Area Development Q2 Issue 2024

18 Staying nimble in the face of NIMBYism

In the age of social media outrage, companies need these tangible strategies to assuage concerns about their data center projects.

68 A Brave New Shipping World

Geopolitics has gotten more volatile, and global disruptions are forcing supply chains to innovate.

Shovel Season!

Find out which state took home the gold in Area Development’s annual ranking of the top economic development projects in America.

71 Macro Effects of Microchip Investments

Don’t look now, but the CHIPS and Science act is really bringing back manufacturing jobs to the U.S.

86 Around the Horn

Guest Editor Brad Migdal conducts a group chat about the realities of getting energy to new projects.

80 What’s Going on at CFIUS?

One government agency has been flexing its muscle and scrutinizing foreign investments even harder – from one country in particular.

90 Catering to Power

The time is ripe for companies to stop relying on the power grid for their new projects and build their own power supply.

Daniel Kahneman (1934-2024),

Why guest editor Brad Migdal feels

Brad Migdal brings to the table more than 18 years of experience as an expert in corporate site selection. He specializes in working with state agencies and local municipalities and has handled projects for Fortune 1,000 companies across multiple industries, including automotive and consumer products. The Cushman & Wakefield Executive Managing Director, Total Workplace, is a frequent speaker at economic development and real estate conferences. Brad has been featured in the Wall Street Journal and Crain’s Chicago. He previously led the Industrial Site Selection and Business Incentives at Transwestern and has worked with Newmark, PwC, and Deloitte. Brad is also an editorial advisor for Area Development Magazine.

EDITORS NOTE

A Final Note

For almost 30 years, I have proudly served as Editor of Area Development and, I hope, have provided you, the reader, with information to help in making your company’s site and facility planning decisions. Of course, there have been changes in the way the information is delivered, with our website adding to what’s included in the print magazine and its many supplements focused on varied industrial sectors, logistics, workforce, and domestic and foreign locations.

Additionally, many factors have changed the field of economic development over the years, including deregulation of the utility industry, the growth of new technologically advanced industrial sectors, sustainability mandates, changing demographics, delivery methods of workforce training, and much more. Nonetheless, our Corporate and Consultants surveys of decision-makers’ plans and site selection priorities — now in their 38th and 20th years, respectively — have remained a highly valued tool for economic development agencies vying for new business to grow their economies.

At this juncture, the time has come for me to segue into retirement with a more limited role and turn over the reins to our new Editor, Andy Greiner, who brings a wealth of journalistic experience and will continue to provide you with the content you expect from Area Development.

Finally, a thanks to all of our readers and to the many contributors to Area Development over the years. It’s been my privilege to serve you while working with our talented staff.

Geraldine Gambale Editor (1996 – 2023)

AREA DEVELOPMENT

Publisher Dennis J. Shea dshea@areadevelopment.com

Sydney Russell, Publisher 1965-1986

Business/Finance Assistant

Barbara Olsen (ext. 225) olsen@areadevelopment.com finance@areadevelopment.com

Advertising/National Accounts advertising@areadevelopment.com

Editors Geraldine Gambale editor@areadevelopment.com Andy Greiner editor@areadevelopment.com Staff and Contributing Editors

Mark Crawford Dan Emerson Steve Kaelble

Mark Schantz

In-House Art & Design Circulation/Subscriptions circ@areadevelopment.com

Production Manager Jessica Whitebook jessica@areadevelopment.com

Business Development Director Matthew Shea (ext. 231) mshea@areadevelopment.com

Media Director Justin Shea (ext. 220) jshea@areadevelopment.com

Web Designer Carmela Emerson

Scott Kupperman Founder KUPPERMAN LOCATION SOLUTIONS

Eric Stavriotis Vice Chairman, Advisory & Transaction Services CBRE

Brian Corde Managing Partner ATLAS INSIGHT

Amy Gerber Executive Managing Director, Business Incentives Practice CUSHMAN & WAKEFIELD

Alexandra Segers General Manager TOCHI ADVISORS

Dennis Cuneo Director, Site Selection Services WALBRIDGE

Courtney Dunbar Site Selection & Economic Development Leader BURNS & MCDONNELL

Stephen Gray President & CEO GRAY, INC.

Bradley Migdal Executive Managing Director, Business Incentives Practice CUSHMAN & WAKEFIELD, INC.

Brian Gallagher Vice President, Corporate Development GRAYCOR

Marc Beauchamp President SCI GLOBAL

David Hickey Managing Director HICKEY & ASSOCIATES

Chris Schwinden Partner SITE SELECTION GROUP

Chris Volney Managing Director, Americas Consulting CBRE

Matthew R. Powers Partner ONPACE PARTNERS

Scott J. Ziance Partner and Economic Incentives Practice Leader VORYS, SATER, SEYMOUR AND PEASE LLP

Chris Chmura, Ph.D. CEO & Founder CHMURA ECONOMICS & ANALYTICS

Alan Reeves Senior Managing Director NEWMARK

Lauren Berry Senior Manager, Location Analysis and Incentives MAXIS ADVISORS

Courtland Robinson Director of Business Development BRASFIELD & GORRIE

Dianne Jones Managing Director, Business and Economic Incentives JLL

Joe Dunlap Managing Director, Supply Chain Advisory CBRE

‘Will

Serve’ Letters and Right-of-Way Acquisitions in Site Selection

Exploring the nuances of utility commitments and legal access

By David MacNamara, Director, Site Selection and Product Development, KPMG

When it comes to expanding facilities or breaking ground on new sites, there are a couple of hurdles in the utility realm that often get overlooked, yet they’re critical to the success of these projects. Addressing the nitty-gritty of ‘will serve’ letters and rightof-way acquisitions, two aspects that, if navigated wisely, can significantly streamline the process of opening new facilities.

The Ins and Outs of ‘Will Serve’ Letters

‘Will serve’ letters are more than just a formality; they’re a utility’s commitment to deliver the essential services that project decisions hinge on. They are a green light from utility companies, ensuring that water, wastewater, electricity, gas, and broadband will be there when a project needs them, enabling operations to stand-up smoothly.

Getting these letters inhand early may save a lot of headaches down the line. It is a roadmap that not only guides the utility landscape, but also assures investors and stakeholders that each utility company has its ducks in a row. The key is mitigating risks and making sure nobody is caught off guard by utility shortages or delays that may jeopardize project timelines and budgets.

The Road to Right-ofWay Acquisitions

Regarding right-of-way acquisitions, getting the legal go-ahead to use land for installing infrastructure like pipelines, cables, or access roads that are vital for a new facility. It is about carving out a path, quite literally, to ensure that operations have the lifelines they need.

It’s not just about the legal right; it’s about mitigating risk, aligning development goals and knitting strong relationships with the community. Successfully navigating these acquisitions enables the utility to execute the physical groundwork with a key timeline risk preempted, keeping project timeline on-track and fostering goodwill with the local stakeholders.

Tips from the Trenches

• Early Bird Gets the Wor m: Dive into the ‘will serve’ and right-of-way processes at the outset. Early engagement can unveil potential snags, giving ample time to tackle them head-on.

• Teamwork Makes the Dream Work: Foster a spirit of collaboration. Engaging with utility providers, local governments, and landowners early on can smooth out negotiations and speed up the process.

• Knowledge is Power: Leverage the expertise of legal and technical subject matter experts who know the ins and outs of these processes. Their know-how can help sidestep pitfalls and streamline the acquisition journey.

• Clear as a Bell: Keep the lines of communication open and transparent. Straight talk with all stakeholders can dispel misunderstandings and build a foundation of trust and cooperation. Bad news never gets better with time!

• Have a Plan B: Always have a contingency plan. If utility or land-use challenges pop up, be ready with alternatives, ensuring these hiccups don’t derail the project timeline or budget.

While it may seem like ‘will serve’ letters and rightof-way acquisitions are just another item on the project checklist, but they are far

more integral than that. They are crucial steps that pave the way for the successful launch of new facilities. By tackling these head-on with a strategic and proactive approach, the state and community can ensure that facility expansion projects are not just successful, but also set a benchmark for operational excellence and community partnership.

© 2024 KPMG LLP, a Delaware limited liability partnership and a member fir m of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.

Heats Up in Virginia Cold Storage Industry

Virginia provides its more than 200 food and beverage processing companies with ample cold storage options.

Whether it’s getting fresh vegetables from farm to table or ensuring vials of essential medicines make it safely from the lab to the hospital, Virginia serves as a backbone of the crucial East Coast supply chain, ensuring that important elements of everyday life get to where they need to be. The expanding ecosystem of cold storage facilities in Virginia is a critical piece of that puzzle.

Virginia’s central East Coast location enables companies to efficiently access major economic hubs east of the Mississippi River and across the continental United States. Located within a one-day drive of nearly half of U.S. consumers, Virginia offers companies a single gateway into critical customer markets along the affluent Northeast corridor, across the high-growth Southeast, and throughout the Midwest. In high-growth manufacturing sectors like food and beverage processing and biopharmaceuticals, demand for cold storage providers to ensure products get from Point A to Point B safely — and at the proper temperature — is skyrocketing.

“Building a fertile ecosystem of state-of-the-art distribution establishments like cold storage facilities is crucial to ensuring the success of the supply chain in Virginia and the world,” said Eric Jehu, vice president of logistics at the Virginia Economic Development Partnership. “Virginia is rising to the occasion by recognizing the needs of these massive manufacturers and making sure the temperature-controlled distribution elements are ready to take those products where they need to go.”

Virginia offers a diverse ecosystem of partners and suppliers for food and beverage processors, including dozens of packagers and bottlers, more than 160 warehousing and distribution establishments, and 43,000

Strategic Mid-Atlantic Location

Located at the center of the U.S. East Coast and within a one-day drive of 47% of the U.S. population, Virginia offers an ideal location to serve East Coast customers or to provide a single gateway to the U.S. market.

farms. More than 200 food and beverage processing companies have chosen to locate or expand in Virginia over the last decade, creating more than 7,900 new jobs and making capital investments totaling $3.4 billion. Virginia’s life sciences sector has also gained significant momentum, with 62 life sciences industry projects announced in just the past five years. Those projects amounted to a $2.5 billion investment in the biopharmaceutical industry, which has acute demand for reliable cold storage.

FreezPak Logistics, LLC, recently announced a $77.5 million investment in the City of Suffolk to construct a 245,000-square-foot cold storage facility to serve the Mid-Atlantic region via The Port of Virginia’s Hampton Roads terminals. Across the Commonwealth in the Northern Shenandoah Valley, WCS Logistics is investing $27 million in Frederick County to build a new 83,000-square-foot cold storage facility with the capacity for over

13,000 pallets to meet increasing demand. There are currently more than 10,000 jobs in the refrigerated trucking and warehousing industry in Virginia. It’s a $1 billion industry that’s continuing to grow. Devoting resources to expand this ecosystem, Jehu says, is part of what makes Virginia a top state for location, infrastructure, and business climate.

“Virginia is responding to manufacturer demand by providing ample cold storage options for rapidly expanding industries,” Jehu said. “This commitment to the manufacturing sector is establishing Virginia as a hub for state-of-the-art, temperature-controlled products. The Commonwealth is actively ensuring that suppliers have every element they need to get their products to market and take their companies to the next level.”

This article was paid for and written by the Virginia Economic Development Partnership and approved by Area Development.

Keeping up with supply chain demand

Today, many high-growth manufacturing sectors are demanding cold storage options. And Virginia is supplying them with just what they need — an expanding ecosystem of temperature-controlled facilities that help ensure that important products, like medications, reach their destination safely and efficiently.

Find your business advantage at VEDP.org

Is

this Community Approach

the Blueprint for Sustainable Industrial Development?

Industrial designers are exploring the transformative potential of landscape architecture to harmonize industrial development with environmental sustainability and community well-being.

By Gregg Healy, Executive Vice President and Head of Industrial Services, North America, Savills

Industrial spaces are more than just functional units, and their designers can aspire to create living ecosystems where green roofs and vertical gardens soften the stark lines of manufacturing plants, solar arrays stretch across warehouse rooftops, and water reclamation systems weave through the premises like lifelines.

The intersection of industrial growth with environmental sustainability is guiding a pivotal shift in the national discourse about industrial building design. The charge is being led by visionaries in the industry like Summers Murphy & Partners (SMP) Landscape Architecture, who have been reimagining how industrial spaces can be both efficient and ecologically harmonious to the communities in which they are located.

“By prioritizing innovative landscape design, we present a forward-looking approach to industrial development that promises a sustainable future across

America,” said Pat Murphy, a founder of SMP with over 40 years of global experience of designing landscapes for residential, office, retail, and industrial spaces to blend with their distinct environments and create a sense of space, which makes them more desired by communities.

The Potential of Innovative Landscape Design

At the core of this transformative vision is the belief that landscape architecture can redefine industrial sites, aligning them with both sustainability and community health objectives. Following this ethos of innovative and responsive design, the objective is for industrial environments to resonate with their natural landscapes — whether in a new development or through redevelopment.

Designers are leveraging native plantings to enhance local ecosystems and biodiversity, establishing green buffers to mitigate the urban heat island effect, and implementing stormwater management practices to protect waterways from industrial pollutants. From incorporating drought-tolerant vegetation in arid areas to designing rain gardens in regions prone to precipitation, the goal is to foster industrial

landscapes that are both resilient and self-sustaining. Not only do these changes offer environmental benefits but also healthier, more attractive workplaces, improving life quality for employees and the broader community.

Envisioning Solar integration and Energy Efficiency

Landscape elements aren’t the only integrations. As part of a holistic site design philosophy, designers envision integrated renewable energy sources within industrial landscapes underscoring a commitment to sustainability. They’re using solar panels and skylights so that industrial facilities can reduce their carbon footprint while bolstering national energy resilience. Green technologies

“By prioritizing innovative landscape design, we present a forward-looking approach to industrial development that promises a sustainable future across America,” said Pat Murphy

can be both aesthetically and functionally woven into landscape designs, offering dual benefits.

Cultivating Spaces for Community Engagement

Industrial developments have the ability to forge deeper connections with their communities. The approach to landscape architecture prioritizes the creation of spaces that are not just functional but inviting and interactive for the public. By integrating walking paths, public parks, amphitheaters, and seeking community feedback in the design process, industrial sites can transcend their traditional roles, becoming valued parts of the communities they serve.

Charting a Path Forward

The aforementioned principles and strategies for sustainable industrial development represent a roadmap replicable across both the United Stated and beyond. Already, many parts of Europe and the Middle East are embracing these elements when designing new large mixedused projects.

This blueprint invites stakeholders from various sectors to champion innovative solutions and practices.

Resiliency: The Case for Fortifying Business against Climate Change

The new frontier in site selection for companies has everything to do with keeping things running during increasingly wild storms and weather patterns.

By Jose Boceiro, Director of Site Selection Incentives and Advisory at Kroll

If they’re not already, site selection teams at Fortune 500 companies should be recalibrating their operational strategies toward sustainable and resilient infrastructure.

The traditional metrics guiding site selection—cost efficiency, workforce availability, and basic utility access—are rapidly being overshadowed by the urgent need for resilience against climate-induced extremities and a seamless integration of renewable energy resources. This shift transcends mere environmental stewardship, and now stands as a strategic necessity to safeguard operational continuity and long-term viability in an increasingly volatile climate scenario.

Climate change and energy volatility are immediate challenges disrupting operations and supply chains with alarming regularity. This new reality necessitates a paradigm shift towards operational autonomy, demanding direct access to renewable energy sources to ensure that business operations can withstand grid instabilities and external disruptions.

This evolution in site selection strategy is not merely about adopting green practices but about fortifying businesses against the unpredictability of tomorrow’s energy landscape.

For those navigating this complex terrain, the integration of sustainable practices into the core business strategy is no longer optional but essential. It entails prioritizing sites not just with the potential for, but with existing access to, renewable energy infrastructures such as solar arrays, wind farms, and microgrids. These considerations must lead the decision-making process, guiding the evaluation of potential sites for expansion or new ventures.

The drive toward embedding sustainable and resilient infrastructure in site selection mirrors broader shifts within the business and environmental landscapes. It is a proactive response to the recognized vulnerabilities of traditional electric grids and the strategic imperatives of renewable energy investments. This approach not only addresses immediate operational needs but also strategically positions companies considering regulatory shifts and growing public expectations for corporate sustainability.

The path to integrating renewable energy and resilient infrastructure into site selection is challenging. Diverse regulatory frameworks and community reactions

present significant hurdles to renewable energy projects across different regions. Despite these challenges, the imperative for resilience and sustainability is reshaping the criteria for site selection, compelling a more holistic view of corporate facility establishment and maintenance in today’s world.

Looking ahead, the integration of renewable energy and resilient infrastructure into site selection practices signifies not just a trend but a fundamental shift in corporate operational philosophy. For C-suite executives and site selection teams, this shift demands a strategic embrace of complexity, informed by a deep understanding of both current energy landscapes and future trends in renewable infrastructure.

In essence, the transition toward renewable energy and resilient infrastructure represents a forward-looking strategy that equips Fortune 500 companies to navigate an uncertain global business environment successfully.

The expertise and insight of specialists in renewable energy and site selection are increasingly vital, offering the knowledge and perspective needed to steer companies towards a sustainable and resilient future. This journey, though complex, underscores a commitment to operational excellence and environmental stewardship, positioning these companies at the forefront of global business leadership in the coming decades.

MICHIGAN

PURE OPPORTUNITY ®

As a top state for biomedical engineering graduates, Michigan is pioneering the next generation of medicine with advancements in everything from vaccine manufacturing to genomic research. Discover the world-class life sciences talent that make it all possible and seize your opportunity at MICHIGANBUSINESS.ORG

How to Master the Maze of Federal Funding in Manufacturing Site Selection

What should you consider while working through the complexities of federal incentives and timelines to optimize your facility planning and execution?

By Shannon O’Hare, Executive Managing

Director, Total Workplace, Cushman & Wakefield

Getting through the maze of federal funding and incentives in the world of manufacturing site selection and facility planning is akin to a high-stakes chess game. It’s not just about the allure of the funds; it’s the intricate dance of aligning these opportunities with your project’s timelines and strategic goals. Here’s what this means for you as an executive steering the ship.

Fierce Competition

Finding federal funding is more than just a financial strategy, it’s a test of your project’s flexibility and endurance. Imagine you’ve got your eyes on a juicy grant that seems perfect for slashing your project costs. But here’s the catch — so does everyone else in your industry. The competition is fierce, and the funds are limited. This reality ushers in a period of uncertainty, where you’re left juggling your project plans while waiting on the whims of funding bodies.

