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E-COMMERCE CHANGES LOGISTICS

TRUE VALUE OF INCENTIVES

CEOs MORE OPTIMISTIC

DIRECTORY/2014

IS THE GRASS

REALLY

GREENER? HOW TO PREPARE A PLAN FOR GROWTH

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2014 DIRECTORY Visit

www.areadevelopment.com

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MidAmerica Industrial Park: One of the NCTIGUV CPF ƂPCPEKCNN[ TQDWUV KPFWUVTKCN RCTMU KP VJG PCVKQP 1YPGF CPF QRGTCVGF CU C RWDNKE VTWUV /KF#OGTKEC RTQXKFGU WPRCTCNNGNGF HQEWU QP VGPCPV PGGFU YKVJQWV TGF VCRG 'PJCPEGF D[ C UVTCVGIKE NQECVKQP CPF RQYGTHWN NQIKUVKEU /KF#OGTKEC CNUQ QHHGTU SWKEM CEVKQP KPEGPVKXG RCEMCIGU NQY EQUV WVKNKVKGU QP UKVG CPF C JKIJN[ UMKNNGF INQDCN YQTMHQTEG VJCVoU TKIJV VQ YQTM CPF TGCF[ HQT CP[ EJCNNGPIG So why wait? And why settle for less? Get The Works—all the advantages to lift your bottom line, right here at MidAmerica.

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our Fortune 500 leaders and other great companies on the move.

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CONTENTS 16

FEATURES 19 E-COMMERCE CHANGES

LOGISTICS AND INCENTIVES LANDSCAPE

IS THE GRASS

REALLY

GREENER?

The evolution of the e-commerce channel will have an ongoing impact on distribution facilities and those markets with the required infrastructure and incentives that e-commerce companies seek.

22 THE TRUE VALUE OF

ECONOMIC DEVELOPMENT INCENTIVES

COVER STORY A thorough investigation of key criteria will allow a company to determine whether expanding at its current location or relocating will yield the best results.

Companies need to determine which incentives are of most value to them and also make sure they are utilizing all the incentives to which they are entitled.

24 A MORE FOCUSED

APPROACH TO THE INDUSTRIAL LOCATION & EVALUATION PROCESS

Digging through layers of information on the national and then local level is an arduous task for site selectors, but one that has been made easier through the use of GIS tools.

26 2013 GOLD & SILVER

SHOVEL AWARD RECIPIENTS

Representatives from nine states pose with their 2013 Gold & Silver Shovel Awards.

28 A LOOK BACK —

AND AHEAD — AT THE LEGISLATIVE/INCENTIVES LANDSCAPE

States are embracing the competitive economic climate by introducing bigger and better economic incentives to attract the highest value industries.

31 HOW TO DEVELOP

A SUCCESSFUL OUTSOURCING CONTRACT

Outsourcing agreements crafted according to the 10 elements and five rules of “Vested” result in truly collaborative agreements and a win-win situation for the parties involved.

Exclusive O N L I N E Content FEATURES NOW ONLINE...

Changing the Game on Innovation In a unique arrangement, P&G outsourced its facilities management, along with several other functions, creating a collaborative, win-win relationship with its service providers.

Slow, But Steady Economic Growth Forecast for 2014 Growth in jobs, consumer confidence, homes sales, and corporate profits, albeit dampened with uncertainty, are painting a somewhat rosier picture for 2014.

Coming In for a Landing: Ontario’s Aerospace Cluster Comes of Age

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

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AREA DEVELOPMENT | 2014 Annual Directory

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Volume 48 | Number 5

ANNUAL DIRECTORY 2014

Quote:

“We should be blessed if we lived in the present always, and took advantage of every accident that befell us…and did not spend our time in atoning for the neglect of past opportunities.”

Henry David Thoreau (1817–1862), American author, poet, and philosopher; from Walden, Spring

4 EDITOR’S NOTE — Getting the U.S. Work Force Up to Snuff

DEPARTMENTS FIRST PERSON

IN FOCUS

6

Achieving Business Outcomes With Energy Intelligence

10

Scott N. Paul, President, Alliance for American Manufacturing

12

Metal-to-Plastic Conversion Allows for Creativity & Reduces Shipping Costs Hydraulic Fracturing Gives Rise to New Water-Treatment Technologies

8 IN THE KNOW • CEOS More Optimistic About Economy, Hiring • New Technologies & Techniques Transforming Manufacturing • Capital Expansion Plans Leverage Tax Credits & Incentives (C&I) • Business Location Tracker

14 96

35

FRONT LINE

AD INDEX/WEB DIRECTORY Ad Index/Web Directory

2014 DIRECTORY State information is grouped by region. Listings of all state contacts and SelectSites contacts follow regional sections. An index to regional/state information and listings within each region appears on page 35.

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

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

Online Database Resources www.facilitylocations.com

www.fastfacility.com

POSTMASTER: Send address changes to Area Development, Circulation Department, 400 Post Ave., Westbury, NY 11590. Subscribers requesting address changes must provide both old and new addresses. © Copyright 2013 by Area Development® magazine. ISSN: 1048-6534. Printed in the U.S.A. Area Development® is a registered trademark of Halcyon Business Publications, Inc.

AREA DEVELOPMENT | 2014 Annual Directory

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EDITOR’S NOTE

ANNUAL DIRECTORY 2014

Getting the U.S. Work Force Up to Snuff The Association for Manufacturing Excellence (AME) estimates that 85 percent of all new jobs will be skilled positions that require some post-secondary education. Among the best-paying jobs are those in manufacturing, which pay 17 percent more than nonmanufacturing jobs, according to the AME. Yet, ManpowerGroup notes that jobs in the skilled trades are the most difficult to fill. The group’s 2013 Talent Shortage Survey reveals 39 percent of all U.S. employers are having difficulty finding staff with the right skills, and nearly half (49 percent) of U.S. employers say these shortages are affecting their ability to serve customers.

There’s been much talk — and some evidence — of a U.S. manufacturing renaissance and bringing these high-paying jobs back home, i.e., reshoring. However, this “skills gap” must be closed if manufacturers are to find the skilled workers they need. The National Association of Manufacturers estimates the gap as representing 600,000 manufacturing jobs — that’s huge! The association proposes a system of nationally portable, industry-recognized skills certifications to help close the skills gap.

Scott Paul, president of the Alliance for American Manufacturing, recently told Area Development that Manufacturing Extension Partnerships (MEPs) are getting more involved with skills training at the community-college level. Not surprisingly, these types of programs had been absent for more than a decade.

This skills training is a good step, but there needs to be an even greater focus throughout the U.S. educational system on STEM (science, technology, engineering, and math). These skills are needed not just for manufacturing jobs, but for all jobs in the 21st century economy. If long-range educational plans aren’t put in place, the United States will fall further behind other nations. The U.S. already ranks only 16th globally in literacy, 21st in numerical proficiency, and 17th in problem-solving in technology-rich environments, as recently reported by the Organization for Economic Cooperation and Development (OECD). These lagging skills will have a profound effect on the U.S. economy and global competitiveness, as well as our standard of living.

In 2014, Area Development will examine these work force issues more closely, with input from manufacturers and other businesses, community representatives, location consultants, and others to determine how the skills shortage — real or perceived — affects a company’s location and expansion decisions. Stay tuned to find out what is being done by all of these stakeholders to fulfill labor force requirements and position the U.S. economy for growth in the years to come.

www.areadevelopment.com EDITORIAL

E-mail: editor@areadevelopment.com Editor Geraldine Gambale Staff and Contributing James Berger John Borchardt Lisa Buddecke Dave Claborn Mark Crawford Clare L. Goldsberry Craig Guillot

Editors Beth Mattson-Teig Phillip Perry Jim Romeo Mali R. Schantz-Feld Steve Stackhouse Karen Thuermer

DESIGN/PRODUCTION Art & Design Patricia Zedalis Production Manager Jessica Whitebook Production Assistant Talea Gormican EXECUTIVE Publisher Dennis J. Shea

dshea@areadevelopment.com Sydney Russell, Publisher 1965-1986 ADVERTISING SALES William Bakewicz (ext. 202)

billbake@areadevelopment.com Valerie Krpata (ext. 218)

valerie@areadevelopment.com ONLINE SERVICES Digital Media Manager Justin Shea (ext. 220)

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

mshea@fastfacility.com Web Designer Carmela Emerson

BUSINESS SERVICES Reader Service Barbara Olsen (ext. 225)

olsen@areadevelopment.com Circulation Gertrude Staudt

circ@areadevelopment.com CONFERENCE SERVICES Program Manager Annie Gregson (212) 579-4469

annie@areadevelopment.com EXECUTIVE OFFICES Halcyon Business Publications, Inc. President Dennis J. Shea

Editor

Finance Mary Paulsen

finance@areadevelopment.com

2013 EDITORIAL ADVISORY BOARD Tim Feemster Managing Principal, Foremost Quality Logistics Larry Gigerich Managing Director, Ginovus Robert Hess Executive Managing Director, Newmark Grubb Knight Frank Andy Mace Principal Consultant, Cushman & Wakefield Global Consulting, Supply Chain Solutions

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John Morris, Leader of Industrial Services for the Americas, Cushman & Wakefield, Inc. Kathy Mussio Managing Partner, Atlas Insight Scott Redabaugh Managing Director, Jones Lang LaSalle Andrew Shapiro Managing Director, Biggins Lacy Shapiro & Co.

AREA DEVELOPMENT | 2014 Annual Directory

Noah Shlaes Senior Managing Director, Newmark Grubb Knight Frank Thomas Stringer, Esq. Director, Business Advisory Services, Ryan & Company Dean J. Uminski Executive, Site Selection Consulting, Crowe Horwath LLP

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Phone: Toll Free: Fax:

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AROUND HERE, BUSINESS IS TAKING OFF.

“DFW Airport has created an excellent climate for our company’s growth; they make it easy to do business and achieve win-win outcomes.”

ProLogis

“DFW Airport’s location provides excellent visibility and easy access.

We’ve grown our business at a record pace.”

Arizona Tile

“Relocation helped grow our workforce and product advancements.

We received great support from the DFW development team.”

Sikorsky

“Our developments at DFW Airport have been very successful. We look forward to working with DFW on many future opportunities.”

Perot Development

At Dallas/Fort Worth International Airport, you’ll find some serious advantages. And with 6,000 acres ready for commercial development, you’ll also find amazing growth opportunities for cargo, distribution, office, retail, restaurants and hospitality.

Plus, it’s all right here in the heart of Dallas and Fort Worth.

CALL 972 973 4655 OR VISIT THE NEW DFWAIRPORT.COM/LANDHERE TO LEARN MORE.

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IN FOCUS

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Achieving Business Outcomes With Energy Intelligence

By Spencer Rigler, Elster EnergyICT

Efficiency and sustainability are critical to businesses today. Rising energy bills, greater price volatility, and stricter regulation concerning energy consumption and carbon emissions are familiar challenges, all adding unpredictability to the cost base.

Businesses are already taking simple steps to improve the energy efficiency of their sites — turning things off, investing in energy-efficient equipment, and implementing building control systems. Ask any store manager where he believes he can save energy and he immediately looks up at the lights. Likewise, energy managers diligently monitor usage and bills to bolster their negotiating position with suppliers, but they lack the tools to drill into exactly how, where, and why energy is consumed throughout the enterprise.

Turning Static Data Into Actionable Intelligence Spencer Rigler is responsible for energy management globally within Elster. He has more than 20 years’ experience within the telco and energy sectors, where he has held positions in Asia and Europe. Elster is a world leader in energy management and smart grid solutions, delivering a comprehensive portfolio of products and services to organizations across the globe.

Businesses with multiple sites will have hundreds — if not thousands — of points measuring electricity, gas, and water consumption. They will also employ controls to manage the operation of building services, including advanced asset management software in place to help optimize asset lifecycles. These systems generate vast volumes of data, but are typically operated in silos, resulting in a lack of visibility across the site estate.

These systems contain a wealth of information such as whether the filters on refrigeration units have been cleaned, how regularly coolant is being topped up, and whether the door sensors are being serviced regularly. Businesses that have been using these types of systems for many years are sitting on vast data mines relating to their energy usage and physical assets.

Advanced energy management systems have, therefore, evolved to combine, standardize, and analyze the data in a user-friendly way. They employ easy-to-understand graphic dashboards that allow users to cross-reference a rise in energy consumption — known as an energy exception — with building controls and asset information, in order to identify the root cause and decide on a response or action.

Tracking and Sustainability

With this level of visibility, users are able to unlock the hidden patterns in their organization’s energy consumption and improve business performance. They can uncover both major areas for change and the granular details where individual actions can make a big difference.

Gathering diagnostic data from an end location, combining it with other information to create an energy exception, and then providing a set of actions according to asset type, provides users with a much more intensive and interactive energy-management engagement than conventional systems. This is essential for achieving sustainable savings, since realworld experience shows that efficiency programs lose momentum without constant attention, and savings can dip by 2 to 4 percent annually as a result.

Why It Pays To Be a Bean Counter

Such efficiency gains can have a direct impact on the bottom line for established companies with energy-management aspirations; with energy costs generally tracking a company’s size, savings can run into the multimillions. Think about it; save a $1,000 on your energy bill, and with an operating margin of 2 percent, that’s equivalent to having to selling $50,000 of merchandise — imagine asking a store manager to deliver additional sales of this magnitude!

Businesses have traditionally approached energy consumption as a fixed overhead, but the real opportunities lie in approaching it as a variable cost that can be tightly controlled with advanced energy-management systems to increase the competitiveness and effectiveness of operations and the business as a whole.

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IN THE KNOW NEW TECHNOLOGIES & TECHNIQUES TRANSFORMING MANUFACTURING According to a recent paper from the Deloitte University Press entitled “The Transformation of Manufacturing,” advanced materials, new production technologies, and digital techniques are allowing manufacturers to remain competitive despite numerous challenges.

Additive Manufacturing (AM): Among the new production processes is additive manufacturing, e.g., 3D printing. In fact, additive manufacturing has become a national technology focus. A year ago, the Obama administration launched the National Additive Manufacturing Innovation Institute (NAMII) to maintain a competitive advantage in 3D printing and accelerate the position of the U.S. in the development and use of this technology. And this past October, NAMII was rebranded as America Makes.

According to Terry Wohlers of Wohlers Associates, a member of America Makes and an AM industry researcher, “In 10 years, 3D printing of end-use products has gone from almost nothing to 28.3 percent of the total product and service revenues from additive manufacturing worldwide.”

Advanced Materials/Nanotech: When it comes to advanced materials, carbon fiber composites, ceramics, and nanomaterials are increasingly being used in automobiles, aircraft, building materials, and other products. And more and more research is taking place. For example, six technology companies recently announced they would invest $1.5 billion to create “Nano Utica,” New York State’s second major hub of nanotechnology research and development.

Digital Tools: Finally, through new digital design and collaboration tools, manufacturers are now able to digitally simulate the appearance, performance, interoperability, and manufacturability of their products, thereby saving time and money. According to Helmuth Ludwig, CEO, Siemens Industry Sector, North America, as quoted in Industry Week, there has been “a paradigm shift in industry: the real manufacturing world is converging with the digital manufacturing world to enable organizations to digitally plan and project the entire lifecycle of products and production facilities.”

CEOS MORE OPTIMISTIC ABOUT ECONOMY, HIRING An early December survey of chief executives at the 200 largest U.S. comCEO Economic Outlook Index panies, i.e., The Business Roundtable, revealed that a growing number are 120 slightly more optimistic about the economy’s prospects for the next six months 100 84.3 84.5 and expect to add to their work forces.

81.0 79.1 The Roundtable’s index measuring 80 65.6 CEO outlook rose to 84.5 in the fourth quarter of 2013, up from 79.1 in the 60 July-September quarter. Readings above 50 indicate expansion.

40 Moreover, 34 percent of the surveyed executives expect their firms 20 will increase hiring in the next six months, up from 32 percent noted in 0 the third quarter survey. And 73 perQ4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 cent of those surveyed expect their companies’ sales to increase, up from 71 percent in the July-September quarter. Nonetheless, the CEOs only expect the economy to grow at a 2.2 percent rate in 2014, unchanged from the previous two surveys’ forecasts.

“Our expectations are consistent with an economy that will continue along the path of steady, modest recovery into the first half of 2014,” said Jim McNerney, chief executive of aircraft maker Boeing Co. and the chairman of the group.

McNerney also told reporters that many business executives are concerned about the impact of President Barack Obama’s healthcare law on their companies’ costs. Some companies are responding by holding back on hiring and investments in their businesses, he said.

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Track business relocations and expansions on Area Development Online.

Studies/Research/Papers on Area Development Online.

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

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

BUSINESS LOCATION TRACKER Two Informatics Firms Open Kentucky Operations Centers Creekstone Farms Expands in Kansas Creekstone Farms Premium Beef LLC will expand its beef-processing operations center in Arkansas City, Kansas. The company currently employs 720 and anticipates hiring an additional 300 workers during the next five years.

Xcelerated Learning Dynamics and Clear Measures have opened production centers at the RiverCenter Office Complex in Covington, Ky. The openings, combined with expansions, will create 341 jobs within three years.

Church & Dwight Co., Inc., will invest nearly $55 million to construct a vitamin manufacturing, packaging, and distribution facility in Jackson Township, creating approximately 180 new jobs.

Bell will produce its new SLS helicopter at the facility, investing $11.4 million in equipment and tooling, and creating 115 new jobs in the region.

Power distribution products manufacturer ALUMA-FORM is building a $6.7 million manufacturing facility and distribution center in the Walnut Industrial Park that is expected to create 125 new jobs in Tippah County.

A North American service provider to consumers, through partnerships with leading utilities, HomeServe USA Corp. is investing $33 million to relocate its corporate headquarters to Norwalk, CT.

Vitamin Manufacturer Expanding in York County, PA

New Bell Helicopter Assembly Facility at Lafayette, LA, Regional Airport

ALUMA-FORM Constructing Mississippi Manufacturing Facility

HomeServe USA Corp.

Relocating Headquarters to Connecticut

Michelin Opens $750 Million S.C. Manufacturing Plant Michelin, South Carolina’s largest manufacturing employer, has opened its newest 800,000-square-foot manufacturing facility in Anderson County, which will produce large tires for earthmoving equipment.

AIG to Open $5.5 Million Technology Center in Charlotte, N.C. American International Group plans to create 230 new jobs by the end of 2017 at the new center in Mecklenburg County that will design, develop, test, and deploy software supporting various insurance functions.

Go to www.AreaDevelopment.com/NewsItems to track business expansion & relocation announcements

CAPITAL EXPANSION PLANS LEVERAGE TAX CREDITS & INCENTIVES (C&I) A new EY study shows that corporate capital expansion plans are likely to drive tax credits and incentives (C&I) activity. Nearly seven out of 10 executives — 68 percent — surveyed by E&Y say their companies would pursue moderate to aggressive capital expansion over the next 24 months. And, as these companies accelerate their capital spending, there will be a commensurate increase in the likely benefits of exploring C&I opportunities since capital-intensive projects are often the most likely to see improved return from C&I and indirect tax savings.

“More organizations are paying attention to these opportunities,” said Ali Master, partner and national director of Business Incentives & Tax Credits, Ernst & Young LLP. “As companies become more aware of C&I, they assume a better position for reaping the rewards. According to the survey, 42 percent of respondents say that over the past two years they have been more active in pursuing business incentives.”

A key trend uncovered by the survey is the emergence of a small but significant group of almost 60 companies (8 percent) that consider themselves as being “very active” when it came to capturing C&I. In fact, this group of “front-runner” companies said that they had a department focused on C&I with a “coordinated process at all levels” to maximize the capture of C&I. Additionally, the total pool of available C&I also is increasing, presenting worldwide opportunities for companies. Expansion of such programs is not uniform — not all jurisdictions are active — but the trend is toward more, not less. Competition is global, with local, regional, and national governments actively courting new businesses and working to retain or expand existing businesses. In such instances, the size of total incentives packages is growing, and there is a greater willingness and flexibility to work with businesses to develop the appropriate combination of incentives to address business needs.

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FIRST PERSON

SCOTT N. PAUL PRESIDENT ALLIANCE FOR AMERICAN MANUFACTURING

reduced its investment in basic research — they’re doing more applied research — because the returns on investment aren’t there or don’t come back fast enough. Government picks up the slack along with academic institutions and industry as partners.

Federally funded research puts new ideas into the pipeline and the private sector drives them into the market.

On a recent radio talk show, you commented, “We’re seeing a rebound in manufacturing — specifically in automotive supported by the government bailout of GM.” It seems, however, that the government isn’t very successful in creating manufacturing jobs.

Paul: Did the loan guarantees and restructuring work? Unequivocally yes. It’s hard to imagine what would have happened if the government hadn’t intervened. GM and Chrysler would have gone bankrupt and that would have impacted Ford.

However, it wasn’t the government intervention alone that put the automotive industry back on the fast track. Many people put off buying a new car during the Great Recession.

With the average age of cars being 11 years old, a lot of folks are in the market for a new vehicle. Also helping are low interest rates, which make borrowing and buying a car cheaper.

That’s where focused government intervention had positive outcomes.

The results have been encouraging to me. Chrysler, GM, and Ford are no longer in dire financial straits and are investing in production in the U.S. again. And when you look at employment, manufacturing added about 500,000 jobs since the end of the recession, 320,000 of those in the automotive OEM and supplier sector. That represents an outsized contribution to the recovery in manufacturing.

What about the high corporate tax rates?

Paul: I don’t think that having regulations or taxes are necessarily bad. Often the problem is that the government doesn’t do a good job of putting manufacturing at the center of its decision-making for everything, whether it’s education, taxes, trade, or environmental regulations, and it doesn’t promote manufacturing while preserving our quality of life. That’s the prism through which we have to view overall economic development. The big challenge isn’t whether the government does or does not intervene, but that manufacturing isn’t at the center of the decisions that government makes. We need to put manufacturing at the center of everything that we do.

