Area Development Q2 Issue 2021 by Area Development

AREADEVELOPMENT SITE

AND

FACILITY

PLANNING

Q2/2021

Where' s the

TALENT?

16th Annual

GOLD &SILVER SHOVEL a wa rd s

w w w. a re a d e v e l o p m e n t . c o m

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America’s top state for talent

Virginia continues to raise the bar when it comes to 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)

CONTENTS

28 Cover Story

Where' s the

TALENT? Unlike in past expansions, growth may spread across more cities as more people have the freedom to work remotely from their preferred locations.

features

16 Adapting to a New Workplace Ecosystem

The office is evolving and becoming more agile — it has to.

32 FDI Creates Symbiotic Relationship with U.S. Suppliers

88 A Turnkey Approach 35 A Renewed Focus on Workforce Diversity

Recent social unrest has brought to the forefront the importance of focusing on diversity and inclusion issues as companies make their location decisions.

24 Shoring Up

86 Life Sciences Fueling

Both domestic and foreign companies with operations abroad are realigning their supply chains and moving operations closer to the U.S. in order to strategically position themselves for growth.

In the wake of the pandemic, life sciences companies are rapidly expanding, spurring a demand for new facilities to house their operations.

Operations for Growth

to Manufacturing Location Decisions

Taking a project from site selection through process design and construction to commissioning with a turnkey approach will help a manufacturer ensure its longterm operational success.

Construction Demand

Area Development® Site & Facility Planning (USPS 345-510) is published four times per year (Q1, Q2, Q3, and Q4) at Lancaster, PA, by Halcyon Business Publications, Inc., 30 Jericho Executive Plaza– Ste 400W Jericho, NY 11753. Periodicals postage paid at Jericho, NY, and additional offices. Single copies, $20. Yearly subscription U.S. & Canada, $75; foreign, $95.

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Volume 56 | Number 2 Q2/2021

“We sense that ‘normal’ isn’t coming back, that we are being born into a new normal: a new kind of society, a new relationship to the earth, a new experience of being human.” Charles Eisenstein (1967 – ) American public speaker and author

departments

4 Editor’s Note

Navigating the New and Improved Economic Landscape

6 In Focus 93 Mitigate the Risks of

Supply Chain Disruption

There are four steps businesses can take now to prepare proactively for policy changes.

91 Latest Trends in the Industrial Real Estate Sector Here to Stay

The industrial real estate sector is experiencing a complete transformation brought about by changes in the retail sector, warehouse design, and supply chains.

special report 16th Annual

& GOLD SILVER 38

SHOVEL a wa rd s

Although 2020’s global pandemic resulted in some projects being stalled or canceled, the annual Shovel Awards recognize many other new and expanded facilities plans that are on track and expected to created thousands of jobs and billions in investment.

The Effects of the Pandemic on Industrial Design

8 Front Line

I nfrastructure Upgrades Vital to U.S. Economy

10 Front Line

U.S. Semiconductor Industry Faces Crises, Opportunities

14 First Person

Dan Kerber, Vice President, Business

Operations, Ericsson Digital Services, North America

95 Ad Index/Web Directory exclusive online content

• Siting Next-Generation Data Centers

• A New Approach

to Energy Savings for Your Next Manufacturing Plant

• Immigration Tips

for International Business Travelers During the Pandemic

• Innovation Lives at National Landing

• Speed to Market Is Key in Landing HighImpact Projects as Economic Recovery Ramps Up

POSTMASTER: Send address changes to Area Development, Circulation Department, 30 Jericho Executive Plaza– Ste 400W Jericho, NY 11753. Subscribers requesting address changes must provide both old and new addresses. © Copyright 2021 by Area Development® magazine. ISSN: 1048-6534. Printed in the U.S.A. Area Development® is a registered trademark of Halcyon Business Publications, Inc.

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EDITORS NOTE

Q2/2021

Navigating the New and Improved Economic Landscape

ith nearly half of Americans having received at least one vaccine dose as of late May, the nation’s economy has opened up with analysts predicting a swift recovery. Following solid economic growth in Q1/2021 associated with the rapid deployment of a $1.9 trillion fiscal support package, The Conference Board predicts1 U.S. Real GDP growth will rise to 8.6 percent (annualized rate) in Q2 and 6.4 percent (year-over-year) in 2021. Despite this rapid growth, changes in the economy abound as we enter what has been called the “new normal,” and we cover many of those changes in this issue. For example, the remote working trend during the pandemic has taken hold and our cover story, “Where’s the Talent,” explains how — unlike in past expansions — growth may now spread across more communities as people have the freedom to work from their preferred locations. A recent study from Cushman & Wakefield explains how employers are “Adapting to a New Workplace Ecosystem.” There is no single answer to how office space in an agile world can best support productivity, innovation, and growth. In order to “Mitigate the Risks of Supply Chain Disruption,” as evidenced during the COVID-19 pandemic, companies are “Shoring Up Operations for Growth,” with many moving operations closer to the U.S. The current shortage of semiconductors points to the necessity of bringing some of this manufacturing back home (“U.S. Semiconductor Industry Faces Crises, Opportunities.”) But it’s not just operations that will differ in the “new normal,” but how we think about employees in the workforce. The social unrest experienced during the pandemic has resulted in “A Renewed Focus on Workforce Diversity.” Now, as companies make their location decisions, diversity and inclusion issues are being included among the site selection factors. Relatedly, the pandemic has impacted the need for leaders with a sense of empathy. Ericsson Digital Services’ VP of Business Operations Dan Kerber explains how a truly empathetic leader understands what employees are going through on an emotional level. All of these issues and more are discussed in this issue’s features as we navigate our new and, we hope, improved economic landscape. 1

https://conference-board.org/research/us-forecast

www.areadevelopment.com EDITORIAL Editor Geraldine Gambale editor@areadevelopment.com Staff and Contributing Editors Lisa Bastian Dave Claborn Mark Crawford Dan Emerson Tom Ewing

Tom Gresham Mark Schantz Steve Kaelble Karen Thuermer

DESIGN/PRODUCTION Art & Design Patricia Zedalis Production Manager Jessica Whitebook jessica@areadevelopment.com

EXECUTIVE Publisher Dennis J. Shea dshea@areadevelopment.com Sydney Russell, Publisher 1965-1986

ADVERTISING SALES National Accounts Executive William Bakewicz (ext. 202) billbake@areadevelopment.com

ONLINE SERVICES Digital Media Manager Justin Shea (ext. 220) jshea@areadevelopment.com Web Designer Carmela Emerson

CONFERENCES/EVENTS Business Development Manager Matthew Shea (ext. 231) mshea@areadevelopment.com

CIRCULATION circ@areadevelopment.com

FINANCE finance@areadevelopment.com

Editor

EXECUTIVE OFFICES Halcyon Business Publications, Inc.

2021 Editorial Advisory Board Bradley Migdal, Senior Managing Director, Business Incentives Practice, Cushman & Wakefield, Inc.

Josh Bays, Principal, Site Selection Group, LLC

Stephen Gray, CEO, Gray

Marc Beauchamp, President and CEO, The CAI Global Group

Anthony Johnson, LEED AP; President, Industrial Business Unit, Clayco

H. Robert Boehringer, III, Managing Director, Global Location and Expansion Services, KPMG

Michael Kruklinski, Head of Real Estate, Siemens Energy and Siemens USA

Paul Naumoff, Principal, National Director of Tax Credits and Investment Advisory Services, EY

Brian Corde, Managing Partner, Atlas Insight, LLC

Scott Kupperman, Founder, Kupperman Location Solutions, LLC

Eric Stavriotis, Senior Vice President, Advisory & Transaction Services, CBRE

Les Cranmer, Senior Managing Director, Savills

Dan Levine, Practice Leader, Location Strategies and Economic Development, Oxford Economics, Inc.

Margy Sweeney, Founder & CEO, Akrete, Inc.

Kate Crowley, Principal, Baker Tilly Capital, LLC Dennis Cuneo, Partner, Fisher & Phillips LLP Amy Gerber, Executive Managing Director, Business Incentives Practice, Cushman & Wakefield

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Bill Luttrell, Director of Corporate Real Estate, Werner Enterprises, Inc.

Dan White, Director, Government Consulting and Fiscal Policy Research, Moody’s Analytics Joshua Wright, Vice President, Economic & Workforce Development, Emsi

President Dennis J. Shea Business/Finance Assistant Barbara Olsen (ext. 225) olsen@areadevelopment.com All correspondence to: Area Development Magazine 30 Jericho Executive Plaza– Ste 400W Jericho, NY 11753 Phone: 516.338.0900 Toll Free: 800.735.2732 Fax: 516.338.0100

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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. (800) 626-2930

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IN FOCUS The Effects of the Pandemic on Industrial Design Industrial/logistics design will see a growth spike despite and because of the pandemic.

The 2,600-acre World Logistics Center in Moreno Valley, Calif., is envisioned as the next-generation logistics campus featuring best-in-class design, cutting-edge technology, and sustainability. At completion, it will include 45 million square feet of high-tech logistics facilities, paving the way for the future of e-commerce. BY RICHARD CLARKE, AIA, PARTNER, AO

The Covid-19 pandemic has affected every facet of our economy, increasing a cultural reliance on ecommerce that is here to stay. Retailers have responded by minimizing square footage of brickand-mortar store fronts, keeping less inventory on site, and focusing more on entertainment and experiential retail to keep shoppers engaged. As a result, the need for warehousing and industrial space has exploded, driving the desire for large-scale, innovative facilities that maximize efficiency and logistical operations. The literal driving force behind the industrial surge is the expansion of transportation capabilities

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worldwide, with international trade becoming the engine of the global

ters drive efficiency at every level with solutions that maximize operations, design, and logistics. A key trend that is quickly becoming the gold standard in industrial facility design is the implementation of high-bay racksupported buildings — a building type that allows the rack system to provide the main structural support for the entire building, including the roof and walls. Previously utilized primarily at port facilities, high-bay rack-supported buildings are now mov-

THE NEED FOR WAREHOUSING AND INDUSTRIAL SPACE HAS EXPLODED, DRIVING THE DESIRE FOR LARGE-SCALE, INNOVATIVE FACILITIES. economy. Goods are being quickly moved around the world on a massive scale, allowing consumers to receive nearly any product on their doorstep within hours or a few days at most. This constant exchange and transportation of goods has fueled the need for advanced industrial developments and logistics facilities that can keep up with extreme consumer demand.

“Logistical Ports” Modern industrial facilities and fulfillment cen-

ing to interior parts of the country creating “logistical ports” offering companies high-volume cubic storage capabilities. These types of facilities are being explored for industrial developments of the future that allow higher structure heights than typical industrial tiltup buildings, maximizing usable space. As the most innovative industrial building type, it comes as no surprise that high-bay rack-supported buildings rely largely on automation, another key driver of logistical

efficiency. Examples of these systems include automated guided vehicles (AGVs) that move products and pallets, robots that retrieve goods, and automated storage systems with robotic shuttles. Outside of the warehouse, circulation plans and systems are an important component, where further efficiencies can be realized through thoughtful integration of cross-docking where structures are designed to accommodate trucks on both sides of the building.

Industrial Master Plans Another trend that has emerged in response to the surging demand for industrial space over the past decade is the monumental growth in size and scale of industrial master plans. Rather than relegating these massive complexes to peripheral industrial zones, as traditionally has been the case, local governments have started capitalizing on this trend to request the inclusion of other consumer uses, such as retail, hospitality, entertainment or office, which can bring additional revenue, meet the needs of their population, and also mitigate risk by diversifying the types of

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businesses aggregated in one location. Leveraging place-making design concepts, architects are now designing vibrant mixed-use industrial master plan communities that create synergies for the array of businesses catering to the thousands of employees working on site. As society begins to heal from the effects of COVID-19, a shift away from e-commerce and

global trade is unlikely. Industrial facilities will continue to develop and transform regions with abundant usable land, creating new centers for innovation and business. Architects and designers are challenged to keep pace with demand, evolving the design of industrial developments, warehousing, and fulfillment centers to keep the lifeblood of the economy flowing.

Developed by Goodman and designed by AO, The Station at Eastvale incorporates 185,000 square feet of retail and restaurants and is part of a three-million-square-foot mixeduse campus expected to employ over 4,000 people at completion.

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FRONT LINE Infrastructure Upgrades Vital to U.S. Economy A mediocre grade for U.S. infrastructure indicates there’s much work to be done to bring it up to the safe, sustainable level vitally needed for the supply chain and economic growth.

BY DAN EMERSON

One of President Joe Biden’s first acts was to announce a $2.3 trillion bill to repair and upgrade the nation’s infrastructure. The bill addresses what has become a perennial topic of debate in Congress, and one that has repeatedly been set aside for action at some future date. It has been well-documented across the United States that years of neglect have resulted in roads and bridges in dire need of repair, outdated public transportation, subpar Internet service, and other critical infrastructure needs. In its most recent report card on the condition of America’s infrastructure, the American Society of Civil Engineers (ASCE) gave U.S. infrastructure a mediocre grade of C-. The engineers estimate it would cost $5.9 trillion over the next decade to bring

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roads, bridges, and airports to a safe and sustainable level. That’s about $2.6 trillion more than what government and the private sector already spend.1 Ryan Severino, chief economist with JLL, said Biden’s bill “pointedly aims to improve aspects of infrastructure vital to the performance of the economy including tunnels, ports, rail, airports, water systems, the electrical grid, and high-speed broadband. Less conventionally, it also aims to improve the quality of buildings, including commercial real estate, upgrade the U.S. supply chain, invest in research and development, and provide job training for workers.”2

Meeting the Needs of the Supply Chain Although some percentage of the price tag would be funded by corporate tax increases, experts

emphasize that repairing the national infrastructure — sooner rather than later — is imperative for the U.S. supply chain. Rich Thompson, global leader of Supply Chain and Logistics Solutions for JLL, told Area Development, “The supply chain community is superexcited; they’ve been concerned about infrastructure for quite a long time. Starting in the ’50s, the United States always had one of the most sought after logistics networks in terms of infrastructure…We’ve been the envy of the world. But, from time to time you have to remodel the house.”

needed here in the U.S,” he noted. For retailers in the age of Amazon, more than ever there is also a “need for speed,” which makes transportation infrastructure critically important.

Avoiding “Bridges to Nowhere” Aaron Klein, a senior fellow at the Brookings Institution, told us that policymakers need to update their approach and focus on investing more wisely in improvements, and “avoid ‘bridges to nowhere.’” Using gas tax revenue as the primary funding source for infrastructure

AS A GROUP, TRANSPORTATION PROVIDERS ARE THE MOST CONCERNED ABOUT SUB-PAR INFRASTRUCTURE. As a group, transportation providers are the most concerned about sub-par infrastructure, Thompson said, which “has an impact on corporations that are responsible for moving freight.” He calls port congestion “a major crisis – not as a direct result of infrastructure, as much as a bullwhip effect we’ve seen with the pandemic. We’ve got 30 to 40 ships in San Pedro Bay, waiting to get into L.A./Long Beach. Ultimately, when the pandemic subsides and the economy continues to grow, we expect all ships to rise with the tide. So it’s important for us to keep up with that… Ports are very demanding in terms of capital investments; you’ve seen what China has done. That’s

funding “is based on the realities of an American economy from the last century,” he said, noting that Congress hasn’t raised the tax in 30 years. “We’re still investing in the idea that adding more highway lane miles will solve our congestion problem; it doesn’t work…We have a lot of potholes to fill before we build new things.” While corporations typically consider tax increases a hindrance to prosperity, Klein said he hopes businesses will “take a long view of infrastructure investing, and not just focus on their next-quarter earnings.” 1

https://www.pbs.org/newshour/nation/us-infrastructure-gets-c-grade-from-engineers-as-roads-stagnate 2 https://www.us.jll.com/en/trends-andinsights/cities/why-the-infrastructure-billcould-have-an-impact

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5/26/21 10:02 AM

AMAZON ORDERED.

MISSISSIPPI DELIVERED. Three years ago, e-commerce giant Amazon announced its first Mississippi fulfillment center. Since then, Amazon has announced nearly 2,500 more jobs with three more fulfillment centers in the state – the fourth currently under construction. Why? Mississippi is a distribution powerhouse. Thanks to our strong business climate, exceptional transportation network and prime location “halfway to everywhere,” companies with distribution needs thrive here. VISIT MISSISSIPPI.ORG/OPPORTUNITY TO LEARN MORE.

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FRONT LINE U.S. Semiconductor Industry Faces Crises, Opportunities Incentives to encourage U.S. chip manufacturing would help to alleviate the current global semiconductor shortage brought about by the pandemic.

BY KAREN E. THUERMER

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.

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“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.

shortage will ease in the coming months as supply adjusts to meet demand. Furthermore, most microprocessors 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.”

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

Using Incentives 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

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

A CORE PRIORITY WITH SIA AND INDUSTRY LEADERS IS TO PUSH FOR FEDERAL MANUFACTURING GRANTS AND TAX RELIEF TOTALING $20–50 BILLION. 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

March, Intel 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

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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, capital- and 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 1

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https://www.industryweek.com/supply-chain/ article/21160486/chip-shortage-could-cut-us-vehicleproduction-by-more-than-a-million-aai-warns 2 https://www.semiconductors.org/chipmakers-areramping-up-production-to-address-semiconductorshortage-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/globalsemiconductor-shortage-solutions/ 5 https://www.areadevelopment.com/newsitems/3-25-2021/intel-manufacturing-chandlerarizona.shtml 6 https://www.semiconductors.org/semiconductorshortage-highlights-need-to-strengthen-u-s-chipmanufacturing-research/ 7 https://www.semiconductors.org/turning-the-tidefor-semiconductor-manufacturing-in-the-u-s/

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FIRST PERSON DAN KERBER I VICE PRESIDENT, BUSINESS OPERATIONS I ERICSSON DIGITAL SERVICES I NORTH AMERICA I

What are the most important soft skills needed for leadership today? Kerber: There are many important soft skills, but the three I have found most important are communication, giving effective feedback, and empathy. Good communication skills are essential for conveying information, decisions, and your thought processes to your team. Giving effective feedback is also essential, but often fundamentally uncomfortable for many people, which makes them reluctant to move into leadership roles. Empathy is hugely important for effective leadership today, especially during the pandemic. I have seen plenty of successful and not-so-successful leaders who fell across the spectrum, ranging from highly empathetic to borderline android, and I know which kind I want to be.

What does it mean to be an empathetic leader? What are the qualities of empathetic leadership? Kerber: Many people think of empathy as understanding what another person is going through, which is part of it. But true empathy means not just knowing it intellectually but also practicing it and understanding what the other people are experiencing at an emotional level. Only then can you fully contextualize their experience, and what you as a leader can or should do to support them. Empathetic leaders are skilled at active listening. This allows them to quickly identify emotional reactions in others and know the right steps to navigate tough situations, without making them worse. Empathy is especially helpful for managing your own emotional reactions — just a little poor behavior can quickly undermine a lot of good work by an otherwise empathetic leader. For me, a big part of being an empathetic leader is doing two things very frequently: checking in with employees to see how they are doing on a personal level — which became even more important during the pandemic — and being deliberate about thinking through how actions or decisions will impact employees and what those actions will feel like for them. To be honest, early in my career as a leader, empathy did not come easily for me. But I had some good role models who helped me see what empathetic leadership

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looked like, which made me realize this was the kind of leader I wanted to be. I also learned that even if it does not come naturally, you can still become an empathetic leader by being deliberate about thinking things through and being intentional about decisions and their impacts, with an empathetic mindset.

What are the business benefits of having strong soft skills? Kerber: The most relevant business benefit from using soft skills like empathy is a high-performing workforce. Niklas Heuveldop, senior vice president for Ericsson North America, once told me that empathy allows our leaders “to bring out the best in our people and mobilize Ericsson to our full potential, for the benefit of our customers, employees, shareholders, and society at large.” When working with vendors and customers, empathy helps us better understand how they will view and experience a given situation, which is an incredibly powerful tool for an effective working relationship. It can be the difference between getting a deal or not, or saving an engagement that is going through a rough patch.

How has the pandemic impacted leadership and the need for soft skills? Kerber: Last year, executives around the world were forced to make employee experience and well-being a top priority. Their ability to lead in a crisis became crucial, especially connecting with employees who were universally anxious and looking to them for answers. For many senior leaders, this meant communicating more frequently and openly, and making employee health and safety a primary topic of nearly every meeting and communication. Working remotely was especially stressful for em-

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ployees — being intentional about things like active listening, asking with genuine interest about how people are doing, and demonstrating vulnerability when talking with employees about your own struggles can go a long way to making up for that missing information and context from physical meetings or interactions.

the meetings also still help them stay engaged and productive, which saves them time. And even though most of us have not seen each other in person for over a year now, we are much closer as a team than we were before the pandemic.

What lessons have leaders learned about leadership and empathy from the pandemic?

Kerber: As unprecedented levels of uncertainty, anxiety, and stress continue to take a toll on people’s well-being, more leaders have also learned how important it is to openly discuss mental health. One way for leaders to do this is by discussing their own struggles and how they are coping. I have written about some of my struggles on our company’s public blog and made it a point to share the fact that I used Ericsson’s Employee Assistance Program. If employees see a senior leader talking openly about using these benefits, it can help remove any stigma associated with utilizing these incredibly valuable resources to a high-performing workforce.

