinois lino nois is

Kingston 372 km

Cleveland 461 km Indiana Indi In dian a a

Columbus 589 km

Pittsburgh 503 km

Philadelphia 753 km

COVER STORY

SHOULD

URBANIZATION

DRIVE the

SITE

DECISION? Your hiring managers are

coming into the office weary-eyed, in need of coffee, and probably not in the most agreeable of moods. Cut them some slack, after all, it isnâ&#x20AC;&#x2122;t easy developing a talent pipeline initiative when the most recent unemployment figures show that our nation is currently sitting at what many would consider near full employment at 4.6 percent. At that rate, it would appear that just about everyone who wants a job could have one. So why is there so much pressure on corporate real estate managers and those responsible for location strategy? Because corporate real estate professionals are responsible for examining existing real estate portfolios and analyzing whether current locations have what it takes to attract the right type of talent. Too often, companies that have not updated their real estate portfolio or strategy in the past decade will find that their prior tactics are simply no longer working in the race to attract talent. After years of building sprawling campuses in

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C O M PA N I E S H AV E B E E N FOLLOWING MILLENNIAL TA L E N T T O T H E U R B A N L O C A L E S T H I S P O P U L AT I O N COHORT PREFERS, BUT AS THIS GROUP AGES THEIR LIFESTYLE PREFERENCES — A N D Y O U R C O M PA N Y ’ S L O C AT I O N C H O I C E S — M AY C H A N G E . BY BRIAN P. CORDE, MANAGING PARTNER, Atlas Insight, LLC

suburban markets, companies are now questioning whether existing real estate footprints are “urban” enough to attract today’s workers. Over the past few years, we have seen the trend of corporations moving corporate headquarters as well as groups charged with innovation into more urban hubs, primarily as a move to attract young talent. After all, this is the latest catchphrase…the “urbanization” of America. But should we move to make this a long-term strategy? Is there something brewing behind this trend where all young, educated, selfie-snapping millennials are sipping on lattes as they plug away at their tablets and smartphones in a renovated warehouse turned coffee shop in a previously blighted neighborhood in a large city? In order to answer this question, we need to dive a bit further into the reasons behind the tight labor market and the numbers before we can understand the concept of urbanization and predict how it will shape the future of site location decisions.

THE LABOR PARTICIPATION RATE As stated, the most recent unemployment figures peg our national unemployment at a very low 4.6 percent, meaning we are almost at full employment. Those who want to poke holes in the economic progress touted by the Obama administration are quick to point out that unemployment rates don’t include individuals who simply stop looking for work because they become

AREA DEVELOPMENT | 2017 Annual Directory

U.S. Labor Force Participation Rate 68 66 64

of the position of looking for work.

BIRTH RATES

The analysis of the tight labor 62 market would not be complete 60 without a full understanding of 58 the labor force gap 1950 1963 1976 1989 2002 2015 that was created Source: www.tradingeconomics.com | U.S. Bureau of Labor Statistics when the babyboomers started to retire. So why is it that we talk so much about disenfranchised by the system or their prospects. If you trying to attract those that were born after 1980? Are look at the numbers further, we actually will see that both these kids so much smarter than those born in the 70s theories are actually correct, depending on the data sets that every business can’t survive without them? While the utilized. answer is no, the reality of the situation is that attracting If you go back to the data collected since 1950, the millennials in the workforce is a necessity, but it is based U.S. Bureau of Labor Statistics reports that the average upon numbers, not talent. Low birth rates in the late 1960s labor participation rate (LPR) is 63 percent. The most and through the 1970s created a gap when baby-boomers recent figure from November of 2016 indicates that the started to retire, as there simply weren’t enough Gen Xers current LPR is 62.7 percent, which is down slightly from to fill their places in the workforce. previous months (meaning this hasn’t been impacted The picture becomes very clear when you look at the by holiday hiring). This would seem to indicate that our total U.S. labor force. Based upon data supplied by the LPR is at its historical average; therefore, we can’t really U.S. Bureau of Labor Statistics, the U.S. labor force grew point the finger at those who are able to work but choose an average of 1.77 percent each year from 1978 to 2001. not to, and who simply fall out of the unemployment We have chosen 2001 because this is the year that the figures because of their unwillingness to search for an first millennials (born in 1980) turned 21 years old and employment opportunity. presumably started entering the workforce after college. However, the data tells a completely different story If you continued that growth trend, the labor force when you truncate it to look only at data points in this population would have been considerably larger than the actual figures through November of 2016, showing how millennium, as the rate has steadily fallen since 2000. negatively the labor force was impacted once the babyThose who believe that the labor participation rate is a boomers started to retire. The actual labor force rate problem in the country today will point out that looking increase from 2001 to 2016 was only 0.7 percent despite at the data when beginning in 1950 paints an incomplete the huge number of millennials that joined the workforce. picture because it accounts for at least a decade where This was due to the fact that the millennial hires could it wasn’t all that commonplace to find women in the not keep pace with the retirements of the baby-boomers. workplace. Since 1963 the labor participation rate saw With such a large drop off in the labor force, it is clear why huge increases, reaching its peak in January of 2000 the unemployment rate has fallen so low, and why there is at 67.3 percent. Even if you tried to argue that the a shortage of qualified workers to choose from. recession in 2008 would cause the LPR to trend down as the job market dried up, it does not explain why the LPR continues to tumble, even as the job market has improved. So part of the labor issue could be tied to Because of the factors discussed above, young people people just not being willing to work and/or skill sets that have hit the job market at a time when companies are don’t match up to today’s job market, forcing them out hungry to court them. There are several factors that have

SO WHY THE “URBANIZATION”?

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led this group to want to reside in major cities. First, young professionals have always enjoyed the company of other like-minded individuals, and they can find likeminded individuals in greater numbers in urban centers. Secondly, they are able to move away from their family and friends because technology now gives them easier access to the people they want to stay connected with, even if they are far away. Additionally, at an age before having children, they can spend most of their disposable income on themselves, which helps with higher rents found in urban markets. To counter this, the millennial group has gravitated to some of the areas of cities that once were considered blighted, but with good access to the city center, typically by public transportation. This has created gentrification in these areas, causing significant issues with the relocation of individuals in the lower socioeconomic brackets who previously inhabited those neighborhoods. This young talent, huddled together in these urban areas, has created a near-term opportunity for those in charge of site selection decisions to locate in these areas to tap into the labor pipeline that exists. The major question is whether this trend will continue, and the data doesn’t support it…as of yet. With the exception of major industry centers, such as the Bay area for tech talent, there may be a reversing or at least

a slowing of this trend — here’s why. The peak year for millennial births was 1990. This is significant because it means that in 2015 those born in 1990 turned 25 years old — that’s the age most people start to focus on stabilizing their careers and also start thinking about having a family life. Is it reasonable to assume that the urbanization trend will continue as millennials start to get married and have children? The data doesn’t seem to support it. According to data from economist Jed Kolko, as reported in The Washington Post (April 1, 2016)1 the millennial population in dense urban centers is declining. Contrary to what popular thinking has lead us to believe, this large group of talented individuals is starting to reverse the urbanization trend. In fairness, this will most likely have dramatic impacts on the suburban communities that millennials choose to move into, demanding a more urban center feel with walkable/bike-able amenities. That said, the larger house and yard, better for family life, might be calling their names. So before you lay all your chips down on that long-term city center lease, just take into consideration what your labor force’s preferences may be over the next five to 10 years, as it could be dramatically different than what it is today. ■ 1 https://www.washingtonpost.com/news/wonk/wp/2016/04/01/the-surprisingly-narrow-reality-ofamericas-urban-revival/?utm_term=.68f724c7d466

Births in the U.S. 5.0 4.2M in 1990

3.0

2.0

1.0

0.0 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Annual Births in U.S. (millions)

4.0

Birth Yea r Source: Kinder Institute

AREA DEVELOPMENT | 2016 Annual Directory

BUSINESS GLOBALIZATION

Canada’s Intent to Create the World’s Largest Trading Bloc Canada’s signing of CETA offers a competitive advantage to companies choosing a Canadian location. By Michael Darch, Founding President, Consider Canada Cities Alliance

Prime Minister Justin Trudeau participates in the EU-Canada Leaders’ Summit and CETA signing ceremony in Brussels, Belgium, in October 2016.

igned in Brussels in October by Canada and the EU after seven years of negotiations, the Comprehensive Economic Trade Agreement (CETA) comes into force after being ratified by Canadian and European national parliaments. Combined with NAFTA, CETA provides companies located in Canada with preferential access to the world’s two largest economies — the U.S. and the EU — that together with Canada represent half of the world’s GDP. Canadian bilateral free-trade agreements (FTAs) with countries like Korea, Chile, and Peru embrace another 5 percent of global GDP, and the Canadian government is actively engaging on FTAs with China (another 15 percent) and India (3 percent).1 In light of populist electoral victories on both sides of the Atlantic, CETA is also seen as a workable template for more bilateral trade deals.2 According to Canada’s Financial Post newspaper, Canadian exports to the UK would increase by 15 percent as a result of CETA, while British exports to Canada would increase by 2 percent — well worth it for both. Some 42 percent of Canadian exports to the EU are to the UK.3 The bottom line is that CETA symbolizes a trade-ready Canada that is open to investment from companies eager to take advantage of the federal government’s desire to be part of the world’s largest trading bloc. Already Canada is first among G7 members with the greatest share of global GDP covered by FTAs.4

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As the CanadaWest Foundation has noted, in a fractious world, CETA proves that Canada “can negotiate with a unified and coherent position internationally” and forges “a Canadian reputation as a dynamic, pragmatic, and responsive trading partner.”5 For international companies considering new investments in Canada, CETA makes strides in three important areas: elimination of tariffs, ease of access concerning the free-flow of people in services-based businesses, and common regulations. David Ross is CEO of Ross Video, an Ottawa-based international exporter of video production products and services to more than 100 countries. He states that before CETA, “even with the opening of offices and hiring sales and support staff in Europe, we still can’t complete that feeling of being local if we have to add all manner of import duties and complex administrative processes to sell there.” He now notes, “With this deal, we get cleaner access to 28 countries.”

Tariff Elimination Specifically on tariffs, the patterns and levels of protection between the EU and Canada today are similar to those that existed between the U.S. and Canada prior to the FTA between Canada and the U.S. in 1989. The evolution of trade between the U.S. and Canada since the FTA offers a good illustration of how trade might increase after CETA. In the five years following the Canada-U.S. FTA, trade

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doubled for goods where there was a greater than 5 percent reduction in tariffs, while trade in goods that were already tariff-free increased by 40 percent.6 Currently, only about 25 percent of EU “tariff lines” on which Canadian-made goods are exported enter the EU duty-free. On day one of CETA’s entry into force, 98 percent of EU “tariff lines” will be duty-free for goods that originate in Canada. Another 1 percent will be eliminated over a period of up to seven years. For companies that locate in Canada to take advantage of CETA, that means tangible and significant opportunities in the EU market by avoiding EU tariffs. Those companies can quickly expand or create new markets for their goods in the EU.7

EU’s top services imports, and are also among Canada’s top services exports to the EU. Already France’s Ubisoft operates one of the largest gaming studios in the world in Montreal with 2,700 employees.8 Engineering and architectural services and R&D have been other major Canadian exports to the EU. Once CETA enters into force, Canadian services exporters will be treated the same way as those from the EU (with the exception of certain reservations for existing and future policy measures). Canadian services exporters will enjoy better predictability and transparency in a large number of service sectors of interest to Canada, including architectural, engineering, and R&D services. Any future regulatory or legal changes that make it easier for Canadian service suppliers to access the EU market will automatically be locked in under CETA, and therefore cannot subsequently be made more restrictive. The EU will also treat Canadian service suppliers no less favorably than it treats service suppliers from its existing or future freetrade agreement partners. In a world where increasingly technology-enabled and services-based businesses proliferate, labor mobility is paramount, and CETA also covers this important aspect of international trade. CETA’s chapter on temporary entry addresses administrative requirements at the border, such as labor market tests or other numerical limitations that can impose time delays and administrative costs on prospective business entrants to Canada or the EU. CETA provisions will increase transparency and predictability for key personnel, including intracompany transferees and investors, contract service suppliers, and independent professionals (including a broad coverage of professionals and limited coverage of technologists), as well as visitors doing business in the EU. CETA also establishes a streamlined process for the recognition of foreign qualifications in certain sectors, and a detailed framework through which regulators or professional organizations may negotiate mutualrecognition agreements for other professions.9

ON DAY ONE

Atlantic Canada offers a quick study on the dollars and sense of CETArelated tariff elimination: • The EU is Atlantic Canada’s secondlargest trading partner after the U.S. The EU is already the largest market for seafood in the world and Atlantic Canada is a major supplier. CETA will eliminate export tariffs on cooked and peeled shrimp (20 percent), live lobster (8 percent), frozen lobster (6 percent to 16 percent), and frozen scallops (8 percent). • The EU accounts for almost 40 percent of Atlantic Canada’s frozen blueberry exports, and rising incomes in central and Eastern Europe have the potential to increase demand. • Atlantic Canada’s aerospace exports to the EU were worth over $46 million in 2014. The European passenger fleet is expected to grow 71 percent by 2033, another sizeable opportunity. • EU healthcare is modern and sophisticated with growing needs related to an aging population. EU members account for 47 percent of Atlantic Canada’s exports of pharmaceutical and diagnostic products. Reduced tariffs and other CETA benefits will only serve to increase this pharma trade.

OF CETA’S ENTRY

INTO FORCE, 98 PERCENT OF EU “TARIFF

LINES” WILL BE DUTY-

FREE FOR

GOODS THAT

ORIGINATE IN CANADA.

Services and Labor Mobility The EU is the world’s largest importer of architectural, engineering, and other technical services. In 2015 alone, the EU imported $936 billion in services. It imported $16.5 billion from Canada. Management, financial, and ICT services are among the

Common Regulations CETA is the first Canadian bilateral trade agreement with a stand-alone chapter on regulatory cooperation. AREA DEVELOPMENT | 2017 Annual Directory

CETA will establish a Regulatory Cooperation Forum to discuss regulatory policy issues of mutual interest and develop bilateral cooperation activities. By fostering cooperation earlier in the regulatory process, the forum is expected to enhance information sharing between Canadian and EU regulators, facilitate the development of more compatible regulatory measures, resulting in fewer barriers to trade, and make it easier for Canadians to do business in the EU. For example, a Canadian company, working through the Regulatory Cooperation Forum, will be able to request information at an early stage regarding new EU regulations in development, and provide comments and recommendations on how such regulations should be developed in order to prevent and eliminate unnecessary barriers to trade. Another unique feature of CETA is the Protocol on Conformity Assessment, which is designed to allow Canadian producers in a number of sectors to have their products tested and certified for the EU market in Canada. This protocol is expected to reduce testing and certification costs and associated delays for manufacturers. Canada and the EU are also committed to continuing discussions with a view to adding new products in the future.10

LOCATION.

In Sum Canada is already the number-one trading partner for 35 of the 50 U.S. states, and number two in six more. With CETA in place, an investment in Canada will double the market access of American companies already taking advantage of NAFTA. Asian companies are also increasingly looking to new markets for growth. As a diversification strategy, investing in Canada opens access to the developed markets in both the U.S. and the Europe to those outward-looking Asian companies. Canada’s signing of CETA, therefore, offers a valuable competitive advantage in a country committed to creating the world’s largest trading bloc. 1 2 3 4 5 6 7 8 9 10

http://www.international.gc.ca/investors-investisseurs/assets/pdfs/download/The_Canadian_ Opportunity.pdf http://www.bbc.com/news/uk-politics-eu-referendum-36561409 http://www.cfmo.org/2016/10/how-canada-can-save-best-of-ceta-with.html http://www.international.gc.ca/investors-investisseurs/assets/pdfs/download/The_Canadian_ Opportunity.pdf http://cwf.ca/news/commentaries/cetas-troubles-come-with-a-silver-lining-for-canada/ http://trade.ec.europa.eu/doclib/docs/2008/october/tradoc_141032.pdf http://www.international.gc.ca/gac-amc/campaign-campagne/ceta-aecg/boost_your_bottom_ line-optimisez_vos_resultats.aspx?lang=eng https://en.wikipedia.org/wiki/Ubisoft_Montreal http://www.international.gc.ca/gac-amc/campaign-campagne/ceta-aecg/boost_your_bottom_ line-optimisez_vos_resultats.aspx?lang=eng http://www.international.gc.ca/gac-amc/campaign-campagne/ceta-aecg/boost_your_bottom_ line-optimisez_vos_resultats.aspx?lang=eng

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INDUSTRY REPORT

What’s Driving Pharmaceutical Firms’ Siting Decisions? A pharma company’s position in the drug life cycle chain affects where it will locate, as does its need for a skilled workforce and low taxes, among other concerns. By Woody Hydrick, Managing Director, Global Location Strategies

n the modern era, siting decisions for pharmaceutical production operations have been primarily driven by factors such as limiting tax exposure, access to talent, and surety of supply chains. However, an additional decision consideration appears to be taking the lead for some companies: ease of technology transfer through proximity to their dug development and research base.

Technology Transfer As example, consider the decision of Japan’s Takeda Pharmaceuticals to locate its first U.S. manufacturing operations in Brooklyn Park, Minnesota, after years of producing drugs all over the world. In 2008, Takeda acquired Cambridge, Massachusetts-based Millennium Pharmaceuticals, which developed the biologic drug, Entyvio. Takeda recognized the potential in the colitis and Crohn’s disease drug that was developed by Millennium in Cambridge and also saw the opportunity to produce its first in-house biologic. Seizing this opportunity, the company originally sought to locate its first foray into biologics production in the northeastern U.S., but over the course of its site selec-

tion process, Takeda became aware of an idle pharmaceutical manufacturing operation in Brooklyn Park, Minnesota. Believing the proximity to its research base in Cambridge was still reasonable, and given the quality of the facility as a multi-product operation with access to local biotechnology production experience, Takeda announced its decision to locate in Brooklyn Park in 2016. The operation will eventually employ 150 people. As another example, in August of this year, it was announced that Novartis would be expanding its monoclonal antibody production operations in Huningue, France, with the investment of $100 million. The investment includes a 70 percent increase in production capacity at the existing site with new bioreactor capacity and purification lines representing the majority of the investment. Huningue sits on the border of France and Switzerland and is in close proximity to Novartis’ headquarters and research operations in Basel, Switzerland. This was not Novartis’ first recent announcement that it was investing in production close to home. In 2012, the company announced that it was replacing an existing manufacturing building in Stein, Switzerland, with a new, modern CHF 500 million production operation. The new operation will produce solid dosage form products for global markets. The Stein site is located about 50 kilometers from the company’s headquarters in Basel. The new operation is expected to be in full

AREA DEVELOPMENT | 2017 Annual Directory

AS PHARMACEUTICAL COMPANIES BECAME GLOBAL BUSINESS ENTITIES AND AS PROFITS INCREASED, AN IMPORTANT ELEMENT OF ANY SITE SELECTION EFFORT BECAME MITIGATION OF TAX LIABILITY. operation by the end of this year. This trend in the location of announced investments can be characterized as a case of “everything old is new again.” Pharmaceutical production has historically been closely aligned to where the drug was discovered and the company was founded. Pfizer grew up around its original anti-parasitic drug production operations in Brooklyn, New York, and is still headquartered in Manhattan. Bayer is headquartered in Leverkusen, Germany, near its first production operations in the Rhine Valley near Elberfeld, Germany. More recent companies such as Amgen, founded in the 1980s, retain production operations near their first drug discovery laboratories in Southern California.

Lowering the Tax Burden Shortly after the formation of many drug companies during the industrial revolution in the mid to late-1800s, drug companies began to expand their production operations to serve additional markets and to take advantage of additional cost savings. This trend particularly gained momentum in the mid-1900s following World War II as prescription pharmaceutical drug discoveries multiplied, a global middle-class was taking root, and the world settled into relative stability. As pharmaceutical companies became global business entities and as profits increased, an important element of any site selection effort became mitigation of tax liability. For instance, Switzerland has long been recognized as a tax advantaged location and, because of this, the Swiss pharmaceutical conglomerates held a strategic advantage versus their competitors based in other markets. As a result of the quest to reduce the tax burden, in the late 1960s and 1970s the world saw the growth of pharmaceutical production clusters in places such as Puerto Rico, Ireland, and, eventually, Singapore — all of which had their own advantageous tax structures and access to talent pools to produce drug products. Many U.S.-based firms led the way in investing in these offshore markets as a hedge against the comparatively high U.S. tax burden for corporations. This is one of the key reasons blockbuster drugs (drugs generating more than $1 billion in annual global sales) such as Viagra were manufactured at a facility in Limerick, Ireland. This trend saw its apex in the 2000s with the onset of the global recession in 2008.

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The Drug Life Cycle Chain Where a pharmaceutical operation is located is also very dependent upon what exactly that facility does and where it sits within the drug life cycle chain. Drugs are first discovered and researched often in a university setting or in the laboratories of private companies. Drug candidates showing merit are then developed at small-scale production facilities, which are often located in either proximity to the research laboratory or to where larger scale production will eventually take place. Large-scale production operations are often located in either a tax-advantaged location or, for drugs that will carry less tax burdens, in locations with strong pharmaceutical production bases. Large-scale production can be coupled with fill/finish locations where drugs are put into their final dose form (e.g. droppers, vials, syringes, ampules, tablets, etc.) or these operations can be located independently, depending upon the company’s preference. Where drug production operations are located can also depend upon what type of drug is being produced. Vaccines are often considered a matter of national security and many countries require that the production of the most common vaccines be located within their borders. Generic drugs are not normally battling for the hearts and minds of consumers but rather for space on a pharmacy’s shelf; therefore, cost of production is a major consideration. It is for this reason, coupled with the strong emphasis on science education, that India is a major player in the global production of generic drugs. Over-the-counter medicines are also very dependent upon the cost of production with profits made on volume. As a result, India and China produce much of the world’s supply of active pharmaceutical ingredients for use in products such as acetaminophen or aspirin.

The Challenges The trend of locating production operations in taxadvantaged locations has held particularly true for biologic drug production facilities and remains valid today. The shift from small-molecule drug manufacturing to largemolecule biologics has required investment in new production facilities and has also represented an opportunity for companies to optimize the facilities’ location based upon tax considerations.

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Nonetheless, this strategy of locating drug production in tax-advantaged nations is not wholly without its challenges. Ireland, with a population of 4.5 million, is smaller in population size than the Atlanta metropolitan area and already home to multiple large-scale drug production facilities prompting questions about how many of these operations the country can sustain. Singapore, with roughly the same population as Ireland, faces this same challenge coupled with a land mass 1 percent of the size and a 12-hour time zone difference from New York. With a population of eight million, Switzerland is roughly double the size of Ireland and Singapore, and aside from corporate tax levies, is one of the most expensive places in the world to live, particularly for expats. Puerto Rico’s status as a tax advantaged location ended with the repeal of Section 936 of the U.S. tax code in 2006, which had allowed Puerto Rico plants to send all profits to their U.S. parents without federal tax burdens. As a result, many pharmaceutical operations have exited the island and new investments in Puerto Rico have decreased to a crawl.