And it’s not just the wait that’s testing your patience; it’s the unpredictability of it all. Federal funding comes with its own set of timelines, often misaligned with your project schedules. One day you’re on track, and the next, you’re stuck waiting for that green light from the feds. It’s like being in a holding pattern during a flight, circling the airport, waiting for

permission to land.

But let’s not forget the elephant in the room — the ever-changing political landscape. With each election cycle comes a potential shift in priorities and policies, impacting the availability and structure of these incentives. Today’s funding hero could be tomorrow’s budget cut, leaving you to navigate the turbulent waters of policy changes and their impacts on your project’s fate.

Making Calculated Moves

So, what’s an executive to do amidst this chaos? It’s all about strategic agility. Sure, chase that federal funding if it aligns with your goals, but don’t put all your eggs in one basket. Develop a robust plan that allows for quick pivots and adjustments, keeping your project

viable even when external conditions shift. This means having a clear understanding of your project’s scope, the potential impacts of funding delays, and the broader economic and political context.

Think of yourself as a strategist in this complex game. Your moves need to

Today’s funding hero could be tomorrow’s budget cut, leaving you to navigate the turbulent waters of policy changes and their impacts on your project’s fate.

be calculated, with a keen eye on both the immediate gains and the long-term implications of your funding decisions. This includes considering how these financial plays affect your operational timelines, budget, and overall project vision.

In the end, while federal funding and incentives can provide significant financial relief, they come with a labyrinth of challenges and considerations. The key to success lies in your ability to navigate this landscape with a blend of optimism, realism, and strategic foresight. By staying adaptable, informed, and proactive, you can turn these potential hurdles into steppingstones, leading your project to successful completion and longterm prosperity.

As an executive, your role is to steer your project through these turbulent waters, ensuring that your site selection and facility planning efforts are not just about capturing immediate financial advantages but are also aligned with the enduring strategic objectives of your manufacturing enterprise.

Maryland has a thriving biotech ecosystem that offers the funding, collaboration and resources we need to help us thrive.

Elaine Haynes President and CEO

Kalocyte

Q&A with Tech Hubs Director Eric Smith

Exploring opportunities for manufacturing growth through the Federal Tech Hubs Program with insights from director Eric Smith on collaboration and regional innovation.

By Area Development Research Desk

Area Development Magazine is fortunate to have an exclusive interview with Eric Smith, the director of the Federal Tech Hubs Program at the Economic Development Administration. Our conversation sheds light on the transformative potential of this program for the U.S. manufacturing landscape. As we explore the strategic initiatives designed to bolster regional economies through technological innovation, our readers—especially manufacturing executives—will find critical insights into how they can leverage these opportunities for growth and competitive advantage.

What specific opportunities does the Federal Tech Hubs Program offer to manufacturing executives looking to innovate and expand?

Eric Smith: The program is explicitly designed to include the private sector in every consortium, meaning there’s a direct pathway for manufacturers to engage with cutting-edge technologies and markets. About a third of our consortium members are from the private sector, emphasizing the significant role industry plays in these hubs. By participating, manufacturers can access new technologies, collaborate on development, and integrate innovations into their processes, driving both regional and industrial growth.

How does the Tech Hubs Program support regions in developing a competitive edge in manufacturing and technology?

Eric Smith: Each designated hub focuses on leveraging its unique regional assets to develop specific technology sectors—from autonomous systems to biomanufacturing. This targeted approach not only fosters specialized expertise but also builds robust supply chains that are regionally integrated. For manufacturers, this means improved supply chain resilience, access to specialized talent, and opportunities to lead in market segments critical to national security and economic competitiveness. By investing in these hubs, we’re positioning regions to attract further private and public investment, enhancing their stature as industry leaders globally.

What types of technology and industries do these hubs focus on?

Eric Smith: The designated hubs cover diverse areas such as autonomous systems, quantum technology, biomanufacturing, energy transition, and more. We’re aiming to expand this portfolio in future iterations of the program, ensuring that each hub not only contributes to economic competitiveness but also aligns with national security interests.

How can manufacturing executives gauge the program’s impact on their long-term planning?

Eric Smith: Manufacturing executives should look at the program as an opportunity to engage with tech hubs that align with their technological focus and regional presence. By joining these consortia, they can influence and benefit from the hubs’ growth trajectories. Our funding model and consortium structure are designed to facilitate substantial economic activity and investment, promising significant developments for participating businesses.

What challenges has the program encountered, and how are you addressing them?

Eric Smith: Balancing the selection of hubs, given their diver-

sity and potential, is challenging. We address this by ensuring all designated hubs receive benefits, even if they don’t receive direct funding in a particular round. This holistic approach helps mitigate challenges and ensures all participants have the potential to realize growth.

Looking ahead, what are your goals for these hubs in the next five to ten years?

Eric Smith: Our vision is to see these hubs become synonymous with their respective technologies, much like Silicon Valley is with tech innovation. We aim for these hubs to drive significant economic activity, creating high-quality jobs and attracting further investment, thus solidifying their status as centers of industry and innovation.

Any final thoughts for our manufacturing executive readers?

Eric Smith: I encourage all manufacturing executives to explore potential engagements with the Tech Hubs. Whether you’re already involved or considering involvement, these hubs offer a platform for substantial growth and networking. As the program expands, the opportunities for transformative impact will only increase, making now an ideal time to get involved.

How to Overcome NIMBYism in Data Centers

A guide to turning community opposition into constructive criticism and assuaging fears about data center development.

By Ford Graham, Senior Vice President, Infrastructure and Economic Development and Christopher D. Lloyd, Senior Vice President and Director, Infrastructure and Economic Development, McGuireWoods Consulting

It has been a wild ride in economic development these last few years. In the United States alone, we saw the COVID doldrums of months of nothingness give way to the rush to expand our nation’s warehouse inventory to ensure redundancy in our supply chain. We saw an uptick in onshoring and nearshoring that helped enable diversity of suppliers. And that growth has now been eclipsed by the explosion of megaprojects over the last two years. Fueled by the CHIPS and Science Act and the Inflation Reduction Act, and the administration’s push to lead the world in electric-vehicle-related technology, massive multibillion dollar projects with

hundreds of accompanying jobs became the new norm for many communities.

Unfortunately, in many cases, the companies and their economic development shepherds sprinted eyesclosed into the quagmire of NIMBYism.

NIMBYism, aka Not in My Backyard syndrome, is not new. It is an age-old issue of neighboring property owners/renters wanting things to stay as they are, often paired with a rational concern about the unknown ramifications of a new industrial neighbor.

Unfortunately, our general connectivity to social media and a growing distrust in institutions (federal, local, or

Louisiana is at the cusp of a growing technology sector, which has a direct impact of $5.3 billion on its economy. Cleco Power’s resilient, reliable and affordable power grid has available capacity at six development-ready sites across the state, with a capacity range of 100MW to 450MW. Additionally, Cleco’s Dolet Hills Solar Facility will have 240MW of green, renewable power available in 2027. Cleco’s service territory is ideal for data centers looking for sites with power redundancy, water supply and fiber availability. Through Louisiana’s $1.4 billion broadband federal funding, every community or technical college in the state has access to fiber optic training programs.

SPOTLIGHT ON SITES

Progress Point and Acadiana Regional Airport

This 45-acre site is located in Iberia Parish, just off of Highway 90 and five miles from the Acadiana Regional Airport in the Lafayette metro region, which also offers seven additional sites varying from 50 to 200 acres.

Beauregard Airport Industrial Site

This 1,188-acre site is a shovel-ready certified site located in Cleco’s Western Louisiana region. It is adjacent to the Beauregard Regional Airport and minutes away from three major highways.

otherwise), has led to an irrational proliferation of misinformation and conspiracy theories about economic development projects with proverbial monsters behind every door. As a result, traditional NIMBYism has morphed into BANANA’s (Build Absolutely Nothing Anywhere Near Anyone) and CAVEs (Citizens Against Virtually Everything), and we now see that a small vocal group of media savvy activists can influence political decision-making.

While these challenges are proliferating for projects of all sizes, the proliferation of data centers, pushed by the word’s insatiable consumption of ever-moresophisticated digital media, ever-more-expansive cloud storage requirements, and the growth of AI, has drawn the particular ire of many community opponents. Although there should always be room for a healthy debate over the value of a proposed project’s job creation and investment, the prevailing rhetoric is often less about facts and data, and more akin to who can yell the loudest.

Despite the perceived doom and gloom, there are strategies that local officials, economic developers, and their data-center projects can employ to deal respectfully with these community concerns. Although not a panacea, taking a page out of a traditional, grass roots political campaign plan and implementing it locally to educate and inform about the value that data centers can bring can help smooth the community approval process. Moreover, the concept can be distilled into two core principles: 1) implement a concerted, strategic data-driven effort and 2) start yesterday.

the preferred use. Are jobs a higher priority than capital investment? How do neighbors feel about traffic impacts?

Get to Know the Community

Do your homework on the movers and shakers in the community – who influences whom, which organizations are respected and trusted, and find champions for development.

Gauge True Community Sentiment

Listening to the community is so vital. Often, project developers are so eager to tell their story that they launch immediately into a pitch without seeking input first. Seek out opinions from a variety of stakeholders and work to incorporate reasonable suggestions into the project.

Combat “Dis-” and “Mis-” with Correct Information

It is summarily important to have a thoroughly developed plan in place to roll out the nuances of the project to the public as soon as possible. Key items in this strategy include the development of a website and social media landing pages that provide answers to common questions, arm elected officials with those same questions and answers so they can more thoroughly respond when asked by constituents, host information sessions that are well publicized and open to the public, and participate, in-person, in all scheduled public hearings related to the project and its development.

Valuable, job-creating, tax-generating economic development projects that would otherwise fit perfectly into the fabric of a community, can be delayed or derailed through the efforts of a small but vocal assemblage of misinformed (or misaligned) citizen activists.

Clearly Define the Project

Nothing breeds questions like a changing project scope. Before going public with a project, come to internal agreement on its scope – the size, timeline, potential impacts, and other aspects of the project so the message doesn’t continue to shift thereby causing suspicion.

Highlight the Alternatives

Prepare a comparative pros and cons analysis of data centers vs potential alternative uses for the site and share that information with the public. Review what could also be developed at the site – presuming that development will happen – and go to the community and ask what would be

The boom in megaprojects and the proliferation of data centers in both urban and rural parts of America has led to a surge in NIMBYism. Valuable, job-creating, taxgenerating economic development projects that would otherwise fit perfectly into the fabric of a community, can be delayed or derailed through the efforts of a small but vocal assemblage of misinformed (or misaligned) citizen activists. Economic developers and companies can overcome (or at the very least diminish) negative rhetoric and misinformation by developing and implementing a strategic public engagement plan in the early stages of a project’s life cycle. The larger the scope and impact of the potential project, the greater the need to muster the appropriate resources to ensure that the public is properly informed and engaged.

Five Tips to Navigating the Changing Landscape of Life Science Real Estate

In order to navigate the evolving real estate environment, life science companies can reduce their risks with data-driven decision-making and collaboration with developers, policymakers, utility providers, and their industry peers.

By Deborah Boucher, Vice Chair, Cushman & Wakefield

Big Pharma/Biotech has close to $1.5B in dry-powder-cash to burn and in the first 15 weeks of 2024, no less than 41 VC-backed fundings of $50M or more have closed; however, there is a new layer of caution (some would argue it’s a return to proper due diligence attitudes) in the post-pandemic world. Stakeholders in life science real estate face myriad challenges, each intertwined and demanding strategic foresight and adaptation.

By understanding the interconnected nature of market conditions, regulatory shifts, and technological trends, stakeholders can position themselves for success.

that have established infrastructure, a seller/ landlord with deep proof of delivery success in the specific build-type being contemplated, and a municipality with a proven track record of new-project collaboration.

2. The Return of Project Due Diligence

The imperative for life science companies is clear: they must navigate market complexities including the surging availabilities of subleases and the ebb and flow of construction pipelines with vigilance and agility. By understanding the interconnected nature of market conditions, regulatory shifts, and technological trends, stakeholders can position themselves for success. Ultimately, strategic recalibration is not just about reacting to immediate changes but about anticipating and preparing for the future. It’s about embracing change, leveraging opportunities, and charting a course forward that ensures resilience and sustainability in the ever-evolving landscape of life science real estate. Here are five areas to keep in mind while navigating a dynamic landscape.

1. Risk Mitigation Amidst Uncertainty

As high interest rates cast shadows over capital-intensive endeavors, navigating risk becomes paramount. The uncertainty surrounding future revenue streams amplifies the need for meticulous planning and risk assessment at every juncture of decision-making. Nearly all users of life science space look to reduce design and construction risk by seeking out projects

Amidst market fluctuations, returning to fundamentals emerges as a guiding principle. Datadriven decision-making, historically entrenched in the life science sector, gains renewed significance. While it appears that the investor money spigot has turned on again, there is increase scrutiny of what invested funds are being used for. In general, investment to move a therapy through the approval pipeline are more important than making leasehold improvements to an asset that the landlord owns (however, sometimes the latter is required for the former!) Clear articulation of specifications, infrastructure readiness, and early coordination with utility providers can help prevent unexpected delays and increase in cost. Adaptive incentive structures bolster resilience against market volatility.

3. Spotlight on Emerging Trends

We are poised to see incredible advances and value creation in GLP-1 (among other modalities) treatments of obesity, Alzheimer’s, and oncology indications. Developers of real estate and occupiers of those facilities should also be prepared to see technology (particularly from AI, automation, and robotics) advances that impact the footprint of their facilities, impact the amount and types of utilities needed to operate the facilities, and even change the parking

NEW JERSEY HAS SPACE FOR BIG IDEAS.

Explore the dynamic world of life sciences in New Jersey. Our State is committed to fueling innovation and is home to top-notch facilities like the Northeast Science and Technology (NEST) Center and ample, ready-to-use lab spaces. With the highest concentration of scientists and engineers in the nation and attractive economic incentives, New Jersey is where groundbreaking discoveries happen. Join us in shaping the future of life sciences.

Life Sciences Are

With its strong educational and workforce development programs, Kansas continues to draw life sciences companies.

ansas has a well-earned reputation as the epicenter of the Animal Health Corridor, the single largest concentration of animal health interests in the world. It’s home to hundreds of companies that research and produce veterinary pharmaceuticals, specialized food for livestock and pets, and more.

Yet Kansas’ success in animal health is just one of its outstanding bioscience accomplishments.

Companies in Kansas specialize in a wide range of biotech and life sciences areas such as medical device manufacturing, pharmaceuticals, liquid biopsy, contract research, consulting, and bioanalysis services. These exceptional opportunities draw more professionals to Kansas, where they develop cutting-edge technologies and treatments that help people, animals, and other living things.

“Investments by so many innovative businesses in Kansas are a testament to my administration’s success in creating a pro-business economy,” Governor Laura Kelly said. “The business growth we’re seeing proves Kansas is a natural fit for biotech and life sciences in particular.”

Companies recognizing Kansas’ advantages that have made investments across the state include Merck Animal Health, with a $100 million facility expansion/enhancement of its U.S. manufacturing site in De Soto; Pfizer’s manufacturing facility in McPherson, a major supplier of sterile injectables used in hospitals globally; Eurofins Viracor, a global leader in clinical diagnostic services, with a 110,000-square-foot, state-of-the-ar t facility in Lenexa; and KCAS Bioanalytical & Biomarker Services, which chose to expand in Kansas with a new, state-of-the-art, 70,000-square-foot bioanalytical facility in Olathe — now among the largest of its kind in the nation.

Earlier this month, Governor Kelly attended the groundbreaking of the $302 million Wichita Biomedical Campus, a joint venture between Wichita State University, the University of Kansas, and WSU Tech that will bring 3,000 students, 200 faculty and staff, and 1,600 related jobs to Wichita

tion, works to attract and retain talent and companies, and grow funding to further improve the business and research climate.

Education/Workforce Development

Kansas’ strong educational system helps fuel success in biotech and life sciences. The University of Kansas has a high-profile drug discovery and development enterprise. The state also boasts historical agricultural leadership at Kansas State University, with Manhattan serving as home to the USDA’s National Bio and Agro-Defense Facility.

The University of Kansas and Kansas State University both have dedicated incubators in KU Innovation Park and K-State Innovation Campus, built to serve the biosciences and additional industries.

Business also is booming in the Kansas City area, a region that’s a global leader in human and animal health. Bionexus, a nonprofit supporting Kansas City-area biosciences, helps convert emerging technologies from concept to reality. BioKansas, another nonprofit and partner of the Biotechnology Innovation Organiza-

The Kansas Department of Commerce and local economic development forces are fostering a strong overall business climate that’s focused on education, technological innovation, and workforce development, which are needed to grow and future-proof the Kansas economy. It’s working in an unprecedented way, with Kansas recently collecting two Governor’s Cups for the most economic development investment per capita of any state in the nation, and four straight Gold Shovels for excellence in attracting high-value investment projects creating a significant number of new jobs, among other national honors.

And Kansas isn’t slowing down. Rather than just keeping up in a rapidly changing world, Kansas has charged to the front with success in biotech/life sciences and beyond.

To learn more about the exceptional assets Kansas has to offer your company, please visit kansascommerce.gov

This article was paid for and written by the Kansas Department of Commerce and approved by Area Development.

ratio expectations of a building. Stakeholders will be focused on ensuring R&D and production facilities don’t become obsolete and can produce as much revenue as possible.

4. Diversification and Adaptation

It is vital that life science companies also partner with universities and community colleges to ensure that the workforce they need is being developed.

The evolving landscape demands flexibility and diversification. Developers, once singularly focused on bio manufacturing, now embrace a broader spectrum of industries, from clean tech to advanced manufacturing. This pivot underscores the importance of building flexibility and exit options into the challenging endeavor that is purpose-built life science facility development. Buildings are typically intended to last well over 50 years, yet life science real estate preferences and use are constantly evolving. Owners of life science real estate must be prepared for a facility future that can’t even be imagined today!

5. Collaborative Community Engagement

Collaboration emerges as a linchpin for success. Engaging with developers, policymakers, utility providers, and industry peers fosters synergistic solutions. As the competition for talent remains ever pressing, it is vital that life science companies also partner with universities and community colleges to ensure that the workforce they need is being developed. Companies that are competitors at the pharmacy need to become partners in the local communities they jointly reside in. Sophisticated stakeholders know that when it comes to creating vibrant communities that their employees love and that attract inbound talent to the region, they must work together with their competitors — to some extent — to collectively address challenges and fortify the industry’s resilience amidst uncertainty.