Kerber: In many cases, the pandemic forced leaders to live the same experience as their employees, with everyone being suddenly dropped into an unplanned work-from-home adventure, where working spouses and school-age kids had to compete for quiet working space, and parents with increased workloads also had to fit in time to shepherd their remote-learning kids as they and their teachers struggled to make virtual learning work. I think that experience helped many leaders strengthen their empathy muscles as they experienced the same situations their employees did. An interesting lesson I have seen many leaders learn is the value of frequent meetings with their employees — both team meetings and one-on-ones, where both work and personal topics are discussed. Early in the pandemic, I started having one-on-ones every week with each employee, plus a daily staff meeting with everyone, where all meetings were split 50/50 between personal and work topics. I knew it would be useful in the early weeks, but figured my team would eventually tell me the meetings were taking too much time. However, the opposite has been true. Not only do they look forward to the meetings from a personal point of view,

Any final thoughts?

THE ASSIGNMENT Area Development’s staff editor Mark Crawford recently asked Ericsson’s Dan Kerber, vice president of digital services business operations for North America — who helps companies improve their financial and operational metrics through improved resource management processes — about his thoughts on leadership, especially the need for “soft skills” during the COVID-19 pandemic.

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WORKPLACE TRENDS

Adapting to a New Workplace Ecosystem The office is evolving and becoming more agile — it has to. By David Smith, Head of Occupier Insights, Cushman & Wakefield

gile work is increasing due to the pandemic. Having experienced some of the benefits of working from home — such as reduced commutes, increased ability to balance work and life, preferred space to execute individualized focus work, etc. — more office workers are going to expect flexibility in where they work. Recognizing this coming shift is the easy part. Understanding how portfolio and workplace strategies need to adjust — and then executing on those adjustments — is the challenge. In order to explore and better understand how organizations are thinking about these changes, Cushman & Wakefield partnered with CoreNet Global to survey its membership. With 339 real estate executive responses from more than a dozen countries across all three global regions — Americas, Asia Pacific, and Europe — a few key themes from C-suite executives and business leaders are apparent:

• • THE PURPOSE OF THE OFFICE IS CHANGING:

While there have been positives to the work-from-home experience brought

on by the onset of the pandemic, the lack of in-person interaction has exposed real concerns for the future of how people work. Over the past year employees have experienced challenges to personal well-being, struggled to connect with colleagues and their company’s culture, and do not feel like they are learning. These challenges are particularly pressing for mid-tenure professionals (3–5 years with the company), some of whom could be turnover risks as the economy speeds up in the second half of 2021. In light of all of this, the office is a strategically important tool for meeting human resource and busi-

Employees Perform Best When They Have Freedom to Choose Where They Work, Average % Agreement Across Key Metrics With Choice

79% 65%

Without Choice

74%

75%

66%

52% 39%

36%

Best Work

Culture

45%

49% 34%

Engagement

Experience

Networks

Work-Life Balance

Source: Cushman & Wakefield Experience per Square FootTM (XSF) 2020 Survey

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PRO-BUSINESS ENVIRONMENT

COMMITTED TO YOUR BUSINESS For eight years straight, Georgia has earned the distinction of Top State for Doing Business – and our reputation backs it up. Our pro-business climate is built on decades of working directly with industry to meet their needs. This partnership has resulted in commonsense policies and the nation’s top workforce education program – along with unparalleled logistics systems and overall quality of life – that make Georgia stand out from the rest. Our powerful industry ecosystems are bolstered by our talented and collaborative team, who stand ready to help businesses and industries of all sizes find the resources needed for long-term success.

Learn about the business benefits of being located in Georgia at Georgia.org/topbizclimate

Please select the option below that most closely matches your company’s approach to work in the Pre-COVID-19 era and Post-COVID-19 era. Office First

Office-First Hybrid

100%

12% 7%

80%

Remote-First Hybrid

10% 23%

22% 60%

40%

58% 59%

20%

10% Pre-COVID

Post-COVID

Remote First

The need to provide autonomy and to support work experiences that are challenged by 100 percent remote work have accelerated trends in office design and physical layout. Workplace approaches — from assigned seating to collaboration spaces to working in third spaces — have significantly changed since the pandemic began. Before the pandemic, 59 percent of companies surveyed used an office-first model. Now, as we begin to move to a post-pandemic model, only 10 percent of companies are office-first, with a stunning 81 percent looking at hybrid models. There is a real opportunity for thoughtful employers to transform the workplace experience with flexible options for employees by offering a variety of locations and experiences to support convenience, functionality, and wellbeing.

• • T AILORED APPROACHES ARE REQUIRED:

Different workers and teams have various needs for how they work, when they work, and where they work. Space, Source: Cushman & Wakefield Experience per Square FootTM (XSF) 2020 Survey technology, communication, and corporate leadership are thoughtfully customized to seamlessly support different types of employees (i.e., personas) regardless of where ness goals, as it provides employees with things that they are working. This has never been truer than now. they can’t easily get while working from home. SpecifiOne of the cornerstones of these tailored approaches cally, office layouts can utilize space, technology, and is ensuring technology keeps up. 5G equipped offices amenities to enhance connection, collaboration, and and mobile devices are quickly becoming table stakes. creativity — the very things that too much remote work Adam Stanley, Cushman & Wakefield’s CIO and Chief can jeopardize. Digital Officer, recently explained the importance.2 “OnWhat we see in the survey results and with our clients is that there is no single answer to the question of line audio calls, video conferencing, cloud-based collabohow office space in an agile world best supports proration, and other activities that consume a lot of data ductivity, innovation, and growth. Every sector — even should become much faster (on 5G). And the resulting every company — is going to take a different approach. impact on the employee experience will be significant. In What is broadly true, however, is that the future apaddition, 5G can make remote working more accessible pears to be much more flexible when it comes to work than ever before. Today, there’s always a risk of a glitch arrangements, and the office will be a critical part of during a video call, an e-mail getting delayed, or remote that flexibility. attendance tools malfunctioning due to poor network Office workers are going to demand much more flexcoverage. These hiccups should be less of an issue in ibility moving forward, with options to work from home, the 5G era. Remote employees should feel more conwork from the office, and likely working in third spaces nected to their on-premise peers.” — that is community locations or coworking sites that Of course, increasing technologies is a major infraare neither home nor the core office hub. Recent Cushstructure project and requires significant capital. It will man & Wakefield Experience per Square FootTM survey need strong leadership with a clear mandate. However, it is happening, and this technology infrastructure will be data1 shows how important autonomy and choice are. an important tool as flexible work options become the Workers who have the freedom to choose where they norm. work rate e-performance indices higher by 25+ basis In addition to tailoring solutions to different types of points: experience, best work, culture, engagement, netpeople in different locations, workplace strategies will works, and work-life balance.

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5/26/21 11:32 AM

L i k eR y a nGr e s h

T h a n k st oC o n n e c t i c u t ' st h r i v i n gb i o t e c h c o mmu n i t y , t h i se n t r e p r e n e u ri sa b l et o ma k ea ni mp a c t wi t hi n g r e d i e n t st h a t r e l i e v e p a i nwi t h o u t c o mp r o mi s i n gh i sc o mmi t me n t t owe l l n e s s .

A sC o F o u n d e r &C E Oo f T h eF e e l G o o dL a bi nF a r mi n g t o n , C T , G r e s hi sp r o u dt ob a s eh i sb u s i n e s si nh i sh o mes t a t e , wh e r eh e h a sf o u n dt h ec a p i t a l a n ds u p p o r t h en e e d e dt oma k ei t h a p p e n .

V i s i t A d v a n c e C T . o r g

Wi t hi t se a s ya c c e s st oNe wY o r ka n dB o s t o n , C o n n e c t i c u t i sat a l e n t h u ba n dh o t s p o t f o r i n n o v a t i o na n dd e v e l o p me n t .

T h ef u t u r ei sh e r e , i f y o ud a r et ob r e a ka wa yf r o m t h eo r d i n a r y . J o i nR y a nG r e s hi nt h eh o mef o r b o l d r i s k t a k e r s . V i s i t A d v a n c e C T . o r gt ol e a r nmo r e .

For each item below, please indicate if it is best supported by working in the office, equally supported by office/remote work, or supported best by working remotely. Best supported by working in the office

Equally supported by either

Best supported by working remotely

Casual, impromptu conversations Connection to company culture

81%

17%

75%

Access to equipment (e.g., monitors, printers, etc.)

25%

58% 57%

Collaboration Connection to colleagues

40% 42%

56%

Innovation and creativity

43%

50%

47%

Workplace setup

46%

51%

Connection to leaders Motivation

46%

52%

39%

People management

31%

Learning and development

68%

29%

Focus Access to natural light and outdoor space

60% 61%

13%

49%

65%

Work-life balance

10%

38%

55%

28% 41%

Source: Cushman & Wakefield Experience per Square FootTM (XSF) 2020 Survey

be customized for the various tasks individuals and their teams complete on any given day. When asked about the physical work environment, there has been significant movement in people’s views and approaches postpandemic. There is a shift away from owned spaces and a move towards flexible space. People want flexibility, including virtual options and collaboration spaces. Layouts will be focused less on individual workstations and more on collaboration and connections spaces. This is not surprising as half of the employees surveyed as part of Cushman & Wakefield’s Experience per Square FootTM consulting survey tool indicate they struggle to connect with their company’s culture during the pandemic because the office is seen as a key supporter of connection to company culture, corporate leaders, and other colleagues. And, the office is also the best place for casual interactions, collaboration, and innovation/creativity.

PPORTUNITIES FOR COMPANIES TO •• O

ACCESS DIFFERENT POOLS OF TALENT:

The increase in remote work creates opportunities for companies to tap into new employee bases. A third of survey respondents, including 39 percent of C-suite respondents, expect that companies will allow employees to live anywhere regardless of company office presence. This potentially opens untapped labor pools and gives

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some employees more flexibility to live outside of major and secondary markets. Finding qualified talent has always been a heavy lift for companies — especially in-demand, knowledgeeconomy workers such as those in finance and technology. An unanticipated consequence of the forced work-from-home pandemic response is that management has been able to experiment with more remote work, which may make it easier to fill some roles in the future outside of markets where a company has physical office space. As noted previously, improvements in technology — now tested during a crisis — will accommodate more flexibility for office workers and make remote working more feasible in cases where the role and company culture allows. This, of course, will require an increased emphasis on connecting both in-office and remote employees to corporate culture as well as building interpersonal trust and rapport in new (and potentially challenging) ways.

ORKPLACE ECOSYSTEMS •• W

RULE THE FUTURE:

Employers and employees are both going to have to adapt. The post-pandemic workplace is going to require leaders who are nimble and willing to iteratively try new things — whether that is with working arrangements, the physical office space, or technology. Flexibility will be for free site information, visit us online at www.areadevelopment.com

5/26/21 11:33 AM

THERE IS NO SINGLE ANSWER TO THE QUESTION OF HOW OFFICE SPACE IN AN AGILE WORLD BEST SUPPORTS PRODUCTIVITY,

critical as situations change and different solutions are tested. Employees will come to various conclusions about what is the right workplace mix for them, whether it is work from home, the office, or a third space. The most likely outcome for most will be a combination of all three types of locations varied by the tasks and goals of a given day. Finally, organizations will need to adapt their corporate culture for an environment with fewer in-person opportunities to engage. The data suggests an ecosystem of workplaces will be the way forward to balance employees’ preferences, to maximize business objectives, and to optimize performance. Leaders will need to

INNOVATION, AND GROWTH.

manage change proactively, will need to offer spaces and technologies that are empathetic to both those in the room and those working remotely, and they will need to provide office space that optimizes productivity, connection, innovation, and well-being. n 1 2

https://www.cushmanwakefield.com/en/united-states/insights/us-articles/ choice-drives-employee-experience-infographic https://www.cushmanwakefield.com/en/insights/the-edge

WELCOME TO

WESTCHESTER BIOSCIENCES ADVANCED MANUFACTURING FINANCIAL TECHNOLOGY CLEAN ENERGY WESTCHESTERCATALYST.COM/AREA -DEVELOPMENT

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5/26/21 11:33 AM

LOGISTICS/SUPPLY CHAIN

Shoring Up Operations for Growth Both domestic and foreign companies with operations abroad are realigning their supply chains and moving operations closer to the U.S. in order to strategically position themselves for growth. By Jeff Jorge, Principal, International Growth Services Practice Leader; and Thane Hutcheson, Director; Baker Tilly, LLP

A “Goldilocks” Scenario for the Economy

he pandemic wreaked havoc across every industry, and companies in the manufacturing and mobility/transportation sectors were not spared. The result? Companies are re-evaluating their supply chains and operations in a post-COVID environment.

Realigning the Supply Chain For the past 20 years, manufacturing moved operations from the U.S. to East Asia to take advantage of cheap labor. This approach dominated manufacturers’ strategy, paving the way for a status quo where low-skilled and large-scale manufacturing was done in China. But COVID-19 — coupled with rising wages in East Asia, trade tensions, and a tariff war between the U.S. and China — undermined the business logic of a long, extended supply chain with all of its potential chokepoints along the way. Today, the status quo is no longer tenable: The impact on the supply chain of a tanker running aground in the Suez Canal and bringing shipping to a halt is no longer a “what if” scenario. Companies with operations abroad are looking to shore up their logistics and move operations closer to the U.S. And it’s not just U.S. companies making these calculations. Increasingly, foreign companies are building plants in the U.S. and in nearby countries to be closer to the world’s biggest economy — and to position themselves strategically for growth.

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The pandemic — and the lockdown — produced one of the sharpest declines in U.S. economic activity since the Great Depression. But because the recession was driven by an exogamous event, rather than arising from internal factors (such as inflation, overleveraged consumers, a real estate bubble), the economy has proven resilient. Given the pain that the pandemic inflicted on the U.S., the fundamentals of the economy remain relatively healthy. More importantly, growth is about to become the name of the game in the United States. By Memorial Day, a large portion of the adult population within the U.S. will be vaccinated. It’s possible that by summer, herd immunity will be achieved. That’s not to say that precautions will not remain. But the worst in all likelihood is behind us. Companies that succeeded in battening down the hatches and survived the pandemic are seeing the light at the end of the tunnel. Stimulus checks have hit bank accounts, people are getting vaccinated, weather is improving, and the fundamentals of the economy are showing strength. Along with the recently passed COVID-19 relief package, the Biden administration is looking to push through an infrastructure bill to repair roads and bridges, bring highspeed Internet service across the country, and seed innovative areas for growth. Moreover, the Federal

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“FINDING STEM TALENT DOESN’T HAVE TO BE DIFFICULT.” PRAMOD RAHEJA, CEO AND CO-FOUNDER OF AIRGILITY

For Airgility, a company developing autonomous vehicles designed for disaster response situations, only the best and brightest STEM workers will do. Its affiliation with a University of Maryland incubator has been crucial to finding talent. And that’s just one of the ways being in Maryland helps them thrive.

Get to know Airgility’s story and get to know the talent surrounding them at open.maryland.gov/innovation. Innovation lives here.

A CASE STUDY IN BECOMING AN OMNICHANNEL PLAYER A publicly traded home-improvement products manufacturer historically sold its products to big-box retailers, distributors, and specialty retailers. Given the backdrop of a predictable demand landscape, the manufacturer set up operations offshore in the Far East. Suddenly, however, COVID-19 hit, and the demand landscape and the manufacturer’s business model underwent a paradigm shift. People are spending much more time around the house as a result of the pandemic; they’re making improvements to their homes; and they’re buying a lot more of these products. Meanwhile, the manufacturer’s big-box retailers and specialty distributor customers are changing their approach to order fulfillment from the standpoint that orders are now coming from almost anyone, at nearly any time, and can be fulfilled from almost anywhere. And they’re turning to the manufacturer to fulfill those orders directly. That’s placed pressure on the organization to figure out how to become an omnichannel player: They’re asking themselves, “How do we fulfill orders that look like they’re shipping from the big-box or specialty retailer,

but are actually coming directly from us? We’re drop shipping for somebody else.” The company was not structured for it. It lacked the systems, the supply base, and the ability to package, label, ship, and track was nonexistent. The company has put in a patchwork of temporary fixes to meet needs, but it’s inadequate for the long term. More importantly, they recognize that business will not go back to the way it was. It’s likely that their big-box retailers and specialty shops will continue to rely on them to dropship orders direct for them. The company approached Baker Tilly to work with them to help them assess their current capability to respond to their customers’ needs. Based on the gaps, what should their ideal omnichannel design look like? How should it be designed, simulated, and then launched?

Reserve has indicated that it holds steady on monetary policy, allowing the economy to run hotter than usual to repair the damage from the sharp downturn. These macro issues matter greatly. Companies that have survived the tumultuous year and are stable are asking themselves, how do they make sure they don’t put

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themselves in a position where, if another external black swan event hits, it takes down their business? How can they build resilience — and, conversely, how do they act strategically and take the next step toward fueling growth?

Take a Strategic Approach The most difficult competitor firms face is not necessarily other companies — their most difficult opponent is the status quo, inertia, and resistance to change. And there’s good reason for that: redoing and restructuring the supply chain is a big undertaking. It’s no small matter moving an operation and contemplating things you haven’t had to contemplate for 20 years. (See Case Study.) That’s why it is important to revisit your strategy toward the supply chain and undertake an analysis to evaluate the possibility of nearshoring and/or onshoring your business. By moving your base of operations closer, you mitigate risk. You can reduce potential chokepoints, exert better control over operations, and eliminate logistics issues. You also remove another source of uncertainty: becoming the victim of a tariff war and trade tensions arising from currency manipulation or rising costs of labor. Secondly, if you decide to onshore operations to the U.S., the analysis will give you a framework for those actions/considerations to keep in mind as you search for a new site. In selecting a site, it’s key to understand your supply chain, what you’re making, and what region might make sense, and then understanding which site characteristics are important for the company’s project. Knowing what the site actually entails and being able to move on it quickly — rather than waiting for an understanding of the geotechnical aspects — can eliminate or mitigate uncertainty. Has the site been certified and is it ready for development? Has surveying, mapping, and platting been done upfront by the state or community so that the project is made easier? All these things simplify and speed up the development process.

Onshoring: Risks of Going It Alone We’ve talked about the risks of maintaining operations far away and of the benefits of bringing things back home. But there is also another risk companies face in onshoring and site selection: the tendency of companies to do the analysis in-house. Organizations often take the view that no one knows their product, systems, and processes as well as they do and that they’re best able to analyze whether relocating, nearshoring, or onshoring is right for the company. While that may be true, few companies have the resources to dedicate to analyzing the many options. The same team being asked to evaluate complex strategic decisions has other day-job responsibilities. It’s very difficult to pull that off while minding the shop on a day-today basis. for free site information, visit us online at www.areadevelopment.com

5/26/21 10:29 AM

“It is possible that we will have a Goldilocks moment — fast and sustained growth, inflation that moves up gently (but not too much) and interest rates that rise (but not too much),” said Jamie Dimon, Chairman and CEO of JPMorgan Chase in his annual letter to shareholders 2020.1

As a result, companies underestimate the difficulties of onshoring and site selection and decide to move forward or, conversely, they pass on the opportunity, when they should go forward with it. It’s usually advisable to engage short-term external support for a long-term solution, rather than pulling the team from the day job, i.e., what they’re trying to do with internal resources. The COVID-19 pandemic was a disruptive and transformative experience for companies, especially manufacturers and their supply chain, exposing organizations to risks that few had considered prior to the pandemic. Consequently, the long-held argument among businesses of basing manufacturing in China and Asia to leverage its pool of cheap labor is no longer as compelling as it once was — as witnessed in shortages of vitally needed PPE supplies at the onset of the pandemic. The solution is to bring some of that manufacturing back to the U.S. and

to countries that are nearer and more stable. Companies are taking a long, hard look at their supply chain and logistics, and rethinking where they do business to lay the groundwork for the post-pandemic surge in growth — and mitigate their exposure to disruption. In making these plans, the issues of place and overarching business ecosystem have never been more important. It’s critical to consider a number of key factors in scouting sites and planning facilities — factors such as a deep pool of trained and qualified labor. Undertaking the analysis will provide you with a clearer view as to what to consider in the months to come to position your company for growth. It’s both an opportunity for resilience as much as it is to make decisions that will help you grow in the coming years. n

https://www.jpmorganchase.com/content/dam/jpmc/jpmorgan-chase-and-co/ investor-relations/documents/ceo-letter-to-shareholders-2020.pdf

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6/2/21 3:06 PM

Where' s the

TALENT? Unlike in past expansions, growth may spread across more cities as more people have the freedom to work remotely from their preferred locations.

he latest data from BEA indicate that employers are paying more than ever for talent, as the compensation of employees has more than recovered to $11.7 trillion in Q4/2020, above the previous peak seen at the start of 2020. Now,

more than ever, talent is playing a critical role in propelling the U.S. economy and, importantly, reshaping how cities grow

Michael Reid and Barbara Denham, Senior Economists, OXFORD ECONOMICS

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and prosper. While we do expect the labor market recovery to be more protracted than GDP growth — with U.S. employment not returning to its pre-recession level until the end of 2022 —

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5/26/21 11:20 AM

some cities will outper-

gically organize services to provide workforce support

form others due to their

to key industries in their local economies.

exposure to fast-growing industries and reliance

•l• A Renowned Center of Life Sciences R&D

on skilled workers who

Boston has one of the leading life sciences sectors, which is

command high incomes.

fed by its legacy of revered universities and top-notch hospi-

Nevertheless, a number of

tals. After growing by 51 percent over the previous five years,

smaller cities have grown

Boston’s science R&D sector added 3,750 jobs (5 percent) in

rapidly as well and will

2020. Its large institutions along with a number of liberal arts

continue to do so despite

colleges not only fortify its science and tech sectors, but they

a lack of concentration of

fuel a diverse economic base.

well-paid, highly educated tech workers. This article summarizes the key jobs likely to be demanded in some of the fastest-growing cities in the U.S. First, we have selected a group of fast-growing cities based on projections by Oxford Economics that includes Boston, Raleigh, and Boise. Additionally, we highlight the outlook in Detroit, a city that is facing a particularly steep recovery. Each city’s forecast provides a unique view of growth drivers, which can be applied strategically by understanding the industrial drivers and the talent that supports its growth. Within each city forecast, we identify the top contributing industry for jobs at the MSA (city) level. This allows us to highlight some of the most in-demand skilled occupations using industry staffing patterns. Lastly, we look at those occupations and their links to college majors