Recent Developments With the emergence of blockbuster drugs and biologics in the late 1980s, investments in new pharmaceutical production operations blossomed through the 1990s and early 2000s. This trend began to ebb in the mid-2000s due to a lack of new drug candidates, expiration of existing patents

on blockbusters, changes in production technologies, and a global excess in production capacity. The global recession of the late 2000s put an even tighter lock on investments in pharmaceutical manufacturing operations. As the world has slowly emerged from this recession, investments in production capacity are again taking place, but not at nearly the pace seen previously. One of the winners in this global competition for investments in pharmaceutical operations is one of the usual suspects in Ireland. Pfizer announced a $30 million laboratory expansion in Ringaskiddy, Ireland, in 2014 and announced last year that it was hiring 130 people at operations in Dublin and Cork. Also in 2014, AbbVie announced the investment of €85 million in an expansion of its Sligo, Ireland, site. Amgen purchased the former Pfizer production facility in Dún Laoghaire, Ireland, and has invested $300 million in it since 2010. Regeneron announced a $310 million investment in its Limerick operations, including the creation of 200 jobs in October 2015. This is not to say that the United States has not seen some major announcements itself. In addition to the Takeda project referenced earlier, in early 2016, Novo Nordisk announced a massive $2 billion investment in a diabetes medicine production facility at its Clayton, North Carolina, manufacturing site. The operation will produce active pharmaceutical ingredients for a range of the Danish company’s insulin products. ■

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INFRASTRUCTURE/GOVERNMENT

The Infrastructure Bandwagon The Trump administration’s promise to rebuild the nation’s infrastructure leaves a lot of unanswered questions, but one thing is certain: the work is long overdue and will cost a lot more than the promised $1 trillion investment. By Tim Feemster, Managing Principal, Foremost Quality Logistics

s it time to dust off those “shovel-ready” projects now that infrastructure spending to the tune of $1 trillion is an early focus of the Trump administration? The answer is not clear. Donald Trump has promised to rebuild the nation’s infrastructure. And while $1 trillion, even over 10 years, is a big number, the American Society of Civil Engineers (ASCE) says properly addressing the nation’s infrastructure needs by 2020 will require between $3 trillion and $4 trillion.

The Coming Battle: Public or Private Works?

Ports/Intermodal Rail Many port projects involving dredging as well as road and intermodal rail access are either in the advanced planning and funding stages or are ongoing in order to accommodate the fleet of mega-containerships (18,000 to 21,000 TEUs) coming into service as a result of the Panama Ca-

courtesy Georgia Ports Authority

The stage is set for battles on several fronts: which projects will be chosen? How will they be funded? Do existing, ongoing projects qualify? And how will the plan be structured? Rather than the usual straightforward appropriation/authorization process based on greatest need, the Trump approach envisions a system of tax cuts and credits for corporations, plus an “infrastructure bank” for projects. This sounds like privatization of public works projects on a massive scale. Even more problematic for transportation and logistics, “Private investors would only fund projects that have tolls or user fees that can recoup investment costs. Therefore, critical infrastructure needs like repairing aging pipes, deepening ports, or fixing existing roads and bridges without tolls may go neglected under Trump’s plan,” according to a report by The Hill.1 So what might an infrastructure plan mean for logistics and goods move-

ment? “Infrastructure investment is one key to improving productivity, and therefore business profits and employee wages. Wisely targeted investments can lift the standard of living over time. For industrial real estate, better infrastructure creates new opportunities for development and for businesses to improve their supply chains,” says Robert Bach, Director of Research – Americas, Newmark Grubb Knight Frank.

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Planned Po r t I nf r a st r uct ure I nv est m ent Port Region

Ports’ Projected Capital Expenditures (2016–2020)

Projected Private-Sector Capital Expenditures (2016–2020)

Total Projected Capital Expenditures (2016–2020)

collectively requestnal expansion project North Atlantic $3.64 billion $1.22 billion $4.85 billion ing over $9.3 billion that was completed South Atlantic $7.59 billion $1.79 billion $9.38 billion in funding. It’s unin 2016. Many have Gulf Coast $4.99 billion $122.79 billion $127.79 billion clear how, or even if, funding regimes in Great Lakes $503.20 million $504.50 million $1.01 billion a Trump infrastrucplace, so a new inNorth Pacific $1.29 billion $2.73 billion $4.03 billion ture program that frastructure program South Pacific $4.57 billion $3.14 billion $7.71 billion stresses private capilikely would have Totals: $22.6 billion $132.17 billion $154.77 billion tal investment based little impact on them. 2 on tax credits will One example is Source: AAPA 2016–2020 Planned Port Infrastructure Investment Survey work with the TIGER the Port Authority of grant program. New York and New The same can be said for the FAST Act, which estabJersey’s Bayonne Bridge project to raise the roadway to lished a “National Multimodal Freight Policy” designed to 215 feet to accommodate the passage of larger vessels into identify strategies and best practices to improve intermodal New York harbor. In 2013, the port authorized $1.29 billion connectivity and the performance of the national freight for this project, funded entirely by the port authority. It is system. FAST set up a discretionary freight-focused grant estimated that from 2014 to 2018, the project will support program to invest $4.5 billion over five years and estabnearly 2,800 jobs and $240 million in wages throughout the lished a National Highway Freight Program providing $6.3 construction industry. billion formula funds over five years for states to invest in Similarly, the Port of Jacksonville’s new $30 million infreight projects on the National Highway Freight Network. termodal container transfer facility (ICTF) opened recently, Up to 10 percent of the funds can be used for intermodal providing on-dock rail service to the port’s North Jacksonprojects. ville seaport terminals — the Blount Island Marine TermiThe American Association of Port Authorities (AAPA) nal and the TraPac Container Terminal at Dames Point. The recommends that the Trump infrastructure plan embrace facility was constructed with $20 million in funding from and include the TIGER and FAST programs at increased the state of Florida and $10 million from U.S. Department funding levels. In a letter to the Trump transition team, of Transportation TIGER-grant funds. AAPA noted, “Local port authorities and their private-secDOT says the Transportation Investment Generating tor partners are doing their part, with plans to invest over Economic Recovery (TIGER) grant program “supports $155 billion in infrastructure over the innovative projects, including multinext five years.” modal and multijurisdictional projects, Edward Hamburger, president and which are difficult to fund through St a t es W it h CEO of the American Association of traditional federal programs.” Since G rea t est Railroads, urged Trump to create a 2009, the TIGER grant program has N um ber o f sustainable funding source for the provided a combined $5.1 billion to B r idges in B a d Highway Trust Fund, such as a weight 421 projects in all 50 states, the District Co ndit io n distance fee. He said any corporate tax of Columbia, Puerto Rico, Guam, the reform in Congress should be paired Virgin Islands, and tribal communiwith a deal for an infrastructureties. These federal funds leverage funding source. But long-term funding money from private-sector partners, Pennsylvania 5,050 solutions have long evaded Washingstates, local governments, metropoliIowa 5,022 ton: the federal gas tax hasn’t been tan planning organizations, and transit Oklahoma 4,216 raised in over 20 years. Hamberger agencies. The 2016 TIGER round is leMissouri 3,310 says the Trump administration should veraging nearly $500 million in federal Nebraska 2,654 seriously consider solutions such as investment to support $1.74 billion in California 2,501 a weight distance fee “to establish a overall transportation investments. Kansas 2,416 truly equitable system.” But demand for the 2016 TIGER Mississippi 2,275 CSX’s ambitious National Gateway grant program exceeded available Illinois 2,216 Project is a public-private partnerfunds; DOT received 585 eligible appliNorth Carolina 2,199 3 ship featuring more than $850 million cations from all 50 states, and several Source: RT.com in freight rail infrastructure investU.S. territories, tribal communities, citment, a combination of contributions ies, and towns throughout the nation, AREA DEVELOPMENT | 2017 Annual Directory

from CSX, the federal government, and individual states. According to CSX, the National Gateway will create over 50,000 jobs and is supported by a diverse group of 336 public- and private-sector organizations and individuals. The railroads are the only transportation mode that typically has the responsibility to fund their own infrastructure. Truckers have the Highway Trust Fund, airlines have the FAA, and ports have the Harbor Maintenance Fee (HMF).

Roads/Bridges Whatever emerges under a Trump infrastructure program could focus on road and bridge projects. Those are the areas of greatest need, plus they provide the greatest opportunity for private investors to recoup and profit from their investments through fees and tolls. The road and bridge report card by ASCE is barely passing: it gave America’s infrastructure an overall grade of D+ on its 2013 report card (the report is issued every four years) and estimated that roads, highways, bridges, water systems, schools, and transportation systems collectively will need $3.6 trillion in investment by 2020. The raw numbers are distressing: 28 percent of major urban roads in substandard or poor condition, 240,000 water main breaks each year, 58,495 structurally deficient bridges.

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AREA DEVELOPMENT

The 250 most-frequently-crossed bridges that rate as “structurally deficient” are on urban interstate highways, particularly in California. Nearly 87 percent of these bridges were built before 1970. States with the greatest number of bad bridges, as reported by RT.com are shown in the accompanying chart. The Federal Highway Administration has estimated that $170 billion in capital investment would be needed on an annual basis to significantly improve road conditions and performance. My wish-list would be to make the following interstate highways — I-5, I-35, I-55, I-65, I-75, I-81, I-95, I-10, I-20, I-40, I-70, I-80, I-90 — at least three lanes in both directions; four lanes or more in proximity to major metros; and prohibit trucks in left lanes except on roads of fewer than three lanes in each direction or in emergencies to route around an accident; and also to fix the bridges on these routes. That would be a huge — and much needed — positive revision of the interstate highway system that could easily dwarf whatever public or privately funded infrastructure program is enacted by the Trump administration. ■ 1 http://thehill.com/policy/transportation/306847-five-things-to-know-about-trumps-infrastructureplan 2 http://aapa.files.cms-plus.com/SeminarPresentations/2016Seminars/2016PRCommitteeMarch Meeting/2016-2020%20Port%20Planned%20Infrastructure%20Investment%20Survey%203-3-2016. pdf 3 https://www.rt.com/usa/246041-deficient-bridges-usa-infrastructure/

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for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

Annual DIRECTORY of STATE & SELECT SITES Contacts Index To Regional Reviews and State Information

For STATE CONTACTS and contact information on all SELECT SITES, see the listings beginning on page 99 after the Regional Reviews and state-by-state information. This directory is organized by region and states within each region. Information on each state’s population/labor force, educational attainment levels, top industry clusters, and principal manufacturing industries can be found on the pages that follow. Following all the regional/state information are the listings for the state-level contacts and for all of the SELECT SITES — also organized regionally. These are the organizations that are sponsoring this issue. Web and e-mail addresses are included for these listings within this directory, as well as on the Web/Ad Index page in the back of the magazine. More detailed information on all of the SELECT SITES — as well as contacts for thousands of economic development agencies — can be accessed on www.FacilityLocations.com. Every effort has been made to include the most active economic development organizations so that www.FacilityLocations.com will be a useful source of information on all areas of the United States as well as Canada, Mexico, other nations around the globe. Listings for location consultants are also provided in our online directory — www.FacilityLocations.com. All of these organizations can help with your site selection needs.

The charts on the following pages of our Annual Directory issue contain data supplied by Emsi. Emsi is a labor market and economic analytics firm based in Moscow, Idaho. It supplies data via software and consulting to hundreds of economic development organizations, workforce agencies, educational institutions, and companies in the U.S., UK, and Canada. For more, visit economicmodeling.com. Sources of data: Population/Labor Force Data — Emsi 2016.4 and BLS Note: In a few instances, total jobs numbers are higher than labor force numbers because total jobs figures include military workers and miscellaneous federal government/railroad jobs not captured by BLS in its standard labor market data based on unemployment insurance rolls. Educational Attainment — Emsi and U.S. Census Bureau Top Industry Clusters — Emsi Developer (via BLS, Census, BEA and Emsi’s Input-Output Model) Principal Manufacturing Industries — Emsi 2016.4 (via BLS, Census, and BEA)

NEW ENGLAND Connecticut Maine Massachusetts New Hampshire Rhode Island Vermont pg. 40 MID-ATLANTIC Delaware Maryland New Jersey New York Pennsylvania pg. 45 MIDWEST Illinois Indiana Iowa Michigan Minnesota Missouri Ohio Wisconsin pg. 50 PLAINS Kansas Nebraska North Dakota South Dakota pg. 57 SOUTH Alabama Arkansas Kentucky Louisiana Mississippi Tennessee pg. 61

SOUTH ATLANTIC Florida Georgia North Carolina South Carolina Virginia West Virginia pg. 69 SOUTHWEST Arizona New Mexico Oklahoma Texas pg. 76 MOUNTAIN Colorado Idaho Montana Nevada Utah Wyoming pg. 83 PACIFIC Alaska California Hawaii Oregon Washington pg. 87 CANADA pg. 92 MEXICO pg. 97

Note: If you are an economic developer and your organization is not listed on FacilityLocations.com, contact mshea@areadevelopment.com.

Visit for SELECT SITES profiles and links. AREA DEVELOPMENT | 2017 Annual Directory

Connecticut

New England

Maine Massachusetts New Hampshire Rhode Island Vermont

THE NEW ENGLAND ECONOMY continues to move in a mostly positive direction, according to research released by the Federal Reserve Bank of Boston. Pretty much every sector of the economy has seen year-over-year increases in employment as of the third quarter of 2016, according to the Boston Fed, led by construction, hospitality, and information, all of which outpaced national figures. It’s a turnaround from a year or so earlier, when much of the region lagged the nation in terms of economic recovery. Jobless rates, in fact, have now hit levels that are historically linked to labor shortages. By September 2016 unemployment was as low as 2.9 percent in New Hampshire, 3.3 percent in Vermont, 3.6 percent in Massachusetts, and 4.1 percent in Maine, all lower than the national average of 5.0 percent that month. On the other hand, two states checked in with jobless

A SLOW, BUT STEADY PACE OF GROWTH

Although growth had been lagging in the New England States, they’re now catching up to the rest of the nation in terms of economic recovery.

2016 Educational Attainment

Less Than 9th Grade 9th Grade to 12th Grade High School Diploma Some College Associate’s Degree Bachelor’s Degree Graduate Degree and Higher

STATE Connecticut Maine Massachusetts New Hampshire Rhode Island Vermont

Connecticut

Maine

Massachusetts

New Hampshire

Rhode Island

Vermont

5.3% 5.8% 27.9% 17.2% 7.2% 20.4% 16.2%

3.9% 5.0% 33.6% 19.9% 9.4% 18.3% 9.9%

5.9% 5.3% 25.6% 15.8% 7.6% 22.3% 17.5%

3.2% 4.9% 29.0% 18.9% 9.5% 21.5% 12.9%

7.7% 8.0% 27.8% 18.0% 8.0% 18.3% 12.3%

3.6% 5.0% 30.9% 17.4% 8.2% 20.9% 14.0%

POPULATION

TOTAL LABOR FORCE

3,596,875 1,330,388 6,838,166 1,333,951 1,056,686 626,447

1,898,367 693,251 3,589,634 749,994 554,536 343,210

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JOBS 1,736,725 623,766 3,647,238 667,602 498,161 329,431

% CHANGE SINCE 2012

UNEMPLOYMENT (SEPTEMBER 2016)

3% 3% 7% 5% 6% 4%

5.4% 4.1% 3.6% 2.9% 5.6% 3.3%

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connecticut Water Transportation Insurance Services Financial Services Education and Knowledge Creation Aerospace Vehicles and Defense

maine

massachusetts

rhode island

Education and Knowledge Creation Financial Services Information Technology and Analytical Instruments Business Services Biopharmaceuticals

Water Transportation Education and Knowledge Creation Business Services Federal Government Services Financial Services

To p Industry Clusters

Water Transportation Business Services Biopharmaceuticals Paper and Packaging Federal Government Services

new hampshire Aerospace Vehicles and Defense Distribution and Electronic Commerce Insurance Services Information Technology and Analytical Instruments Production Technology and Heavy Machinery

vermont Hospitality and Tourism Business Services Food Processing and Manufacturing Education and Knowledge Creation Information Technology and Analytical Instruments

* Based on job growth, earnings, GRP, regional competitiveness, and regional specialization

rates above the national average — 5.4 percent in Connecticut and 5.6 percent in Rhode Island.

Technology Driving G r o w t h Technology-related sectors are major economic drivers in New England, particularly in the longtime R&D hotbed of Massachusetts, which for generations has been renowned for the brainpower residing on its university campuses. Indeed, the State Technology and Science Index from the Milken Institute has once again named Massachusetts the nation’s most innovative state (Massachusetts has topped the list every time it’s been calculated since 2002). Among the region’s biggest tech-related headlines was

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word from Akamai Technologies that it plans to expand its corporate headquarters in Cambridge, Mass. The tech company is spread across six buildings there now and plans to consolidate into two — and in the process add 700 jobs to the 1,666 already there. Total investment is $136 million. Another 400 new tech jobs are promised in Lowell, where cloud-based workforce management solutions provider Kronos plans to move its headquarters from nearby Chelmsford. The company already employs about 1,300 in the area. Rhode Island may be small but it gets its share of technology development, too. One of the past year’s biggest announcements involved plans by GE Digital to launch an information technology center in Providence, with the potential to create hundreds of

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AREA DEVELOPMENT | 2017 Annual Directory

The technology and life sciences sectors are major economic drivers in the New England region.

Connecticut PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

Aerospace Product and Parts Manufacturing

2012-2016 % Job Change

17%

22%

(9%)

Ship and Boat Building

24%

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

(13%)

Medical Equipment and Supplies Manufacturing

(12%)

Printing and Related Support Activities

Plastics Product Manufacturing

Other Fabricated Metal Product Manufacturing

Other Electrical Equipment and Component Manufacturing

(9%)

Pharmaceutical and Medicine Manufacturing

11%

(25%)

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

14%

12%

17%

Pulp, Paper, and Paperboard Mills

14%

(32%)

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

(7%)

Plastics Product Manufacturing

13%

Other Wood Product Manufacturing

Sawmills and Wood Preservation

10%

Pharmaceutical and Medicine Manufacturing

11%

23%

Footwear Manufacturing

11%

Aerospace Product and Parts Manufacturing

Beverage Manufacturing

20%

Maine PRINCIPAL MANUFACTURING INDUSTRIES Ship and Boat Building

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new jobs, starting with about a hundred at the outset. The company cited strong university partnership opportunities and a healthy tech talent pipeline in making its decision. The life sciences are historically strong in the region, too, again led by Massachusetts. Among the developments there, Siemens Healthcare Diagnostics intends to invest $300 million in an expansion of its office, warehouse, and lab space in the Massachusetts community of Walpole. As many as 400 new jobs will join the 600plus that will be retained.

Limited But Growing Strengths Manufacturing job growth across the region is on a much smaller scale — it’s the most lackluster of all industry sectors, according to the Boston Fed. On the other hand, growth is growth, and it’s noteworthy that the region’s slim manufacturing growth stands in contrast to the national year-over-year figures, which reveal a decline. In this arena, Henkel Corp. made headlines on a couple of occasions in the past year, first by acquiring The Sun Products Corp. in Wilton, Conn. Later in the year, the company announced plans to pick up the headquarters of its laundry and home care segment, as well as its beauty care headquarters, and move them from Arizona to the Connecticut community of Stamford. The big picture is that the company is retaining the jobs at Sun Products, and bringing in up to 266 more. A similar situation involves the Italian aerospace company Pietro Rosa TBM. It acquired New England Airfoil Products in Connecticut, and opted to retain the current workforce and create as many as 100 new jobs over the next five years. New England’s largest metal

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training, and has benefited more than 1,500 companies and fabrication, machining, and power coating operation is contributed to the creation or retention of about 22,500 jobs. Vermont-based NSA Industries, which spent 2016 seeking Meanwhile, the First Five Plus program is designed to boost opportunities to grow. That included capital investments large-scale expansion or relocation projects, with a focus on in Vermont and a job-creating expansion in a former paper mill in New Hampshire. New England’s financial services sector has been growing, albeit at a slower pace than the national financial sector as a whole. Among noteworthy Share of 2012-2016 Share of PRINCIPAL MANUFACTURING Total developments, AQR Capital Manage% Job Mfg. Total Mfg. GRP Change Jobs INDUSTRIES ment has headquarters in Connecticut for its global investment management Navigational, Measuring, Electromedical, operations, and the company is making and Control Instruments Manufacturing 10% 14% 1% positive strides. In 2016 AQR announced plans to invest more than $72 Semiconductor and Other Electronic Component Manufacturing 6% 7% (11%) million over the next decade, expanding its headquarters and operations. In adComputer and Peripheral Equipment dition to 540 jobs retained, as many as Manufacturing 5% 7% 0% 600 new jobs are promised. Plastics Product Manufacturing 5% 3% 6%

Massachusetts

Natural Resources’ R o l e Natural resources play a significant role across New England, particularly to the north. In Maine, for example, Twin Rivers Paper Co. moved to build upon its strengths as an integrated forest products company. By acquiring the paper manufacturing assets of the New York-based Burrows Paper Corp., Twin Rivers aims to solidify its position as a market leader in the lightweight packaging, publishing, and label markets. Natural resources play a key role in the Vermont culture, too, from tourism to Ben & Jerry’s ice cream, and the state is working to keep building upon its reputation. Its Working Lands Enterprise Initiative grants support projects across forestry and agriculture, and new loan pilot programs are backing working lands entrepreneurs and dairy farms that are transitioning to organic production. The Vermont Economic Development Authority had a record 2016 in terms of overall financing as well as agricultural loan approvals.