Manufacturers often blame government regulations for offshoring and the slow growth in jobs in the U.S. Do you think manufacturing is better-served with less government intervention?

Paul: Well, government gets some things wrong and some policies are counterproductive.

But some roles that government plays do fill in the gaps that the private sector couldn’t fill alone.

For example, every manufacturing firm depends on logistics and infrastructure to move its goods. There’s nothing a single firm can do about that so it takes the federal government to invest smartly in infrastructure.

Also, the basic “moon shot” R&D that we do in this country is critical to manufacturing. A lot of the private sector has

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We hear a lot about the so-called “skills gap.” Is that real?

Paul: I like the line from the movie, Field of Dreams: “If you build it they will come.”

If there are real manufacturing jobs to be had, they will come. Yes, there are some shortages of skills, but reports from the Bureau of Labor Statistics show that we’re far from a crisis — there’s modest hiring.

However, here’s the challenge: we’re coming off a period from 1998 to 2010 where there was a paucity of hiring in manufacturing.

There was a whole half a generation where there was just a trickle of hiring compared to the boom days of the 1990s.

Unfortunately, the signal that sends is that manufacturing jobs are on the way out so people need to train in jobs that can’t be outsourced, like healthcare for example. So that’s what the vocational community responded to. Everyone was focused on a four-year college degree — and that doesn’t change overnight.

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What should manufacturing be doing to solve this problem and drive young people into manufacturing?

Paul: We’ve found in our research that people love manufacturing and manufacturing workers. They just don’t think there are any jobs there. That’s the primary obstacle — getting more kids interested and parents educated in the fact that manufacturing offers good jobs with good wages. It’s key to begin steering them into manufacturing jobs. We’re making progress. Manufacturing Extension Partnerships (MEPs) are getting much more into skills training at community colleges. More community colleges are adding programs to train for manufacturing jobs in their areas. And many didn’t have these programs for more than a decade, so things aren’t going to change overnight. It will happen. It will take resources, and it will be frustrating. It is a management challenge but it’s solvable.

“Made in America” is being promoted everywhere — even the mainstream media is picking up the mantra. Is this going to stick and will it make a difference?

Paul: I think there are two different trends driving this renewed interest: first, localization is having an impact. Take farmers’ markets, for example, which have morphed into restaurants and grocery stores also featuring local produce.

The next logical step is locally made goods. Secondly, some of this is being driven by the recession and what happened to manufacturing. There’s a feeling that we can’t let this happen again. So what can we do? We can buy stuff made in America. Even Walmart has announced a “Made in America” sourcing program. It’s changing their culture — not dramatically, but somewhat. It will catch on. Every marketer, every

company that makes something knows that the American flag carries a little bit of a premium. It’s great to see!

Do you want to mention the new book?

Paul: We’ve put together a book entitled ReMaking America, edited by Richard McCormack, the current editor of Manufacturing & Technology News, who also contributed a chapter. We gathered a lot of different voices for the various chapters. We wanted to show there are many different reasons to be for American manufacturing. We put the book together to reinforce the thesis that manufacturing should be at the center of economic and trade decisions, of energy development, and education and training. The central question should be: “Will this strengthen American manufacturing?” That’s the government’s job — to create the environment to enable the private sector to create the jobs we need.

THE ASSIGNMENT Scott N. Paul, president of the Alliance for American Manufacturing (AAM), based in Washington, D.C., is one of the most visible champions of American manufacturing.

AAM is a nonprofit, non-partisan partnership found in 2007 by some of America’s leading manufacturers and the United Steelworkers union, with the goal of strengthening American manufacturing and creating new private-sector jobs through smart public policies. One of Area Development’s staff writers, Clare Goldsberry, recently interviewed Paul to find out more about the AAM’s specific agenda.

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Let us show you why a move to the Top of Georgia is the best move your company can make.

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FRONT LINE

Metal-to-Plastic Conversion Allows for Creativity & Reduces Shipping Costs

M

etal-to-plastic conversion is the manufacturing process of making plastic components that can replace metal components, without sacrificing the performance or longevity of the final product. This also allows more design creativity, because plastic is easier to mold into complex and/or smaller shapes — sometimes one plastic part can even replace multiple metal parts.

What is even more impressive is that converting to plastic components can save up to 50 percent in operational expenses. Because plastic parts are so much lighter, considerable money can be saved on shipping and distribution costs, both for raw materials coming into the plant and outgoing finished parts and products. With these combined savings, metal-to-plastic conversion can be a big step in making U.S. companies more competitive with low-cost countries.

Use in Automotive The automotive industry, in particular, has been taking advantage of metal-to-plastic conversion for years to meet stricter federal guidelines for improved fuel efficiency by 2025.

“Studies by the EPA and other organizations show that every 5 percent of vehicle weight removed can improve fuel economy by 2 percent,” says Marc Mézailles, global automotive industry manager for PolyOne Specialty Engineered Materials in Lyon, France. “Generally, replacing a metal component with a plastic one results in a 50 percent weight reduction, so the math is attractive to designers striving to reach corporate average fuel economy targets.”

Besides being lighter weight, components made from engineered plastics can be just as durable, heat-resistant, and corrosion-resistant as metal components, making them suitable for harsher, under-the-hood environments.

“Thermally and electrically conductive plastics now sport 10 to 100 times more conductivity than conventional plas-

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By Mark Crawford

tics, a level equivalent to stainless steel,” adds Mézailles.

“They’re making their way into heat sinks, EMI/RFI shields, and a range of components for hybrid electric and electric vehicles, such as connectors, power electronics, and infotainment modules.”

Other Applications With these kinds of manufacturing advantages (especially lower costs), more companies from a variety of industries are getting on board. For example, plastic is replacing metal in automation equipment, pneumatics, instrument housings, medical devices, LED lighting systems, carts, folding tables, and even utility pole cross bars. In fact, plastics allow designers to be more creative because they can work with plastics that have specific physical and chemical characteristics that are better than those found in metals. What’s more, there are more than 25,000 engineered plastics available.

A key cost savings that doesn’t immediately come to mind is shipping and handling. Packaging and shipping products — especially larger or bulkier ones — that are 50 percent lighter than their metal equivalents can save a lot of money, especially when shipping long distances or overseas.

There is also less damage during shipping. This can be a strong logistics advantage in highly competitive markets.

“For companies that haven’t worked with plastic, this probably sounds hard to believe,” says Al Elger, an engineer with Kaysun Corporation, a Manitowoc, Wisconsin-based injection molder. “But it’s true — with appropriate part design, plastic parts can be designed to perform just as well as the metal parts that are being converted to plastic. As material suppliers continue to develop high-strength thermoplastics that are increasingly impact-resistant, corrosionresistant, and heat-resistant, we’ll see more companies convert from metal components to plastic.”

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If you’re considering relocating or expanding your business then Hoosier Energy should be top of mind. Our searchable property data and shovel-ready sites reduce big decisions down to manageable choices that could fit on the head of a pin. You’ll find the power of working with us is a lot more than the power we supply. Whether its existing facilities, a new site or community incentives, we have all the connections to positively impact your business.

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FRONT LINE

Hydraulic Fracturing Gives Rise to New Water-Treatment Technologies

Ecosphere Ozonix® water treatment systems being utilized by a customer in the Fayetteville shale region of Conway, Arkansas

By Mark Crawford

T

here is no doubt that hydraulic fracturing for oil and gas in shale deposits is a controversial technology — especially when it comes to impacts to water resources. Protecting water is the biggest environmental issue facing the hydraulic fracturing industry today.

“Fracking” consumes vast amounts of water — typically millions of gallons for every well drilled. This can have a huge impact on groundwater resources, especially in arid regions in the western United States, and heavily populated areas in the eastern half of the nation that are already dealing with water issues, including depleted aquifers.

Oil and gas companies also add chemicals to the water they pump down the hole, including lubricants and biocides to kill bacteria. Then there is “flowback water” — naturally occurring water that is contained in the deep rocks below and flows back up to the surface under geologic pressure. This water is often brackish and contains high levels of salts, heavy metals, and sometimes naturally occurring radioactive compounds.

On-Site Treatment Instead of cleaning up the water on site, most oil and gas companies truck the contaminated water off-site and pump it down disposal wells, or take it to water-treatment facilities. Some companies, however, are now investing millions of dollars in new technologies that treat water on site — not just for environmental reasons or to boost their public image, but also to improve their bottom line.

Trucking water over long distances for disposal is expensive and time-consuming. If the water can be cleaned and re-used on site, less water needs to be taken from nearby resources for drilling, and less water needs to be hauled away — reducing truck traffic, fleet expenses, and fuel costs.

As a result, innovative companies are developing better ways to clean and recycle drilling water on site, as well as

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manufacturing “greener” drilling solutions that have fewer harmful chemicals. For example, Halliburton is now offering a down-hole drilling solution whose active ingredients are all sourced from the food industry.

New Technologies Some companies are using ultraviolet light or ozone to kill bacteria in the water, eliminating the need for biocides and other chemicals that eliminate scale build-up. “Our patented Ozonix® (oxidation) technology has been used to treat over three billion gallons of water in the U.S. hydraulic fracturing industry since 2008,” states George Chapas, director of new business development for Ecosphere, a waterengineering firm. This has eliminated the need for more than 1.7 million gallons of harmful chemicals in about 600 drilling projects over the last five years.

Advanced desalination technologies are also being designed to treat contaminated drilling water. GE is developing a technology called membrane distillation to separate pure water vapor from salt water. Once commercialized, this process could reduce water treatment costs by 50 percent.

Other companies are using electricity to isolate and remove pollutants. Halliburton’s CleanWave ® system delivers an electrical charge that concentrates pollutants in the water, which then either sink to the bottom to be collected, or float to the surface where they are removed with a surface skimmer. The treated water is then clean enough to be re-used in drilling and production operations.

With the explosion of hydraulic fracturing in the U.S., oil and gas companies are anxious to prove their commitment to the environment by investing in new technologies to protect water resources. These new, cutting-edge approaches to water management will also prove valuable to other watercleaning projects.

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COVER STORY

IS THE GRASS

REALLY

By LARRY GIGERICH, Managing Director, GINOVUS

GREENER? A thorough investigation of key criteria will allow a company to determine whether expanding at its current location or relocating will yield the best results.

hen a company is faced with not having enough space to serve its clients, it is faced with two choices — either expanding at its current location or locating a facility in a new location.

The first step in the process is to complete a thorough evaluation of current operations at the existing site. This is critical to preparing a detailed plan for growth. Another critical milestone in the process is to develop a list of key criteria to help guide the company’s decision where to grow the business. Key factors, such as geographic markets to serve, tax structure competitiveness, labor quality and cost, real estate availability and cost, and economic development incentives are crucial in determining whether selecting a new location or expanding in the current location would result in the most favorable outcome for the business.

W

NEW FACILITY OR EXPANSION? If a company is located in a facility that does not have excess capacity and/or available land to accommodate an expansion of the building, then locating a new facility is most likely inevitable. However, it is important to compare the two options side by side to ensure an “apples to apples” financial comparison.

The company’s current location and new geographic areas under consideration should now be evaluated in a variety of key areas (as outlined below). If there is sufficient real estate to expand, the existing location has a good work force, and the business climate is competitive, then the existing site should be a very attractive option. However, if there are concerns regarding any of these key issues, a new location may make the most sense.

When significant capital investment and/or the creation of new jobs is considered, economic development incentives should be taken into account for all finalist locations in an effort to lower project and/or operating costs. Companies must ensure that due diligence is carried out and options thoroughly investigated to make the most informed decision.

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KEY CONSIDERATIONS As a part of the process, the following key factors would be evaluated: Operating costs — The cost of labor (average salaries/hourly wages and benefits), utility costs and availability, environmental regulations, tax structure, transportation costs, raw materials, and real estate are all factors that impact operating costs. The locations under consideration can have vastly different expenses that impact operating costs.

New equipment or modernization of existing equipment — Any costs associated with new equipment or the modernization of existing equipment need to be evaluated in terms of the costs of relocation or expansion. In addition to the analysis of costs, technological advances and efficiencies are important considerations when evaluating the purchase of new equipment or modernization of existing equipment.

Proximity to key geographic markets — Reducing the distance of product to the key markets can affect speed, cost, and service. Being able to serve clients from a quality and cost standpoint is critical.

Labor force — In addition to cost and quality of labor, other factors should be considered. Unionization rates, right-to-work laws, turnover rates, filed labor grievances, and workers’ compensation and unemployment compensation rates are all of significance to any company considering where to locate a project.

Clustering — Companies from similar industries and/or that are suppliers of one another tend to be located in close proximity to one another. This clustering effect creates a more collaborative environment, reduces transportation costs, and leverages an experienced work force.

Quality of life — An examination of the quality-of-life factors (parks, schools, neighborhoods, arts/cultural and sports amenities, recreational opportunities, etc.) can also be an important part of the process. This is more important when a company is considering the relocation of team members to the community where the project will be located.

Tax and regulatory environments — Corporate and personal income tax rates, sales and use taxes, property taxes, and permitting processes, timing, and costs should be analyzed and a comparison made between the new and existing sites under consideration.

While many locations offer similar tax structures, issues related to apportionment, throwback rules, and other factors can have a material impact on the company’s operating costs.

Availability for future expansion — It is vital to ensure that the company has room to grow, especially in circumstances where a company is going to locate a new facility due to the lack of space in an existing location. Companies do not want to put themselves in the same predicament that led to the need to locate a new facility in the first place.

Retention of current employee skills and knowledge — Are current employees being relocated to the new site? If so, what is the likelihood that the identified employees will agree to move, and what are the costs associated with the relocation? If not, does the new location offer a work force that has the skills and experience required to fill key positions?

Availability and usability of economic development incentives — Most locations offer economic development incentive programs that can help offset project and/or operating costs.

Depending on a company’s structure and tax liability, some programs may not offer any true economic benefit to the company

when offered by the governmental entity.

The advance preparation of a realistic business growth plan is crucial when evaluating the potential impact of economic development incentives. Key factors driving the use and value of incentive programs include capital investment, number of new and/or retained jobs, annual salary/hourly wage levels, and geographic location of the project. These will often drive the dollar amount value and terms of economic development incentives.

Cost and risk of business disruption — Any problems related to the relocation of people, equipment, and processes can result in a loss of revenue and customers. This factor must be thoroughly evaluated and planned for to ensure that there is very little to no impact to customers or the business.

Ultimately, a business must rank these factors in order of importance and then compare each potential community against those rankings. This helps the company find a location that aligns with their values while meeting their cost and quality objectives.

CHOOSING TO EXPAND AT THE CURRENT LOCATION If there is available space to expand and the company’s operating experience has been positive in the current location, the process for the company usually is more streamlined. While it remains important to evaluate the key factors that affect a potential expansion project, there are fewer areas of concern at the beginning of the process. The continued support of the local community and state may be as important as anything else considered during the process.

If the decision is made to locate a new facility, both the area where the existing the facility is located and additional locations will be analyzed as part of the due diligence process. Whether moving in close proximity or far away, key criteria must be explored, analyzed, and evaluated to ensure that the company makes the best decision. These findings will help direct the location decision.

Engaging an experienced site selection advisor is often beneficial to the company and evaluation process. Not only will the site selector be able to provide and analyze the detailed data required for the areas under consideration, but he/she can also help negotiate the most favorable terms for the key issues in the different locations. Armed with this detailed analysis, a company

Formica facility, Cincinnati, Ohio

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will have a much better understanding of whether an expansion at the existing site or location of a new facility in a different geographic location makes sense.

CASE STUDY “A” A national logistics company in a Southeast state is looking to make a capital investment of more $20 million to a current facility where 700 people are employed. The workers are paid above industry wages and the company is highly

committed to local community service in an economically struggling area of the city.

Through negotiations, the representatives of the current city and state have agreed to provide an economic development incentives package of approximately $500,000.

The company, in its due diligence, has had incentives negotiated on its behalf in another city in an adjacent state that would still service the firm’s customer base. The alternative location agrees to an economic development package topping

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$7 million in incentives. The next step would be to break down the additional expenses that the company would incur if it chooses to move to the new location.

These would include not only the obvious expenses of the physical move, but also the expense of disposing of the existing property, potential severance to displaced workers or relocation of key employees, the acquisition of new property and equipment, the recruitment and training of new employees, as well as negotiating release from or repayment of any existing economic development incentives that may already be in place. Many factors should be examined in order to find out the “real” difference between the offer of $500,000 in the existing location and the $7.2 million in the potential new location.

Formica enlisted Ginovus to evaluate locations outside of its current location in the Cincinnati MSA in preparation for an expansion of its current engineering, manufacturing, and distribution facility.

Ginovus thoroughly investigated and prepared a detailed analysis of multiple factors comparing the opportunity to expand at Formica’s current location or to construct a new facility in the Carolinas.

Having a consulting firm spearhead this process allowed Formica executives to stay focused on business operations and be able to make facility expansion and relocation decisions based on thorough and complete information.

Ultimately, Formica chose to stay and expand at its current Ohio location. Due to the diligence of the investigation and the cooperative nature of local and state economic development groups, Formica made a significant capital investment in its expansion project and created approximately 95 new jobs.

Both an expansion at a current site or the siting of a new facility in a different location present challenges and opportunities. Going into the process with eyes wide open, the right internal and external project team, and key objectives identified at the outset will position the company for an excellent outcome. No one business is the same as the next, nor are the criteria they use to make their decisions.

Due diligence and a thorough understanding of the options will allow companies to make the best decision for their respective projects.

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EcommerceMorrisFrei

12/19/13

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DISTRIBUTION/LOGISTICS

E-Commerce Changes Logistics and Incentives Landscape The evolution of the e-commerce channel will have an ongoing impact on distribution facilities and those markets with the required infrastructure and incentives that e-commerce companies seek.

By John Morris, SIOR, Industrial Services Lead for the Americas; and Alex Frei, Business Incentives Practice, Global Business Consulting; Cushman & Wakefield

giants as Amazon or for such multi-channel retailers as Wal-Mart, Target, and Nordstrom. It is interesting that, in an economy where growth is generally characterized as limited, the amount of real estate being developed and leased is so high. The increasing requirements are not so much about a boost in consumption, but rather a change in how we buy and what we expect from the experience.

E

-commerce is changing retailing and, by extension, associated retail and industrial real estate. The changes go beyond the evolution of the traditional storefront to the very core of our industry — the supply chain and the facilities supporting it. Indeed, e-commerce as a percentage of the retail pie had grown from almost nothing to nearly 5 percent in 2012, a percentage that is expected to continue to grow in the years ahead.

While 5 percent may not seem like much, “retail” includes the purchase of such big-ticket products as automobiles and other durables — anything classified as such.

But digging deeper into products with a larger impact on the warehouse/distribution supply chain — a category called GAFO, the classification for general merchandise — Internet and catalog sales now comprise more than 25 percent, according to the latest figures.

The number of new warehouse projects — either exclusively or significantly catering to electronic fulfillment — has increased dramatically for real estate service providers. That includes projects designated strictly for such e-commerce

The New Generation Warehouse The definition of the “ideal” distribution center is a fast-moving target. To begin with, the new generation warehouse is measurably different in a physical sense, and older spaces are difficult to retrofit for the e-commerce channel. For example the latter requires a higher cube: 32 feet is often the bare minimum, and there is growing interest in 36- to 40-foot clear ceiling heights.

This new generation warehouse is also far more automated, requiring more of what are termed “pick faces.”

In other words, it is required to have more items available for the interface between the warehouse worker and the items being “picked” to fulfill an order.

This new generation warehouse is not just about pallets, but also about reaches and cases. A certain percentage of a building will still be utilized for storage, but for electronic fulfillment, a substantially bigger percent of the space will be needed to pick and less to store.

The number of dock doors per square foot will also be greater to facilitate shipping more, but smaller orders, more frequently. Also, a higher number of car parking spaces is expected to be necessary to meet the manpower needs for e-commerce, as the handling per item is higher. E-commerce is a substantially greater job creator relative to traditional warehousing/distribution, at least at this time.

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Site Selection Needs When it comes to site selection needs, warehouses significantly utilized for e-commerce require closer proximity to population centers, aligning with such issues as the growing urbanization and higher levels of service sought and fostered by a younger generation of consumers. E-commerce orders are increasingly destined for urban consumption, and the remote, less costly locations favored for traditional warehouses used for bulk shipment aren’t always ideal for this new use.

For modern product distribution, the mantra “pallets to stores” is now “boxes to doors,” a reference to the fact that a growing percentage of what people buy is shipped directly to homes one item at a time, bypassing the retail store.

With the increased automation and changing building specifications, and the need to locate on more expensive real estate near urban centers, the facilities themselves have become more capital-intensive. Given this trend, e-commerce companies will increasingly focus on ways to offset one-time and recurring project costs; this is often accomplished through the procurement of economic development incentives provided by state and local governments.

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the capital- and headcount-intensive nature of the projects. Hence, ramping up state and local economic development efforts to attract these projects has increased significantly over the last few years.

An important form of assistance for e-commerce facilities is the work force development assistance that a state and local government can provide to recruit, screen, and train the local work force to match the skill sets necessary to operate an efficient operation. Work

ed for such operations. As a result, many e-commerce projects require new construction, i.e., build-to-suit. These projects generally provide net new fiscal impacts to a state and local community in the form of sales tax, real property tax, personal property tax, and inventory tax, among others, depending on the location. Because of the net new fiscal impacts generated by an ecommerce project, communities may choose to be more business-friendly in providing incentives to help mitigate new taxes generated by a project, which would still provide the state and local community with net new revenue attributed to the project.