• Industry with the largest growth driver: Research and development in the physical, engineering, and life sciences • Occupation demand: Within the R&D life sciences sector, the largest occupations or employed jobs include medical scientists; biochemists and biophysicists; and chemists — most of which require a graduate degree in the biological and biomedical sciences field. • Talent pipeline: Universities in the Boston region supply over 2,000 graduates annually from their biological and biomedical sciences programs. Notable universities here include Boston University, Harvard, MIT, Northeastern, Tufts, Massachusetts College of Pharmacy and Health Sciences, and a number of smaller science and liberal arts colleges. • Outlook: Boston’s knowledge-based economy should continue to outperform the U.S. Our forecast shows Boston’s GDP growth of 12 percent from 2019 to 2025 outpacing the U.S. growth rate of 10.5 percent. • Comparable cities with a life sciences sector: San Diego, Philadelphia, suburban Maryland

that serve as the future talent supply. With this approach, we

•l• A Rapidly Growing Tech Hub

can highlight how postsecondary institutions in a city help to

Raleigh’s economy is recognized for its “research triangle”

supply the right talent to support growth but recognize that

anchored by its three large universities that have fueled a

there is no consistent formula for growth. For state and local

strong tech base in the area. Moreover, its relatively low busi-

stakeholders, knowing the occupation outlook helps to strate-

ness and living costs have attracted a number of businesses

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WhereTheTalentCoverArticle.indd 29

5/26/21 11:21 AM

and residents seeking a low-cost alternative to the coastal cities. After growing by 33 percent over the prior five years, Raleigh’s professional and technical services sector added 1,700 jobs (+2.6 percent) in 2020. Tech firms with a large presence in Raleigh include IBM, SAS, Cisco Systems, and soon Apple, which recently announced that it would build its newest R&D campus in the “research triangle.”1 • I ndustries with the largest growth driver: Computer and peripheral equipment manufacturing; computer systems design and related services • Occupation demand: Within the high-tech manufacturing and computer systems design sectors, the largest occupations include computer systems analysts; software developers; and computer programmers, which typically require a degree in computer science or computer engineering. • Talent pipeline: Universities in the “research triangle” region supply more than 3,000 graduates annually from their computer science and computer engineering programs. Notable universities near Raleigh include Duke University, the University of North Carolina, and North Carolina State. • Outlook: The metro’s tech-fueled growth is expected to continue. Raleigh is expected to see net 2019–2025 GDP growth of 16.1 percent, which ranks in the top 10 of 382 metros and far exceeds the U.S. growth rate of 10.5 percent. • Comparable cities with a high-tech sector: San Francisco, Austin, Seattle

•l• Overshadowed But Not Outshined

• I ndustries with the largest growth driver: Indeed, the fastest-growing sector has been construction, which saw job growth of 58 percent from 2014 to 2019 along with another 8 percent in 2020. • Occupation demand: Within the construction sector, the principal occupations include carpenters, electricians, and plumbers — nearly all of which do not require a college degree. • Talent pipeline: Nevertheless, the abundance of colleges in the area — Boise State University, Brigham Young University Idaho, University of Idaho Boise, and College of Idaho — feed the professional services sectors, including a large cohort of business, management, and marketing graduates, averaging 2,800 annually. • Outlook: Looking ahead to 2025, we expect GDP growth of 15.2 percent over 2019, which is considerably higher than the 10.5 percent national growth rate. Moreover, the growth is expected to be spread across every sector, with the information, finance, and professional services sectors seeing some of the healthiest rates. •C omparable cities with rapidly growing populations: Provo, Utah; Bend, Ore.; Bellingham, Wash.

•l• On the Road to Recovery Synonymous with auto manufacturing, Detroit was just starting to get its groove back with a healthy rate of job and development growth when the COVID-19 pandemic hit. This caused many manufacturing facilities to shutter, which cut durable manufacturing employment in half. Despite a plunge in car sales during the pandemic, demand for new vehicles should resume with the prospect of additional stimulus checks

Located in the southwest corner of Idaho, Boise benefits from

and the pent-up demand for travel. Moreover, Ford and GM

its proximity to the many Pacific Coast tech hubs as well as its

announced they would invest billions in electric vehicle tech-

access to abundant natural resources, which along with its low

nology over the next few years.

cost of living have drawn many new residents over the last 10 years. Its 2014–2019 population growth of 13 percent ranks 10th of 382 metros. Like a number of smaller Mountain region metros, population growth has driven economic growth, instead of the reverse. Like many fast-growing metros, it is home to a number of universities; however, these do not generate the same postsecondary STEM degrees that tech hubs’ universities have. Although Boise provides a different template, its lack of STEM degrees has not impeded its growth; GDP growth in Boise averaged 5.3 percent per year from 2014 to 2019, well ahead of the national average of 2.6 percent.

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• I ndustry with the largest growth driver: Detroit-Dearborn’s motor vehicle manufacturing sector is a popular destination for mechanical engineers supplied by its large universities. • Occupation demand: Within the motor vehicle manufacturing sector, the largest occupations include highly trained industrial engineers and mechanical engineers, which require related degrees in engineering, as well as many blue-collar production jobs. • Talent pipeline: Its large state universities, such as University of Michigan, Michigan State University, and Wayne State University draw a talented pool of students from around the globe. As a result, Detroit area universities are able to produce over 5,000 graduates annually with degrees in engineering and provide

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Now, more than ever, TALENT is playing a a steady pipeline of talent to the local auto manufacturing sector. • Outlook: Detroit’s expected GDP growth of 6.5 percent from 2019 to 2025 trails the U.S. expected growth of 10.5 percent. Its growth, however, is expected to be spread more evenly across manufacturing, finance, information, and professional services. In short, urban enthusiasts’ efforts to re-build Detroit after the housing bust were only partially thwarted by the pandemic. • Comparable cities on the road to recovery: Cleveland, Pittsburgh, Greensboro, N.C.

critical role in

GDP growth over the last expansion, a

PROPELLING

number of other smaller cities showed

the U.S. economy

tech university feeding its workforce.

and, importantly,

The major tech hubs should still see the

RESHAPING how cities GROW and

Although the knowledge economy spurred significant job and

highest growth over the next five years. However, as more have the freedom to work remotely from their preferred location, outdoor, cultural, and other

PROSPER.

•l• Spreading the Growth

that growth can occur without a major

amenities should spread the growth across more cities than experienced in past expansions.

https://www.areadevelopment.com/newsitems/4-27-2021/apple-wake-countynorth-carolina.shtml

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AREA DEVELOPMENT | Q2 2021

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5/26/21 11:22 AM

BUSINESS GLOBALIZATION

Area Development’s editor recently asked Jonathan Samford, Senior Vice President of External Affairs at the Global Business Alliance, about the importance of FDI to the U.S. economy and why U.S. workers — as well as U.S. supplier companies — benefit from this investment. The rate of annual FDI has slowed in recent years, but how steep has the decline been and can you explain the reasons behind it? Samford: That’s a very interesting point you bring up and it’s a great place for us to start. As you know, foreign direct investment (FDI) is an economic term used to describe when companies from abroad, i.e., international companies, build facilities, purchase equipment, hire workers, and create products and services in the United States. You’re right that the rate of annual foreign direct investment flows has slowed in recent years — largely a result of four years of protectionist trade policies, which led many would-be U.S. employers to hit pause on their expansion plans. As a result, annual FDI flows declined 63 percent over the past four years and hit their lowest level in over a decade in 2020. Cumulatively, however, the United

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courtesy of Toyota

FDI CREATES SYMBIOTIC RELATIONSHIP WITH U.S. SUPPLIERS

Toyota Motor North America (TMNA) has launched a virtual education hub that provides visitors with an immersive experience and includes free STEM-based lessons and curriculum in order to increase STEM-based opportunities for underrepresented groups.

States continues to attract international companies. Total FDI in the U.S. hit a staggering $4.5 trillion in 2019 and internationally-based companies investing in the United States now support a record 7.8 million U.S. workers across the country. And one more stat cannot be overlooked: U.S. workers of international companies produce $1 billion a day through their U.S. exports, shipping $395 billion in “American-made” goods to customers around the world every year. It would be hard to find such an extraordinary boost to the U.S. economy anywhere else. Why is FDI so important to the manufacturing sector, in particular? Samford: FDI’s footprint in the U.S. manufacturing sector is really remarkable. International

companies employ 22 percent of America’s manufacturing workforce and created 80 percent of new U.S. manufacturing jobs in the past five years. Pair that with the fact that international companies offer U.S. workers an average of $82,600 in annual compensation — 20 percent more than the private-sector average — and you quickly realize that these companies are creating the types of opportunities that workers dream of and politicians fight over. But I also want to highlight the potential that FDI has on the future of America’s manufacturing workforce. Not only do foreign-headquartered companies that invest in the United States bring the capital they need to operate, but they also tap into world-class industry know-how that boosts America’s ability to compete on the global stage.

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Take Volkswagen, for example: The German-headquartered company is investing heavily in America’s future as a manufacturing powerhouse through a comprehensive workforce development program near its manufacturing plant in Chattanooga, Tennessee, which includes everything from digital fabrication labs in the community’s public schools1 to an innovation hub at the University of Tennessee, Knoxville.2 And this investment in America’s workforce doesn’t stop at the manufacturing sector. We also see it in examples like Zurich North America’s first-of its-kind apprenticeship program, where the Switzerlandheadquartered insurance provider is investing in our country’s future by providing incredible opportunities for apprentices to secure associate degrees while training with the latest technology to meet the challenges of a rapidly changing world.3 How does FDI impact innovation? Samford: Global companies are uniquely positioned to raise America’s innovation game because of their access to global capital, world-class expertise, and commitment to reinvest their profits back into their U.S. operations. By definition, these companies have succeeded in their home market before they expand their operations to the United States. And when they “import” those best practices, America’s workforce benefits through higher human capital development and worker productivity. American scientists and engineers at international companies — more than a quarter million of them according to government data – are also fueling America’s private-sector research and development. Annually, international companies spend more than $67 billion on U.S. R&D activities, or 15 percent of all private-sector R&D performed in the United States. I mentioned earlier that FDI flows had dropped 63 percent under the previous administration, but it’s worth looking further into that stat. The one component of FDI that prevented that

FDI CREATING U.S. JOBS, GROWNG THE ECONOMIY

7.8 MILLION U.S. workers employed by international companies

2.8 MILLION

U.S. manufacturing workers employed by international companies

24%

of all U.S. exports produced by international companies

$100 BILLION

reinvested annually by international companies into their U.S. operations

$67 BILLION

spent on R&D activities by international companies in the U.S. Source: G lobal Business Alliance

statistic from being even worse was “reinvestment of earnings,” i.e., current investors taking their profits and reinvesting them back into their U.S. operations. These reinvestments made up 51 percent of all FDI in the U.S. last year. Actions like these demonstrate that international companies are here to stay and are deeply invested in growing America’s innovation advantage. Can foreign investors address the need for workers to be upskilled in the post-pandemic environment? Samford: Not only can they — they are. Take a look at Toyota Motor North America, which has committed through its Pledge to America’s Workers to provide 200,000 workforce training opportunities over the next five years through apprenticeships, work-based learning opportunities, retraining, on-the-job training, and other educational opportunities.4 They also launched a new virtual education platform which aims to increase STEM-based opportunities for underrepresented groups in the field.5 These employers bring cutting-edge technology and resources to spur U.S. entrepreneurship and ensure America’s future workforce can meet the challenges of a competitive global economy. STEM education is a huge component of this effort, and Panasonic’s partnership with Kareem Abdul-Jabbar’s Skyhook Foundation in the greater Los Angeles area is a great example. Panasonic and Skyhook are working to address the widespread gap between future tech jobs and access to science, tech, engineering, arts. and math education, especially in underserved communities by delivering immersive, hands-on outdoor STEM learning opportunities for students, even throughout the pandemic. The COVID-19 pandemic revealed the need to shorten supply chains for everything from pharmaceuticals to PPE to consumer goods. How does FDI help in this regard? AREA DEVELOPMENT | Q2 2021

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Samford: If anything, the pandemic revealed the importance of global connections and diverse supply chains. For the same reason we are told not to invest all our retirement nest egg in one stock, growth and resiliency are best achieved through diversification. Unfortunately, the pandemic sent politicians on both sides scrambling to convince voters they could lead through this crisis, resulting in a cattle call of COVID-19 policy proposals. Espousing “economic resilience,” “supply chain self-sufficiency” and “buy American,” these well-intentioned protectionist ideas would all sever America’s cross-border business connections. FDI is a great yardstick for measuring America’s economic competitiveness, and as we have seen, protectionist trade policies lead to less investment. As I write this, France-headquartered Sanofi just announced it will manufacture 200 million doses of Moderna Inc.’s COVID-19 vaccine, helping to relieve a critical bottleneck.6 It is the third time this international company and major U.S. employer has marshalled its resources to produce another company’s vaccine, even as it is spending considerable resources on developing its own treatments. Roche, a pioneering healthcare company, created the first commercial SARS-CoV-2 test in March 2020 to meet urgent medical needs extremely early on in the pandemic.7 We also saw Medtronic, a global leader in medical technology, publicly share the design specifications for its Puritan Bennett 560 ventilator, allowing other companies to copy it in an effort to increase global ventilator production.8 So, unfortunately, the localization of supply chains ends up reducing competition, stands in the way of potentially life-saving innovation, makes America less competitive for international investment, and more vulnerable to future crises. Importantly, how does FDI benefit local U.S. companies — our readers — in the areas in which they choose to locate? Does FDI create a synergistic environment for U.S. companies? Samford: Global companies are deeply invested in the communities in which they sustainably operate. In fact, for every job at an international company in the United States, three more are supported in the community. International companies place a huge emphasis on sourcing from local supply chains, and I cannot overstate the benefits that international companies bring to U.S. small businesses. Over the past decade and a half, international companies expanded the total amount of

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business they do with U.S. suppliers by nearly 30 percent in real terms, jumping from $1.5 trillion to $2.4 trillion. In the manufacturing sector, business between international companies and domestic suppliers rose by nearly 70 percent during that same period. That is more than 14 times greater than the overall growth rate achieved by all U.S. businesses. And this symbiotic relationship between international companies and U.S. suppliers has been accentuated by the pandemic. I know of a couple of companies that at the onset of the pandemic reached out to their U.S. small business partners just to make sure they were able to weather the economic storm of the past year. What is the Biden administration doing to encourage FDI? Samford: Time will tell, but there have been some promising early signs. The administration has pledged to reestablish good relationships with our allies. And our new U.S. Trade Representative, Ambassador Katherine Tai, recently stressed the importance of pursuing “trade policies that advance the interests of all Americans — policies that recognize that people are workers and wage earners, not just consumers.”9 Such a recognition is tailor-made to encouraging more job-creating foreign direct investment. Is there anything else you would like to add? Samford: First, thanks for the opportunity to share my perspective. Second, there is no doubt that the pandemic has initiated an important debate about the value of a global economy. While the calculus of trade policy can be complex, our connection to the global economy is very tangible. The cars we drive, the coffee we drink, the technology that allowed us to stay connected with loved ones this past year, and, in many cases, the paychecks that our friends and family earn — they all exemplify the contributions that international companies make into benefiting our daily lives. As America builds back from the devastating effects of the pandemic, it is my hope that we will harness those connections and welcome the full potential of the world’s most successful employers. n Note: Data in this article is from the Bureau of Economic Analysis (BEA), Survey of Current Business. For more information, also go to https://globalbusiness.org 1

https://www.vwelab.org/ https://tickle.utk.edu/volkswagen-ut-and-ornl-announce-partnership-innovation-hub/ https://www.prnewswire.com/news-releases/zurich-extends-apprenticeship-programto-atlanta-and-rcis-business-301238830.html 4 https://pressroom.toyota.com/the-road-to-everywhere/ 5 https://pressroom.toyota.com/toyota-revs-up-support-for-e-learning-across-united-states/ 6 https://www.bloomberg.com/news/articles/2021-04-26/sanofi-agrees-to-help-make-dosesof-moderna-s-covid-vaccine 7 https://www.roche.com/media/releases/med-cor-2020-03-13.htm 8 https://www.wsj.com/articles/medtronic-publishes-design-specs-for-ventilator-to-combatcoronavirus-11585572382 9 https://ustr.gov/about-us/policy-offices/press-office/press-releases/2021/february/openingstatement-ambassador-designate-katherine-tai-senate-finance-committee 2

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5/26/21 11:09 AM

WORKFORCE

A Renewed Focus on Workforce Diversity Recent social unrest has brought to the forefront the importance of focusing on diversity and inclusion issues as companies make their location decisions. By Brian Corde, Managing Partner, Atlas Insight

hile 2020 will certainly be remembered for the COVID-19 pandemic, the year also turned out to be transformative on the diversity and inclusion front (D&I). While much of the world sat socially distanced in their homes, we watched as our fellow Americans expressed outrage and grief over the gaps in opportunity and equity experienced by people of color. While it may have been expected that a global pandemic would shape site location strategy, is it possible that D&I initiatives would also alter the future of site location strategies?

A Wake-Up Call With the social unrest and calls to action that 2020 brought, the year served as a wake-up call to American businesses that diversity was critical to continued success in this country. In addition to previously conducted studies such as a 2018 McKinsey & Company report finding that diverse corporate leadership leads to increased profitability,1 the social awakening of the gener-

al public demanded that companies become intentional about advocating for equity and acceptance. In particular, consumer product companies have found that being intentional social justice leaders often leads to greater profits. A growing consumer base, both in numbers and in wealth, demands that the products they are buying come from a company committed to being part of the solution toward social change. As a result, corporate focus on diversity and inclusion is critical to the ongoing success of any business; however, this philosophy is not entirely new.

The Missing Factor About 15 years ago, I was working on an office site selection project for a major financial services firm looking for a new location to place approximately 300 salesrelated jobs in the western United States. The project search criteria included all the customary factors that you would think would go into the site selection process, such as labor availability and skill sets, cost considerations, proximity to educational institutions, ease of access, and real estate options. Our travels took us to numerous locations in the Mountain West, where many of the communities visited were not very racially diverse. One of the meetings that we had during the site visits left a lasting impression on me. We were conAREA DEVELOPMENT | Q2 2021

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ducting our normal due diligence and meeting with several community and business leaders around a large table. As the conversation was winding down, I asked a question that changed my perception on diversity in the site selection process. My seemingly benign question to the group was, “If there was something about this community you would like to change, what would it be?” As we went around the room giving everyone a chance to voice an opinion on the question, we got the standard list of answers that you would expect. Each person gave an answer similar to that timeless interview question where the candidate attempts to self-identify their weaknesses, and somehow finds a way to twist that weakness into a strength. But as the round-robin of answers moved around the table, it eventually got to the only person of color in the room. He paused for a few seconds, and then he simply said in the most heartfelt way, “I wish there were more people like me that lived here.” The answer hit me hard. As someone who grew up in Brooklyn, N.Y., I was accustomed to diversity being part of daily life. The block I lived on was filled with people from numerous ethnic and religious backgrounds. Right or wrong, business decisions have historically tended to favor financial profit and not social justice action, so it was not surprising that when I started assisting with the site location process, diversity issues rarely were factored into the overall process. But at that moment, I realized we were missing out on a critical factor in our site selection matrix. Previously, the only D&I factor that was considered was largely tied to language capabilities, and this was

A growing consumer base, both in numbers and in wealth, demands that the products they are buying come from a company committed to being part of the solution toward social change.

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typically only a factor during site location projects related to customerfacing contact centers where foreign language skills were a direct need. However, after that encounter, I realized that companies were missing out on a factor that could be an extremely important asset if deployed correctly — diversity.

Gaps of Opportunity

By comparing past site selection practices to current best practices, we can see how far things have come in the struggle to bridge the gaps of opportunity that exist today for people of color. Companies are taking more of an active role in this effort, developing policies to promote hiring and advancement of individuals who are, or who identify as, part of marginalized groups. For many companies, this is a core belief that will pay performance dividends; for others it amounts to an exercise in appeasing a socially conscious populace that has an extremely important and influential amount of buying power. But these D&I practices have predominately been impacting site selection projects that involve corporate offices, such as headquarters, major talent centers, back-office operations, and customer-facing contact centers. But what about manufacturing projects? Traditionally, manufacturing operations were sited with specific geographic considerations in mind that related to the availability of raw materials and the delivery of finished products. In today’s environment, we are seeing a significant uptick in D&I factors working their way into the site location process for these types of facilities as well. For our most socially progressive companies, locating a facility in a community that aligns with their core belief system is a priority. We have been involved with manu-

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5/26/21 10:59 AM

facturing operations that have cut communities from consideration that scored favorably from a mathematical and financial perspective because the current political environment in that location did not match up with their core values. In 2020 we also saw manufacturing clients remove cities from consideration due to those cities having historical ties to racial injustice, despite current efforts to promote diversity and inclusion. Through these case studies, we can see clear evidence of companies aligning their manufacturing operations with their corporate commitment to social justice. In addition to the social responsibility impact, we have also seen manufacturing operations use D&I practices to potentially boost their employment and retention numbers. Underemployment and lack of opportunity disproportionately impact people of color across all industries. With a growing labor shortage tied to issues of worker engagement and the sparse availability of skilled labor, D&I practices can have a dramatic impact on the ability of a company to attract and retain talent. By directly engaging with these underserved and underrepresented populations and showing willingness to put in the training required, manufacturers are tapping into a plethora of potential which could help them solve their immediate and significant labor shortage issues.