Expanding at the Speed of Trust

With its supportive economic development policies, strong infrastructure, talented workforce, and commitment to sustainability, Ohio has become a hub for next-generation biotechnology as well as EVs and other advanced manufacturing.

Amgen’s recent expansion in Ohio has marked a significant milestone in the company’s history due to the strategic selection of Ohio for its newest manufacturing facility and the specific attributes and achievements associated with this state-of-the-art site. The facility, located in New Albany just northeast of Columbus, is a significant commitment by Amgen, featuring an investment of $365 million and employing 400 people in high-skill roles. This initiative is part of a broader strategy to enhance the company’s capacity to produce innovative biologic medicines, specifically targeting a range of serious illnesses.

This Ohio facility stands out for implementing Amgen’s next-generation biomanufacturing technologies, designed to be more environmentally friendly and efficient than traditional biological drug production methods. Using these advanced technologies means the facility is smaller and more flexible while reducing energy and water usage by 75% and 80%, respectively, compared to conventional manufacturing setups. This aligns with Amgen’s commitment to sustainability and its goal of achieving carbon neutrality by 2027.

Amgen isn’t alone with its focus on sustainability. As part of its goal of carbon neutrality for all products and corporate activities by 2050, Honda has a vision to make batteryelectric and fuel-cell electric vehicles represent 100% of its vehicle sales by 2040. Even as Honda accelerates preparation for EV production, the company plans to sustain current internal combustion engine (ICE) and hybrid-electric vehicle production to continue to meet anticipated strong customer demand. The sustained suc-

cess of ICE and hybrid-electric vehicle sales will also support the required investment in the electrified future.

For LG Energy Solution and Honda, it was critical that they had a partner they could trust to help them find the right site with the utility capabilities they needed so they could meet their stated timelines. JobsOhio worked quickly to identify the site in Fayette County, Ohio, and with Honda and their jointventure partner LG Energy Solution to build an economic development project that allowed the partnership to move at the speed they needed to meet Honda’s bold 2050 vision. As a result, Honda and LG Energy Solution committed to a $3.5 billion investment to build Honda’s first North American battery plant that will employ 3,500 Ohioans. As part of the plan, Honda is also adding 327 new jobs at its existing Ohio facilities and investing $700 million to retool those facilities for its electric future.

industry and economic collaboration. Working together at the speed of trust, Amgen successfully opened its Ohio location in record time. “We brought this plant from groundbreaking to licensure in just under 26 months, making it the most rapid site development in our company’s 45year history,” said Robert A. Bradway, Chairman and Chief Executive Officer at Amgen.

Ohio’s talent pool, enriched by numerous universities and technical institutions, provides a steady stream of graduates trained in the high-demand fields of biotechnology, pharmaceuticals, advanced manufacturing, engineering, and technicians.

Overall, Amgen and Honda’s expansion into Ohio reflects the companies’ innovative edge and commitment to patient care and new products and showcases the successful interplay between corporate foresight and state-level economic development strategies. These projects stand as a testament to the power of strategic site selection and the benefits of accessing a skilled and educated workforce, setting a benchmark for

By selecting Ohio for its cuttingedge biologics manufacturing facility, Amgen tapped into a state that prides itself on its strong infrastructure, supportive economic policies, and exceptionally talented workforce. Amgen’s presence also elevates Ohio’s status as a biotech hub, which will likely attract other companies and create a multiplier effect on the local economy.

Honda’s 40-year history in Ohio and the decision to start its move to electrification is a nod to the generations of Ohio workers who bolstered the company’s success in the United States. At the same time, Honda’s vision for carbon neutrality by 2050 is on the path to success as it builds the Honda and LG Energy Solution Battery plant today.

This article was paid for and written by JobsOhio and approved by Area Development.

Montgomery County, Built for Bio: Maryland

Its robust network of universities and large presence of federal agencies, including the NIH and FDA, have made Montgomery County a prime location for life science firms.

Demand in the life sciences industry has exploded. By 2030, the global market is expected to reach nearly $1 trillion, and Montgomery County, Maryland, is right in the thick of things.

The county has established itself as a prime location for companies in this sector. It is the hub for the third-largest biopharma cluster in the U.S., with more than 300 life science companies and 26,000 employees. Companies like AstraZeneca, REGENXBIO Inc., United Therapeutics, MilliporeSigma and Deka Biosciences Inc., have all recently expanded their operations within the county.

“We have global companies that specialize in gene and cell therapy, biopharmaceuticals, immunology,” says Prayas Neupane, Montgomery County Economic Development Corporation’s (MCEDC) director of Economic Development. “There’s a reason these companies are located here — we have the right talent, the right infrastructure and a highly educated workforce. There’s a lot of synergy between what the county can offer and why the life science companies are here.”

Montgomery County is a strategic location for life science companies. It is home to the NIH, FDA and many other federal agencies. But perhaps more importantly, it has a robust network of universities and a highly educated workforce. With 33% of county residents having an advanced degree, talent — especially within specialized fields such as life sciences — is abundant in the county.

Having access to an excellent talent pipeline is critical for most life science companies. In Montgomery County, Md., this talent is also extremely diverse. In fact, 4 of the 10 most ethnically diverse cities in the entire country are in the county, where over

115 languages are also spoken across top ranking schools. For businesses seeking to innovate, having a diverse and highly educated workforce is a winning combination that gives them a significant competitive advantage.

Then, there’s the life sciences ecosystem — funding from the NIH alone reached $2.7 billion last year, and real estate is still significantly less expensive than other regions. “That’s a driver for growth,” says Pete Briskman, executive managing director and co-lead for the real estate advisory

“We have global companies that specialize in gene and cell therapy, biopharmaceuticals, immunology,”

said Prayas Neupane, Montgomery County Economic Development Corporation’s (MCEDC) director of Economic Development.

company JLL’s Mid-Atlantic Life Sciences practice. “There are purposebuilt developments, new construction, biomanufacturing for later-stage companies, and we have a healthy vacancy level compared to other top clusters.” In the life sciences sector, connections are especially important in real estate. From specialized labs to biomanufacturing to clinical trial space, the complications and expense of build outs can be enormous.

MCEDC is a public-private partnership whose mission is to attract and retain six strategic industries to Maryland’s Montgomery County: technology, hospitality, real estate, nonprofits, corporate headquarters and, of course, life sciences. It makes critical connections for businesses looking to

grow in the county. Neupane and the MCEDC team collaborate with local experts and partners to ensure life science businesses get all of their unique needs met.

Pat Larrabee is one of them. As the founder, president and CEO of real estate consulting firm Facility Logix, she helps life science companies determine what site best suits them and then ensures that the new location continues to meet their needs as the company grows. “Our team has deep science and compliance backgrounds coupled with design and construction expertise,” says Larrabee. “We work very closely with the county and the landlord community to make sure these companies are taken care of.”

Jeff Chod, partner and regional director at construction and property management company Minkoff Development Corp., uses its large portfolio to help life science organizations find alternative solutions to limited capital, often by reusing existing infrastructure from other companies. For example, an earlier-stage business may want to leverage someone else’s lab infrastructure to their initial investment costs. “Like playing matchmaker, we’re able to move companies to create a variety of solutions,” he says, noting a recent short-term lease between one company needing a specialized production area and another with excess capacity that fit the specs for that client.

With a rich talent pool and diverse population, and the global demand for life sciences innovations surging, businesses in Maryland’s Montgomery County are uniquely positioned for success.

Learn more at thinkmoco.com

This article was paid for and written by Montgomery County Economic Development Corporation and approved by Area Development.

LIFE SCIENCES

Mitigating Labor Challenges in Life Sciences Manufacturing

Why executives facing manpower shortages must consider a menu of location planning, automation, and fostering a learning culture to meet current challenges and drive efficiency.

By Adam Bloom, President & CEO of Stevenson Search Partners

The life sciences sector has been pushing the boundaries of medical science, advancing from small molecule drugs to complex biologics and cell therapies. To keep up with all this progress, the manufacturing landscape within our industry has been transforming just as dramatically as the medicines. This evolution is not only a testament to our innovation but also a call to action to address the growing challenge of labor shortages—a pivotal issue that could hinder our progress if left unmanaged. As a manufacturing executive, you play a pivotal role in navigating these changes, ensuring our industry not only meets current demands but also gets these wonderful medicines and technologies to patients who need them.

The Current Landscape of Life Sciences Manufacturing

Today’s life sciences manufacturing is light years away from simplistic assembly lines. Modern facilities are high-tech environments where sophisticated biologics are developed under stringent regulatory standards. The workers in these facilities need a unique blend of skills—they must be as adept with bioreactors and chromatography as they are with regulatory compliance and quality control. The demand for such talent is increasing, yet the supply remains worryingly scant.

The root of this labor shortage is deep and tangled. You have the rapid technological advancements that require continual learning and adaptation from your workforce, skills that are not abundantly available in the traditional pool of talent. Then, you must compete with the allure of other high-tech fields, often with more glamorous perceptions or seemingly better working conditions, drawing potential talent away from manufacturing roles in life sciences. The challenges are big, but there are solutions that can bend the curve in the right direction.

Strategic Location Planning

One of the first strategies to mitigate labor shortages is thoughtful location planning for new facilities. The

choice of location can significantly influence the ease of attracting skilled labor. Proximity to academic institutions can provide a steady influx of fresh talent, eager to apply cutting-edge scientific knowledge. Additionally, regions with a thriving biotech ecosystem offer a competitive advantage by providing access to a pool of workers experienced in highly regulated environments.

Conversely, establishing operations in less saturated markets can reduce turnover rates. In areas with fewer competing employers, employees are more likely to have longer tenures, which enhances continuity and reduces the costs associated with training new workers. However, this approach requires a balanced assessment of the potential challenges, such as the initial difficulty in attracting talent to these lesserknown areas.

Leveraging Technology and Automation

Embracing automation is another crucial strategy. While the upfront costs are significant, the long-term benefits of automation in addressing labor shortages cannot be overstated. Automated systems can take on repetitive, labor-intensive tasks, allowing human workers to focus on more complex and value-added activities. This not only makes better use of scarce talent but also improves job satisfaction by reducing monotony.

Moreover, integrating advanced technologies such as artificial intelligence and machine learning can enhance production efficiency and compliance, reducing the burden on human workers and allowing for a leaner workforce that is easier to maintain.

Fostering a Culture of Continuous Learning and Development

Perhaps the most critical strategy is cultivating a workplace culture that values continuous learning and development. In an industry as dynamic as life sciences, the ability to keep pace with technological and regulatory changes is paramount. Employers must invest in ongoing training and development programs to ensure

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LIFE SCIENCES

their workforce remains at the cutting edge of scientific and manufacturing advancements.

Additionally, life sciences companies must become adept at ‘re-recruiting’ their own employees—continuously engaging them and reinforcing their value to the organization. This approach not only enhances employee retention but also builds a more committed and motivated workforce.

Building Partnerships and Collaborative Networks

Collaboration across the industry can also play a vital role in addressing labor challenges. By forming partnerships with educational institutions, life sciences companies can help shape curricula to ensure that the skills taught match the industry’s needs. Internships and coop programs can provide students with practical experience and a pathway to full-time employment, creating a pipeline of job-ready graduates.

Similarly, companies can collaborate with each other to develop shared training resources, which can be particularly beneficial for smaller firms that may not have the resources to develop comprehensive training programs independently.

The Risks of Outsourcing

Not every mitigation strategy is a good one. Outsourcing manufacturing processes in the life sciences sector is a common way for companies to manage high costs and the complexities of building and maintaining their own facilities. However, this approach comes with significant

risks. When you outsource, you relinquish control over critical aspects of production, potentially compromising the quality and consistency of the products. This loss of oversight can lead to delays and variability that may not align with the stringent regulatory standards required in pharmaceutical manufacturing.

Outsourcing can also introduce vulnerabilities in your supply chain, making it harder to respond to fluctuations in demand or disruptions in supply. Most critically, dependency on external manufacturers can constrain innovation and responsiveness, delaying the introduction of breakthrough therapies that could significantly benefit patients. These factors make outsourcing a double-edged sword, offering cost savings at the potential expense of product quality and company agility.

What’s Next?

The challenges of labor shortages in life sciences manufacturing are formidable, but they are not insurmountable. Through strategic location planning, the adoption of automation, a strong emphasis on continuous learning, and collaborative industry efforts, we can build a resilient workforce that can support the future of medicine.

Our industry is known for its innovation and resilience, and by applying these qualities not only to our products but also to our manufacturing practices and workforce development, we can ensure that life sciences continue to thrive. As we look to the future, our ability to innovate in how we manage and develop our workforce will be just as important as the innovations we bring to patient care.

Economic growth shines at the Area Development Shovel Awards, with states like South Carolina and Louisiana leading the charge. Discover which regions are driving innovation and sustainability in industries from automotive to green technology.

By Steve Kaelble, Staff Editor

The pace of outstanding economic news in the past year has been nothing short of breathtaking. Overall, the economy keeps growing at a healthy pace, and economists are coalescing around the conclusion that the mythical “soft landing” has arrived—with inflation tamed, relatively speaking, but with surprisingly low joblessness along with healthy job and gross domestic product growth. The economic-development headlines have been

equally rosy. The past year has seen a long list of announcements of new developments and expansions, some promising eyepopping capital expenditures, and new job opportunities, and many more offering the kinds of smaller but welcome investments that also collectively create local booms. Local booms are what Area Development’s Shovel Awards recognize. Each year, we scan the records of project announcements to see which states are epicenters of growth. Those

with exceptionally strong activity are honored with Gold and Silver Shovel Awards. Once again, this year, we’ve named a Platinum Award winner to one state with news that’s even beyond Gold-level performance. And, for the first time, we’ve added one more color, a Green Shovel Award, recognizing a healthy concentration of projects that are positive for the health of the planet. As always, these honors are based on information that state economic development officials have shared with us. The details were current at the time they were provided, but as we all know, plans can change, with revisions or delays caused by unforeseen circumstances. Read on for details about the states honored with Shovel Awards and check the related articles for more about some of the busiest areas, such as the automotive sector and earthfriendly initiatives. And now, the envelopes, please…

SOUTH CAROLINA

Platinum Shovel Winner

COMPANYCITY/COUNTY # JOBS INV. AMT. INDUSTRY

AESC Florence, LLC

Albemarle

Cirba Solutions (SC)

e-VAC

Magnetics, LLC (e-VAC)

Nissin Foods

Florence450$810 million Automotive

Richburg300$1.3 billion Energy - Cleantech, Renewable

Columbia300$300 million Automotive

Sumter300$506 million Automotive

Piedmont300$228 million Food Processing

Pallidus, Inc. Rock Hill405$443 million Electronic & Other Electrical Equipment & Components

QTS Data Centers

Scout Motors

SEM Wafertech, Inc. and Solar4America Technology, Inc.

Last time it was North Carolina, this time the Platinum Award moves one state to the south, to South Carolina. And what a platinum year the Palmetto State has had—its list of top wins carried a total investment surpassing $7 billion and a promise of more than 8,500 new jobs. Not a bad year’s work! Leading the way and comprising two billion of those dollars and 4,000 of those jobs is one of our Projects of the Year, the Scout Motors electric vehicle plant promised near Blythewood. It’s a U.S.-based operation owned by Volkswagen, and though it’s driving into the brave new world of electric vehicles, it gets its name from the old International Harvester Scout off-road vehicle from the 1960s and ‘70s. Vehicles should be humming off the lines by

York0$1 billionBusiness Services

Blythewood4,000$2 billion Automotive

Sumter300$66 million Alternative Energy & Fuels

Silfab Solar Fort

Tin Thanh Group Americas

ZF Transmissions

Mill800$150 million Energy - Cleantech, Renewable

Fairfax1,031$68 million Plastics, Rubber, & Chemicals

Gray Court, LLC Gray Court400$500 million Automotive

Expansion Manufacturing Project of the Year

2027. The thriving automotive sector is fueling several more of the big deals in South Carolina. For example, the $1.3 billion promised by Albemarle for a lithium hydroxide facility in Chester County—that’s tied to electric vehicle batteries and other lithium-ion power needs. There’s the $810 million AESC electric vehicle battery facility expansion in Florence County worth about 450 new jobs. There’s also e-VAC Magnetics, maker of rare earth permanent magnets that can be part of EVs and other products, spending about half a billion dollars in Sumter County. And there’s another half-billion-dollar promise for a ZF transmission plant in Gray Court, a flex manufacturing facility that can support both internal combustion and e-mobility technologies. But South Carolina also owes its Platinum Shovel to a diversity of other wins, including a billion-dollar project from QTS Data Centers and a $443 million Pallidus semiconductor plant and corporate headquarters facility, both in York County. And Nissin Foods decided that

LOU KENNEDY CEO/OWNER NEPHRON PHARMACEUTICALS

“GROWTH THROUGH 'PIVOTABILITY.' Now, a made-up word doesn't make it any less imperative. In the fast-paced world of life sciences, perfection, advanced technology and constant change are mandates for success. South Carolina Department of Commerce is a powerful ally that helps businesses adapt and win, meeting the demands of not just today but tomorrow. This pro-business, responsive partnership has helped South Carolina become the fastest-growing state in America†. Simply put, South Carolina is success, from Launch to Legacy.”

†By

The future is here

The future is firmly rooted in Arizona as the home of innovative businesses from around the world. In 2024, major investments were made that are advancing the state’s thriving ecosystem and helped Arizona win its 6th Gold Shovel Award. LG Energy Solution received the 2024 Manufacturing Project of the Year and the 2024 Cleantech Project of the Year award for its new battery manufacturing facility in Queen Creek, Arizona. The $5.5 billion investment is the largest single investment ever for a stand-alone battery manufacturing complex in North America.

Amkor Technology, a leading provider of semiconductor packaging and test services, was awarded the 2024 NonManufacturing project of the Year for investing more than $2 billion into an advanced packaging and test facility in Peoria, Arizona. Upon completion, this will be the largest outsourced advanced packaging facility in the United States.

Arizona is a premier location to catalyze advanced technologies and o ers a lifestyle that allows employees to achieve their personal goals with endless outdoor activities, vibrant arts and culture, and a ordable living. It’s this perfect balance that makes life better here — and provides the winning combination for global innovators.

a site in Greenville County has the right recipe for a new $228 million instant ramen noodle plant.