Pro-Business I n i t i a t i v e s In pretty much every part of the region, state and local leaders are exploring a variety of ways to grow their economies. The state of Connecticut, for example, builds upon its economic strengths with a variety of programs designed to facilitate growth. Its Small Business Express program gives small businesses access to capital and job

Printing and Related Support Activities

(7%)

Medical Equipment and Supplies Manufacturing

(8%)

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

Pharmaceutical and Medicine Manufacturing

15%

18%

Aerospace Product and Parts Manufacturing

(11%)

Bakeries and Tortilla Manufacturing

(4%)

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

11%

16%

(4%)

Semiconductor and Other Electronic Component Manufacturing

Other Fabricated Metal Product Manufacturing

Plastics Product Manufacturing

(2%)

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

(2%)

Other Electrical Equipment and Component Manufacturing

19%

Printing and Related Support Activities

Medical Equipment and Supplies Manufacturing

Other Miscellaneous Manufacturing

(10%)

Commercial and Service Industry Machinery Manufacturing

(16%)

New Hampshire PRINCIPAL MANUFACTURING INDUSTRIES Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

AREA DEVELOPMENT | 2017 Annual Directory

Rhode Island PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Ship and Boat Building

11%

30%

Other Miscellaneous Manufacturing

10%

(6%)

Plastics Product Manufacturing

Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

(10%)

Printing and Related Support Activities

21%

Bakeries and Tortilla Manufacturing

Converted Paper Product Manufacturing

33%

Pharmaceutical and Medicine Manufacturing

14%

Medical Equipment and Supplies Manufacturing

(7%)

Fabric Mills

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Ve r m o n t PRINCIPAL MANUFACTURING INDUSTRIES Semiconductor and Other Electronic Component Manufacturing

12%

17%

(29%)

Dairy Product Manufacturing

Other Food Manufacturing

(5%)

Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

(27%)

Aerospace Product and Parts Manufacturing

(6%)

Household and Institutional Furniture and Kitchen Cabinet Manufacturing

(2%)

Plastics Product Manufacturing

Bakeries and Tortilla Manufacturing

22%

Other Miscellaneous Manufacturing

14%

Printing and Related Support Activities

(3%)

AREA DEVELOPMENT

generating capital investment and creating jobs. According to a recent analysis of the program, just over a dozen companies have signed up to participate, and they’ve collectively invested more than $1.3 billion in infrastructure and human capital, creating nearly 3,800 jobs. The state of New Hampshire is making a variety of ongoing investments to boost innovation. For example, nearly 200 companies were awarded research and development tax credits in the past year. Companies of all sizes are eligible for the state’s program, which is based on qualified manufacturing research and development. And the New Hampshire Department of Resources and Economic Development recently landed federal grant money to help businesses expand their global opportunities. Among the ways Rhode Island supports business growth is the Innovation Voucher program. A recent round of voucher funding is supporting six small companies that have entered into R&D partnerships with local universities. The recipients are involved in everything from life sciences to wind energy advancements to wireless charging of unmanned air and underwater vehicles. Also recognizing that big ideas tend to start small, the publicly financed Maine Technology Institute recently launched a new round of seed grant funding for 19 fledgling tech companies, plus several development loans and TechStart grants. Maine’s leadership offered additional signals of the state’s intent to keep moving in businessfriendly directions — the governor, for example, laid out a proposal to gradually scale back Maine’s income tax until it hits zero in 2024. — Steve Stackhouse-Kaelble

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Delaware

Mid-Atlantic

Maryland New Jersey New York Pennsylvania

INVESTMENTS MOVING AT A HEALTHY CLIP

Unemployment rates across the region are mixed, but companies in a variety of industry sectors have pledged investments and the creation of new jobs.

2016 Educational Attainment

Less Than 9th Grade 9th Grade to 12th Grade High School Diploma Some College Associate’s Degree Bachelor’s Degree Graduate Degree and Higher

Delaware

Maryland

New Jersey

5.2% 7.1% 31.5% 19.3% 7.6% 17.4% 11.9%

5.3% 6.4% 25.8% 19.2% 6.4% 20.1% 16.8%

6.4% 6.0% 28.7% 16.7% 6.2% 22.3% 13.7%

STATE

POPULATION

TOTAL LABOR FORCE

Delaware Maryland New Jersey New York Pennsylvania

955,000 6,051,981 8,992,512 19,872,680 12,826,642

472,628 3,163,386 4,542,898 9,630,584 6,524,910

THE ECONOMIES OF THE MID-ATLANTIC STATES are moving forward at a healthy clip. There are plenty of positive headlines across practically every sector, from finance to manufacturing to distribution. Jobs are being created in everything from high-tech R&D to wealth management to snack food manufacturing. In the New York community of Rochester, state and local officials have been working to fire up a national hub for the photonics industry, and the efforts have generated some significant promises, even if the activity is materializing only gradually. Most notably, the state announced in March that two leading photonics companies had pledged to invest $1.6 billion and create more than 1,400 new jobs over the next several years — the exact timetable was not certain. Avogy’s proposal would move its headquarters to New York from Silicon Valley. Expansions and investments in New York run the gamut of industry types. Some 600 jobs were promised by insurance giant GEICO when it announced an expansion of service center operations in western New York. The company has more New York Pennsylvania than 6,300 employees in New York, nearly half at its Buffalo 7.8% 4.4% regional office. The distribution 7.5% 7.2% sector saw such announce27.1% 36.7% ments as the 466-job plan by 16.0% 16.1% Dick’s Sporting Goods, involv8.3% 7.6% ing a $100 million regional 18.9% 17.0% distribution facility in Conklin. There’s a variety of activity 14.4% 11.0% in food-related manufactur-

JOBS

467,244 2,809,796 4,088,986 9,412,034 6,000,808

% CHANGE SINCE 2012 9% 5% 5% 6% 3%

UNEMPLOYMENT (SEPTEMBER 2016) 4.3% 4.2% 5.3% 5.0% 5.7%

AREA DEVELOPMENT | 2017 Annual Directory

new jersey

pennsylvania

Biopharmaceuticals Downstream Chemical Products Medical Devices Education and Knowledge Creation Financial Services

Business Services Financial Services Biopharmaceuticals Communications Equipment and Services Education and Knowledge Creation

delaware Financial Services Local Financial Services Downstream Chemical Products Distribution and Electronic Commerce Livestock Processing

maryland

To p Industry Clusters

Federal Government Services Biopharmaceuticals Aerospace Vehicles and Defense Business Services Education and Knowledge Creation

new york

Financial Services Video Production and Distribution Marketing, Design, and Publishing Education and Knowledge Creation Business Services

* Based on job growth, earnings, GRP, regional competitiveness, and regional specialization

Delaware PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Animal Slaughtering and Processing

30%

12%

Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

10%

13%

Basic Chemical Manufacturing

16%

133%

Plastics Product Manufacturing

Medical Equipment and Supplies Manufacturing

(7%)

Architectural and Structural Metals Manufacturing

(5%)

Other Electrical Equipment and Component Manufacturing

23%

Converted Paper Product Manufacturing

(12%)

Petroleum and Coal Products Manufacturing

22%

12%

Printing and Related Support Activities

(7%)

ing, from a $25 million, Chex-producing General Mills investment in Buffalo to an expansion at the Genesee Brewery that would create an “eco-brewery district” in Rochester and create some 128 jobs. Those food-industry gains will help offset the loss of New York City’s last remaining milk-processing plant, Elmhurst Dairy, which shut down at the end of October and idled nearly 300 workers. Elsewhere on the manufacturing scene, American Packaging is promising more than 260 new jobs in Monroe County at a new facility, and designer eyewear maker Warby Parker is planning a new Rockland County optical lab that’s worth at least 128 new jobs. Alstom Transportation wants to build next-generation high-speed trains for Amtrak, and wants to do so in Steuben County — that’ll entail a $30 million, 200job expansion. However, from those train-

Investments in communication helped New York land the top slot in a “50 States of Broadband”study. 46

AREA DEVELOPMENT

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Maryland

related gains, subtract 48 jobs that’ll be lost through the closure of GE Transportation’s locomotive turbocharger plant near Albany Share of 2012-2016 Share of PRINCIPAL MANUFACTURING Total — production will be shifting to India. % Job Mfg. Total Mfg. Plenty of investments across New York GRP Change Jobs INDUSTRIES are geared toward ushering in future prosperity, from hundreds of millions of dollars Navigational, Measuring, Electromedical, and Control Instruments Manufacturing 11% 14% (2%) in highway infrastructure work announced in the past year to major investments in Printing and Related Support Activities 7% 3% (6%) clean-energy projects. One example is Pharmaceutical and Medicine Manufacturing 7% 26% 8% the series of NY Green Bank investments Plastics Product Manufacturing 6% 4% (1%) announced in May, totaling as much as $220 million that will go into residential Bakeries and Tortilla Manufacturing 4% 2% 12% and industrial solar power installations. The Other Food Manufacturing 3% 2% 9% burgeoning unmanned aircraft systems Animal Slaughtering and Processing 3% 1% 18% industry in Central New York could get a Beverage Manufacturing 3% 3% (4%) boost from a $30 million plan to develop a 50-mile flight traffic management system Communications Equipment Manufacturing 3% 6% (13%) between Syracuse and Rome, N.Y. InvestCement and Concrete Product Manufacturing 3% 2% 35% ments in communications infrastructure helped the state land the top slot in the from the resources at the center. One of the most recent an“50 States of Broadband” study of broadband activity and nouncements welcomed early-stage drug discovery companies investment, conducted by Strategic Networks Group. Quixgen and API Pharma Tech to the roster. Meanwhile, the In New Jersey, the Commercialization Center for Innovastate’s Technology Business Tax Certificate Transfer (NOL) tive Technologies is a hub for life sciences activity — more Program gives technology companies options to raise funds by than 40 emerging companies in that sector have benefited

CAYUGA COUNTY

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CAYUGA ECONOMIC DEVELOPMENT AGENCY 2 State Street, Auburn, NY 13021

(315) 252-3500

C AY U G A E D A . O R G AREA0639.indd 1

13/10/16 4:43 AM

AREA DEVELOPMENT | 2017 Annual Directory

The headlines from Pennsylvania suggest an economy growing on multiple fronts. To begin with, the state demonstrated its advantages as a prime distribution location with the announcement of 5,000 new full-time jobs courtesy of online retailer Amazon. The company has multiple sites across Pennsylvania, and plans to invest at least $150 million in those sites over the next three years. Another 680 new jobs were promised by FedEx Ground when it announced plans for a distribution center in Northampton County. And a Lebanon Valley Cold Storage and Distribution Center promises to deliver frozen bakery products and more than 130 new jobs in the community of Lebanon. On the technology front, the prominent healthcare IT company Cerner Corp. Share of 2012-2016 is planning to expand its Chester County Total Mfg. % Job operations, which means up to 250 new GRP Change high-paying jobs. At least 80 new jobs are in the works through the headquar23% (13%) ters expansion of WebpageFX in Harris3% (12%) burg. A corporate tax solutions provider, Vertex, is consolidating operations in King 3% 16% of Prussia and creating 225 new jobs. Envestnet Inc., which offers unified wealth 5% (9%) management technology and services, is bringing more than 150 new jobs to 6% 2% Chester County. 2% 4% And in manufacturing, there’s a whole 3% (4%) lot happening in the Keystone State. For example, Manitowoc Cranes is growing 10% 1% in Franklin County and promising 250 new jobs. Whitehall Specialties hopes to 3% 19% employ 80 people in cheese production in Lawrence County. Champion Modular 2% 0% Inc., maker of homes and commercial structures, intends to hire 264 as it reopens a vacant manufacturing facility in Juniata County. And Almac Group, contract pharmaceutical maker, is expanding Share of 2012-2016 its existing U.S. headquarters in MontTotal Mfg. % Job gomery County with the intention of GRP Change creating 312 new jobs over the next three years. Meanwhile, one of Pennsylvania’s 2% 12% most prominent brand names reduced its payroll in 2016 — Kraft Heinz shuttered a 6% 1% Lehigh Valley plant that had been making 3% (6%) ketchup and other Heinz products for 11% (2%) more than four decades. In Delaware, some of the year’s biggest 3% 2% news came from the merging of DuPont and Dow, which announced back in Febru5% (7%) ary that their combined agriculture com3% 2% pany would be based in Delaware. They 2% (11%) had already announced plans to base their specialty products business in Delaware. The merger, slated to close in 2017, would 3% (2%) create three companies, two of which would be headquartered in Delaware. 4% (2%)

selling tax losses or R&D tax credits — more than 40 growing companies are on tap to benefit in fiscal 2017. Another helpful tool has been the state’s Angel Investor Tax Credit Program. It offers refundable tax credits for investments in emerging technology businesses that are involved in research, manufacturing or tech commercialization in New Jersey. More credits are available by way of the Grow New Jersey program, which helped land the Jersey City corporate headquarters of World Business Lenders, a provider of short-term business loans that has promised to create more than 200 jobs.

New Jersey PRINCIPAL MANUFACTURING INDUSTRIES Pharmaceutical and Medicine Manufacturing

Share of Total Mfg. Jobs

10%

Printing and Related Support Activities

Plastics Product Manufacturing

Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

Medical Equipment and Supplies Manufacturing

Bakeries and Tortilla Manufacturing

Converted Paper Product Manufacturing

Soap, Cleaning Compound, and Toilet Preparation Manufacturing

Other Food Manufacturing

Semiconductor and Other Electronic Component Manufacturing

N e w Yo r k PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Bakeries and Tortilla Manufacturing

Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

Printing and Related Support Activities

Pharmaceutical and Medicine Manufacturing

Other Miscellaneous Manufacturing

Semiconductor and Other Electronic Component Manufacturing

Plastics Product Manufacturing

Cut and Sew Apparel Manufacturing

Medical Equipment and Supplies Manufacturing

Other General Purpose Machinery Manufacturing

AREA DEVELOPMENT

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

Other significant Delaware updates include the opening of Alpha Technologies’ new headquarters in downtown Wilmington. Alpha is a provider of IT solutions and consulting services, and its facility came with a promise of 240 jobs. A Techmer ES engineered thermoplastic compounds operation opened in New Castle in 2016, with 60 on the payroll. And the April opening of AB Group Packaging in the Delaware community of Newark drew the attendance of the Irish ambassador to the U.S. The European packaging company’s first U.S. operation is to employ nearly 90 people by 2017. Maryland, too, has enjoyed significant growth across a wide range of industry sectors in the past year, from finance to healthcare to food processing and more. One of its biggest announcements came in November, when Morgan Stanley & Co. said it would expand in Baltimore City and create as many as 800 new jobs over the next four years. The company already employs about a thousand people in the area. In the healthcare arena, Novavax, which develops vaccines and is based in Gaithersburg, announced plans to expand its R&D and clinical trial support program — that would add up to 850 new jobs to the 400 already there. Prominent commercial real estate firm The Donohoe Companies announced its plan to move from the District of Columbia to nearby Bethesda, Maryland, bringing along 240 employees. The plan by Astrum Solar to expand in Annapolis Junction promises to yield another 240 jobs within the next three years. Supply chain solutions provider XPO Logistics has plans to create up to 400 jobs in Harford County. That’s near where Frito-Lay intends to grow its snack food manufacturing and distribution center. Jobless rates in the Mid-Atlantic States are mixed, according to the U.S. Bureau of Labor Statistics. The September 2016 unemployment rate ranged from 4.2 percent in Maryland and 4.3 percent in Delaware to 5.0 percent in New York, 5.3 percent in New Jersey, and 5.7 percent in Pennsylvania. — Steve Stackhouse-Kaelble

Pennsylvania PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Plastics Product Manufacturing

Printing and Related Support Activities

(6%)

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

(1%)

Architectural and Structural Metals Manufacturing

Converted Paper Product Manufacturing

Pharmaceutical and Medicine Manufacturing

12%

(6%)

Other Electrical Equipment and Component Manufacturing

Animal Slaughtering and Processing

14%

Other Wood Product Manufacturing

28%

Bakeries and Tortilla Manufacturing

(2%)

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AREA DEVELOPMENT | 2017 Annual Directory

Midwest AN ECONOMY BUFFETED BY THE WINDS OF CHANGE

There have been ups and downs in the world of Midwest auto manufacturing, but the region has also shown growth in the technology, agribusiness, and logistics/ distribution sectors.

Illinois

Minnesota

Indiana

Missouri

Iowa

Ohio

Michigan

Wisconsin

THE MIDWEST IS OFTEN REFERRED TO AS THE RUST BELT, a nod to its manufacturing heritage that has for quite some time been in decline. That is, of course, a vast oversimplification, and there’s plenty of health in the Midwest economy. Consider the Midwest Economy Index from the Federal Reserve Bank of Chicago. The most recent stats, covering October 2016, show an uptick that indicates regional growth higher than what national economic figures suggest it would be. As it happens, much of the boost in the relative Midwest Economy Index has to do with manufacturing. Indeed, manufacturing-intensive Indiana had an unemployment rate of 4.5 percent (September 2016). It was even lower in Minnesota, at 4.0 percent, and in Iowa (4.2 percent) and Wisconsin (4.1 percent). Another manufacturing stalwart, Michigan, recorded a jobless rate of 4.6 percent, while Ohio’s

2016 Educational Attainment

Less Than 9th Grade 9th Grade to 12th Grade High School Diploma Some College Associate’s Degree Bachelor’s Degree Graduate Degree and Higher

Illinois

Indiana

Iowa

Michigan

Minnesota

Missouri

Ohio

Wisconsin

6.9% 6.2% 27.0% 20.6% 7.5% 19.6% 12.2%

5.1% 7.7% 34.8% 20.6% 7.9% 15.2% 8.6%

4.6% 4.9% 32.7% 21.1% 10.4% 17.9% 8.5%

4.0% 7.1% 30.2% 23.5% 8.7% 16.2% 10.4%

4.1% 4.5% 26.4% 21.8% 10.3% 22.0% 11.0%

4.8% 7.6% 31.6% 22.2% 7.1% 16.7% 10.0%

3.8% 7.7% 34.8% 20.2% 7.9% 16.1% 9.6%

4.1% 5.7% 32.5% 20.5% 9.7% 18.2% 9.3%

STATE

POPULATION

TOTAL LABOR FORCE

Illinois Indiana Iowa Michigan Minnesota Missouri Ohio Wisconsin

12,877,014 6,647,077 3,138,133 9,928,527 5,523,832 6,105,590 11,627,646 5,790,767

6,565,918 3,361,624 1,723,388 4,856,760 2,982,038 3,152,310 5,732,874 3,135,925

AREA DEVELOPMENT

JOBS

6,081,745 3,115,403 1,622,554 4,385,416 2,933,431 2,878,891 5,554,446 2,943,657

% CHANGE SINCE 2012

UNEMPLOYMENT (SEPTEMBER 2016)

4% 6% 5% 8% 6% 4% 6% 5%

5.5% 4.5% 4.2% 4.6% 4.0% 5.2% 4.8% 4.1%

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

i llinois Bio pharmaceuticals Insurance Services Financial Services Medical Devices Distribution and Electronic Commerce

indiana

To p Industry Clusters

Biopharmaceuticals Trailers, Motor Homes, and Appliances (Manufacturing) Oil and Gas Production and Transportation Education and Knowledge Creation Upstream Metal Manufacturing

michigan

ohio

Automotive Trailers, Motor Homes, and Appliances (Manufacturing) Education and Knowledge Creation Business Services Metalworking Technology

Aerospace Vehicles and Defense Trailers, Motor Homes, and Appliances (Manufacturing) Automotive Business Services Insurance Services

Paper and Packaging Food Processing and Manufacturing Information Technology and Analytical Instruments Downstream Metal Products Agricultural Inputs and Services

Business Services Medical Devices Information Technology and Analytical Instruments Distribution and Electronic Commerce Marketing, Design, and Publishing

iowa Local Financial Services Insurance Services Local Food and Beverage Processing and Distribution Agricultural Inputs and Services Trailers, Motor Homes, and Appliances (Manufacturing)

wisconsin

minnesota

missouri Automotive Areospace Vehicles and Defense Business Services Financial Services Information Technology and Analytical Instruments

* Based on job growth, earnings, GRP, regional competitiveness, and regional specialization

Illinois PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Plastics Product Manufacturing

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

(4%)

Printing and Related Support Activities

(11%)

Motor Vehicle Parts Manufacturing

Bakeries and Tortilla Manufacturing

Agriculture, Construction, and Mining Machinery Manufacturing

(24%)

Pharmaceutical and Medicine Manufacturing

15%

12%

Converted Paper Product Manufacturing

(4%)

Other Fabricated Metal Product Manufacturing

(8%)

Animal Slaughtering and Processing

(2%)

came in at 4.8 percent that month. Among Midwest states, only two fared worse than the September national average of 5 percent: Illinois at 5.5 percent and Missouri at 5.2 percent.

Automotiveâ&#x20AC;&#x2122;s U p s a n d Downs Truth is, thereâ&#x20AC;&#x2122;s a whole lot of up and down in the world of Midwest manufacturing. Consider one November 2016 announcement from General Motors, indicating that more than 2,000 third-shift workers at a pair of assembly plants in Michigan and Ohio would be laid off indefinitely in January. The move comes as vehicle buyers are moving

AREA DEVELOPMENT | 2017 Annual Directory

Indiana PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

12%

15%

Motor Vehicle Body and Trailer Manufacturing

27%

Plastics Product Manufacturing

Iron and Steel Mills and Ferroalloy Manufacturing

(3%)

Medical Equipment and Supplies Manufacturing

(9%)

Pharmaceutical and Medicine Manufacturing

12%

22%

Printing and Related Support Activities

Motor Vehicle Manufacturing

14%

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

Household and Institutional Furniture and Kitchen Cabinet Manufacturing

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

13%

Agriculture, Construction, and Mining Machinery Manufacturing

13%

(17%)

Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

(8%)

Other Wood Product Manufacturing

Plastics Product Manufacturing

Motor Vehicle Body and Trailer Manufacturing

17%

Grain and Oilseed Milling

Printing and Related Support Activities

(7%)

Other General Purpose Machinery Manufacturing

18%

Architectural and Structural Metals Manufacturing

Motor Vehicle Parts Manufacturing

Iowa PRINCIPAL MANUFACTURING INDUSTRIES Animal Slaughtering and Processing

AREA DEVELOPMENT

away from cars and toward trucks and SUVs. At the same time, the company said it would be investing nearly a billion dollars at component plants in Michigan, Ohio, and Indiana to gear up for different vehicles, though no new jobs would result. Even as GM is idling some workers, and auto industry observers wonder if production is starting to outstrip demand, there are still some bright spots in the Midwest’s auto capital, Michigan. For example, a major supplier of complex structural stampings and assemblies, Gestamp, is expanding multiple Michigan facilities and adding nearly 300 jobs. On the other hand, Fiat Chrysler supplier Faurecia North America is shutting down a pair of Detroit plants and laying off 348 people, reflecting the cancellation of two models it had been supplying (the Chrysler 2000 and the Dodge Dart). Meanwhile in Illinois, Fiat Chrysler Automobiles announced that its Belvidere Assembly Plant would take in a $350 million investment to move Jeep Cherokee production from Ohio. For Illinois, it’s a potential 2017 manufacturing gain of 300 jobs. That may sound like bad news for Ohio, but not necessarily — the Toledo plant that’s losing the Cherokee will pick up the Wrangler through a $700 million investment that promises to add 700 jobs there. Again, where the news gets murkier is in the supplier realm. Some companies that had supplied Belvidere in the past were ending 2016 with layoffs, because it

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

As the Midwest sorts through the highs and lows of manufacturing, it continues to push ahead in the technology sector.

was not yet clear if they would pick up contracts for Cherokee production. A mix of good news and bad news, yet again, but not a complete surprise as the auto industry that was red-hot in 2015 comes back down to earth. And then there was the up and down related to what has turned out to be the most talked-about manufacturing job shift announced in 2016: Carrier’s plans to shift more than a thousand Indiana jobs to Mexico. The bad news provided plenty of material for Donald Trump on the presidential campaign trail, but after he and vice president-elect Mike Pence won the election, the company agreed to save about 800 of the lost jobs. That development, in turn, brightened the spotlight on another Indianapolis-toMexico move, this one involving Wisconsin-based Rexnord Corp. Some 300 jobs were in limbo there, and though there was some suggestion that the incoming administration might target the deal for another intervention, it wasn’t clear if that story was going to have a happy ending.