South Carolina is ready to invest in you

Creating a Diverse Corporate Culture However, in a twist of irony, all diversity and inclusion initiatives are not created equal. Focusing solely on diverse hiring goals does not automatically translate into a diverse and/or successful corporate culture. Employers must focus in on employee engagement in order to tap into the most beneficial characteristics of their D&I practices. This means that the factors we evaluate during the site selection process need to go deeper than a simple breakdown of the existing community population by race. Communities must be able to demonstrate that diversity exists not only in the context of race, but also by ethnicity, religion, sexual orientation, or gender identity among other factors. Additionally, communities need to show that all people have access to educational opportunities that eventually translate into meaningful career opportunities. Finally, communities need to show that they have promoted an environment where marginalized groups feel included and able to succeed. An inclusive environment must be evident at every level of community leadership from the city council and city staff to local business leaders. This demonstrates to prospective companies that the community is serious about creating high-value opportunities for all people, and that traditionally marginalized persons will find welcoming arms and opportunities in things like community leadership, volunteer organizations, and wealthier neighborhoods that had traditionally been less diverse. This type of community modeling will also show prospective companies that they will be able to operate in accordance with their core values, including meeting all D&I goals and initiatives that company leadership — and its employees — require. This may be even more critical for a community to demonstrate as the future of remote work is sure to increase beyond pre-pandemic (but hopefully decrease from pandemic) levels. As it is likely companies will still need to set up centralized offices for staff to travel to on occasion, they will need to do so in communities that continue to be leaders in the fight for equal opportunity for all, and ones that can overcome the problem of “I wish there were more people like me here.” n 1

https://www.mckinsey.com/business-functions/organization/our-insights/ delivering-through-diversity

We are readySC

Find out more at www.readysc.org AREA DEVELOPMENT | Q2 2021

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5/26/21 11:00 AM

16th Annual

GOLD & SILVER SHOVEL a wa rd s

AROUND THIS TIME A YEAR AGO, a lot of life

vided. Needless to say, the pandemic threw curveballs

seemed to be in a holding pattern, with progress on

that may have altered some plans. But please read on

many things at a near standstill amid the COVID-19

for some of the best economic development news to

pandemic. But not everyone allowed adversity to

emerge from a crazy year.

stand in the way of opportunity. Indeed, while most of us were learning the term

“social distancing,” exploring the ins and outs of

Creating Lots of Jobs It was hard to miss all of the last year’s headlines

masking, searching for toilet paper, and perfecting

focused on job loss. But in our Gold Shovel and Sil-

the art of sourdough baking, economic development

ver Shovel states, there were all kinds of headlines

leaders in quite a few states remained plugged into

announcing major job-creating plans. The ones with

their phones and Zoom meetings, making impressive

four-digit job promises are discussed below — and a

location deals. By many measures, 2020 was a downer

number of these big-job deals are also mentioned in

of a business year, but our Shovel Awards unearthed

separate sidebars focused on the year’s top projects. Texas took home another Gold Shovel honor,

plenty of good news. Our state honors are based on information provid-

pulled into the top slot among the most populous

ed by economic development officials (see methodol-

states by none other than an electric engine.

ogy), and the info was current at the time it was pro-

Tesla announced its Austin “gigafactory”

B Y STEVE K A ELB LE

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5/27/21 10:55 AM

project and very quickly started turning dirt and putting up steel (see the Tesla project sidebar). It’s a $1.1 billion investment, and it is expected to create some 5,000 jobs. Amazon has a habit of sprinkling bigjob projects all over the place, and it certainly didn’t disappoint the residents of the Lone Star State. The e-commerce and technology giant brought forth not just one, not just two, but three different Texas projects in 2020 — a thousand jobs each for Waco and Pflugerville, and 1,500 for Oak Cliff. Meanwhile, the company pledged $237 million and 1,500 jobs at a new fulfillment site in Windsor, the biggest jobs announcement of the year in the Silver Shovel state of Connecticut. Another Amazon mega project was announced in Gold Shovelwinning Arizona, where as many as 1,975 jobs are slated for Maricopa County. And two Amazon projects were the biggest job creators announced in Silver Shovel-winning Tennessee, in Mount Juliet and Memphis, each expected to employ a thousand people and lots of robots. More 1,000-job Amazon projects are slated for Little Rock, in the Silver Shovel state of Arkansas, and Madison County, leading the way toward Mississippi’s Silver Shovel status. All of these “help wanted” signs, plus several smaller Amazon projects across the country, have been welcome in the midst of a pandemic-caused downturn. But of course, Amazon was one of the companies in the best position to benefit from the fact that so many people were choosing to shop from home. Walmart had some 1,000-job distribution center projects of its own to add to the list. One, with an investment of $220 million, is slated for Dorchester County, in Silver Shovel winner South Carolina. Another,

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Arizona: Where innovators turn for what’s next.

2020

GOLD SHOVEL

PROJECT OF THE YEAR

AWARD WINNER

azcommerce.com

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5/26/21 3:48 PM

Bold and exciting advancements are happening in the Grand Canyon state. Arizona is proud to be home to world-class tech leaders who are building products that are changing the world. On its mission to pioneer semiconductor innovation, Taiwan Semiconductor Manufacturing Company (TSMC) discovered that Arizona provides the perfect platform to scale and succeed as the state continues to drive rapid industry growth and economic momentum. Being near three of the world’s largest markets, Arizona has earned a reputation as the premier state to catalyze advanced manufacturing and is ranked #3 for fastest tech manufacturing growth in the U.S. Plus, Arizona offers a lifestyle that allows employees to achieve their personal goals with endless outdoor activities, vibrant arts and culture, easy commutes, and affordable housing. It’s this perfect balance that makes life better here—and provides the winning combination for global innovators like TSMC.

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16th Annual

& GOLD SILVER SHOVEL a wa rd s

METHODOLOGY Area Development’s annual Gold and Silver Shovel Awards recognize states for their achievements in attracting high-value-added 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-10 job-creation and investment projects initiated in 2020. 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 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: 12+ million, 8+ to 12 million, 5+ to 8 million, 3+ to 5 million, and fewer than 3 million. Three other states were awarded Gold Shovels for their achievements in the manufacturing sector. Finally, runners-up in each of the above population categories were awarded Silver Shovels.

carrying a potential price tag of $606 million, was announced in the Indianapolis metropolitan community of Greenfield, in the Manufacturing Gold Shovel winning state of Indiana. Another prominent company to benefit from the pandemic was Peloton, buoyed by the fact that so many fitness-focused people were forced out of the gym and into alternative fitness arrangements in their basements or spare bedrooms. Lots and lots of them bought Peloton products, and by December the company announced plans to expand its Plano campus and add some 1,600 Texas jobs in varying corporate functions. Texas also celebrated 1,200 jobs to be created by a FedEx Ground sorting facility in Dallas. Leading the way in Gold Shovel-winner North Carolina was Centene, the health insurance giant from St. Louis that announced plans to bring 3,237 jobs to Charlotte in a regional and IT hub (read more on Centene in a project sidebar). Another big North Carolina job creator with an IT focus was the expansion of Bandwidth Inc. in Raleigh. The deal was a little more than $100 million in capital investment, with a promise of 1,165 jobs and a designation of Raleigh as corporate HQ. Speaking of IT, Microsoft made big-job commitments in two places in 2020. Silver Shovel-winning Virginia landed a 1,500-job Microsoft deal in Fairfax County that was that state’s leading job creator. Atlanta

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5/27/21 10:57 AM

M A N U FA C T U R I N G

p r o j e c t

o f

t h e

y e a r

Tesla Picks Texas for Its Latest Gigafactory

Tesla broke ground in August 2020 for its latest billion-dollar “gigafactory” in the Austin, Texas, area,1 promising to create some 5,000 automotive jobs. Local officials believe the development could spur another 4,000 new jobs in its wake. also will receive 1,500 Microsoft jobs, the year’s top job creator in Silver Shovel winner Georgia (check the project sidebars for more on these two big deals). In Lordstown, a community southeast

The assembly operation is going up on a 2,100-acre site near Del Valle, lured there with the help of some $60 million in tax breaks. The facility will build Tesla’s Cybertruck pickup and be a second U.S. manufacturing location for the Model Y small SUV. Planning for the Tesla career opportunities is starting young, thanks to a partnership with the local school district,2 which provided some of the tax breaks that sealed the deal. The district is creating a student training program that will involve high school juniors and seniors. Area higher-education institutions are also exploring collaborative programs with Tesla. 1 2

https://www.fox7austin.com/news/tesla-breaks-ground-on-new-gigafactory-near-del-valle https://www.kxan.com/news/education/del-valle-isd-partners-with-tesla-for-new-student-training-program/

of Cleveland in the Silver Shovel-winning state of Ohio, Ultium

p r o j e c t

Cells’ joint venture be-

o f

t h e

y e a r

tween General Motors

M A N U FA C T U R I N G

and LG Chem will create 1,000 jobs making

City/County

# Jobs

Inv. Amt.

Del Valle, TX

5,000

$1.1 billion

Automotive

hicles (find more info

Northrop Grumman Weber County, UT 2,250 $380 million Corp.

Aerospace/ Defense

in the project sidebar).

Taiwan Semiconductor Manufacturing Co.

lithium ion batteries for GM all-electric ve-

Beyond the Amazon project mentioned above, Gold Shovel winner Arizona an-

COMPANY Tesla

Grön Fuels Ultium Cells LLC

Phoenix, AZ

1,600

$8 billion

West Baton Rouge, 1,025 $9.2 billion LA 1,000

Automotive Silicon Carbide Wafers

N O N - M A N U FA C T U R I N G

ments in 2020. The

COMPANY

RealReal, an online

Centene Corp.

City/County

# Jobs

Inv. Amt.

Charlotte, NC

3,237

$1 billion

luxury consigner,

Microsoft Corp. Atlanta, GA 1,500 $75 million

picked Phoenix for its

Microsoft Corp.

center, saying it would hire 1,685 people over the next few years.

Renewable Fuels

$1.5 billion

of major job develop-

fourth e-commerce

Semiconductors

REE Wolfspeed C Marcy, NY 614 $1.1 billion

nounced another pair

Lordstown, OH

Industry

Fairfax County, 1,500 $64 million VA

Accenture Federal St. Louis, MO 1,400 $28.5 million Services LLC Netflix

Albuquerque, 1,000 $150 million NM

Industry IT Headquarters AI & Cloud Services Software Financial & Professional Services Film & TV Production

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16th Annual

& GOLD SILVER SHOVEL a wa rd s

TEXAS Gold Shovel Winner COMPANY

City/County

N/E

# Jobs

Inv. Amt.

Del Valle

5,000

$1.1 billion

Point Comfort

474

$1 billion

ulf Coast G Ammonia LLC

Texas City

$600 million

Chemicals

Freshpet Inc.

Ennis

427

$265 million

Pet Food

Amazon

Waco

1,000

$200 million

E-Commerce

Peloton

Plano

1,600

$10.5 million

Amazon

Oak Cliff

1,500

N/A

TESLA

Max Midstream

FedEx Dallas N 1,200 $7.5 million Amazon Navistar. International Corp

Industry Automotive Oil & Gas

Corporate Offices E-Commerce Logistics / Distribution

Pflugerville

1,000

$250 million

E-Commerce

San Antonio

600

$250 million

Automotive

And Taiwan Semiconductor in Phoenix will create 1,600 jobs making silicon chips (see the project sidebar). Missouri bolstered its Silver Shovel status with a pair of big-job projects. In St. Louis County, Accenture Federal Services plans

(pop. 28.99 million) States with populations of 12+ million

to create some 1,400

Manufacturing Project of the Year

jobs (see the project sidebar for more details). And in the Kan-

FLORIDA

sas City metropolitan community of Belton,

Silver Shovel Winner COMPANY Pfizer Dollar Tree Saputo Inc.

City/County

N/E

# Jobs

Inv. Amt.

Tampa

300

$20 million

Marion N 700 $232.5 million County

Industry

pet products distribu-

Life Sciences

tor Chewy announced

Logistics/ Distribution

plans for a distribution center that will begin

Hillsborough E 88 $75 million County

Dairy Products

Citigroup Tampa E 732 $65.5 million

Financial/ Professional Services

Synergy Technologies, LLC

Duval E 300 $1.4 million County

Information Technology

The Boeing Co. Jacksonville E 334 $25 million

Aviation/ Aerospace

creating project of the

United Parcel Jacksonville E 300 $342 million Service Co.

Logistics/ Distribution

year in South Carolina

Florida Can Manufacturing

Polk N 160 $120 million County

Aluminum Cans

PennyMac Loan Hillsborough E 400 $5.6 million

Financial/ Professional Services

NeoGenomics Laboratories, Inc.

Lee E 295 $27.5 million Corporate County Headquarters

(pop. 21.73 million) States with populations of 12+ million

SPONSOR: Enterprise Florida

with 1,200 new jobs and potentially grow to 1,600. The biggest job-

was in the business of agriculture and aquaculture. Located in Hampton County, the Agriculture Technology Campus is a $314 million, 1,500job project located on

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A top STEM graduate producer. Affordable high-tech workforce. 237,000+ high-tech workers. 4th largest high-tech workforce in U.S. #1 High-tech employment in the southeast. 3rd largest overall workforce in U.S.

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EnterpriseFlorida.com

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p r o j e c t

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Microsoft Chooses Atlanta For New AI/Cloud Computing Facility

Artificial intelligence and cloud computing are the focus areas at the new Microsoft development in Atlanta. It’s a $75 million project promising 1,500 jobs, some highly technical plus other support operations.1 Microsoft is planning to fill half a million square feet at a building under construction in Atlantic Station, including “client facing” office space and a retail area. The promise of a robust talent pool from area universities, proximity to other tech giants like NCR Corp., and a history of successful public-private partnerships helped solidify Microsoft’s decision.2

a thousand-acre site filled with greenhouses, a distribution center, and a co-packing facility. Partners in the joint venture include

The company already has a cloud computing engineering center in the area, and offices in such Georgia places as Alpharetta and Buckhead.

Mastronardi, Clear

Food and Drink, and

Water Farms, LiDestri

https://www.ajc.com/business/microsoft-open-atlantic-station-office-create-500-jobs/MMFswUQJteZvTsEkNTGEfL/ 2 https://www.midtownatl.com/about/news-center/post/how-atlantic-yards-project-landed-microsoft-amid-covid19-pandemic

the GEM Opportunity Zone Fund. Leading the job creation pack in the

NORTH CAROLINA

Gold Shovel state of

Gold Shovel Winner COMPANY

City/County

N/E

# Jobs

Utah was the Northrop

Inv. Amt.

Industry

Centene Corp. Charlotte N 3,237 $1 billion

IT Headquarters

Bandwidth Inc. Raleigh E 1,165 $103.4 million BioAgilytix Labs

Durham

878

Information Technology

$61.5 million Biotechnology

Pratt & Whitney Asheville N 800 $650 million Eli Lilly and Co.

Aircraft Engine Components

Durham N 462 $474 million Pharmaceuticals County

Rockingham N 352 $78.3 million Ontex Group County Nestlé Purina PetCare Co.

Eden

300

Personal Hygiene Products

$450 million

Pet Foods

Thermo Fisher Greenville E 500 $500 million Pharmaceuticals/ Scientific Packaging UPS

Alamance N 451 $262.2 million Warehousing/ County Distribution

Audentes Sanford N 209 $109.4 million Gene Therapy Therapeutics Products

Grumman project in Weber County, where a $380 million investment is to create 2,250 jobs (see the project sidebar). Economic development officials are also sleeping well knowing that bedding and furniture maker/ distributor Malouf plans to build a new corporate headquarters in Nibley, a

(pop. 10.6 million) States with populations 8+ to 12 million

project that comes

Non-Manufacturing Project of the Year

with some 1,195 new

SPONSORS: E conomic Development Partnership o f North Carolina Greenville-ENC Alliance Rockingham County Economic Development

jobs. Another healthy announcement totaling 1,159 jobs was in Lindon, where insurer

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5/27/21 10:59 AM

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ALL IN NORTH CAROLINA

In partnership with:

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Centene Chooses Charlotte for Regional HQ/Technology Hub

Centene, a major name in the world of health insurance, is pumping more than a billion dollars into a regional headquarters in Charlotte, North Carolina, that promises to create more than 3,200 new jobs.1 When it was announced last July, it was the largest single job announcement in the history of the state’s incentives program. That incentives program pledged up to $450 million in assistance over about four decades. And while 3,237 jobs is already an impressive total, the St. Louis-based company says its Charlotte plans could eventually result in 6,000 jobs. The company oversees care for more than 20 million customers, and the Charlotte project will provide not just a regional HQ but also a technology hub. 1

https://www.charlotteobserver.com/news/business/article243910837.html

D RIVIN G YOU R B USI N ES S FURT H ER ROCKINGHAM COUNTY, NC AT A GLANCE Two Interstates flanking both sides of the County, Easily reach more than 2/3 of the U.S. population within a days truck drive, Regional workforce capable of meeting employment needs, Favorable cost-of-doing business environment.

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GoHealth Inc. announced plans for a major

within our Shovel Award-winning states.

expansion.

Some of these deals related directly to the

A few more deals promise four-digit job counts in our Shovel-winning states. Gold Shovel honoree Kansas had its biggest project — from both dollars-invested

pandemic response, but many involved other areas of biotech and life sciences. North Carolina, for example, will welcome 878 life sciences testing jobs from

and new-jobs perspectives — in Kansas City, where Urban Outfitters announced plans for a distribution center. The $403 million project will create at least 1,734 jobs. In Hartford, Connecticut, Infosys will be expanding by 1,000 jobs more than already planned. Last in this big-job part of the roundup, but most definitely not least, was the deal with the biggest price tag, $9.2 billion. Louisiana, which took home Silver Shovel

EASTERN NORTH CAROLINA:

WHERE INDUSTRIES THRIVE

kudos, will welcome Grön Fuels to the Port of Greater Baton Rouge (see the project sidebar).

Healthy Investments Needless to say, health was a front-andcenter topic on everyone’s minds in 2020, as the pandemic was the most dramatic and disruptive health event many of us have ever experienced. The drive

Discover why Greenville, NC is the hub of a region with the workforce, resources, and cost structure which give pharmaceutical manufacturing companies what they need to grow and succeed. • Excess capacity for power, natural gas, water, and wastewater service • 2 leading educational institutions in pharma and biotech programs • $90M investment in a new life sciences and biotechnology research center

• 3 global pharmaceutical companies • Concentration of pharma related jobs 12 times higher than the national average • Labor force of more than 94,000 people with a median age of only 32 years

for better health and biotechnology advancement also inspired some significant investments

encalliance.com | 252.751.6018

guc.com | 252.752.7166

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5/27/21 11:00 AM

16th Annual

& GOLD SILVER SHOVEL a wa rd s

MICHIGAN

M A N U FA C T U R I N G

Gold Shovel Winner COMPANY

City/County

N/E

# Jobs

Inv. Amt.

The Kroger Co. Wayne N 270 $95 million

Industry Warehousing/ Distribution

Magna Electric St. Clair N 304 $70.1 million Vehicle Structures - Michigan, Inc.

Mobility & Automotive

BioAgilytix Labs in

Dakkota Integrated Wayne E 400 $45 million Systems, LLC

Mobility & Automotive

at Thermo Fisher Sci-

The Paslin Company Macomb E 200 $45 million

Assembly/ Automation Systems

entific in Greenville,

Magna Seating Wayne E 480 $35.4 million of America Inc.

Mobility & Automotive

pharmaceutical jobs

Detroit Manufacturing Wayne E 225 $31.9 million Systems, LLC

Mobility & Automotive

jobs in gene therapy

Perrigo Co.

Kent

170

$18.4 million Headquarters

Marelli. Oakland E 100 $17.1 million North America, Inc Bridgewater Interiors

Eaton

Wacker Chemical Corp. Washtenaw

400

$15.9 million

$68 million

Engineering/ Design/ Development Automotive Headquarters

Durham, plus 500 jobs

462 Eli Lilly & Co. in Durham, and 209 at Audentes Therapeutics in Sanford (now known as Astellas Gene Therapies). Thermo Fisher Scien-

(pop. 10.0 million) States with populations 8+ to 12 million

tific also announced an

SPONSOR: M ichigan Economic Development Corp.

expansion in Lenexa, Kansas, worth about 300 new jobs related

GEORGIA

to COVID testing, and the company pledged

Silver Shovel Winner COMPANY

City/County

N/E

# Jobs

Inv. Amt.

Industry

Microsoft Atlanta N 1,500 $75 million Zinus Amazon

McDonough

804

$108.2 million

Appling

800

$200 million

AI & Cloud Services Mattresses E-Commerce

HelloFresh Newnan N 750 $7 million Deluxe

Sandy Springs

709

Food Distribution

$10 million

FinTech

250 jobs through an expansion in St. Louis, Missouri. Lots of pharmaceutical headlines also promised jobs

Duluth

700

$30 million

Distribution

in South Carolina

West Point

678

$240 million

Automotive

Bang Energy

Douglasville

600

$145 million

Beverages

last year. Examples

Facebook

Social Circle

200

$2.3 billion

Data Center

Hartwell

130

$550 million

Pet Food

ThredUp Hyundai Transys

Nestlé Purina PetCare

included Vigilent Labs in Charleston County, creating more

(pop. 10.62 million) States with populations 8+ to 12 million

than 400 new jobs

Non-Manufacturing Project of the Year

at a COVID- 19 test

SPONSORS: G eorgia Department of Economic Development; Georgia Ports Elevate Douglas Economic Partnership

manufacturing facility; Nephron Pharmaceuticals in Lexington

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6/2/21 1:32 PM

S A M U E L L . S TA N L E Y J R . President, Michigan State University

“ TH E RE’S T HI S A BILITY A MON G P EOPL E I N M ICH IG A N TO SOLVE PROBLE MS.” Dreaming. Innovating. Growing. It's how Michigan talent is making an impact on the world in key industries. From tech to mobility to advanced manufacturing, there's a different kind of hustle here. Expand your business in Michigan and get access to support, camaraderie and new opportunities. Make the move at michiganbusiness.org/pure-opportunity

16th Annual

& GOLD SILVER SHOVEL a wa rd s

OHIO Silver Shovel Winner COMPANY Ultium Cells LLC

City/County

N/E

# Jobs

Inv. Amt.