And the Gold Shovels Go To…

As usual, there’s a Gold Shovel Award for each of our five population categories. Among the biggest states, those with at least 12 million residents, Texas brings home the Gold, with a list of top projects worth $21 billion in total investments. Landing on the Projects of the Year list is the plan by ZT Systems to create as many as 1,500 Georgetown jobs at a cloud-computing manufacturing facility. More technology jobs are on the way ina Round Rock, where Toppan Photomasks Inc. announced plans to invest at least $185 million in modernizing its operations there that make a key component in semiconductors. The company has been based there since 2020. Google, meanwhile, announced plans for a $600 million data center in the Dallas area. And Tesla broke ground last year on a $375 million lithium refinery in Robstown. The biggest Texas deal in terms of dollars invested was the proposal by Graphic Packaging International to build a billion-dollar recycled paperboard plant in Waco, which the company touts as supporting its vision of a renewable future.

Next in the Gold Shovel Award line, representing states with populations between 8 million and 12 million, is Georgia. The state boasts big numbers in both investment dollars and jobs created—its biggest deals collectively are worth nearly $13 billion in investment and more than 16,000 jobs. Georgia reports not just one, not two, but three projects with 10-figure price tags, led by a $5 billion Project of the Year from SK On and Hyundai Motor Group. Their plan is an EV battery cell plant in Bartow County potentially worth 3,750 jobs. Add to that the investments made by QCells, a clean energy solutions provider. The company has expanded its Dalton factory and is developing a solar supply chain facility in Cartersville, investments totaling about $2.5 billion. And while you’re adding, plug in $2 billion from LG Energy Solution and

TEXAS

Gold Shovel Winner

COMPANYCITY/COUNTY # JOBSINV. AMT. INDUSTRY

Eaton Nacogdoches200$100 million Electrical Equipmen

Google Red Oak30$600 millionTech, Software

Graphic Packaging International Waco230$1 billionConsumer Products

Kao Corporation Pasadena60$250 millionRaw Materials

NextDecade Corporation

Brownsville350$18.4 billionEnergy - Oil, Gas

Saint-Gobain Corporation / Certainteed LLC Bryan130$145 millionRaw Materials

SEG Solar Houston500$60 million Energy - Cleantech, Renewable

Tesla Robstown150$375 millionRaw Materials

Toppan Photomasks Round Rock50$186 millionSemiconductor, Chips

ZT Systems Georgetown1,500$35 million Tech, Software

Expansion

Manufacturing Project of the Year

GEORGIA

Gold Shovel Winner

COMPANYCITY/COUNTY # JOBSINV. AMT. INDUSTRY

Ajin Statesboro630$317 million Automotive

Anovion Bainbridge412$800 millionGraphite Materials

Burlington Stores Ellabell1,300$300 millionRetail, E-commerce

Gulfstream Aerospace Corporation Savannah1,000$52 million Aerospace

Hanwha Q Cells Co., Ltd. Cartersville2,000$2.3 billion Energy - Cleantech, Renewable

Hyundai Mobis Co. Ltd. Richmond Hill1,578$926 million Automotive

LG Energy Solution Ellabell400$2 billion Automotive

Meissner Corporation Athens1,785$249 millionLife Sciences, Biotech

Morgan Stanley Alpharetta1,800$46.6 millionFinancial Services

Renewal by Andersen Locust Grove900$421 million Window

Sewon Rincon740$300 million Automotive SK on White3,750$4.9 billion Automotive

Expansion

Manufacturing Project of the Year

BUILD YOUR SUCCESS IN GEORGIA

Georgia provides the building blocks that bring operations online sooner from the ground up. Site selectors agree that the state’s speed-to-market solutions set the state apart. Learn more about why business is choosing Georgia.

ARIZONA

LOUISIANA

Gold Shovel Winner

Hyundai Motor Group for a battery cell manufacturing plant adjacent to Hyundai’s Ellabell manufacturing campus. Nearly a billion more dollars are coming from Anovion Technologies, building a plant to produce synthetic graphite anode materials that also will be part of the EV supplier boom. Georgia’s growth shows plenty of diversity, with investments by window maker Renewal by Anderson, financial services giant Morgan Stanley, Burlington Stores and Gulfstream Aerospace.

The list of Arizona’s biggest projects includes nearly $8 billion in investments that’ll create more than 7,000 jobs. That’s enough to earn a Gold Shovel among states with populations between 5 million and 8 million. A little over half of the investment is a Project of the Year, a new LG Energy Solution battery plant in Queen Creek, which the company has said could be the biggest standalone battery complex in North America. The company has plans to make multiple kinds of batteries—for EVs as well as energy storage systems. Another $2 billion investment is promised by Amkor Technology, planning an advanced semiconductor packaging and test facility that’ll work on behalf of Apple, testing and packaging chips from a nearby chipmaker. Another chipconnected project features Applied Materials Inc. and Arizona State University, launching a shared research, development and prototyping facility at ASU Research Park. Still another is the plan from semiconductor equipment manufacturer ASM International to build a new North American headquarters in Scottsdale. Arizona’s roster of big recent projects is a diverse list that also includes a Google data center, a JA Solar photovoltaic products factory, a Factor ready-to-eat meal production facility and a Rose Acre Farms egg farm that’ll be home to more than 2 million hens and provide work for 150 humans.

Louisiana is the poster child for the new Green Shovel designation, which the state has earned to go alongside its Gold Shovel honoring accomplishments of states with populations between 3 million and 5 million. The

state’s biggest projects are nearly all in the category of green, clean, renewable energy, and together they total more than $16 billion in investments. There’s the Project of the Year honoree proposed by DG Fuels LLC that will make low-emission, sustainable biofuel in St. James Parish, providing work for 650 people. Also in the area is another 10-figure project, a facility to produce low-carbon ammonia and hydrogen from St. Charles Clean Fuels. Three more projects exceeding a billion dollars in investment include the SunGas Renewables Inc. plan to produce green methanol in Pineville, the CF Industries proposal for producing low-carbon ammonia in Ascension Parish, and First Solar’s billion-dollar plan to create solar panels in Iberia Parish. Check the related article on planet-friendly projects for more information about Louisiana’s green leadership.

The final Gold Shovel Award, chosen among states with populations of 3 million or less, goes to Kansas. Among its most prominent stories from the past year is the Project of the Year from Walmart, which announced plans to build its own case-ready beef facility in Olathe. The retailer wants its own end-to-end supply chain for Angus beef, and the 600-job plant will make that happen in 2025. The state enjoyed a diversity of announcements in the past year that led to its Gold status. Some, like Walmart’s beef plant, related to its agricultural and food processing leadership, such as the DSM plan for a premix pet food plant in Tonganoxie and the Southwest Plains Dairy project in Syracuse. Camso is investing big-time in its Junction City operations, making agricultural rubber tracks for farm equipment, Koch Fertilizer Dodge City is expanding and manufacturer Marvin will be making glass window and door products in Kansas City (on the Kansas side of the state line). The Kansas aerospace industry is growing, too, with expansion announcements from Orizon Aerostructures and Textron Aviation.

KANSAS

Gold Shovel Winner

COMPANYCITY/COUNTY

Camso Manufacturing Junction City/ Geary 181$114 million Consumer Products

DSM Nutritional Products, LLC Tonganoxie/ Leavenworth 28$52 millionFood Processing

H&T Kansas, LLC De Soto/Johnson 180$110 millionConsumer Products

High Plains Ponderosa Dairy Plains/Meade95$168 million Agriculture

Kiewit Corporation Lenexa/Johnson723$120 million Business Services

Koch Fertilizer Dodge City, LLC Dodge City/Ford0$93.8 millionConsumer Products

Marvin Lumber and Cedar Company Kansas City/ Wyandotte 585$77 millionConsumer Products Oppidan Olathe/Johnson6$71 million Business Services

Orizon Aerostructures Chanute/Neosho 200$44 million Aerospace

Southwest Plains Dairy Syracuse/ Hamilton 45$54 millionAgriculture

Textron Aviation Wichita/ Sedgwick 5$45 million Aerospace

Walmart Inc. and Subsidiaries Olathe/Johnson667$257 MillionFood Processing

Expansion Manufacturing Project of the Year Non-Manufacturing Project of the year

The Silver Shovels

States with population of more than 12 million

A highlight of the Silver Shovel earned by Illinois is a $2 billion EV battery project in Manteno, one of our Projects of the Year. Gotion is working on a gigafactory that’ll create 2,600 jobs and is, according to the governor, the state’s most significant new manufacturing investment in decades (its dollar total is more than a third of the overall value of all of Illinois’ biggest projects of the past year). Meanwhile, Walmart is spending more than a billion dollars on a high-tech, automated distribution center in Belvidere for perishables such as eggs, dairy, fresh produce, flowers and frozen food. In the agricultural hotspot of Decatur, Warwick Carbon Solutions is investing a billion dollars in a first-of-its kind power and steam plant. It’ll work with ADM’s carbon capture capabilities to handle most of the carbon dioxide emissions. In DeKalb, Kraft Heinz is investing in one of the continent’s largest consumer packaged goods distribution centers, while US Foods is building in the Chicago suburb of Aurora. Other Illinois wins include projects from CJ Logistics, Target, GE Appliances and CoreWeave.

Silver Shovel winner New York, meanwhile, has a Project of the Year in Fairlife’s new production facility in Webster worth two-thirds of a billion dollars. Fairlife is now a part of Coca-Cola, and it’s bringing its ultra-filtered milk products to more of the Northeast. Another dairy producer adding jobs in New York is HP Hood, expanding capacity at its Batavia facility, and Wells Enterprises is growing in Dunkirk to keep up with ice cream demand. Cummins is pumping nearly a half billion dollars into its Jamestown engine plant that last year produced its 2.5 millionth engine—the company is focused on lower-carbon engines. New York has a diverse range of projects on its list, including Regeneron Pharmaceuticals’ plan to establish a biomedical research facility in Suffern, Schrödinger Inc.’s life sciences headquarters growth in

ILLINOIS

Silver Shovel Winner

Warwick

HP

BETA

NEW YORK

Silver Shovel Winner

Schrodinger

Wells Enterprise (Ferrero Rocher)

Expansion

IT’S HAPPENING ALL ACROSS NEW YORK STATE

Smart, dynamic, innovative businesses are starting here, moving here, and thriving here.

In New York State, we are building a global hub for the innovation economy, training a skilled and diverse workforce, and investing in cutting-edge industries through business incentives that are creating jobs for the future. This is why innovative companies that are growing today and defining tomorrow are choosing New York State.

Learn what New York can do for your business. Email industries@esd.ny.gov or visit esd.ny.gov/whyNY

Nel Hydrogen – Proton Energy

PROJECTS OF THE YEAR

Manufacturing

Which states had the top manufacturing projects of the year?

In the heart Cartersville, Georgia, SK on, a titan in the industry, set its sights on creating a masterpiece of innovation and job creation. With a staggering investment of $4.9 billion, they embarked on a journey that would not only redefine automotive standards but also breathe life into the local economy with the promise of 3,750 new jobs. Meanwhile, in the serene landscapes of Blythewood, South Carolina, Scout Motors was crafting its own narrative of success. With a visionary approach and a $2 billion investment, they were on track to revolutionize the automotive sector, creating 4,000 jobs and becoming a beacon of hope for the region.

Across the country in Queen Creek, Arizona, LG Energy Solution was writing its chapter in the story of sustainable energy. With an investment of $4.1

billion and the creation of 2,000 jobs, they were shaping the future of batteries and setting new benchmarks for clean technology.

In Manteno, Illinois, Gotion was adding its voice to the chorus of innovation. Specializing in lithium battery manufacturing, they invested $2 billion and created 1,600 jobs, signaling a shift towards greener and more efficient energy solutions.

These stories were not isolated incidents but part of a larger tapestry of progress and development. Each company, from DG Fuels in Louisiana to Texas Instruments in Utah, contributed to a narrative of growth, opportunity, and technological advancement. The 19th annual Gold Shovel awards didn’t just celebrate these achievements; they showcased the collective drive and ingenuity of a nation moving forward into a brighter future.

FIVE COUNTIES. ONE IDEAL SITE.

SPANNING FROM CHARLOTTE TO COLUMBIA

The SC I-77 Alliance’s five-county region offers more than 350 prime development sites and buildings strategically located along the I-77 corridor.

SHOVEL-READY SITES AND FACILITIES WITH LAND AND LABOR COSTS BELOW NATIONAL AVERAGES

200+ SITES

150+ BUILDINGS

CELEBRATING INNOVATION WITHIN THE SC I-77 ALLIANCE REGION

Home to a workforce of more than 1.9 million people, forward-thinking companies like Scout Motors, Albemarle, and Cirba Solutions, have chosen the SC I-77 Alliance region to call home.

$2 BILLION EV ASSEMBLY

$1.3 BILLION LITHIUM PLANT

$300 MILLION

EV BATTERY RECYCLING

Non-Manufacturing

Which states had the best non-manufacturing projects?

Across the United States, a wave of substantial non-manufacturing projects is catalyzing economic growth and diversification. In Peoria, Arizona, Amkor is establishing a significant presence in the semiconductor and chips industry with an investment of $2 billion, promising to create 2,000 jobs. Similarly, Amazon Web Services is set to expand in Virginia with a groundbreaking $35 billion investment in tech and software, though the specific city remains to be determined, expected to generate 1,000 new jobs.

In the retail and e-commerce sector, Burlington Stores plans to infuse $300 million into Ellabell, Georgia, generating 1,300 jobs. Walmart is also strengthening its retail footprint with a $1.2 billion investment in Belvidere, Illinois, creating 450 positions. Food processing is not left behind, as Westrock Coffee aims to invigorate Conway, Arkansas, with 600 jobs through a $300 million investment.

Amazon Data Services, Inc. is bolstering the tech landscape in Columbus, Ohio, with a $7.8 billion investment, adding 230 jobs. Consumer

products will see a boost from Lakeshore Learning Materials in Garland, Utah, where a $219 million investment will create 540 jobs.

Business services are also expanding, with the Kiewit Corporation’s project in Lenexa, Kansas, which plans to add 723 jobs with a $120 million investment. In the transportation sector, Conair is set to enhance Hagerstown, Maryland, with a $75 million investment and 700 new jobs. Finally, URBN is enhancing its retail and e-commerce presence in Kansas City, Missouri, with a $60 million investment that will create 750 jobs.

These developments highlight a robust pattern of investment and job creation across various industries, from technology and consumer products to transportation and retail, underscoring the diverse economic vitality of America’s non-manufacturing landscape. Each project not only promises significant economic benefits but also strengthens the local economies and workforce capabilities in their respective cities.

OUR EXPERTISE. YOUR SOLUTIONS.

Through our comprehensive range of customized Talent Solutions, we work with your business in sourcing skilled workers for immediate needs while cultivating a robust talent pipeline for the future.

Your trusted partner in understanding and meeting your workforce goals in Mississippi.

The Newest Shovel Award— It’s Green!

Louisiana leads with green, earning the first-ever Green Shovel for its commitment to renewable energy. The state’s significant cleantech investments highlight a national shift toward sustainable development.

By Steve Kaeble, Staff Editor

Many of the latest economic development projects are tied to environmentally friendly aims, and that’s no accident. Numerous manufacturing launches and expansions have been facilitated by federal programs such as the Inflation Reduction Act that took effect in mid-2022. Many others are reacting to climate change and the general demand for planetfriendly, sustainable growth, which includes coming up with more green, renewable sources of energy. Area Development believes it’s a category project worth honoring.

CLEAN TECH

Dai Nippon Printing Co. Linwood, North Carolina 352$233 million

First Solar Iberia Parish, Louisiana 715$1.1 billion

Gotion Manteno, Illiniois 1,600$2 billion

Hanwha Q Cells Co., Ltd. Cartersville, Georgia 2,000$2.3 billion

Illuminate USA Pataskala, Ohio850$220 million

LG Energy Solution Queen Creek, Arizona 2,000$4.1 billion

No state has taken this environmental project trend to heart more than Louisiana. The state’s economy has long been closely tied to the energy sector, and in the past year, it has landed a huge roster of energyrelated projects at a scale deserving of more than its Gold Shovel award. What makes this past year different from previous years is that nearly the entire list of big projects is tied not just to energy, but to renewable, sustainable energy. For that reason, Louisiana gets Area Development’s first Green Shovel.

Nel Hydrogen –|Proton Energy Systems Incorporated Plymouth, Michigan 517$400 million

Redwood Materials, Inc. Storey, Nevada701$1.1 billion

SEG Solar Houston, Texas500$60 million

Silfab Solar Fort Mill, South Carolina 800$150 million

The state’s 10-figure cleantech investments are listed in the main article, and they’re impressive. Alongside those are several others, including the Koura expansion in Iberville Parish intended to support the production of lithium-ion

batteries, a carbon-free hydrogen plant proposed by Monarch Energy in Ascension Parish, Kindle Energy’s generation plant in Iberville Parish that’ll power half a million homes with electricity generated from natural gas and carbon-free hydrogen, plus projects from Element 25, Capchem USA, and ADA Carbon Solutions.

It’s an impressive lineup of green deals, but it turns out that green is a popular color outside Louisiana, too. Look elsewhere and you’ll find such prominent developments as the half-billiondollar Ingka Investments solar farm proposed in Alabama, a Silver Shovel state. In the Silver Shovel state of New York, GE Vernova’s Onshore Wind facility in Schenectady is making wind turbines that will produce clean energy in various windy places. First Solar is investing in its Ohio operations, including an R&D innovation center, and Illuminate USA is building a solar panel factory in the Silver Shovel-honored Buckeye State. Virginia and Gold Shovel winner Texas are also among those celebrating green developments.

On top of that, check the related article about automotive projects. You’ll see that a major share of the biggest recent deals are tied to manufacturing electric vehicles and the batteries that make their motors go. Many of those deals are also facilitated by Inflation Reduction Act incentives.

Driving Automotive Development into the Future

Look through the lists of the past year’s major economic development projects shared by state officials and you get the feeling that it has been the year of the car. Or perhaps even more accurately, the year of the electric car. The map is dotted with developments tied to both internal combustion and electric vehicle manufacturing, and many of the biggest deals are related to the increasingly sophisticated batteries needed to power the electric ones.

In Platinum Shovel-winning South Carolina, for example, Volkswagen-owned Scout Motors is gearing up to open an EV plant near Blythewood. Several of the state’s other major projects are linked to EV batteries or the materials inside them. North Carolina, a Silver Shovel winner, also has big automotive developments, the biggest being an $8 billion investment at Toyota Battery Manufacturing North Carolina that will add capacity for powering EVs and plug-in hybrids.

Our People Make

That state’s Project of the Year is an Epsilon Advanced Materials plan to spend $650 million on a graphite anode manufacturing facility in Brunswick County, also supporting EVs.

