Auto/Aero Supplement to the Q3 2021 Issue of Area Development

SPECIAL INDUSTRY REPORT

2021

Challenges Facing the Auto Industry Post-Pandemic Getting the EV Industry Charged Up Preparing for Launch of an Aerospace Business Auto Industry Is Betting on Sustainability U.S. Space Race Propels the Nation to New Heights

A Special Supplement to

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our supply chain prowess

with our skilled & diverse workforce

in our supportive business climate

Georgia’s robust automotive ecosystem is evolving to support the growing demand for electrification.

REA DY FOR WHAT ’ S N E XT Come be a part of the evolution. Georgia.org/Mobility

Table of Contents

Editor’s Note The global pandemic caused disruption in the automotive industry in 2020 — and is still causing disruption because of delays in the supply chain for semiconductors and other parts. In April, analysts were predicting the shortfall in semiconductors could stall U.S. vehicle production by 1.27 vehicles in 2021.

Nonetheless, assemblers and OEMs are still moving ahead with plans for electric vehicles (EVs), which accounted for 7.8 percent of vehicle sales in the first quarter of this year, as compared with just 4.8 percent in Q1 2020. The nation is hoping to shift to 40–50 percent of annual sales comprised of EVs by 2030.1 The ultimate success of this goal, however, depends upon the building of a network of charging stations. The federal government plans to build a nationwide network of EV charging stations, but it may be time for automakers to get involved with the development and construction of these stations as well.

The auto industry is also realizing it must invest in cleaner technology because of its importance to customers and shareholders alike. And sustainability needs to go beyond the car; it needs to go into every step of the supply chain. Some automakers are even asking their suppliers to switch to green energy in their production processes or they will no longer do business with them!

When it comes to technology, nothing speaks louder than the U.S. space race which now includes private investors like SpaceX, Virgin Galactic, and Blue Origin as well as a host of supplier companies. The U.S. Chamber of Commerce estimates that the global space market will increase from approximately $385 billion in 2020 to at least $1.5 trillion by 2040.

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Challenges

Facing the Auto Industry Post-Pandemic

From a lack of semiconductors to a shortage of skilled workers to low industrial vacancy rates, auto companies are facing challenges that are affecting their site and facility plans.

7

Getting

the EV Industry Charged Up

Consumers’ confidence with electric vehicles — and the ultimate success of the EV industry — depends upon the building of a network of charging stations.

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Preparing

for Launch of an Aerospace Business

Aerospace startups, even more so than other companies, benefit from a holistic approach to planning and site selection.

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U.S.

Semiconductor Industry Faces Crises, Opportunities

Incentives to encourage U.S. chip manufacturing would help to alleviate the current global semiconductor shortage, which is affecting the automotive and other industries.

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Auto Industry Is Betting

on Sustainability

The automotive industry and its suppliers are realizing that they must invest in sustainability initiatives because of their importance to customers and shareholders alike.

editor 1

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PUBLISHED BY

Activities involving the development, production, and use of space technologies are spread across the United States.

https://www.dbusiness.com/daily-news/big-three-automakers-to-boost-electric-vehiclecommitment-today-at-white-house/

©2021

U.S.

Space Race Propels the Nation to New Heights

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Challenges Facing the Auto Industry Post-Pandemic

By Patrich Jett, Senior Vice President, Global Automotive Desk Co-Chair, Colliers

From a lack of semiconductors to a shortage of skilled workers to low industrial vacancy rates, auto companies are facing challenges that are affecting their site and facility plans.

With so much velocity in the industrial market, it is hard to imagine that a lack of labor, materials, and available real estate could slow down this momentum — specifically, at a time when there is unprecedented demand for new passenger and fleet vehicles. Can you remember the last time your local car dealership or car rental company had little to no inventory?

The disruption of the pandemic impacted nearly every facet of the automotive supply chain, causing a significant impact on how new projects are being developed and implemented.

BDO’s annual 2021 Manufacturing CFO Outlook Survey1 showed that the number-one factor most critical to the recovery of the manufacturing industry is supply chain stability. Furthermore,

CHALLENGES FACING THE AUTO INDUSTRY

50%

OF CFOS SURVEYED HAVE PLANS TO IDENTIFY ALTERNATIVE OR BACKUP SUPPLIERS

22% OF CFOS SURVEYED PLAN TO RESHORE FACILITIES

BUT projects being slowed by: Sub 2% real estate vacancy rates in most institutional markets

24% rise in construction materials costs 4

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CFOs surveyed indicated that 50 percent had plans to identify alternative or backup suppliers as a result of the supply chain disruption seen during the pandemic, with another 22 percent planning to reshore facilities to the United States.

Automotive OEMs and suppliers are no different, racing to realign supply chains by creating redundancy with suppliers and increasing inventory, much of which is being accomplished through new projects and onshoring to North America. Consequently, many automotive companies are now looking at network and supply chain optimization studies to better understand how to mitigate inventory shortages from a more traditional just-in-time (JIT) model, not just for parts, but also as this relates to long-term project and facility planning.

THE ONGOING SEMICONDUCTOR SHORTAGE WILL CONTINUE TO IMPACT THE AUTOMOTIVE INDUSTRY UNTIL LONG-TERM, DOMESTIC MANUFACTURING SOLUTIONS ARE PUT IN PLACE.

SEMICONDUCTORS IN SHORT SUPPLY The ongoing semiconductor shortage will continue to impact the automotive industry until long-term, domestic manufacturing solutions are put in place to address the shortage of finished product in the semiconductor space, including the production of upstream raw materials needed to produce these critical components. OEMs have been forced to stockpile unfinished vehicles, causing significant demand and driving up pricing for both new and used passenger, fleet, and commercial vehicle inventory. The shock across the economy has, and will, continue to be significant as OEMs struggle to deliver finished vehicles to the market.

This shortage does not just impact the OEMs but has a ripple effect over the entire U.S. economy and transportation sector. It is necessary for OEMs and suppliers to require these critical components to be made in multiple geographic regions, including North America, in order to diversify the supply base as the majority of semiconductors are currently produced in Asia, where most of the raw materials are also produced.

A LABOR SHORTAGE

Making the post-pandemic environment more challenging for automotive OEMs and part suppliers is a major labor shortage, which is impacting almost every sector of the economy and pushing more and more projects into secondary and tertiary markets. The government stimulus package that has paid low-to-moderately skilled workers, in particular, more to stay unemployed than to resume work — although coming to an end — is seen as one of the major drivers of this shortage.

Upward pressure on wages has been seen across the automotive sector with most having to pay higher wages and even provide signing bonuses to attract skilled labor back to their positions. Recent discussions with Colliers and manufacturing employers across the country have shown a trend of higher starting wages that are expected to be permanent and last beyond the effects of the pandemic.