Lordstown

1,000

Industry

$1.5 billion

Automotive

Nestlé Purina Williamsburg N 300 $550 million PetCare Co.

Food/ Agribusiness

Stakes Manufacturing, Eastlake E 400 $33.5 million LLC

Apparel Printing

GOJO Industries, Inc. Navarre E 296 $176.2 million

Hygiene Products

United Parcel Service, Henry N 606 $154 million Inc.

Logistics/ Distribution

Recycled PureCycle: Ohio LLC Hamilton E 51 $213.2 million Polypropylene Andelyn Biosciences, Inc.

Columbus

170

$90 million

Biotechnology

Pella Corp. Troy N 428 $15.7 million

Windows/ Doors

Union Home Strongsville E 450 $10.9 million Mortgage Corp.

Financial Services

Meijer Stores Limited Tipp City E 137 $160.6 million Warehousing/ Partnership Distribution

(pop. 11.69 million) States with populations 8+ to 12 million Manufacturing Project of the Year

County, expanding by 380 jobs; and Santa Cruz Nutritionals, expanding in Sumter County and creating 164 new jobs. Another pandemic-linked announcement was in Auburn, Alabama, where SiO2 Materials Science said it would

SPONSOR: J obsOhio

spend $163 million expanding its facility, thanks to a federal

VIRGINIA

contract for making COVID vaccine vials.

Silver Shovel Winner COMPANY

City/County

Hershey Chocolate of Virginia Inc. DuPont

N/E

# Jobs

Inv. Amt.

Industry

Augusta E 110 $135 million County

Food Products

Chesterfield E 60 $110.5 million County

Cerio, LLC

Frederick County

KD Navien

Advanced Materials

$90 million

Data Center

James City N 180 $77.5 million County

Boilers/ Water Heaters

Fairfax N 1,500 $64 million County

Software Development

DHL Exel, Inc.

Stafford N 577 $72 million County

Distribution/ Logistics

SimpliSafe

Henrico N 572 $5.5 million County

Customer Support

T-Mobile USA, Inc.

Henrico E 500 $30 million County

Customer Support

Montgomery E 350 $8.5 millon County

Software Development

Microsoft Corp.

TORC Robotics

East Coast Repair Newport E 332 $64.4 million Marine Vessel & Fabrication News Maintenance & Repair

Pfizer continues to add to its footprint in Tampa, in Silver Shovel winner Florida. Its 2020 expansion announcement will create 300 new jobs, and the company has continued to unveil new Tampa plans as 2021 has unfolded. In Columbus, Ohio, Andelyn Biosciences announced plans for 170 jobs related to gene

(pop. 8.69 million) States with populations 8+ to 12 million

therapy contract de-

Non-Manufacturing Project of the Year

velopment and manu-

SPONSOR: Virginia Economic Development Partnership

facturing. Next door in Indiana, Elanco

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decided to move its global headquarters to

Direct Club. The maker of teeth-straighten-

downtown Indianapolis, a move that could

ing products is adding a new manufactur-

create some 570 jobs.

ing facility in the community of Columbia,

Connecticut had plenty of healthy announcements, too. Examples included SCA Pharmaceuticals, expanding its Windsor production of compounded pharmaceuti-

worth more than 600 jobs.

Logistics Growth The many Amazon projects spotlighted

cals and adding 360 jobs; Sema4 in Stam-

above provide a fine example of the eco-

ford adding 300 jobs at a state-of-the-art

nomic power of logistics, especially in

clinical lab; and Putnam Plastics, which

a pandemic time when more and more

makes medical tubing and said it will ex-

people want things delivered right to their

pand in Killingly and add 250 jobs. SCA

door. And there were even more Amazon

Pharma also pledged 175 jobs through an

deals across the country that were just a

expansion in Little Rock, Arkansas.

bit smaller than the big-job deals listed

And in Tennessee, local officials were

above, including three in separate Kansas

smiling with the announcement from Smile

locations that together add up to a poten-

Douglas County Welcomes Bang Energy!

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5/27/21 11:03 AM

M A N U FA C T U R I N G

p r o j e c t

Ultium Cells to Mass-Produce Lithium Ion Batteries in Ohio

o f

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y e a r

Construction is moving right along at the Ultium Cells LLC battery cell manufacturing facility in Lordstown, Ohio.1 Ultium is a joint venture between General Motors and LG Chem, and it will be mass-producing lithium ion batteries to power GM all-electric vehicles.

There will soon be a huge market for these products, given GM’s announced commitment to 30 new electric vehicles by 2025. That is a significant milestone on the way to GM’s promised all-electric lineup2 by 2035. The new northeast Ohio plant broke ground in the spring of 2020. The nearly three-million-square-foot plant is slated to be finished in 2022, ready to bring that future to life and create more than a thousand new jobs. The initial plans called for a $1.5 billion investment, but more recent reporting now pegs the total at $2.3 billion, and Ultium has continued to acquire acreage in the area. 1

https://www.wkbn.com/news/local-news/ultium-cells-celebrates-completion-of-building-inlordstown-looks-to-hire/ 2 https://www.nbcnews.com/business/autos/gm-go-all-electric-2035-phase-out-gas-diesel-engines-n1256055

tial 1,650 jobs. But Amazon was far from the only player making big headlines in logistics, warehousing, and distribution last year — there was plenty of growth promised across the sector. In Florida, logistics and distribution jobs grew by the hundreds. For example, hundreds of jobs

N O N - M A N U FA C T U R I N G

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were announced in support of Dollar Tree

y e a r

in Marion County. The first 200 jobs

Microsoft to Develop Software in Northern Virginia

A Microsoft software development hub in northern Virginia will create as many as 1,500 new jobs.1 It’s a $64 million project supported by a state grant estimated at $22.5 million, and beyond the Microsoft operations, the site plan also includes retail space for engaging directly with customers. That customer-engagement component is an important part of the project, according to company officials. Customer feedback is expected to weigh in on and improve technology development. The Reston Town Center development adds to the company’s existing Virginia presence, which also includes corporate locations in Reston and Richmond, plus an enterprise data center in Mecklenburg County. Terrell Cox, general manager at Microsoft, noted the facility “will allow Microsoft to deliver even more solutions from a region known for its innovation and passion for technology.”2 1

https://wtop.com/business-finance/2020/05/microsoft-is-adding-1500-jobs-in-reston-with-new-rd-hub/ http://www.fairfaxtimes.com/articles/microsoft-expands-in-reston-1-500-new-jobs/article_c8ac9926-a68d11ea-81c0-ebe17fd1ecc3.html

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would be connected to a 500,000-squarefoot new distribution facility, while a second phase could add another million or more square feet and 500 more jobs. Some 300 more are expected as part of a $342 million expansion by United Parcel Service in Jacksonville. Next door in Georgia, fast-growing meal kit maker HelloFresh

for free site information, visit us online at www.areadevelopment.com

5/27/21 11:04 AM

THE LOCATION FOR YOUR NEXT GOLD SHOVEL WINNER.

southalabamamegasite.com

ARIZONA Gold Shovel Winner COMPANY Taiwan Semiconductor Manufacturing Co.

City/County

N/E

# Jobs

Inv. Amt.

Phoenix

1,600

$12 billion

Industry Semiconductors

Commercial Mesa E 186 $435 million Steel Metals Co. Fabrication Ball Corp. Glendale N 145 $238.6 million

Metal Packaging

Red Bull North America

Glendale

$131 million

Beverages

Zoom Communications

Scottsdale

250

$11.4 million

IT & Software

Gilbert E 274 $66.1 million Northrop Grumman

Aerospace & Defense

Amazon PMG Companies

Maricopa County

1,975

$20 million

E-Commerce

Lake Havasu N 263 $23 million City

Consumer Products

Global Energy Solutions Eloy N 176 $101.6 million Phoenix N 1,685 $29 million The RealReal

announced 750 jobs in Newnan, launching its first distribution facility in the Southeast — the company sells easyto-make meals by the

Energy Storage

millions across North

Products

America, Europe, and

Distribution/ Logistics

Asia. Meanwhile, the clothing reseller Th-

(pop. 7.29 million) States with populations of 5+ to 8 million

redUp said it would

Manufacturing Project of the Year

expand its distribution

SPONSORS: A rizona Department of Commerce Salt River Project

operation in Duluth by 700 jobs, with a facility ranking as the company’s largest of five

INDIANA

M A N U FA C T U R I N G

Gold Shovel Winner COMPANY

City/County

N/E

Amazon

Greenfield

# Jobs 800

Over in South Caro-

Inv. Amt.

Industry

$80 million

E-Commerce

Barletta Boat Bristol E 250 $7 million Co., LLC

Plastics & Rubber

Corsicana La Porte N 350 $8.6 million Mattress Co.

Furniture & Related Products

Elanco US Inc. Indianapolis N 573 $122.5 million Electric Last Mile, Inc.

Mishawaka

960

Chemicals/ Pharma

$303.4 million

Automotive

Gruma Corp. Plainfield N 544 $148.5 million

Food Processing

Milwaukee. Greenwood N 481 $6.8 million Electrical Electric Tool Corp Equipment/ Components/ Appliance NewCold Indianapolis Lebanon N 202 $152.1 million Warehousing/ Operations, LLC Storage Subaru of Indiana Automotive, Inc.

Lafayette

350

were tied to an expansion in the Ross Stores warehousing and distribution operation in York County. The off-price apparel and home fashions retailer said it would invest $68 million and add the jobs over the next few years.

Automotive

Retailing giant

Walmart Fulfillment Greenfield N 1,000 $606 million Services, LLC

Logistics/ Distribution

Kroger, meanwhile,

SPONSOR: Indiana Economic Development Corp.

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lina, another 700 jobs

$158 million

(pop. 6.73 million) States with populations of 5+ to 8 million

distribution centers.

picked the Michigan community of Romulus in Wayne County for a

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5/27/21 11:04 AM

Innovation goes further in Indiana. From sustainable power to life-saving medical technology, business leaders in Indiana are powering a better world. Indiana’s diverse business community has what it takes to help you to bring your biggest ideas to life.

SEE HOW YOU CAN TAKE YOUR BUSINESS IDEAS FURTHER IN A STATE THAT WORKS. AStateThatWorks.com

16th Annual

& GOLD SILVER SHOVEL a wa rd s

MISSOURI Silver Shovel Winner COMPANY

City/County

N/E

Ford

Kansas City

150

$100 million

Automotive

St. Louis

250

$50 million

Life Sciences

Purina Bloomfield E 30 $83 million

Pet Care Products

Thermo Fisher Scientific

Bennett Packaging

Kansas City

# Jobs

Inv. Amt.

Industry

$69.6 million

Digital Arts

Accenture Federal St. Louis N 1,400 $28.5 million Financial & Professional Services LLC Services Chewy, Inc. Belton N 1,200 $143.2 million

Logistics & Distribution

Veterans United Columbia N 600 $14.1 million Financial & Professional Services BoxyCharm Belton N 250 $50 million

Logistics & Distribution

Plumrose USA Moberly N 190 $68.6 million

Food Processing

Melaleuca, Inc. Kansas City N 202 $12.3 million

Logistics & Distribution

(pop. 6.10 million) States with populations of 5+ to 8 million

high-tech, automated fulfillment center that’ll cost $95 million and create more than 250 jobs. Competitor Meijer plans an expansion of its supply chain facility in Tipp City, Ohio, a $160 million project that could add more than 100 jobs. And another

Non-Manufacturing Project of the Year

competitor, Aldi, has

SPONSOR: M issouri One Start

picked the Alabama community of Loxley in Baldwin County for a 200-job, $100 million

SOUTH CAROLINA

distribution center and

Silver Shovel Winner COMPANY Mark Anthony. Brewing, Inc Walmart Agriculture Technology Campus (Mastronardi, Clear Water Farms, LiDestri Food and Drink) DC Blox, Inc.

City/County

N/E

Richland County

Inv. Amt.

Industry

$400 million

Brewery

Dorchester N 1,000 $220 million County

Warehousing/ Distribution

Hampton County

# Jobs 300

N 1,500 $314 million

Ag/ Aquaculture

Greenville N 5 $200 million County

Headquarters/ R&D

Nephron Pharmaceuticals Corp.

Lexington E 380 $215.8 million Pharmaceutical County Prep

Techtronic Industries (TTI)

Anderson E 525 $100 million County

Vigilent Labs Santa Cruz Nutritionals, LLC

Charleston N 400 $104.6 million Pharmaceutical County Prep Sumter N 164 $84 million County

Ross Stores, Inc. York County E 700 $68 million Arrival North America

Consumer Products

York County

240

$46 million

Pharmaceutical Prep Warehousing/ Distribution Automotive

(pop. 5.27 million) States with populations of 5+ to 8 million

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regional headquarters operation. The new center will allow Aldi to open some three dozen new stores in the Gulf Coast area. Misfits Market also distributes food, but through a direct-toconsumer subscription model. The company announced a 200,000-square-foot cold storage facility in West Jordan, Utah, that is to create more than 600 jobs. And As-

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6/2/21 3:16 PM

M A N U FA C T U R I N G

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Taiwan Semiconductor’s New Phoenix Plant Will Help Alleviate U.S. Chip Shortage

Many in the U.S. have fretted about American reliance on overseas electronics production, so the headlines in May 2020 were welcome: Taiwan Semiconductor Manufacturing Co., the world’s biggest contract silicon chip maker, would be investing as much as $12 billion to build a new factory in Phoenix, Arizona.1 The company said the factory would create more than 1,600 jobs and produce 20,000 wafers monthly. The company does the bulk of its manufacturing in Taiwan but has a small factory in the state of Washington. The Arizona plant could start production in 2024, according to initial reports. More recent reporting2 suggests that the project may be growing, even before the first chip is produced. The latest media reports peg the investment at closer to $35 billion and indicate that the so-called “mega site” in Arizona could ultimately include as many as six factories. Local officials have described a phased development plan. https://www.bloomberg.com/news/articles/2020-06-09/tsmc-confident-of-replacing-any-huawei-orderslost-to-u-s-curbs 2 https://www.abc15.com/news/business/taiwan-semiconductors-phoenix-plant-likely-three-times-larger than-originally-announced 1

sociated Wholesale Grocers announced plans to build a $300 million distribution hub in Hernando, Mississippi. UPS made headlines in Ohio, where it will move into a North Baltimore/Henry Township facility and create 606 logistics and distribution jobs, and in Alamance County, North Caroli-

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na, where a $262 million warehousing and

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distribution facility will create 451 jobs.

Accenture Federal Services’ St. Louis Facility to Offer AI, Cyber Solutions

The promise of some 1,400 Accenture Federal Services jobs is part of an advanced technology center planned in St. Louis County, Missouri. The technology and consulting company plans to serve federal agencies with artificial intelligence, digital, cloud, automation, and cyber solutions from the new center, which aims to reach its promised job total over the next few years. Accenture operates cyber and advanced technology centers in San Antonio, Texas, and Washington, D.C., and specialized centers in Niagara Falls, New York, and Chesapeake, Virginia. The new $28.5 million operation in the St. Louis area community known as Town and Country will collaborate closely with those operations. If it meets its hiring targets, it can qualify for some $20 million in retained state withholding taxes through the Missouri Works program. The company will also receive recruitment and training assistance through the Missouri One Start program.1 1

https://www.stltoday.com/business/local/accenture-chief-says-new-st-louis-office-is-game-changingfor-our-business/article_f6a9926a-abef-5a7d-b36c-31706048d48e.html

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And third-party logistics provider DHL will invest $72 million in a distribution center that will add 577 jobs in Stafford County, Virginia. In Missouri, not far from the 1,200 Chewy distribution jobs mentioned above in Belton, BoxyCharm announced its own 250-job logistics and distribution facility. The company is a

for free site information, visit us online at www.areadevelopment.com

5/27/21 11:06 AM

GREATER PHOENIX Home to a highly skilled workforce and business-friendly environment

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5/11/21 9:39 AM

16th Annual

& GOLD SILVER SHOVEL a wa rd s

TENNESSEE Silver Shovel Winner COMPANY

City/County

Domtar Paper Co. LLC

N/E

# Jobs

Inv. Amt.

Industry

Kingsport

137

$320 million

Paper Mills

Collegedale

125

$225 million

Food Products

The Lampo Group Franklin E 599 $52.4 million

Financial Services

McKee Foods Corp.

TTI Floor Care Cookeville E 500 $20 million General Motors, LLC

Electrical Appliances

leader in the beauty subscription box business, and its Kansas City-area project is a 575,000-square-foot e-

Spring Hill

N/A

$1.7 billion

Automotive

Amazon

Mount Juliet

1,000

$250 million

E-Commerce

commerce operation.

Amazon

Memphis

1,000

$200 million

E-Commerce

And Melaleuca, maker

Travel Services

of health and wellness

Agero, Inc. Clarksville E 900 $2 million

Facebook Gallatin N 100 $800 million Data Processing, Hosting, & Related Services Smile Direct Club Columbia E 630 $34.1 million

Dental Products

(pop. 6.77 million) States with populations of 5+ to 8 million

products, said it would expand its distribution operations in the Kansas City area with a half million-square-foot

SPONSOR: T ennessee Department of Economic & Community Development

facility worth about 200 jobs. In Greenwood, Indiana, a warehouse

UTAH

and service hub was

Gold Shovel Winner COMPANY

City/County

Northrop Grumman Corp.

N/E

# Jobs

Inv. Amt.

Aerospace/ Defense

Box Elder E 221 $310 million County

Consumer Products

Malouf Nibley E 1,195 $120 million

Consumer Products

Ogden E 300 $60 million Williams International

Aerospace/ Defense

HealthEquity

$41 million

Finance/IT

RS Technologies, Inc. St. George N 358 $35 million

Draper

Composite Utility Poles

550

waukee Electric Tool Corp., with more than 480 jobs on the line. Indiana is always active in the logistics sector, and NewCold picked Indiana for one of the largest cold storage

West Jordan

600

$25 million

Food Products

facilities in the country.

Cytiva (Hyclone Laboratories, LLC)

Logan

160

$18.7 million

Life Sciences

The $152 million facil-

Go Health, LLC

Lindon

1,159

$10 million

ity just north of India-

Salt Lake

520

$10 million

napolis is expected to

Misfits Market

Quotient Technology, Inc.

(pop. 3.21 million) States with populations 3+ to 5 million Manufacturing Project of the Year

SPONSOR:

AREA DEVELOPMENT

ShovelArticle2021.indd 62

Industry

Weber N 2,250 $380 million County

Procter & Gamble Co.

announced by Mil-

Northern Utah Economic Alliance

create about 200 jobs and hold more than 100,000 pallet positions for refrigerated

for free site information, visit us online at www.areadevelopment.com

6/2/21 3:17 PM

F YEARS O

16th Annual

& GOLD SILVER SHOVEL a wa rd s

products. Another big cold-storage facility

facturing plant in Huntsville, meanwhile,

was announced at the Pocatello Regional

landed an additional $830 million invest-

Airport in Idaho, courtesy of Frigitek Indus-

ment to beef up its cutting-edge manufac-

trial Parks.

turing technologies and provide enhanced training for up to 4,000 employees. The

Manufacturing Big Headlines

state also saw major expansion announce-

Pandemic or not, there was still plenty of

ments such as a $775 million steel slab pro-

demand for manufactured goods. Alabama

duction facility at AM/NS Calvert, a joint

was a big beneficiary, named a Manufactur-

venture involving ArcelorMittal and Nippon

ing Gold Shovel winner. Just a few exam-

Steel. More Alabama jobs are promised

ples of the activity there included 300 new

involving wood products at Pinnacle Re-

textile jobs in Selma at contract sheeting

newable Energy in Demopolis and farm

manufacturer HomTex, 275 aerospace jobs

products at Coastal Growers in Atmore. Another Manufacturing Gold Shovel win-

through expansion at the Airbus aircraft facility in Mobile, and 279 auto jobs at DURA

ner was Michigan, with a host of headlines

Automotive Systems, which broke ground

related to its automotive sector, including

in Muscle Shoals last August on a state-of-

opportunities linked to the growth of inter-

the-art facility that will make lightweight

est in electric vehicles. For example, Mag-

structures for such things as electric vehicle

na Electric Vehicle Structures announced

battery systems. The Mazda Toyota Manu-

304 jobs in St. Clair, where the company will build complex battery enclosures for the

ALABAMA

M A N U FA C T U R I N G

vehicle. Dakkota Inte-

Gold Shovel Winner N/E

# Jobs

Inv. Amt.