In more businessfriendly communities, sales tax sharing agreements are a compelling way to attract e-commerce projects. Indeed, if a sales tax is generated at the e-commerce facility, select communities have the discretion of sharing a percentage of the local sales tax attributed to the e-commerce company. Many e-commerce facilities tend to have large sales volumes, thus the benefits can be significant. Therefore, a sales tax sharing agreement can be a real differencemaker when it comes to selecting a location.

One caveat on sales taxes attributed to e-commerce: the issue of how to tax online sales continues to be inconsistent across the country and has become more and more complicated. The debate around online-sales tax is often referred to as the “Amazon tax” after the giant online retailer. In simple and general terms, for a business to be subject to a sales tax, a number of conditions have to be triggered, among them something called nexus. For example, if a retailer has a bricks-and-mortar store in a particular community, the business has a clear nexus to that community and would be required to collect and pay a sales tax. Establishing nexus for online retailers, however, is more complicated because they generally do not have a bricks-and-mortar presence. As a result, a few states have decided to interpret their specific sales

Siting e-commerce operations closer to evolving target markets has created new distribution hubs. force development incentives create an ideal public-private mechanism through which state and local entities share in training costs with a particular employer. The training that the employer requires helps to educate the existing work force, thus enhancing its qualifications and positioning it for future projects requiring similar skill sets. Worker credentials are important for an e-commerce facility because of the very nature of the advanced technology typically utilized to operate such facilities.

Tax Incentives Job Creation & Work Force Training State and local economic development efforts are focused not only on growing the existing labor force organically, but also on providing opportunities for new jobs to the existing work force. Given that many areas across the country continue to have record unemployment and underemployment levels, the urgency to attract quality employers to these areas has never been more critical.

The recent dynamic of siting e-commerce operations closer to evolving target markets has created new distribution hubs in areas that were previously not considered; as a result, these operations are sometimes among the largest employers in those areas, given

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Indeed, while many economic development incentive programs target job creation — and this new generation warehouse does create more jobs as compared to a traditional warehouse/distribution facility — incentive programs aimed at attracting large capital-investment projects, e.g., investment tax credits, will also continue to be of importance. The potential benefits to a project in terms of tax credits depends on the structure of the credit (i.e., refundable, salable, carryforward provisions, etc.) and on the actual state and local income apportionment methodology.

Given the specific real estate requirements of e-commerce facilities, many markets do not have existing real estate product that would be best suitFOR FREE SITE INFORMATION, CALL

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tax code definitions of nexus to include online sales even for those businesses that don’t have a bricks-and-mortar presence in their state.

Infrastructure Improvements & Entitlement Zones Real estate improvements in new markets also create an opportunity to improve the public infrastructure (e.g., road, rail, utilities, public services) leading to a site by tapping into federal grants or state department of transportation funding, which target project-related activities. The intent of infrastructure incentives is to improve, expand, or refurbish a site’s infrastructure from which the public can benefit.

The site can then be positioned for further development, while providing the necessary amenities for a project to select that site.

Other potential economic development benefits can be derived from entitlement zones administered at the state level, notable because they typically provide benefits that would not

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be available to users outside of such a zone. Entitlement zones were established with the intent to drive businesses to distressed parts of a state in areas that are more rural in nature or have been hit by major industry shifts.

Select entitlement zone benefits, depending upon locale, can provide per-job tax credits for companies hiring people who actually live within the zone. Also, in those states that tax utilities, there may be opportunities to exempt that tax for a user, while other zones exempt the sales taxes on consumable materials.

Although economic development incentives are driven primarily by jobs, wages, and investment, some states do consider warehouse/distribution, i.e., e-commerce facilities, a targeted industry, which makes these facilities eligible to be considered for certain incentives that are unavailable to other industries.

Adding It Up How significant is the evolution of

e-commerce and its impact on the supply chain from a real estate standpoint? As an indicator, our firm’s involvement with several key clients in e-commerce real estate alone involved over 40 new facilities nationally in 2012, with many more coming online in 2013. Target, Wal-Mart, Nordstrom and others have current electronic fulfillment or e-commerce requirements in the market today, and their number is growing daily.

The evolution of the e-commerce channel will have an ongoing impact not only on the distribution facilities themselves from a construction and functional standpoint, but also on those markets with the prime locations, infrastructure, and incentives that e-commerce companies seek to remain competitive. It is anticipated that developers and engineers, as well as states and communities, will continue to ramp up the programs they offer to support a growing and increasingly competitive landscape for this evolutionary business.

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INCENTIVES

The True Value of Economic Development Incentives Companies need to determine which incentives are of most value to them and also make sure they are utilizing all the incentives to which they are entitled.

By Grant Miller, Vice President; and Don Moss, Vice President; Colliers International, Charlotte

STA TE T AX CRE DIT S

Navigating the Complex World of Incentives For a company representative selected to assist with the site selection process, there can be an immense learning curve in navigating the world of economic development incentives and the value of the incentive. States and communities are constantly altering their incentive policies in relation to investment thresholds, number of jobs created, site location, and type of business. For those involved in the process on an infrequent basis, the wheel is essentially rein-

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vented each time the process begins.

In most cases, companies will use the cash incentives, property tax rebates, or property tax reductions granted to them depending on the complexity of reporting.

Due to this complexity, many smaller companies are not staffed to take advantage of the incentives offered.

Another problem is that the personnel assigned to select the site and work with the states and localities are, in many cases, not the same personnel who will manage the facility during its operational stage. In these cases, there is no continuity in understanding what reporting is expected. Many reporting deadlines are often overlooked, which results in missed or delayed grant payments. In the extreme cases, companies can be disqualified for grants obtained due to filing deadlines being missed or extensions filed for delays in meeting target employment and investment requirements.

STA TE-P ROV IDED WO RKF ORC E TR AIN ING

A

s site selection specialists, we continually work with companies seeking locations where economic development incentives play a part in the location decision-making process. Incentives, right or wrong, will continue to be a point of contention; but, until they end, companies will continue to pursue and allow them to be a part of this process.

Economic development incentives come in many different forms and each state, town, and municipality administers them in various ways. Incentives can be provided via cash grants, property tax abatements, sales tax exemptions, utility rate reductions, infrastructure grants, fee waivers, port tax credits, state tax credits, building reuse/redevelopment grants, and fee waivers.

The real question is — are companies utilizing the true value of the incentives that have been awarded to them? Obviously, the low-hanging fruits are being used sufficiently — upfront cash grants and building reuse/redevelopment grants. Not so obvious is the fact that companies are disregarding the incentives that require a little more paperwork and reporting once the incentives have been declared and years after the initial announcement. Too often, companies are putting ongoing reporting at the bottom of their lists of priorities.

Underutilized Incentives With the myriad of grants, abatements, credits, or incentives available, are companies truly utilizing the value of what they have been awarded?

Most companies will take advantage of grants that assist in new infrastructure, property tax reductions, payroll tax rebates, or reimbursements for building renovations. State income tax credits for both job creation and investment are more difficult for a corporation to fully utilize, unless they have a large corporate state tax liability. It is for this reason that many companies vastly underutilize these incentives.

Another example of an underutilized incentive is a tax credit for increased port volume/traffic. Depending on a compa-

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ny’s logistics pattern and preferred port location, it can be difficult to take advantage of the full value of this tax policy from states with port facilities.

One of the oldest and most valuable incentives now offered by most states is the recruitment tools through the state’s employment office and training through the local community or technical college.

Many companies use these tools but do not take full advantage of the value and cost savings that can be achieved through these educational institutions. Through our site selection activities, we have found that most representatives of these organizations want to push companies into a model of “one size fits all.” This can result in the company not receiving the full training assistance it was promised or being offered programs that contribute minimal value to the organization.

Completion and timely filing of paperwork determines whether companies receive all the grant dollars promised during a location announcement.

Incentives Administration Do companies understand what needs to be completed in terms of incentives administration long after the project has been announced?

The completion and timely filing of paperwork determines whether companies successfully receive all grant dollars promised during a location announcement. This task is not as difficult for a company undergoing a major expansion, as they already have the personnel in place to track and report the required information for a city, county, or state. However, for a plant that is new to a community, the proper and timely filing of the required forms can be a daunting task. In many cases, plant management has to design and implement an internal tracking system to insure that the information requested by local and state governmental bodies is reported correctly.

bridge the gap when a buyer and seller cannot find common ground with the final sales price.

Many companies have found ways to reduce their corporate tax liabilities without the use of state tax credits. Therefore, those programs are used to effectively reduce the corporate tax rate of the state.

Prioritizing Incentives

What are the top incentives for any company?

The top incentives for any company are a building renovation cash grant, payroll tax reimbursement payment, property tax rebate or reduction, and utility rate reduction during the first several years of operation. State tax credit programs are often unused or underutilized by most companies because of a small corporate tax liability or the complexity of understanding how the programs operate.

Should a company be considering a future move or expansion and want incentives to be a part of the decision-making process, it is imperative that it understands what exactly it is getting when the proposal is made. Sometimes the proposal sounds better than what it looks like on paper.

Sherman Works

Determining Value What incentives create the most value for the company?

The old saying is true when it comes to incentives, “Cash is king.” While many states offer tax credits, these ultimately produce little value to a company. The start-up period of a new operation is where a cash incentive payment has the most value. While most communities and states are moving to a “pay for performance” model, the biggest transition point for a company is when a facility is being constructed or renovated and employees are being trained. This is where the incentives get the company officials’ attention. Cash goes a long way in assisting with new equipment purchases and site costs (i.e., grading and infrastructure improvements, to name a few).

Another valuable incentive is the building reuse/redevelopment cash grant. Many states offer a cash grant that will fund specific improvements to a facility a company is considering. Examples of these improvements include a new or upgraded sprinkler system, electrical system, or roof on the building. We have found that sometimes this incentive can

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SITE SELECTION

A More Focused Approach to the Industrial Location & Evaluation Process Digging through layers of information on the national and then local level is an arduous task for site selectors, but one that has been made easier through the use of GIS tools.

By Kevin Tilbury, AICP, and David Verner, RA, NCARB, Gresham, Smith and Partners

SITE SELECTION AT DIFFERENT SCALES

traditional site selection process can sometimes be overwhelming.

NATIONAL SCALE When considering where to locate their next facility, companies may first begin at a very broad scale. This could include a search of the entire country or region (Southeast, Midwest, etc.).

AT THIS SCALE, FACTORS TO CONSIDER INCLUDE:

Striking the Right Balance

• Proximity to market • Supply chain (access to suppliers and resources, etc.)

• Work force quality (education, training) • Industrial “tradition” • Labor market (prevailing wages, employment rates) • State economic/tax incentives

I

n the world of industrial site selection, the LOCAL SCALE old adage “locaOnce a company has decided on a specific location within the U.S., it may begin to examine individual sites. At a local tion is everything” scale, more specific factors come into play: has never been • Parcel size • Infrastructure more apt.

• Supply chain Companies recog(access to suppliers, etc.)

• Work force access/competition nize that being in • Access to transportation the right place — (highway, rail, port, etc.)

• Topography at the right time, • Environmental constraints nonetheless — is • Zoning/regulatory constraints essential to suc• Local economic/tax Incentives • Quality of Life cess. For any industrial client determining a location for a new facility, a successful and comprehensive site selection process is vital.

In the Q4 2013 issue of Area Development, economic development leader Courtney Dunbar discussed why it is crucial to forego assumptions regarding site preparedness and perform due diligence. She noted that because site selection timelines are much shorter now than they used to be, important factors and site attributes such as incentives, zoning policies, and optimal tract size are often overlooked. The fact of the matter is that most organizations direct a great deal of effort toward site selection but still struggle to properly evaluate all possible considerations. The list of criteria to be reviewed is seemingly endless, and the

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Before a company can dig down into the specifics of certain site options, it must first decide on a region, state, and community to locate its operations. It has to consider access to the market (clients, partners, and suppliers), access to infrastructure, and the available labor pool. The company wants a skilled work force that is capable of upholding its product quality and reputation. But it must also consider the cost of labor and the competition for that labor. If the firm selects a city with an abundance of workers but also an abundance of other manufacturing employers, it has to constantly worry about staff that could potentially be hired away. It’s all about striking the right balance.

To help make these decisions, many large industrial companies opt to hire consultants associated with large global organizations that also provide accounting, legal, or real estate services. These groups have extensive resources available to help determine an optimal location. But small- to medium-sized companies often don’t have the ability to spend six figures on their next location decision, so they

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utilize a more focused and personalized organization to assist them.

James Blair represents one such organization; he’s the managing director for GACC South Services, LLC, a for-profit subsidiary of the German American Chamber of Commerce of the Southern United States, Inc., which provides customized site selection services for European and particularly German companies seeking to establish a manufacturing presence in the United States. Considering the difficulty that even an American company faces when it comes to site selection, it’s easy to see how a foreign or international company would feel daunted.

The sheer size and scope of the U.S. means there are near limitless site options to consider, in both big cities and rural communities.

Analyzing Multiple Layers of Data “As a site selector, I’m dependent on states and communities across the country to provide me with good, accurate information regarding the sites they have available, the qualifications of their available work force, tax rates, incentives, and so forth,” says Blair. “Of course, these states and communities are working hard to attract new business, so they make a point to offer up highly competitive data. My biggest challenge is verification of their information; I have to weed out the superfluous marketing statistics and zoom in on the essential figures. When I present site options to my clients, I want to make sure I’ve performed due diligence and corroborated all of the facts.”

Now more than ever, geographic information systems (GIS) — like Area Development’s www.FastGIS.biz1 — can maximize results by streamlining the site selection process described by Blair. GIS provides the ability to quickly and efficiently consider multiple layers of data simultaneously to make well-informed and objective site decisions. As a result, users don’t need to rely exclusively on data supplied by individual communities, which are often subjective and less robust. This allows companies to be more proactive in scouting out potential sites and may

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present options they’d have never thought of otherwise.

The once-arduous process of evaluating an entire country’s viable locations becomes more about objective data analysis and less about legwork.

Users can prescribe very specific criteria for their site search. For instance, they can specify a site in a community where the work force is comprised of at least 25 percent manufacturing industry jobs but no more than 50 percent. They can specify a site that’s no more than 10 miles from a certain supplier or in a spot that’s no farther than a day’s drive from at least four clients.

Much of this relevant data is readily available from public sources, such as the U.S. Census, Department of Labor, and local governments. Moreover, GIS applications even make it possible to prioritize or assign extra “weight” to certain categories. For example, a user wants to find a flat parcel in a commu-

Companies recognize that being in the right place — at the right time, nonetheless — is essential to success. nity located close to a supplier, but feels that being located directly off the interstate is a non-negotiable; the analysis can be configured to assess data based on those priorities.

Selecting the Optimal Location Once the data for all available sites is analyzed — using the criteria specified by the user — a list could be generated that ranks sites based on their “score” — basically, how well each site matches the criteria. The sites with the best scores represent a short list of the best options. From there, the location team can evaluate those options and use other resources to help select the optimal site from the short list. The point is that an advanced GIS approach is designed to objectively and comprehensively identify the best possible candidate locations for industrial companies in the quickest and easiest way.

As a site selection tool, there are

limitless possibilities for GIS. The downside is that while some of the site selection data is readily available, certain information requires a more rigorous process of development. For that reason, it’s still important to work with a solid partner who has a good understanding of what important data might be missing. But as use of GIS becomes more widespread, the database of preexisting information continues to grow.

Its development and increased use means industrial companies are able to search for and evaluate sites more proactively, and thus are more likely to end up choosing the best possible location. It’s a fantastic way to save time and money, with the end result of improving long-term performance and growing the bottom line.

Kevin Tilbury, AICP, is a principal transportation planner at design and consulting firm Gresham, Smith and Partners. He coordinates GS&P’s firm-wide planning group, which integrates staff members from the planning, engineering, architecture, and landscape design disciplines.

Tilbury’s primary focus is on community and regional planning with an emphasis on integrating land use, transportation, and urban design for livable communities.

He can be reached at kevin_tilbury@gspnet.com.

David Verner, RA, NCARB, is a senior vice president in Gresham, Smith and Partners’ Industrial market. Known for working across industries — including advanced manufacturing, automotive, food processing, and life sciences, among others — Verner is well-versed in master planning, process flow, agency interface, economic development, and fast-track delivery. He has worked with clients from all over the world and has a demonstrated proficiency in building consensus among diverse stakeholders. He can be reached at david_verner@gspnet.com.

Note 1 FastGIS is a database solution developed by FastFacility LLC that provides custom designed and built GIS-driven database systems for economic developers. FastFacility.com is the nationally marketed free-access portal for available building and site listings. FastFacility LLC is a partnership between Area Development and Evince Corporation.

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2013

Gold & Silver SHOVEL AWARD

RECIPIENTS Shown here are nine of the recipients of Area Development’s 2013 Gold & Silver awards, which were bestowed in recognition of the states’ efforts to capture new facility and expansion projects that resulted in significant investment and job-creation. All told, 19 states were recognized for their efforts.

To read about all of these states and the projects that qualified them for the awards, go to www.areadevelopment.com/

Florida Secretary of Commerce Gray Swoope accepts the state’s Silver Shovel in the 10+ million population category.

shovel-pics.

Martin Briley, President/CEO of the Virginia Economic Development Partnership, holds the Silver Shovel in the 5+ to 10 million population category.

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Kansas Commerce Secretary Pat George (right) and Deputy Secretary of Business and Community Development Steve Kelly (left) hold the state’s Gold Shovel in the under 3 million population category.

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Alabama Secretary of Commerce Greg Canfield (left) and Governor Robert Bentley (right) pose with the state’s Gold Shovel in the 3+ to 5 million population category.

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Indiana Secretary of Commerce Victor P. Smith holds the Silver Shovel in the 5+ to 10 million population category.

Kentucky Governor Steve Beshear holds the state’s Silver Shovel in the 3+ to 5 million population category.

Pennsylvania Secretary C. Alan Walker (left) and Executive Deputy Secretary Rich Hudic (right) of the Department of Community and Economic Development display the state’s Silver Shovel in the 10+ million population category.

South Carolina Governor Nikki R. Haley poses with the state’s Silver Shovel in the 3+ to 5 million population category.

Georgia Governor Nathan Deal shows off the state’s Gold Shovel in the 5+ to 10 million population category.

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LEGISLATION/INCENTIVES

A Look Back — and Ahead — at the Legislative/Incentives Landscape States are embracing the competitive economic climate by introducing bigger and better economic incentives to attract the highest value industries.

By Jason Hickey, President, Hickey & Associates, LLC

A

s the U.S. economic engine built positive momentum in 2013, we witnessed state legislatures embracing a new competitive climate by developing and expanding public incentives to attract certain investments. These dynamic incentive programs have either been newly created, or extensively modified, to better fit the state’s particular approach. Following is a recap of major state legislative activities related to business incentives and economic development over the past year.

California — Governor Jerry Brown’s new budget plan effectively eliminated the Enterprise Zone program, which costs California $700 million in tax revenues each year. The new incentive package includes a manufacturing equipment sales tax exemption, a discretionary income tax incentive program, and a tax incentive for hiring economically disadvantaged California residents if the business is located in a high unemployment and high poverty area of the state. The programs are effective beginning January 1, 2014.

Florida — Governor Rick Scott signed into law House Bill 7007 adding oversight to the state’s economic incentives programs. Florida’s incentive programs are now up for review every three years by Florida’s Office of Economic and Demographic Research (EDR) and the Office of Program Policy Analysis and Government Accountability (OPPAGA). The new law mandates the compilation of all state and local tax incentives given to businesses for economic development in an online database. It also adds an accountability clause to applications for Wisconsin economic incentives and has Michi New York gan provisions for an independPennsylvania y ent return-on-investment jerse New calculator to analyze taxpayMaryland er-funded economic development projects. The bill also creMissouri arolina C ates a sales tax break for equipth r o N ment purchases by the state’s manufacturers for three years.

Mississippi Maryland — Governor Martin Flo O’Malley signed a bill establishing a rid a new job-training fund for targeted industries with high demand for skilled workers. Known as the

Arizona — The state has updated requirements for its Quality Jobs Tax Credit program. These changes include removal of a 400-job cap on credit claims, mandatory preapproval, a processing fee per job, and an update of timeline definitions to be more flexible in accordance with a company’s schedule.

Washington Oregon

Utah

Cal ifor n

Kansas

ia Arizona

New Mexico Texas

States with Updates

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Maryland Employment Advancement Right Now bill, or EARN, the legislation apportioned $2.5 million in annual grants for strategic industry partnerships of businesses, educational institutions, and government agencies to identify and develop new work force development strategies.

Oregon — Governor John Kitzhaber signed the Economic Impact Investment Act, which allows the Governor’s Office to enter into qualifying investment contracts with companies committing to a minimum of 500 jobs and $150 million in capital investment over a five-year period.

Michigan — Governor Rick Snyder signed the Workplace Fairness and Equity Act making Michigan the 24th state to approve right-to-work legislation. The legislation makes it illegal to require financial support of a union as a condition of employment. The bill covers all public and private workers, with the exception of police and firefighters, who are allowed to maintain closed shops.

Pennsylvania — Governor Tom Corbett signed the Keystone Works bill, which will help connect unemployed Pennsylvania residents with employers who are looking to fill open positions. Unemployed workers have the opportunity to receive training with an employer while continuing to receive unemployment compensation benefits. The law also provides employers an incentive to hire trainees once the training is complete.

Governor Corbett also signed the Promoting Employment Across Pennsylvania Act, which allows companies that create a minimum of 250 new jobs to keep 95 percent of the personal income tax paid by employees. The job creation must take place within a five-year period, with 100 jobs being created in the first two years. The employer may also pay the personal income tax withheld from its employees and then receive a rebate of that personal income tax from the state. The program allows a maximum of $5 million per company per year and will expire on January 1, 2018.

Mississippi — Governor Phil Bryant signed into law several financial incentives for energy-related economic development.