There is also a prevailing trend of companies shifting projects to Mexico and Latin America to reduce labor cost and project overhead but minimize distance to the end market of the United States. Locating projects in these countries carries a whole host of other geopolitical factors that require considerable deliberation and mitigation of risk.

With a tight labor market seen across the country, the only way automotive companies can alleviate labor shortages is to better understand where there is available labor early in the site selection process. Labor analytics can help identify opportunities of capturing or recruiting vulnerable labor cohorts (i.e., those at the beginning of their careers, reducing commuting times, transferability of skills to a different industry sector, etc.) and provide cost comparisons between different submarkets.

Another impact on the labor supply is the “e-commerce effect” — i.e., Amazon and a handful of other online retailers are absorbing a significant amount of the skilled labor and distribution space in almost every submarket, even in second-

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ary markets. The result is a major lack of available labor and existing product both in distribution and manufacturing — exacerbating an already difficult situation for automotive-related projects.

LACK OF INDUSTRIAL SPACE & RISING CONSTRUCTION COSTS

MAKING THE POSTPANDEMIC ENVIRONMENT MORE CHALLENGING FOR AUTOMOTIVE OEMS AND PART SUPPLIERS IS A MAJOR LABOR SHORTAGE.

Even automotive companies that are retooling for electrification and building battery and mobility platforms are cannibalizing many of the available resources. Significant absorption of industrial product remains high, with vacancy rates hovering around the lowest they have been in over 15 years — sub 2 percent in most institutional markets. In addition to a lack of available product, project timelines are continually being depressed requiring delivery in less than six (6) months due to contractual obligations, equipment installation and commissioning timelines, or speed-tomarket requirements. This is ideal when there are numerous existing facilities in a geographic preference, but that is not the case for most projects.

Manufacturers are also challenged by the fact that most of the existing and speculative (SPEC) product that is being built by institutional developers comprises distribution space.

Even distribution space in many institutional markets is challenging to find in less than six (6) months, as much of the new construction is absorbed before the SPEC product is fully constructed, and new SPEC product coming online can easily take up to 12 months to deliver.

Furthermore, many markets are so active and have such a lack of competitive inventory, that many landlords have the opportunity to be more selective with whom they choose as tenants. In reality, this means landlords are providing fewer concessions, only accepting specific uses (even if the use is allowed per the local zoning requirements), requesting detailed financials, and being more stringent about the guarantee provided by the leasing entity. Even more challenging is the fact that many manufacturing facilities, which typically require additional infrastructure, zoning or permitting, also take sub-

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stantially more time to become operational.

Construction cost has also risen significantly over the last 18 months, and in many cases, we are seeing overall construction cost that has risen by more than 20 percent in most submarkets.

April of 2021 Producer Price Index for construction materials was 24 percent higher than a year earlier.2 This is having a substantial impact on project budgets, corporate approvals, and is slowing down project implementation. Industrial rental rates and construction cost are expected to increase for the foreseeable future, but they will stabilize, and industrial users will have to come to terms with the new cost of doing business or find value-add markets/opportunities.

THE TAKEAWAY Challenges will always exist for the automotive industry and its suppliers. The best strategy companies can implement is to provide ample time for site selection and execution, and to engage professional representation to assist them in the due diligence process. Colliers Site Selection Services typically suggests at least 18–24 months for proper project planning and implementation: at least six (6) months for planning and due diligence, which includes site selection and incentive negotiations, supply chain and transportation modeling, identification of sites and existing building options, labor analytics, side-by-side qualitative and quantitative evaluation, proforma operating analysis, facility planning, construction bidding, and finalizing incentive negotiations with various stakeholders in short-listed locations; and 12+ months for project delivery. This timeline is just an example and can be expedited based on the project scope and size, but as a takeaway, projects need ample time and skilled professionals that are globally minded but have local market knowledge and experience to deliver projects successfully and mitigate risk. <> 1

https://www.bdo.com/BDO/media/CFO-Outlook-Survey/IND_2021-Manufacturing-CFO-OutlookSurvey_WEB.pdf https://www.agc.org/news/2021/06/15/producer-prices-construction-materials-and-servicesjump-24-percent-over-12-month

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Getting the EV Industry Charged Up

By Alison K. Eggers and Brandon L. Bigelow, Partners, Litigation Department, Seyfarth Shaw LLP

Consumers’ confidence with electric vehicles — and the ultimate success of the EV industry — depends upon the building of a network of charging stations.

Electric vehicles (EVs) have had a good year. According to Cox Automotive, EV sales accounted for 7.8 percent of total sales in the first quarter of this year, a significant increase over their 4.8 percent share during the same period in 2020.1 And though that increase translates to a relatively small number of EVs actually hitting the road, at least compared to traditional internal combustion engine (ICE) powered vehicles, opinion research and buying patterns show a rising interest in EVs from American consumers.

At least some of that rising interest is attributable to concern about the environmental impact of ICE vehicles, leading some states to take more action to encourage change. The vast majority of states — 45 and the District of Columbia at last count — offer

incentives of one kind or another for the purchase of certain EVs, including tax credits, rebates, reduced registration fees, and exemption from vehicle inspection regulations.

Those actions have taken a more overt turn in the last two years.

California and Massachusetts have recently committed to requiring all sales of new passenger vehicles be zeroemission by 2035, effectively banning the in-state sale of ICE vehicles. New York is poised to follow, with legislation mandating the shift by 2035 passing both houses of that state’s legislature in April 2021. And these states are only the early adopters.

Washington, New Jersey, and Colorado have all expressed interested in an EV-only shift, and other states appear poised to follow.

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CONSUMER COMFORT LEVELS

MANUFACTURERS’ ROLE

One big stumbling block to achieving these aims and in furthering consumer comfort with EVs is charging. Assuming EVs achieve price parity in 2024, as some reports have suggested, there remains the need to achieve “convenience” parity before EVs will be accepted. Consumers have been reluctant to buy EVs because of the range limits imposed by battery life.

A Consumer Reports survey late last year,2 for example, asked respondents who did not already “definitely” plan to buy an EV for their next vehicle what factors were holding them back. Forty-two percent of respondents identified insufficient driving range. The top response, at nearly half of respondents, was lack of public charging stations, a concept that goes hand-in-hand with driving range.

The American Jobs Plan, as originally unveiled by the Biden administration, included $174 billion to promote electric vehicles and EV charging stations, including $15 billion to install a half a million chargers across the country by 2030. The scaled-down Bipartisan Infrastructure Framework retained about $7.5 billion in funding for public infrastructure devoted to charging, primarily focused on interstates and highways in lower-income and rural communities. That’s good news for consumers who live outside of major U.S. cities, where public charging stations are largely concentrated.