COMPANY

City/County

Warrior Met Coal BCE, LLC

Tuscaloosa N 359 $528.5 million Metallurgical County Coal

HomeTex Selma N 300 $10.5 million

Industry

Textiles & Apparel

for a 400-job facility in Detroit, Wayne County, supplying various

Airbus

Mobile

275

$40 million

Aerospace

assemblies for Jeep

Muscle Shoals

279

$59 million

Automotive

products. From Wayne

Mazda Toyota Manufacturing US

Huntsville

$830 million

Automotive

AM/NS Calvert (Arcelor Mittal)

Mobile

200

$775 million

Steel

SiO2 Materials Science

Auburn

220

$163 million Biotechnology

Pinnacle Renewable Demopolis N 45 $95 million Energy Coastal Growers

Atmore

150

$87 million

Wood Products Farm Products

(pop. 4.93 million) States with populations 3+ to 5 million

SPONSORS: A labama Department of Commerce; AIDT Baldwin County Economic Development Alliance

AREA DEVELOPMENT

ShovelArticle2021.indd 64

grated Systems plans

DURA Automotive Systems

ALDI, Inc. Loxley N 200 $100 million Headquarters/ Distribution

GMC Hummer electric

County’s Highland Park came a 480-job expansion announcement from Magna Seating of America, and there is to be a 225-job expansion at Detroit Manufacturing Systems. There also was news of an expansion at automotive seat-maker Bridgewa-

for free site information, visit us online at www.areadevelopment.com

5/27/21 11:08 AM

16th Annual

& GOLD SILVER SHOVEL a wa rd s

ter Interiors that will create 400 jobs and

Solutions made a 960-job announcement

at the Paslin Co., where 200 new jobs are

in Mishawaka. It’s a startup electric vehicle

linked to a deal to supply parts for electric

maker, which plans to take over the old

vehicle maker Rivian.

AM General plant where Hummers were

Just to the south in Manufacturing Gold

produced; the vehicle it plans is an urban

Shovel winner Indiana, the automotive

delivery van. Meanwhile, Subaru of Indiana

sector was busy, too. Electric Last Mile

Automotive in Lafayette said its assembly operation would grow by 350 jobs through

TOP FULFILLMENT CENTER PROJECTS* COMPANY

City/County

# Jobs

Kansas City, KS

1,734

$403 million

Belton, MO

1,200

$143.2 million

Walmart

Greenfield, IN

1,000

$606 million

Walmart

Dorchester County, SC

Urban Outfitters, Inc. Chewy, Inc.

Inv. Amt.

1,000

$220 million

Marion County, FL

700

$232.5 million

Ross Stores,Inc.

York County, SC

700

$68 million

Kroger/Ocado

Frederick, MD

550

$245 million

Dollar Tree

* In terms of jobs + investment, excluding Amazon

an expansion that will add a service parts facility and transmission assembly shop. General Motors’ big move into electric vehicles will mean an investment of nearly $2 billion in its plant at Spring Hill, Tennessee. It’ll be the automaker’s third facility

M A N U FA C T U R I N G

p r o j e c t

o f

t h e

making EVs. In Mississippi, Navistar Defense

y e a r

will create 500 jobs in an expansion of a mili-

Northrop Grumman Growing Jobs, Investment in Utah

Northrop Grumman already is the biggest private-sector aerospace and defense player in Utah, employing more than 5,000 people across the state. In January 2020, the company announced plans to invest some $380 million to expand its Weber County operations, and the construction of four new, state-of-the- art buildings is now under way.1 The project will create jobs around Hill Air Force Base for generations to come — specifically, 2,250 jobs over the next two decades.

tary vehicle operation

The company produces a wide range of systems and products, everything from autonomous systems to space and cyber solutions. The Utah expansion was aided in part by an Economic Development Tax Increment Finance tax credit, through which the company can earn back up to 30 percent of the new state taxes it generates over the 20-year life of the deal. A post-performance tax credit totaling about $60 million has been approved, and the company gets a portion of that every year it meets specific criteria.

business that will em-

https://nuea.org/2021/03/15/northern-utahs-booming-aerospace-and-defense-industry-is-aboutto-get-a-lot-louder/

AREA DEVELOPMENT

ShovelArticle2021.indd 66

in West Point. Navistar International Corp. broke ground in San Antonio, Texas, on a manufacturing facility supporting its commercial truck and bus ploy some 600 people. And in Georgia, Hyundai Transys announced an expansion worth $240 million and 678 jobs. Florida continued to grow its aerospace

for free site information, visit us online at www.areadevelopment.com

5/27/21 11:09 AM

and defense sector in

ARKANSAS

2020, where a 334-job

Silver Shovel Winner

Boeing expansion in

City/County

N/E

# Jobs

Inv. Amt.

Amazon

Little Rock

1,000

N/A

E-Commerce

grow its maintenance,

Amazon

North Little Rock

500

N/A

E-Commerce

repair, and overhaul

Ash Flat

245

$35 million

Electronics

operations. And in

Nice-Pak Jonesboro E 300 $65 million

Sanitation Wipes

North Carolina, en-

Nestlé Jonesboro E 100 $100 million

Food Processing

SCA Pharma Little Rock E 175 $13.5 million

Biotech/ Pharmaceuticals

Emerson

Industry

Jacksonville aims to

COMPANY

Revolution Little Rock E 66 $21 million

Recycled Plastics

Gerber Fort Smith E 50 $30 million

Food Processing

Fiocchi Little Rock N 57 $15 million

Firearms Ammunition

La-Z-Boy

Siloam Springs E

125

N/A

Furniture

(pop. 3.02 million) States with populations 3+ to 5 million

SPONSOR: A rkansas Economic Development Commission

gine maker Pratt & Whitney’s $650 million Asheville plant announcement carried an 800-job plan. Looking to the West, Gilbert, Arizona, welcomed the news of expansion at Northrop Grumman’s satellite engineering and manufacturing facility, which will em-

AREA DEVELOPMENT

ShovelArticle2021.indd 68

for free site information, visit us online at www.areadevelopment.com

6/2/21 3:17 PM

ANOTHER WIN FOR ARKANSAS

Arkansas recently earned a Silver Shovel award thanks to the creation of 2,600+ jobs and nearly $280 million invested into the state by the following companies: Amazon, Emerson, Fiocchi, Gerber, La-Z-Boy, Nestlé, Nice-Pak, Revolution and SCA Pharma. These companies and others have discovered that The Natural State has the resources, the talent, and the business climate they need to thrive.

To hear what successful industry leaders have to say about doing business in Arkansas, visit ArkansasEDC.com or scan to watch our video.

AREA DEVELOPMENT | Q2/2021

ShovelArticle2021.indd 69

6/1/21 10:50 AM

16th Annual

& GOLD SILVER SHOVEL a wa rd s

CONNECTICUT Silver Shovel Winner COMPANY Infosys

City/County

N/E

# Jobs

Inv. Amt.

Hartford

1,000

$20.6 million

SCA Pharmaceuticals Windsor E 360 $10 million ASML

Wilton

100

$100 million

Sema4 Stamford N 300 $6 million Amazon

Industry IT/Software Life Sciences/ BioPharma Mecatronics Life Sciences/ BioPharma

Wallingford

500

$53.8 million

Wren Kitchens

Milford

300

$24 million

Cabinets

Amazon

Windsor

1,500

$237 million

E-Commerce

Jescraft Oxford N 100 $17.3 million

Industrial Materials

Putnam Plastics Killingly E 250 $2 million Nuvance Health Systems

Danbury

500

$5 million

E-Commerce

Medical Devices Corporate Offices

ploy more than 270 people. The pandemic created a real run on sanitizing wipes, and that was good news for manufacturer NicePak in Jonesboro, Ar-

(pop. 3.5 million) States with populations 3+ to 5 million

kansas. It announced

SPONSORS: A dvanceCT M etro Hartford Alliance

plans for an expansion worth 300 jobs. Kimberly-Clark, which makes other kinds

LOUISIANA

of sanitary products such as Huggies and

Silver Shovel Winner COMPANY Gron Fuels

City/County

N/E

# Jobs

Inv. Amt.

Industry

West Baton N 1,025 $9.2 billion Rouge

Renewable Fuels

Mitsubishi Chemical

Ascension Parish

125

$1 billion

Chemicals

Amazon

Lafayette Parish

500

$100 million

REG Geismar

Ascension E 60 $825 million Parish

ExxonMobil

East Baton Rouge

School Mint

Lafayette N 178 $500,000 Parish

Service Corp. International

Jefferson Parish

115

$244 million

$500,000

Click Here Digital East Baton E 100 $1.2 million Rouge Parish Westfield Fluid C ontrols E.I. Williams

Lafayette Parish

$5.1 million

Webster N 100 $700,000 Parish

E-Commerce Renewable Fuels Petroleum Refinery IT/Education Headquarters Corporate Offices IT Digital/ Marketing Headquarters Aerospace Industrial Sound Control

Kleenex, said it would invest $140 million to expand in Corinth, Mississippi. Louisiana enjoyed diverse economic development announcements, but its chemical and petroleum sector played a key role. Beyond the aforementioned Grön Fuels, there is a potential billion-dollar Mitsubishi Chemical

(pop. 4.70 million) States with populations 3+ to 5 million

announcement in As-

Manufacturing Project of the Year

cension Parish that

SPONSORS: L ouisiana Economic Development Port of South Louisiana

may be worth 125 jobs — the company has begun feasibility stud-

AREA DEVELOPMENT

ShovelArticle2021.indd 70

for free site information, visit us online at www.areadevelopment.com

6/2/21 3:18 PM

Activation-Ad-Final-5-24-21.indd 1

5/24/21 1:47 PM

KANSAS Gold Shovel Winner COMPANY

City/County

N/E

# Jobs

Inv. Amt.

Industry

Urban Outfitters, Inc. Kansas City N 1,734 $403 million Amazon

Logistics/ Distribution

Kansas City

750

$75 million

E-Commerce

Park City

700

$75 million

E-Commerce

Thermo Fisher Lenexa E 300 $40 million Scientific Co., LLC

Biotechnology/ Pharma

Pretzels, LLC Lawrence N 281 $88 million

Food Processing

PDI, Inc. Edgerton N 226 $175 million

Healthcare Products

Schwan’s Co. Salina E 225 $356 million

Food Processing

Amazon

Shawnee

200

$30 million

E-Commerce

Kubota Salina N 130 $53 million North America Corp./ Great Plains Manufacturing

Construction Equipment

Nor-Am Logistics Dodge City N 50 $44.8 million South LLC

Cold Storage Warehouse

ies for a methyl methacrylate manufacturing complex. An $825 million expansion at REG

(pop. 2.91 million) States with populations under 3 million

SPONSORS: K ansas Department of Commerce Wyandotte Economic Development Council

Geismar in the same area will create 60 jobs, as the company ups its capacity for producing renewable diesel. There also was word of a quarter-

N O N - M A N U FA C T U R I N G

p r o j e c t

o f

t h e

billion investment by ExxonMobil in its

y e a r

Baton Rouge refinery. Over in Texas, Max

Netflix to Create It’s not a stranger thing at all to see the lights and 1,000 Jobs in cameras and stars of Hollywood — in New Mexico. New Mexico Netflix maintains a studio complex in Albuquerque,

Midstream announced

and in November 2020 announced plans to expand there — representing $150 million in capital investment — and pump in a billion dollars in production spending, with 10 new stages, offices, post-production facilities, and related infrastructure. It will create 1,000 production jobs over the next decade, and that’s not including construction jobs.1

Point Comfort.

Netflix announced its purchase of Albuquerque Studios in 2018 and, at the time, pledged a billion dollars in spending over a decade. “I am glad Netflix has chosen to double-down on its commitment to our state,” Gov. Michelle Lujan Grisham announced just two years later. A number of Netflix projects have provided work in New Mexico, including some of the filming for the upcoming “Stranger Things 4” season. For its part, Netflix says it is glad to be near Los Angeles, yet in a separate market with its own base of talent. State and local economic development funding totaling $24 million made it all the more attractive. The company has pledged training programs to further develop the industry in New Mexico. 1

https://apnews.com/article/new-mexico-north-america-albuquerque-7c28e822bcf4170136bede07cda75d67

AREA DEVELOPMENT

ShovelArticle2021.indd 72

a billion-dollar, 474job pipeline project in And Virginia’s job activity was diverse, too, including 350 jobs in self-driving vehicle software development at a TORC Robotics expansion in Montgomery County, and 332 jobs in ship repair and manufacturing at East Coast Repair and Fabrication’s new corporate and industrial campus in Newport News. Shipbuilding is also

for free site information, visit us online at www.areadevelopment.com

5/27/21 11:11 AM

TO THE STARS

ANNOUNCED

Kansas celebrated a record-breaking 2020 but we aren’t done yet. Kansas has the plan, the policies, and the people to make your next project a success. Reach new heights in Kansas. KansasCommerce.gov

16th Annual

& GOLD SILVER SHOVEL a wa rd s

M A N U FA C T U R I N G

p r o j e c t

o f

t h e

y e a r

Grön Fuels Complex Can Actually Reverse Climate Change

The massive fuel production complex planned by Grön Fuels at the Port of Greater Baton Rouge is referred to as “carbon negative and renewable.” On the menu there are green hydrogen, renewable diesel, arctic spec renewable diesel, sustainable aviation fuels, and bio-plastic feedstocks. It is, perhaps, fitting that this past Earth Day featured an announcement of air permit approval for the $9.2 billion project.1

More than 5,000 direct and indirect jobs are expected over a 10-year period. What makes the project carbon-negative is the plan to capture and sequester tens of millions of tons of biogenic carbon dioxide. That means the plans don’t just reduce a negative environmental impact — they actually reverse climate change. Baton Rouge aims to be known as a leader in renewable energy, and the Grön Fuels facility will help it solidify a place on the map. 1

https://www.prnewswire.com/news-releases/gron-fuels-9-2-billion-carbon-negative-renewable-fuel-complexachieves-major-milestone-with-air-permit-approval-301275389.html

expected to create 200 jobs in Gulfport, Mississippi, where Gulf Ship landed a contract to make tugboats.

Tasty Deals People have to eat, pandemic or not, and that helped earn Idaho a Silver Shovel. The state offered a long list of developments in the business of meat and food processing,

IDAHO

led by a 520-job deal involving True West

Silver Shovel Winner COMPANY

City/County

N/E

# Jobs

Inv. Amt.

True West Beef LLC Jerome N 520 $195 million

Beef Processing

Lamb Weston

Potato Processing

Power E 70 $90 million County

GoGo squeeZ Nampa E 53 $32.8 million

Pet Food/ Pharma Headquarters

Western Aircraft Boise E 113 $19 million

Aircraft Maintenance

Production Preston N 93 $1 million Technologies

Fabrication/ Powder Coating

Canyon E 75 $1.7 million County

Food Processing

Scoular Jerome N 12 $20 million

Barley Processing

Metal Quest Post Falls N 25 $3.8 million Unlimited LLC

Fabricated Metals

Frigitek

Pocatello

$53 million

(pop. 1.79 million) States with populations under 3 million

SPONSORS: I daho Commerce City of Eagle Economic Development

AREA DEVELOPMENT

ShovelArticle2021.indd 74

Food Processing

PetlQ Eagle N 171 $22 million

Lactalis

Industry

Cold Storage

Beef in Jerome. The company is a partnership between Agri Beef Co. and a group of cattle ranchers and feeders, and it announced plans to build a 500-head-a-day beef plant. Lamb Weston said it would expand potato processing in Power County, thanks to healthy demand for French fries. Lactalis makes cheese in Nampa, Canyon County, and plans to hire more people to make more

for free site information, visit us online at www.areadevelopment.com

6/2/21 3:19 PM

M A N U FA C T U R I N G

p r o j e c t

o f

t h e

y e a r

CREE Wolfspeed’s Wafers Key to Charging of EVs

North Carolina-based CREE Inc. is building a billion-dollar factory near the New York community of Utica,1 and silicon carbide wafers could start moving off the line in early 2022. This particular chip technology is seen as a key to reducing charging time and increasing the range of electric vehicles, and it’s also helpful in everything from 5G infrastructure to solar inverters. As production continues to build over the next several years at the Mohawk Valley plant, the company expects to employ more than 600 people, about half that total as early as 2023. Despite the pandemic, construction moved ahead nicely in 2020 and early 2021, and work began on a pilot production line at SUNY Polytechnic Institute in Albany. The project is getting a boost of as much as half a billion dollars in the form of a state grant if project goals are met. 1

https://www.bizjournals.com/albany/news/2020/11/09/more-new-jobs-posted-for-cree-in-utica-albany.html

A NEW MEXICO ORIGINAL

2021 PROJECT OF THE YEAR 100% Match

2021

In a world... where state, regional and local economic development teams work in unison to make big things happen: Blockbuster deals are attracted to greater Albuquerque. Contact us for help in locating the NEXT multi-billion dollar project in our region.

AREA DEVELOPMENT

ShovelArticle2021.indd 76

for free site information, visit us online at www.areadevelopment.com

5/27/21 11:13 AM

GOLD &SILVER SHOVEL a wa rd s

cheese, and GoGo squeeZ announced new

Indiana snack-food maker Pretzels LLC

jobs in Nampa. And Barley processor Scou-

pledged 281 jobs in Lawrence, Kansas,

lar is investing $20 million in operations in

while Schwan’s said it would expand its piz-

Jerome that will make a high-protein barley

za plant in Salina, Kansas, and add 225 jobs

concentrate for pet food and aquaculture

to what the company believes is the largest

feed, as well as a liquid feed supplement

pizza production facility in the world.

for cattle.

People have to drink, as well. The boom

In Indiana, Gruma Corp. announced

in energy drinks drove a 600-job new facility

plans to make Mission tortillas in Plain-

from sports beverage maker Bang Energy in

field, with 544 hires planned. Hershey an-

Douglasville, Georgia, plus a 65-job Red Bull

nounced a sweet expansion worth 110 jobs

expansion in Glendale, Arizona. Mark Antho-

in Augusta County, Virginia, where Reese’s

ny Brewing, meanwhile, will hire 300 people

and other favorites come off the line, and

to make White Claw Hard Seltzer, Mike’s

the company is planning its Hershey Peanut

Hard Lemonade, and other tasty adult bever-

Roasting Center of Excellence. Longtime

ages in Richland County, South Carolina.

Netflix recently committed to spending an additional $1 billion in New Mexico. It’s time to think New Mexico for your next business move.

Companies like Netflix, Intel, Facebook, and Amazon are all investing in New Mexico, let us show you why. The New Mexico Partnership is the state designated organization to help businesses locate in New Mexico. (505) 247-8500 | info@nmpartnership.com www.nmpartnership.com AREA DEVELOPMENT | Q2/2021

ShovelArticle2021.indd 77

5/27/21 11:13 AM

16th Annual

& GOLD SILVER SHOVEL a wa rd s

Our pets also have to eat, and they’re

said it would expand its Tidy Cat factory in

eating better than ever these days. That

Bloomfield, Missouri.

helped drive the 427-job, $265 million an-

Financial Services and Other Lucrative News

nouncement by refrigerated dog and cat food maker Freshpet for a new manufacturing facility in Ennis, Texas. A PetIQ head-

Florida continued to build its financial

quarters project in Eagle, Idaho, will create

services sector in 2020 with a couple of

171 jobs. Pet nutrition was also behind

significant announcements. A Citigroup an-

multiple announcements from Nestlé Pu-

nouncement in Tampa is worth more than

rina PetCare, including a $450 million fac-

$65 million and 732 new jobs. And a Pen-

tory that will create 300 jobs in Eden, North

nyMac Loan Services expansion in Hillsbor-

Carolina; a $550 million expansion that

ough will be responsible for 400 new jobs.

will create 130 jobs making Fancy Feast in

Georgia’s financial tech sector landed a

Hartwell, Georgia; and a new $550 million

709-job announcement from Deluxe Corp.

factory in Williamsburg Township, Ohio,

in Sandy Springs. The location will help

that will create 300 jobs making Purina dry

businesses process transactions. In Ohio,

dog and cat food. And for when those cats

Union Home Mortgage will expand its cor-

are done eating…Nestlé Purina PetCare

porate headquarters in Strongsville, where 450 new jobs will be created. Utah’s Health

MISSISSIPPI

Equity, which man-

Silver Shovel Winner COMPANY

City/County

N/E

# Jobs

Inv. Amt.