These include a sales tax exemption on energy used in manufacturing processes, a 25 percent rebate on energy-related research and development costs, a sales tax reduction on electricity for oil and gas produced in the state using carbon dioxide as a recovery agent, and an energy infrastructure revolving loan fund to finance gas lines and transmission lines.

Missouri — Governor Jay Nixon signed House Bill 184 and Bill 196 consolidating four THESE DYNAMIC INCENTIVE PROGRAMS of the state’s business incentives Wisconsin — The state has into the newly created Missouri initiated the Wisconsin Fast Works Program. The new proForward grant program for work gram is similar to the Missouri force training. Some $15 million Quality Jobs (MQJ) program in grants will be available to that it is replacing, but lowers support employer-led worker the job thresholds for businesstraining in a competitive application process. These grants es to qualify and gives more discretion to the Department of will be administered by the new Office of Skills Economic Development (DED). The legislation also consoliDevelopment (OSD) under the Department of Workforce dates Missouri’s current job training programs.

Development.

New Jersey — The New Jersey Economic Opportunity Act of 2013 was passed by the state’s legislature and signed A Look Ahead at 2014

by Governor Chris Christie. The act consolidates five ecoIncreased attention on transparency is ensuring an effecnomic development programs into two existing programs: tive return on investment for taxpayers, especially in an era the Grow New Jersey Program and the Economic of strict budget tightening around the country. Looking Redevelopment and Growth Program. The new programs toward an even stronger, more confident U.S. economy in will lower various existing threshold requirements to quali2014, we can only expect these trends to continue as states fy for incentives and allow more types of businesses and work to distinguish themselves from one another. Let’s take projects to access the incentives. Prevailing wage requirea look at what’s ahead. ments have also been removed.

The Grow New Jersey Program now offers broader incenKansas/Missouri — In a speech to the Greater Kansas tives and tax credits for businesses that invest capital and creCity Chamber of Commerce, Missouri Governor Jay Nixon ate or retain jobs in the state. The Economic Redevelopment called for an end to the “border war” with Kansas on ecoand Growth Program builds on the existing program to close nomic incentives, adding that they should be used to attract financing gaps and incentivize redevelopment efforts. new businesses to the area rather than simply relocating ones already there. Kansas Governor Sam Brownback has New Mexico — Governor Susana Martinez signed legissuggested a similar pact, though no formal agreement has lation to lower corporate income tax rates from 7.6 percent to been reached.

5.9 percent over a five-year period, starting in 2014. The corporate income tax rate will be phased in over 15 years, startNorth Carolina — Senate Bill 127, passed by the North ing in July 2015, with cities over 10,000 allowed to increase Carolina Senate, created North Carolina “prosperity zones” their gross receipt tax by 3/8 of a cent to compensate. in place of the partnership structure of economic develop-

have either been newly created, or extensively modified, to better fit the state’s particular approach.

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ment. If signed into law, approximately $483,000 in annual funding would be cut from regional partnerships in the state.

New Jersey — Additional incentives above the new Grow New Jersey Program have been proposed in the Senate under the New Jersey Economic Development Opportunity Act II, specifically addressing affordable housing, movie and television production, and the repurposing of hospital buildings for other uses. However, some of these elements do not have the full support of Governor Christie and passage is far from certain.

New York — Proposal One was passed in New York, allowing for Las Vegas-style casinos in the Empire State. The state will begin to solicit bids from international resort companies to begin the development of these casinos. A fee of $500 per machine would be required to be put into a problem-gambling fund managed by the state.

Governor Andrew Cuomo is also aggressively pushing the development of technology companies across New York by creating new tax-free zones (for up to 10 years) around university campuses via Start-Up NY, with other new incentives expected in 2014.

North Carolina — North Carolina is planning to eliminate all tax credits for film production beginning in January 2015.

We’re the

Texas — The Texas Film Commission is planning on extending its film production incentive programs for video game development.

Utah — The Utah legislature is poised to introduce economic development legislation related to science, technology, and research. The specific bill has yet to be released, but it is expected to create research and development hubs around state universities and build on existing STEM (science, technology, engineering, and mathematics) education.

Washington — Governor Jay Inslee signed into law the “Boeing Incentive Bill� after it was rushed through the Washington legislature. Some have been calling it the largest corporate incentive bill of all time, valued at $9 billion through 2040. Now, an additional $12.3 billion transportation proposal is also being considered in the Washington Senate as the state acts to hold onto Boeing’s 777x production and carbon fiber technology.

Hickey & Associates, LLC, is a global site selection, public incentive advisory, and work force solutions company. The firm specializes in market location, site selection, and public/private partnerships with active projects in the Americas, Asia, Europe, and Africa. For nearly 30 years, H&A has been assisting companies to locate, finance, and operate their businesses.

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MANAGEMENT/PLANNING

How to Develop a Successful Outsourcing Contract Outsourcing agreements crafted according to the 10 elements and five rules of “Vested” result in truly collaborative agreements and a win-win situation for the parties involved.

By Kate Vitasek, Faculty, Center for Executive Education, University of Tennessee; and Joe Tillman, Senior Researcher, SC Visions Ltd.

D

espite what you might glean from the news headlines, it is entirely possible for manufacturers and their suppliers to forge successful win-win business relationships. It takes some work and a willingness to abandon oldschool, transaction-based attitudes grounded in self-interest. The keys are communication, collaboration, and 10 steps designed to position the parties for long-term success. This is called the Vested business model — because everyone involved is vested in each other’s success.

The news headlines tell only a small part of the story; there’s much more to outsourcing than layoffs and foreign relocation, but it’s also true that outsourcing is facing complex and difficult challenges in the face of a sour global economy and the multiplicity of internal and external events that can — and do — disrupt the most carefully planned supply chains. Business happens, and if an outsourcing strategy is not flexible and nuanced enough to deal with that fact, then it’s time to change the way outsource contracts are negotiated and managed.

Five Rules of Vested

3 2

Have clearly defined and measurable outcomes.

Use an innovative pricing model with incentives.

Focus on the what, not the how.

1 Focus on outcomes not transactions.

4

Win/Win WIIFWe Business Relationship

5 Employ a governance structure based on insight, not oversight.

Contracts Steeped in Mutual Advantage In 1968 legal scholar Ian R. Macneil observed that most contracts are illequipped to address the reality of business needs. In Contracts: Instruments for Social Cooperation1, Macneil wrote, “Somewhere along the line of increasing duration and complexity [the contract] escapes the traditional legal model.” He argued that contracts are rooted in the classical approach to contract law, and thus crafted to address transactions and legal protections such as pricing and price changes, service levels, limitation of liability, indemnification, and liquidated damages.

Those classical approaches to contract law are still around. An April 2010 study by the International Association of Contracting and Commercial Management (IACCM) concluded that contract terms remain mired in the classical legal approach of contract law, which focuses almost exclusively and hierarchically on pricing, limiting liability, indemnification, service and transaction levels, risk mitigation, and liquidated damages.2 An example: a common mistake companies make in outsourcing today is that they create detailed statements of work (SOWs) and then strictly define the work to be done. This handcuffs their suppliers’ or service providers’ innovation and flexibility. A flexible approach and agreement AREA DEVELOPMENT | 2014 Annual Directory

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That vision and alignment framework is needed, one that forms the basis of a the Nobel laureate Oliver “Statement of Intent” drafted Williamson suggests is highly Rule 1: Outcome-Based vs. Transaction-Based Business Model by the outsourcing teams. adjustable or adaptable, rather Element 1 Business model map than one that prescriptively Element 2 Shared vision statement and statement of intent RULE #2: Focus on the outlines detailed transactions, Rule 2: Focus on the WHAT, not the HOW What, Not the How rigid terms and conditions, Element 3 Statement of objectives/workload allocation Element 3: Statement of SOWs, and working relations.3 objectives/workload allocaUniversity of Tennessee Rule 3: Clearly Defined and Measurable Desired Outcomes tion — This element lays the researchers set out to find a Element 4 Top-level desired outcomes foundation for the businesses better way to develop outElement 5 Performance management to do what they do best. source agreements and their Rule 4: Pricing Model Incentives Are Optimized for Depending on the scope of research led them to study Cost/Service Tradeoffs the partnership, the company some of the most successful Element 6 Pricing model and incentives transfers some or all of the outsourcing agreements for activities needed to accommanufacturer supply chains, Rule 5: Insight vs. Oversight Governance Structure plish agreement goals to the IT agreements, and governElement 7 Relationship management supplier/service provider. ment-private sector enterprisElement 8 Transformation management Element 9 Exit management Together they develop a es, such as bridge construction.

Element 10 Special concerns and external requirements statement of objectives This research found that suc(SOO), which is very differcessful agreements operate difent from a standard SOW. This is a right road to the desired destination: a ferently — they move away from travital distinction: A SOO describes successful, long-term business relationditional buy-sell arm’s length conintended results, not tasks. Based on ship. These 10 elements are keyed to tracts. Researchers coined the the SOO, a service provider will draft a implementing Vested’s “Five Rules” as approach of these successful deals performance work statement that shown in the accompanying chart.

“Vested Outsourcing,” or Vested defines in more detail the work to be (http://www.vestedway.com/) performed and the results expected because buyers and sellers collaboraVESTED’S FIVE RULES from that work. tively crafted contracts that were Let’s take a closer look at the rules: steeped in mutual advantage, binding RULE #1: Focus on Outcomes, RULE #3: Clearly Defined and each party to a win-win approach.

Not Transactions Measurable Outcomes The Vested approach requires the Element 1: Business model map — Element 4: Top-level desired parties to jointly build a solid, cooperThis first step is to understand and outcomes — To have an effective, sucative foundation for sharing value. document an outsourcing business cessful Vested relationship, the parties Progressive and highly integrated model. It is vital to map potential outmust work together to define and outcome-based business models use comes. The map will reveal how well quantify desired outcomes. This elevalue incentives to maintain mutual the parties are aligned to each other’s ment is the centerpiece of the whole advantage. goals, and will pinpoint the transacenterprise because without mutually tions of value between the parties, defined desired outcomes in place, the leading logically to collaboration, loy10 Elements of a Vested Vested approach cannot move forward. alty and mutual satisfaction, market Outsourcing Agreement Outcomes are expressed in terms of a share, and sustainable profit. Element So what are the 10 steps, or elelimited set of high-level metrics. It is 1 also fashions a culture in which the ments, that go into crafting a Vested imperative that the parties spend time company and the service provider business agreement? University of — jointly and collaboratively — during maximize profits by working together Tennessee’s Center for Executive the outsourcing transition, and particumore efficiently, no matter who is Education teamed with the larly during agreement negotiations, to doing the activity.

International Association of Contract define exactly how relationship success Element 2: Shared vision and and Commercial Management on The is measured. Once the desired outstatement of intent — With the busiVested Outsourcing Manual — a stepcomes are stipulated, the supplier proness model understood and mapped, by-step guide for developing collaboposes a solution that will deliver the the parties then work together on a rative business-to-business agreements required level of performance at a prejoint vision that will guide them for the and working rules that will facilitate determined price. duration of their relationship. A coopsuccessful and long-lasting business Element 5: Performance manageerative and collaborative mindset relationships based on mutually ment — Once desired outcomes, stateopens a conversation: The companies desired outcomes. ments of intent, and SOOs are in place share what is needed, admit to gaps in The manual details 10 elements to and the agreement is implemented, capability, and each aims to focus on include when developing an outsource the parties then measure performance the benefits that the other party can contract. Think of the elements as signto determine if the goals are achieved. bring to enhance any gaps in capability. posts directing the parties along the

10 Elements of a Vested Agreement

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These include high-level performance management measures that are easily understood by business stakeholders and all parties involved in the process.

The metrics will help align performance to strategy.

RULE #4: Optimize Pricing Model Incentives Element 6: Pricing model and incentives — The parties must have a properly structured pricing model that incorporates incentives for the best cost and service trade-off. The approach of many procurement professionals to outsourcing is perennially stuck on one thing: getting the lowest possible service and labor pricing. The strategic bet — and paradigm shift — of Vested is that the supplier or service provider’s profitability is directly tied to meeting the mutually agreed upon desired outcomes. Inherent in this model is a reward for service providers to invest in process, service, or associated product that will generate returns in excess of agreement requirements. Obviously higher profits are not guaranteed, but this element provides service providers with the authority and autonomy to make strategic investments in processes and product reliability that can generate more value and a greater return on investment than a conventional costplus or fixed-price-per-transaction agreement might yield.

Incentives are a key component of this mix because service providers are taking on risk to generate larger returns on investment. An incentives package delivers the most commercially efficient method of maintaining equitable margins for all parties for the duration of the relationship.

Pricing models that use margin matching are recommended for use in this type of relationship. The margin matching method is used to adjust pricing points by establishing trigger points that reset prices when that point is met. For example, the inflation rate might be a trigger point for resetting inventory carrying cost charges.

RULE #5: Insight Vs. Oversight Governance Structure Element 7: Relationship management — A relationship management

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structure creates joint policies that emphasize the importance of building collaborative working relationships, attitudes, and behaviors. The four elements associated with Rule 5 provide the tools for parties to manage and operate their agreement. The parties monitor the agreement within the framework of a flexible governance structure that provides top-to-bottom insights into what is happening. Vested is not based on transaction counting!

Element 8: Transformation management — This is a new relationship model — people and company ecosystems are changing; the parties are doing things differently and probably not operating in familiar comfort zones. Managing this transformation, including transitioning from old to new — along with change management once the new agreement is up and running — is often difficult and complex to implement. It is imperative to preserve as much continuity as possible among personnel and teams as the transition progresses into day-today implementation and operation.

The focus here is on end-to-end business metrics, mutual accountability for the desired outcomes, and the creation of a culture that rewards innovation, agility, and continuous improvement.

Element 9: Exit management — Sometimes the best plan simply does not work out or is trumped by unexpected events. Business happens, and companies should have a plan when assumptions change. An exit management strategy can provide a template to handle future unknowns. The goal is to establish a fair plan and to keep the parties whole in the event of a separation when the separation is not a result of poor performance.

Element 10: Special concerns and external requirements — Governance frameworks are not one-size-fits-all, especially in more technical or complex relationships. The final element recognizes that agreements are different and that many companies and service providers must understand and adhere to special requirements and regulatory protocols. Thus, a governance framework may need to include additional provisions that address specific market, local, regional, and national requirements. For

instance, in supplier and supply chain relationships involving information technology and intellectual property, security concerns may necessitate special governance provisions outside the normal manufacturer-supplier relationship. Supply chain finance and transportation management are other areas that often require special handling under the parties’ specific governance framework.

In Sum Developing a business or outsourcing agreement using Vested’s Five Rules and the 10 Elements is much more than delivering a higher level of service on a given activity, a blur of metrics, or simply counting transactions or filling seats more cheaply. The 10 elements enable progressive companies to change their mindset and challenge old-school approaches by establishing a dynamic, modern business-tobusiness agreement. By developing outsource agreements that include the 10 elements, firms learn by doing and transition their thinking from the adversarial to the truly collaborative.

They move beyond simply paying lip service to “collaboration” and “partnership” to creating a win-win agreement and a shared-value atmosphere that drives transformative change.

Kate Vitasek (kvitasek@utk.edu) is a faculty member at the University of Tennessee’s Center for Executive Education and is author of the popular books Vested Outsourcing: Five Rules That Will Transform Outsourcing and The Vested Outsourcing Manual.

Joe Tillman (joseph_tillman @scvisions.com) is a senior researcher with SC Visions, specializing in supply chain strategy and performance management. His interest in all things supply chain finds him authoring articles for industry publications; acting as a subject matter expert for APQC; and leading the WERC’s annual benchmarking study “DC Measures.”

Notes 1 Ian R Macneil, Contracts: Instruments for Social Cooperation (Hackensack, NJ: F. B. Rothman, 1968).

2 “Contract Negotiations Continue to Undermine Value,” International Association of Contracting and Commercial Management, Ninth Annual Top Ten Terms Report, April 2010.

3 Oliver E. Williamson, “Outsourcing: Transaction Cost Economics and Supply Chain Management,” Journal of Supply Chain Management 44, no. 2 (2008): 5–16.

AREA DEVELOPMENT | 2014 Annual Directory

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FacilityLocations.com

Find the Right Location for Your Next Business Site, Facility or Headquarters FacilityLocations is a GIS map-driven, online economic development directory used to research potential locations during the business re-location or expansion process.

Discover Search and identify potential site and facility locations within big, easy-to-navigate, GIS-driven maps

Research Drill-down into location profile pages: • Google Streetview and Bing Bird’s Eye Imagery • Heat Maps and Data Layers • Downloadable Point-and-Click Radius Demographics Reports • Available Property Listings and Key RE Assets

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Page 35

2014 Annual Directory Index to Regional Reviews & State Information/Listings 36, 92 NEW ENGLAND

54, 93 PLAINS

72, 93 SOUTHWEST

Connecticut Maine Massachusetts New Hampshire Rhode Island Vermont

Kansas Nebraska North Dakota South Dakota

Arizona New Mexico Oklahoma Texas

58, 93 SOUTH

79, 94 MOUNTAIN

Alabama Arkansas Kentucky Louisiana Mississippi Tennessee

Colorado Idaho Montana Nevada Utah Wyoming

65, 93 SOUTH ATLANTIC

83, 94 PACIFIC

Florida Georgia North Carolina South Carolina Virginia West Virginia

Alaska California Hawaii Oregon Washington

40, 92 MID-ATLANTIC Delaware Maryland New Jersey New York Pennsylvania

45, 92 MIDWEST Illinois Indiana Iowa Michigan Minnesota Missouri Ohio Wisconsin

87, 95 CANADA 91, 95 MEXICO

For STATE CONTACTS and contact information on all SELECT SITES

SEE THE LISTINGS BEGINNING ON PAGE 92 after the Regional Reviews and State Information.

Visit

for SELECT SITES profiles and links.

This directory is organized by region and states within each region. Information on each state’s demographics, right-to-work status, traditional/expanding industries, and basic business taxes — plus a chart containing detailed manufacturing employment data — can be found on the pages that follow.

Following all the regional/state information are the listings for the state-level contacts and for all of the Select Sites — also organized regionally. These are the organizations that are advertising in this issue. Web and e-mail addresses are included for these listings within this directory, as well as on the web/ad index page in the back of the magazine. More detailed information on all of the Select Sites — as well as contacts for an additional 6,000+ economic development agencies — can be accessed on www.FacilityLocations.com.

Every effort has been made to include the most active economic development organizations so that www.FacilityLocations.com will be a useful source of information on all areas of the United States as well as Canada, Mexico, other nations of the Americas, Europe, and around the global. Listings for site selection consultants are also provided in our online directory — www.FacilityLocations.com. All of these organizations can help with your site selection needs.

NOTE: IF YOU ARE AN ECONOMIC DEVELOPER AND YOUR ORGANIZATION IS NOT LISTED ON CONTACT MSHEA@AREADEVELOPMENT.COM.

WWW.FACILITYLOCATIONS.COM,

AREA DEVELOPMENT | 2014 Annual Directory

35

NewEngland

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Page 36

NEW ENGLAND Connecticut

Maine

Massachusetts

New Hampshire

Incentives Attracting Firms to the New England States New England offers a revolutionary spirit driving growth through innovation, higher education, trade, and commerce.

SPURRING INNOVATION Massachusetts is selling itself not only as a global innovation hub, but is also forging links with other countries that open trade opportunities for Massachusetts’ businesses.

In October, the Massachusetts Technology Collaborative (MassTech) — a public agency that collaborates across industry, academia, and government — formed a strategic alliance with Medic@lps of Grenoble, France, to spur international collaboration around health IT. In August, MassTech also launched a program with the Israeli Industry Center for R&D (MATIMOP) that will offer grants to eligible applicants to spur cross-nation innovation in health IT. Connections are also being forged between Canada and Massachusetts via the MassachusettsCanadian Innovation Partnership. In October, Governor Deval Patrick met with officials and business leaders in Canada to discuss ways to strengthen ties in the clean-tech, innovation, digital health, financial services, digital gaming, life sciences, and academic sectors.

Healthcare is one of six key clusters on which Connecticut is focusing.

The others are financial services and insurance,

36

advanced manufacturing, digital media, green technology, and tourism. The state’s recently passed Bioscience Innovation Act establishes a $200 million fund to strengthen Connecticut’s bioscience sector over 10 years. The act also provides for strategic support to entities such as the state’s Jackson Laboratory for Genomic Medicine (JAX).

A quasi-state organization, Connecticut Innovations (CI), is funded with $250 million and is charged with attracting high-tech companies from other states, investing in start-ups, and building innovation centers across Connecticut where entrepreneurs can commercialize their ideas. CI leverages state dollars to encourage private investment in earlystage companies.

INVESTING IN SUSTAINABLE ENERGY Vermont is fostering sustainable energy by offering new sources of financing.

The Vermont Sustainable Energy Loan Fund “will provide a strong impetus to the many Vermont businesses and farms of all sizes that seek to invest in their energy futures in sustainable ways, lower their carbon footprints, and increase their bottom lines,” said Vermont Economic Development Authority (VEDA) CEO Jo Bradley. The fund will also provide loan guarantees to participating financial institutions that enroll loans made to businesses to improve overall energy efficiency.

In recent years, VEDA has approved millions of dollars in financing for commercial and agricultural energy-generation and efficiency projects, supporting investments in hydropower, solar photovoltaic, wind, digester, and biomass initiatives. The new fund improves VEDA operational efficiencies by consolidating all its energy lending under a single umbrella.