While $7.5 billion is a lot of money in an absolute sense, it will be nowhere near enough to install enough public charging stations in all of the 19,500 cities, towns, and villages in the United States, as well as provide adequate coverage across the more than four million miles in the U.S. highway network.

This puts auto manufacturers in a challenging position.

With the notable exception of a few new EV entrants, auto manufacturers have traditionally engineered and manufactured vehicles, not developed and deployed the means for powering them. However, the push toward EVs may force traditional automakers in that direction, as it has EV-only market entrants.

Some EV-only manufacturers have invested in the development of a network of fast-charging stations for their vehicles.

In the case of Tesla, part of that decision is driven by the simple fact that Tesla relies on its own proprietary Supercharger system. But the downstream effect of employing a proprietary system is the more fascinating one. Tesla customers, and potential customers, are confident that after a full day of driving they will be able to find a charger when they need one. In other words, instead of focusing only on the vehicle, Tesla also focuses on the bigger picture of what that vehicle and its driver need to hit the road and stay on it.

Traditional auto manufacturers have played a much smaller role in the development and deployment of charging stations, largely ceding the space to Tesla and third-party companies like ChargePoint, EVgo, and Electrify America, some of which have been the beneficiaries of modest investments from traditional automakers. That strategy has worked in a modest way so far; EV sales are up, private investment has stepped in to provide charging stations in the most profitable locations, and public funding for lower-served locations is on the horizon. It may be time, however, for traditional auto manufacturers to take a more prominent position in encouraging the construction of new charging stations, whether through partnerships with

PASSENGER VEHICLE SALES FORECAST GLOBAL ANNUAL SALES BY TYPE Internal Combustion

Fuel Cell

Plug-in Hybrid

Battery Electric

100M 80M 60M 40M 20M 0 2015 2020 2025 2030 2035

2040 Source: BNEF 2020

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third parties or by direct investment in public charging stations.

PREVAILING CONNECTION STANDARDS Wading into the work of more actively ensuring the breadth of the nation’s network of charging stations also would allow auto manufacturers to ensure the charging stations that are deployed meet their own technological needs.

For example, one issue that remains is what connection standard (or standards) for EVs will prevail in the United States. EVs can charge using alternating current (AC) available at homes and offices, and automakers appear to have landed on uniform plug standards for this slower type of charging. But manufacturers have diverged on connection standards for direct current (DC) fast charging, which can recharge the typical EV battery in 30 minutes or less. Japanese EVs use the CHAdeMO standard and German and American EVs use the SAE Combined Charging System (CCS) standard,

while Tesla uses its own Supercharger standard.

As of July 2021, the U.S. Department of Energy Alternative Fuels Data Center3 reported 3,742 public stations with 5,147 CHAdeMO connectors; 3,624 public stations with 6,984 CCS connectors; and 5,650 public stations with 22,191 Tesla outlets in the United States. Whether driven by industry competition or presidential politics, the emergence of a national network of private and public DC charging stations to support long-range driving will be critical to consumer acceptance of EV technology. Traditional auto manufacturers should consider whether it is in their own economic best interest to take more direct action to ensure that happens as quickly as possible.<> 1

https://www.coxautoinc.com/market-insights/electrified-vehicle-growth-energized-in-q1/ https://advocacy.consumerreports.org/wp-content/uploads/2020/12/CR-NationalEV-Survey-December-2020-2.pdf 3 https://afdc.energy.gov/fuels/electricity.html 2

Georgia Is Powered for Growth Building upon the existing assets that make the automotive ecosystem so successful in Georgia, state leadership is actively working to develop the mobility industry at every step of the supply chain, from rare earth mineral mining and processing to battery manufacturing and automotive assembly. In addition to having many ready-to-build GRAD-Certified sites available, companies are leveraging access to engineering talent of all types (mechanical, electrical, and software), technical and manufacturing talent, and access to innovative corporate and college and university EV labs in the drive towards electrification.

Georgia is committed to the growth of the EV infrastructure as well.

Access to publicly available EV charging stations is a key component Georgia’s robust automotive ecosystem is of continued EV adoption. With more than 1,300 public EV charging evolving to support the growing demand for electrification. stations, boasting more than 3,200 individual outlets, Georgia offers more electric charging stations or outlets per capita than anywhere else in the Southeast — including across the 15 state Sunbelt region. Georgia is proudly second in the nation only to California when it comes to available charging systems.

To provide a clear roadmap for evolution, in 2021, Georgia announced the formation of the Electric Mobility and Innovation Alliance (EMIA), a coalition of government, private industry, electric utilities, nonprofits, and other relevant stakeholders. EMIA’s mission is to support the growth of the entire electric mobility industry and foster innovation in the state of Georgia by leveraging our business-friendly environment for the industry and promoting favorable public policy. While this alliance has the long-term goal to bring new investments to Georgia, it also seeks to support the state’s existing industry throughout the ongoing transition of the automotive industry.

EMIA will continue to build on the state’s existing assets and develop a multi-step approach that sets objectives for policy, infrastructure, workforce programs, supply chain attraction, and innovation. Georgia is ready for what’s next in automotive. Read more about the benefits at Georgia.org/mobility.

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Preparing for Launch of an Aerospace Business

By Josh Foerschler; Aerospace, Defense, and Space Lead; Burns & McDonnell

Aerospace startups, even more so than other companies, benefit from holistic approach to planning and site selection.

Fueled by an explosion of technological innovation and entrepreneurial enthusiasm, dozens of new space and aerospace startups are coming online each year. Such is the power of brilliant people with big ideas.

From small electric-powered aircraft, some with vertical takeoff and landing abilities, to space planes that take off from ordinary runways before hybrid rocket engines launch them into space, these inventions are no longer the stuff of science fiction. They are real, spectacular, and ushering in new approaches to travel and space exploration.

While brimming with true geniuses, early-stage space and aerospace startups may not yet fully appreciate how their operational planning intertwines with capital planning. Investing in resources that can help them identify

their facility needs, set realistic goals, and develop schedules and budgets for the design and construction (or leasing) of facilities is critical for startups’ longterm success.

By translating a startup’s technical needs and ambitions into a master plan, an integrated team of planners, site selection professionals, engineers, and constructors can develop site selection criteria and, in some cases, design and construct the adaptable and sustainable facilities needed to turn the entrepreneur’s vision into reality. These preplanning activities are also enormously instructive to the economic development organizations, developers, and investors whose support they also need.

In fact, the results of such activities can be a deciding factor as these stakeholders choose which startups to court.

A company that produces flying taxis may need to be in a region with clear airspace.