Growth in Other S e c t o r s Though much of the manufacturing sector in the Midwest is fueled by transportation, that’s far from the only manufacturing game in town. Illinois, for example, celebrated $320 million plans by German pharmaceutical service provider Vetter to build a production and distribution facility in Des Plaines. That’s worth at least

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7:32 PM

Michigan PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

21%

19%

20%

Motor Vehicle Manufacturing

14%

(8%)

Metalworking Machinery Manufacturing

Plastics Product Manufacturing

21%

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

13%

Office Furniture (including Fixtures) Manufacturing

13%

Other General Purpose Machinery Manufacturing

17%

Coating, Engraving, Heat Treating, and Allied Activities

Printing and Related Support Activities

Medical Equipment and Supplies Manufacturing

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

15%

Printing and Related Support Activities

(4%)

Animal Slaughtering and Processing

Medical Equipment and Supplies Manufacturing

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

Plastics Product Manufacturing

10%

Other General Purpose Machinery Manufacturing

Semiconductor and Other Electronic Component Manufacturing

Other Wood Product Manufacturing

Other Miscellaneous Manufacturing

25%

Motor Vehicle Parts Manufacturing

Minnesota PRINCIPAL MANUFACTURING INDUSTRIES

300 jobs. CertainTeed Corp., a major manufacturer of building products, recently wrapped up a three-year, $100 million manufacturing and distribution center expansion in the Missouri community of Jonesburg. In Minnesota, contract medical device manufacturer Biomerics has plans to create 120 high-paying jobs in Brooklyn Park. And in Wisconsin, Catalent Pharma Solutions is expanding its operations in Madison, an addition of manufacturing, office, and lab space expected to create more than 100 new jobs. As the region sorts through the highs and lows of manufacturing, it continues to push ahead in such sectors as technology. Chicago, for example, moved onto the list of the nation’s top 10 technology cities, compiled by CBRE. Chicago was ninth in job growth, adding more than 10,000 tech jobs between 2013 and 2015. In Indianapolis, meanwhile, the state’s tallest building is slated to be renamed Salesforce Tower, in honor of the cloud software behemoth that is planning $40 million in investments and more than 800 new hires over the next five years or so. Downtown Kansas City, Missouri, will be the site of the Virgin Mobile USA headquarters. In the Milwaukee area, Remedy Analytics creates technology that helps self-insured employers cut their prescription benefit costs — it’s expanding and more than doubling its workforce. And in the Minnesota community of St. Cloud, Microbiologics Inc. is expanding its high-tech operation that supplies microorganisms and lab-testing products, creating 35 new jobs.

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Missouri The Midwest’s agricultural heritage sparks ongoing agribusiness and food processing activity. In Missouri, for example, a planned $54 million investment is slated to create 160 jobs at Moon Ridge Foods in Pleasant Hope. It’s a farm-to-plate pork processing operation focused on humane approaches and artisan food preparation. In Michigan, ZFS Ithaca recently announced a 74-job plant fueled by a $123 million investment. It’ll process soybeans, Michigan’s top agricultural export. About 100 Illinois jobs are tied to the new Richelieu Foods privatelabel manufacturing facility in Wheeling. Shelbyville, Indiana, successfully attracted the headquarters of Krone North America, an agricultural equip-

PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Animal Slaughtering and Processing

(3%)

Aerospace Product and Parts Manufacturing

11%

Plastics Product Manufacturing

Motor Vehicle Manufacturing

17%

167%

Printing and Related Support Activities

(10%)

Motor Vehicle Parts Manufacturing

11%

Ventilation, Heating, Air-Conditioning, and Commercial Refrigeration Equipment Manufacturing

(15%)

Architectural and Structural Metals Manufacturing

20%

Other Fabricated Metal Product Manufacturing

(26%)

Converted Paper Product Manufacturing

(6%)

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AREA DEVELOPMENT | 2017 Annual Directory

Thanks to a mix of location and strong transportation assets, plenty of goods traverse the Midwest. Ohio PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

11%

20%

Plastics Product Manufacturing

Other General Purpose Machinery Manufacturing

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

(2%)

Metalworking Machinery Manufacturing

Motor Vehicle Manufacturing

13%

Printing and Related Support Activities

(1%)

Converted Paper Product Manufacturing

21%

Other Fabricated Metal Product Manufacturing

(16%)

Aerospace Product and Parts Manufacturing

10%

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Printing and Related Support Activities

Plastics Product Manufacturing

Other Fabricated Metal Product Manufacturing

Dairy Product Manufacturing

13%

Converted Paper Product Manufacturing

Animal Slaughtering and Processing

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

(6%)

Other General Purpose Machinery Manufacturing

Electrical Equipment Manufacturing

Foundries

(10%)

Motor Vehicle Parts Manufacturing

Wisconsin PRINCIPAL MANUFACTURING INDUSTRIES

AREA DEVELOPMENT

ment company that has been based in Tennessee. The development will also include a new distribution center, showroom, and training facility, and will create about 100 jobs.

Transportation A s s e t s Plenty of goods traverse the Midwest, thanks to a mix of location and strong transportation assets. Chicago, Minneapolis, and Kansas City are major freight centers. In December 2016, CVS Pharmacy announced it would build a 762,000-square-foot distribution center at the Skyport Industrial Park in Kansas City, Mo., creating 360 jobs and supporting the fulfillment needs of the retail chain’s 370 Midwest stores. And the Iowa community of Cedar Rapids hopes to tap into the Midwest’s transportation connections with a planned new intermodal transportation facility. A $26 million federal grant for the project was announced in mid2016. Indiana, meanwhile, has long benefited from the logistics operations attracted by strong highway and air connections in the central part of the state, water to the south, and both rail and water to the north. Such factors helped persuade Knight Transportation to open a regional operations service center in Plainfield, with the promise of more than 400 jobs within five years. — Steve Stackhouse-Kaelble

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

Kansas

Plains INDUSTRIAL DIVERSIFICATION CREATES STABLE, SUSTAINABLE ECONOMIES

Nebraska North Dakota South Dakota

THE PLAINS STATES HAVE ECONOMIES founded on their natural resources. Agriculture, mining, and energy are major components of their economies, and slowdowns in these industries are having a negative impact on the overall economic performance of these states. For example, low oil and gas prices over the past several years have hurt this industry, especially in North Dakota. The downturn has reduced energy production, exploration, shipping, and related construction. Idle rigs and worker layoffs have impacted energy-based communities. Less oil and gas equipment is being manufactured and sold. Agriculture, too, is suffering from low crop and livestock prices, which drive down farmer incomes. With less money to spend, farmers are not buying as much farm equipment, which reduces orders for equipment manufacturers and suppliers. As a result of these large-scale influences, GDP growth is mostly negative or flat in these states. At the end of the first quarter of 2016, the only state with positive percent change in real GDP, according to the State Bureau South Dakota NorthDakota of Economic Analysis, was Kansas 5.0% 5.1% (2.0 percent). 4.4% 4.9% Even with the economic slowdown, it is encouraging to note that unem27.6% 31.4% ployment rates have stayed below the 23.1% 21.4% seasonally adjusted national rate of 5 13.0% 10.7% percent; as of September 2016, unem19.4% 18.6% ployment among these states ranged 7.5% 8.0% from 2.9 percent in South Dakota to 4.4 percent in Kansas.

Efforts to diversify their economies have helped the Plains States to weather the downturn in the oil and gas industry. 2016 Educational Attainment

Less Than 9th Grade 9th Grade to 12th Grade High School Diploma Some College Associateâ&#x20AC;&#x2122;s Degree Bachelorâ&#x20AC;&#x2122;s Degree Graduate Degree and Higher

Kansas

Nebraska

5.5% 5.3% 27.2% 23.5% 7.7% 19.9% 10.9%

5.9% 4.6% 27.8% 23.3% 9.5% 19.6% 9.3%

Plains STATE

Kansas Nebraska North Dakota South Dakota

POPULATION

TOTAL LABOR FORCE

2,923,350 1,908,897 769,916 867,191

1,480,330 1,006,611 427,064 452,736

JOBS

1,453,479 1,030,802 451,635 451,958

% CHANGE SINCE 2012

UNEMPLOYMENT (SEPTEMBER 2016)

3% 5% 3% 6%

4.4% 3.2% 3.0% 2.9%

AREA DEVELOPMENT | 2017 Annual Directory

Governments in the Plains States are supporting high-growth industries with incentives and new infrastructure. kansas Aerospace Vehicles and Defense Business Services Livestock Processing Oil and Gas Production and Transportation Production Technology and Heavy Machinery

nebraska

north dakota Oil and Gas Production and Transportation Local Logistical Services Food Processing and Manufacturing Coal Mining Local Financial Services

To p Industry Clusters

Livestock Processing Business Services Transportation and Logistics Agricultural Inputs and Services Production Technology and Heavy Machinery

south dakota Local Health Services Agricultural Inputs and Services Food Processing and Manufacturing Livestock Processing Production Technology and Heavy Machinery

* Based on job growth, earnings, GRP, regional competitiveness, and regional specialization

Kansas

PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Aerospace Product and Parts Manufacturing

20%

22%

(3%)

Animal Slaughtering and Processing

12%

Agriculture, Construction, and Mining Machinery Manufacturing

Printing and Related Support Activities

(11%)

Plastics Product Manufacturing

Architectural and Structural Metals Manufacturing

Other General Purpose Machinery Manufacturing

Animal Food Manufacturing

Other Food Manufacturing

(5%)

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

15%

AREA DEVELOPMENT

Beyond Natural Resources Fortunately, the Plains States have been diversifying their industries for decades to create more stable and sustainable economies. State governments have created pro-business climates, incentives, and new infrastructure to support high-growth industries. These include advanced manufacturing, pharma and biotech, alternative energy, financial services, and call centers. Overall, these efforts have had positive impacts for business investment in the Plains. For example, for the fifth consecutive year, North Dakota has earned the nation’s second-best ranking for business climate competitiveness, according to the 2015 edition of the Beacon Hill Institute’s (BHI) annual State Competitiveness report. In its 2016 “Rich States, Poor States” annual report, the American Legislative Exchange Council ranks states based on economic competitiveness, according to 15 policy variables, including regulatory policies and tax policies. North Dakota ranked third-best in the country, followed by South Dakota (11), Kansas (27), and Nebraska (33). North Dakota’s strong performance included high rankings for low property tax burden, low debt service, effective tax policy, and a low income tax burden. Although trailing behind, Nebraska and Kansas are starting to gain some traction. Nebraska recently surpassed the one million jobs threshold for the first time, an indication of a strengthening economy. And although Kansas has a 4.4 percent unemployment rate,

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

and is still waiting for the promised economic rewards from the deep tax cuts the legislature enacted in 2013, the state did post the best GDP growth of the four states in first quarter of 2016 — another good sign.

Moving F o r w a r d Economic growth in other sectors — for example, manufacturing — is keeping the Plains economy moving forward. Manufacturing is one of South Dakota’s largest industries, accounting for 10 percent of its workforce. Among the top manufacturing sectors are food products and machinery. A survey by the Governor’s Office of Economic Development indicates that South Dakota manufacturing companies planned to spend a combined $410 million on new or expanded facilities in 2015. One

Nebraska PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

27%

19%

Agriculture, Construction, and Mining Machinery Manufacturing

(15%)

Motor Vehicle Parts Manufacturing

Medical Equipment and Supplies Manufacturing

Architectural and Structural Metals Manufacturing

Printing and Related Support Activities

(9%)

Plastics Product Manufacturing

Basic Chemical Manufacturing

11%

Cement and Concrete Product Manufacturing

25%

Animal Food Manufacturing

14%

Animal Slaughtering and Processing

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AREA DEVELOPMENT | 2017 Annual Directory

North Dakota PRINCIPAL MANUFACTURING INDUSTRIES Agriculture, Construction, and Mining Machinery Manufacturing

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

17%

16%

(11%)

Other Wood Product Manufacturing

28%

Cement and Concrete Product Manufacturing

Bakeries and Tortilla Manufacturing

(4%)

Motor Vehicle Parts Manufacturing

(7%)

Sugar and Confectionery Product Manufacturing

Plastics Product Manufacturing

(15%)

Architectural and Structural Metals Manufacturing

(11%)

Household and Institutional Furniture and Kitchen Cabinet Manufacturing

50%

Fruit and Vegetable Preserving and Specialty Food Manufacturing

(14%)

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Animal Slaughtering and Processing

13%

12%

(2%)

Other Miscellaneous Manufacturing

(3%)

Agriculture, Construction, and Mining Machinery Manufacturing

Household and Institutional Furniture and Kitchen Cabinet Manufacturing

27%

Motor Vehicle Body and Trailer Manufacturing

14%

Medical Equipment and Supplies Manufacturing

14%

Other General Purpose Machinery Manufacturing

Plastics Product Manufacturing

16%

Semiconductor and Other Electronic Component Manufacturing

(4%)

Cement and Concrete Product Manufacturing

12%

South Dakota PRINCIPAL MANUFACTURING INDUSTRIES

AREA DEVELOPMENT

of these companies is AGT Foods, a Saskatchewan-based supplier of pulse crop food products, which recently opened a $30 million expansion of its food processing plant in Minot. Aerospace is another key manufacturing sector, especially in Wichita, Kansas, which produces more than one third of the world’s general aviation aircraft. Figeac-Aéro recently broke ground on a new North American headquarters in Wichita, and is also expanding its manufacturing facility there. The Kansas Department of Commerce and Textron Aviation have recently announced a workforce services training agreement that will support hundreds of millions of dollars of investment in new product development and production in Wichita. Financial services is another sector showing growth. In Lincoln, Nebraska, NorthStar Financial Services Group, a financial services holding company, recently opened its second Omaha office and plans to hire about 350 employees. Centrix Solutions, a software company that provides financial institutions with products that detect fraud and manage risk, also opened a new facility in Lincoln. The Plains has an outstanding transportation infrastructure, including Interstate 80, one of the nation’s busiest transportation routes, and several Class 1 rail systems. These assets are centrally located within the NAFTA trade corridor, making them attractive for distribution facilities. For example, in July 2016, Amazon.com announced plans for a new fulfillment center in Kansas City, Kansas, creating over 1,000 jobs. In general, most of the Plains States are cautiously optimistic about their transportation and logistics sectors, especially for trucking. However, warned economist Eric Thompson, director of the Bureau of Business Research at the University of Nebraska-Lincoln, increased shipping by truck could be significantly hindered by a shortage of qualified drivers. — Mark Crawford

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

Alabama Arkansas

South

Kentucky Louisiana Mississippi Tennessee

MANUFACTURING SUCCESS STORIES CONTINUE

Growth in manufacturing is driving the economies of the Southern States, while they grapple with the challenges of diversification. IF THERE’S AN EMERGING STAR for economic growth in the South these days, it’s probably Nashville, where the creative scene associated with its status as the nation’s country-music

capital, outsized growth in freelance work and other aspects of the “gig economy,” strong expansion in healthcare and other services, robust infrastructure of higher educational institutions, and even a significant local manufacturing base have combined to fuel a continuing boom. Case in point: Warner Music Group recently announced that it will expand in Nashville over the next two years, bringing 175 additional jobs as the company moves its finance team into town. The music industry supports 56,000 jobs in the Nashville area. The happy days should continue for Nashville as millennials provide the backbone of its growing prosperity; in fact, the city was named No. 10 on the latest Forbes list of the most popular cities for Generation Y (those born in the 1980s and 90s). “It’s a climate that’s conducive for them, and you look at the low taxes and the fact that jobs are plentiful there,” says Dean Uminski, partner with Crowe Horwath in Chicago and a

2016 Educational Attainment

Less Than 9th Grade 9th Grade to 12th Grade High School Diploma Some College Associate’s Degree Bachelor’s Degree Graduate Degree and Higher

STATE

Alabama Arkansas Kentucky Louisiana Mississippi Tennessee

Alabama

Arkansas

Kentucky

Louisiana

Mississippi

6.6% 10.0% 31.1% 21.4% 7.6% 14.5% 8.7%

7.5% 8.9% 34.5% 22.1% 6.3% 13.5% 7.3%

8.3% 8.7% 33.5% 20.1% 7.3% 13.0% 9.1%

7.2% 10.3% 33.7% 21.0% 5.3% 14.8% 7.6%

7.5% 11.2% 30.0% 22.3% 8.4% 12.9% 7.6%

POPULATION

TOTAL LABOR FORCE

4,876,334 2,991,264 4,443,539 4,698,920 2,998,913 6,648,112

2,188,762 1,355,996 1,997,896 2,126,215 1,280,766 3,174,976

JOBS

2,010,176 1,261,590 1,979,209 2,020,508 1,193,196 3,003,642

Tennessee

7.1% 8.4% 33.0% 20.5% 6.5% 15.7% 8.8%

% CHANGE SINCE 2012

UNEMPLOYMENT (SEPTEMBER 2016)

4% 5% 5% 2% 3% 9%

5.4% 4.0% 5.0% 6.4% 6.0% 4.6%

AREA DEVELOPMENT | 2017 Annual Directory

alabama Automotive Livestock Processing Plastics Upstream Metal Manufacturing Aerospace Vehicles and Defense

arkansas Business Services Electric Power Generation and Transmission Livestock Processing Upstream Chemical Products Distribution and Electronic Commerce

To p Industry Clusters

kentucky

mississippi

Trailers, Motor Homes, and Appliances (Manufacturing) Insurance Services Automotive Local Commercial Services Food Processing and Manufacturing

Water Transportation Furniture Automotive Oil and Gas Production and Transportation Lighting and Electrical Equipment

louisiana Upstream Chemical Products Oil and Gas Production and Transportation Water Transportation Construction Products and Services Video Production and Distribution

tennessee Automotive Trailers, Motor Homes, and Appliances (Manufacturing) Textile Manufacturing Music Publishers and Recording Business Services

* Based on job growth, earnings, GRP, regional competitiveness, and regional specialization

Alabama

aerospace; a rising tide of employment in services and other professional pursuits; an expanding presence in Share of 2012-2016 Share of PRINCIPAL MANUFACTURING Total the digital economy; more state-level % Job Mfg. Total Mfg. GRP Change Jobs policies to encourage business investINDUSTRIES ment; and effective exploitation of the region’s inherent advantages of a Motor Vehicle Parts Manufacturing 10% 7% 45% temperate climate and geographic attriAnimal Slaughtering and Processing 9% 3% (3%) butes. What’s more, with the exception Motor Vehicle Manufacturing 5% 12% 26% of Kentucky, all of the region’s states Aerospace Product and Parts are right-to-work. Manufacturing 5% 6% 1% Still, major states in the region have been hit hard over the last couple of Plastics Product Manufacturing 5% 3% 27% years by tectonic shifts in America’s Architectural and Structural Metals energy economy. The collapse in oil and Manufacturing 4% 2% 4% gas prices has knocked Louisiana’s cruPulp, Paper, and Paperboard Mills 3% 5% (15%) cial petrochemical business for a loop, Other Wood Product Manufacturing 3% 1% 23% and the continuing decline in demand Sawmills and Wood Preservation 2% 1% 21% for Appalachian coal has become a huge drag on Kentucky’s progress. The Machine Shops; Turned Product; Southern States overall still face some and Screw, Nut, and Bolt Manufacturing 2% 2% 2% stiff obstacles in the years ahead as they continue to fill out their portfolios as complete economic engines. “This area will face continued challenges in manufacturlocation consultant. “They end up describing it as ‘cosmopoliing and also economic diversity as time moves forward,” says tan,’ which is very appealing to them.” Larry Gigerich, managing director at Ginovus, an IndianapolisFor the rest of Tennessee and the other states of the South, based economic development consultancy. “Not only will the key for future economic growth is whether they colleclower-skilled manufacturing jobs be at risk, but a large comtively can replicate what’s happening in Nashville as well as in ponent of this region doesn’t have economic strength outside some other parts of the region and maintain or expand what a few sectors. The lack of economic diversity creates more ups has been a healthy share of the national increase in corporate and downs as the economy shifts,” he notes. “So this region locations and jobs. will be required to increase the skill levels of their residents, The region’s inherent advantages include a vast and stillbuild economic development capacity in rural areas, and levergrowing manufacturing base that rivals that of the Midwest age assets to help diversify their economies.” in important and basic industries, including automotive and

AREA DEVELOPMENT

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

In fact, says King White, president of Site Selection Group in Dallas, while the South is “a desirable region” for call centers and data centers and similar types of facilities, “it is important to carefully evaluate site opportunities there at the county level. Labor conditions vary depending on what type of labor a company is needing.” For instance, White explains, Alabama, Mississippi, and Louisiana continue to win projects, but mostly manufacturing-related.