STATE

POPULATION

LABOR FORCE

Connecticut

3,590,347

1,851,700

(2012)

(August 2013)

Maine

1,329,192

Massachusetts 6,646,144 New Hampshire Rhode Island Vermont

AREA DEVELOPMENT | 2014 Annual Directory

Rhode Island

706,200 (Sept. 2012)

1,324,575

744,200

(2010)

1,052,567

552,200

(2010 estimate)

(Aug. 2013)

626,011

351,850

(2012 Census estimate)

(Aug. 2013 Dept of Labor)

FOR FREE SITE INFORMATION, CALL

FOSTERING JOB CREATION The New England States are also utilizing incentives to foster job creation. In Connecticut, the First Five job creation initiative provides incentives for businesses that create a minimum of 200 new, full-time jobs within the next two years, or 200 new, full-time jobs in the state within five years, depending on the size of their investment.

NBC Sports Group took

RIGHT TO WORK Connecticut Maine Massachusetts New Hampshire Rhode Island Vermont

No No No No No No

COLLEGE GRADUATES (Age 25 and over)* Connecticut Maine Massachusetts New Hampshire Rhode Island Vermont

35.6% 26.9% 38.2% 32.0% 30.5% 33.1%

*Bachelor’s degree or higher; U.S. Census Bureau, ACS, 2009

CONNECTICUT Principal Manufacturing Industries (Percentage of Employment)

25.5%

Transportation Equipment

17.7%

Fabricated Metal Products Machinery Computer & Electronic Products Chemicals Other Manufacturing Industries

3,461,400

(2012 Census)

Vermont

8.8% 7.9% 6.9% 33.2%

800-735-2732, EXT. 225, OR VISIT US ONLINE AT WWW.AREADEVELOPMENT.COM

NewEngland

12/23/13

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advantage of the initiative by consolidating four former sites in three Northeast States into new studios and offices in the 32-acre former Stamford Clairol factory. Sealing the deal was a low-interest $20 million loan from the state, which is forgivable if NBC Sports meets its job creation target to hire 450 employees and invest at least $100 million.

New Hampshire is working to develop a pipeline of skilled workers for the innovation economy. In October, Governor Maggie Hassan announced the state’s latest round of job training grants to New Hampshire companies.

“New Hampshire’s Job Training Fund is a valuable resource that has helped provide essential skills to thousands of workers,” she notes. “We must maintain our commitment to higher education and job training in order to attract innovative businesses, help existing companies grow, and support the creation of good jobs for New Hampshire’s middle class families.”

Page 37

TAX AND OTHER INCENTIVES Companies operating in Maine can greatly reduce or virtually eliminate state taxes for up to 10 years under the Pine Tree Development Zone (PTDZ) program. To qualify, companies must create new, quality jobs in certain business sectors or move existing jobs in those sectors to Maine. Eligible sectors are biotechnology, aquaculture and marine technology,

NEW HAMPSHIRE

RHODE ISLAND

MAINE Principal Manufacturing Industries

Principal Manufacturing Industries

(Percentage of Employment)

(Percentage of Employment)

16.0%

13.9%

14.0% 11.0% 10.0% 7.0% 5.0% 5.0% 4.0% 4.0% 3.0% 21.0%

Principal Manufacturing Industries

Transportation Equipment Paper Products

9.3%

Food Manufacturing Fabricated Metal Products Wood Products Computer & Electrical Products Machinery Manufacturing Chemical Manufacturing Leather Products Printing & Related Support Activities Other Manufacturing Industries

16.2% 9.8% 7.6% 7.4% 6.8% 4.8% 4.4% 4.1% 18.7%

Electrical Machinery & Electronics Equipment Machinery (Except Electrical) Professional, Scientific, & Controlling Instruments Fabricated Metal Products Rubber & Miscellaneous Plastic Products Printing, Publishing, & Allied Industries Primary Metal Industries Paper Manufacturing Lumber & Wood Products Other Manufacturing Industries

MASSACHUSETTS

FOR INFORMATION ABOUT RECENT BUSINESS LOCATIONS/EXPANSIONS IN THESE STATES GO TO w w w. A r e a D e v e l o p m e n t . c o m / N e w s I t e m s

5.9% 5.6% 4.1% 3.7% 3.4% 3.2% 3.1%

22.4%

Principal Manufacturing Industries

Transportation Equipment Food Chemicals Plastic & Rubber Products Textile Mills Machinery Printing & Related Support Activities Primary Metals Paper Furniture & Related Products Electrical Equipment & Appliances Other Manufacturing Industries

(Percentage of Employment)

22.8% 12.7% 9.3% 7.1% 6.6% 5.2% 4.8%

Computer & Electronic Products Fabricated Metal Products Food Machinery Chemicals Transportation Equipment Plastics & Rubber Products

4.7%

Printing & Related Support Activities

3.8%

Electrical Equipment & Appliances Other Manufacturing Industries

22.9%

BUSINESS LOCATION TRACKER

7.3% 7.2%

3.0%

(Percentage of Employment)

20.2%

7.9%

Fabricated Metal Products Computer & Electronic Products

VERMONT Principal Manufacturing Industries (Percentage of Employment)

22.6% 13.8% 9.0% 7.7% 6.3% 5.8% 5.0% 4.6% 4.3% 3.4% 17.5%

Computer & Electronic Products Food Machinery Fabricated Metal Products Transportation Equipment Wood Products Nonmetallic Minerals Furniture & Related Products Electrical Equipment & Appliances Plastics & Rubber Products Other Manufacturing Industries

AREA DEVELOPMENT | 2014 Annual Directory

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Page 38

NEW ENGLAND CONNECTICUT CO

RHODE ISLAND RH

TRA TRADITIONAL INDUSTRIES: Manufacturing, insurance, shipbuilding, transportation, machine tools, jet engines, submarines, helicopters, financial services, health services, biotechnology, pharmaceuticals, telecommunications, software, tourism, precision manufacturing

TRA TRADITIONAL INDUSTRIES: Finance, defense, insurance, health services, educational services, boat and ship building, fabricated metal products, machinery, jewelry, manufacturing

EXPANDING INDUSTRIES: Aerospace and defense, insurance and financial services, instrumentation and medical devices, bioscience innovation, healthcare and pharmaceuticals, alternative energy (including fuel cells), film and digital media

EXPANDING INDUSTRIES: Healthcare, life sciences, digital media, renewable energy, manufacturing, defense technology, financial services, industrial products and infrastructure services, consumer products and design, professional and educational services, information technology, marine trades, ocean technology

M MAINE

VERMONT VE

TRA TRADITIONAL INDUSTRIES: Forest products, agriculture, textiles, fishing

TRA TRADITIONAL INDUSTRIES: Manufacturing, tourism, agriculture, captive insurance

EXPANDING INDUSTRIES: Biotechnology, composite materials, financial services, high-tech electronic manufacturing, marine science technology, information technology, environmental technology

EXPANDING INDUSTRIES: Advanced manufacturing, value-added food manufacturing, healthcare, IT, renewable/environmental technology

MASSACHUSETTS M

CONNECTICUT BASIC BUSINESS TAXES

TRA TRADITIONAL INDUSTRIES: Creative industries, defense and homeland security, financial services, information technology, life sciences, manufacturing, maritime commerce, renewable energy

CORPORATE INCOME TAX: Corporation Business Tax: 7.5 percent of net income of corporations; 100 percent exemption on data-processing equipment; R&D carryforward tax credit; R&D tax credit exchange for cash. SALES AND USE TAX: Retail sales or leases of tangible personal property and certain services are subject to sales and use taxes at a 6.35 percent rate with some exceptions.

PROPERTY TAX: Rates vary among local jurisdictions and are based on actual value of real and personal property; in practice, property is assessed at 70 percent of value.

EXPANDING INDUSTRIES: Management, scientific, and technical consulting services; individual and family services; pharmaceuticals and medicine manufacturing; home healthcare services; computer systems design and related services; residential care facilities; software publishing; scientific R&D services

MAINE

NE NEW HAMPSHIRE

BASIC BUSINESS TAXES

TRA TRADITIONAL INDUSTRIES: Industrial and commercial machinery, electronic and electrical equipment, fabricated metal products, subcontracting manufacturing

CORPORATE INCOME TAX: 3.5 percent of net income applies to the first $25,000; 7.93 percent applies to the next $50,000; 8.33 percent applies to the following $175,000; and 7.95 per cent applies to Maine net income in excess of $250,000. CORPORATE FILING FEES: $145 minimum filing fee for domestic corporations; $250 application fee for foreign corporations. SALES AND USE TAX: 5 percent of the sales price on retail sales of tangible property and certain services. PROPERTY TAX: Real and personal property is taxed locally at varying rates

EXPANDING INDUSTRIES: Computer support, health services, business services, educational services, aerospace, software development, biotechnology, medical device manufacturing, financial and insurance

www.areadevelopment.com

Papers/Research/Studies www.areadevelopment.com/studies Deloitte: New Technologies & Techniques Transforming Manufacturing Advanced materials, new production technologies, and digital techniques are allowing manufacturers to remain competitive despite numerous challenges.

E&Y: Captial Expansion Plans Leverage Tax Credits & Incentives (C&I) As companies accelerate their capital spending, there will be a commensurate increase in the likely benefits of exploring C&I opportunities.

VISIT OUR OTHER ONLINE INFORMATION RESOURCES www.facilitylocations.com

38

www.locationusa.com

AREA DEVELOPMENT | 2014 Annual Directory

www.locationcanada.com

FOR FREE SITE INFORMATION, CALL

800-735-2732, EXT. 225, OR VISIT US ONLINE AT WWW.AREADEVELOPMENT.COM

NewEngland

12/23/13

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Page 39

MASSACHUSETTS

RHODE ISLAND

BASIC BUSINESS TAXES

BASIC BUSINESS TAXES

SINGLE SALES FACTOR: Yes (for manufacturing companies). CORPORATE INCOME TAX RATE: 8 percent. SALES AND USE TAX: 6.25 (machinery and equipment is exempt). PERSONAL PROPERTY/REAL ESTATE TAX: Levied by local authorities across the state (average rate of $16.97 per $1,000 assessed property value)

CORPORATE INCOME TAX: 3-9 percent. SALES AND USE TAX: 7 percent MUNICIPAL PROPERTY TAX: Rates vary. COUNTY TAX: None

VERMONT BASIC BUSINESS TAXES

NEW HAMPSHIRE BASIC BUSINESS TAXES CORPORATE INCOME TAX: 8.5 percent of net business profits allocable to the state; no personal income tax. INCORPORATION FEES: $35 recording fee for articles of incorporation; fee for filing articles of incorporation is based on the authorized capital stock of the corporation; $50 fee for addendum to articles of incorporation. SALES AND USE TAX: None. LOCAL PROPERTY TAX: Based on assessed valuation, and assessed, levied, and collected by municipalities; no property tax on inventory, machinery, or equipment. STATE EDUCATION TAX: $2.00 to 2.60 per $1,000 of total equalized valuation assessed on property owners and collected by municipalities (2005). TELECOMMUNICATIONS TAX: 7 percent. MACHINERY TAX: None. INVENTORY TAX: None. REAL ESTATE TRANSFER TAX: 0.75 percent per $100 of price. ROOMS & MEALS TAX: 9 percent.

BUSINESS ENTERPRISE TAX: 0.75 percent on the enterprise value tax base; this is a dollar-for-dollar credit against business profits. CAPITAL GAINS TAX: None

CORPORATE INCOME TAX: $0-$10,000: 6 percent; $10,001-$25,000: 7 percent; $25,001 and over: 8.5 percent; minimum tax of $300. CORPORATE ORGANIZATION AND QUALIFICATION FEES: $125.00. SALES AND USE TAX: 6 percent of taxable sales of tangible personal property, including rentals of tangible personal property, assessment charges, fabrication charges, printing charges, digital downloads and telecommunications charges; use tax applies to storage, consumption, or use of tangible personal property or services, unless already subject to sales tax; meals and rooms taxed at 9 percent; several jurisdictions are authorized to assess an additional 1 percent local option tax.

Certain exemptions for manufacturers

BUSINESS LOCATION TRACKER FOR INFORMATION ABOUT RECENT BUSINESS LOCATIONS/EXPANSIONS IN THESE STATES GO TO w w w. A r e a D e v e l o p m e n t . c o m / N e w s I t e m s

composite materials technology, environmental technology, advanced technologies for forestry and agriculture, manufacturing and precision manufacturing, information technology, and financial services. PTDZ benefits do not apply to jobs moved from one area to another within the state.

Rhode Island’s Small Business Loan Fund Corporation (SBLFC) offers up to $250,000 for working capital to existing manufacturing, processing, and selected services small businesses. Additionally, manufacturers seeking financing to be used for the acquisition of land, buildings, and equipment may qualify for loans in excess of $250,000.

The Rhode Island Economic Development Corporation (RIEDC) is also working on a new database tool to improve client services that will help the RIEDC to better provide data-driven, responsive, and effective assistance to businesses to help them grow. — Karen E. Thuermer

MAINE BASIC BUSINESS TAXES CORPORATE INCOME TAX: 3.5 percent of net income applies to the first $25,000; 7.93 percent applies to the next $50,000; 8.33 percent applies to the following $175,000; and 7.95 per cent applies to Maine net income in excess of $250,000. CORPORATE FILING FEES: $145 minimum filing fee for domestic corporations; $250 application fee for foreign corporations. SALES AND USE TAX: 5 percent of the sales price on retail sales of tangible property and certain services. PROPERTY TAX: Real and personal property is taxed locally at varying rates

MASSACHUSETTS BASIC BUSINESS TAXES SINGLE SALES FACTOR: Yes (for manufacturing companies). CORPORATE INCOME TAX RATE: 8 percent. SALES AND USE TAX: 6.25 (machinery and equipment is exempt). PERSONAL PROPERTY/REAL ESTATE TAX: Levied by local authorities across the state (average rate of $16.97 per $1,000 assessed property value)

AREA DEVELOPMENT | 2014 Annual Directory AREA0208.indd 1

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MidAtlantic

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MID-ATLANTIC Delaware

Maryland

New Jersey

Mid-Atlantic Region Drawing High-Tech Investment Some new and creative incentive programs are being provided in the Mid-Atlantic States to help drive the region’s high-tech and other industries.

ACCELERATING ENTREPRENEURIALISM In October, New York launched START-UP NY, an initiative that creates taxfree zones to attract and grow new businesses. Its purpose is to accelerate entrepreneurialism and job creation on a large scale.

While the program targets all of New York State, it particularly focuses on Upstate New York.

New York has long had a history of entrepreneurialism. This is the state that gave rise to George Eastman, inventor of the Kodak Camera, and George Westinghouse Jr., a prolific inventor who promoted the use of electricity for power and transportation. Today the state is seeing growth in industries that span from biotech, information tech, financial services, software and media services, to film and digital entertainment.

The START-UP NY program leverages the resources of the State University of New York (SUNY) campus system, along with other colleges, to attract high-tech and other start-ups, venture capital, new business, and investments from around the world. Under the program, eligible businesses can operate completely taxfree for 10 years on eligible campuses and spaces.

40

Companies can partner with institutions in the SUNY system, as well as other universities, and access industry experts and advanced research laboratories. In return, a business must be aligned with or further the academic mission of the campus, college, or university sponsoring the tax-free community. It also must generate positive community and economic benefits, as well as create and maintain net new jobs.

Announced in October, six leading global technology companies are also investing $1.5 billion to create “Nano Utica,” New York’s second major hub of nanotechnology research and development. The public-private partnership is being spearheaded by the SUNY College of Nanoscale Science and Engineering (SUNY CNSE) and the SUNY Institute of Technology (SUNYIT). It will create 1,000 new high-tech jobs.

“My advanced nano col-

New York

Pennsylvania

leagues and I are working to create breakthrough technology,” commented Hector Ruiz, chairman of Advanced Nanotechnology Solutions, Inc. “We looked across this country, and around the world, and this is where we found the talent, the mindset, and the leadership to help us revolutionize nanoscale technology, through semiconductors and everything they power.”

NEW INCENTIVES Both New York and New Jersey benefit from enormous trade and commerce that come through the Port of New York/New Jersey.

Both are also home to thriving activities in life sciences, IT, logistics, and financial services. New Jersey boasts the highest tech job growth rate in the nation, according to recent data from the Bureau of Labor Statistics, and benefits from activities along the Pennsylvania/New Jersey pharma corridor. In fact, the HealthCare Institute of New Jersey called its home state the “cure corridor.”

To boost jobs and encourage growth, New Jersey recently introduced its New Jersey Economic Opportunity Act. The act is considered the state’s biggest business incentive

overhaul ever. It streamlines New Jersey’s five existing economic development incentive programs into two: the Grow New Jersey Assistance Program (Grow NJ) and the Economic Redevelopment and Growth (ERG) Program. Both programs have been extended until July 1, 2019.

The Opportunity Act essentially makes Grow NJ the state’s main job-creation and retention incentive program and the ERG program its key developer incentive program. ERG brings projects with high employment

RIGHT TO WORK Delaware Maryland New Jersey New York Pennsylvania

No No No No No

COLLEGE GRADUATES (Age 25 and over)*

Delaware Maryland New Jersey New York Pennsylvania

28.7% 35.7% 34.5% 32.4% 26.4%

*Bachelor’s degree or higher; U.S. Census Bureau, ACS, 2009

DELAWARE Principal Manufacturing Industries (Percentage of Employment)

33.8% 11.2%

STATE

POPULATION

LABOR FORCE

Delaware

917,092

444,042

Maryland

5,884,563

3,122,629

(2012)

(2012)

8,792,000

4,598,000

6.2% 3.2% 29.1%

New Jersey

10.2% 6.3%

(2010 Census)

New York

19,570,261

9,615,300

Pennsylvania

12,763,536

6,512,000

AREA DEVELOPMENT | 2014 Annual Directory

FOR FREE SITE INFORMATION, CALL

Food Computer & Electronic Products Chemicals Fabricated Metal Products Plastics & Rubber Products Paper Other Manufacturing Industries

800-735-2732, EXT. 225, OR VISIT US ONLINE AT WWW.AREADEVELOPMENT.COM

MidAtlantic

12/23/13

12:18 PM

and capital investment to urban areas by providing incentive grants to developers who prioritize development and job creation in smart growth locations with infrastructure in place. New Jersey also recently launched the Angel Investor Tax Credit Program to spur job creation and growth in New Jersey’s current and next-generation of highskill, high-wage emerging technology industries.

In order to attract cybersecurity companies to startup or move to Maryland and grow, create jobs, and retain intellectual property,

Page 41

the state is offering a new tax credit to Qualified Maryland Cybersecurity Companies (QMCC). The program ends on July 1, 2019.

Cybersecurity is big business in Maryland, particularly given its proximity to Washington, D.C., and federal agencies. In fact, the University of Maryland, Baltimore County, is currently overseeing a 3,500square-foot, $300,000 expansion of its CyberHive incubator. The 10,000square-foot CyberHive currently has 26 companies that lease dedicated space.

NEW JERSEY

MARYLAND Principal Manufacturing Industries

Principal Manufacturing Industries

(Percentage of Employment)

(Percentage of Employment)

17.5%

19.1% 12.5%

13.2% 11.2% 7.6% 7.5% 6.6% 6.1% 5.9% 3.2% 2.5% 18.7%

Computer & Electronic Products Food Chemicals Fabricated Metal Products Printing & Related Support Activities Transportation Equipment Machinery Plastics & Rubber Products Nonmetallic Mineral Products Paper

9.7% 8.8% 6.3% 5.9% 5.0% 32.6%

Chemicals Food Computer & Electronic Products Fabricated Metal Products Printing & Related Support Activities Machinery Plastics & Rubber Products Other Manufacturing Industries

Other Manufacturing Industries

Manufacturing Heats Up! Oswego County Companies Compete Globally.

“We considered expanding at our existing facilities in Ohio, Texas, UK and China. We chose Oswego County because it’s a pro-business community with excellent educational resources that provide a skilled workforce with a get-it-done attitude.”

– Kevin LaMontagne, CFO, Fulton Companies, maker of commercial boilers

s Over 30 institutes of higher learning within 50 miles s Modern infrastructure network for industrial users s Limitless transportation options via interstate, rail, air and water s Potential incentives available

MONTREAL

BOSTON TORONTO

BUFFALO NEW YORK CITY

CLEVELAND

PHILADELPHIA

L. Michael Treadwell, CEcD (315) 343-1545 www.OswegoCounty.org

WASHINGTON

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Page 42

MID-ATLANTIC DELAWARE DE

NEW YORK Principal Manufacturing Industries

TRA TRADITIONAL INDUSTRIES: Manufacturing, agriculture, finance, chemistry EXPANDING INDUSTRIES: Transportation and utilities, education and healthcare, leisure and hospitality

(Percentage of Employment)

13.2%

14.4%

12.1%

4.7%

TRA TRADITIONAL INDUSTRIES: Manufacturing, transportation, agriculture, financial services, fishing, marine industries EXPANDING INDUSTRIES: Biotechnology, information technology/cyber security, environmental industries, aerospace and defense, technology-driven manufacturing, healthcare technology and services, financial services, tourism

Principal Manufacturing Industries

(Percentage of Employment)

11.6% 9.3% 8.6%

MARYLAND M

PENNSYLVANIA

4.7% 4.4% 4.3% 27.1%

Computer & Electronic Products Fabricated Metal Products Food Machinery Chemicals Plastics & Rubber Products Printing & Related Support Activities Apparel Transportation Equipment Other Manufacturing Industries

11.7%

Fabricated Metal Products Food

8.6% 7.2% 6.9%

Machinery Chemicals Primary Metals

6.9%

Transportation Equipment Plastics & Rubber Products Computer & Electronic Products Electrical Equipment & Appliances Printing & Related Support Activities

6.2% 5.6% 4.6% 4.5% 3.6%

BUSINESS LOCATION TRACKER

NEW JERSEY NE TRA TRADITIONAL INDUSTRIES: Agriculture, life sciences, manufacturing, distribution, services, financial activities EXPANDING INDUSTRIES: International trade, biotechnology, healthcare, research and development, business services, travel and tourism, food production

NEW YORK NE TRA TRADITIONAL INDUSTRIES: Manufacturing, transportation, agriculture, tourism EXPANDING INDUSTRIES: Biomedical/biotech; green/clean tech; communications and media services; distribution; fashion, apparel, and textiles; food processing; industrial machinery and systems; information hardware and software; materials processing; optics and imaging; wood products

PENNSYLVANIA PE TRA TRADITIONAL INDUSTRIES: Energy, life sciences, agriculture, advanced manufacturing and materials, tourism TARGETED INDUSTRIES: Energy, life sciences, advanced manufacturing and materials, technology, agribusiness

FOR INFORMATION ABOUT RECENT BUSINESS LOCATIONS/EXPANSIONS IN THESE STATES GO TO w w w. A r e a D eve l o p m e n t . c o m / S t a t e R e s o u r c e s

INVESTMENT IN LIFE SCIENCES Maryland also offers the InvestMaryland Challenge, a national seed and earlystage business competition.