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MASTER PLANNING ISSUES Should an aerospace startup build its own facilities on a greenfield site or lease space from an existing facility? Should it look into the new and emerging world of spaceports? Will its facilities be used for product manufacturing or assembly, or perhaps both? Does it make better economic sense to manufacture some parts off-site through contract manufacturers and only assemble on-site?

What are the startup’s production goals for the next one,

five, and 10 years? What about its sustainability goals? Can it secure the tens of millions of dollars or more it may take to construct its own production facility while it gathers seed funding for its actual product?

These are just a few of the many questions that startups need to consider as they plan their operations. Finding answers takes an understanding of supply chains, distribution channels, workforce requirements, and labor and materials costs, among other issues. The decisions startups make can significantly

Aerospace Takes Off in Louisiana Robust business incentives, skilled manufacturers, a mature business ecosystem, and the nation’s best workforce training and development program make Louisiana a great place for aerospace businesses to take flight.

Louisiana has been an active participant in the aerospace sector since the birth of America’s manned space program in the early 1960s. Today it’s a diverse sector with a statewide footprint, as evidenced by the wide-ranging number of operation bases located in Louisiana: • Northrop Grumman, the 96th largest American company in 2020’s Fortune 500 rankings, in Lake Charles; Southern University’s Shreveport campus offers a unique opportunity for students • Citadel Completions, providing aircraft maintenance and luxury to get hands-on training for jobs in the interiors for Boeing and Airbus aircraft, also in Lake Charles; aerospace industry.

• Arrow Aviation, specializing in maintenance, repair and overhaul of helicopters in Broussard; • Metro Aviation, a national medical transport helicopter completions and operations leader in Shreveport; and • NASA, which labeled its Michoud Assembly Facility in eastern New Orleans — the agency’s only dedicated manned space manufacturing facility — “America’s Rocket Factory.”

Why have they chosen Louisiana? It starts with the state’s talented workforce, higher-ed partnerships, best-in-class workforce training and development, and access to facilities.

The state’s talent pool is deep, with more than 430,000 employees in manufacturing-relevant occupations.

Employers benefit from Louisiana’s right-to-work status and access to a state-of-the-art workforce development and training program, Louisiana Economic Development FastStart. The innovative incentive program creates customized recruitment, screening, and training solutions for new or expanding companies — all at no cost to eligible companies.

FastStart’s higher-ed partnerships also benefit manufacturers. Louisiana recently became the first state to install cutting-edge Haas 5-Axis CNC machining centers and training curricula at every school in its Community and Technical College System. Historically Black Colleges and Universities (HBCUs) are important contributors; Shreveport’s campus of Southern University offers an Airframe and Powerplant Maintenance program.

Providing additional layers of support are Louisiana’s logistics infrastructure and pro-business environment.

Advantages include six interstate highways, Class 1 railroads and deepwater ports, along with seven commercial airports. Louisiana Economic Development’s Certified Industrial Site program takes the guesswork out of site selection. The Industrial Tax Exemption Program makes possible an 80% property tax abatement for up to 10 years.

And the Quality Jobs program provides up to a 6 percent rebate of payroll for new, direct jobs for up to 10 years.

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The Fastest Route to Market Runs Through Kentucky From Build-Ready Sites with permits and plans on file to at-the-ready workforce training partners, Team Kentucky approaches your project with the same urgency as you. We want to get you to market quickly and seamlessly, which is why Kentucky’s state agencies, local officials, utilities and higher-education institutions collaborate to save companies time and money.

Located within a day’s drive of more than two-thirds the U.S. population and with 500-plus automotive suppliers in-state, Kentucky is prepared to speed ahead in today’s ever-evolving auto industry. Learn more about how the Bluegrass State can help your business grow.

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shape their facility footprint and space needs.

A master planning team can methodically guide them through the process for determining the kinds of spaces and rooms their facility will need.

Some may want on-site 3D printing to manufacture significant components. Others may need a paint booth and multiple clean rooms. Some will need available airspace and/or a runway. Startups working on certain projects for the government may need a small ICD 705 secure room/network. Many may know exactly what the production of their product requires; others may need help in developing a production process.

Once the process and spaces are defined, designers can apply lean methods to optimize them and make the most efficient use of space. The list of building criteria they create will be vital during the site selection process. The overall master plan, meanwhile, can become part of the business plan presented to potential investors and the space and aerospace community.

EARLY-STAGE SPACE AND AEROSPACE STARTUPS MAY NOT YET FULLY APPRECIATE HOW THEIR OPERATIONAL PLANNING INTERTWINES WITH CAPITAL PLANNING.

SITE SELECTION ISSUES An operation’s facilities requirements are particularly valuable when identifying and evaluating potential sites. Once on paper, it may become clear whether an existing facility, spaceport, or development meets a startup’s needs, precluding the need to build new. Or it might point to a particular region of the country in which to begin the search.

For example, consider a startup developing a new kind of supersonic aircraft. Known for the loud sonic booms they create, these aircraft have been banned from flying at supersonic speeds over U.S. land since 1973. Even with small supersonic corridors now allowed above certain regions of California and Kansas, flight-testing options remain limited. When choosing the location for a production facility, site selectors may consider how that regulation impacts flight testing. For these aircraft to reach airspace above international waters in minutes, a coastal corridor with proximity to an ocean and international waters is essential.

Startups seeking to build rocket planes or launch small satellites into space, on the other hand, may gravitate toward NASA launch sites or commercial spaceports with the capabilities to accommodate these highly specialized needs.

These locations may also attract a critical mass of aerospace companies, tech-savvy workforces, and suppliers, adding to their desirability. Nearby colleges and trade schools can also be a plus for recruitment purposes.

Other unique concerns may also impact site selection.

Some aircrafts may require extended runways that are longer

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than those sometimes found at former military bases or spaceports. A company that produces flying taxis may need to be in a region with clear airspace.

Given ongoing consolidation in the aerospace and defense industries, startups may also find they can buy or lease cleanrooms and other specialty manufacturing space at a good price from companies seeking to right-size their operations. Others may be better served by working with a developer on a greenfield site. The important thing is that decisions are based on facts and data.

PLANNING AHEAD

No matter how humble their origins or revolutionary their ideas, space and aerospace startups share a common reality: Their futures depend on their ability to grow. Expandability, in other words, should be factored into every facility plan.

Operations should be designed with both current and future production goals in mind. Aerospace facility design must be adaptable, sustainable, and expandable.

That does not mean getting ahead of itself.

A startup that intends to build 50 articles per month in year 10 would be unwise to build a facility with that capacity when it only builds five per month today. Excess capacity is not a good investment of early capital. Such a company would be better served with an adaptable design. With this approach, utilities, loading docks, walls, and rooflines can all be laid out with expansion in mind. Movable walls, space for additional chillers and cleanrooms, and other adaptions in the original design will make the addition of another production bay at a later date easier and less costly.