Associated Wholesale Hernando N 79 $300 million Grocers Amazon

Madison County

1,000

Food Distribution E-Commerce

Calgon Carbon Bay St. Louis E 38 $185 million

Activated Carbon Products

Mission Forest Corinth N 130 $160 million Products

Agribusiness/ Lumber

Kimberly-Clark Corinth E 33 $140 million

Nonwoven Components

accounts, announced expansion plans for Draper worth 550 jobs. Virginia continues to make a name for itself in customer support, with a new

Military Vehicles

SimpliSafe operation

IG Design Group Marshall E 300 $57.4 million County

Paper Products Distribution

planning 572 hires at

Material Bank Olive Branch N 300 $14.5 million

Architecture/ Design Products Distribution

Gulf Ship

Gulfport

200

$6.7 million

Loss Prevention

Natchez

200

$3 million

(pop. 2.98 million) States with populations under 3 million

SPONSORS: Mississipi Development Authority; Mississippi Power Authority

AREA DEVELOPMENT

ShovelArticle2021.indd 78

Industry

$200 million

Navistar Defense West Point E 500 $8 million

ages health savings

Shipbuilding Headquarters

a Henrico County call center, and a T-Mobile expansion and relocation adding 500 more customer support jobs not far away.

for free site information, visit us online at www.areadevelopment.com

6/2/21 3:20 PM

Thrive on the cutting edge When considering a new industrial or commercial site for your next venture, readiness is critical. With strong community partnerships, seasoned industry insight and a commitment to driving continued economic growth in Southeast Mississippi, our team is poised to work with you to strategically optimize your time to market.

mississippipowerED.com

16th Annual

& GOLD SILVER SHOVEL sponsors

ALABAMA

Alabama Department of Commerce The Alabama Department of Commerce is the state’s lead economic development agency. In addition to business development activities, Commerce promotes exporting and international opportunities for Alabama companies, assists small businesses, and positions the state for film productions. Commerce is home to the state’s primary workforce development program, AIDT. Greg Canfield, Secretary Alabama Department of Commerce 401 Adams Ave., P.O. Box 304106 Montgomery, AL 36130-4106 800-248-0033 contact@madeinalabama.com madeinalabama.com AIDT AIDT is a state agency established to build a healthy state economy by recruiting and training a skilled workforce to attract new industries to the state and to expand existing industries. AIDT provides a full range of customized technical training programs that are offered at no cost to employers and to the trainees. Ed Castile, Deputy Secretary of Commerce, Director AIDT One Technology Court Montgomery, AL 36116 334-280-4431 dciambor@aidt.edu www.aidt.edu Baldwin County Economic Development Alliance Alabama’s fastest-growing county and the 11th fastest-growing metro area in the U.S. is also home to the 3,000-acre South Alabama Mega Site, the Southeast’s premier industrial mega site. With $7 million in site work complete, the South Alabama Mega Site truly redefines “shovel ready.” Lee Lawson, President & CEO Baldwin County EDA 1100 Fairhope Ave., Fairhope, AL 36532 251-970-4081 llawson@baldwineda.com https://baldwineda.com https://southalabamamegasite.com

ARIZONA

Arizona Commerce Authority The Arizona Commerce Authority (ACA) is the state’s leading economic development organization with a streamlined mission to grow and strengthen Arizona’s economy. The ACA uses a three-pronged approach to advance

AREA DEVELOPMENT

ShovelArticle2021.indd 80

the overall economy: attract, expand, create — attract out-of-state companies to establish operations in Arizona; work with existing companies to expand their business in Arizona and beyond; and help entrepreneurs create new Arizona businesses in targeted industries. Sandra Watson, President & CEO Arizona Commerce Authority 100 N. 7th Ave., Suite 400 Phoenix, AZ 85007 602-845-1200 sandraw@azcommerce.com www.AZcommerce.com Salt River Project SRP is a community-based, not-for-profit public power utility and the largest provider of electricity in the greater Phoenix metropolitan area, serving more than one million customers. SRP is also the metropolitan area’s largest supplier of water, delivering about 800,000 acre-feet annually to municipal, urban, and agricultural water users. Karla Moran, Sr. Project Manager, Econ. Dev. Salt River Project P.O. Box 52025, Phoenix, AZ 85072-2025 602-236-2396 • Mobile: 480-748-9291 Karla.Moran@srpnet.com PowerToGrowPHX.com

ARKANSAS

Arkansas EDC The Arkansas Economic Development Commission creates economic opportunity by attracting higher-paying jobs, expanding and diversifying local economies, increasing incomes and investment, and generating growth throughout Arkansas. Arkansas is a pro-business environment operating leaner, faster, and more focused through a streamlined state government that acts on corporate interests quickly and decisively. Clark Cogbill, Director of Marketing Arkansas EDC 1 Commerce Way, Suite 601 Little Rock, AR 72202 501-682-5996 ccogbill@arkansasedc.com www.ArkansasEDC.com

CONNECTICUT

AdvanceCT AdvanceCT is a private nonprofit corporation that drives job creation and new capital investment in Connecticut through high-impact economic development including business attraction, retention, and expansion. Our team advocates for and promotes Connecticut as a location for companies to compete and grow.

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David Campbell, VP of Business Development AdvanceCT 805 Brook St., Building 4 Rocky Hill, CT 06067 202-906-9211 dcampbell@advancect.org www.advancect.org MetroHartford Alliance The MetroHartford Alliance is an investorbased economic development partnership focused on business development and growth, retaining and attracting jobs and talent, ensuring a strong urban core, and promoting the Hartford Region. We tell the Hartford story globally as an exceptional place to build a business, industry, career, and future. Gene Goddard, Chief Business Investment Officer MetroHartford Alliance 31 Pratt St., 5th Floor, Hartford, CT 06103 860-728-2281 Cell: 860-839-1985 ggoddard@metrohartford.com www.metrohartford.com

FLORIDA

Enterprise Florida, Inc. From a talented workforce to a strategic geographic location, Florida has the resources businesses need to grow. Freedom from high taxes and prohibitive regulations make Florida the Tax Foundation’s #1 tax climate in the Southeast and a top state for business. Learn how Florida can help your business thrive.

Paul Mitchell Vice President, Business Development Enterprise Florida, Inc. 800 N. Magnolia Ave., Suite 1100 Orlando, FL 32803 407-607-4104 pmitchell@enterpriseflorida.com www.enterpriseflorida.com

GEORGIA

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 HartsfieldJackson 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, Georgia 30308 404-962-4000 Georgia.org Georgia Ports Authority Georgia’s ports provide greater scheduling flexibility and market reach with direct links to I-95 and I-16, on-terminal rail, and 34 weekly container ship calls. The Savannah market features a deep inventory of industrial sites and parks, while the state of Georgia offers a business-friendly tax structure and targeted workforce training.

DISCOVER MARCY NANOCENTER’S 434-ACRE HIGH-TECH CAMPUS Located at SUNY Polytechnic Institute in Upstate New York, Marcy Nano is a fully permitted, shovel-ready greenfield and now home to Cree | Wolfspeed - the world’s largest silicon carbide device manufacturing facility! •

Be part of a growing semiconductor and advanced electronics ecosystem

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Join global leaders in R&D and manufacturing

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Leverage the our world-class workforce and competitive incentives

Learn more at www.marcynanocenter.com or Nick Bruno Mohawk Valley EDGE nbruno@mvedge.org | 315.338.0393 www.marcynanocenter.com

@Marcynanocenter

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Stacy Watson, Director of Economic & Industrial Development Georgia Ports Authority P.O. Box 2406, Savanah, GA 31402 912-964-3879 Fax: 912-964-3869 swatson@gaports.com www.gaports.com Elevate Douglas Economic Partnership Elevate Douglas Economic Partnership is a public-private economic development partnership. We work to build the future of Douglas County, Georgia, through economic sustainability by focusing on building business success through the recruitment of target industry sectors, cultivating a talent pipeline, and growing entrepreneurs and small businesses. Chris Pumphrey, President Elevate Douglas Economic Partnership 8512 Bowden St., Douglasville, GA 30134 678-838-3665 Chris@elevatedouglas.com www.ElevateDouglas.com

IDAHO

Idaho Commerce Looking for a better location to grow your business? Idaho boasts one of the nation’s strongest state economies, is one of the nation’s least regulated states, and is making significant investments in transportation and broadband infrastructure. Idaho is the perfect place to grow. Hear from businesses who have at commerce.idaho.gov/silvershovel Idaho Department of Commerce 700 W State St. Boise, ID 83702 208-334-2470 info@commerce.idaho.gov www.Commerce.idaho.gov City of Eagle Economic Development Eagle offers an unparalleled quality of life, a highly educated workforce, easy access to transportation networks, executive housing, and a collaborative business environment. Known as the premier community in the Boise Metro, Eagle is a top choice for headquarters offices, technology companies, and many other professional and business services. Robin Collins, Economic Development Director City of Eagle Economic Development P.O. Box 1520, Eagle, ID 83616 208-468-5455 economicdevelopment@cityofeagle.org www.cityofeagle.org

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INDIANA

Indiana Economic Development Corporation The Indiana Economic Development Corporation (IEDC) leads the state of Indiana’s economic development efforts, helping businesses launch, grow, and locate in the state. The IEDC manages many initiatives, including performance-based tax credits, workforce training grants, innovation and entrepreneurship resources, public infrastructure assistance, and talent attraction and retention efforts. Indiana Economic Development Corporation 1 North Capitol Ave., Ste. 700 Indianapolis, Indiana 46204 800-463-8081 AStateThatWorks.com

KANSAS

Kansas Department of Commerce As the state’s lead economic development agency, the Kansas Department of Commerce empowers individuals, businesses, and communities to prosper in Kansas. Our strong relationships with corporations, site-location consultants, and stakeholders in Kansas and beyond help existing businesses in the state grow and create an innovative, competitive landscape for new businesses. Bill Murphy, Deputy Secretary Kansas Department of Commerce 1000 SW Jackson St., Suite 100 Topeka, KS 66612 785-296-3481 commercenews@ks.gov www.kansascommerce.gov Wyandotte Economic Development Council Council’s (WYEDC) mission is to promote and strengthen Wyandotte County’s economy through innovative approaches to programs, partnerships, incentives, and leadership in industrial, residential, office, and retail markets. Greg Kindle, President WYEDC 727 Minnesota Ave., Kansas City, KS 66101 913-371-3198 or 913-748-2272 gkindle@wyedc.org www.wyedc.org

LOUISIANA

Louisiana Economic Development LED is responsible for strengthening Louisiana’s business environment and creating a more vibrant economy. In 2020, LED attracted 58 major economic development projects representing over 11,600 new jobs, 8,600 retained jobs, and $12.7 billion in new capital investment. LED assisted more than 17,500 Louisiana small businesses and entrepreneurs in 2020.

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Louisiana Economic Development 617 North 3rd St., Baton Rouge, LA 70802 225-342-3000 Toll Free: 800-450-8115 OpportunityLouisiana.com Port of South Louisiana The Port of South Louisiana is located between New Orleans and Baton Rouge, sprawling along 54 miles of the lower Mississippi River. As one of the largest tonnage ports in the Western Hemisphere, the Port of South Louisiana is not only the highest grain exporter in the United States, it is the second-most energy transfer port, and its Foreign Trade Zone (#124) is ranked #1 in the nation. Julia Fisher-Perrier, Dir. of Business Development P.O. Box 909, 171 Belle Terre Blvd. LaPlace, LA 70069 jfisherperrier@portsl.com www.portsl.com

MICHIGAN

Michigan Economic Development Corporation The Michigan Economic Development Corporation markets Michigan as the place to do business. The MEDC assists businesses in their growth strategies, fosters the development of vibrant communities, and

enhances Michigan’s image as a business and travel destination. MEDC business assistance programs connect companies with resources, partners, and access to capital. Susan Proctor, Strategic Initiatives Director Michigan Economic Development Corporation 300 N. Washington Square Lansing, MI 48913 517-719-0393 proctors1@michigan.org www.michiganbusiness.org

MISSISSIPPI

Mississippi Development Authority The Mississippi Development Authority is the state’s lead economic and community development agency, with approximately 300 employees providing services to businesses and communities throughout the state. MDA works to recruit new business to Mississippi and retain and expand existing industry and business. The agency also promotes tourism throughout the state. John Rounsaville, Executive Director Mississippi Development Authority 501 N. West St., Jackson, MS, 39201 P.O. Box 849, Jackson, MS, 39205 601-359-9388 or 1-800-360-3323 jrounsaville@mississippi.org mississippi.org

Business. Done Right.

An unparalleled quality of life, a highly educated workforce, accessible transportation networks, executive housing, and a collaborative business environment. Just a few reasons Eagle is a top choice in the Boise metro area for headquarters offices and rising tech, professional and service industry.

www.cityofeagle.org | 208-489-8755 AREA DEVELOPMENT | Q2/2021

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Mississippi Power Mississippi Power is a one-stop resource for your project needs. We have the market experience, established contacts, knowledge of available sites, and can assist with making the right connections to make the process seamless. Mississippi Power Economic Development 2992 W. Beach Blvd., Gulfport, MS 39501 1-800-528-5196 mpcecodev@southernco.com mississippipowerED.com

MISSOURI

Missouri One Start Missouri One Start provides a tailored workforce strategy to address your unique business needs. At no cost to eligible businesses, the team at Missouri One Start will customize services ranging from preemployment screening and recruitment to designing job-specific training both during and after the onboarding process. Kristie Davis, Director Missouri One Start P.O. Box 478, 301 W. High St. Jefferson City, MO 65102 573-526-9239 MissouriOneStart.com

NEW MEXICO

Albuquerque Economic Development AED is a private, nonprofit organization whose mission is to recruit new employers and industry and help local companies grow to generate quality job opportunities for the Albuquerque metro area. Our team of economic development professionals is organized to help you obtain the facts you need to thoroughly evaluate the Albuquerque metro area. Danielle Casey, President & CEO Albuquerque Economic Development 201 Third St. NW #1900 Albuquerque, NM 87102 505-705-3777 dcasey@abq.org www.abq.org New Mexico Partnership The New Mexico Partnership is the statedesignated organization here to help expanding business achieve their full potential in New Mexico. The New Mexico Partnership provides all of its services confidentially and free of charge. Let us show you what New Mexico has to offer. Contact us today.

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New Mexico Partnership 1720 Louisiana Blvd. NE, Suite 312 Albuquerque, NM 87110 505-247-8500 info@nmpartnership.com www.NMPartnership.com

NEW YORK

Mohawk Valley EDGE Mohawk Valley EDGE provides a coordinated economic development program that can assist your business to locate, grow, and prosper in Oneida County, in the center of New York State. With over $2 billion of projects under way, Upstate New York and the Utica Rome MSA are buzzing and your opportunity to be a part of the revitalization is now. Nick Bruno Mohawk Valley EDGE 584 Phoenix Drive Rome, NY 13441 nbruno@mvedge.org www.mvedge.org

NORTH CAROLINA

Economic Development Partnership of North Carolina North. South. East. West. No matter where you look, North Carolina is the home of endless opportunity. From the mountains to the coast, everything that makes life fulfilling can be found right here, right now. Ranked #1 for business three years running. Economic Development Partnership of North Carolina 150 Fayetteville St. #1200 Raleigh, NC 27601 919-447-7777 EDPNC.com Greenville Eastern North Carolina (ENC) Alliance The Greenville Eastern North Carolina (ENC) Alliance is a public-private partnership that provides a comprehensive and collaborative approach to business recruitment, retention, and expansion in eastern North Carolina. The organization focuses on supporting existing industries while maximizing opportunities for new investment, job creation, and economic growth. Greenville Eastern North Carolina (ENC) Alliance 209 E. Fifth St., Greenville, NC 27858 hello@encalliance.com www.encalliance.com

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Greenville Utilities Commission GUC provides electric, water, sewer, and natural gas services to the City of Greenville and 75 percent of Pitt County. GUC offers a unique service providing a single point of contact for commercial and industrial customers for all utilities and has excess capacity to serve future growth on shovelready sites. Kathy Howard, Business Development Specialist Greenville Utilities Commission P.O. Box 1847 Greenville, North Carolina 27835 252-551-1475 howardkp@guc.com www.guc.com Rockingham County Center for Economic Development, Small Business & Tourism Rockingham County is experiencing exciting growth. With two interstates flanking both sides of the county, a regional workforce capable of meeting all employment needs, and a favorable cost-of-doing-business environment, it is no wonder companies like Pella, Ontex, Nestle Purina, and Farmina have recently chosen to locate new facilities here. Tara Martin, Marketing Manager Rockingham County Center for Economic Development, Small Business & Tourism 425 NC Hwy 65 Reidsville, NC 27320 336-342-8138 tmartin@co.rockingham.nc.us www.gorockinghamcountync.com

OHIO

JobsOhio JobsOhio is the state’s economic development organization charged with driving job creation and capital investment in Ohio through business attraction, retention, and expansion efforts. JobsOhio collaborates with public and private partners across Ohio to address the needs of growing businesses and support them with the resources necessary to succeed. Andrew Deye, VP, Strategy JobsOhio 41 S High St. #1500, Columbus, OH 43215 1-855-874-2530 JobsOhio.com

TENNESSEE

Tennessee Department of Economic and Community Development It’s no accident that some of the biggest and most respected brands in the world have chosen to call Tennessee home. We provide companies a central location with unparalleled infrastructure, a highly qualified workforce backed by game-changing education reform, a low tax burden, and a collaborative environment with a business-friendly administration. Allen Borden, Deputy Commissioner, Business, Community and Rural Development Tennessee Department of Economic and Community Development Tennessee Tower, 27th Floor 312 Rosa L. Parks Ave. Nashville, TN 37243 allen.borden@tn.gov https://TNECD.com

UTAH

Northern Utah Economic Alliance (NUEA) Northern Utah Economic Alliance (NUEA) is a regional economic development venture between Davis and Weber counties, the two most populated and economically diverse counties in northern Utah. NUEA’s mission is to promote high-quality job creation and increased capital investment in Northern Utah. Chris Roybal, President Northern Utah Economic Alliance (NUEA) 262 N University Ave., Farmington, UT 84025 croybal@edcutah.org www.NUEA.org

VIRGINIA

Virginia Economic Development Partnership Virginia continues to raise the bar when it comes to talent development. Programs such as the Virginia Talent Accelerator Program and the Tech Talent Investment Program make sure Virginians are prepared for the jobs of today and the future. Virginia Economic Development Partnership 901 East Cary St., Richmond, VA 23219 804-545-5600 info@vedp.org www.vedp.org

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CONSTRUCTION/PROJECT PLANNING

Life Sciences Fueling Construction Demand In the wake of the pandemic, life sciences companies are rapidly expanding, spurring a demand for new facilities to house their operations. By Gul Dusi, Project Director, Linesight

n a time of widespread economic upheaval, the life sciences industry is one of the few whose prospects have changed for the better. Called upon to rapidly develop and distribute an all-important COVID-19 vaccine without sacrificing the research and production of existing drugs, the biotech industry is expanding at breakneck speed. Currently, around 13.9 million square feet of life sciences1 research and manufacturing space is under construction in key markets. In the United States, lab space vacancies have dropped to 7.1 percent,2 while commercial properties are being converted into R&D facilities on a massive scale. This biotech boom is providing a vital lifeline to the construction industry. Due to the impact COVID-19 has had on various industries, plummeting contracting demand has led to the loss of roughly $60.9 billion in GDP, as construction jobs dropped to 6.5 million across the U.S.3 By embracing the current demand for life sciences facilities, developers can not only thrive in difficult times, but also play a role in speeding the world’s recovery from COVID-19. Contractors are, therefore, rushing to secure lucrative projects, building research and manufacturing facilities in the life sciences sector. But with speed-to-market being a critical factor, biotech executives must choose construction partners who can mitigate shortages in labor

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The life sciences industry continues to grow with increasing demand for research and manufacturing facilities.

and materials while guaranteeing timely government authorization to improve delivery timelines and get their clients working in a new space as quickly as possible.

The Challenges of Supplying Demand Prior to the pandemic, medical advances combined with an aging and expanding population were projected to grow the life sciences sector. With the global prescription drug market expected to surpass $1 trillion by 2022,4 there has been an increased demand for lab space and the development of life sciences hubs. Repurposing commercial spaces to meet lab requirements continues to be a growing trend, as

is the need for multi-product facilities5 to produce more personalized medicines that are generated in smaller quantities. In order to meet these requirements, life sciences companies must choose developers that understand current design specifications for specialized spaces and can deliver projects quickly. Having the ability to mitigate several issues causing significant project delays across the industry is paramount for construction companies. Supply chains have been upended since the early days of the pandemic in China, an essential manufacturing hub for the construction industry. Companies have had to stockpile material in an effort to continue projects without interruption.

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The continued shortage of skilled laborers has been another ongoing challenge for the construction industry. Despite major layoffs last year due to pandemic-related site closures, specialized and skilled construction workers are still difficult to find and are becoming more expensive to employ. Closed borders and pandemic restrictions further exacerbate this issue. With speed a main focus for biotech firms looking to stay competitive, construction companies must address these supply and labor shortages to deliver the specialized facilities their life sciences clients demand.

Select for Flexibility When choosing a contractor to build their new facilities, life sciences companies should make agility and flexibility their main criteria. Only the most adaptable companies with advanced problem-solving skills and existing established relationships with strategic vendors and subcontractors will be able to account for shortages in skilled labor and slowdowns in materials supply lines. Construction companies must be willing to embrace new ideas, or they simply will not be able to deliver usable spaces in time for their clients to reap the rewards of increased demand. Design and construction companies that engage in strong pre-planning and demonstrate the foresight to scope down their projects will be highly desirable to life sciences firms. Planning an efficient, robust design utilizing minimal materials and personnel means decreasing the chance a project will face shortages. Such contractors react to the needs of their clients and will even choose to retrofit the clients’ existing spaces rather than build facilities from scratch — despite the larger payout of building new structures — if that means the client can move in and begin work sooner. Cost, schedule (project controls), and project managers can increase on-site efficiency with real-time data reporting, efficient scheduling, and staggering tradesmen, further countering skilled labor shortages. Managers can maximize efficiency, getting the most out of workers and materials by proper planning, minimizing rework, managing material deliveries, and managing owners’ responses to work that may be impacted on the field. Continuous on-site training and working with the same team across all projects can also help secure employee loyalty and reduce training times. Strategic partnerships and commitments from owners at the early stages of project inception will allow them to prioritize material selection and delivery, as well as timely decision-making for the right equipment. Modular construction practices can also minimize the required timelines per project. For example, by embracing modular and pre-manufactured material methods, key components, main utility runs, gowning rooms, and/or entire cleanroom of a facility can be built in a controlled factory setting and then assembled on-site by skilled workers in a shorter amount of time. Assembly of these systems can take place in parallel with the

main buildout to save time with a “fit to use” approach. These adaptable practices create synergy that helps solve both the labor and materials shortages, as modular and off-site construction techniques also support physical distancing requirements by limiting the number of people needed on-site.

Speed of Certification Government funding has played an influential role in accelerating drug research, with COVID-19 vaccines and other new therapies receiving a boost from government spending to combat a shortage of life-saving drugs. National and state governments are offering funding incentives and regulatory bodies are working with pharmaceutical companies to review and approve new treatments as efficiently as possible. A risk-based qualification approach to “qualification” and “validation” is a necessity in speed-to-market conditions as well. Validation requirements and protocols should be embedded into the design and construction drawings and processes. If validation agents can start working on projects from the beginning, by the end of construction, qualification can be achieved to minimize time loss for operational readiness. In addition to this, proactive construction companies should be able to phase the project delivery per prioritization for the client to start with “operational readiness.” To help their clients achieve a competitive production speed, contractors must work with regulatory bodies from the pre-construction phase onward, immediately looping in safety and standards organizations.