Silver Shovel winner Nevada boasts a $3.6 billion expansion of Tesla’s Gigafactory Nevada, a project worth more than 6,000 jobs, and the state also is watching Redwood Materials power up its battery business. In Gold Shovel Georgia, massive battery cell plants are planned by partnerships involving SK On and Hyundai Motor Group as well as LG Energy Solution and Hyundai Motor Group., while Hyundai Mobis is pumping nearly a billion dollars into an EV power electric system plant in Richmond Hill. LG Energy Solution also has a battery plant on the way in Queen Creek, Arizona, a state honored with a Gold Shovel.

In Alabama, a Silver Shovel winner, Hyundai is getting ready to build the next Santa Fe and is pumping $290 million into its Montgomery plant. And Silver Shovel winner Tennessee is bustling with automotive-related developments, including multiple projects from Cosma International, Hanon Systems, and Magna Seating.

Thank you for leading the nation’s best-in-class business environment and creating high quality jobs for Georgians!

& Silver Shovel Awards

New York City, the BETA Technologies aerospace expansion at the Plattsburgh International Airport, plus significant projects in both microelectronics and software.

States with population between 8 and 12 million

North Carolina lands a Silver Shovel with a roster of top projects worth nearly $10 billion collectively. Its Project of the Year is a $650 million graphite anode facility in Wilmington from Epsilon Advanced Materials. The company promises that it’ll use green technologies in making its product destined for environmentally friendly EVs. Several other transportation projects are driving jobs and investment in North Carolina, including an $8 billion investment at Toyota Battery Manufacturing North Carolina, Dai Nippon Printing Co.’s advanced manufacturing facility in Linwood making lithiumion battery pouches, a $220 million Siemens Mobility train manufacturing facility expansion, a Honda Aircraft private jet plant in Greensboro, and projects by alpitronic Americas and Kempower. But other industries make a splash here, too, including various projects in biomanufacturing, financial services, power tools and information technology.

Silver Shovel winner Ohio is known as the birthplace of aviation because of its history with the Wright brothers, so it makes sense its Project of the Year is an aerospace deal located at Dayton International Airport. Joby Aviation is working on an all-electric, vertical take-off and landing air taxi, and it’s spending nearly half a billion dollars to build the vehicle in Ohio. The project is among nearly $12 billion in investments on Ohio’s list of the top projects of the past year. A major chunk of that investment total comes from Amazon Web Services, which plans to populate central Ohio with a couple dozen data centers, starting with five near Columbus. The company has already spent $6 billion in Ohio in the past decade and will more than double that investment with its data center plans. Another big data cen-

NORTH CAROLINA

Silver Shovel Winner

COMPANY

alpitronic Americas LLC Charlotte300$18.3 million Automotive

Ameriprise

Financial Charlotte388$16.8 millionFinancial Services

Bosch Lincolnton404$109 million Power Tools

CommScope Hickory250$60.3 millionInformation Technology

Dai Nippon Printing Co. Linwood352$233 million Automotive

Epsilon

Advanced Materials Wilmington500

$649.9 million Automotive

Honda Aircraft Company Greensboro280$55.7 million Aerospace

Kempower Durham601$41.3 million Automotive

Marshall USA Greensboro240$50 million Aerospace

ProKidney Greensboro330$485 millionBiomanufacturing

Siemens Mobility Lexington506$220 millionTransportation

Toyota Liberty3,000$8 billion Automotive

Expansion

Manufacturing Project of the Year Non-Manufacturing Project of the year

OHIO

Silver Shovel Winner

Amazon Data Services, Inc

Columbus230$7.8 billionTech, Software

First Solar, Inc. Perrysburg180

$488.5 million Energy - Cleantech, Renewable Fuyao Glass America Inc. Moraine500$300 million Automotive

Illuminate USA Pataskala850$220 million Energy - Cleantech, Renewable

Joby Aero, Inc. Dayton2,000

$477.5 million Aerospace

Louis Dreyfus Company Salem114$541 millionFood Processing

Quality Technology Services, LLC New Albany10$1.65 billionTech, Software

Resilience US, Inc. West Chester440

Sheetz Distribution Services, LLC

$228.9 million Pharma

Findlay750$150 millionFood Processing

Sofidel America Corp. Circleville100$185 millionConsumer Products

Wells Fargo Bank, National Association Columbus350N/A Financial Services

Worldpay, LLC Cincinnati529N/A Financial Services

Expansion

Manufacturing Project of the Year Non-Manufacturing Project of the year

Together, Opelika and Alabama are building a brighter future for talentthirsty companies looking to expand or relocate. Alabama’s talent pipelines are flowing with the next generation of highly-skilled workers that are vital to the success of today’s manufacturing industry operations.

& Silver Shovel Awards

ter deal involves Quality Technology Services, investing a billion and a half dollars in New Albany, with four data centers planned. A couple of projects relate to solar power, including First Solar and Illuminate USA. There are projects involving soybean processing (Louis Dreyfus Co.) and tissue paper (Sofidel America Corp.), and more big plans in the automotive, pharmaceuticals, food processing and financial services sectors.

States with population between 5 to 8 million

Next up is Silver Shovel winner Tennessee, with a carload of automotive projects, as is often the case there. Cosma International, Hanon Systems and Magna Seating have major investments in new or expanded manufacturing operations. But boat transportation is afloat, too, with a major expansion project involving powerboat maker Malibu Boats in Lenoir City. Nearly 800 people will come aboard to build Cobalt brand boats. A Project of the Year from Tennessee is the SK Food Group Inc. plan to build a food processing and cold storage distribution facility in Bradley. Some 840 people will work in various food handling capacities, including making sandwiches. Speaking of sandwiches, the iconic In-N-Out Burger chain picked the state for a corporate hub before it even opened its first restaurant there. Other significant projects include plans from 6K Energy Tennessee, Axle Logistics, Enchem America and Vonore Fiber Products. Miele, maker of high-end appliances, picked Opelika, Alabama, as the site of a manufacturing facility focused on ovens, ranges and eventually ventilation hoods for North American markets.

It’s a Project of the Year honoree that helped cement a Silver Shovel for Alabama, about $400 million of the total $2.7 billion in big-project investments there. The state lists a wide range of impressive projects, including an investment at Hyundai Motor Manufacturing to retool for the next generation of the Santa Fe as well as a big investment at Nemak, a maker of auto components. Nucor is building a state-

6K Energy Tennessee, LLC

Axle Logistics, LLC

Cosma International of America, Inc

of America, Inc.

Hanon Systems USA, LLC

In-N-Out Burgers Inc.

Magna Seating of America, Inc.

Malibu Boats

Inc.

TENNESSEE

ALABAMA

Silver Shovel Winner

INDIANA

Silver Shovel Winner

of-the-art transmission tower production plant in Decatur, next to the company’s sheet steel mill, and Ultra Safe Nuclear Corp. picked Gadsden for a highly automated facility to make non-radiological modules for its microreactors. Wire and cable maker Southwire is expanding in Florence, and there are significant projects in building products, aerospace, medical devices, forestry, solar power and distribution.

Lots of expansions helped Indiana collect a Silver Shovel. The biggest comes from Ford Meter Box Co., pumping more than $250 million into

its hometown of Wabash to boost production of its waterworks products. Southwire, mentioned above for its Alabama growth, is also growing in the Indiana community of Bremen, and the South Bend Ethanol facility is expanding and adding production of renewable natural gas following its acquisition by Verbio North America Holdings. Wabash Valley Foods is growing in Dubois so that it can supply egg-based products for the Jimmie Dean brand run by Tyson Foods, among other Indiana expansions. There were some new Hoosier projects of note, too. Liberation Labs picked Richmond for a biomanufacturing facility focused on precision fermentation. To name a few more, protein bar maker 1440 Foods picked a Jeffersonville site, Conco Inc. will build ammunition containers in Scottsburg, and NOVA Chemicals plans a mechanical recycling facility in Connersville.

Our story is best told through the success of our members. Since 1988, South Carolina Power Team has been championing great stories through industry recruitment and by offering highly reliable power through South Carolina’s electric cooperatives. As an essential economic development partner, we continue to commit resources and incentives to help businesses thrive in South Carolina, and we play a critical role in the creation of job and career opportunities for those we serve. www.scpowerteam.com

Gold & Silver Shovel Awards

States with population 3 to 5 million

Nevada takes home a Silver Shovel with the help of more than $5 billion in investments. A Project of the Year is the plan for a battery recycling operation near Reno involving Redwood Materials, founded by a former Tesla executive to deal with the afterlife of decommissioned EV batteries. That’s a deal worth more than a billion dollars, bested only by the $3.6 billion expansion of Tesla’s Gigafactory Nevada. Nevada has several noteworthy projects involving food, such as the Juanita’s Foods decision to make canned and frozen traditional Mexican foods in North Las Vegas, Monin Inc.’s expansion of its beverage syrup manufacturing and Bauderer Packaging’s North Las Vegas facility that’ll fill packages of snack foods. The state is also growing jobs in technology and software, pharmaceuticals, plastics, and personal protective equipment, among other sectors.

Silver Shovel winner Utah has had a big year in terms of investments, tallying some $12 billion in promises from a variety of big projects. The vast majority of that total involves one investment in Lehi, a Project of the Year from Texas Instruments. The biggest investment in Utah history, it’s a semiconductor wafer fabrication plant that’ll connect to an existing Texas Instruments fab—the two fabs together will be able to make tens of millions of chips a day. It’s hard to measure up to an $11 billion project like that, but Utah has a healthy list of other growth to be proud of. Lakeshore Learning picked Garland for a massive distribution facility to help get the company’s education materials to kids and teachers. Procter & Gamble is expanding its Box Elder facility that makes products in the company’s paper, baby care and feminine care business lines. Delta Airlines picked its Salt Lake City hub for a pilot training facility. And a number of food companies are locating or expanding in Utah, such as C&J Specialties, Utah Flour Mill and Schreiber Foods, which makes a variety of cheese products and celebrated its 50th anniversary a couple years ago by baking a Guinness

NEVADA

Silver Shovel Winner

Agru America, Inc. Fernley20$48.5 millionConsumer Products

Alka Products, LLC Pahrump270$44.2 million Medical

Bauderer Packaging LLC North Las Vegas104$15 millionFood Processing

Idaho Asphalt Supply, Inc. Fallon27$14.6 millionTransportation

Indigo Pharmaceutical, LLC Las Vegas100$15.6 millionLife Sciences, Biotech

Juanita's Foods North Las Vegas149$35.1 millionFood Processing

Monin, Inc. Spanish Springs33$47.2 millionFood Processing

Novva Reno, LLC Storey18

$492.3 million Tech, Software

Redwood Materials, Inc. Storey701$1.1 billionBattery Materials

Skillz, Inc. Las Vegas280$3.1 millionTech, Software

Tesla, Inc.

Storey3,000$3.6 billion Automotive

West Coast Salmon Nevada, LP Imlay96

$211.1 million Agriculture

Expansion Manufacturing Project of the Year

UTAH

Silver Shovel Winner

COMPANY

C&J Snacks Ephraim City190$1.7 millionFood Processing

Central States Manufacturing Tooele City150$30 million Metal roofing, siding and building components

Delta Air Lines Salt Lake City0$120 millionTransportation

Lakeshore Learning Materials Garland540$219 millionConsumer Products

Leitner-Poma Tooele City236$35 millionTransportation

Procter & Gamble Corinne100$400 millionConsumer Products

Schreiber Foods Logan52$135 millionFood Processing

Texas Instruments Lehi City800$11 billionSemiconductor, Chips

Utah Four Mill Richmond31$57 millionFood Processing

Ya YA Foods Ogden City302$92 million Beverage and liquid foods manufacturer and co-packer

Expansion Manufacturing Project of the Year Non-Manufacturing Project of the year

World Record-winning two-ton batch of macaroni and cheese.

Arkansas is toasting its Silver Shovel win with coffee products from Westrock Coffee Co. In the biggest deal of the past year there, the company is investing more than $300 million to expand its development, production, packaging and distribution facility in Conway, which focuses on extracts and ready-to-drink products. Also expanding is Sig Sauer, adding more than 600 jobs as it grows its ammunition plant in the Arkansas community of Jacksonville. In the world of aerospace and related products, Dassault Falcon Jet is investing $100 million to expand its production facilities at the airport in Little Rock, while Raytheon and Rafael Advanced Defense Systems are building a manufacturing facility in East Camden to produce the Tamir missile for the Iron Dome Weapon System. Assorted other projects include such tasks as paper manufacturing, insurance, refrigerated warehousing and expanded production of Bad Boy Mowers products.

States with population under 3 million

Wide-ranging industries are growing in Silver Shovel winner Mississippi. Some are literally flying high, such as Hush Aerospace, maker of unmanned aerial systems that chose Tupelo to build drones, and Skydweller Aero Inc., which chose Hancock County for flight testing and aircraft modification operations for its solar powered aircraft designed to achieve perpetual flight. Raytheon, meanwhile, is growing its manufacturing center in Forest in order to produce an advanced electronic attack system that disrupts enemy technology, and the company will also make airborne radar programs. An auto-technology expansion in Mississippi is the $209 million investment by PACCAR in Columbus. Its products include many premium trucks, engines and parts. Also in Columbus, APEX Ammunition is expanding to produce more shotgun ammo and hire five dozen more people. Other projects include fishing boat manufacturing, tire and steel wheel assemblies, and wood panels.

ARKANSAS

Silver Shovel Winner

COMPANY CITY/ COUNTY # JOBSINV.

Apptegy Little Rock304N/AEducation technology

Bad Boy Mowers Batesville300$76 millionLawn equipment

Central States Manufacturing Lowell 138$24 million Metals

Cypress Cold Storage Springdale60$54 million Refrigerated Warehousing and Storage

Dassault Falcon Jet Little Rock800$100 millionAerospace

Drive Smart Auto Care, Inc. Newport200$3.4 millionInsurance

Elopak Little Rock156$95 million Paper Bag and coated and treated paper manufacturing

Owens Corning Russellville53$69 million Mineral Wool Manufacturing

Raytheon Missile Systems East Camden40$58 millionAerospace

RelateCare Sherwood255$.35 millionHealthcare

SIG Sauer Jacksonville625$150 millionFirearms and ammunition

Westrock Coffee Conway600$300 millionFood Processing

Expansion Non-Manufacturing Project of the year

MISSISSIPPI

Silver Shovel Winner

APEX Ammunition Columbus64$4.4 millionFirearms and ammunition

Avid Boats Amory50$8 millionaluminum fishing boats

Clark Beverage Group Madison30$100 millionBeverage distribution

Cold-Link Logistics Laurel84$64 millionshipping and cold storage

Hood Industries Beaumont265$217 million Agriculture

Huber

Engineered Woods Shuqualak158$418 millionWood panel manufacturing

Hush Aerospace Tupelo80$14 millionDrone manufacturing

PACCAR Columbus100 $209.4 million Automotive

Raytheon Forest100$50 million Aerospace

Saylor Wheel Greenwood145$23.4 milliontire and steel wheel assemblies

Skydweller Aero Kiln36$55 million solar-powered uncrewed aircraft

Expansion

Mississippi’s $12 Billion Milestone Month

GET MIGHTY.

In January, Mississippi announced two high-tech economic development projects worth $12 billion. Amazon Web Services is investing $10 billion to open two data centers that will employ 1,000 Mississippians; and a nearly $2 billion electric vehicle battery joint venture by Accelera by Cummins, PACCAR and Daimler Trucks & Buses is creating 2,000 high-paying, highly-skilled jobs.

Mississippi was able to keep these forward-thinking companies moving faster because we have been clearing this path for years. From site selection to permitting to incentives, our leaders and municipalities come to the table together and get it done quicker so companies that prioritize speed to market get goods to consumers in record time.

This is much more than a $12 billion month. This is movement. And it’s full speed ahead. Mississippi is empowering businesses, our economy and our people. Get on board. Get mighty. Mississippi.org

SOUTH DAKOTA

Methodology

Area Development’s annual Shovel Awards recognize states for their achievements in attracting high-value investment projects that will create a significant number of new jobs in their communities. We asked for information from all 50 states about their top jobcreation and investment projects announced or initiated in 2023. Based on a combination of weighted factors — including the number of new jobs to be created in relation to the state’s population, the combined dollar amount of the company investments, the number of new facilities, and the diversity of industry represented — five states achieving the highest weighted overall scores were awarded Area Development’s Gold Shovels in five population categories: fewer than 3 million, 3+ to 5 million, 5+ to 8 million, 8+ to 12 million, and 12+ million. The runners-up in each of the above population categories were awarded Silver Shovels. This year, just one state was awarded our Platinum Shovel award in recognition of the fact that the state went beyond the Gold standard for job creation and investment. One state also won the Green Shovel award for an overwhelming focus on Clean Tech and Renewable Energy projects.

And finally, South Dakota also earns a Silver Shovel, led by a multimilliondollar expansion at the 3M plant in Brookings. The plant makes medical and surgical products and has been around for decades, and the $468 million expansion will add manufacturing space, warehousing and other amenities. Wilson Trailer is expanding and adding jobs, and the state is gaining jobs across a number of agricultural projects, such as High Plains Processing, Norway Pork, Redstone Dairy, SFP and Sonstegard Foods. Expansions are also happening in the manufacturing of everything from engineered trusses to RV skirts to gear for outdoors enthusiasts.

Silver Shovel Winner

Managing Supply Chain Disruptions From the Baltimore Bridge Collapse

Supply chain disruptions from the Baltimore bridge collapse prompt innovative solutions and renewed focus on resilience, as companies leverage lessons from the pandemic to navigate the crisis and ensure continuity in one of the busiest ports in the U.S.

By Grant Miller, SIOR and Don Moss, SIOR, CCIM at Colliers

Just as supply chains began to normalize from the unprecedented COVID-19 pandemic, shockwaves were sent through the logistics industry with the March 26 tragedy involving the collapse of Baltimore’s Francis Scott Key Bridge. Companies faced significant challenges as critical transportation routes were severed, leading to disruption at one of the busiest ports in the United States. However, innovations and strategies were tapped, as lessons learned from the pandemic, to ensure resiliency and minimize impact.

As a key port of call for bulk commodities, automobiles, construction and agricultural equipment, ripple effects were to be felt by a multitude of companies that depend on the Port of Baltimore for meeting customer demands and maintaining their operations. Supply chain managers and shippers were once again sent into crisis management mode to find solutions.

a response protocol and associated training requirements corresponding to each event.

In the aftermath of the Francis Scott Key bridge collapse, companies with contingency and crisis management plans put them into action. Communication, quick decision-making and adaptability were critical to keep businesses operating and minimize exposure to their day-to-day operations.