Sustainability goals can also impact design in the masterplanning process. Solar panels can offset purchased electricity, reducing the carbon impact, but if the manufacturing process itself relies heavily on fossil fuels like natural gas, the ability to achieve sustainability goals will be impacted. Office amenity designs, similarly, may be driven by the workforce the startup seeks to attract and retain, as these companies wrestle with other companies that offer expanded cafeterias, lounge spaces, and even nap pods.

THE BOTTOM LINE Space and aerospace startups that take a holistic approach to planning the operations side of their business make good targets for economic development organizations and developers. In an increasingly crowded field, they’re often the ones best-positioned for success. <>

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U.S. Semiconductor Industry Faces Crises, Opportunities

By Karen E. Thuermer

Incentives to encourage U.S. chip manufacturing would help to alleviate the current global semiconductor shortage, which is affecting the automotive and other industries.

COVID-19 has resulted in wild gyrations in supply and demand.

One industry that is being seriously impacted is semiconductors. Facing a supply shock caused by escalated purchases of high-tech goods (and consumers anxious to spend their stimulus checks), manufacturers are suddenly confronting a shortage of microprocessors.

Automakers have been hit particularly hard by the global chip shortage.

In fact, the Alliance for Automotive Innovation (AAI) recently told IndustryWeek1 that the shortfall in semiconductor availability could stall U.S. vehicle production by as many as 1.27 million vehicles in 2021.

“The chip shortage has forced a number of automakers to halt production and cancel shifts in the United

States, with serious consequences for their workers and the communities in which they operate,” said AAI CEO John Bozzella.

CHALLENGES Production of semiconductors was reduced when plants closed as the virus spread across the globe. And the ramping up of these factories takes weeks, reports the Semiconductor Industry Association (SIA).2 Making a semiconductor is one of the most complex manufacturing processes. Lead times of up to 26 weeks are the norm in the industry to produce a finished chip.

However, most industry analysts believe the current short-term supply shortage will ease in the coming months as supply adjusts to meet demand.

Furthermore, most microprocessors

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must be imported. A study released last September by SIA and Boston Consulting Group entitled Government Incentives and U.S. Competitiveness in Semiconductor Manufacturing3 found that the share of global chip manufacturing done in the U.S. declined from 37 percent in 1990 to 12 percent in 2020. The reason, they say, is competing governments offer the industry large incentives; the U.S. does not.

“Seventy-five percent of the world’s chip manufacturing is now concentrated in East Asia,” SIA says. “China is projected to have the world’s largest share of chip production by 2030 due to an estimated $100 billion in Chinese government subsidies.”

And, depending on the type, a new fab plant in the U.S. costs approximately 30 percent more to build and operate over 10 years than one in Taiwan, South Korea, or Singapore, and 37–50 percent more than one in China, the study states. As much as 40–70 percent of that cost differential is directly attributed to government incentives.

Terry Halvorsen, IBM’s general manage for client and solutions development in the federal and public market, recently commented in a blog, “You never want to be in a spot where another nation can control a valuable resource that your nation depends on.”4

announced expansion plans starting with two new factories in Chandler, Arizona: “This buildout represents an investment of approximately $20 billion, which is expected to create over 3,000 permanent high-tech, high-wage jobs; over 3,000 construction jobs; and approximately 15,000 local long-term jobs… To make our new expansion in Arizona possible, we are excited to be partnering with the state of Arizona and the Biden Administration on incentives that spur this type of domestic investment, ” said Intel CEO Pat Gelsinger.5 As industry leaders have noted, remedying the crisis cannot be fixed by a simple “flip of a switch…Semiconductors are incredibly complex to produce,” writes Falan Yinug, director of Industry Statistics and Economic Policy, in a SIA blog.6 “Making a chip is one of the most, if not the most, capitaland R&D-intensive manufacturing process on earth.”

Consequently, a core priority with SIA and industry leaders is to push for federal manufacturing grants and tax relief totaling $20–50 billion. This, they say, would “re-position the U.S. from an unattractive investment destination to the most attractive (excluding China) and create as many as 19 fabs in the U.S. over the next 10 years, a 27 percent increase over the current number of U.S. commercial fabs (70).”7 <>

USING INCENTIVES

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The SIA/Boston Consulting Group report adds, however, that robust federal incentives for domestic semiconductor manufacturing could “reverse this trajectory of declining chip production in the U.S. and create as many as 19 major semiconductor manufacturing facilities.”

Intel is working to ramp up production. In March, Intel

https://www.industryweek.com/supply-chain/article/21160486/chip-shortage-could-cut-us-vehicleproduction-by-more-than-a-million-aai-warns https://www.semiconductors.org/chipmakers-are-ramping-up-production-to-address-semiconductor-shortage-heres-why-that-takes-time/ 3 https://www.bcg.com/en-us/publications/2020/incentives-and-competitiveness-in-semiconductormanufacturing 4 https://www.ibm.com/blogs/industries/global-semiconductor-shortage-solutions/ 5 https://www.areadevelopment.com/newsitems/3-25-2021/intel-manufacturing-chandler-arizona. shtml 6 https://www.semiconductors.org/semiconductor-shortage-highlights-need-to-strengthen-u-s-chipmanufacturing-research/ 7 https://www.semiconductors.org/turning-the-tide-for-semiconductormanufacturing-in-the-u-s/ 2

POWER TO GROW

With resources like low-cost, reliable power, creative incentive packages, and a wide-ranging property portfolio, Santee Cooper helps South Carolina shatter the standard for business growth.

In fact, since 1988, Santee Cooper has worked with the state’s electric cooperatives and other economic development entities to generate more than $15.3 billion in investment and helped bring more than 83,000 new jobs to our state. It’s how we’re driving Brighter Tomorrows, Today.

POWERING SOUTH CAROLINA

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8/27/21 12:52 PM

Auto Industry Is Betting on Sustainability

By A.J. Washeleski, Associate, Corporate Real Estate, Kirco Manix

The automotive industry and its suppliers are realizing that they must invest in sustainability initiatives because of their importance to customers and shareholders alike.

Within the plethora of buzzwords that grew in popularity over the COVID-19 pandemic, there is one that will live on stronger throughout the foreseeable future. Beyond terms like lockdowns, mandates, bottlenecks, shortages, SPACs, and inflation, it’s the word sustainability that will have a lasting effect on companies, their employees, and their customers for the next 100 years. This term is the same one that has been nagging on the ear of executives throughout industries for decades. A small annoyance perhaps at the bottom of the barrel, but now it is, or should be, cemented on to-do lists across the globe.