Manufacturing Success S t o r i e s Manufacturing growth in those states and others in the region continues to rank as one of its biggest and most important success stories. Alabama, for instance, keeps adding to its status as America’s aerospace-manufacturing headquarters. American Airlines took delivery in May of its first Alabama-made A321 passenger jet from the Airbus factory in Mobile, a $600 million plant that now has around 350 employees and is expected to support 1,000 jobs once production reaches full tilt: delivery of four aircraft a month from the plant by the end of 2017. Meanwhile, Boeing continues to deliver huge economic benefits to Alabama from its 2,750 employees in the state, with an overall economic impact on the economy of $2.3 billion a year, according to a new analysis by the University of Alabama. And the University of Alabama and Auburn University are partnering with NASA on future technologies that could aid space exploration, at the agency’s Marshall Space Flight Center in Huntsville. Other states are getting in on the aerospace action as well. In Kentucky, for example, Meggitt Aircraft Braking Systems dedicated a $9 million expansion of its manufacturing and distribution campus in Danville in October, providing 66 additional jobs to the existing employment base of 185 people. And Raytheon plans to build its new proposed jet trainer for the U.S. Air Force in Meridian, Miss., where the company already builds array radars. Tennessee’s huge network of technology-intensive auto plants — including major assembly complexes for Nissan and Volkswagen — helps ensure the steady creation of desirable jobs. In fact, Tennessee topped all states since 2013 with 4.6 percent annual growth in high-skilled jobs, according to a recent report by the Brookings Institution. Another major boon for the state has been the investment of more than $2 billion over the last six years by food and beverage companies, creating more than 6,500 jobs. And Leclerc Foods recently announced that it would add to the total by establishing its U.S. headquarters in Kingsport, as well as additional capacity to manufacture its cookie and other snack products. In Arkansas, Chinese manufacturers have begun creating a stream of new investments. Suzhou Tianyuan Garments agreed to create 400 jobs and invest $20 million in an operation in Little Rock; the company makes casual and sports wear for Adidas, Reebok, and Armani. Also, Sun Paper plans to invest $1 billion in a new bio-products paper plant in Arkadelphia, creating 2,150 jobs. Across verticals, manufacturing locations and expansions

AREA DEVELOPMENT | 2017 Annual Directory AREA0644.indd 1

21/10/16 4:24 PM

Arkansas PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

19%

Plastics Product Manufacturing

16%

Other Fabricated Metal Product Manufacturing

Converted Paper Product Manufacturing

(4%)

Motor Vehicle Parts Manufacturing

Sawmills and Wood Preservation

Rubber Product Manufacturing

Fruit and Vegetable Preserving and Specialty Food Manufacturing

(7%)

Printing and Related Support Activities

(11%)

Architectural and Structural Metals Manufacturing

12%

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

15%

26%

Motor Vehicle Manufacturing

19%

50%

Plastics Product Manufacturing

12%

Animal Slaughtering and Processing

Printing and Related Support Activities

(9%)

Other General Purpose Machinery Manufacturing

19%

Animal Slaughtering and Processing

Kentucky PRINCIPAL MANUFACTURING INDUSTRIES Motor Vehicle Parts Manufacturing

Converted Paper Product Manufacturing

(11%)

Other Wood Product Manufacturing

Household Appliance Manufacturing

24%

Bakeries and Tortilla Manufacturing

AREA DEVELOPMENT

keep popping up across the region. Georgia-Pacific completed a $40 million expansion at its lumber operations in Gurdon, Ark., adding 60 percent to capacity. And Nucor announced a $230 million investment and the addition of 100 jobs at its cold mill steel complex in Arkansas to help supply the growing appetite by U.S. auto manufacturers for high-strength and high-strength/lowalloy steels. MACA Plastics, which supplies components to the medical and auto industries, plans to locate a 156-job plant in Maysville, Ky., with an $8 million investment. The company is based in Winchester, Ohio. And auto supplier Yokohama Industries America plans to invest $5 million and hire 134 employees for new equipment at its plant in Versailles, Ky. Germanyâ&#x20AC;&#x2122;s Feuer Powertrain opened its first U.S. factory, in Jackson, Miss., as well as its U.S. headquarters, with 350 jobs and a 156,000-square-foot manufacturing facility. Continental Tire broke ground on a new manufacturing plant near Clinton, representing a $1.45 billion investment that is expected to create 2,500 jobs. And in Alabama, new projects include a $200 million planned outlay by German chemical manufacturer BASF to expand its plastics-additives business in McIntosh, as well as the opening of a new Polaris Industries factory in Huntsville to produce Ranger off-road vehicles and Slingshot three-wheeled roadsters beginning in 2017 â&#x20AC;&#x201D; a $140 million investment that now has around 500 workers and is expected to reach 1,700 employees or more.

Call Centers, D i g i t a l T e c h The South is also attractive for call centers because of reasonable labor

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

Louisiana PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

10%

17%

13%

Petroleum and Coal Products Manufacturing

42%

Agriculture, Construction, and Mining Machinery Manufacturing

(20%)

Ship and Boat Building

(36%)

Other Fabricated Metal Product Manufacturing

30%

Resin, Synthetic Rubber, and Artificial Synthetic Fibers and Filaments Manufacturing

Architectural and Structural Metals Manufacturing

(16%)

Animal Slaughtering and Processing

(6%)

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

(14%)

Pulp, Paper, and Paperboard Mills

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Household and Institutional Furniture and Kitchen Cabinet Manufacturing

12%

Animal Slaughtering and Processing

12%

Ship and Boat Building

Motor Vehicle Manufacturing

14%

31%

Motor Vehicle Parts Manufacturing

38%

Electrical Equipment Manufacturing

Plastics Product Manufacturing

16%

Sawmills and Wood Preservation

(1%)

Architectural and Structural Metals Manufacturing

Other General Purpose Machinery Manufacturing

Basic Chemical Manufacturing

Mississippi PRINCIPAL MANUFACTURING INDUSTRIES

AREA DEVELOPMENT

rates and the availability of AmericanEnglish speakers. In Owensboro, Ky., for instance, Alorica announced that it would establish an 830-job customerengagement center. Digital-tech locations obviously are among the most coveted. And fortunately, the nature of digital technology is to allow programming, cloud-building, running server farms, and many other functions to occur anywhere in the country or the world, not just in legacy enclaves such as Silicon Valley and Austin, Texas. So the South is striving to get its share of that work, most of it clustered in a handful of cities with high populations of tech-savvy millennials. The benefits of information-technology development, of course, include the fact that it spans across many industry sectors, and the jobs typically pay aboveaverage wages. Louisiana has made a huge play for digital-era IT and electronic-media jobs for the last several years. For instance, General Informatics’ recently broke ground on a $20 million investment in a technology park in Baton Rouge. And, in Alabama, a program called the Innovate Birmingham Regional Workforce Partnership is deploying $6 million in federal funding to train young adults for 925 high-paying, technology-focused jobs. Also, the Mobile Chamber of Commerce has launched a new downtown incubator for tech outfits and a business-pitch competition.

Pro-business I n i t i a t i v e s Alabama recently created a new system called Alabama Works that will seamlessly link employers looking for skilled workers with residents seeking job training. Also, the Alabama Renewal Act, which came into law in April, has created a “port credit” meant to stimulate cargo traffic at Alabama facilities such as the Port of Mobile, and at airports that handle cargo. The 4,000-acre Mobile seaport is one of the

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

nation’s busiest. And in a move that is clear to please CEOs who have produced a chorus of Share of 2012-2016 Share of complaints about over-regulation at the PRINCIPAL MANUFACTURING Total % Job Mfg. Total Mfg. federal and state levels, Kentucky Gov. GRP Change Jobs INDUSTRIES Matt Bevin announced the first of what he expects to be many moves to cut Motor Vehicle Parts Manufacturing 13% 9% 40% administrative regulations since the launch Motor Vehicle Manufacturing 4% 6% 51% of his Red Tape Reduction initiative. More than 500 of the state’s 4,700 such regulaPlastics Product Manufacturing 4% 3% 22% tions had been reviewed as of October, Animal Slaughtering and Processing 3% 2% 1% resulting in the repeal of 30 of them and Household Appliance Manufacturing 3% 2% 35% the targeting of another 129 for repeal. Resin, Synthetic Rubber, and Artificial Another 52 regs were amended and 271 Synthetic Fibers and Filaments Manufacturing 3% 5% 0% targeted for amendment. Other Fabricated Metal Product The reduction in state tax revenues Manufacturing 3% 3% (9%) from lower natural-gas prices has crimped spending on financial incenPrinting and Related Support Activities 3% 2% (3%) tives by the state of Louisiana under 2% 1% Converted Paper Product Manufacturing 3% Gov. Edwards, Gigerich says, after Gov. Medical Equipment and Supplies Jindal had lowered tax rates and amped Manufacturing 3% 4% 6% up economic development outlays. But Louisiana remains at the front of the pack nationwide with its workforcehas trained 24,000 people at more than 150 employers since training program. LED FastStart uses a nimble, collabora2008 and has heavily influenced companies’ decisions to site tive approach that stretches from high-school classrooms or expand in the state. to community colleges to research universities to employers — Dale Buss themselves to recruit, screen, and train workers. The program

Te n n e s s e e

PORT AT CATES LANDING

Tiptonville CN RAILROAD

Dyersburg FOREIGN TRADE ZONE WEST TN MEGASITE

Jackson

Memphis PORT OF MEMPHIS

AREA0647.indd 1

MS 30/11/16 1:39 AM AREA DEVELOPMENT | 2017 Annual Directory 67

Opelika, Alabama

Who Would Who Would Have Thought... Opelika, Alabama

Have Thought...

• 100% Fiber Optic Network Helps • Opelika’s 100% Fiber Optic Network Business Work Faster Helps Business Work Faster • $995.9 million in Capital Investment since 2005 • •GIG Symmetric Internet 2,471 Jobs Created sinceSpeeds 2005 Powered By Opelika Power Services • 2200-acre Northeast Opelika Industrial Park • Over $1 Billion In Capital Investment Since 2005 more:Since 2005 • 3,095Find Jobsout Created Lori Huguley, CEcD, Director • 2200-Acre Northeast Opelika Industrial Park Opelika Economic Development lhuguley@opelika-al.gov Find out more: 204 Seventh Street • Opelika, 36801 LoriSouth Huguley, CEcD,Alabama Director opelikaeconomicdevelopment.org Opelika Economic Development (334) 705-5115 lhuguley@opelika-al.gov

204 Seventh Street South • Opelika, Alabama 36801 opelikaeconomicdevelopment.org • (334) 705-5115

Florida

South Atlantic

Georgia North Carolina South Carolina Virginia West Virginia

RANKING WELL FOR BUSINESS INVESTMENT

With its well-established infrastructure, leading workforcedevelopment programs, and rightto-work states, the South Atlantic region continues to attract advanced technology companies.

THE VOLVO CARS PLANT UNDER CONSTRUCTION IN BERKELEY COUNTY, S.C., underscores the fact that the South Atlantic region continues to expand its powerhouse manufacturing platform, in addition to its strengths in technology, services, and agriculture. Owned by China’s Zhejiang Geely Holdings since 2010, Volvo is expanding its manufacturing base to include a $500 million U.S. plant where it plans to build about 100,000 vehicles a year, providing about 4,000 jobs. And importantly for South Carolina and the rest of the region, the Volvo brand and products are on the rise again in the American market after the company’s sale by Ford to Geely and the Great Recession of 2008 to 2010 disrupted what had been a fairly significant niche in the United States. “We have been in the U.S. for 60 years; we wanted to show a commitment that we’re going to stay here for

2016 Educational Attainment

Less Than 9th Grade 9th Grade to 12th Grade High School Diploma Some College Associate’s Degree Bachelor’s Degree Graduate Degree and Higher

STATE Florida Georgia North Carolina South Carolina Virginia West Virginia

Florida

Georgia

North Carolina

6.6% 7.4% 29.6% 20.4% 9.3% 16.9% 9.8%

7.0% 8.2% 28.2% 20.7% 7.2% 18.1% 10.6%

6.8% 7.9% 26.9% 21.4% 8.7% 18.4% 9.9%

POPULATION LABOR FORCE

TOTAL

20,519,101 10,312,350 10,138,691 4,943,564 8,459,161 1,844,569

9,867,408 4,930,692 4,855,070 2,297,294 4,219,409 794,373

South Carolina

6.2% 8.9% 30.0% 20.5% 8.7% 16.3% 9.3%

JOBS 8,598,282 4,511,996 4,521,526 2,119,076 4,082,622 729,494

Virginia

6.1% 6.5% 24.8% 19.6% 7.1% 20.8% 15.2%

West Virginia

6.6% 9.2% 40.9% 18.0% 6.3% 11.7% 7.3%

% CHANGE SINCE 2012

UNEMPLOYMENT (SEPTEMBER 2016)

13% 10% 8% 10% 5% -2%

4.7% 5.1% 4.7% 4.9% 4.0% 5.8%

AREA DEVELOPMENT | 2017 Annual Directory

The South Atlantic States are right-to-work and provide a labor environment that remains largely nonunion.

florida Local Hospitality Establishments Hospitality and Tourism Water Transportation Insurance Services Business Services

georgia

To p Industry Clusters

Local Utilities Aerospace Vehicles and Defense Textile Manufacturing Business Services Video Production and Distribution

north carolina

virginia

Biopharmaceuticals Tobacco Information Technology and Analytical Instruments Textile Manufacturing Business Services

Federal Government Services Water Transportation Financial Services Business Services Insurance Services

south carolina Vulcanized and Fired Materials Aerospace Vehicles and Defense Automotive Production Technology and Heavy Machinery Textile Manufacturing

west virginia Coal Mining Oil and Gas Production and Transportation Plastics Upstream Metal Manufacturing Biopharmaceuticals

* Based on job growth, earnings, GRP, regional competitiveness, and regional specialization

Florida PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Medical Equipment and Supplies Manufacturing

12%

Aerospace Product and Parts Manufacturing

Printing and Related Support Activities

Architectural and Structural Metals Manufacturing

37%

Semiconductor and Other Electronic Component Manufacturing

Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

Cement and Concrete Product Manufacturing

37%

Ship and Boat Building

33%

Other Miscellaneous Manufacturing

22%

Plastics Product Manufacturing

13%

AREA DEVELOPMENT

another 60 years,” Lex Kerssemakers, senior vice president of Volvo Americas, told Area Development recently. “And that’s normally the commitment that you make with a factory, about 60 years.”

Ranking Well The South Atlantic States rank well as a region for business investment against any other region of the country. Georgia, for instance, ranked as the No. 1 state for the third year in a row in Area Development’s 2016 Top States for Doing Business survey. South Carolina was No. 2, Florida was No. 7 and North Carolina was No. 9. “Companies look at wages, capital

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

investment, utilities, transportation and tax costs, and based on the projects we’re seeing, we find the South Atlantic to be competitive in most of those areas,” says Dean Uminski, partner in Crowe Horwath, a Chicago-based accounting, consulting, and technology firm. Scott Kupperman, founder of Kupperman Location Solutions in Lake Forest, Ill., adds, “The entire region is very viable; it’s a great place to work and look for project opportunities. Companies see other companies in their industry, or peers in terms of economic history, doing well in this part of the country and they believe that it signals good things for them.” Kupperman cites the continued demographic evolution of the area over the last couple of decades as a growing strength. “Most places in the region have population growth, and cities that have evolved in many ways from historically being kind of more rural and sleepy and economically depressed,” he says. “Companies recognize that the population in that whole region is growing and that people will continue to move there whether to relocate or take new jobs or retire. In general, companies have an easy time seeing that they ought to be there, to be making something, to be providing a service. And the barriers to entry for doing that are fairly small.” Land remains fairly abundant in the region, and yet commercial infrastructure is developed enough throughout that “it usually isn’t too difficult to find a site that has some infrastructure in place,” according to Kupperman. States in the region also provide a labor environment that remains largely nonunion, with the six South Atlantic States being right-to-work. This remains crucial for many companies eyeing the South Atlantic — so is a

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AREA DEVELOPMENT | 2017 Annual Directory

The region demonstrates “a good foundational performance” in info tech and other advanced pursuits. Georgia PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Animal Slaughtering and Processing

Textile Furnishings Mills

Aerospace Product and Parts Manufacturing

Plastics Product Manufacturing

10%

Motor Vehicle Parts Manufacturing

37%

Printing and Related Support Activities

(4%)

Architectural and Structural Metals Manufacturing

25%

Bakeries and Tortilla Manufacturing

11%

Converted Paper Product Manufacturing

(1%)

Other Food Manufacturing

11%

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Animal Slaughtering and Processing

Household and Institutional Furniture and Kitchen Cabinet Manufacturing

17%

Plastics Product Manufacturing

18%

Pharmaceutical and Medicine Manufacturing

15%

Motor Vehicle Parts Manufacturing

20%

Fabric Mills

(4%)

Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

15%

Printing and Related Support Activities

Architectural and Structural Metals Manufacturing

Converted Paper Product Manufacturing

(9%)

North Carolina PRINCIPAL MANUFACTURING INDUSTRIES

AREA DEVELOPMENT

regulatory environment that Kupperman calls “not too restrictive.” Governments in the region are doing a better job of working with companies. Georgia and North Carolina are among national leaders in workforce-development programs. North Carolina is streamlining its tax structure and improving infrastructure; Florida is tinkering with improvements to its Enterprise Florida financial-incentive program; and Virginia has improved its incentive programs in the last few years, according to Larry Gigerich of Ginovus, a site selection consulting firm based in Indianapolis. Of course, there have been some challenges. North Carolina badly stubbed its toe in economic development terms after a new law known as HB2 required transgender people to use public restrooms that correspond with the sex on their birth certificate, not with their gender self-identification. It also limited other anti-discrimination protections for LGBT people. The state lost commitments totaling thousands of future jobs from company after company that responded to the new law by pulling their expansion or siting plans from North Carolina, including CoStar Group, PayPal, and Deutsche Bank. The region also remains vulnerable to the loss of lower-skilled manufacturing jobs and small-profit-margin products as it has already in textiles, tobacco, and consumer products, Gigerich says. “The area also is going to be required to identify ways to develop vacant industrial properties, increase the skill level of the workforce, and continue to build economic development

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

South Carolina PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

35%

Motor Vehicle Parts Manufacturing

capacity in rural areas,â&#x20AC;? he believes.

Advanced Technology Hotbed Nonetheless, when it comes to information technology and other advanced pursuits, the region demonstrates â&#x20AC;&#x153;a good foundational performance,â&#x20AC;? says Scott Redabaugh, a managing director in the JLL Business Consulting group. Northern Virginiaâ&#x20AC;&#x2122;s appeal to defense and cybersecurity companies continues to grow because of its inclusion in the D.C. region, he says. Applied Predictive Technologies recently announced it would locate its headquarters operation in Virginiaâ&#x20AC;&#x2122;s Arlington County, in the northern part of the state. At stake are 368 new jobs that will be created at the cloudbased-analytics software company. The rest of the state also is a player in technology-related jobs. For example, Microsoft Corp. plans to invest $252 million to expand its data center site in Mecklenburg County, which hugs Virginiaâ&#x20AC;&#x2122;s southern border. It will use the increased capacity to serve its growing customer base, adding 44 jobs in the process. Since its original $499 million investment in Mecklenburg County in 2010, Microsoft has continued to invest at the site to the total tune of nearly $2 billion and more than 250 jobs. Biotech and life sciences remain on a growth arc in the South Atlantic region as well. Florida, for example, is home to the nationâ&#x20AC;&#x2122;s No. 2 medicaldevice manufacturing industry, the third-largest pharmaceutical-manufacturing industry, and the No. 7

Other Fabricated Metal Product Manufacturing

27%

Animal Slaughtering and Processing

(6%)

Rubber Product Manufacturing

24%

Plastics Product Manufacturing

(3%)

Fabric Mills

(7%)

Converted Paper Product Manufacturing

(7%)

Aerospace Product and Parts Manufacturing

35%

Resin, Synthetic Rubber, and Artificial Synthetic Fibers and Filaments Manufacturing

15%

Motor Vehicle Manufacturing

29%

Access

the Southeast Through Northwest Georgia Within the Chattanooga MSA and less than two and a half hours from the three major Southern cities of Atlanta, Nashville and Knoxville, 1RUWKZHVW *HRUJLD RÎ? HUV HDV\ DFFHVV WR UDLO V\VWHPV DQG FRPPHUFLDO

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AREA DEVELOPMENT | 2017 Annual Directory

CTD Holdings. In Tampa, Johnson & Johnson recently opened a $23 million North American shared-services headquarters, contemplating the addition of as many as 250 more professionals over the next three years, adding to the more than 250 employees who already work in the 88,5000-squarefoot facility. A company executive praised Tampa as “a great source of managerial-level talent” because of the presence of other shared-services providers in the metro area. Companies are finding sites across the South Atlantic region where the talent they need is increasingly availShare of 2012-2016 able. Midtown Atlanta, for example, Total Mfg. % Job soon will add about 1,800 jobs as GRP Change Anthem establishes an IT services hub there, with an investment of 8% (6%) more than $20 million over the next 2% (1%) six years. Anthem cited Atlanta’s 4% 15% evolution into a hotbed of health-IT activities. 2% (6%) Meanwhile, Frontier Secure, a divi1% 18% sion of Frontier Communications, will locate a customer-care center in Wise 2% (2%) County, Va., where up to 500 people will provide customer and techni1% (3%) cal support. And Dollar Tree recently 4% 37% announced it would develop its new $110 million corporate headquarters in 2% (6%) Chesapeake, Va., replacing the existing 2% 2% one in Hampton Roads, Va., retaining 825 existing jobs and creating 600 jobs over the next six years.

biotech R&D industry, in total employing more than 27,000 professionals. CTD Holdings, a pharmaceutical biotech company, recently said it would establish its corporate headquarters in Jupiter, Fla., creating 51 jobs. The announcement is partly the result of an outreach of the Business Development Board of Palm Beach to create a Life Science Advisory Council that will proactively attract more businesses like

Virginia PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Ship and Boat Building

11%

Animal Slaughtering and Processing

Plastics Product Manufacturing

Printing and Related Support Activities

Other Wood Product Manufacturing

Architectural and Structural Metals Manufacturing

Household and Institutional Furniture and Kitchen Cabinet Manufacturing

Beverage Manufacturing

Electrical Equipment Manufacturing

Motor Vehicle Parts Manufacturing

We s t Vi rg i n i a PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Pharmaceutical and Medicine Manufacturing

14%

17%

Plastics Product Manufacturing

Resin, Synthetic Rubber, and Artificial Synthetic Fibers and Filaments Manufacturing

14%

Motor Vehicle Parts Manufacturing

34%

Basic Chemical Manufacturing

13%

(14%)

Sawmills and Wood Preservation

12%

Animal Slaughtering and Processing

(2%)

Other Wood Product Manufacturing

14%

Aerospace Product and Parts Manufacturing

(14%)

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

(24%)

AREA DEVELOPMENT

Engineering and Manufacturing Strengths Engineering and manufacturing continue to be vital pursuits for the region, with long-established magnets such as major Boeing and BMW plants in South Carolina. Also in South Carolina, Ortec, a leading biomaterial and polymer technology company, has decided to invest $20 million and create 60 jobs in Anderson County in an expansion of its existing operations there. Advanced Ceramic Coatings — a 50-50 joint venture between GE Aviation and Turbocoating SPA of Parma, Italy — has created 50 new jobs in Spartanburg County with a $15 million investment in a 62,500-square-foot expansion. And Honda announced an expansion of the Florence County

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“When combined with the strong transportation connecmanufacturing facility where it makes all-terrain and tions and talented labor pool that Atlanta provides, UPS is side-by-side vehicles, planning to invest $45 million to building flexibility to meet the growing needs of our customadd two new product lines that will be put together in a ers and our business in Georgia, and around the world,” 115,000-square-foot addition. It’s expected to add 250 says David Abney, UPS chairman and CEO. jobs over the next few years. — Dale Buss The region has a pronounced specialty in aerospace manufacturing and engineering as well. For example, Bombardier said it plans to expand its aircraft service center in Harrison County, W. Va., creating as many as 300 new jobs in a state that otherwise has been struggling because of the decline of the coal industry. Meanwhile, in Pensacola, Fla., VT Mobile Aerospace Engineering plans to build a 173,000-squarefoot facility that will create 400 maintenance and engineering jobs at the local airport. More broadly, Florida recently was recognized by PwC as the No. 2 state in the country for aerospace manufacturing attractiveness, partially given the history of the “Space Coast” on the Atlantic Ocean that is home to Cape Canaveral. In fact, Florida is among those states that continue intense development of advanced and high-tech manufacturing in general. With that in mind, the state has created • Located within 650 miles of more the International Consortium for than half the U.S. population Advanced Manufacturing Research Center, which serves as a magnet • Ranked #4 in the U.S. for cost to attract and grow next-generation effective data centers by the advanced manufacturing, building Boyd Company bridges between academic researchers and industrial partners develop• 240 acre urban-based ing technology and a highly skilled research park workforce. Distribution is another robust • Regional workforce of arena for growth in this region, over 800,000 especially as the population to the south and west continues to grow • Cost of living well below in the continuing migration to the the national average nation’s Sun Belt. UPS has been a longtime corpowww.wsbusinessinc.com (336) 723-8955 rate stalwart in Atlanta. And as its business has grown along with demand for e-commerce deliveries, the company has decided to invest more than $400 million to establish a regional sorting and distribution hub in Atlanta — also UPS’s headquarters city — by the end of 2017.