In 2021, contingency planning gained unprecedented significance when supply chain managers and executives faced the supply chain issues of the pandemic and the obstruction of the Suez Canal by a cargo ship. These pivotal events necessitated the development of comprehensive preparation and mitigation plans for future interruptions.

Brewster Smith, head of supply chain solutions with Colliers says, “firms should draft and annually review a ‘Disaster Recovery and Business Continuity Plan,’ which provides the tactical and logistical instructions for all employees to follow in the context of natural disasters, terrorism, infrastructure disablement and any other asymmetric disruptions.” Within the plan, a ‘Risk Assessment Model’, senior management would document the top five to ten risk events and then develop

Due to transportation routes being blocked, companies were forced to find solutions in rerouting their products and learn just how effective and resilient their contingency plans were. Utilizing alternate modes of transportation which included rail and additional trucking became essential to continue the flow of goods to their destination points. (Due to the type of cargo involved at the Port of Baltimore, air transport was not an effective mode of transport.) While these alternatives come with price hikes and delays in lead times, they allow supply chains to move and meet commitments.

In addition to utilizing different modes of transportation for moving products, the utilization of alternate routes and ports serves as another means to lessen the impact of disorder and create flexibility within the supply chain. The recent capital investments to most of the ports along the East Coast served as essential to take and transfer cargo bound for the Port of Baltimore. According to the state of Maryland, the Port of Baltimore handles the majority of the U.S. East Coast market’s share of roll on/roll off cargo annually which is expensive to move, accommodate and requires special care. Therefore, having the flexibility to reroute such cargo to ports in Savannah, Norfolk and New York was imperative in keeping commerce active and moving.

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Wisconsin lives to help all sorts of companies find their version of success. From site selection through construction, opening and expansion, we provide support to ensure your client’s vision becomes reality. After all, their success may inspire other companies to relocate or expand here, too.

That’s how we look forward.

Collaboration is a foundation for resilience. When companies, industry associations, governmental agencies and communities decide to forgo differences and work together in sharing and supporting each other through crisis, both pain and strain are alleviated, and it serves to expedite the restoration process.

Innovation was spurred in the aftermath of the bridge collapse as new and creative solutions were sought to overcome and navigate challenges. As technology continues to advance, such as real-time ocean traffic monitoring, issues now can be resolved quickly albeit at monetary costs and delays. Interoperability, which entails the seamless exchange of information among stakeholders in a supply chain network, is another innovative way whereby problems can be resolved promptly. An additional approach within the realm of innovation is utilizing generative AI in tracking the possession of cargo through the supply chain network. According to a report by Accenture, “This rising technology has potential for the entire supply chain, from design and planning, to sourcing and manufacturing to fulfillment and service.” Future innovations will continue to lay the groundwork for supply chains to be more resilient and flexible.

Resiliency in supply and demand management can also lessen impacts from unforeseen events. In an

expert brief by the Council on Foreign Relations, the author cites several ways to strengthen resilience within the supply chain from the supply side: “Unexpected supply disruptions can be cushioned by maintaining an appropriate level of excess inventory, creating emergency stockpiles or strategic reserves, diversifying supplier sources and manufacturing facilities and preserving spare production capacity.”

As contingency plans have taken shape and the immediate crisis subsided, supply chain professionals will now turn their attention to future planning and preparedness. Having conducted evaluations to assess how effectively their plans worked and then identifying areas for improvement will provide invaluable insight going forward. The lessons learned should be incorporated into future risk management strategies and plans.

The Baltimore bridge tragedy is an abrupt reminder of how vulnerable global supply chains are and the importance of being prepared when faced with unexpected events and disruptions. While causing significant impacts, it challenged companies to continue to better their plans in resiliency, collaboration and innovation. Insights gleaned from the bridge collapse offer valuable lessons in improving these plans, whereby companies will emerge stronger and have a blueprint for navigating future disruptions with agile supply chains.

GLOBAL REACH

The CHIPS and Science Act will bring jobs back to the United States

Amidst global shifts and challenges, the U.S. policy is injecting billions to reclaim a stronger position in semiconductor manufacturing and aiming to revitalize a critical sector by 2030.

By Francesco Renna, Director of Consulting and Senior Labor Economist at Chmura Economics and Analytics

The United States dominated global semiconductor production in the 1980s and early 1990s with companies like Intel, IBM, and Texas Instruments leading the way. About 37 percent of the world’s chip were manufactured in U.S.-located fabrication plants (fabs) in 1990. While most chips and silicon wafers are still designed in the United States, their production has shifted significantly to East Asia, leaving the United States with only 12% of the world’s chip manufacturing in 2020.

A combination of COVID-era supply chain disruptions and growing geopolitical tensions with China has prompted the Biden administration to pass the bipartisan CHIPS and Science Act, which aims at boosting the nation’ competitiveness in the market for semiconductors. Under the act, the U.S. government is making $52.7 billion available to fund semiconductor manufacturing from 2022 to 2026. Additionally, the act is offering $24 billion worth of tax credits for chip production and

$3 billion for programs aimed at leading-edge technology.

The goal of the act is to raise U.S. capacity in chip production to 20% of the global market by the end of the decade. The program is expected to bring back some of the 100,000 jobs lost since 2001 when the sector employed almost 300,000 workers. The employment loss was not uniform across states. As shown in the accompanying map, most states have lost employment in the sector, but a few have grown from 2001 to 2023.

Several firms have already benefitted from the CHIPS and Science Act:

•Intel has been granted $8.5 billion to help fund its $100 billion investment across four projects in Chandler (AZ), Rio Rancho (NM), New Albany (OH), and Hillsboro (OR). The company is eligible for an additional $11 million in government loans and related tax credits. These projects are expected to bring more than 10,000 manufacturing jobs. Intel has committed to spend $50

The total amount of funds available to bolster the US microchip industry $52.7 billion

The opportunities created by the CHIPS and Science Act have the potential to intensify the level of concentration since most projects so far are expansions of existing fabs.

Employment Change

-29,330 4,607

Source: Chmura Economics and Analytics

million on workforce development initiatives such as the semiconductor manufacturing program in partnership with Maricopa Community Colleges.

•Samsung Electronics: The US government has agreed to provide up to $6.4 billion to support Samsung’s expansion in Taylor, Texas with a goal of establishing a comprehensive semiconductor manufacturing ecosystem. Samsung plans to invest more than $40 billion in this project, which is expected to create over 20,000 jobs.

• Taiwan Semiconductor Manufacturing Company (TSMC): TSMC is set to receive up to $6.6 billion in direct funding and an additional potential $5 billion in loans to support its manufacturing capabilities. This funding aims to enhance TSMC’s production capacity in the United States as part of efforts to secure the semiconductor supply chain and boost domestic manufacturing.

• Micron Technology: Micron has been granted up to $6.1 billion to support the construction of new manufacturing facilities in Clay, New York, and Boise, Idaho. These sites will focus on producing DRAM chips, with plans including the largest cleanroom space ever announced in the U.S. and significant investments in workforce training and development.

• GlobalFoundries received about $1.5 billion to fund three projects: two in Malta (NY) and one in Burlington (VT). These investments are expected to create 1,500 manufacturing jobs. The proposed preliminary memorandum also includes $10 million dedicated to workforce development funding.

• Microchip Technology Inc. received $162 million to modernize and expand two projects, one in Colorado Springs (CO) and one in Gresham (OR).

• BAE Systems received $35 million to quadruple the production of critical chips for several defense programs in Nashua (NH).

Semiconductor and related device manufacturing is highly concentrated with 22 states having 250 or more workers employed in semiconductor and related device manufacturing in 2023, and only four have more than 10,000 workers. The opportunities created by the CHIPS and Science Act have the potential to intensify the level of concentration since most projects so far are expansions of existing fabs.

Semiconductors.org

https://www.semiconductors.org/turning-the-tide-for-semiconductor -manufacturing-in-the-u-s/

Figure 1: Employment for semiconductor and related device manufacturing from 2001 to 2023 declined in most states

336,000

TALENT

Calling forManufacturers America’s New Tech Hubs Are

One of the main questions facing the new program is about funding. Can $500 million help change the backbone of American manufacturing?

By Area Development Research Desk

In a move designed to bolster innovation, economic competitiveness, and national security, the United States has unveiled 31 Regional Innovation and Technology Hubs (Tech Hubs) under the auspices of the CHIPS and Science Act. This initiative, announced by President Joe Biden and Secretary of Commerce Gina Raimondo, seeks to propel the country to the forefront of global leadership in crucial technological sectors, including semiconductors, clean energy, biotechnology, and artificial intelligence.

The program aims for a significant funding pool of $10 billion, though initially, it has received only $500 million from Congress. This has set the stage for intense competition among the hubs for the first round of grants, which could amount to as much as $75 million each. The limited pool of initial funds means the program will have to make some tough choices among it’s 31 applicants.

“One of the challenges really is the budget,” Eric Smith, the Director of Tech Hubs, told Area Development Magazine. “We are pretty constrained in the number of these hubs that we can select right now.”

Despite these constraints, the program’s structure is designed to maximize impact by fostering collaboration across academia, government, industry, and the workforce. Nearly 200 private businesses have already joined as consortia members, positioning these hubs as dynamic centers for innovation and economic growth.

The hubs focus on a variety of technological areas, each chosen to push forward specific advancements:

• Autonomous Systems: Developing cutting-edge technologies for drones and autonomous vehicles.

• Quantum Computing: Revolutionizing computing power and security capabilities.

• Biomanufacturing: Utilizing biological processes to create sustainable industrial products.

• Precision and Predictive Medicine: Innovating in healthcare to tailor treatments to individual genetic profiles.

• Energy Transition: Accelerating the shift to renewable energy sources.

• Critical Mineral Supply Chain: Strengthening the availability of essential materials for high-tech industries.

• Semiconductor Manufacturing: Boosting domestic production to reduce foreign dependencies.

• Materials Manufacturing: Pioneering in materials science to develop more efficient and durable materials.

Clustered hubs aren’t a new concept, and organizing regional hubs has big benefits for new manufacturers.

“One of the bigger pros of TechHubs is how they foster startups,” said Francesco Renna, Director of Consultation and Senior Labor Economist for Chmura Analytics. “ Startups are the engine of innovation but can struggle with higher failure rates in some environments. Luckily, these Tech Hubs nurture startups and provide them with the resources, mentorship, and networking opportunities they need to thrive.”

An essential component of the hubs’ governance is the POWER framework, which emphasizes Partnerships, Organization, Workflow efficiency, Economic impact, and Resource optimization. This structured approach ensures that hub activities are aligned with broader economic strategies, offering a competitive edge to manufacturing executives looking to innovate or expand. Effective governance within these hubs fosters internal efficiency, enhances external communication, and ensures sustainable resource management.

For manufacturing executives, the strategic decision to position operations within or near these hubs can be advantageous. These hubs offer access to innovative technologies, specialized talent pools, and potential public and private partnerships. Such strategic placement is

EDA Designates Two Tech Hubs in Illinois

Program spurs technology development, innovation, and economic growth within dynamic quantum and biomanufacturing industries

Illinois is home to two of the U.S. Economic Development Administration’s (EDA) Tech Hubs. Designed to drive technology and innovation growth by strengthening a region’s capacity to manufacture, commercialize, and deploy critical technologies, the program was enacted as part of the CHIPS and Science Act of 2022 and will receive $10 billion in funding over five years.

Illinois was chosen for two of the nation’s 31 Tech Hubs because of the state’s transformative position in both quantum computing and biomanufacturing. iFAB and Bloch Quantum Tech Hub were designated Tech Hubs out of nearly 400 applicants based on their innovation and economic growth potential.

iFAB — Illinois Fermentation and Agricultural Biomanufacturing

iFab is growing Illinois into a bestin-the-world hub for fermentation manufacturing, a burgeoning industry. The iFAB consortium consists of 31 members, including academic institutions, economic development corporations, industry partners, and government agencies, and is run out of the Integrated Bioprocessing Research Lab (IBRL) at the University of Illinois Urbana-Champaign. iFAB’s mission is to scale precision fermentation to con-

“Biomanufacturing has enormous potential to impact the economy of the U.S. in the coming years, growing to a $200 billion market by 2040,” said Beth Conerty, associate director of IBRL and regional innovation officer for iFAB.

vert underutilized corn and feedstocks in the state into high-value, customized alternative proteins, food ingredients, and other materials that will serve a variety of industries.

“Biomanufacturing has enormous potential to impact the economy of the U.S. in the coming years, growing to a $200 billion market by 2040,” said Beth Conerty, associate director of IBRL and regional innovation officer for iFAB. “We plan to capitalize on this economic opportunity and bring economic development and national recognition to the region.”

The Bloch Quantum Tech Hub

The Bloch Quantum Tech Hub leverages the region’s strengths, talent, and existing economy to speed the adoption of quantum technologies across a broad range of industries. Its coalition of academic and government partners are led by the University of Chicago’s Chicago Quantum Exchange (CQE), a research center dedicated to advancing the science and engineering of quantum information. Quantum discoveries have the potential to help virtually every industry, especially telecommunications, pharma, and artificial intelligence.

The Bloch Quantum Tech Hub is further supported by several National Quantum Information Science Research centers in the Chicago area, Argonne

National Laboratory, and Fermi National Accelerator Laboratory. Quantum businesses continue to move into the area, creating a dynamic, interactive research cluster.

“The Bloch will capitalize on the deep partnerships that the CQE has fostered across industry, government, and academia,” said David Awschalom, director of the CQE. “This project not only propels the U.S. to the forefront of quantum research, but also nurtures the next generation of quantum scientists and engineers.”

Innovation and Opportunity

In addition to driving scientific discovery, Tech Hubs will stimulate considerable capital investment in key sectors across the country. This includes international stakeholders that want to establish their own facilities and find research and partners within the hubs.

“The presence of two tech hubs in Illinois shows the breadth and versatility of the state’s economy,” said Conerty. “Combined, they will provide an enormous opportunity for growth and excellent jobs for Illinois residents, as well as exemplify the research strengths of different parts of the state.”

This article was written for Intersect Illinois which sponsored and approved this post.

Fermentation suite at IBRL

Leading in Tech and Innovation

Infrastructure & Education

#2 for infrastructure and education (CNBC)

Top 10 in nation for STEM graduates

#1 in Midwest for IT workforce

Global Powerhouse

World’s 18th largest economy

$1 trillion GDP

R&D Hub

5 federal labs including Argonne and Fermilab Research universities spend $3 billion+ (2022)

Among top in nation for private sector R&D

Interested in growing your business in Illinois? .org

Argonne National Laboratory

Headwaters Hub (Montana)Safe and Effective Autonomous Systems

American Aerospace Materials Manufacturing Hub

Intermountain-West Nuclear Energy Tech Hub (Idaho, Wyoming)

Heartland BioWorks (Indiana)

iFab Tech Hub (Central Illinois)

Minnesota MedTech 3.0 (Minnesota, Wisconsin)

Wisconsin Biohealth Tech Hub (Wisconsin)

Sustainable Polymers Tech Hub

Pacific Northwest Mass Timber Tech Hub

Corvallis Microfluidics Tech Hub (Oregon)

Nevada Lithiium Batteries and Other Ev Materials Loop

Trustworthy & Equitable Autonomous Systems Tech Hub (Oklahoma) gravida. Risus commodo viverra maecenas accumsan lacus vel facilisis.

Kansas City Inclusive Biologics and Biomanufacturing Tech Hub (Missouri, Kansas)

Texoma Semiconducter Tech Hub

Birmingham Biotechnology Hub (Alabama)

Gulf Louisiana Offshore Wind Propeller (Louisiana)

Critical Minerals and Materials for Advanced Manufacturing Tech Hub

increasingly valuable as companies seek to mitigate risks associated with global supply chain disruptions and to remain competitive in rapidly evolving markets.

Brent Omdahl, Senior VP of Government Affairs at at GlobalWafers America – a member of the Texoma Hub -- praised the collaborative progress:

“The fact that all of these different entities — companies, economic development organizations, universities, political leaders — are all moving in the same direction is an accomplishment in and of itself,” Omdahl said.

However, the hubs also face challenges, including limited funding and the complexity of managing diverse consortia. Effective collaboration and alignment among various stakeholders are required to overcome these hurdles and achieve the goals set forth by the initiative.

Regions such as Baltimore have already begun to see benefits, with collaborations between academic institutions and industries driving investments and enhancing the economic landscape. The establishment of facilities like the Data Science and AI Institute at Johns Hopkins is a testament to the potential impact of these hubs.

Similarly, New York’s CenterState region has attracted a $10 billion pipeline of capital investment, focusing on sec-

Advanced Gallium Nitride GaN Tech Hub

SC Nexus for Advanced Resilient Energy

South Florida Climate Resilience Tech Hub (Florida)

Forest Bioproducts

Advanced Manufacturing Tech Hub

ReGen Valley Tech Hub (New Hampshire)

Ocean Tech Hub (Rhode Island, Massachusetts)Safe and Effective Autonomous Systems

New Energy New York Battery Tech Hub (New York)

New York Smart I-Corridor Tech Hub

Greater Philadelphia Region Precision Medicine Tech Hub (Pennsylvania, Delaware, Maryland, New Jersey)

Baltimore Tech Hub (Maryland)

Advanced Pharma Manufacturing Tech Hub (Virginia)

PRBio Tech Hub (Puerto Rico)

tors like semiconductor and electric vehicle manufacturing, boosted by the strategic support of the Tech Hubs initiative.

As the Tech Hubs prepare for the next phase of funding this summer, anticipation is building among stakeholders. The strategic allocation of funds to the most promising hubs will be crucial in transforming these plans into impactful realities. Looking forward, a proposed $4 billion budget for fiscal year 2025 suggests a robust commitment to expanding the initiative, potentially enabling the designation of additional hubs and further support for regional innovation.

This comprehensive initiative not only aims to transform regional economies but also to reinforce the United States’ position at the forefront of global technological innovation. For manufacturing executives, these hubs represent a pivotal opportunity to be at the center of innovation, where the synergy of academia, government, and industry is likely to ignite regional and national economic rejuvenation. The opportunity may be worth exploring for manufacturing executives.

“They obviously need to be aligned, and committed to the strategy, but if you’re a manufacturer, and you’re interested in one of these hubs, if this is your technology focus, if you’re in that region, you should get involved,” Tech Hubs director Smith said.

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Why You Need to Know the Three GEOs of FDI

Exploring the forces affecting Foreign Direct Investment into the United States and how it is affecting current site selection processes.