A SHIFT IN THE MARKETPLACE For automotive OEMs the word now goes beyond a handful of production

lines for hybrid and EV offerings or buying carbon offsets to make the state of California happy. As we’ve recently seen with Exxon Mobil and ESG activist investment firm Engine No. 1, if you aren’t thinking about or actually making a dent in this sustainability thing yet, then you have direct career risk.

The rampant rise in EV SPACs and sustainability stocks that rocketed up in 2020, along with a new administration pushing for change, forced the hand of many of the biggest companies in the automotive world. Companies like General Motors — which went from fighting against new emission standards to announcing within a matter of months $35 billion of EV and AV investment and a goal to go completely electric by 2035 — are a great example of the winds that helped to shift the marketplace.

Courtesy of General Motors

Renovations and new construction are under way at General Motors’ Factory ZERO in Hamtramck, Michigan, which will be fully dedicated to assembling electric vehicles.

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and many simple things that can be done now to Looking back in time we can see a similar rewrite their future histories. scene evolving now to what took place in the For one, we can look at General Motor’s Fac1970s. U.S. automakers continued to design and tory ZERO facility in Hamtramck, Michigan. On produce bigger and bigger cars for the American SUSTAINABILITY the back of their new Zero, Zero, Zero initiative market and weren’t remotely worried about the NEEDS TO GO (Zero crashes, Zero emissions, Zero congestion), smaller, more fuel-efficient front-wheel drive cars BEYOND THE GM has transitioned this facility from the brink of that international vehicle-makers were beginning CAR; IT NEEDS extinction in 2018 to the bedrock of their electric to mass-produce. That was until an oil shock hit TO GO INTO future. The facility will repurpose old concrete for the global markets and put the domestic industry EVERY STEP temporary roads, recycle stormwater to reduce waon edge. International carmakers pounced and OF THE SUPPLY ter dependency, feature a wildlife habitat, and will the U.S. automakers never truly regained the CHAIN. be sourced with 100 percent renewable energy by market share that was forever taken by this un2023. In turn, this facility will now roll out vehicles foreseen shift. As Mark Twain once said, “History like the Hummer EV, Silverado EV, and the Cruise doesn’t repeat itself, but it often rhymes”.

Origin. It’s the first facility on GM’s stated comThere may not be any oil shock per se in the mitment to have all U.S. facilities powered by 100 near future, but auto executives have certainly percent renewable energy by 2030. seen the writing on the wall regarding the imporVolvo has also taken some of the most defiant tance of sustainability efforts, and the pandemic steps toward sustainability throughout its vehicles certainly helped light a fire in the process. The and manufacturing facilities. Recently the compayears leading up to the pandemic were marked ny announced that its plant in Torslanda, Sweden, by a reduction in passenger car production and a had become the company’s first manufacturing significant rise in SUV and large truck offerings, plant to reach carbon-neutral status. It achieved similar to the 70s era. Companies were pouring such status by utilizing climate-neutral electricity and climateinvestment into their biggest money-makers and best-sellers, neutral heating through biogas and industrial waste heat. It as one would naturally expect. Now, it’s the money made by is Volvo’s stated goal that its manufacturing network achieve those trucks that’s bankrolling the newest EV revolution. climate neutrality by 2021.

The revolution includes the likes of Volvo, Mini, Cadillac, But it isn’t just up to the automakers to make the changes and Jaguar going completely electric within the next decade; in their facilities. The pressure should be passed down to all Stellantis planning to announce 10 hybrid or electric modthroughout the supply chain. Porsche, for example, recently els by the end of this year; Mercedes planning to introduce called for all 1,300 suppliers to use exclusively renewable 10 EVs by the end of 2022; Nissan launching eight EVs and energy in the manufacturing of all Porsche components as a goal to sell one million by the end of 2023; Land Rover of July 2021. Suppliers who are unwilling to switch to green releasing six pure electric vehicles in the next five years; Audi energy will no longer be considered. Porsche wants to be carplanning to have 30 EVs by 2025; BMW expecting their bon neutral across its entire supply chain by 2030, and such EV sales to account for 15–25 percent of their total sales; restrictions will certainly act as a wakeup call.

Hyundai having 23 EVs by 2025; and the list goes on and on.

Continuing down the supply chain, among many other It goes beyond Tesla, which while taking up 99 percent of the examples, are Bridgestone’s focus on recycled rubber initiamedia airtime only takes up less than 1 percent of total new tives; ArcelorMittal announcing a $1.2 billion investment in a car market share. It’s up to the incumbent automakers with green and clean steel manufacturing building; and startups their massive manufacturing base to bring change. like Redwood Materials and Li-Cycle focused on perfecting the recycled battery for an entirely EV future. This particular point BUILDING A SUSTAINABLE SUPPLY CHAIN revolving around batteries, as we’ll see, will be one of the But sustainability needs to go beyond the car; it needs to most important aspects of true sustainability. It’s one of biggest go into every step of the supply chain. The automotive industry ironies of clean energy manufacturing that isn’t being talked is arguably the epitome of the word industry, but it’s hardly about as much as it should. In order for us to achieve sustainever been known as the poster child for sustainability success. ability with electric vehicles, we are currently relying on an In an industry historically dominated by oil, it grew up in an unsustainable mining effort for the raw materials that make up area now known as the Rustbelt — littered with millions of a lithium-ion battery. Certainly, this is something being looked square feet of abandoned manufacturing buildings, forgotten at across the board, but it goes to show that sustainability will companies, and decay. But there are many things being done

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go beyond finished products in the future — it has to also be imbedded in every nook and cranny of the automobile.

THE NEW SHAREHOLDER VALUE The automotive industry is a very asset-heavy, energyreliant, and labor-intensive industry. Because of this, many companies have been able to use the same facilities for decades — some that may require an unnerving number of updates to be truly sustainable. As my company’s energy division has proven, change can come about in simple ways that over time can pay for themselves. Things like replacing old and outdated systems with lighting upgrades, HVAC updates, smart/automated energy management systems, water conservation, as well as renewable energy sources are great ways to start toward building a sustainable future. It doesn’t all have

to come at once and can be built up over time.

Being sustainable doesn’t have to necessarily cost more green either, and this article certainly doesn’t cover all the cause and effect items that can be discussed ad nauseum.

In a thin-margin business there will always be a hesitancy to perhaps invest in such initiatives. But what’s different now is that maybe…just maybe…investing in cleaner technology is more important to shareholders and customers today than ever before. Dividend growth and stock buyback are boring; they’re old news. Pumping millions into streamlining your supply chain, cleaning your manufacturing processes, and reducing your reliance on dirty energy is the new shareholder value.

People and large public companies are now more interested in aligning themselves with those that will affect their sustainability initiatives and their environments in positive ways. <>

Santee Cooper Powers South Carolina’s Automotive and Other Businesses For over 80 years, Santee Cooper, South Carolina’s largest provider of electricity, has made an immeasurable economic impact in the state, by providing safe, reliable, money-saving and energy-saving solutions.