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AREA DEVELOPMENT | 2017 Annual Directory

Arizona

Southwest MEETING ECONOMIC CHALLENGES HEAD ON

New Mexico Oklahoma Texas

THE SOUTHWEST IS GETTING HIT BY RELATIVELY NEW STRESSES ranging from low oil prices to higher labor costs, but the region remains poised to capitalize on any acceleration in overall U.S. economic growth because of its strong manufacturing and technology industries and continued endemic advantages over other regions of the country. Texas — with its legendary recent job growth, four major metro areas, and accelerating economic diversity — remains the bellwether in this region. And despite the continued adversity now posed by three consecutive years of lower oil and gas prices, the Lone Star State continues to account for about 9 percent of all U.S. economic output. “If Texas were a country,” Gov. Greg Abbott famously tweeted in 2016, “our economy would rank #10 … in the WORLD.” Clearly, Texas has been hit hard by an oil-price slump that slashed more than 91,000 jobs in its oil patch since 2014, nearly half the national job losses in that category. And so, after growing by 3.9 percent a year on average from 2010 through 2015, nearly twice the U.S. pace, the state’s output barely grew in early 2016. Oklahoma Texas Houston, America’s epicenter for oil and gas refining and petrochemical produc6.1% 11.8% tion, has suffered a jump in unemployment 7.9% 7.2% to nearly 6 percent from 4.9 percent in 31.9% 25.3% the fall of 2015, one of the largest jumps 23.3% 22.0% among big U.S. metro areas. And the 7.2% 6.6% vacancy rate in Houston skyscrapers rose to nearly 16 percent from 11 percent when 15.7% 17.9% oil prices began falling, according to NAI 7.8% 9.3% Partners, a commercial real estate firm. The biggest impact on economic devel-

Although the energy-industry recession has hit the Southwest region hard, economic diversification has drawn corporate locations and expansions in the high-tech, financial services, and data center sectors. 2016 Educational Attainment Arizona

Less Than 9th Grade 9th Grade to 12th Grade High School Diploma Some College Associate’s Degree Bachelor’s Degree Graduate Degree and Higher

8.4% 6.2% 25.0% 25.4% 8.2% 16.9% 9.9%

New Mexico

8.7% 8.1% 26.7% 23.3% 7.6% 14.8% 10.8%

STATE

POPULATION

TOTAL LABOR FORCE

JOBS

% CHANGE SINCE 2012

UNEMPLOYMENT (SEPTEMBER 2016)

Arizona New Mexico Oklahoma Texas

6,912,159 2,095,214 3,940,467 27,887,569

3,249,314 922,576 1,820,351 13,416,799

2,785,257 859,801 1,677,155 12,319,362

9% 3% 3% 10%

5.5% 6.7% 5.2% 4.8%

AREA DEVELOPMENT

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Plano by Toyota Motor USA, which has been in the process of relocating about 4,000 sales, marketing, administration, and other white-collar jobs from its former U.S. headquarters in

opment may have been crimping revenues in the deal-closing Texas Enterprise Fund. There’s also been a bit of a slowdown “because a lot of big deals have landed in the last couple of years,” says King White, CEO of Site Selection Group.

New Investments in Metros But while Houston bears the brunt of the energy-industry recession, Texas’s trio of other major metro areas — Dallas-Fort Worth, San Antonio, and Austin — are doing much better. Dallas, in particular, has been benefiting from its continually diversifying economy that draws lots of new corporate expansions and site locations attracted by its increasingly skilled workforce. The scaling up of local colleges and universities, such as the University of North Texas, has been a major boon to that effort. One major new chunk of inmigration will come with the decision by Charles Schwab Corp. to develop a new $100 million regional campus in the Fort Worth suburb of Westlake. Its investment will add to that in nearby

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Oil and Gas Production and Transportation Education and Knowledge Creation Federal Government Services Hospitality and Tourism Local Heath Services

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Arizona PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Aerospace Product and Parts Manufacturing

16%

18%

(6%)

Semiconductor and Other Electronic Component Manufacturing

13%

27%

Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

Architectural and Structural Metals Manufacturing

Medical Equipment and Supplies Manufacturing

Printing and Related Support Activities

Bakeries and Tortilla Manufacturing

Other Miscellaneous Manufacturing

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

Beverage Manufacturing

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Southern California. “They still talk about the ‘Toyota effect’ here in Plano, but to me it’s the (24%) ‘Plano effect’ on us,” CEO Jim Lentz, who’s already moved to the Dallas area, 20% told Area Development. “We looked at almost 100 different locations before picking here, and there is no better cor19% porate location in the country. We have 17% a great campus, and there are great op25% portunities for our team members to live 6% in all different types of settings. They’ve got it figured out here. And then on top 3% of that you layer on a business-friendly environment.” 19% Austin, too, is taking on a new dimension of dynamism, adding to the growth provided by its long-time status as a digital-technology hub because of the University of Texas campus. The capital city has become a sort of Silicon Valley of better-for-you food by leveraging its history as a center of youth and entrepreneurship along with purposeful nurturing by some early winners in the business — and its status as headquarters of Whole Foods Market. A handful of notable startups have taken root including Epic Provisions, which recently was acquired by General Mills; Rhythm Superfoods; Pure Spoon; Daily Greens; and Snap Kitchen. “The city harnesses and builds an entrepreneurial spirit and the food and beverage industry is one that has really started to shine in the last several years,” notes Dan Costello, CEO of one fast-growing Austin startup, Beanitos.

(14%)

Expanding Professional, Financial Services Oklahoma has suffered even more than Texas from the downturn in oil and gas prices, with plummeting employment in the energy sector, a hit to manufacturing of oil drilling and production equipment, and a decline in tax revenues that has created a severe state-budget squeeze. But just as it has over the past decades, Oklahoma is fighting through the oil-related crunch with efforts to diversify its economy — a strategy that is paying off even as the state continues to cope with oil-price pressures. One major focus has been expanding the professional services sector, ranging from IT to financial services to architectural firms. “What makes Oklahoma stand out in this sector is that we offer the whole package,” Brien Thorstenberg, senior vice president at the Tulsa Regional Chamber, told Oklahoma’s The

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New Mexico PRINCIPAL MANUFACTURING INDUSTRIES State of Success magazine. “We have the education, we have the talented workforce, and we have a good quality of life and close proximity to markets, and Oklahoma becomes very attractive to companies doing business.” A case in point was the announcement in March that Paycom, a humanresources management software firm, would add a $16 million expansion of its current Oklahoma City headquarters, creating 123 new jobs over the next five years. Stacey Pezold, Paycom’s chief operating officer, hailed the “diversity of talent” in Oklahoma City that is available to the city’s largest tech

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

12%

18%

(37%)

Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

(18%)

Other Miscellaneous Manufacturing

Dairy Product Manufacturing

(3%)

Fruit and Vegetable Preserving and Specialty Food Manufacturing

12%

Cement and Concrete Product Manufacturing

Other Food Manufacturing

Bakeries and Tortilla Manufacturing

(1%)

Aerospace Product and Parts Manufacturing

(17%)

Printing and Related Support Activities

Semiconductor and Other Electronic Component Manufacturing

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The Southwest is poised to capitalize on U.S. economic growth because of its strong manufacturing and tech sectors.

company. Other major recent expansion announcements for Oklahoma City included those by Progrexion, Southwest Airlines, and Dell.

Oklahoma PRINCIPAL MANUFACTURING INDUSTRIES

Data Center Development Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Agriculture, Construction, and Mining Machinery Manufacturing

(23%)

Other General Purpose Machinery Manufacturing

10%

(8%)

Animal Slaughtering and Processing

(3%)

Aerospace Product and Parts Manufacturing

17%

Rubber Product Manufacturing

Architectural and Structural Metals Manufacturing

(16%)

Ventilation, Heating, Air-Conditioning, and Commercial Refrigeration Equipment Manufacturing

(10%)

Plastics Product Manufacturing

Boiler, Tank, and Shipping Container Manufacturing

(16%)

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

(25%)

New Mexico has benefited from a business-friendly approach by Gov. Susana Martinez, who has been making a concerted effort to attract CEO attention and company locations since she took office in 2011. New Mexico cut business tax rates by 22 percent and strengthened its technology jobs tax credits. A new Rapid Workforce Development fund helps the state close recruitment deals that require highly specialized, trained workforces. As a result, the state has recently landed facilities for Union Pacific, FedEx, Safelite, Fidelity, and other companies that were looking elsewhere, including Texas. The announcement of a new Facebook data center was a huge prize, too. Martinez also has led the stateâ&#x20AC;&#x2122;s export-boosting efforts, which have resulted in New Mexico producing big relative increases in export-related job growth.

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Te x a s Before Martinez took office, she said, CEOs noticed that New Mexico was “very punitive” toward business. This was an especially big problem because the state is heavily dependent on federal largesse through military bases and major research facilities such as the Los Alamos National Laboratory. And New Mexico’s biggest business remains oil and gas. “Now CEOs are seeing a whole different environment,” Gov. Martinez told Area Development. “They know we want their companies here.” “New Mexico has moved the needle tremendously in the last couple of years,” agrees Larry Gigerich, managing director at Ginovus. “Prior to Gov. Martinez, it was a pretty high-tax state overall, and you had either highly skilled workers or very low-skilled workers. There weren’t

PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Agriculture, Construction, and Mining Machinery Manufacturing

(28%)

Architectural and Structural Metals Manufacturing

Aerospace Product and Parts Manufacturing

(11%)

Animal Slaughtering and Processing

(1%)

Semiconductor and Other Electronic Component Manufacturing

(16%)

Basic Chemical Manufacturing

12%

13%

Plastics Product Manufacturing

Other Fabricated Metal Product Manufacturing

(8%)

Printing and Related Support Activities

(3%)

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

(16%)

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Data center development has taken off in New Mexico (Facebook) and Arizona (PayPal, Charles Schwab, Apple).

many semi-skilled workers.” Arizona has continued its strong recent economic performance. While the boom times fueled by the arrival of droves of snowbird retirees have leveled off, the state has managed to snare a new kind of growth — in tech facilities and employment. In fact, Arizona is among national leaders in job growth in the sector that includes data centers and other tech work, as well as the finance-related sector, largely because of a prevalence of insurance company outposts. Recent tech announcements have included the addition of 1,500 jobs in Tempe, with the opening of a new facility there by Automated Data Processing, and the

expansion of McKesson’s existing facility in Phoenix. Gov. Doug Ducey and the Arizona legislature also helped the state’s pursuit of more tech jobs by streamlining laws that deal specifically with data centers. The state is home to more than 50 major data centers including those operated by PayPal, Charles Schwab, and Apple. However, White of Site Selection Group warns that the decision by the state’s voters in November to raise Arizona’s minimum wage to $10 in 2017, and then incrementally to $12 by 2020, could slow employment growth in the datacenter and other sectors. — Dale Buss

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Colorado

Mountain

Idaho Montana Nevada Utah Wyoming

HIGH-TECH AND CLEAN-TECH COMPANIES DRIVING GROWTH

Although their economies have been traditionally resource-based, the Mountain States also have flourishing high-tech and alternative-energy sectors.

ECONOMIC SECTORS IN THE MOUNTAIN REGION are as diverse as its states. The nation counts on the Mountain States to deliver the natural resources the country needs to keep running — for example, oil and gas, metals, coal, agriculture, and timber. To further diversify, these states continue to expand into knowledge-based industries with high-growth potential, creating high-tech hotspots throughout the region — especially in Colorado, Utah, and Nevada. These trends are reflected by GDP and unemployment rates. Colorado’s first quarter 2016 GDP growth was 3 percent, followed by Utah (2.4 percent). However, negative growth for the Montana (-0.90 percent) and Wyoming (-4.90 percent) economies is a reflection of low oil and gas prices, reduced coal mining, and depressed agriculture prices. This is also mirrored by the region’s unemployment figures — Colorado, Idaho, and Utah are in the 3.4–3.8 percent range

2016 Educational Attainment

Less Than 9th Grade 9th Grade to 12th Grade High School Diploma Some College Associate’s Degree Bachelor’s Degree Graduate Degree and Higher

STATE

Colorado Idaho Montana Nevada Utah Wyoming

Colorado

Idaho

Montana

Nevada

Utah

Wyoming

5.4% 5.0% 22.2% 22.2% 8.0% 23.6% 13.6%

6.2% 5.3% 27.9% 26.6% 8.8% 17.2% 8.0%

3.1% 5.1% 30.0% 24.5% 8.1% 19.7% 9.5%

8.5% 7.2% 28.5% 25.8% 7.6% 14.8% 7.7%

4.2% 4.9% 23.6% 27.3% 9.5% 25.4% 10.2%

3.3% 5.3% 29.6% 27.0% 10.1% 16.7% 8.2%

POPULATION

TOTAL LABOR FORCE

5,529,588 1,671,731 1,040,690 2,929,065 3,037,324 591,235

2,906,914 813,309 519,550 1,428,752 1,503,152 300,970

JOBS

2,709,585 718,506 474,881 1,311,958 1,464,188 291,309

% CHANGE SINCE 2012

UNEMPLOYMENT (SEPTEMBER 2016)

13% 11% 5% 13% 14% -2%

3.6% 3.8% 4.3% 5.8% 3.4% 5.3%

AREA DEVELOPMENT | 2017 Annual Directory

Colorado PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

12%

Beverage Manufacturing

10%

36%

Aerospace Product and Parts Manufacturing

10%

Animal Slaughtering and Processing

(3%)

Medical Equipment and Supplies Manufacturing

resource–based industries, these states also have flourishing high-tech sectors, Printing and Related Support Activities 4% 2% 4% including clean technologies, cyber Bakeries and Tortilla Manufacturing 4% 2% 16% security, IT, telecommunications, life sciences, electronics, aerospace, food Plastics Product Manufacturing 4% 2% 19% processing, and financial services. These Semiconductor and Other Electronic robust economies attract high-quality Component Manufacturing 3% 4% (16%) workers. In a recent survey by CNBC, Machine Shops; Turned Product; and Screw, Colorado placed third for top workforce Nut, and Bolt Manufacturing 3% 2% 4% and enjoys one of the best net migration rates in the country. In 2015, Utah’s IT jobs grew at a healthy 7.7 percent rate, and financial services enjoyed a 3.5 percent increase in jobs. Idaho and Nevada have also deShare of 2012-2016 Share of veloped high-tech clusters. Although PRINCIPAL MANUFACTURING Total Mfg. Total Mfg. % Job agriculture and food processing are GRP Change Jobs INDUSTRIES major industries in Idaho, so is the advanced manufacturing of computers Semiconductor and Other Electronic and other electrical equipment, with Component Manufacturing 15% 28% 10% key player Micron Technology based in Fruit and Vegetable Preserving and Boise. As of August 2016, Idaho was Specialty Food Manufacturing 12% 6% (1%) one of the top states for year-over-year Dairy Product Manufacturing 6% 5% 32% job growth, many of those jobs reflectOther Wood Product Manufacturing 5% 2% 19% ing good wages and benefits. Nevada is moving beyond mining and gaming Sawmills and Wood Preservation 3% 2% 10% into advanced manufacturing, with the Other Fabricated Metal Product massive, multi-billion dollar Tesla MoManufacturing 3% 2% 36% tors project; the expansion of Switch, a Computer and Peripheral Equipment large-scale data center with multibillionManufacturing 3% 5% (32%) dollar operations in Las Vegas and Plastics Product Manufacturing 3% 2% 21% Reno; and Faraday Future, an electric car company that hopes to build a $1 Animal Slaughtering and Processing 3% 1% 29% billion factory in North Las Vegas, creatSugar and Confectionery Product ing 4,500 jobs. eBay also plans to build Manufacturing 3% 3% (8%) its fourth data center at the Tahoe-Reno Industrial Center. This positive economic growth does, however, pose a challenge — finding enough qualifor September 2016, well below the national average of 5 fied workers to fill the new positions. Colorado’s Office of percent, but higher unemployment rates (4.3–5.8) persist in State Planning and Budgeting indicates the broad economic the other states. growth across a number of industries is resulting in a tight labor market, which is constraining business expansion and High-Tech H o t S p o t s overall economic growth. This is especially true for posiThere is no doubt the economic leaders in the Mountain tions that require higher-tech skills. For example, with the region are Colorado and Utah. In addition to their natural-

Idaho

AREA DEVELOPMENT

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Montana PRINCIPAL MANUFACTURING INDUSTRIES

impressive IT growth in Utah, companies are desperate for more engineers and science, technology, engineering, and math (STEM)-educated workers to enable staff expansions.

Alternative E n e r g y

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Other Miscellaneous Manufacturing

20%

Sawmills and Wood Preservation

Petroleum and Coal Products Manufacturing

46%

19%

Beverage Manufacturing

30%

Printing and Related Support Activities

13%

Architectural and Structural Metals Manufacturing

33%

Veneer, Plywood, and Engineered Wood Product Manufacturing

12%

Cement and Concrete Product Manufacturing

14%

Bakeries and Tortilla Manufacturing

(1%)

Depressed oil and gas production, Other Fabricated Metal Product coal mining, and agriculture are holding 1% (3%) Manufacturing 3% back economic recovery and new jobs in areas of the Mountain region, especially Montana and Wyoming. For example, nearly one third of Wyoming’s GDP comes from mining. Revenue shortfalls from oil and gas taxes are hurting state Share of 2012-2016 Share of budgets. Elsewhere, livestock prices and PRINCIPAL MANUFACTURING Total % Job Mfg. Total Mfg. farm earnings continue to drop from GRP Change Jobs INDUSTRIES 2015 levels, in some places as much as 20 percent. Other Miscellaneous Manufacturing 15% 19% (10%) To make up for these losses and Printing and Related Support Activities 8% 5% 11% stabilize their long-term economies, Plastics Product Manufacturing 7% 5% 11% Mountain States are investing in other abundant natural resources — sun and Architectural and Structural Metals wind. The huge potential for solar- and Manufacturing 6% 4% 34% wind-generated power is attracting Bakeries and Tortilla Manufacturing 4% 2% 16% significant domestic and foreign investCement and Concrete Product ments to these states. Numerous solar Manufacturing 4% 4% 15% projects are already supplying electricity Navigational, Measuring, Electromedical, to the grid — for example, SunPower’s and Control Instruments Manufacturing 4% 5% (2%) 64 MW Hooper Solar project in Mosca, Other Food Manufacturing 3% 3% 34% Colorado, generates enough energy to power 13,500 households. In another Machine Shops; Turned Product; and Screw, example, 231 MW of solar electric Nut, and Bolt Manufacturing 3% 2% (7%) capacity was installed in Utah in 2015, Other Fabricated Metal Product much of it in the utility and commercial Manufacturing 2% 2% 7% sectors. Wind energy is also getting plenty of attention. Wyoming has several big Forsyth will become Montana’s largest wind farm, generprojects under way, including Anschutz Corporation’s 2,000ating enough electricity for 300,000 homes. “At 300 megaacre wind farm in Carbon County. When operational, it will watts, it’s almost 50 percent of Montana’s current wind be one of the largest wind power producers in North America, energy output of 665 megawatts,” says Jeff Fox, Montana generating enough electricity to power one million homes policy manager for Renewable Northwest, a Portland, (excess energy will be sent to Las Vegas and California via a Oregon-based group that advocates the use of renewable 730-mile power line). energy sources. Fox points out that big companies like And Clearwater Energy’s Judith Gap Wind Farm near

Nevada

AREA DEVELOPMENT | 2017 Annual Directory

Utah

colorado

PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Medical Equipment and Supplies Manufacturing

25%

Other Miscellaneous Manufacturing

Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

(11%)

Aerospace Product and Parts Manufacturing

19%

Pharmaceutical and Medicine Manufacturing

32%

Architectural and Structural Metals Manufacturing

Motor Vehicle Parts Manufacturing

30%

Printing and Related Support Activities

(2%)

Plastics Product Manufacturing

Semiconductor and Other Electronic Component Manufacturing

(7%)

Oil and Gas Production and Transportation Hospitality and Tourism Education and Knowledge Creation Aerospace Vehicles and Defense Business Services

idaho Information Technology and Analytical Instruments Agricultural Inputs and Services Food Processing and Manufacturing Metal Mining Local Health Services

To p Industry Clusters

montana

Wyoming PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Petroleum and Coal Products Manufacturing

15%

55%

26%

Basic Chemical Manufacturing

10%

14%

(4%)

Cement and Concrete Product Manufacturing

(1%)

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

Pesticide, Fertilizer, and Other Agricultural Chemical Manufacturing

21%

Beverage Manufacturing

42%

Sugar and Confectionery Product Manufacturing

(7%)

Agriculture, Construction, and Mining Machinery Manufacturing

(21%)

Sawmills and Wood Preservation

39%

Boiler, Tank, and Shipping Container Manufacturing

(29%)

Oil and Gas Production and Transportation Education and Knowledge Creation Agricultural Inputs and Services Metal Mining Transportation and Logistics

nevada Hospitality and Tourism Metal Mining Business Services Distribution and Electronic Commerce Local Real Estate, Construction, and Development

utah Information Technology and Analytical Instruments Medical Devices Education and Knowledge Creation Biopharmaceuticals Business Services

wisconsin Wal-Mart and Google are investing in wind energy, either by purchasing power directly or buying the entire wind farm for their own use. “In 2015, almost 60 percent of all new generating capacity on the U.S. grid was wind power, and about half of that was built on contract with corporate purchasers,” Fox adds. “That’s the emerging trend.” — Mark Crawford

AREA DEVELOPMENT

* Based on job growth, earnings, GRP, regional competitiveness, and regional specialization

Paper and Packaging Food Processing and Manufacturing Information Technology and Analytical Instruments Downstream Metal Products Agricultural Inputs and Services

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Alaska California

Pacific

Hawaii Oregon Washington

VARIED SECTORS RIDING THE HIGH-TECH WAVE

STATE ECONOMIES IN THE PACIFIC REGION are as varied as the rugged Pacific coastline. For example, Oregon and Washington have some of the fastest-growing economies in the country, expanding at 3.9 percent GSP for the first quarter of 2016. California, with its huge economy (if California was an independent country, it would be the seventh-largest economy in the world) grew at a respectable 2 percent. Being less diversified, growth rates for GSP in Hawaii (1.7 percent) and Alaska (-1.0 percent) were smaller. Unemployment rates for California, Oregon, and Washington were 5.5 to 5.6 percent in September 2016. Impacted by reduced oil and gas production, Alaska’s unemployment rate was higher at 6.9 percent; fueled by an improving national economy and a resurgence in tourism, Hawaii enjoyed an unemployment rate of 3.3 percent in September 2016.