By Alexandra Segers, General Manager, Tochi Advisors, and Michael Johnson, Shareholder, Baker Donelson

Over the last two decades, the amount of Foreign Direct Investment (FDI) into the U.S. has more than doubled from about $1.26 trillion in 2000 to $5.26 trillion U.S. dollars in 2022.

The countries with the greatest amounts of foreign direct investment in the United States to date are Japan, the U.K., and the Netherlands. British, Japanese, and German companies have created the greatest number of direct jobs.

Geopolitical Situation

There are several geopolitical uncertainties currently influencing global investments. Interest rates are forecasted to fall in Europe and in the U.S. as inflation is seen as likely continuing to decrease. The pending presidential election in November 2024 is creating some uncertainty, however the Inflation Reduction Act (IRA), as well as the Chis Act (UK) still attract and incentivize many foreign companies to consider the U.S. for their new plant locations.

As tension between the U.S. and China grows, reshoring, or the trend of relocating manufacturing facilities in the U.S., has become very popular. Due to the war in Ukraine, energy costs have risen dramatically in Europe. Therefore, many companies, especially those in heavy manufacturing and other substantial energy users are favoring the U.S. for new plant locations. Simultaneously, a continuous flow of Chinese companies, and in particular, battery suppliers for the burgeoning electric vehicle (EV) activities are bringing about an additional wave of FDI to the U.S. Nevertheless, due to the growing political tension, these Chinese investors are facing an increasingly challenging landscape.

Geology

Finding a site which meets the requirements for any kind of manufacturing is a real challenge at the moment. Some states have limited or no inventory for smaller or midsize projects (100 acres and larger).

As lead times for the start of production (SOP ) continue to shrink, available utilities are an ever more critical topic. Water scarcity in the United States is an increasing problem. It is estimated that more than 50% of the Continental U.S. has experienced drought conditions since 2000.

2015

The lead time to obtain transformers is now up to 18-24 months.Fast track permitting is also now on top of the list for many clients.

Renewable energy usage has become a mandatory topic for many clients, and therefore, countries such as Morocco and Egypt, with abundant natural resources, are becoming very popular for new plants. These countries are very innovative in their ability to offer plenty of renewable energy sources. For example, the Renault OEM plant in Tangier (320,000 vehicles/year capacity) is the first zero carbon, zero emission automotive plant. According to the IPCC, industry and their emissions caused by energy consumption are responsible for 31% of global greenhouse gas emissions. Renault is using local biomass: an “olive cake mix” of skins, pulp residues and olive stone fragments. The mixture is continuously burned and sent to their 3 boiler rooms. Even the ash is collected and used as fertilizer by local agriculture. 100% of the plant’s thermal needs is covered by biomass.

In the ASEAN region, Singapore, Indonesia, Vietnam and Thailand are leading the FDI net inflows.

Geography

The latest Houthi attacks on shipping in the Red

Sea show how the global supply chain remains vulnerable to disruption. As a result, many firms are switching to decentralized manufacturing to gain the benefits of:

Greater flexibility and responsiveness Decentralized production can respond much faster to changing customer requests and market trends, as production can be adjusted at each location depending on the necessary steps.

Lower transportation costs — Products can be manufactured and distributed locally, reducing transportation costs and lead times.

Reduced vulnerability to disruptions Spreading production across multiple locations means that problems at one plant can be isolated, minimizing the risk of supply chain interruptions.

Nevertheless, there are also disadvantages, including:

Increased administrative costs Decentralized production requires duplication of many resources, like labor, equipment, and utilities.

Greater difficulty in standardizing product quality

Since production processes are spread across multiple operations, securing consistent product quality can be more difficult.

Greater capital investment

Decentralized manufacturing usually requires greater capital investment, as a new plant must be built, and additional equipment purchased.

The growing tension between the U.S and China already mentioned has also led to challenges for Chinese companies seeking U.S. locations for a new plant. Although the relationship has been contentious for some time, more recent political and economic disputes have resulted in the U.S.’s imposition of substantial tariffs on Chinese imports and on-going spats over China’s failure to protect intellectual property, technology misappropriation, industrial espionage and unfair governmental subsidies for Chinese industry. Chinese investment projects looking at U.S sites now face increased scrutiny. In many recent instances cases, state and local governments have pushed back against these projects, even when billions of dollars and thousands of potential jobs are at stake.

in the United States and certain real estate transactions by foreign persons. It is chaired by the United States Department of the Treasury. The purpose of CFIUS is to determine the effect of foreign investment transactions in the United States on the country’s national security.

Although CFIUS has existed since the mid-1970s, in order to study foreign investment and determine whether it impacts national security, it has been significantly strengthened under the prior and current administrations. Changes in 2018 under the Trump administration were seen as primarily effecting Chinese investment.

Broadly, CFIUS’s role is to investigate proposed mergers, acquisitions, and takeovers where the acquirer is acting on behalf of a foreign government and affects national security. Even a passive real estate purchase transaction may trigger CFIUS review.

COMPANIES FROM AT LEAST 115 DIFFERENT COUNTRIES INVEST DIRECTLY IN THE UNITED STATES, BUT COMPANIES FROM ONLY 10 COUNTRIES ACCOUNT FOR NEARLY THREE QUARTERS OF ALL U.S. JOBS IN FOEs

Numerous American states have completely rejected all Chinese investment projects. Some have passed legislation prohibiting the sale of land to Chinese nationals or Chineseowned companies. Moreover, several states have declined to offer any incentives for even large Chinese-owned investment projects, which would have been unthinkable in the recent past. Additionally, these well publicized anti-Chinese investment policies have resulted in making Chinese companies feel uncomfortable and uncertain whether their new manufacturing facilities will be welcome.

The Role of CFIUS

Source: Brookings analysis of National Establishment Time-Series and Bureau of Economic Analysis data

CFIUS must assess whether a transaction could undermine the protection or integrity of data in storage or databases or systems housing sensitive data; interfere with U.S. elections, U.S. critical infrastructure, the defense industrial base, or other cybersecurity national security; or result in the sabotage of critical energy infrastructure, including smart grids. Foreign investments in the U.S., including acquisitions and real estate transactions, if in certain sensitive technology and critical infrastructure sectors, or in close proximity to military bases or critical supply chains, are subject to review by CFIUS.

CFIUS can review any investment or acquisition that could result in a foreign person acquiring ‘control’ (i.e., the affirmative or negative power to determine important decisions) over any person or entity operating a business in the United States from any other person. With respect to CFIUS review of a proposed transaction, there are both mandatory and voluntary filings.

The Committee on Foreign Investment in the United States (CFIUS), is an interagency committee authorized to review certain transactions involving foreign investment

A mandatory filing is required when a foreign person gains control of or any of the following discrete information or governance rights with respect to a U.S. business that “produces, designs, tests, manufactures, fabricates, or develops” any “critical technology” (i.e., technology con-

trolled in certain ways under US export control laws):

•Access to “material nonpublic technical information” in the possession of the US business.

•A board seat or board observer right.

•“Involvement” in the US business’s “substantive decision-making” regarding “critical technology,” “critical infrastructure” or “sensitive personal data” as defined in the CFIUS regulations.

The regulations also provide for a mandatory filing where a foreign government holds a “substantial interest” in the foreign person investor or buyer. This is often part of the reasoning of local and state governments with respect to Chinese-owned projects, based on the claim that board members and shareholders are members of the Chinese Communist Party.

It is also possible for a foreign person planning a transaction to make a voluntary CFIUS filing. This includes such transactions such as:

•Any transaction that could result in foreign “control” of a U.S. business.

•Transactions which will give rights to a foreign person in a U.S. business in certain critical technologies or infrastructure.

•Certain real estate transactions involving the purchase by, lease by or concession to a foreign person that gives them certain enumerated property rights.

A party to a transaction subject to the voluntary CFIUS filing regime must decide whether to notify CFIUS of their transaction. There are no penalties for not making a voluntary CFIUS filing, it is prudent to seek such review, even if the parties anticipate that it will not be deemed to be a “covered transaction.”

Because CFIUS retains authority to unilaterally initiate a review of such transactions at any time – even years after the transaction has closed – it may subsequently require action to mitigate a deemed national security risk. This could include requiring that unwinding of a transaction, or basically, that it be reversed.

In light of the perceived risks of granting incentives to a Chinese-owned investment project, which could potentially be deemed to be a covered transaction by CFIUS, on several recent occasions, public officials have mandated that foreign investors make voluntary CFIUS filings as a condition precedent for offering economic development incentives. While it is not yet clear what the near- and long-term impact of this current contentious climate for Chinese investments will ultimately be, it may result in Chinese companies looking elsewhere to locate their projects. Other North American locations may be present viable options, however, there are also existing regulatory regimes that may give rise to scrutiny and review of certain foreign investor-owned projects.

Mexico

Foreign investment projects locating in Mexico are

generally allowed without restrictions or the requirement to obtain prior authorization from an administrative agency. Nevertheless, there are certain industry sectors subject to restrictions, including acquiring any equity in Mexican companies engaged in land passenger and freight transport services within the Mexican territory, development banking, and in certain other industry sectors limited solely to Mexican nationals. Foreign investment projects in these sectors may be subject to review and approval.

Mexico has targeted the near shoring of Chinese investment projects which have decided against a U.S. location. It passed the IMMEX legislation (Industria Manufacturera, Maquiladora y de Servicios de Exportación, or Manufacturing, Maquiladora and Export Services Industry) in order to benefit from the current contentious environment for Chinese investments in the U.S., and is consequently winning many Chinese investments and new jobs.

Canada

Although Canada has been generally very receptive to foreign investment, it has its own legislation similar to CFIUS which allows review of such investment projects. The “Investment Canada Act” (ICA) is Canada’s statute that regulates foreign direct investments (FDI) in Canadian businesses by non-Canadians. The Canadian government is authorized to review any transaction (including minority investments) in which there are “reasonable grounds to believe that an investment by a non-Canadian could be injurious to national security.”

The Investment Review Division (IRD) is part of Ministry of Innovation, Science and Economic Development Canada (ISED). The IRD interacts with investors and other parties as part of a preliminary (informal) review of an investment to determine whether there are potential national security concerns. If concerns arise after the preliminary informal review, the matter may be referred to the Cabinet (the Canadian Prime Minister and his appointed ministers, formally known as the Governor in Council), who may order a formal review if the investment could be injurious to Canada’s national security.

The national security review process is supported by Public Safety Canada, Canada’s security and intelligence agencies and other investigative bodies described in the National Security Review of Investments Regulations.

Also similar to CFIUS, foreign person investments that are not subject to mandatory review or notification (such as the acquisition of a non-controlling investment or setting up new Canadian entities that do not qualify as “businesses”) may be notified voluntarily to obtain national security clearance. Even if a non-notifiable investment (no mandatory review), it is potentially subject to review during a five-year period following the investment.

Location Matters to Your Carbon Goals

Exploring how geographical factors influence corporate renewable energy strategies and achievements.

By Tracey Hyatt Bosman, Managing Director, BLS & Co.; Tim Comerford, Senior Vice President, BLS & Co.; Michael Hirou, USA Chief Representative and Manager, Tractus Asia; and Andreas Dressler, Founder, Location Decisions.

More than 40 percent of Fortune Global 500 companies have either announced their intention to reach net-zero emissions by 2030 or have already achieved it, according to Forbes. As businesses navigate the complex array of alternative approaches, they need their location strategy to be aligned with their net-zero strategy.

Virtually all companies, regardless of location, are being pushed to join the renewable energy movement, whether through consumer expectations, employee/stakeholder pressure, direct regulation (particularly in the European Union), indirect regulation by virtue of a threshold presence in a regulated market, or value-chain mandates from customers who themselves are pursuing net-zero.

Companies like Airbus Group, PepsiCo Inc., American Airlines Group Inc., Caterpillar Inc., Canadian Natural Resources Ltd., and Siemens AG are adopting strategic solutions that include carbon-offsetting initiatives, reducing emissions, minimizing transportation’s carbon footprint, collaborating with supply chain partners, and using renewable power sources.

In our work advising companies on location strategy and site selection, we have witnessed a dramatic increase in clients prioritizing location-based variables that affect a company’s ability to achieve net-zero targets, particularly regarding renewable energy options. Each company has its own unique targets, definitions, and priorities and the site selection process must be designed to identify locations well-positioned to help the company meet its objectives.

What renewable energy options are available, and how can they integrate into the site selection process? The answer largely depends on your current location or the prospective expansion area.

A Dynamic U.S. Environment for Renewables

In December 2021, the Biden Administration set a target for federal operations to achieve net-zero emissions by 2050, a goal many American corporations are also embracing, with some even aiming to surpass it. In the U.S., companies are pursuing their renewable energy goals through a variety of on-site generation, off-site generation, power purchase agreements, and renewable energy credits.

This activity has been further fueled by the U.S. Inflation Reduction Act (IRA), which has generated a surge in investment by creating federal funding opportunities for a range of clean energy initiatives, including new and expanded tax credits and grant programs, fuel tax credits, carbon management credits, energy innovation, and more.

The pace of activity has, however, led to challenges with capacity on the electric grid, with utilities struggling to absorb the new generation sources. This has been compounded by the rapid expansion of manufacturing industries in the U.S., leading to multi-year wait times when new interconnections are required.

The push for renewable energy has transformed the role of U.S. power providers from vendor to key strategic partner. U.S. utility providers range in size from small publicly held municipal providers to large investorowned, multi-state providers, and regulatory structures are not uniform across the states, which means each utility partner is unique in its renewable offerings and capabilities. Finding the right site means finding the right utility partner.

Breaking Down Europe’s Priorities

The European Union (EU) also aims to achieve carbon neutrality by 2050, with an intermediate target of reducing net greenhouse gas emissions by at least 55 percent by 2030. Each of the EU’s 27 member states has committed to its own emissions reduction targets by 2030, ranging from a 10 percent reduction in Bulgaria to a 50 percent reduction in Germany, Sweden, Finland, and Luxembourg.

One of the primary initiatives for achieving these goals is the EU Emissions Trading System (EU ETS), which allows large carbon emitters (including energyintensive industries) to purchase carbon credits. As a “cap and trade” mechanism, the ETS establishes a cap on how much CO 2 can be emitted annually. Companies then must buy or trade allowances for every ton of CO 2 they emit.

The ETS is designed to encourage companies to adopt renewable energy since purchasing allowances for carbon emissions from fossil fuels costs more than purchasing renewable energy. Recent reforms are raising the price of CO2 allowances, which is expected to

further spur demand for renewables. In 2023, the EU introduced an ambitious goal of increasing the share of renewables in energy consumption to 42.5 percent by 2030 (compared to 22 percent in 2021).

The combination of stringent regulations and steeply rising energy prices in Europe — not to mention the shock of the war in Ukraine — has resulted in calls for action. In response, efforts are being made to reduce the bureaucracy holding back investment in renewables. Further, the EU allows governments to compensate companies in specific industries for high energy costs, and several governments have implemented programs.

For example, Italy introduced a tax credit to “energyintensive” companies, which was increased from 25 percent to 40 percent of expenditures for energy purchased and used at the end of 2022. Spain and Portugal have introduced several packages designed to subsidize the energy consumption of certain sectors. Germany launched a new “climate and transformation fund” in August 2023, which includes €2.6 billion to compensate companies for high energy costs between 2024 and 2027. These incentives and a careful analysis of utility price differentials among potential sites are valuable in site selection decisions.

Asia’s Renewables Integrations Lead to Higher Environmental Sustainability Considerations

Similar to what’s occurring in other parts of the world, an increasing number of companies operating in Asia are either including environmental sustainability in their initial site selection decisions or restructuring current investments to make them more sustainable.

Asia’s integration of renewables and country commitments for net-zero emissions varies throughout the region. This poses diverse scenarios for location strategy and site selection for multinational corporations with operations and expansion initiatives across Asia and how to

ARDAGH

Netherlands

Packaging company Ardagh is installing on-site solar energy in its plants in the Netherlands, Scotland and Ireland to replace 14,500 MWh of electricity consumption from the grid.

address energy needs while reaching internal sustainability goals. From the two mammoth economies and populations of China and India to the more developed countries of Japan, South Korea, and Taiwan and the divergent economies across ASEAN, it’s a complex environment. That said, the trend toward adopting renewable energy is well established, and companies are pursuing a wide range of strategies to meet their environmental objectives.

Key Takeaways for Site Selection Projects

Confirm Timelines:

No matter the location, as energy demand continues to rise, meeting the needs of regions and companies will depend on continued advancements in grid infrastructure. Backlogs of key infrastructure components have been common in recent years, but so have delays in the required engineering studies and approvals, significantly delaying project timelines.

Articulate

Expectations and Priorities Around Renewables:

Articulating a company’s renewable energy and netzero expectations early in the site selection process allows for the broadest range of strategies possible while ensuring efficient dismissal of locations that don’t align well. Establishing an evaluation/selection process that captures the trade-offs between price (net of incentives), reliability, and suitability is equally important.

H2 GREEN STEEL

Sweden

H2 Green Steel has opened Europe’s first green steel plant in Northern Sweden, which uses green hydrogen (from hydropower and wind) to replace coal in the production process.

COCA-COLA

China

Coca-Cola in China has committed to investing in sustainable development projects in the fields of new products and packaging, carbon reduction and water saving.

MYCOWORKS

United States

MycoWorks, another BLS client, will be accessing 100 percent renewable energy for its new plant in Union, SC through a combination of a large offsite solar array, onsite solar, and hydro power.

HELLOFRESH

United States

BLS client HelloFresh US, has sourced renewable electricity for 100% of its facilities since 2020 though procurement of renewable wind energy in electric deregulated states in which they operate and using RECs in states that are regulated.

JELLY BELLY

Thailand

Tractus client Jelly Belly Candy decided to invest in a new, more efficient chiller system and rooftop solar, which qualified the company for a tax credit equal to the investment from Thailand’s Board of Investment.

LEGO

Vietnam

In its 2021 selection of Ho Chi Minh City, Vietnam, for its first carbon-neutral facility, Tractus client LEGO laid out plans to utilize rooftop solar panels and build a solar farm on an adjacent plot of land to meet its sustainability goals. LEGO aims to reduce their absolute carbon emissions by 37% in 2032.

Getting Power to Projects: A discussion

Guest Editor Bradley Migdal leads an illuminating discussion with Karla T. Moran, Manager of Economic Development at Salt River Project, and Coleman Peiffer, Senior Business Attraction Manager at Alliant Energy, exploring infrastructure challenges and solutions for large-scale manufacturing and data center projects. This conversation has been lightly edited for style and space.

Bradley Migdal: From a utility perspective, what are the typical lead times for transformers and other equipment?