Not only has that attracted businesses to South Carolina, it has helped those businesses grow, which ultimately improves the quality of life for all South Carolinians.

In addition to delivering electricity directly to 27 large industrial customers, Santee Cooper directly and indirectly helps power 13 municipalities and 20 electric cooperatives across the state, as well as Joint Base Charleston.

With resources like low-cost, reliable power; creative incentive packages; a wide-ranging property portfolio; a diverse generation mix; exceptional customer service; and strong partnerships with electric cooperatives and other economic development organizations across the state, Santee Cooper has helped South Carolina generate solid business growth, year after year. In fact, since1988, Santee Cooper has worked with South Carolina’s electric cooperatives and other economic development entities to generate more than $15.3 billion in investment and helped bring more than 83,000 new jobs to the state.

South Carolina’s low electricity rates, rich natural resources and strong technical workforce make it the ideal location for a wide variety of industries. From automotive to cold storage, discover why South Carolina is the perfect fit to help your business succeed.

With the added help of South Carolina’s favorable business climate, which led to it being named one of 2021’s Top States for Doing Business in Area Development’s Site Consultants Survey, it’s no wonder companies like Google and Volvo Cars USA have been drawn to the state.

Santee Cooper’s dynamic economic development team is working hard and at the ready, supporting efforts all across the state and ensuring that South Carolina’s business future is brighter than ever.

To learn more about how Santee Cooper can help your business find a new home in South Carolina, visit poweringsc.com.

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U.S. Space Race Propels the Nation to New Heights

By Karen E. Thuermer

Activities involving the development, production, and use of space technologies are spread across the United States.

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user of space technologies, today it has evolved into a major domestic and global customer in the growing new space market. Overall, the U.S. Chamber of Commerce estimates that the global space market will increase from approximately $385 billion in 2020 to at least $1.5 trillion by 2040.1

WIDESPREAD U.S. INVESTMENT Aerospace activities are spread across the U.S. with consultancy PwC ranking the top 10 states in 2020 for aerospace manufacturing attractiveness being Georgia, Ohio, Washington, Texas, North Carolina, Indiana, Arizona, Michigan, Florida, and California.2 More important, investment in the U.S. space race is critical, especially given advancements under way in China and Russia.

American space-related companies provide important economic opportunities for communities nationwide. In

Courtesy of Virgin Galactic

The Virgin Galactic Spaceflight System in front of Spaceport America

In 1961, President Kennedy proclaimed that the United States should “commit itself to achieving the goal, before the decade is out, of landing a man on the moon and returning him safely to the Earth.” Thus began the space race that has over the years spawned numerous innovative companies and exceptional research.

One only must consider in awe the launch of private citizens and entrepreneurs Richard Branson and Jeff Bezos into space 60 years later. On July 11, Branson entered the edge of outer space in his space craft, the Virgin Galactic — the result of nearly 17 years of development and over a billion dollars of investment. Then Bezos shot off into space on July 20. Already Bezos has sunk billions into his private space company, Blue Origin, with more investment on its way.

Whereas the U.S. government was once the sole developer, producer, and

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capsules for NASA. The company deciphered and Tucson, Arizona, for example, Kitt Peak National interpreted the data gathered by NASA’s PerseverObservatory and the University of Arizona have ance Rover. been part of every NASA planetary mission since THE U.S. CHAMBER “At least 39 companies from Missouri are Apollo 11. “They have established Tucson as a OF COMMERCE among the roughly 3,800 suppliers nationwide space industry hub,” Joe Snell, president and ESTIMATES THAT that will equip NASA’s latest Orion mission, CEO, Sun Corridor Inc., told Area Development.

THE GLOBAL SPACE Artemis 1,” says Alias. The space agency plans to Firms that have recently expanded or located MARKET WILL return to the moon by 2024 and embark on longin Tucson range from Lunasonde, a radar satelINCREASE FROM term lunar exploration by 2028. lite remote sensing company, to Paragon Space APPROXIMATELY Development Corp., which develops life support $385 BILLION IN solutions and thermal control technology and 2020 TO AT LEAST FAA OVERSIGHT has worked on every major human space flight $1.5 TRILLION BY Texas has long been associated with space program since 1999.

2040. starting with NASA’s Lyndon B. Johnson Space Vector Launch Inc., a micro-satellite launch Center (JSC) in Houston. To keep pace with the company founded in Tucson in 2016, announced increasing frequency of commercial space launch last year that it will restart operations and reand reentry activities, the Federal Aviation Admain in Tucson after a competitive, multi-state ministration (FAA) opened a safety field office in process.3 Space tech company Phantom Space Houston to increase its oversight of commercial space operations in Texas and New Mexico. announced in June that it will be opening a new “From this location, FAA inspectors will be 32,000-square-foot facility in Tucson that will able to more effectively and efficiently monitor serve as its first rocket factory.4 the ongoing testing programs and commercial Colorado’s aerospace companies play a key space tourism operations of SpaceX and Blue Origin in Texas role from Kepler to the Hubble space telescope to Dream and Virgin Galactic in New Mexico -— along with others in Chaser and Orion. Colorado Springs is home to 250+ aerothe region,” the FAA said in a press release.5 space and defense companies. The state itself is home to the nation’s largest concentration of aerospace employees.

Central Texas has gained notoriety thanks to Elon Musk’s “This unique ecosystem includes international and locally SpaceX, an aerospace manufacturer, space transportation grown companies, and leaders in creating innovative military services, and communications company headquartered in space technologies and state-of-the-art development centers Hawthorne, California. SpaceX located its rocket testing facilincluding Catalyst Campus, the U.S. Air Force Academy ity in McGregor, Texas, nearly two decades ago. Today that AFWERX, and the Space Foundation,” says Reggie Ash, chief facility sits on some 4,300 acres. defense development officer at the Colorado Springs ChamIn mid-July, Musk announced on Twitter plans to break ber and EDC. ground on a second factory in McGregor for its Raptor 2 Missouri has a long history with aerospace and defense. engines and that he planned to produce 800–1,000 engines St. Louis-headquartered EaglePicher Technologies has been in there a year.6 the battery business since 1922. According to Subash Alias, All eyes turned to Sierra County, New Mexico, on July 11 CEO of the Missouri Partnership, “EaglePicher batteries have when Virgin Galactic launched from Spaceport America carpowered every U.S. spacecraft, manned and unmanned, since rying English business magnate Richard Branson. Spaceport 1958, when Explorer 1 became the country’s first satellite.”