From high-tech to clean-tech to tourism, the Pacific States are seeing economic expansion, although it’s uneven throughout the region

Te c h Jo b s i n De ma n d

2016 Educational Attainment Alaska

Less Than 9th Grade 9th Grade to 12th Grade High School Diploma Some College Associate’s Degree Bachelor’s Degree Graduate Degree and Higher

3.8% 5.2% 27.9% 27.5% 8.5% 17.8% 9.4%

California

12.6% 6.6% 21.1% 21.5% 7.7% 19.4% 11.1%

Hawaii

Oregon

Washington

4.6% 4.6% 28.6% 21.7% 10.1% 20.4% 10.0%

6.0% 5.3% 24.5% 25.9% 8.2% 19.0% 11.1%

5.5% 5.1% 23.2% 24.3% 9.6% 20.6% 11.7%

Strong economic growth, high-tech industries, and good-paying jobs make California, Oregon, and Washington places where people want to live and work. California created 483,000 jobs in 2015, far more than any other state. In 2015, Oregon had one of the bestperforming economies in

STATE

POPULATION

TOTAL LABOR FORCE

JOBS

% CHANGE SINCE 2012

UNEMPLOYMENT (SEPTEMBER 2016)

Alaska California Hawaii Oregon Washington

744,802 39,495,312 1,444,968 4,060,722 7,244,640

360,468 19,437,451 813,309 2,086,786 4,219,409

364,766 17,352,817 727,924 1,916,649 3,410,044

1% 10% 7% 12% 9%

6.9% 5.5% 3.3% 5.5% 5.6%

AREA DEVELOPMENT | 2017 Annual Directory

Strong economic growth and goodpaying jobs make the Pacific mainland a place where people want to live and work.

hawaii

washington

Federal Government Services Hospitality and Tourism Business Services Electric Power Generation and Transmission Transportation and Logistics

Aerospace Vehicles and Defense Information Technology and Analytical Instruments Communications Equipment and Services Agricultural Inputs and Services Distribution and Electronic Commerce

alaska Fishing and Fishing Products Metal Mining Oil and Gas Production and Transportation Construction Products and Services Local Utilities

california

To p Industry Clusters

oregon Information Technology and Analytical Instruments Business Services Forestry Wood Products Automotive

Video Production and Distribution Information Technology and Analytical Instruments Marketing, Design, and Publishing Biopharmaceuticals Apparel

* Based on job growth, earnings, GRP, regional competitiveness, and regional specialization

Alaska PRINCIPAL MANUFACTURING INDUSTRIES Seafood Product Preparation and Packaging

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

73%

41%

Beverage Manufacturing

51%

Ship and Boat Building

Petroleum and Coal Products Manufacturing

31%

(2%)

Other Wood Product Manufacturing

314%

Printing and Related Support Activities

(11%)

Cement and Concrete Product Manufacturing

(1%)

Bakeries and Tortilla Manufacturing

(3%)

Architectural and Structural Metals Manufacturing

(56%)

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

AREA DEVELOPMENT

the nation as measured by employment, home prices, personal income, and tax revenues, according to Bloomberg. Tech jobs are especially in high demand. In Portland, for example, the IT industry reported a 7.7 percent increase in employment in 2015 â&#x20AC;&#x201D; about an extra 1,800 jobs. Another booming tech cluster is the Puget Sound region of Washington. This increased overall growth does create challenges such as more in-migration, which drives up housing costs and impacts education and transportation capacities. But it also drives an improving housing market up and down the coast. For instance, Washingtonâ&#x20AC;&#x2122;s real estate sector GDP grew by almost 1.0 percent in the first quarter of 2016.

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Diversified economies keep the Pacific mainland rolling along, even when the states’ more traditional industries such as agriculture and energy suffer economic downturns. Much of the diversity comes from technologybased industries such as biotechnology, communications, computers and IT, electronics, clean energy, and digital media. Tech companies in the San Francisco Bay area’s “Silicon Valley” are at record levels of employment, even topping the peaks of the dot-com era. “The Bay Area is marching to its own drumbeat and is going to outperform California,” predicts Stephen Levy, director of the Palo Alto-based Center for Continuing Study of the California Economy. There are still plenty of deals taking place. For example, GE Digital recently announced it would buy Pleasanton-based ServiceMax, a machinery

California PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Semiconductor and Other Electronic Component Manufacturing

10%

(5%)

Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

(2%)

Aerospace Product and Parts Manufacturing

Computer and Peripheral Equipment Manufacturing

10%

17%

Beverage Manufacturing

26%

Medical Equipment and Supplies Manufacturing

(3%)

Pharmaceutical and Medicine Manufacturing

11%

Cut and Sew Apparel Manufacturing

(17%)

Bakeries and Tortilla Manufacturing

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

(1%)

CALI FOR NI A

2nd

21st

largest city in Riverside County

square

MILES

largest city in CALIFORNIA

207,675

Moreno Valley Population 2016

Inland Empire ONE OF THE FASTEST GROWING REGIONS

IN THE US

TRANSPORTATION

SERVED BY

20-mile radius population

2,302,607 Home to numerous

Fortune 500

AND INTERNATIONAL COMPANIES

CALIFORNIA STATE ROUTE 60 | INTERSTATE 215 METROLINK CHARTER & CARGO FLIGHTS FROM MARCH INLAND PORT AIRPORT INTERNATIONAL FLIGHTS FROM ONTARIO AIRPORT

951.413.3460 | www.morenovalleybusiness.com | edteam@moval.org

AREA DEVELOPMENT | 2017 Annual Directory

Both Alaska and Hawaii have economies that greatly depend on one or two industries. California, with an average revenue growth of 11 percent. Another important high-tech industry in the Pacific region, especially in Washington, is aerospace, where several clusters develop and build products for major manufacturers and airlines throughout the world, including Boeing, Airbus, Embraer, and Bombardier.

management software maker, for $915 million. California is also the undisputed leader in the rapidly expanding green energy sector â&#x20AC;&#x201D; among the more than 100 North American companies in the Bloomberg Americas Clean Energy Index, about 20 percent are headquartered in

Hawaii

Tou ri s m Up; Oi l a n d G a s in Slump

PRINCIPAL MANUFACTURING INDUSTRIES

Share of Total Mfg. Jobs

Share of Total Mfg. GRP

2012-2016 % Job Change

Bakeries and Tortilla Manufacturing

19%

17%

Other Food Manufacturing

14%

Beverage Manufacturing

Sugar and Confectionery Product Manufacturing

Ship and Boat Building

Cement and Concrete Product Manufacturing

37%

Printing and Related Support Activities

(8%)

Other Miscellaneous Manufacturing

(4%)

Petroleum and Coal Products Manufacturing

33%

Cut and Sew Apparel Manufacturing

(9%)

Both Hawaii and Alaska have economies that greatly depend on one or two key industries. In Hawaii, that industry is tourism, which is the largest single income source for the state and impacts all other key sectors, including construction, hospitality, transportation, retail, and health and wellness. According to the Department of Business, Economic Development and Tourism (DBEDT), during the first quarter of 2016, a total of 14,400 non-agriculture payroll jobs were added in the economy, representing a 2.3 percent increase. Most industries gained jobs, led by the construction industry, which contributed 46 percent of the total job gain with an increase of 6,600 jobs. (In fact, 2015 was a record year for

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“We have a co-working space, we have venture funds, the construction industry in the state, with the total value we have a relationship with the University of Alaska,” says of construction completed equaling $8.1 billion.) Other job Lance Ahern, managing director at Launch. “All the pieces gains in the first quarter of 2016 included food services are here.” (2,700 jobs) and healthcare and social assistance (2,500 — Mark Crawford jobs). DBEDT expects Hawaii’s economic growth to increase to 2.4 percent in 2017. In contrast, Alaska is linked to an industry that is currently in a major slump — oil and gas. The oil and gas industry is the largest compoShare of 2012-2016 Share of nent of Alaska’s economy — nearly PRINCIPAL MANUFACTURING Total % Job Mfg. Total Mfg. 85 percent of the state budget and GRP Change Jobs INDUSTRIES about one third of all state jobs are supplied by oil revenues. Reduced oil Semiconductor and Other Electronic and gas activities have hit the state Component Manufacturing 16% 36% 4% budget hard. Petroleum was down Fruit and Vegetable Preserving and 13 percent in the first quarter of Specialty Food Manufacturing 7% 2% 31% 2016, representing a loss of about Veneer, Plywood, and Engineered 2,000 jobs. Construction declined Wood Product Manufacturing 5% 2% 17% about 9 percent in the same quarter, Other Wood Product Manufacturing 4% 2% 18% losing 1,300 jobs. Industries that are showing some gains include seafood, Sawmills and Wood Preservation 3% 2% 5% healthcare, and transportation and Beverage Manufacturing 3% 4% 47% warehousing. Foundries 3% 2% 0% Alaska is continuing its efforts to Bakeries and Tortilla Manufacturing 3% 2% 10% diversify. The state’s third-place ranking in the Tax Foundation’s 2017 State Printing and Related Support Activities 3% 2% (5%) Business Tax Climate Index makes it Navigational, Measuring, Electromedical, an attractive place to conduct busi3% 4% (2%) and Control Instruments Manufacturing ness. Alaska’s corporate income tax is on a sliding scale, ranging from zero percent for companies with less than $25,000 in income to 9.4 percent for those making more than $222,000. This makes it easier for startup compaShare of 2012-2016 Share of PRINCIPAL MANUFACTURING Total nies with limited funds to grow their % Job Mfg. Total Mfg. businesses. GRP Change Jobs INDUSTRIES Alaska’s entrepreneurial ecosystem is starting to gain more traction, in Aerospace Product and Parts Manufacturing 32% 41% (3%) part thanks to Launch, the state’s first Fruit and Vegetable Preserving and business accelerator. Located in AnSpecialty Food Manufacturing 4% 2% 6% chorage, Launch has received grants Navigational, Measuring, Electromedical, from the Small Business Administraand Control Instruments Manufacturing 3% 5% (1%) tion ($50,000 in both 2015 and 2016) Plastics Product Manufacturing 3% 2% 9% and the Office of Naval Research ($600,000). Tenants are developing Beverage Manufacturing 3% 3% 45% innovative technologies and applicaArchitectural and Structural tions, such as drones and robotics, Metals Manufacturing 3% 1% 5% which will benefit areas that are critical Other Miscellaneous Manufacturing 3% 2% 5% to Alaska’s economic growth, such as Semiconductor and Other Electronic safer and more cost-efficient energy 2% 2% 7% Component Manufacturing development. Launch is also supported Seafood Product Preparation by the Alaska Accelerator Fund, a local and Packaging 2% 1% (13%) seed capital fund that was established Sawmills and Wood Preservation 2% 1% (3%) with a $13.2 million grant from the federal government.

Oregon

Wa s h i n g t o n

AREA DEVELOPMENT | 2017 Annual Directory

Canada EXPECTATIONS FOR A STEADY ECONOMY IN 2017

Expanded immigration will help Canada to fill its need for skilled workers as its high-tech industry sectors expand and its economy continues to grow. MOST OF CANADA’S ECONOMISTS AGREE that the country’s economic performance will be better in 2017 than it was in 2016. Canada’s economy contracted 1.6 percent in the second quarter of 2016, a result of the intense Alberta wildfires in and around Fort McMurray, which caused oil sands production shutdowns and mass evacuations. This disaster also had a huge impact nationally, because Alberta produces about 80 percent of Canada’s crude oil and 68 percent of its natural gas (the oil and gas sector also accounts for about 18 percent of the province’s GDP). “The Alberta wildfires, and the sharp pullback in oil sands production in May, took the Canadian economy on a brief detour into negative growth,” comments Craig Wright, senior

vice president and chief economist at Royal Bank of Canada (RBC). “The recovery that is under way should spur a similarly sharp rebound in growth, and we anticipate that momentum will carry over into 2017.” It’s also hoped that Canada’s 2017 economy will benefit from improved energy prices, low interest rates, and federal stimulus. RBC forecasts the Canadian GDP will grow at a rate of 1.8 percent in 2017, up from 1.3 percent in 2016. However, even if energy prices do rebound significantly, they will not likely be back to levels that prevailed over the past decade, due to ongoing competition from lower-cost shale producers. For 2017, the Conference Board of Canada predicts the provinces with the highest GDP increases will be British Columbia (3 percent), Ontario (2.6 percent), Manitoba (2.6 percent), and Prince Edward Island (1.7 percent). Provinces that are more resource-dependent, such as Saskatchewan and Newfoundland and Labrador — are expected to struggle with maintaining positive growth.

Diversification Is Key At 3 percent, British Columbia is expected to have the fastest-growing provincial economy in 2017. Although the mining sector is weak, gains in forestry, construction, transportation, and real estate will help drive growth. Software publishing, computer system design, and other related technical services are also expanding. In August 2016 unemployment in British Columbia had dropped to 5.5 percent, the lowest among the provinces. Ontario has also shown impressive job growth, adding

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16,200 jobs in September Technology Driven GDP Growth by Province across a variety of sectors. According to Ryerson Ontario’s unemployment University’s report, The rate was 6.6 percent in State of Canada’s Tech September. Job growth was Sector, 2016, Canada’s largely driven by a 5.4 perhigh-tech industries are a cent increase in manufacmajor driver of innovation Province 2016 2017 turing over the first seven and a dependable source N.L. 0.2% -1.2% months of 2016, compared of economic growth across to the same period the prea wide range of industries. P.E.I. 2.3 1.7 vious year. Growth was led In 2015, the technology N.S. 1.5 1.6 by motor vehicle assembly, sector generated about N.B. -0.4 1.4 which is on pace to increase $120 billion in revenue, or Que. 1.8 2.0 by more than 10 percent by 7.1 percent of Canada’s Ont. 2.8 2.6 the end of 2016. economic output. About Man. 2.1 2.6 For example, planned 860,000 Canadians are Sask. 0.2 1.1 auto-related expansions in employed in the tech Alta. -2.0 2.5 Ontario include General sector, representing 5.6 B.C. 3.0 3.0 Motors’ upgrade of its Ospercent of Canada’s total Source: Conference Board of Canada predictions hawa plant ($554 million), employment. Also, accordFiat Chrysler Automobiles’ ing to the report, the tech $331 million expansion sector invested more than in Brampton, and $713 $9 billion in research and million from Ford Motor development in 2015. Company, much of which High-tech clusters are will be spent on a new enlocated in most of Canagine program in Windsor. da’s major cities, including These upgrades also include some advanced technology Vancouver, Calgary, Winnipeg, Toronto, Waterloo, Montreal, development — Ford is partnering with Waterloo’s Blackand Halifax. Some high-profile companies that are getting inBerry, and General Motors will continue with its connected ternational attention include Montreal’s PlusGrade (revenue and autonomous vehicle engineering and software R&D upgrade platform for the airline industry) and Vancouver’s development at the Markham Software Center. UrTheCast (real-time, high-definition images and data from Manitoba and Prince Edward Island (PEI) both depend on space for geospatial and geoanalytical applications). their agricultural sectors to drive their economies. Exports Essential for the continued expansion of these and other of food products (especially seafood) from PEI have steadily sectors is having a plentiful supply of highly skilled workers. A increased in 2016. There are, however, stressors in the agriculpaucity of skilled workers, combined with the large proportural markets, such as low crop prices. To ease the impact of tion of the national workforce that is aging and retiring, could price swings in agriculture and energy/mining, both provslow down the growth of the workforce to as little as 0.30 inces have diversified into other industries, such as advanced percent per year. Given this demographic reality, achieving manufacturing. Because low crop prices have hurt farm faster economic growth will require raising productivity and/or incomes, farmers are spending less on new equipment, which finding more workers through expanded immigration policies. is depressing heavy equipment sales (modest increases in oil In October 2016, Immigration Minister John McCallum anprices in 2017 should, however, help bump heavy equipment nounced that Canada would welcome 300,000 immigrants to sales in 2017). the country in 2017. The previous target from 2011 to 2015 Smaller, high-tech manufacturing clusters that are perwas 260,000, but that number was increased to 300,000 forming well include aerospace, clean energy, information to assist with the Syrian refugee crisis and will now be the and communications technology, and bioscience. Bioscience permanent base number. The 2017 target boosts entries for is a rapidly growing industry on Prince Edward Island, which those in the “economic” class — skilled workers, businessgenerates over $200 million in annual exports. An interpeople, and caregivers — from 160,600 to 172,500. national bioscience firm — Sekisui Diagnostics — recently In a press release, Kevin Lamoureux, the parliamentary secannounced a $3.5 million expansion and renovation of its retary to the leader of the government in the House of Comfacility in Charlottetown. “Sekisui Diagnostics is dedicated to mons, indicates that immigrants not only fill jobs that would continue growing our business here on Prince Edward Island,” otherwise remain vacant, they also contribute to the character says director of manufacturing Brian Stewart. “Not only do we and social fabric of communities. “Immigration plays a critical have a group of highly skilled and dedicated employees, we role in terms of the future of Canada, in particular in regions have the support and collaboration of government, which will where the threat of depopulation is a reality,” he states. take us to the next level.” — Mark Crawford

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Mexico MAINTAINING A PLACE IN GLOBAL MANUFACTURING

Despite dealing with a collapse in oil prices and threats of new tariffs to be imposed by the incoming Trump administration, Mexico retains significant economic advantages.

THE MOMENT DONALD TRUMP DECLARED that the United States is going to slap tariffs on Mexican manufactured goods imported to the United States, all discussion of the future of the Mexican economy became dominated by the prospect of a Trump presidential-election victory and its potential effects on the North American Free Trade Agreement. And now that there’s a new Trump administration in Washington, D.C., everyone has been trying to predict exactly how President Trump will make good on his promise to American voters and how the southern member of NAFTA will respond. It may have been telling that Trump’s biggest gambit after the election was to persuade United Technologies’ Carrier airconditioning division to reverse its earlier plan to move 2,200 jobs from Indiana to its operations in Mexico, and instead to retain about half of those jobs in America. “Mexico is in deep trouble,” Alan Blinder, head of the Economics department at Princeton University, told Area Development. “Even if Trump can’t outright abrogate NAFTA, there are many things he can do on his own authority that will throw a huge monkey wrench into trade between the U.S. and Mexico.” Yet Mexico can rely on a significant counterweight to any such plans: its established, significant place in global manu-

facturing and logistical networks that have been built with the appeal of Mexican factories at the center. “It’s not as simple as someone deciding just to bring all components manufactured back to the United States and have them put into cars in the United States,” says Dan Sandberg, president and CEO of Brembo North America, a major supplier of brake components to automakers worldwide. “One reason is the ramifications for consumers: Do Americans really want to pay $70,000 for a car that now costs them $35,000?”

Strong Advantages In any event, Mexico retains a number of strong economic advantages that will continue to buttress its economy and draw job-creating investments in the years ahead. One of them is the sheer and growing size of a manufacturing base that has been powering the economy for several years now, in large part because Mexico enjoys lower labor costs than the United States and has become a preferred option for American and European manufacturers that want a low-cost option but have grown wary of the rising wage rates and logistical vulnerabilities of sourcing their goods in China or other Asian countries. Latin America’s second-largest economy, and No. 15 in the world in nominal terms, Mexico also enjoys more than 40 free-trade agreements with countries around the world, significantly lower labor costs than the United States, a younger population, and a reform-minded federal government that has made it increasingly attractive for companies to invest in the expansion of manufacturing there. The country also continues to benefit from growth in its agricultural and services sectors. For example, avocado imports from Mexico now enjoy more than a 70 percent share of a $2 billion-plus annual market in the United States. Bolstered by a marketing arm called Avocados From Mexico that plans to advertise in February in its third consecutive Super Bowl telecast, the Mexican avocado industry has benefited as U.S. consumption of avocados reached an estimated record of 2.5 billion pounds, compared with 1.9 billion pounds in 2014. All of these factors have helped Mexico surge into pole position among Latin American economies seeking further investment, especially as the economic woes of Brazil — yesterday’s emerging-market star — have deepened. That’s

AREA DEVELOPMENT | 2017 Annual Directory

not to say that President Enrique Peña Nieto and the Mexican economy haven’t been encountering some recent difficulties even before Trump’s threats to pull out of NAFTA clouded their prospects. GDP growth in 2016 ratcheted down to the range of around 2 percent growth after having come in at 2.3 percent in 2014 and 2.5 percent in 2015. In the second quarter of 2016, in fact, the Mexican economy shrank for the first time in three years, contracting by 0.2 percent year-overyear. Still, Mexico’s 2016 performance was much better than that of the U.S. economy, which could produce growth of only about 1 percent for most of the year, but it represented a setback for Mexico.