Building Toward a Stronger Future Continued growth for the life sciences construction market is expected as solutions are identified to mitigate supply chain and workforce issues. New and existing drugs are more in-demand than ever, and as the government pushes the development and manufacturing of different therapies, more U.S. companies will emerge. This increased demand is helping the construction industry remain strong, with non-residential construction starts rising 16 percent in August of last year.6 This is when flexible construction practices are absolutely critical. Understanding the process for manufacturing, testing, certifying, and selling treatments can offer flexibility to developers, allowing them to adjust their techniques to meet client goals. And by establishing a strong foundation of project controls that incorporate building and user requirements, it becomes a matter of pivoting strategically to meet unexpected circumstances, rather than responding reactively to new challenges. n 1

https://www.cnbc.com/2020/10/09/covid-19-drives-historic-demand-for-life-sciencesreal-estate-.html https://www.cpexecutive.com/post/behind-the-projected-growth-of-life-sciences-in-2020/ 3 https://www2.deloitte.com/us/en/pages/energy-and-resources/articles/engineering-andconstruction-industry-trends.html 4 https://www.cpexecutive.com/post/life-sciences-bolstered-by-covid-19-vaccine-race/ 5 https://www2.deloitte.com/us/en/pages/life-sciences-and-health-care/articles/ us-and-global-life-sciences-industry-trends-outlook.html 6 https://www.constructiondive.com/news/construction-scores-a-hat-trick-starts-jobs-backlog-all-rise/585475/ 2

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CONSTRUCTION/DESIGN

A Turnkey Approach to Manufacturing Location Decisions Taking a project from site selection through process design and construction to commissioning with a turnkey approach will help a manufacturer ensure its long-term operational success. By Courtney Dunbar, Site Selection & Economic Development Leader, Burns & McDonnell

look at manufacturing site selection criteria illustrates why.

Factors That Impact Site Selection The goal of any site search is to identify locations that support a manufacturer’s long-term operational success. The more a site selection team knows about the company’s products, production methods, and infrastructure requirements, the better. A site selection team must also have a detailed understanding of the owner’s site selection criteria

courtesy Burns & McDonnell

hen scouting locations for a retailer, an experienced real estate team knows precisely what to look for: sites that have high visibility, easy accessibility, and close proximity to a population base and competing stores. By comparing options that meet this small handful of criteria, the final selection can be relatively simple. Compare that to locating a new manufacturing facility. As many as 70 or more different variables can influence site selection — from infrastructure, logistical, and incentive considerations to permitting requirements, staffing needs, and community acceptance concerns. Site selection models for these facilities, therefore, can be notoriously complex. The strengths or weaknesses of each alternative can potentially impact facility design and a host of other variables, making the process of comparing and ranking alternatives even more challenging. Apples-to-apples comparisons of sites are rare. Some site selectors are better equipped to conduct searches that involve complex infrastructure and permitting requirements than others. A closer

Engineering, procurement, and construction services were needed for this facility’s new packaging department and process line.

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and their relative importance in the decision-making process. These criteria typically fall under these broad categories: •L ogistics: Site selectors need to know the sources of the manufacturing facility’s raw materials, the final destination of its finished products, and the transportation resources available so that there is timely and efficient movement of both. • I nfrastructure: This includes electric, water, and wastewater capabilities; condition, size, and proximity of local roads and highways; and rail and port access. Depending on a community’s size, a new manufacturing center can place significant demands on existing infrastructure. Knowing what, if any, infrastructure upgrades or process changes are needed for a community to accept a manufacturer’s additional load is critical, as is understanding the community’s interest in and commitment to making any needed accommodations. •P ermitting: Some site locators are skilled at identifying sites suitable for manufacturing. The question is, are these sites suitable for the project under consideration, which may require system redundancies, special air permits, or capabilities for handling particular effluents? It is not only a question of how quickly permits can be obtained, but if they are even obtainable. To answer these questions, site selectors must be familiar with local and state permitting requirements for emissions, effluent, and other environmental considerations — and how they mesh with the manufacturer’s operations. •E ntitlements: Permitting questions should be addressed early in the site selection process for many reasons. Perhaps the most important is their bearing on entitlements — the legal right to develop a property for a certain use or type of building — that government bodies must grant before a project can move forward. Entitlements can be a major factor in determining the use, viability, and value of a property under consideration and should be part of the upfront discussion with local, state, and federal officials who have jurisdiction over a site. •P ublic opinion: Manufacturers don’t want to wait until a site is selected to find out the host community’s position on their project. Projects that create demand for housing, infrastructure, schools, or immigrant labor can produce widescale opposition in some communities — while being welcomed with open arms in others.

ome types of facilities are more desirable than S others. A data center, for example, may receive a warmer civic reception than a slaughterhouse and meatpacking plant. However, it can work in the inverse, depending upon the community’s desires. A solid understanding of project acceptance is critical within the site selection process. he site selector must be upfront about planned opT erations when working with local communities. Public opinion can sometimes be swayed when stakeholders understand a project’s full impact on their community, but it is often an uphill battle. Manufacturers generally prefer to eliminate sites in uncooperative communities early and focus on those in places that are more amenable. •W orkforce: Site selectors must understand the manufacturer’s workforce needs and a prospective community’s ability to meet them. Not every location has access to the people and training needed to deliver necessary staffing, nor interest in recruiting new workers who meet a manufacturer’s requirements. This information is valuable because it informs engineers as to whether to go manual or to automate portions of the operation to fill in gaps in skills and training. Further, as the manufacturing workforce is often comprised of laborers with specific skills and abilities, it is valuable to align an accurate assumption of workforce demands as determined by both company leadership and process design professionals early in the site selection process. •L ocal tax environment: Taxes can have major implications on a plant’s economic feasibility and long-term viability. Understanding local tax rates and histories can shed important light on a potential site. • Incentives: While economic incentives can play an important role in site negotiations, they should not be treated as deal-makers. Most incentives offer short-term benefits — often 10 years or less — that become less valuable when viewed through the lens of a manufacturing plant’s 50-plus year design life. Because their value is short-term, in other words, most incentives do not guarantee a facility’s long-term operational success. I n fact, the incentives offered are often divorced from an owner’s actual needs and may not be applicable after considering the company’s tax liability structure. The best incentives are those that fill the gaps any given site has in fully meeting operational requirements. They should deliver true value to the owner. AREA DEVELOPMENT | Q2 2021

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Site Selection Team Choice Matters

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confirm the accuracy of this information. However, a turnkey firm — one DEPENDING ON with the capability to take a project Given the complex interrelationA COMMUNITY’S from site selection through process ships between site selection varidesign and construction to commisables, the team an owner chooses to SIZE, A NEW sioning — will go a step further. Not lead its site selection program matMANUFACTURING only will a turnkey firm have the abilters. There is no shortage of options CENTER CAN ity to work entirely in-house to verify to choose from, each with its own that the infrastructure and features advantages and disadvantages. PLACE SIGNIFICANT exist, but it will also confirm caSome owners look first to their DEMANDS ON pacities and redundancies, rail-serve in-house engineering and strategic EXISTING capabilities, and dozens of other deplanning staffs, both of which can tails. All this data will be loaded into provide helpful insights on where and INFRASTRUCTURE. a site selection model created specifihow the manufacturer can grow its cally for this particular site search. business. Many accounting and busiA turnkey firm, in other words, ness consulting firms also tend to can model a site and assess how well offer site selection capabilities. They, it meets the owner’s needs. It can too, can be helpful in identifying the also determine if a site lives up to a geographic regions where a manudeveloper’s characterization of it. If facturer should focus its growth, as discrepancies are discovered, the firm can pursue conwell as the benefits and liabilities associated with locatcessions or drop the site from consideration. ing within specific states and regions. Once a specific In fact, the intricate site selection models created by region is identified, some owners turn to commercial turnkey firms work almost as efficiently as the relatively real estate firms with expertise in searching real estate simple models used for pharmacy and supermarket databases and identifying potential sites and incentives site selection. With the help of sophisticated analytics, programs. a turnkey firm can quickly winnow a list of 30 potential Each of these groups has specialty knowledge that manufacturing sites down to three. Importantly, these can prove beneficial to a manufacturer. But their collecmodels put turnkey firms in an ideal position to know tive understanding of a facility’s operational needs and what selection criteria a given site is missing and what its 70-plus site selection criteria is, more often than not, incentives are needed to make a property a stronger incomplete. Depending on their area of expertise, each candidate. might weigh the criteria guiding the selection differently Let’s say that due diligence efforts find that the road— or make recommendations using partial or inaccurate ways entering a proposed 300-acre site lack turn lanes information. and other infrastructure critical to the plant’s operation. There is arguably one group that understands both This information can be invaluable when negotiating the big-picture needs and fine-print details on any new incentives. A turnkey firm can often leverage these findmanufacturing facility, i.e., the team responsible for the ings to negotiate an incentive that is meaningful to the planning, design, and construction of the plant itself. owner: additional infrastructure investment. This group, capable of taking a project from initial site Likewise, an incentive program that supports an selection criteria through to project commissioning, unelectrical capacity increase might be very attractive to derstands the specific demands a new plant places on an owner when a proposed site cannot accommodate a local infrastructure. It can also describe a manufacturing plant’s electrical load. Such an incentive program, howoperation’s logistical demands, permitting challenges, ever, can only be proposed if the site selector has the and staffing needs with pinpoint accuracy. foreknowledge needed to recognize and propose it early in the site search. Advantages of a Turnkey Approach The bottom line: Turnkey, full-service engineering, By expanding the design and construction team’s role design, and construction firms approach site selection to include site selection in a turnkey approach, an owner from a unique vantage point. These firms understand also gains an extra layer of due diligence on potential both the demands a new manufacturing plant places sites. on a site and the obstacles that can impede its design, When economic development groups promote sites, construction, and efficient operation. That puts turnkey they often provide detailed maps that include informafirms in the right position to select sites that are welltion on electric, sewer, and water infrastructure; environsuited to a manufacturer’s operation and supportive of mental considerations; and other site features. All site its long-term success. n selection firms are expected to perform due diligence to

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INDUSTRIAL/DISTRIBUTION

Latest Trends in the Industrial Real Estate Sector Here to Stay The industrial real estate sector is experiencing a complete transformation brought about by changes in the retail sector, warehouse design, and supply chains. By John Dettleff, Senior Managing Director, Brokerage, JLL

industry in the late 19th century.

Industrial Real Estate Steals Some Moves from the Office Sector

he United States will need one billion square feet of industrial space over the next five years to keep up with e-commerce demand — one billion! Throughout the COVID-19 pandemic, much attention has been paid to the future of office, but the industrial market is experiencing a similar tectonic shift. Prior to the onset of the coronavirus, the increase in online sales was driving growth in the industrial real estate sector. JLL found that nearly 35 percent of all industrial leasing was attributed to e-commerce pre-pandemic. After March 2020, as online sales experienced an explosion in growth, demand for distribution space skyrocketed, accounting for the majority of all industrial leasing in 2020 — Amazon alone represented 55 percent of total U.S. industrial absorption. The result? A flood of investment dollars into the industrial real estate sector — the infrastructure (i.e., warehouses) needed to build out the same-day/next-day e-commerce network is not dissimilar to the railroad

In 2021, leading developers and designers of logistics properties will increase their emphasis on ergonomics and employee wellness. As online sales continue to grow, demand for warehouse workers and fulfillment professionals will also increase. In an already competitive labor market, warehouse amenities can help attract more workers by providing a safer, healthier, and more enjoyable environment for employees. This human-centric approach to warehouse operations will enhance productivity, allowing workers to focus more on order fulfillment and problem-solving, working in sync with warehouse robotics, which will increasingly perform more repetitive and injurious tasks. Furthermore, e-commerce distribution centers will need to push closer to the urban core and large population centers. These locations are extremely land-constrained and tight on parking. Therefore, distribution centers will need to offer shuttle services for employees to and from public transit. Distribution centers will need a symbiotic relationship with communities in which they are located, so careful attention will be paid to community

outreach, career development, and public spaces. Distribution centers of the future will infuse design elements from the office sector. Air conditioning, for example, is currently available to only 8 percent of warehouse workers! In order to attract employees and maintain positive community relations, warehouses may look a little more like offices, with fitness centers, community spaces, and enhanced wellness infrastructure such as air quality systems and natural lighting.

Scale and Proximity Become Increasingly at Odds As the world recovers from the COVID-19 pandemic, it is anticipated that the surge of online ordering during the pandemic will be sustained. Consumers became used to shopping online when they were unable to go into stores — utilizing everything from Amazon Prime to grocery delivery to swiping up based on an influencer’s recommendations. With that ease of shopping comes an expectation that those deliveries will arrive the same or next day. This has forced any retailer with a direct-to-consumer business to immediately invest in their e-commerce distribution network. Within a month after the national lockdown, the industrial market saw many new occupiers in the market. The speed and AREA DEVELOPMENT | Q2 2021

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size of e-commerce space requirements are staggering.

The common themes throughout all of these new e-commerce distribution center requirements are:

• • Proximity — locations in urban cores or densely populated areas

• • Scale — very large distribution centers with very large employee and truck parking areas

• • Speed to market — the average e-commerce

distribution center needs to be operational within four months of their search

• • Labor — a large (and preferably trained) work force in close proximity to the distribution center

As e-commerce distribution centers push closer to cities, these requirements are increasingly mutually exclusive. Therefore, industrial occupiers and developers will have to innovatively adapt to these changes; and these adaptations are currently occurring in the industrial sector. For example, retail-to-industrial developments are providing great opportunities for proximity. Rural communities at the periphery of urban areas are providing opportunities for land-hungry distribution centers that require scale. A tsunami of investment capital has created a massive pipeline of speculative industrial developments that will offer speed to market. As noted above, industrial occupiers and developers are working together to incorporate laborfriendly and community-friendly design elements to new e-commerce distribution centers.

tion network to an efficient, labor-friendly, and sustainable supply chain.

Occupiers Inflexible on Flexibility Real estate is by nature inflexible. Occupiers and investors make huge upfront investments in distribution centers in exchange for 10- to15-year lease terms. Occupiers have to predict peaks and troughs in inventory demand into their decades-long lease commitments. However, recent shocks to the supply chain like the COVID-19 pandemic, the port of Los Angeles backlog, and the Suez blockage increase the need for flexibility into the supply chain. Supply chain flexibility will not supplant long-term leases. Instead, supply chain flexibility will spur new technology that links shadow industrial space or unused trailer parking and allows principals to transact on an incremental, on-demand basis. While there are some innovators in this space today, there is a huge opportunity yet to be realized by providing flexible supply chain solutions.

Sustainability Starts Now

In 2021, forward-thinking industrial owners and property managers will need E-commerce to take measures to reduce the carbon footprint of their properties. Sustainability distribution will be a driving force for change as added centers will pressure from investors, consumers, and regulators encourages companies to more need to push closely evaluate the environmental impacts closer to the of their businesses. Supply chain carbon neutrality requires urban core and that a product or company be able to relarge population move the exact same amount of carbon dioxide from the atmosphere that it emits centers. in the process of development, production, and distribution. This is no small task. Even when purchasing carbon offsets or credits, companies will have to focus heavily on emissions reductions Investor Demand Mirrors Occupier Demand across their entire logistics and distribution network. In From 2017 to 2019, the institutional investment comthe industrial real estate sector, this will require signifimunity increased their industrial investment allocations cant investments in areas such as high-efficiency roofing by 95 percent. This trend actually accelerated after the and insulation, LED lighting, rooftop solar panels, wind COVID-19 pandemic, with a 10.6 percent increase in turbines, and other renewable power sources. 2020 and a 10.9 percent increase in the first half of In 2021 the theme of sustainability will not only 2021. change the design and specification of industrial properThe flow of capital into the industrial sector has ties, but it will also be a force of change for all induslargely provided solutions to the backlog of industrial trial operations. Industrial investors and occupiers are demand, as noted above. However, land and building increasingly aware that now is the time to start sustainprices have increased significantly. For example, the able initiatives if they are looking for results by 2030. average single asset deal price increased over 20.6 perThis a very exciting time in the industrial real estate cent, from $16 million in the first quarter of 2020 to sector. The industry is experiencing a complete trans$19.1 million in the first quarter of 2021. These price formation. Acute changes from the retail consumer are increases will undoubtably increase rents and, perhaps, spurring massive changes in institutional investing, consumer prices. However, increased capital flows into warehouse design, and supply chains. These changes the industrial sector will make possible the tectonic will be felt for years to come. n shifts necessary to transform the e-commerce distribu-

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LOGISTICS/RESHORING

Mitigate the Risks of Supply Chain Disruption There are four steps businesses can take now to prepare proactively for policy changes. By Scott McCandless, Trade Policy Leader; and Mark Hermans, Managing Director; PwC US

f the recent pandemic has taught business leaders anything, it’s that solid readiness planning through diversification and data analysis can reduce the impact when a crisis hits. Nearly half of operations leaders surveyed in the recent PwC US Pulse Survey1 indicated that reducing supply chain disruptions is “very important.” But few companies are ready to make the costly move of reshoring or nearshoring, even though a recent executive order put an emphasis on the potential upsides of moving supply chains to — or closer to — the United States or allied countries. Recent changes to multinational trade agreements also further complicate supply chains — often requiring in-depth proof of origin2 for products and their individual components. The February 24 Executive Order,3 which looks to review the vulnerabilities in U.S. supplies of critical technologies, metals, and pharmaceuticals, adds further urgency to fixing the disconnects. While it’s unlikely any laws will go into effect in the near term, the eventual resulting policy from the review could have long-term implications for U.S. businesses. In a March 30 speech about the American Jobs Plan,4 President Biden included additional detail that his proposal would reward companies that invest at home. Yet, only 29 percent of company chief operating officers (COOs) responded they would consider reshoring or nearshoring some operations to address rising costs related to ocean freight/domestic long-haul transportation, and only 28 percent were looking at reshoring or nearshoring some operations to reduce sourcing concentration.

President Biden is calling on Congress to invest $50 billion to create a new office at the Department of Commerce dedicated to monitoring domestic industrial capacity for critical goods and another $50 billion to invest in semiconductor manufacturing and research. But until there is further clarity on how policy might take shape, moving manufacturing infrastructure is likely not in the cards for most companies just yet. Still, there are critical steps businesses can take in the near-term to prepare proactively for near- and long-term changes in policy.

•••• Have active dialogue with regulators. Policymakers often don’t know the ins and outs of every business. Sharing your story with regulators and showing them how your supply chain operates can help frame future policy decisions and, significantly, can help deter policy missteps. Identify where jobs exist along your supply chain and how they could be reset to create more U.S. jobs. Also show what support may be needed to overcome the hurdles of reshoring capital investments. Thirty-one percent of operations leaders responded that they are looking to improve their organization’s resiliency through initiatives like expanding suppliers. AREA DEVELOPMENT | Q2 2021

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Making Supply Chains More Resilient

Q. A re you pursuing any of the following in your supply chain to improve resiliency? (Responses to – “to a large extent”) Source: PwC US Pulse Survey, March 12. 2021; COO base of 93

••••

Align your business with possible tax implications.

Identify potential threats.

The relocation of people, processes, or technology could have significant tax implications. Pay attention to how income is adjusted between jurisdictions, which may further alter tax attributes, as well as potential tax exits, which could result from moving key profit-driving assets or functions out of the jurisdiction. Internal communication is often one of the biggest challenges within many companies; making sure the trade team is connected with supply, logistics, tax, finance, and planning takes coordinated effort but can reap significant rewards and avoid potential pitfalls, especially as taxing authorities around the world become more aggressive.

•••• Develop and diversify strategic reserve capacity in suppliers. It’s difficult to build up capacity with little notice, and therefore unforeseen complications like a global pandemic or a container ship running aground in a key shipping lane could easily result in shortages. Diversify the supplier base and eliminate single or concentrated sources of supply. Move toward multi-supplier and multigeography supply strategies.

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From cybersecurity to climate change, there are a wide variety of threats that could disrupt a supply chain, but that can cause little impact with the right preparation. Evaluate potential pain points — no matter how farfetched. Many companies still have room for improvement in these areas; only 40 percent of COOs said they were advancing environmental, social, and governance (ESG) strategies and only 34 percent said they would improve analytical capabilities. President Biden has made it clear that creating American jobs, bringing industry back to the U.S., securing digital infrastructure, and tackling climate change are major initiatives for his administration. Furthermore, board members are increasingly tasking management with uncovering supply chain dependencies. Taking an inventory of how each of these issues impacts your broader supply chain will go far in preparing your organization for the inevitable policy changes coming in this space. n 1

https://www.pwc.com/us/en/library/coo.html https://www.pwc.com/us/en/products/origin-compliance.html https://www.whitehouse.gov/briefing-room/presidential-actions/2021/02/24/ executive-order-on-americas-supply-chains/ 4 https://www.whitehouse.gov/briefing-room/statements-releases/2021/03/31/ fact-sheet-the-american-jobs-plan/ 2 3

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5/4/2021 9:49:47 AM

Congratulations Silver Shovel Award Winner Ultium Cells wins the Manufacturing Project of the Year Welcome to Ohio, Ultium Cells In December 2019, GM and LG Chem announced the creation of their 50/50 joint venture, known as Ultium Cells LLC, to mass produce batteries for future EVs in Lordstown, creating 1,000 jobs. Ultium Cells will be an integral part of GM’s ambitious plans to develop 20 EV models by 2023, and it represents an investment of up to $2.3 billion through the new, equally-owned JV. At the completion of the project, this facility will be one of the largest cell manufacturing plants in the world.

Ohio’s Economic Development Corporation

jobsohio.com/ohio-success/ultium-cells/

Area Development Q2 Issue 2021

Articles inside

Life Sciences Fueling Construction Demand

A Turnkey Approach to Manufacturing Location Decisions

Shoring Up Operations for Growth