It awards $400,000 in grants and a host of business services to companies in the life sciences and high-tech industries. Grants are provided through the Maryland Venture Fund and the BioMaryland Center.

Companies also have the opportunity to receive direct investments from venture capital firms and angel investors.

To support biotech companies, the state also offers the Maryland Biotechnology Investment Incentive Tax

3.2% 16.6%

Nonmetallic Mineral Products Wood Products Other Manufacturing Industries

Credit (BIITC) program, which provides tax credits to promote private investment to qualified companies.

BIITC is a key part of BioMaryland 2020, a10year, $1.3 billion strategy to foster the state’s life sciences industry. The MidAtlantic region is particularly known for its stronghold in pharma and bioscience.

Maryland is home to one of the largest bioscience clusters in the United States.

This location means twohour proximity to 80 percent of the U.S. pharmaceutical industry and over 2,000 bioscience companies.

Pennsylvania’s Innovate in PA initiative, launched in October, aims to increase

Coming in the Q1 2014 issue—

28th Annual Corporate Survey 10th Annual Consultants Survey

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FOR FREE SITE INFORMATION, CALL

800-735-2732, EXT. 225, OR VISIT US ONLINE AT WWW.AREADEVELOPMENT.COM

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DELAWARE

MARYLAND

BASIC BUSINESS TAXES

BASIC BUSINESS TAXES

CORPORATE FINANCE TAX: Minimum of $75 and maximum of $180,000 per year GENERAL PROPERTY TAXES: Based on assessed value of real property for county, municipal, and school district purposes; personal property exempt; the Delaware Economic Development Office can provide property tax information for all geographic areas within the state.

CORPORATE INCOME TAX: 8.25 percent of the net income allocable to Maryland; no corporate franchise tax; no gross receipts tax on manufacturers; no tax on the Internet, e-commerce, or direct broadcast satellite services. SALES AND USE TAX: 6 percent on the sale or use of tangible personal property, unless a specific exemption is provided. PROPERTY TAX: Real property taxed by the state, counties, Baltimore City, and incorporated towns; rates vary; Maryland imposes no state personal property tax; counties and municipalities may tax business personal property

investment capital and accelerate high-wage job growth by supporting small, emerging companies. The initiative offers $100 million in deferred tax credits to insurance companies in Pennsylvania to raise funds over multiple years. Funds raised will be directed to the highly successful Ben Franklin Technology Partners (BFTP), three life sciences greenhouses, and the

Venture Capital Investment Program.

The Ben Franklin Technology Development Authority (BFTDA) is set up to support programs and investments of Pennsylvania’s technology companies and universities and creates a continuum of financial and technical services to advance their creation, growth, success, and global competitiveness.

Your search is over.

NEW JERSEY BASIC BUSINESS TAXES CORPORATE INCOME TAX: 9 percent of net income with adjustments; 7.5 percent for small businesses. Single Sales Factor allocation formula takes effect January 1, 2014. SALES AND USE TAX: 7 percent of taxable sales and uses, including manufacturing utilities/fuel, office equipment, leases of tangible personal property. Sales tax exemptions for raw materials, manufacturing machinery, custom software, professional services, and gasoline. PROPERTY TAX: Real property subject to taxation unless specifically exempt; taxes administered by local taxing districts; tax based on percentage of assessed value. No personal property tax (on inventories, equipment, etc.)

White Pine Commerce Park has the location, workforce and resources—including abundant fresh, potable water—your clients are asking for. As the largest publicly controlled business park in the region, it also has the incentives you’d expect from a business-friendly community with a proven, pro-growth agenda.

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Montreal Toronto

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MID-ATLANTIC NEW YORK

PENNSYLVANIA

BASIC BUSINESS TAXES

BASIC BUSINESS TAXES

CORPORATE INCOME TAX: In 2014 a 25 percent reduction in the corporate tax rates for qualified New York State (NYS) manufacturers will begin to be phased in over four years. NYS's maximum corporate franchise (income) tax rate for most corporate taxpayers is 7.1 percent; for qualified NY manufacturers the corporate franchise tax on entire net income is 6.5 percent (for eligible qualified NYS manufacturers the rate is reduced to 3.25 percent for tax years beginning on/after Jan. 1, 2012 and before Jan. 1, 2015). Corporations pay the highest tax computed on the following four alternative bases: (1) a tax of 7.1 percent (3.25 percent for eligible qualified NYS manufacturers until 2015, when the rate will be 6.5 percent) on allocated entire net income; (2) a tax of 0.15 percent on allocated business and investment capital (maximum for qualified NYS manufacturers: $350,000; maximum for nonmanufacturers: $1 million; (3) a tax of 1.5 percent on allocated minimum taxable income (0.75 percent for eligible qualified NYS manufactures until 2015, when the rate will be 1.5 percent); or (4) a separate minimum tax at fixed dollar amounts, based on NYS receipts, ranging from $25 to $5,000 (except for eligible qualified NYS manufacturers, for which the rates will be one half of the amounts until 2015).

An additional tax of 0.09 percent applies to a corporation's allocated subsidiary capital. SALES AND USE TAX: NYS imposes a sales/use tax at the rate of 4 percent. Counties and cities may impose a sales tax up to a combined maximum of 3 percent within their respective territorial limits. A number of localities have been authorized to impose tax at additional rates (i.e., in excess of 3 percent), ranging from 1/4 percent to 1 5/8 percent. An additional 0.375 percent sales tax rate is charged in counties located within the Metropolitan Commuter Transportation District (12-county area in the lower Hudson Valley, New York City, and Long Island). Manufacturing, aircraft, and IDA exemptions exist. PROPERTY TAX: NYS does not levy real property taxes; however, property taxes are levied by local governments. The counties, which are the principal taxing local units, operate under the town system, so that much of the actual administration and collection of taxes is accomplished at the municipal level.

Counties, cities, towns, villages, and school and special districts all have independent powers of taxation. Rates vary according to location.

CORPORATE NET INCOME TAX: 9.99 percent on federal taxable income, without the federal net operating loss deduction and special deductions, and modified by certain additions and subtractions. Domestic and foreign corporations are subject to the corporate net income tax for the privilege of doing business; carrying on activities; having capital or property employed or used in Pennsylvania; or owning property in Pennsylvania. CAPITAL STOCK AND FOREIGN FRANCHISE TAX: Imposed at a rate of 0.89 mills; this tax is being phased out and is anticipated to be completely eliminated by 2016. Assets used in manufacturing, processing, or research and development are exempt from this tax.

SALES AND USE TAX: 6 percent on the sale at retail of tangible personal property and certain specifically enumerated services. By law, a 1 percent local tax is added to purchases made in Allegheny County, and 2 percent local tax is added to purchases made in Philadelphia. Purchases of materials to be consumed in manufacturing or those to be used directly in manufacturing (e.g., equipment, raw materials, etc.) are exempt from the sales and use tax.

PROPERTY TAX: Imposed by counties, municipalities, and school districts on the assessed value of property as established by local assessor; no county or state tax on personal property, whether tangible or intangible

Programs supported by BFTDA include Ben Franklin Technology Partners (BFTP), the University Research Commercialization Grant

program, and the Keystone Innovation Zone Network (KIN), along with the KIZ Tax Credit program.

As an indication of how

Click on to the world’s foremost economic development Website — and CONNECT to the WORLD!

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AREA DEVELOPMENT | 2014 Annual Directory

an investment from the Ben Franklin Technology Partners is like a Good Housekeeping Seal of Approval for early-stage technology firms, four biotechnology clients of the Ben Franklin Technology Partners of Northeastern Pennsylvania — Azevan Pharmaceuticals; Hager Bioscience, LLC; Third Eye Diagnostics, Inc; and VaxForm LLC — received over $11.5 million in follow-up funding in federal science-based grants in September. All four are residents of Ben Franklin TechVentures ®, a hightech workspace and community for early-stage companies on the campus of Lehigh University in Bethlehem.

WIRELESS TECHNOLOGY Two other tech initiatives are expanding wireless and broadband connectivity in New York City: WiredNYC and the Wireless Corridor Challenge. WiredNYC is a rating platform that evaluates the broadband connectivity and infrastructure of office buildings to encour-

FOR FREE SITE INFORMATION, CALL

age and accelerate deployment of leading broadband technologies. The Wireless Corridor Challenge awards grants to five organizations to expand free, public wireless access across the city’s five boroughs to provide local visitors, tourists, and businesses with free connectivity in key commercial districts. All of the corridors were expected to be launched in December 2013.

Benefiting from its location halfway between New York City and Washington, D.C., Delaware has attracted clusters of businesses in aerospace and aviation; green and material sciences; healthcare and life sciences; insurance and financial services; and tourism.

Delaware’s primary funding source is the Delaware Strategic Fund, which provides customized financial assistance to businesses considering locating in the state. If qualified, companies receive financial assistance through low-interest loans, grants, or other creative instruments. — Karen E. Thuermer

800-735-2732, EXT. 225, OR VISIT US ONLINE AT WWW.AREADEVELOPMENT.COM

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MIDWEST Illinois

Indiana

Iowa

Michigan

Minnesota

Slow But Steady Economic Climb for the Midwest You’re not likely to find explosive growth in the Midwest, but the region’s economy is advancing at a healthy, steady pace with strategic plans to enhance investment in place.

EMPLOYMENT GROWTH Each of the region’s states looks good in the latest GDP figures from the Bureau of Economic Analysis. Minnesota leads the way with growth registering 3.5 percent in 2012, followed by Indiana at 3.3 percent. Iowa tallied 2.4 percent, followed by Michigan and Ohio, both with 2.2 percent. Missouri had a 2.0 percent growth rate, Illinois registered 1.9 percent, and Wisconsin’s growth was 1.5 percent.

The region’s employment situation is particularly rosy in Iowa and Minnesota, where the most recent unemployment rates were 4.6 and 4.8 percent, respectively — the nation’s sixthand ninth-best figures, well below the national average.

The rates were 6.5 percent in Missouri and Wisconsin, 7.5 percent in Indiana and Ohio, 8.9 percent in Illinois, and 9.0 percent in Michigan.

Manufacturing growth in Illinois provides some hope going into 2014, but Kiplinger’s Economic Outlook suggests that it’ll take more than that to make a significant dent in the jobless rate there. Even so, Kiplinger expects the state’s GDP to grow, albeit at an average rate. Increases in vehicle sales will be good

news for Michigan, according to the outlook — that state’s high jobless rate should continue to decline, while average GDP growth is predicted. Average growth is also in the forecast for Iowa, Missouri, Ohio, and Wisconsin, while above-average economic expansion is expected in Indiana, thanks to manufacturing and pharmaceutical growth, and in Minnesota, where education and health services are providing positive vibes.

Though the jobless rate is already low in Minnesota, the jobs keep materializing and the story keeps getting better. In August 2013, the state added 12,200 jobs and officially surpassed the jobs

Missouri

total it had recorded in February 2008, meaning Minnesota had officially recovered the jobs lost in the recession. By September, job vacancies in Minnesota surpassed 72,000, the highest level in 12 years.

Meanwhile, through the first three quarters of 2013, more than 100 business expansions created some 5,600 new jobs, according to the Minnesota Department of Employment and Economic Development.

Among many on the list of positive headlines is Olympus, maker of medical and surgical products, which is building an R&D and manufacturing facility that will create a hundred jobs and retain 265 more.

AUTO AND OTHER SECTORS The rebounding auto industry is moving Michigan in the right direction economically. Even though it does have a ways to go on the employment front, when one considers that the jobless rate there surpassed

STATE

POPULATION

LABOR FORCE

Illinois

12,875,255

6,593,583

Indiana

Iowa Michigan Minnesota

(2012)

(2012 annual average)

6,537,334

3,149,743

(2012 annual estimate, US Census)

(2012 annual average BLS)

3,074,186

1,638,800

(2012)

(2012)

Wisconsin

14 percent during the recession, the progress is impressive. The state continues to seek new auto opportunities as well, and sent a delegation to China this past fall to make new connections there. There are significant headlines of business locations and expansions pretty much every week across the state. A small sampling of the good news includes announcements by Renu Wireless, Universal Marketing Group, HTC Global Services, Niowave Inc., and SpartanNash — those five companies made announcements within weeks of each other in the fall creating about 1,400 jobs in total.

Indiana has traditionally been manufacturing-heavy, and as in Michigan, its solid economic situation has a lot

RIGHT TO WORK Illinois Indiana Iowa Michigan Minnesota Missouri Ohio Wisconsin

No Yes Yes Yes No No No No

COLLEGE GRADUATES (Age 25 and over)*

(2010 Census)

(2010 annual average)

Illinois Indiana Iowa Michigan Minnesota Missouri Ohio Wisconsin

5,711,000

3,072,000

*Bachelor’s degree or higher; U.S. Census Bureau, ACS, 2009

9,883,360

4,727,700

(2012)

(July 2013)

5,379,139

2,970,779

(2012)

(August 2013)

Missouri

5,988,927

3,009,400

Ohio

11,536,504

5,900,000

Wisconsin

Ohio

30.6% 22.5% 25.1% 24.6% 31.5% 25.2% 24.1% 25.7%

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MIDWEST ILLINOIS ILL

MINNESOTA M

TRA TRADITIONAL INDUSTRIES: Agriculture, heavy industry, financial services

TRA TRADITIONAL INDUSTRIES: Health services, medical product manufacturing, computer and electronic product manufacturing, food processing, industrial machinery manufacturing

EXPANDING INDUSTRIES: Administrative and support services, transportation and warehousing, employment services, fabricated metal product manufacturing, high-tech, biotech, sustainable energy, hospitals, food services and drinking places, machinery & chemical manufacturing

EXPANDING INDUSTRIES: Health services, educational services, medical equipment manufacturing, bioscience, biofuel manufacturing, scientific instrument manufacturing, finance and insurance

IN INDIANA

MISSOURI M

TRA TRADITIONAL INDUSTRIES: Agriculture, steel, automotive, life sciences, wood and wood products, electronics, plastics, food processing

TRA TRADITIONAL INDUSTRIES: Agriculture, manufacturing, tourism, service and trade

EXPANDING INDUSTRIES: Life sciences, advanced manufacturing, automotive, distribution and logistics, information technology, national security and defense, motor sports

EXPANDING INDUSTRIES: Automotive, advanced manufacturing, biomedical/ biotechnology, renewable energy development and systems, aviation/aerospace, information and media, financial services, professional services, warehouse/distribution, healthcare services

IOWA IO OHIO OH TRADITIONAL INDUSTRIES: Value-added agriculture, manufacturing TRA EXPANDING INDUSTRIES: Renewable energy, information solutions, financial services/ insurance, advanced manufacturing, biosciences

MICHIGAN M

W WISCONSIN

TRADITIONAL/EXPANDING INDUSTRIES: Life sciences, advanced TRA automotive technologies, advanced battery/electric vehicle mfg./development, homeland security/defense, LED (light emitting diode) lamps, alternative energy technologies, auto related R&D, advanced materials, telematics, tourism, agriculture, information technologies, micro- and nanotechnology, pharmaceuticals, medical devices, instrumentation and diagnostics, research and ancillary services

to do with success in the automotive industry. There have been numerous manufacturing announcements recently, including Tec Air’s

TAR TARGET INDUSTRIES: Advanced manufacturing, automotive, aerospace and aviation, biohealth, energy, financial services, information technology, agribusiness and food processing, chemicals and polymers

new headquarters, Wayzata Home Products, Heartland Automotive, Adkev, and Patriot Porcelain, which together are creating about

TRA TRADITIONAL INDUSTRIES: Manufacturing, agriculture, forestry, tourism EXPANDING INDUSTRIES: Trade, finance, biotechnology, high-technology manufacturing, healthcare

a thousand jobs. The state’s prime location for distribution also continues to attract new developments.

For example, electronics e-

tailer Newegg is investing $20 million in a distribution center in Indianapolis that will create 150 jobs, while Carl Buddig & Co. will move

THIS REGIONAL REPORT SPONSORED BY:

Leading the way to a secure energy future.

Along with reliable, affordable energy, Ameren can provide the development programs and services that businesses need to establish long-term presence in Missouri and Illinois.

Michael S. Kearney Director, Economic Development 800-981-9409

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FOR FREE SITE INFORMATION, CALL

www.Ameren.com/EcDev 800-735-2732, EXT. 225, OR VISIT US ONLINE AT WWW.AREADEVELOPMENT.COM

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ILLINOIS Principal Manufacturing Industries (Percentage of Employment)

a lunchmeat distribution center from Illinois to Munster, Indiana. And Indiana’s life-sciences sector continues to grow, with announcements including the headquarters move of American Specialty Health from California to Indianapolis, where it will create 675 jobs.

JobsOhio reported a positive 2013 overall. In the second quarter alone, more than five dozen projects were announced that collectively created or retained nearly 37,000 jobs. The health of the state’s manufacturing sector earned an “A” from Ball State University in 2013, as did logistics (Indiana earned and “A” in those same two measures).

STRATEGIC INDUSTRY-ATTRACTION PLANS There are plenty of positive headlines across Illinois in virtually every sector, not surprising given the size of the state’s economy. Though there is still room to grow in order to meet the demand for jobs, things are gradually heading in the right direction. The state is home to many major corporate headquarters, and continues to gain more — 2013 saw Illinois attract the U.S. headquarters of German manufacturer Rittal Corp. as well as that of Mike’s Hard Lemonade. Meanwhile, FedEx decide to put a distribution center in Sauget, Illinois. The state is enhancing its economic development focus by launching the new Illinois Business Development Council and beginning the process of creating regular economic development strategic plans.

Missouri continues to attract new jobs and its companies keep on growing. The most recent jobs report gives an idea of the kinds of jobs, which are frequently life sciences or technology. Examples cited included announcements by Pharma Medica Research, Cofactor Genomics, LightEdge Solutions, and CD Aviation Services. The state hopes to add to the tally with its new Missouri Works economic development program, which consolidates existing incentive and work force-training programs for a more streamlined experience.

Iowa’s economic development officials are on the hunt for job creators in advanced manufacturing, biosciences, financial services, and other sectors, and the hunt is going well. The Iowa Economic Development Authority (EDA) has supported projects of a wide range of companies in recent months, including factory

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19.6% 12.7%

Machinery Food and Beverage & Tobacco Manufacturing

12.6% 10.5%

Chemicals Petroleum and Coal Products Fabricated Metal Products

10.0% 6.1% 5.7% 22.8%

Computers and Electronic Equipment Plastics & Rubber Products Other Manufacturing Industries

INDIANA Principal Manufacturing Industries (Percentage of Employment)

23.0% 11.0% 8.5% 8.2% 7.1% 6.6% 5.5% 6.1% 3.3% 2.9% 17.8%

Transportation Equipment Fabricated Metal Products Primary Metal Metal Industries Machinery Food Mfg. Rubber & Plastic Products Chemicals Furniture & Related Products Computer & Electronic Products Printing Other Manufacturing Industries

IOWA Principal Manufacturing Industries (Percentage of Employment)

24.8% 17.7%

Food Machinery

16.1% 5.9%

Chemicals Fabricated Metal Products Computer & Electronic Products Plastics & Rubber Products Motor Vehicle Products Other Manufacturing Industries

5.2% 4.8% 4.1% 21.4%

800-735-2732, EXT. 225, OR VISIT US ONLINE AT WWW.AREADEVELOPMENT.COM

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INDUSTRIAL SITES REVIEWED, APPROVED AND READY FOR YOU IN WISCONSIN. Businesses that open their doors in Wisconsin know they are opening themselves up for unique advantages. Our state creates new opportunities for business growth by taking a bold approach to economic development, polices and initiatives.

One example of this forward thinking is found in our Certified In Wisconsin program. It’s designed to create and enact consistent standards for certification of development-ready sites across the state. In simpler terms, we have in place all the key reviews, documents and assessments most commonly

required for industrial use. This means a great reduction in time and risk for businesses eager to grow In Wisconsin®.

For a complete list of the certified sites in our state, contact our Vice President of Economic and Community Development, Brenda Hicks-Sorensen, at 608.210.6838 or Brenda.Hicks-Sorensen@wedc.org. Learn more by visiting Certified.InWisconsin.com.

In Wisconsin® is a registered trademark of Wisconsin Economic Development Corporation.

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MICHIGAN Principal Manufacturing Industries (Percentage of Employment)

29.6% 13.9% 12.1% 6.7% 6.6% 5.3% 3.8% 3.7% 18.3%

Transportation Equipment Fabricated Metal Products Machinery Food Plastics & Rubber Products Chemicals Primary Metals Furniture & Related Products Other Manufacturing Industries

MINNESOTA Principal Manufacturing Industries (Percentage of Employment)

15.0% 15.0% 13.0%

WE ARE A REGION WHERE INDUSTRY IS FUELED BY TECHNOLOGY, MAKING BUSINESS THRIVE HERE.