America is the world’s first purpose-built commercial spaceIn 2021, NASA’s Perseverance Rover, powered by EaglePicher port. It is owned and managed by the state’s New Mexico batteries, landed on Mars.

Spaceport Authority (NMSA), which also designed and built Other important Missouri-based space-related companies the facility. Virgin Galactic is its anchor tenant. Other teninclude St. Louis’s McDonnell Douglas, which merged with ants include AeroVironment/HAPSMobile, UP Aerospace, and the Boeing Company in 1997 and built the Mercury space SpinLaunch.

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SPONSORS Spaceport America spokesperson Alice Carruth explained to Area Development that NMSA chose to locate Spaceport America in Sierra County because it is remote, unpopulated, and offers great weather for launch. “It is adjacent to White Sands Missile Range, which provides access to 6,000 square miles of restricted airspace, and can provide services like telemetry, radar, optical tracking, and weather forecasting,” she adds.

MORE PRIVATIZED AEROSPACE ACTIVITY Florida has experienced a big boost in privatized aerospace activity ever since the U.S. government ended the space shuttle program. Much is focused on the Space Coast around the Kennedy Space Center and Cape Canaveral Space Force Station, where NASA announced the development of the next generation Orion Multi-Purpose Crew Vehicle (MPCV).

“The opening of Lockheed Martin’s ‘factory of the future’ in Titusville is an excellent example of the long-game of economic development and the direct result of a successful EDC strategic capture plan for the Crew exploration vehicle, which became Orion,” Lynda L. Weatherman, president and CEO of the Economic Development Commission of Florida’s Space Coast told us. Lockheed Martin currently assembles the Orion spacecraft for the Artemis I and II Moon missions at the Operations and Checkout facility (O&C) at the Kennedy Space Center. The addition of the Spacecraft, Test, Assembly and Resource (STAR) Center provides much-needed space for the new production phase of Orion, allowing future Orion spacecraft — starting with the Artemis III mission — to be built faster.

“The STAR Center is the centerpiece of our commitment to build sustainable and affordable capabilities for NASA to send astronauts to explore the Moon and eventually Mars,” says Lisa Callahan, Commercial Civil Space vice president and general manager at Lockheed Martin Space. “We are using advanced manufacturing capabilities and digital-first technologies to speed production and improve quality to get Orion from factory to space faster than ever before.”

No doubt the U.S. space race will spawn a host of other activities across the nation going forward. The U.S. cannot afford to lag behind given keen government-sponsored activities in China and Russia. Private investment is making a difference. <> 1

https://www.uschamber.com/series/above-the-fold/the-space-economy-industry-takes https://www.pwc.com/us/en/industries/industrial-products/library/aerospace-manufacturingattractiveness-rankings.html 3 https://tucson.com/business/vector-to-stay-in-tucson-to-restart-micro-satellite-launch-work/ article_0f24db7f-da00-5457-b26d-0874c5345ac3.html 4 https://tucson.com/business/small-sat-launch-firm-phantom-to-open-tucson-rocket-factory/ article_30fe83a4-cdf2-11eb-a42c-dfea331db6ea.html 5 https://www.faa.gov/news/press_releases/news_story.cfm?newsId=26340 6 https://www.statesman.com/story/business/2021/07/10/elon-musk-says-spacex-still-growingtexas-plans-rocket-engine-factory-near-waco/7927169002/ 2

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GEORGIA 2, 10 GEORGIA DEPARTMENT OF ECONOMIC DEVELOPMENT Georgia consistently earns top rankings for our attractive business climate, Quick Start workforce training program, and global access through the Port of Savannah and Hartsfield-Jackson Atlanta International Airport. But it’s our partnership approach to business that really empowers a company’s growth and success. Call Georgia home and we’ll thrive together.

Georgia Department of Economic Development 75 Fifth St. NW, Suite 1200 Atlanta, GA 30308 404-962-4000 Georgia.org

KENTUCKY 13 KENTUCKY CABINET FOR ECONOMIC DEVELOPMENT From single-employee startups to century-old brands, Team Kentucky helps businesses of all sizes select, grow, and succeed in Kentucky. With experts in Europe, Asia, and throughout the Bluegrass, Team Kentucky responds quickly, builds long-term relationships, assists with workforce training, and assures companies get the resources they need for success.

Jeff Taylor, Commissioner, Business Development Kentucky Cabinet for Economic Development Old Capitol Annex 300 W. Broadway Frankfort, KY 40601 C E D . k y. g o v

LOUISIANA 12, C4 LOUISIANA ECONOMIC DEVELOPMENT LED is responsible for strengthening Louisiana’s business environment and empowering a more vibrant economy. Working with our local and regional partners, LED attracted 58 economic development projects in 2020, representing over 11,600 new jobs, 8,600 retained jobs, and $12.7 billion in capital investment. The agency is a major supporter of Louisiana’s small businesses and entrepreneurs, offering funding, support, and a full portfolio of programs that boost business.

Louisiana Economic Development 617 North 3rd Street Baton Rouge, LA 70802 225-342-3000 To l l F r e e : 8 0 0 - 4 5 0 - 8 1 1 5 OpportunityLouisiana.com

SOUTH CAROLINA 16, 19 SANTEE COOPER Santee Cooper supports South Carolina’s business community by providing low-cost, safe, reliable and sustainable power, along with sites and incentives, all designed to improve your bottom line. In addition to residential and commercial customers, Santee Cooper powers 27 large industrial customers, Charleston Air Force Base, and municipalities and electric cooperatives across the state.

Bill McCall, Economic Development Specialist Santee Cooper One Riverwood Drive Moncks Corner, SC 29461 843-761-8000 ext. 5381 w m c c a l l @ S a n t e e C o o p e r. c o m w w w. P o w e r i n g S C . c o m

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America’s top state for talent

Virginia continues to raise the bar on talent development.

Virginia Talent Accelerator Program: Fully customized workforce recruitment and training solutions — at no cost to eligible companies Tech Talent Investment Program: America’s largest investment in computer science education ($2 billion in new public/ private funding), doubling annual grads in CS and related fields Computer Science in K-12: First state to incorporate computer science, including coding, as a mandatory part of the curriculum for all public school students (K-12)

AEROSPACE SOARS IN LOUISIANA Louisiana’s talent engine propels your business forward.

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– 12 statewide 5-Axis CNC Machining Programs – 4 FAA-Certified Airframe and Powerplant Programs – Degree programs: 7 Mechanical Engineering, 6 Electrical Engineering, 10 Physics – Aersopace Manufacturing Technology Hub Customized workforce recruitment and training programs are available for qualified companies through LED FastStart, the nation's best workforce development program for 12 continuous years.

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Artemis spacecraft at NASA Michoud Assembly Facility in New Orleans will land the first woman and first person of color on the Moon.