Karla T. Moran: We’re quoting about four years for constructing a substation, mainly due to the long lead times required for transformers and circuit breakers. Especially in our service territory, where data centers commonly exceed 300 megawatts, the demand is massive and comparable to the output of some power plants. They require an obscene amount of power which are similar in size to some of our power plants. The infrastructure requirements and upgrades are extensive to meet these power loads.

Bradley: How do you handle upgrades and discussions with new clients?

Karla: It’s really about two conversations: one about the necessary infrastructure upgrades and another on resource allocation. If a client is new and not included in our existing plans, we must integrate their needs, which complicates timing.

Coleman Peiffer: For significant projects, especially those requiring upgrades like a 345-megawatt transformer, the lead time is about 48-60 months. Smaller transformers are 24-36 months. We can sometimes expedite to about two to three years if the end user commits financially.

Bradley: When should site selection discussions start?

Coleman: The sooner the better, right? The best time to start talking is immediately after identifying potential land. Understanding the site’s power capacity and the timeline for power delivery is crucial. Early discussions help us align on the total power usage and ramp-up period. What we need to know is, what will your total use look like, and then what does that ramp up period look like? That helps us identify if and how we can hit your electrification date.

Karla: In Phoenix, even smaller projects need early involvement due to our rapid infrastructure expansion.

We’re meeting with all our city partners on a regular basis to see if there’s anything that’s going through rezone that we need to be aware of, or if there’s anybody kicking tires on a bigger site, so we make sure we’re part of the conversation. I basically tell anybody, if you’re looking at a site, there will need to be some work and upgrades done because the full power capacity is likely not available.

A game changer for business growth and development

Bradley: What considerations should site selectors have regarding power capacity?

Karla: It’s essential to know if a site can handle the expected load. For projects that align with economic development, we’ve pre-ordered equipment to expedite processes. Manufacturers need precise cost and timeline estimates due to their budget sensitivities.

Coleman: In Wisconsin, we proactively perform power studies to ensure sites are ready within three years, facilitating better site marketing. Historically, we’ve required an end user to request that. We’re going and doing those on our own, so that we can then market the site as something that’s going to be power ready within three years.

Bradley: Looking ahead, what are the prospects for meeting growing power demands?

Coleman: We’re focusing on integrating renewable energy sources like solar and wind with battery storage to meet future needs. This approach helps manage the increasing demands from data centers and advanced manufacturing.

Karla: We’re also pushing for more solar power and exploring long-duration battery storage solutions to handle night-time energy needs, especially for electric vehicles which predominantly charge at night.

Bradley: If you look back into history, have you ever seen these types of demands ever?

Karla: The demand requirements on the data centers is unreal. We do have an AI data center under testing in our market, and it’s very interesting, because it ramps up to double digit megawatts and then just drops. AI technology is changing and challenging market now.

Coleman: A three-to-five-megawatt project, when I started at Alliant six years ago, was a good project. Now every lead I get from an RFP is like 10, 15 megawatts or more.

Bradley: Is there any advice that you can give to the readers of Area Development Magazine, about talking to your power providers and when? What are your parting thoughts?

Coleman: I would say, especially for new industrial park growth or new area growth, as soon as you identify land that you think your community might want to take control over or turn it into a park, you should be talking to your electric utility first, to make sure that there’s power capacity, and infrastructure to get power there. If you don’t have it at that site, the site is not going to be nearly as attractive. If you do have it, and you control the land, you’ve now created somewhat of a unicorn site.

Karla: The data center industry is aware they must be part of the solution. There have been a lot more of these clients willing to work together and be partners. They put billions of dollars and infrastructure in the ground here. They want to make sure that they have power to serve it.

The Bring Your Own Energy (BYOE) Party Is Starting

America is about to shift to decentralized energy and microgrids in a big, big way.

By Courtland Robinson, Director of Business Development for Brasfield & Gorrie

The year was 1882, and the nation’s first central power plant, located at Pearl Street Station in New York City, began generating electricity for 100 customers. At a rate of 24 cents a kilowatt hour, Thomas Edison’s 27-ton machine produced 100 kilowatts, enough to power 1,200 lights.

Pearl Street Station only survived for five years, but it sparked a revolution in large American cities. Throughout the 20th century, power plants emerged across the U.S. promising manufacturers the availability, quality, and affordability of power they needed. It was as if someone started an energy party with a cash bar.

Innovation boomed, and by the turn of the century America was abuzz with cutting-edge technology, like electric street cars, telephones, light bulbs, and refrigerated box cars. Industrial equipment began to reshape commerce along with the human experience. Dispatchable power generation was the key.

In 2024, it’s a different world. The limitations of dispatchable power are being tested by this era’s cutting-edge technology, and the global theater for energy is being reshaped by a barrage of twenty-first-century economic and socioeconomic forces. Industries, along with the threaded patchwork of power providers that serve them, are realigning strategies at a rate not witnessed since the inception of the electric utility.

Change is necessary. With nearly seven billion smartphone users accessing mobile apps, streaming services, and on-demand AI assistants, there is an insatiable requirement for more computing power and data centers. Edison’s Pearl Street Station could only offer enough electricity to run a few cabinets in one of today’s ultra-high-density data centers, and the installations based on the dispatch model are beyond strained.

Locally controlled microgrids might be the answer. Microgrids can supplement — and maybe one day replace — the large power plants strung across vast transmission networks that we refer to as the electric grid. Exciting engineering breakthroughs in next-generation energy systems have already enabled a growing share of companies to create these supplementary systems to help secure their energy future. They’re bringing their own to the energy party.

As the clean energy inflection point becomes clearer, more and more site selection and facility strategists are looking past the cash bar and are adopting a BYOE approach, too.

A Business Case for the Decentralization of Energy

Onsite power generation, or the production of energy at the point of use, is hardly a new concept. Missioncritical systems and industrial facilities have long since turned to onsite energy solutions for contingencies such as emergency backup power, redundancy beyond the scope of local utility providers, and broad reaching protection from consequences of being tied to the wider electric grid. In many cases, revenue streams also exist if surplus power is sold back to the grid.

But with global volatility and weather disasters on the rise, manufacturers, data centers, healthcare facilities, financial services, telecommunications, public safety systems, and other sectors have taken this BYOE approach to location and operational decision-making in order to achieve better control of their energy. These companies have unique reliability standards required of them. Many are partnering with increased frequency with utility companies to design bespoke, cuttingedge energy solutions for a growing share of large energy users.

Cloud-based business adaptations and data-driven manufacturing processes responding to today’s digital economy have a lower tolerance for power vulnerability, forcing even those without robust carbon-reduction goals to consider sustainable, adaptable, and in many cases carbonfree energy solutions.

While onsite battery systems, generators, and fuel reserves were traditionally planned with power outages in mind, more robust solutions are now being deployed within industrial settings to offset transmission and generation constraints, hedge against fuel costs and pricing sways through peak shaving methods, and chip away at long-term carbon-emission strategies. Presently, certain U.S. energy portfolio shortfalls are further encouraging the adoption of microgrid systems that can satisfy greater electric demands. Powering these microgrids are energy technologies such as battery storage, combined heat and power, thermal storage, solar, water, and wind, with newer solutions such as small nuclear reactors (SMRs) under development.

Energy sovereignty and security are among the most encompassing drivers and intrinsically valuable benefits of a decentralized grid. Separation not only allows users to curate their own energy portfolio. It also shields microgrid

adopters from damaging weather, climate, and security concerns associated with the wider U.S. grid. NOAA reported 28 separate billion-dollar weather and climate disasters that impacted the U.S. in 2023. At the same time, the digitization of the economy has incentivized U.S. adversaries to target critical infrastructure through physical and cyber plots. Asset intelligence firm Armis recently reported that cyberattacks on utilities increased by more than 200 percent in 2023, with overall cyberattacks increasing by 104 percent.

Another benefit is the mix of alternative energy sources inherent to a microgrid. Millennials and Gen-Z have begun to seize control of the world’s largest consumer markets. They’re the chief patrons of service providers and manufacturers around the world, and these value-based consumers’ behaviors are increasingly shaped by carbon considerations.

Data released by the federal reserve shows that trillions worth of assets will change hands from one generation to another with every coming decade. The companies that court them, and others within their orbit, are positioning to appeal to a much different customer.

Corporate energy strategists must now appeal to these customers while dealing with the fallout of transmission constraints and a strained U.S. energy regulatory environment.

Behind the Meter, Ahead of the Curve

The capital considerations associated with these infrastructure challenges have attracted record levels of overseas investment and private equity aimed at renewable generation, grid modernization, next-generation feedstocks, and onsite energy solutions for industrial customers.

Whirlpool Corporation recently announced an agreement with One Energy to add onsite wind and solar power at its Findlay and Clyde, Ohio, operations, becoming one of the largest behind-the-meter renewable energy projects in the U.S. The onsite installations will supply 22 percent

of the electrical needs for the facilities while ensuring the washing machine and dishwasher manufacturing operation receives at least 70 percent of its needs from onsite renewable generation. The project is supported by the Industrial Assessment Centers (IAC), a grant program funded by the Bipartisan Infrastructure Law.

A planned SMR at the Surry Green Energy Center in Virginia, and Fidelis New Energy’s hydrogen project and data center campus in Mason County, West Virginia, are just two recent examples of mission-critical projects planned with next-generation energy and infrastructure investments. Colocating with large dispatchable nuclear generation, Amazon announced last year that it plans to build a 1.7-millionsquare-foot campus in Louisa County near the 1.79 GW North Anna Nuclear Plant. Uniquely positioned to be lifelong partners, nuclear generation and data centers are joining together to satisfy AI’s lust for power density.

Holcim AG, a global $40.5 billion market cap producer of concrete, is supplying data center operators like Amazon Web Services with lower-embodied carbon concrete. Materials like these contribute to AWS’s sustainable design standards, in line with their pledge to reach net-zero carbon emissions by 2040. To support these efforts, Holcilm U.S. recently announced the addition of a 25 MW solar field array to be installed at its Alpena, Michigan, plant. The solar installation allows the plant to self-generate 75 percent of its power needs. Similarly, the company added a 40MWh battery storage system in Colorado and wind generation in Ohio, stating it is evaluating on-site renewables at other U.S. manufacturing sites.

Earlier this year, DOE-funded Controlled Thermal Resources broke ground on a combined geothermal power plant and lithium extraction project at California’s Salton Sea. The project will begin to hedge against the country’s growing dependence on foreign lithium,

a mineral that is currently central to the nation’s clean energy transition. According to the U.S. Energy Information Administration, California, Nevada, Utah, Hawaii, Oregon, Idaho, and New Mexico — in that order — lead the country for geothermal electricity generation. Outside of bulk electricity generation, geothermal heating and cooling solutions are being used for different industrial applications like pulp and paper processing, and food dehydrating.

While these pioneers are investing in cutting- edge energy solutions, other exciting energy technologies still under development are positioned to further disrupt the traditional electric grid construct, and likely embolden the BYOE approach within the first half of the century.

Energy Advancements Disrupting Industrial Location Strategies

SMRs are a popular concept for future industrial applications. These nuclear reactors carry generation capacities up to 300 MW per unit by definition. Larger SMR designs could amount to roughly one-third of the generation capacity of traditional reactors. Conceivably, each module is constructed in a factory environment and shipped to the point of use. In addition to augmenting the power sources of individual users, SMRs will inevitably be well-suited to deploy and integrate across the country’s vast transmission network. Decommissioned coal facilities and other outdated sites tethered to critical intersections of transmission infrastructure will be suitable homes for SMRs.

NuScale, one of the leaders in SMR design, almost had the first one in commercial service in the U.S, before a setback in Utah created some uncertainty. The Nuclear Regulatory Commission had given approval to its 50 MW design. Opinions vary, but most experts now say the U.S. premiere of SMRs is likely to happen somewhere in the early to mid 2030s. Proven commercial operations in the country are still desperately needed.

Clean hydrogen enthusiasts, especially the Bipartisan Infrastructure Law funded hydrogen hubs across the countr y, are closely watching the rollout of federal guidance required to subsidize billions of announced yet pending investments. That has not stopped early adopters like Amazon from deploying its own onsite solutions. Plug power, a New York headquartered developer of hydrogen fuel systems, recently announced the installation of its electrolyzer system (splitting water with electricity) at Amazon’s Aurora, Colorado, fulfillment center. The one MW green electrolyzer will be used to fuel hydrogen powered forklifts and will aid in the company’s robust ESG goals. Onsite electrolyzers are largely viewed as a necessary milestone in the adoption of hydrogen fuel sources, as the energy it takes to simply liquify, store, and transport hydrogen has significant carbon consequences itself.

New designs for long duration energy storage systems (LDES) also serve as future disruptors for industrial facility

Types of Alt Power That Could Appear on a Microgrid

Battery storage: Stores electrical energy for use at times of high demand or when the generation from other sources is low. It helps in balancing the grid and providing backup power.

Combined heat and power (CHP):

Generates electricity and captures the heat that would otherwise be wasted to provide useful thermal energy, such as steam or hot water, which can be used for heating, cooling, or industrial processes, enhancing overall efficiency.

Thermal storage: Accumulates heat energy for later use, which can be helpful in balancing energy supply and demand, especially in conjunction with intermittent renewable sources like solar power.

Solar power: Utilizes photovoltaic panels or solar thermal collectors to convert sunlight into electricity or heat, providing a clean and renewable source of energy.

Waterpower: Includes hydroelectric power generated by harnessing the energy of flowing water, such as from rivers or smallscale hydro installations, which can provide a consistent and reliable source of energy.

Wind power: Employs wind turbines to convert wind energy into electrical power, offering a renewable and variable source of energy that can be particularly effective in windy areas.

Small nuclear reactors (microreactors):

Represent a newer solution in microgrid configurations, providing a compact, scalable, and reliable source of low-carbon energy, capable of producing significant amounts of continuous power.

Hydrogen electrolyzer system: Uses electricity to split water into hydrogen and oxygen in a process called electrolysis. The produced hydrogen can be stored and used as a clean fuel or converted back into electricity through fuel cells, providing a sustainable and flexible energy storage and generation solution.

considerations. The limitations of today’s battery storage systems present huge challenges for building highly efficient, sustainable, and resilient renewable onsite systems. LDES systems will ultimately play a pivotal role in the storage and dissemination of multiple energy generation sources, including proven industrial renewable strategies such as solar, hydro, and wind.

Cardinal Implications for Industrial

Robust onsite power technology solutions will impact the industry and the country in great and myriad ways. Its wide adoption will inflate investments into new and existing industrial facilities. It will rewrite credit and incentive strategies, monetize energy assets, flood utility rate cases with new behind-themeter programs and economic development riders, and challenge the conventional producer-supplier-consumer energy model.

Microgrids and onsite generation tech will require more design-build expertise, bringing increased complexity but eventually more flexibility to industrial real estate considerations. Modular energy designs will take hold across more industrial market segments, bring life to outdated manufacturing facilities, and eradicate others. Federal and state energy policies will be challenged to keep pace with superior technologies, construction workers will have to reskill, new energy export markets will develop, and electric power equipment manufacturing will be tossed into the energy sovereignty contest and dissected on the political carving table.

It’s true that dispatchable and utility-scale energy investments are still being proposed across the country, but they are designed as bridging strategies, new generation projects intended to ease into a federally regulated renewable future. Yes, new natural gas fired plants are being sited, coal plant decommissioning is being delayed, and aging nuclear fleets are being granted an extended shelf life. But as the country’s voracious appetite for energy increases and the backlog of committed generation swells, a digitally transformed business community feels cornered, frightened, emboldened, and gradually capable of a more autonomous energy future.

More and more are going to bring their own energy, and that’s going to have a transformative effect on the country’s energy infrastructure.

Courtland Robinson is the Director of Business Development for Brasfield & Gorrie, and leads initiatives for the company’s Mission Critical and Industrial Market Sectors. Courtland most recently provided powerintensive site selection consulting services for Duke Energy, a Fortune 500 energy holdings company in the U.S, and his career spans local, regional and state economic development.

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Last WORD

By Brad Migdal

WELCOME TO THE GREAT ELECTRON RACE

Area Development invited editorial advisory board member Brad Migdal from Cushman & Wakefield to help put together the issue this quarter.

The old adage, “History repeats itself,” reminds us to learn from the past to avoid repeating mistakes. Throughout America’s history, visionary leaders and innovators like Vanderbilt, Carnegie, and Ford have reshaped our way of life, as depicted in the miniseries “The Men Who Built America.” This documentary illustrates how industries such as oil, rail, and electricity transformed the country from the humble origins of the settlers to a new era.

As our country evolved, disruptors emerged, driving innovation and progress. From the introduction of running water and electricity in homes to the transition from radio to television, each advancement pushed us forward, transforming the country into a manufacturing powerhouse. Lavish department stores created by J.L. Hudson and Marshall Field drew visitors to marvel at their architectural beauty.

The pace of change accelerated with the advent of personal computers, evolving from bulky eight-track players to compact discs, revolutionizing data storage and access. Walter Cronkite and Tom Brokaw were primary news sources for many. The 1984 summer was memorable with Cubs games on WGN during the day and Tigers games on radio at night.

The internet redefined com munication and commerce, with dial-up services like Prodigy leading to AOL and instant messaging. Online shopping, initially doubted, gained traction, paving the way for e-commerce giants like Amazon. Smartphones, with multifunctional capabilities, seemed to fulfill every conceivable need.

The world stopped on March 13, 2020, as COVID-19 swept the nation. The pandemic disrupted life but forced innovation and adaptation. E-commerce became a significant part of the solution to social distancing and supply chain issues, with everyone from children to the elderly learning to live on devices. This rapid change led to a labor shortage, prompting companies to turn to automation.

Titans like Bezos and Musk spearheaded advancements in technology, facilitating virtual meetings and streaming. Yet, a new challenge emerged: the demand for energy. Our aging infrastructure struggles to support modern needs, underscoring the urgency of updating our grid and exploring sustainable energy solutions.

As site selectors, our role is to navigate this changing landscape, identifying opportunities and mitigating risks for clients. We advise on critical location factors and partner with the right real estate and public entities to ensure success.

We are in the early stages of the great electron race— a competition between continual innovation for tangible goods versus the demand for a digital society. The question remains: Who will be the next name in the history books? Who will provide the innovation necessary for a new type of energy? In this transitional time, we must mitigate energy supply risks. The search for a manufacturing facility was critical two weeks ago; start now to secure electrons before they are all gone.

The great electron race is underway, and those who innovate and adapt will shape the future of our continually evolving digital society.