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7.0%

(mostly medical devices)

32.0%

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Other Manufacturing Industries

MISSOURI Principal Manufacturing Industries (Percentage of Employment)

15.9%

Food Products

13.8%

Transportation Equipment Fabricated Metal Products

11.8% 10.7% 7.1% 5.9% 5.2%

From our leadership in advanced manufacturing to our discoveries in bioscience, the eight counties of the Madison Region are home to the latest technologies that impact global change. Be inthe company of leaders as you expand or relocate your business. Call 608.443.1960 or visit madisonregion.org.

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10.0% 8.0%

Computer & Electronic Products Food Products Fabricated Metal Products Machinery Printing & Related Support Activities Misc. products

4.5%

3.0% 22.1%

Machinery Chemicals Plastics & Rubber Products Printing & Related Support Activities Electrical Equipment, Appliances, & Components Nonmetallic Mineral Products Other Manufacturing Industries

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ILLINOIS

MICHIGAN

BASIC BUSINESS TAXES

BASIC BUSINESS TAXES

CORPORATE INCOME TAX: 7.0 percent on net income apportioned to Illinois, plus an additional 2.5 percent for corporate personal property replacement.

SALES TAX: State rate of 6.25 percent on retail purchases of tangible personal property plus an optional additional tax ranging from 0.0-3.25 percent in local jurisdictions. PROPERTY TAX: Real property only is taxed and is assessed at 33.3 percent of fair market value; statewide average property tax rate is 7.3 percent (exception: Cook County property is assessed at 38 percent for commercial property, 36 percent for industrial property, and 16 percent for residential property)

CORPORATE INCOME TAX: Michigan levies a flat 6 percent corporate income tax on firms structured as C corporations. Income for other business entities flows through to the owners' personal income taxes and is taxed at a flat personal income tax rate of 4.25 percent. SALES AND USE TAX: 6 percent; no local sales tax allowed; exemptions allowed for purchase of manufacturing equipment, energy used directly in manufacturing and pollution-control equipment. PROPERTY TAX: Both real and personal property are assessed at 50 percent of current true cash value. The millage rate will depend on the taxing jurisdiction of the business site. Michigan's average non-homestead property tax rate was 49.20 mills, or $49.20 per $1,000, of assessed property. Industrial personal property is exempt from the 24 mills for schools, and commercial personal property is exempt from 12 mills. Inventory, special tooling, and pollution control equipment are exempt from property taxes. Available property tax abatements are negotiated locally. There is a 100 percent new personal property exemption available in specific communities. Also, 50 percent abatements for up to 12 years for real and personal property are available to industrial processors and high-tech companies. Rehabilitation projects can be abated 100 percent. Michigan also has more than 100 sites with tax-free Renaissance Zones, as well as the ability to designate “Renewable Energy Renaissance Zones,� effectively eliminating general property taxes.

INDIANA BASIC BUSINESS TAXES CORPORATE ADJUSTED GROSS INCOME TAX: 8 percent (four-year phased reduction to 6.5 percent began on July 1, 2012) INDIVIDUAL INCOME TAX: Flat rate of 3.4 percent covers most business types as well as individuals. SALES AND USE TAX: 7 percent PROPERTY TAX: Real estate and personal property are assessed at 100 percent of true value; rates vary locally; business property taxes capped at 3 percent of assessed value

MISSOURI

IOWA

BASIC BUSINESS TAXES

BASIC BUSINESS TAXES CORPORATE INCOME TAX: Imposed on net income from sales within Iowa after deducting 50 percent of federal corporate income tax; rates are 6 percent on the first $25,000 or any part thereof; 8 percent on the excess over $25,000 but less than $100,000; 10 percent on the excess over $100,000 but less than $250,000; and 12 percent on the excess over $250,000. SALES TAX: 6 percent on transactions involving the transfer, exchange, or barter of tangible personal property on certain enumerated services and gross receipts from the sale of optional service of warranty contracts; communities and schools may impose a local option sales tax. USE TAX: 6 percent. PROPERTY TAX: Manufacturing machinery and equipment, as well as computers used to process data, are exempt from taxation; pollution-control equipment is also exempt. Iowa does not charge tax on personal property.

CORPORATE INCOME TAX: 5.2 percent net effective corporate income tax rate.

SALES AND USE TAX: 4.225 percent state rate. PROPERTY TAX: Real property classified as commercial/industrial is assessed at 32 percent, residential at 19 percent, agricultural at 12 percent of true or fair market value; commercial and industrial real property assessed an additional county surcharge designed to replace revenues lost by tax exemption of business inventories (with exemptions)

BUSINESS LOCATION TRACKER FOR INFORMATION ABOUT RECENT BUSINESS LOCATIONS/EXPANSIONS IN THESE STATES GO TO w w w. A r e a D e v e l o p m e n t . c o m / N e w s I t e m s

A GREAT INDIANA VALUE Markle Industrial Park - Huntington County, IN Shovel ready at I-69 Exit 286 Owned by the Huntington County Economic Development Corporation

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MIDWEST robotics specialist Genesis Systems Group, performance drink maker Kamath Biosciences, cloud-based software developer WebFilings, and M&S FlowMatics, Inc., which is commercializing technology developed at Iowa State University. The Iowa EDA recently asked Battelle’s Technology Partnership Practice to examine and update its organization’s roadmap.

Wisconsin has its eyes on global opportunities, and is focusing new efforts on helping the state’s companies make connections for international opportunities. That’s among

the 2014 strategies that the Wisconsin Economic Development Corp. has adopted, along with work force development pilot programs, an industrial site redevelopment program, and other tools to create new jobs. Economic development successes continued through 2013, and included 130 new jobs at an expanding Worthington Cylinders, another 100 through a Jagemann Stamping Co. expansion, and 140 jobs at Muth Mirror Systems, which is expanding in Sheboygan.

States in this region have collected countless honors — here are just a few representative samples. Forbes listed Minnesota eighth in its most recent Best States for Business ranking, Iowa was 12th and Indiana 16th. Indiana’s business tax situation caught the eye of the Tax Foundation, which ranked

Businessleaders welcomedhere

OHIO Principal Manufacturing Industries (Percentage of Employment)

16.5% 15.5%

Hendricks County, Indiana is a premier location for business thanks to a skilled workforce, a location close to population centers, and a transportation network that includes access to four interstate highways, a CSX rail system, and the Indianapolis International Airport and FedEx Freight Terminal.

11.4% 8.8% 8.1% 6.6% 5.7% 4.3% 3.2% 19.9%

WISCONSIN Principal Manufacturing Industries (Percentage of Employment)

Our workforce is among the best in the nation, due to our exceptional schools and the resources of excellent postsecondary institutions. The Hendricks College Network connects companies and residents with Indiana colleges and universities to ensure a well-educated workforce.

15.9%

Fabricated Metal Products

14.7% 13.7% 6.8% 6.5%

Machinery Food Paper Plastics and Rubber Products Printing and Related Support Activities Transportation Equipment Electrical Equipment, Appliances, and Components Computer and Electronic Products Primary Metals

6.4% 5.8%

What are you waiting for? Give us a call.

5.0%

4.4%

Hendricks County, Indiana 3.9%

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Transportation Equipment Fabricated Metal Products Machinery Food Plastics Chemicals Primary Metals Electronic Equipment Printing Other Manufacturing Industries

3.6% 3.5% 9.8%

Chemicals Wood Products Other Manufacturing Industries

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MINNESOTA

OHIO

BASIC BUSINESS TAXES

BASIC BUSINESS TAXES

CORPORATE INCOME TAX: Corporations' rate is 9.8 percent with a three-factor apportionment formula of 96 percent sales, 2 percent property, and 2 percent payroll; after 2013, one-factor sales formula (100 percent-sales). SALES AND USE TAX: The general sales and use tax rate is 6.875 percent. Minnesota currently refunds sales tax paid on capital equipment (machinery and equipment) used in the manufacturing process. Beginning September 1, 2014, there will be an upfront exemption on these taxes. Other major exemptions for businesses include fees for equipment installation and many other services. Utilities, chemicals, and gases used in industrial production are exempt. For qualified data centers, the following purchases are exempt: Enterprise information technology equipment, electricity used in the operation of the center, and computer software (refund).

PROPERTY TAX: Personal property, including machinery and inventory, is exempt from property tax; as well as personal property used for control of air, water, or land pollution including heavy machinery that would be considered real property otherwise. Local governments tax all real property not specifically exempted; each property's assessed value is multiplied by 1.5 percent for the first $150,000 of value and 2 percent of any value over $150,000; this new value, or tax capacity, is multiplied by the local and state property tax rates plus any local referendum rate to determine property tax liability.

COMMERCIAL ACTIVITIES TAX: 0.26 percent of taxable gross receipts of more than $1,000,000 per calendar year is subject to this tax. Taxpayers with gross receipts between $150,000 and $1,000,000 in a calendar year must pay an annual minimum tax of $150 per year. SALES AND USE TAX: State sales and use tax rate is 5.75 percent and applies to the retail sale, lease, and rental of tangible personal property as well as the sale of selected services in Ohio. In transactions where sales tax was due but not collected by the vendor or seller, a use tax of equal amount is due from the customer.

Counties and regional transit authorities may levy additional sales and use taxes.

Counties and regional transit authorities may each levy sales tax in multiples of 0.25 percent up to 3 percent. The total combined rate — state, county, and transit authority — may not exceed 8.75 percent. PROPERTY TAX: Assessed by cities, counties, and school districts, collected by counties, on 35 percent of true value for real property.

the state 10th on its State Business Tax Climate Index, as well as Chief Executive magazine, which placed

AREA0172.indd 1

Indiana fifth on its Best States for Business listing.

— Steve StackhouseKaelble

WISCONSIN BASIC BUSINESS TAXES Single-factor tax treatment. CORPORATE INCOME TAX: 7.9 percent of net income.

SALES AND USE TAX: 5 percent of gross receipts from sales, leasing, or renting tangible personal property and certain services, with exemptions. PROPERTY TAX: Rates vary by taxing jurisdiction (towns, villages, cities, counties, school districts, and special districts); nonmanufacturing assessments are done at the local level at some percentage of market value; taxes are levied within taxing jurisdictions using the local assessment; property tax exemptions are offered for manufacturing machinery, equipment, inventories, machinery used exclusively for R&D, computers, and computer equipment; a sales tax exemption for equipment and energy used in the manufacturing process.

23/10/13 2:00 PM AREA DEVELOPMENT | 2014 Annual Directory 53

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PLAINS Kansas

Nebraska

North Dakota

Energy Sector Bringing Jobs and Wealth to Plains States Winners of numerous accolades, the Plains States are garnering investment across diverse industry sectors and growing their economies.

The Plains States are far healthier than the nation as a whole in terms of unemployment. Meanwhile, state governments — eager to boost their reputations as “business-friendly” — continue to tweak tax and economic development policies.

Leading the way is North Dakota, which had the highest 2012 growth in gross domestic product of any state, at 13.4 percent, according to the U.S. Bureau of Economic Analysis. It was the third consecutive year North Dakota topped the GDP list.

THE ENERGY BOOM Hydraulic-fracturing technology is giving energy companies access to vast opportunities in the Bakken and Three Forks reserve areas of North Dakota, where the U.S. Geological Survey estimates more than seven billion barrels of oil and 6.7 trillion cubic feet of natural gas are waiting to be extracted from the ground.

In fact, North Dakota has grown to become the country’s second-largest oil producer, behind Texas.

According to the state’s Department of Mineral Resources, there were 9,322 wells in production in July, the highest count ever, and the state set records in oil and natural gas production.

The boom is fueling dra-

54

matic job growth. North Dakota’s 2012 employment and population growth led the nation, and its 2.7 percent jobless rate in October 2013 was the lowest of any state. MoneyRates.com recently called North Dakota the best state for young adults with regard to economic opportunity, noting that the state has a higher proportion of 18- to 24-yearolds than any other state.

Of course, it’s impossible to experience that kind of boom without having the good news spill over into other sectors, such as transportation and warehousing, wholesale trade, and construction. With all the oil that needs to get to other places, producers have increasingly turned to rail transportation because pipelines can’t handle the demand, and that is driving talk of new pipeline development.

HEALTHY JOB GROWTH Manufacturing growth is always welcome in any state, and the Plains States

South Dakota

are enjoying plenty of new jobs. In Kansas, for example, another hundred people will be making margarine at Unilever’s spreads facility in Johnson County; and Crosswinds Petfoods will be adding more than 60 jobs in Topeka. In South Dakota, expansion at equipment maker MDS Manufacturing Co. is among the success stories. Japanese manufacturer Morio Denki is heading to Lincoln, Nebraska, with its first U.S. operation.

North Dakota may be leading the nation in job growth and lack of unemployment, but its Plains neighbors are not far behind. The nation’s secondbest jobless rate in October 2013 was in South Dakota, at 3.7 percent, and Nebraska followed with a rate of 3.9 percent. The Kansas rate of 5.6 percent tied for 13th best and was well ahead of the national rate, too. GDP growth in the other Plains States has also been healthy — the 2012 growth rate reported by the BEA was 1.5 percent in Nebraska, 1.4 percent in Kansas, and 0.2 percent in South Dakota.

NEW INITIATIVES Though the headlines have been positive, state leaders across the Plains are not content to just let good things happen on their own.

RIGHT TO WORK Kansas Nebraska North Dakota South Dakota

Yes Yes Yes Yes

COLLEGE GRADUATES (Age 25 and over)*

Kansas Nebraska North Dakota South Dakota

29.5% 27.4% 25.8% 25.1%

*Bachelor’s degree or higher; U.S. Census Bureau, ACS, 2009

KANSAS Principal Manufacturing Industries (Percentage of Employment)

23.9% 18.8% 18.5% 13.6% 11.4% 13.9%

Transportation Eqpt.

Aerospace Products and Parts Food Products Machinery Animal Processing Other Manufacturing Industries

NEBRASKA Principal Manufacturing Industries (Percentage of Employment)

33.8% 10.1% 9.4%

Food Processing Industrial Machinery Fabricated Metal Products

STATE

POPULATION

LABOR FORCE

8.8%

Transportation Equipment

Kansas

2,900,000

1,489,000

5.4%

Nebraska

1,826,341

1,020,913

(2010)

(2012 annual average)

4.5%

Rubber & Plastic Products Computer & Electronic Products

699,628

392,064

(2012 estimate)

((2012)

3.9%

North Dakota South Dakota

AREA DEVELOPMENT | 2014 Annual Directory

833,354

445,730

(2012)

(2012)

FOR FREE SITE INFORMATION, CALL

24.1%

Printing & Related Activities Other Manufacturing Industries

800-735-2732, EXT. 225, OR VISIT US ONLINE AT WWW.AREADEVELOPMENT.COM

Plains

12/23/13

11:07 AM

Page 55

They’ve been actively trying to build upon their already good credentials, with new initiatives for businesses and individuals.

In South Dakota, for example, four new economic development programs came online in July, as part of the “Building South Dakota” legislation passed earlier in 2013.

The programs include new support for local communities and economic development organizations that are working to grow industry, along with initiatives rewarding equipment upgrades and job growth.

Nebraska, meanwhile, aims to harvest not just wind and wheat but innovation — one example is the Nebraska Innovation Fund Prototyping Program, which recently sup-

KANSAS KA TRA TRADITIONAL INDUSTRIES: Aviation, agriculture/food processing, printing and publishing, fabricated metal products, equipment and machinery, oil and gas EXPANDING INDUSTRIES: Professional services, oil and gas, bioscience, logistics/ distribution, customer service centers, food manufacturing, back office, alternative energy, general manufacturing

NE NEBRASKA

BUSINESS LOCATION TRACKER FOR INFORMATION ABOUT RECENT BUSINESS LOCATIONS/EXPANSIONS IN THESE STATES GO TO w w w. A r e a D e v e l o p m e n t . c o m / N e w s I t e m s

TRADITIONAL INDUSTRIES: Agriculture, manufacturing TRA EXPANDING INDUSTRIES: Food processing, healthcare, telecommunications, travel and tourism

When it comes to successfully expanding or relocating your business,

Nebraska’s low energy costs, central geographic location, and high-quality, low-cost workforce SURYLGH VWUDWHJLF DGYDQWDJHV IRU \RXU EXVLQHVV 7R ÀQG RXW KRZ WR KDUQHVV 1HEUDVND·V power, contact the economic development professionals at Nebraska Public Power District.

econdev.nppd.com 800.282.6773, ext. 5534 econdev@nppd.com

AREA0187.indd 1

AREA DEVELOPMENT | 2014 Annual Directory 09/12/13 10:10 PM55

Plains

12/20/13

1:02 PM

Page 56

PLAINS Principal Manufacturing Industries

Principal Manufacturing Industries (Percentage of Employment)

(Percentage of Employment)

23.8% 20.1%

Machinery Food & Beverages

20.4% 15.7%

Food Machinery

10.1%

Wood Product/ Printing Transportation Equipment Fabricated Metal Products Nonmetallic Mineral Products Computer & Electronic Products

10.3%

Fabricated Metal Products Transportation Equipment Computer & Electronic Products Furniture & Related Products Wood Products

9.7% 8.2% 6.7% 5.7% 5.3% 3.3% 7.1%

NORTH DAKOTA NO

SOUTH DAKOTA

NORTH DAKOTA

6.7% 5.5% 5.1% 5.0% 31.4%

Plastics & Rubber Products Furniture & Related Products

TRADITIONAL INDUSTRIES: Agricultural production, mining TRA EXPANDING INDUSTRIES: Information technology (computer programming services, shared service centers-back offices, manufacturing software, electronic commerce), food processing, industrial and agricultural equipment manufacturing, electronics manufacturing, energy, renewable energy

SO SOUTH DAKOTA TRADITIONAL INDUSTRIES: Agriculture, manufacturing TRA

Other Manufacturing Industries

EXPANDING INDUSTRIES: Advanced manufacturing; bioscience; financial services; professional business services; energy; value-added agriculture; shooting, hunting, and outdoors

Other Manufacturing Industries

ported efforts by Norland International to develop a state-ofthe-art bottling system.

Meanwhile, a new tax law in Kansas is striving to grow private-sector jobs, lowering taxes for businesses and individuals alike. Taxpayers at all income levels saw their rates decrease, and small businesses were freed from paying taxes on non-wage business income. Another initiative, the Rural Opportunity Zones program, eliminates income taxes for up to five years for people who move into one of the designated counties, and pays up to $15,000 in student loan costs for

these new residents.

NUMEROUS ACCOLADES Organizations that gauge competitiveness and economic results are noticing these kinds of efforts and the growth they support. For example, 24/7 Wall St. recently named North Dakota the best-run state for the second consecutive year, and Nebraska was ranked third. CNBC put South Dakota at the top of the list in ranking “America’s Top States for Business 2013.”

South Dakota, North Dakota, Kansas, and Nebraska all were

Who we are. What we do.

Print media

Face to Face

Area Development Magazine

Consultants Forum Series

Since 1965 the industry’s most respected magazine

The industry’s best conference event for economic developers

Online media

Online database marketing

AreaDevelopment.com FacilityLocations.com E-Newsletters

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Plains

12/20/13

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Page 57

KANSAS

NORTH DAKOTA

BASIC BUSINESS TAXES

BASIC BUSINESS TAXES

CORPORATE INCOME TAX: 4 percent of net income; in addition, net income in excess of $50,000 is subject to a 3 percent surtax for 2011 and thereafter. Effective tax year 2013, the non-wage business income for subchapter S corporations, limited liability corporations, limited liability partnerships, and sole proprietorships will be exempt from income tax in Kansas. Individual income tax rates are reduced as well to 4.9 percent as the top rate. The individual income tax rates will continue to fall through 2018 with the top rate being reduced to 3.9 percent. SALES AND USE TAX: 6.15 percent state rate on gross receipts from sales or leases of tangible personal property and certain services; cities and counties may collect an additional maximum of 1 percent. PROPERTY TAX: Commercial and industrial machinery and equipment are exempt from property tax by state law; for real property, counties assess and administer the property tax; each taxing district makes its own levy within the limits set by state statute; residential property is taxed at 11.5 percent of fair market value and commercial and industrial property is taxed at 25 percent.

CORPORATE INCOME TAX: Effective Jan. 1, 2013, a new corporate income tax rate lowered the percentage range at which corporations are taxed; currently, the corporate income tax rate range is 1.48 to 4.53 percent with exemptions.

SALES TAX: 5 percent on retail sales of tangible personal property and certain services; more than 100 cities levy local tax, ranging between 1 and 2.5 percent.

PROPERTY TAX: Administered, levied (at different levels), collected, and expended at the local level to support schools, counties, cities, townships, and other local government units; state does not levy a property tax for general government operations (with exemptions); five-year property tax exemption for new and expanding businesses with two extensions available. UNEMPLOYMENT TAX: 1.25 percent of the first $31,800 of wages per employee for new businesses, nonconstruction WORKERS' COMPENSATION TAX: Rates apply to only the first $31,800 of wages per employee. Employers may be eligible for a discount on their premium.

SOUTH DAKOTA

NEBRASKA

BASIC BUSINESS TAXES

BASIC BUSINESS TAXES CORPORATE INCOME TAX: 5.58 percent on the first $50,000 and 7.81 percent on income of more than $50,000, based on federal taxable income attributable to Nebraska operations. CORPORATE ORGANIZATION FILING FEES: Based on firm's paid-up capital stock; rate ranges from $60 for $10,000 or less of authorized capital stock to $300 for more than $100,000 plus $3 per $1,000 in excess of $100,000; annual occupation tax also assessed. SALES TAX: 5.5 percent sales tax on gross receipts from retail sales and rental of tangible personal property; certain utilities; admissions; producing, fabricating, processing, printing, or imprinting; and lodging rentals for short periods. USE TAX: Tax on storage, use, or consumption of tangible personal property purchased at retail when the sales tax has not been paid.