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Meeting Challenges The biggest reason for Mexico’s recent struggles has been the two-year-long collapse in oil prices, which came just after the Peña Nieto presidency had opened the country’s energy industry to private and foreign players in 2012 and 2013. The administration had to cut back spending by Pemex, the Mexican national oil company. “It’s fair to say that Mexico has weathered the collapse of global commodity prices better than most in Latin America, but its star has faded — and it doesn’t look likely to return in the next couple of years,” Neil Shearing, Capital Economics’ emerging-markets expert, said in late 2016. Mexico has been offsetting oil-price woes with a huge and growing industrial base that is making cars, clothes, and food for the United States and markets all over the world. Peña Nieto added to the appeal of Mexico for job creation with a wave of measures beginning in 2012 that reformed the minimum wage, women’s worker rights, and union transparency. He also took moves to bust up anti-competitive Mexican monopolies. While in total these moves clearly increased the future cost of doing business in Mexico, they continued the country’s move toward western commercial norms and were considered harbingers of future economic stability. One of the biggest examples is the investment by Audi in a new plant in San José Chiapa, Mexico, to build a new version of its popular Q5 crossover-utility vehicle. Audi’s parent company, Volkswagen AG, chose the site over construction of the plant next to VW’s existing factory in Chattanooga, Tenn., to serve as the single source for Q5 vehicles around the globe. Audi was attracted not only by Mexican labor costs and freetrade agreements but also by its conviction that the local work force indeed could meet the exacting quality standards that Audi upholds at its plants in Germany and elsewhere — and which are crucial to the brand in a highly competitive luxury automotive market. More than 3,000 hourly workers have begun churning out Q5s at the plant. Mexico also continues to roll out blockbuster infrastructure projects that will attract foreign investors, such as Mexico City’s huge, symbolic new airport, which is scheduled to begin operations in 2020. The new airport in the federal capital will require an investment of more than $13 billion to complete, including a $3.5 billion new passenger terminal. The futuristic airport building was designed by British architect Norman Foster and Fernando Romero, son-in-law of Mexican tycoon Carlos Slim. — Dale Buss

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State Contacts & Select Sites NEW ENGLAND

Select Sites

Connecticut

Karen Pollard, Economic Development Manager City of Rochester, New Hampshire 31 Wakefield Street Rochester, NH 03867 603-335-7522 Fax: 603-335-7597 www.ThinkRochester.biz Karen.Pollard@rochesternh.net

Tricia Paesani , Manager, Business Development Connecticut Department of Economic and Community Development 505 Hudson Street Hartford, CT 06106 860-270-8215 Select Sites Gerald Sitko, Economic Development Coordinator Cheshire Economic Development Corp. 84 South Main Street Cheshire, CT 06410 203-271-6670 www.cheshirect.org jsitko@cheshirect.org

Maine

George C. Gervais, Commissioner Maine Department of Economic and Community Development 59 State House Station Augusta, ME 04333-0059 207-624-9800

Massachusetts

Nam Pham, Assistant Secretary of Business Development & International Trade Massachusetts Office of Business Development 10 Park Plaza, Suite 3730 Boston, MA 02116 617-973-8600 • Fax: 617-973-8554

New Hampshire

Jeffrey J. Rose, Commissioner, Department of Resources and Economic Development New Hampshire Business Resource Center 172 Pembroke Road Concord, NH 03301 603-271-2591

Maryland

R. Michael Gill, Secretary Maryland Department of Commerce World Trade Center Baltimore 401 E. Pratt Street Baltimore, MD 21202 410-767-6300

New Jersey

Michele Brown, President & CEO Choose New Jersey 200 Rockingham Row Princeton Forrestal Village Princeton, NJ 08540 609-297-2200

Rhode Island

Stefan Pryor, Secretary of Commerce Executive Office of Commerce, State of Rhode Island 82 Smith Street, Providence, RI, 02903 401-278-9100

Select Sites

Darin Early, President Rhode Island Commerce Corporation 315 Iron Horse Way, Suite 101 Providence, RI, 02908 401-278-9100

Vermont

Joan Goldstein, Commissioner State of Vermont, Agency of Commerce and Community Development One National Life Drive Montpelier, VT 05620-5001 802-272-2399

MIDDLE ATLANTIC Delaware

Bernice Whaley, Cabinet Secretary Delaware Economic Development Office 99 Kings Highway Dover, DE 19901 302-739-4271

Sandra Forosisky, Director, Economic Development Services City of Vineland Economic Development 640 E. Wood Street Vineland, NJ 08362 856-794-4100 • Fax: 856-405-4607 www.vinelandbusiness.com sforosisky@vinelandcity.org

New York

Howard Zemsky, President & CEO Empire State Development 625 Broadway Albany, NY 12245 518-292-5100 Select Sites Maureen Riester, Business Development Specialist Cayuga Economic Development Agency (CEDA) 2 State Street Auburn, NY 13021 315-252-3500 • Fax: 315-255-3077 www.cayugaeda.org mriester@cayugaeda.org

AREA DEVELOPMENT | 2017 Annual Directory

Pennsylvania

Dennis M. Davin, Secretary Pennsylvania Department of Community & Economic Development Commonwealth Keystone Bldg. 400 North Street Harrisburg, PA 17120-0225 866-466-3972

MIDWEST Illinois

Sean McCarthy, Acting Director Illinois Department of Commerce & Economic Opportunity 500 E. Monroe Street Springfield, IL 62701 217-782-7500 Select Sites Howard Gutzwiller, Manager Economic Development/Key Accounts Hoosier Energy P.O. Box 908 Bloomington, IN 47402 812-876-0294 www.HoosierSites.com Hgutzwiller@hepn.com

Indiana

Jim Schellinger, President Indiana Economic Development Corporation One North Capitol, Ste. 700 Indianapolis, IN 46204 800-463-8081 • 317-232-8800 Fax: 317-232-4146 Select Sites Jason Hester, CEcD, President Greater Columbus EDC 440 5th Street Columbus, IN 47201 812-378-7300 Mobile: 812-350-2550 ColumbusIN.org jhester@columbusin.org Howard Gutzwiller, Manager Economic Development/Key Accounts Hoosier Energy P.O. Box 908 Bloomington, IN 47402 812-876-0294 www.HoosierSites.com Hgutzwiller@hepn.com

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Iowa

Debi V. Durham, Director Iowa Economic Development Authority 200 E. Grand Ave. Des Moines, IA 50309 515-725-3000

Michigan

Steve Arwood, CEO Michigan Economic Development Corporation 300 N. Washington Square Lansing, MI 48913 888-522-0103

Minnesota

Kevin McKinnon, Deputy Commissioner, Economic Development Minnesota Department of Employment and Economic Development First National Bank Building 332 Minnesota Street, Ste. E200 St. Paul, MN 55101 651-259-7114

Missouri

Steve Johnson, CEO The Missouri Partnership 120 South Central Ave. Ste. 1535 Clayton, MO 63105 314-725-0949 Select Sites Mark S. Gaugh, City Manager City of Cameron 205 N. Main Street Cameron, MO 64429 816-632-2177 www.cameronmo.com director@cameronmo.com

Ohio

John Minor, President & CIO JobsOhio 41 S. High Street, 15th Floor Columbus, Ohio 43215 614-300-1150

Wisconsin

Coleman Peiffer, Business Development Manager Wisconsin Economic Development Corporation 201 W. Washington Ave., 6th Floor Madison, WI 53703 608-210-6714

PLAINS Kansas

Steve Kelly, Director Business and Community Development Kansas Department of Commerce 1000 SW Jackson, Suite 100 Topeka, KS 66612-1354 785-296-5298

Nebraska

Courtney Dentlinger, Director Nebraska Department of Economic Development 301 Centennial Mall South P.O. Box 94666 Lincoln, NE 68509-4666 402-471-3111 Select Sites Mary Plettner, CEcD Economic Development Manager Nebraska Public Power District 1414 15th Street PO Box 499 Columbus, NE 68602-0499 402-563-5534 • Fax: 402-563-5090 econdev.nppd.com econdev@nppd.com

North Dakota

Al Anderson, Commissioner North Dakota Department of Commerce P.O. Box 2057 1600 E. Century Ave., Suite 2 Bismarck, ND 58502-2057 701-328-5300

South Dakota

Steve Watson, Business Development Director Governor’s Office of Economic Development 711 E. Wells Avenue Pierre, SD 57501-3369 605-367-4518

SOUTH Alabama

Greg Canfield, Secretary Alabama Department of Commerce 401 Adams Avenue, 6th Floor Montgomery, AL 36130 334-242-0421 • Fax: 334-242-5669

Arkansas

Mike Preston, Executive Director Arkansas Economic Development Commission 900 West Capitol, Suite 400 Little Rock, AR 72201 501-682-1121

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

Kentucky

Select Sites

Allen Hester, President/CEO Dyersburg/Dyer County Chamber of Commerce 2000 Commerce Ave. Dyersburg, TN 38024 731-285-3433 • Fax: 731-286-4926 www.dyerchamber.com ahester@dyerchamber.com

Terry R. Gill, Jr., Secretary Kentucky Cabinet for Economic Development Old Capitol Annex 300 West Broadway Frankfort, KY 40601 800-626-2930

Gina Greathouse, Executive Vice President, Economic Development Commerce Lexington Inc. 330 East Main Street, Suite 205 Lexington, KY 40507 859-225-5005 www.locateinlexington.com ggreathouse@commercelexington.com Mandy Lambert, Commissioner for Business Development Kentucky Cabinet for Economic Development Old Capitol Annex 300 West Broadway Frankfort, KY 40601 800-626-2930 www.ThinkKentucky.com Mandy.Lambert@ky.gov

Louisiana

Donald Pierson Jr., Secretary of Economic Development Louisiana Economic Development 1051 North Third Street Baton Rouge, LA 70802-5239 225-342-3000

Mississippi

Billy Klauser, Chief Economic Development Officer Mississippi Development Authority P.O. Box 849 Jackson, MS 39205 800-360-3323 • Fax: 601-359-4339 Select Sites Billy Klauser, Chief Economic Development Officer Mississippi Development Authority P.O. Box 849 Jackson, MS 39205 800-360-3323 • Fax: 601-359-4339 www.mississippi.org bklauser@mississippi.org

Tennessee

Randy Boyd, Commissioner Tennessee Department of Economic and Community Development 312 Rosa L. Parks Ave. Nashville, TN 37243 615-741-1888

SOUTH ATLANTIC Florida

Chris Hart IV, President & CEO Enterprise Florida 800 N. Magnolia Ave., Suite 1100 Orlando, FL 32803 407-956-5600 • Fax: 407-956-5599 Select Sites Dana Brunett, Economic Development Manager City of Cape Coral 1015 Cultural Park Blvd. Cape Coral, FL 33990 239-574-0444 www.bizcapecoral.com dbrunett@capecoral.net

Keith Barclift, Project Manager Northwest Georgia Development Authority 10052 N. Highway 27 Rock Springs, GA 30739 706-375-5792 • Fax: 706-375-5795 www.northwestgeorgia.us keith@northwestgeorgia.us

North Carolina

Margaret Benoit and Katy Parker Client Services Team Economic Development Partnership of North Carolina 15000 Weston Parkway Cary, NC, 27513 919-447-7744 Select Sites Robert E. Leak, Jr., President Winston-Salem Business Inc. 1080 Fourth Street Winston-Salem, NC 27101 336-723-8955 • Fax: 336-761-1069 www.wsbusinessinc.com rleak@wsbusinessinc.com

South Carolina

David Coddington, Vice President, Business Development Greater Fort Lauderdale Alliance 110 E. Broward Blvd., Ste. 1990 Fort Lauderdale, FL 33301 954-627-0123 • Fax: 954-524-3167 www.gflalliance.org dcoddington@gflalliance.org Bill Martin, Executive Director Greater Osceola Partnership for Economic Prosperity 3 Courthouse Square, 2nd Fl. Kissimmee, FL 34741 407-742-4251 www.greaterosceola.com bmartin@greaterosceola.com

Jennifer Noel, Deputy Secretary South Carolina Department of Commerce 1201 Main Street, Suite 1600 Columbia, SC 29201 800-868-7232 • 803-737-0400 Fax: 803-737-0894

Virginia

Stephen Moret, CEO Virginia Economic Development Partnership 901 East Cary Street P.O. Box 798 Richmond, VA 23219 804-545-5600

West Virginia

Keith Burdette, Cabinet Secretary West Virginia Development Office Building 6, Room 525 1900 Kanawha Boulevard East Charleston, WV 25305-0311 800-982-3386 • 304-558-2234 Fax: 304-558-1189

Georgia

Pat Wilson, Commissioner Georgia Department of Economic Development 75 Fifth Street NW, Suite 1200 Atlanta, Georgia 30308 404-962-4000 Select Sites

SOUTHWEST

Stacy Watson, General Manager Georgia Ports Authority P.O. Box 2406 Savannah, GA 31402 912-964-3879 • Fax: 912-964-3869 swatson@gaports.com www.gaports.com

Arizona

Sandra Watson, President & CEO Arizona Commerce Authority 118 North 7th Ave., Suite 400 Phoenix, AZ 85007 602-845-1200 • 800-542-5684 Fax: 602-845-1201

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Select Sites Caryn Sanchez and Karla Moran, Senior Project Managers, Economic Development Salt River Project 602-236-2192 • 602-236-2396 www.PowerToGrowPHX.com Caryn.Sanchez@srpnet.com Karla.Moran@srpnet.com

New Mexico

Tim Nitti, President & CEO New Mexico Partnership 1720 Louisiana Blvd. NE, Suite 312 Albuquerque, NM 87110 505-338-1462 • 505-247-8500 Fax: 505-338-1117

Oklahoma

Charles Kimbrough, Director, Business Development Oklahoma Department of Commerce 900 N. Stiles Oklahoma City, OK 73104 405-815-6552 • 405-815-5361 Select Sites Brien Thorstenberg, CEcD Senior Vice President of Economic Development Tulsa Regional Chamber One West 3rd Street, Suite 100 Tulsa, OK 74103 800-624-6822 • 918-560-0231 Fax: 918-585-8386 www.GrowMetroTulsa.com brienthorstenberg@tulsachamber.com

Texas

Tracye McDaniel, President & CEO Texas Economic Development Corporation P.O. Box 684702 Austin, TX 78768 512-981-6736 Select Sites Fred Welch, Executive Director Danielle Scheiner, Deputy Director Greater Conroe Economic Development Council 505 W Davis Street Conroe, TX 77301 936-522-3014 • Fax: 936-756-6162 www.gcedc.org welch@gcedc.org scheiner@gcedc.org

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Kate Silvas, Executive Director of Economic Development City of Converse EDC 110 W Legion, Converse, TX 78109 210-659-9163 • 888-984-5020 Fax: 210-659-0964 www.converseEdc.com ksilvas@converseEdc.com Caolyn Rowley, Director of Business Recruitment & Innovation Lubbock Economic Development Alliance 1500 Broadway, 6th Fl. Lubbock, TX 79401 806-749-4500 • 800-687-5330 Fax: 806-749-4501 www.lubbockeda.org Carolyn.Rowley@lubbockeda.org Pam Welch, Executive Director Midland Development Corporation 200 N. Loraine St., Ste. 610 Midland, TX 79701 432-686-3552 • Fax: 432-687-8214 www.midlandtxedc.com pwelch@midlandtxedc.com Jennifer May, Executive Director of Business & Governmental Affairs Robert Lung, Assistant Director of Economic Development City of Sugar Land Office of Economic Development 2700 Town Center Blvd. North Sugar Land, TX 77479 281-275-2229 • Fax: 281-275-2217 www.sugarlandecodev.com ecodev@sugarlandtx.gov Kelly Violette, Executive Director Tomball Economic Development Corporation 29201 Quinn Road, Suite B Tomball, TX 77375 281-401-4086 • Fax: 281-351-7223 www.tomballtxedc.org kviolette@tomballtxedc.org

Idaho

Susie Davidson, Manager, Business Development Idaho Commerce P.O. Box 83720 Boise, ID 83720-0093 208-334-2470

Montana

John Rogers, Chief Business Development Officer Montana Governor’s Office of Economic Development State Capitol Helena, MT 59620-0801 406-444-5634 • Fax: 406-444-3674

Nevada

Steve Hill, Executive Director Nevada Governor’s Office of Economic Development 808 West Nye Lane Carson City, NV 89703 775-687-9900

Utah

Theresa Foxley Managing Director, Corporate Recruitment Utah Governor’s Office of Economic Development 60 E. South Temple, Third Floor Salt Lake City, UT 84111 801-538-8850

Wyoming

Lisa Johnson, Business Development Director Wyoming Business Council 214 W. 15th Street Cheyenne, WY 82002 307-777-6589

PACIFIC Alaska

MOUNTAIN

Britteny Cioni-Haywood, Division Director Division of Economic Development State of Alaska Department of Commerce, Community & Economic Development 3032 Vintage Blvd., Suite 100 Juneau, Alaska 99801 907-465-2625 • Cell: 907-500-4060 Fax: 907-465-2690

Colorado

California

Fiona Arnold, Executive Director Colorado Office of Economic Development & International Trade 1625 Broadway, Suite 2700 Denver, CO 80202 Phone: 303-892-3840 Fax: 303-892-3848

Panorea Avdis, Director Governor’s Office of Economic Development (GO-BIZ) 1325 J Street, Suite 1800 Sacramento, CA 95811 877-345-4633

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

Select Sites Mike Lee, Economic Development Director City of Moreno Valley 14177 Frederick St. Moreno Valley, CA 92522-0805 951-413-3460 • Fax: 951-413-3478 www.moval.org mikel@moval.org

Hawaii

Luis P. Salaveria, Director Department of Business, Economic Development and Tourism No. 1 Capitol District Building 250 S. Hotel Street Honolulu, HI 96813 808-586-2355

Oregon

Chris Harder, Director Business Oregon 775 Summer Street N.E., Ste. 200 Salem, OR 97301-1280 503-986-0123 • Fax: 503-581-5115

Washington

Chris Green, Assistant Director, Office of Economic Development & Competitiveness Washington State Department of Commerce 2001 6th Ave., Suite 2600 Seattle, WA 98121 206-256-6100

CANADA Alberta

Doug Cameron, Senior Director, Investment Attraction Alberta Economic Development and Trade 3rd Floor, 639 – 5 Avenue SW Calgary, AB T2P 0M9 403-476-4581

British Columbia

Honourable Shirley Bond, Minister, Jobs, Tourism and Skills Training British Columbia Ministry of Jobs, Tourism and Skills Training P.O. Box 9071 Victoria, BC V8W 9E2 250-356-2771 • Fax: 250-356-3000

Manitoba

Select Sites

New Brunswick

Andrea Thomson, Marketing Coordinator Brampton Economic Development Office 2 Wellington Street West Brampton, ON L6Y 4R2 905-874-2649 Peoplepoweredeconomy.ca edo@brampton.ca

Honourable Cliff Cullen Minister of Growth, Enterprise and Trade Manitoba Trade & Investment Corp. The Paris Building 110 - 259 Portage Avenue Winnipeg, Manitoba R3B 3P4 204-945-2466 • Fax: 204-957-1793 Stephen Lund, CEO Opportunities NB 250 King Street Fredericton, NB E3B 9M9 506-453-5471 • Fax: 506-444-4277

Newfoundland and Labrador

Honourable Christopher Mitchelmore, Minister Newfoundland and Labrador Department of Business, Tourism, Culture and Rural Development P.O. Box 8700 Confederation Building St. John’s, NL A1B 4J6 709-729-4728 • Fax: 709-729-0654

Nova Scotia

John Ludovice, Director, Investment Attraction Nova Scotia Business Inc. World Trade & Convention Centre 1800 Argyle Street, Suite 701 Halifax, NS B3J 3N8 902-424-6650 • Fax: 902-424-5739

Northwest Territories

Honourable Wally Schumann, Minister Northwest Territories Industry, Tourism and Investment P.O. Box 1320 Yellowknife, NT X1A 2L9 867- 767-9141

Nunavut

Honourable Brad Duguid, Minister Ontario Ministry of Economic Development and Growth Hearst Block, 8th Floor 900 Bay Street Toronto, ON M7A 2E1 416-325-6900

Prince Edward Island

Cheryl Paynter, CEO Innovation PEI 94 Euston Street PO Box 910 Charlottetown, PEI C1A 7L9 902-368-6300 • 1-800-563-3734 Fax: 902-368-6301

Quebec

Denis Hvizdak, Director, Business Development Investment Quebec 600, rue de La Gauchetière Ouest bureau 1500 Montreal, QC H2Y 1N9 514-873-4664

Saskatchewan

Honourable Monica Ell-Kanayuk, Minister Nunavut Economic Development & Transportation P.O. Box 1000, Station 1500 Iqaluit, NU X0A 0H0 867-975-6000 or 877-212-6638 Fax: 867-975-6099

Ontario

Len Magyar, Development Commissioner City of Woodstock 500 Dundas Street P. O. Box 1539 Woodstock, ON N4S 0A7 519-539-2382 x 2112 Fax: 519-539-3275 www.cometothecrossroads.com lmagyar@cityofwoodstock.ca

Lorrie McGowan, Deputy Director, Investment Saskatchewan Ministry of the Economy 1000, 2103 11th Avenue Regina, SK S4P 3Z8 306-933-7921

Yukon Territory

Honourable Stacey Hassard, Minister of Economic Development Yukon Economic Development 303 Alexander Street, 1st Floor P.O. Box 2703, F-1 Whitehorse, YT Y1A 2C6 867-393-7191 • Fax: 867-393-6412

MEXICO

North American Contact: Mexican Embassy 1911 Pennsylvania Ave. N.W. Washington D.C. 20016 202-728-1600

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ADINDEXWEBDIRECTORY Advertiser

Page

ALABAMA

Opelika 68 www.OpelikaEconomicDevelopment.com lhuguley@opelika-al.gov

ARIZONA

Salt River Project www.PowerToGrowPHX.com Caryn.Sanchez@srpnet.com Karla.Moran@srpnet.com

CALIFORNIA

City of Moreno Valley Economic Development www.Moreno-Valley.ca.us/ www.moval.org mikel@moval.org

CONNECTICUT

Cheshire EDC www.CheshireCT.org JSitko@CheshireCT.org

Greater Fort Lauderdale Alliance www.gflalliance.org dcoddington@gflalliance.org Greater Osceola Partnership www.GreaterOsceola.com bmartin@greaterosceola.com

GEORGIA

Georgia Ports Authority www.GAports.com swatson@gaports.com Northwest Georgia Joint Development Authority www.NorthwestGeorgia.us keith@northwestgeorgia.us

ILLINOIS

Hoosier Energy www.HoosierSites.com Hgutzwiller@hepn.com

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Cover 3

Cover 2

INDIANA

Greater Columbus Indiana Economic Development www.ColumbusIN.org jhester@columbusin.org

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Hoosier Energy www.HoosierSites.com Hgutzwiller@hepn.com

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KENTUCKY

Commerce Lexington www.LocateInLexington.com ggreathouse@commercelexington.com Kentucky Cabinet for Economic Development www.ThinkKentucky.com Mandy.Lambert@ky.gov

Mississippi Development Authority www.mississippi.org bklauser@mississippi.org

MISSOURI

NEBRASKA

Nebraska Public Power District www.econdev.nppd.com econdev@nppd.com

NEVADA

Las Vegas Global Economic Alliance www.LVGEA.org info@lvgea.org NV Energy www.NVenergy.com/econdev www.NevadaSiteLocator.com

NEW HAMPSHIRE

City of Rochester www.ThinkRochester.Biz Karen.Pollard@RochesterNH.net

NEW JERSEY

City of Vineland www.vinelandbusiness.com sforosisky@vinelandcity.org

20, 21

National Grid www.NationalGridUS.com

NORTH CAROLINA

Winston-Salem Business, Inc. www.wsbusinessinc.com rleak@wsbusinessinc.com

OKLAHOMA

Tulsa Regional Chamber www.GrowMetroTulsa.com brienthorstenberg@tulsachamber.com

Page

TENNESSEE

Dyersburg/Dyer County Chamber of Commerce www.DyerChamber.com ahester@dyerchamber.com

TEXAS

Greater Conroe Economic Development Council www.gcedc.org welch@gcedc.org scheiner@gcedc.org Lubbock Economic Development Alliance www.LubbockEDA.org Carolyn.Rowley@lubbockeda.org

Midland Development Corporation www.MidlandTXEDC.com pwelch@midlandtxedc.com

City of Sugarland www.SugarlandEcoDev.com ecodev@sugarlandtx.gov

Tomball Economic Development Corporation www.TomballTXedc.org kviolette@tomballtxedc.org

CANADA ONTARIO

NEW YORK

Cayuga County Economic Development Agency www.CayugaEDA.org mriester@cayugaeda.org

Advertiser

City of Converse EDC www.ConverseEDC.com ksilvas@converseEdc.com

MISSISSIPPI

City of Cameron www.CameronMO.com director@CameronMO.com

FLORIDA

Cape Coral Economic Development Office www.BizCapeCoral.com EcoDev@CapeCoral.net dbrunett@capecoral.net

Advertiser

Brampton Economic Development www.PeoplePoweredEconomy.ca edo@brampton.ca County of Brant Economic Development www.InvestInBrant.ca invest@brant.ca City of Woodstock www.cometothecrossroads.com lmagyar@cityofwoodstock.ca

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

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