PROPERTY TAX: Levied by county and municipal subdivisions, including school districts; all property assessed at 100 percent of actual value; industrial sites located outside Nebraska cities normally taxed at a lower rate than property within city limits.

among the top 10 pro-business states rated by Pollina Corporate Real Estate. And Kansas was one of the Gold Shovel recipients in Area

Development’s 2013 Gold and Silver Shovel Awards, tallying $2.3 billion in capital investment in 2012. — Steve Stackhouse-Kaelble

CORPORATE INCOME TAX: None. BANK AND FINANCIAL CORPORATION EXCISE TAX: Varies from 0.25 to 6 percent depending on net income. RETAIL OCCUPATIONAL SALES AND USE TAX: 4 percent on retail sales of tangible personal property and certain services; cities may option a local sales tax of up to 2 percent on the gross receipts of all sales. CONTRACTORS' EXCISE TAX: 2 percent tax imposed on the gross receipts of contractors who are engaged in construction services or realty improvements in South Dakota. PROPERTY TAX: Local real property taxes vary from 1 percent to 3 percent of the taxable value of the structure; no personal property tax and no business inventory tax.

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AREA DEVELOPMENT | 2014 Annual Directory 13/12/13 8:30 PM57

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SOUTH Alabama

Arkansas

Kentucky

Louisiana

Beyond Automotive, the South Revs Up Growth Across Diverse Industries A highly skilled work force and good transportation infrastructure are also drawing aerospace and other high-tech companies.

AUTOMOTIVE SHINES SPOTLIGHT ON REGION Automotive continues to be a powerful engine for growth across much of the South. Yet the region is firing on all cylinders, with expansion occurring across a variety of sectors ranging from aerospace and advanced manufacturing to data centers and technology.

As more of the old line industries that dominated the region, such as textiles, moved off shore, the resurgence in automotive manufacturing is one of the key industries that has fueled economic growth throughout the region. “That has continued, albeit in different volumes and different project types,” says Eric Stavriotis, a senior vice president at CBRE in Chicago.

Eight of the top automakers, ranging from Ford to Hyundai, all have major manufacturing facili-

ties in the South, namely in the states of Alabama, Kentucky, Mississippi, and Tennessee. Those major auto manufacturing hubs continue to fuel growth among major OEMs and suppliers.

For example, Korean tire manufacturer Hankook Tire Co. announced in October that it would invest $800 million in a state-of-the-art manufacturing facility in Clarksville, Tenn., that will

Mississippi

create 1,800 new jobs. The company is expected to break ground on the new plant by the end of 2014 and begin tire production by 2016.

That announcement comes on the heels of another announcement earlier this spring that Tokyobased Yokohama Tire Corp. will locate a commercial truck tire plant in West Point, Miss. The company plans to invest $300 million in the initial project that will create 500 new jobs, with potential future expansion that could bring total employment at the plant up to 2,000 jobs.

Automotive has helped to shine a spotlight on the region for other industries and emphasized area strengths such as the

STATE

POPULATION

LABOR FORCE

Alabama

4,822,023

2,014,298

(2012 estimate)

(August 2013)

2,949,131

1,353,800

(2012 estimate)

(2012 annual average)

Kentucky

4,380,415

2,076,466

(2012)

(2012)

Louisiana

4,601,893

2,092,605

(2012 estimate)

(August 2013 seasonally adjusted)

Arkansas

Mississippi Tennessee

Tennessee

employment base and transportation infrastructure. In addition, companies also have had the chance to see how the states have put together incentive packages and worked with companies on expansion and relocation projects, says Stavriotis.

“Those types of investments do become a catalyst for other industries downstream,” he says.

TARGETING ADVANCED MANUFACTURING Automotive — along with a broader focus on advanced manufacturing

RIGHT TO WORK Alabama Arkansas Kentucky Louisiana Mississippi Tennessee

Yes Yes No Yes Yes Yes

COLLEGE GRADUATES (Age 25 and over)*

2,984,926

1,333,100

(2012 U.S. Census)

(2012 annual average)

6,456,243

3,113,600

(2012)

(2012)

Alabama Arkansas Kentucky Louisiana Mississippi Tennessee

22.0% 18.9% 21.0% 21.4% 19.6% 23.0%

*Bachelor’s degree or higher; U.S. Census Bureau, ACS, 2009

THIS REGIONAL REPORT SPONSORED BY: MISSISSIPPI RANKS

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MISSISSIPPI RANKS

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DOING BUSINESS LOWER SPEED THAN THE NATIONAL AVERAGE

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ALABAMA AL

ALABAMA Principal Manufacturing Industries

TRA TRADITIONAL INDUSTRIES: Agriculture, forestry, metalworking, chemicals, machinery EXPANDING INDUSTRIES: Transportation industries, information and biotechnology, research and development, aerospace, distribution and logistics, services, tourism

(Percentage of Employment)

20.4% 13.3% 9.9% 7.7% 6.2%

AR ARKANSAS

5.8%

Fabricated Metal Products Primary Metals Textile Mills & Products & Apparel

5.4% 5.1%

Plastics & Rubber Products Wood Products Paper

EXPANDING INDUSTRIES: Business services/telecommunications, health services/infotechnology, transportation equipment, biotechnology, aerospace, alternative energy

4.5% 4.1%

Machinery Chemicals

4.1%

KENTUCKY KE

Computer & Electronic Products

3.4%

Furniture and Related Products Other Manufacturing Industries

TRA TRADITIONAL INDUSTRIES: Food and kindred products, metals, paper, rubber/plastics, timber, transportation, agriculture

10.1%

TRA TRADITIONAL INDUSTRIES: Automotive, distribution and warehousing, food manufacturing, fabricated metals, chemicals, healthcare, distilling, equine, defense, agriculture, mining EXPANDING INDUSTRIES: Heathcare; finance; educational services; warehousing and storage; food manufacturing; transportation services; professional, scientific, and technical services

TRA TRADITIONAL INDUSTRIES: Oil and gas, petrochemicals, agriculture, timber, processed foods EXPANDING INDUSTRIES: Advanced manufacturing, agribusiness, clean tech, digital media and software, energy, entertainment, specialty healthcare, water management

MISSISSIPPI M TRA TRADITIONAL INDUSTRIES: Agriculture, chemicals, food processing, forest products, furniture, lumber and wood, shipbuilding EXPANDING INDUSTRIES: Automotive, aerospace, communications & information technology, energy, distribution centers, healthcare, plastics and polymers, steel and metal fabrication

TENNESSEE TE KEY SECTORS: Aerospace; automotive; chemicals and rubber and plastics; transportation, distribution, and logistics; energy technology; food and agribusiness; healthcare and medical devices; headquarters, R&D, and business services; manufacturing; and entertainment and media

jobs — continues to be a top focus for the region, including industries such as aerospace, metals, and

ARKANSAS Principal Manufacturing Industries (Percentage of Employment)

28.0% 9.2% 8.1%

LO LOUISIANA

60

Transportation Equipment Food

chemicals. Notably, aerospace is a thriving niche, and Alabama, Mississippi, and Louisiana are all mem-

AREA DEVELOPMENT | 2014 Annual Directory

7.4% 6.6% 6.6% 6.5% 5.6%

Food Products Fabricated Metals Transportation Equipment Machinery Rubber & Plastics Primary Metals Paper Wood Products

4.1%

Electrical Equipment & Appliances

2.1% 1.9%

Furniture Computers & Electronics

13.0%

Other Manufacturing Industries

bers of the Aerospace Alliance. Those three states join with Florida to promote the region as an aerospace corridor. Those states are home to major manufacturing and testing operations, as well as NASA facilities.

For example, Francebased Eurocopter announced in September that it would start work on expanding its plant in Columbus, Miss., to serve as a final assembly and test site for its AS350 helicopters,

FOR FREE SITE INFORMATION, CALL

the top-selling civil helicopter in the U.S. market. The plant is expected to be ready for assembly operations by Q4 2014.

“We are targeting aerospace, and we are working across state borders to promote the region, and we are finding success in winning some of those projects,” says Adam Murray, a target market specialist for the Tennessee Valley Authority Economic Development.

The entire site selection process is getting more nuanced and more case-bycase depending on a particular business and its unique requirements. “If you were to draw a gross generalization around manufacturing, the Southeast continues to win more than its fair share of projects because of the pro-business environment and lower overall operating costs and high incentives structure that [these states] have set up,” says Stavriotis.

In addition to the myriad of tax credits and financial assistance packages available to today’s businesses throughout the South, there is a distinct emphasis on providing resources to support worker training and development. Louisiana is certainly recognized for its efforts in this area with its FastStart program, which is a customized employee recruiting, screening, and training service that is available to eligible companies at no cost.

Another notable initiative to further expand advanced manufacturing in the region is an effort being led by the University of AlabamaHuntsville to land one of 15 regional Institutes for Manufacturing Innovation (IMIs) that are proposed by the Obama administration.

President Obama has proposed the National Network for Manufacturing

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TENNESSEE

KENTUCKY Principal Manufacturing Industries

Principal Manufacturing Industries

(Percentage of Employment)

(Percentage of Employment)

20.2%

Motor Vehicles, Bodies & Trailers & Parts Food

17.1% 11.0%

Transportation Equipment Fabricated Metals

Fabricated Metal Products Machinery Plastic & Rubber Products Chemicals Primary Metals Printing & Related Support Activities Electrical Equipment and Appliances Wood Products

10.6% 8.2% 7.8%

Food Products Machinery Chemicals

11.8% 8.6% 8.0% 6.3% 5.8% 5.2% 4.5% 4.3% 4.1% 21.2%

Other Manufacturing Industries

6.4% 39.0%

MISSISSIPPI Principal Manufacturing Industries (Percentage of Employment)

19.8% 17.9%

LOUISIANA Principal Manufacturing Industries (Percentage of Employment)

46.7% 31.0% 4.0% 3.5% 3.1% 2.8% 2.8% 6.1%

62

Petroleum & Coal Products Chemicals Food, Beverage, Tobacco Machinery Paper Manufacturing Fabricated Metal Products Other Transportation Equipment Other Manufacturing Industries

AREA DEVELOPMENT | AREA0212.indd 1

Rubber & Plastic Products Other Manufacturing Industries

16.6% 10.4% 9.4% 8.5% 6.5% 10.9%

2014 Annual Directory

Furniture and Wood Products Transportation Equipment Food and Beverage Petroleum, Chemicals and Plastics Primary and Fabricated Metals Machinery Computers and Electrical Other Manufacturing Industries

Innovation (NNMI) to promote advances and growth in the industry, and he is proposing funding the network with a one-time $1 billion investment.

The University of Alabama-Huntsville is specifically focusing on creating an institute that would promote digital manufacturing and design innovation. If that effort is successful, it could help to establish the area as not only a manufacturing hub, but also an R&D hub for digital manufacturing and design, notes Murray. “That is one example of how we are working across state borders to promote advanced manufacturing,” says Murray.

PURSUING HIGH-TECH JOBS States throughout the South are continuing to court advanced manufacturing businesses, but there also is a concentrated effort to diversify that business base and attract more higher-paying jobs in industries such as technology.

Louisiana has been very aggressive in pursuing technology, software develop-

FOR FREE SITE INFORMATION, CALL

ment, e-commerce, and media companies. Those efforts have paid off with the major coup of landing IBM. The firm selected Baton Rouge as the home of its new IBM Services Center. The $55 million project, which includes an office building and residential tower, broke ground in September, with completion set for mid-2015.

The new facility is expected to create 800 new direct jobs by the end of 2016.

Most people don’t consider Baton Rouge to be a hotbed for technology but, clearly, the state put some significant resources behind the project, says Stavriotis.

Those resources extend beyond assistance related to constructing the facility to focus on developing the educated work force that IBM will need: the state of Louisiana will provide $14 million over 10 years to expand higher-education programs designed primarily to increase the number of annual computer science graduates. At least 65 percent of those funds will be provided for expansion of the Computer Science

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ALABAMA

ARKANSAS

BASIC BUSINESS TAXES

BASIC BUSINESS TAXES

CORPORATE INCOME TAX: 6.5 percent of net income; deductions allowed for federal income tax paid or accrued for a lower effective rate of 4.5 percent.

SECRETARY OF STATE QUALIFICATION: Before transacting business in Alabama, a foreign corporation (corporation incorporated outside of Alabama) must qualify with the Alabama Secretary of State; foreign corporations must file an application for certificate of authority (form CD-2) with the Alabama Secretary of State along with a certified copy of the articles of incorporation and must pay a $175 qualification fee. ALABAMA BUSINESS PRIVILEGE TAX: The tax base is the taxpayer's net worth apportioned to Alabama; the rate ranges from $0.25 to $1.75 for each $1,000 of net worth in Alabama; minimum privilege tax is $100; maximum is $15,000, except for financial institutions, financial institution groups, and insurance companies, which have a maximum privilege tax liability of $3 million; an electing family limited liability entity is capped at $500. SALES AND USE TAX: 4 percent on gross proceeds of sales of tangible personal property and gross receipts of amusement businesses; 1.5 percent on manufacturing machinery and farm equipment; counties may impose additional tax.

PROPERTY TAX: State rate of 6.5 mills is based on 20 percent of fair market value of property not otherwise classified (including industrial); 10 percent of agricultural, forest, and residential property; 30 percent of fair market value of utility property; additional taxes levied by local jurisdictions; inventories, goods-in-process, and pollution- control equipment are exempt from property tax

CORPORATE INCOME TAX: 1 percent of net income on first $3,000; 2 percent on next $3,000; 3 percent on next $5,000; 5 percent on next $14,000; 6 percent on next $75,000; income over $100,000 is taxed at 6.5 percent. CORPORATE ORGANIZATION AND QUALIFICATION FEES: Domestic corporations - $50 for filing articles of incorporation; $100 for filing articles of merger or share exchange; foreign corporations - $300 for filing application for certificate of authority. CORPORATE FRANCHISE TAX: Domestic - 0.30 percent of proportion of subscribed capital stock employed in the state; foreign - 0.30 percent of proportion of capital stock representing property owned and used in business transactions in the state; minimum, $150. SALES (GROSS RECEIPTS) AND USE TAX: 6.5 percent gross proceeds of retail sales of tangible personal property, certain selected services and accommodations, with exemptions. PROPERTY TAX: Real and personal property is subject to taxation by cities, counties, and improvement districts at various rates; the assessed value is 20 percent of market fair value, and the average millage rate is 46.85 (2012).

Division of the School of Electrical Engineering and Computer Science at Louisiana State University.

Basically, the state has said that if we can get IBM to show up, it will build that technology cluster around them, notes Stavriotis. “That takes a lot of time and resources, and it is pretty impressive that the state could package something like that, and that IBM would

AREA0182.indd 1

be willing to take them up on that offer,” he adds.

DATA CENTERS & E-COMMERCE Another target industry for the Southern States is data centers. The South is emerging as a strong player in this market because the fiber and IT infrastructure is getting built to give companies the connectivity and speed that is very important

to the data center industry.

In addition, companies are becoming more comfortable with the existing work force.

“We have had quite a few success stories, both in the Valley and the South in general, of companies that have come and tested the market and been successful,” says Spencer Sessions, a target market specialist for

TVA Economic Development.

For example, UBS announced in August that the company would establish a new shared services center in Nashville that will represent a $36.5 million investment and create 1,000 new jobs over the next five years. The new UBS Nashville business solutions center will offer

BUSINESS LOCATION TRACKER FOR INFORMATION ABOUT RECENT BUSINESS LOCATIONS/EXPANSIONS IN THESE STATES GO TO w w w. A r e a D e v e l o p m e n t . c o m / N e w s I t e m s

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KENTUCKY

MISSISSIPPI

BASIC BUSINESS TAXES

BASIC BUSINESS TAXES

CORPORATE INCOME TAX: 4 percent of first $50,000 of taxable net income allocated to Kentucky; 5 percent on next $50,000; 6 percent on taxable income over $100,000. CORPORATION FRANCHISE TAX: None. SALES AND USE TAX: 6 percent of retail sales price of property sold, including utilities, that is used, consumed, distributed, or stored; 6 percent of rental charges and cost of admissions; no local sales tax. PROPERTY TAX: Real property is taxed at a state rate of $0.122 per $100 and is also taxed by local jurisdictions at varying rates; manufacturing machinery, telephone equipment, and pollution-control equipment are taxed only by the state at $0.15 per $100 assessed valuation.

CORPORATE INCOME TAX: 3 percent on first $5,000; 5 percent for income over $10,000 (exemptions). CORPORATE FRANCHISE TAX: $2.50 for each $1,000 of capital invested in the state. GENERAL RETAIL SALES TAX: 7 percent.

PROPERTY TAX: No state tax; local rates vary on real and tangible personal property with assessment ratio for most property at 15 percent of true value

TENNESSEE BASIC BUSINESS TAXES

LOUISIANA BASIC BUSINESS TAXES CORPORATE INCOME TAX: 4 percent on first $25,000; 5 percent on second $25,000; 6 percent on next $50,000; 7 percent on next $100,000; 8 percent over $200,000 based on net income of domestic and foreign corporations derived from Louisiana sources; federal income taxes are deductible in computing Louisiana net taxable income; state tax credits allowable under certain incentive programs can be used to offset all or part of corporate income taxes.

CORPORATE FRANCHISE TAX: $1.50 per $1,000 on first $300,000 of issued and outstanding capital stock, surplus, and undivided profits; $3.00 per $1,000 above $300,000; state tax credits allowable under certain incentive programs can be used to offset all or part of corporate franchise taxes. SALES AND USE TAX: 4 percent levied on sale of tangible personal property at retail, as well as the use, consumption, distribution, or storage of tangible personal property and the sale of services in the state; 1 to 5 percent local rate; several exemptions provided for sales tax; electricity, water, natural gas, machinery and equipment used by manufacturers are exempt from Louisiana sales tax. PROPERTY TAX: Statewide average effective rate; 1 percent of land FMV and 1.5 percent of businesses' capital assets FMV; levied by cities and parishes (Louisiana offers an ad valorem tax, 10-year, 100 percent abatement for qualified new capital investments.)

expanded business services in support of UBS’ wealth management and investment banking divisions.

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UBS currently provides operations support in Nashville through over 200 employees, in addition to

2014 Annual Directory

SALES AND USE TAX: 7 percent state (food 5 percent) and 1.5–2.75 percent local.

PROPERTY TAX: Local only; 2012 median rate per $100 of assessed value for counties was $2.22. EXCISE TAX: 6.5 percent of Tennessee taxable income FRANCHISE TAX: $0.25 per $100 value of the greater of net worth or real and tangible property in Tennessee

its full service Wealth Management office.

To further entice large data center projects to locate in Alabama, the state passed new legislation last year that enhances its existing sales, use, and property tax abatements available to qualifying projects. Both Louisiana and Mississippi also offer incentives specific to data center projects.

The South also continues to garner attention for distribution and e-commerce.

For companies that are looking to fulfill a major distribution or warehouse compo-

FOR FREE SITE INFORMATION, CALL

nent, Louisville and Memphis automatically jump to the top of the short list because of their ability to get product to their end destinations very quickly.

Louisville is a major distribution hub for UPS, while Memphis is a key hub for FedEx. The UPS Worldport Louisville is the largest automated package handling facility in the world. It can handle up to 3.6 million packages per day, and more than 140 companies have located in Kentucky just to be close to the UPS hub. — Beth Mattson-Teig

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SOUTH-ATLANTIC Florida

Georgia

North Carolina

South Carolina

The South Atlantic Capitalizes on Its Pro-Business Climate Customized incentives and work force training, as well as its right-to-work environment, are drawing auto, aero, life sciences, and other advanced manufacturers to the South Atlantic.

The South Atlantic States have carefully cultivated a business-friendly environment that goes well beyond simple Southern hospitality. A lot of time, effort, and money have gone into creating that pro-business atmosphere that includes a myriad of assets including the tax structure, regulatory environment, and work force development and incentive programs.

That investment is paying big dividends in attracting companies across industries ranging from agribusiness and advanced manufacturing to 3D imaging and biotech.

“There is a lot of activity in that area of the country, because number one, there is a good business climate,” says Larry Gigerich, managing director at Ginovus, an Indianapolis-based site selection firm.

A COMPETITIVE BUSINESS CLIMATE In particular, Georgia, South Carolina, and North Carolina were all ranked in the top five by the location consultants in Area Development’s most recent “Top States for Doing Business” survey. The region also leverages key strengths such as a strong transportation infrastructure — with

exceptional interstate, rail, and port access — and a growing population base.

The I-95 prime transportation corridor runs all the way from the Northeast to Florida. And ports in Virginia, the Carolinas, Florida, and Georgia have helped to attract international firms to the region.

According to Kathy Mussio, a managing partner at Atlas Insight, a national site selection firm based in Bucks County, Pa., there are a number of reasons driving growth in the South Atlantic region. One of the contributing factors is a shift in activity from union states to nonunion or right-to-work states where companies can find lower-cost, qualified labor.

“So, when you look at the growth trend over the last 10 years, the growth has really been, for the most part, in

Virginia

those non-union states where businesses are looking to expand,” Mussio says.

Additionally, the South Atlantic States are often tweaking incentives to adapt to industry changes and competitive pressures from neighboring states.

For example, Georgia passed new legislation last year that added another $111.8 million to the state’s discretionary “deal closing” funds, including the OneGeorgia Edge Fund and Georgia’s REBA fund.

The state also eliminated local and state sales and use tax on energy used in manufacturing.

POPULATION AND JOB GROWTH The region’s job growth goes hand-in-hand with population growth. Four of the six states in the South Atlantic ranked among the top 10 states in the country for population growth between 2001 and 2011.

North Carolina ranked sixth with an increase of 18 percent, followed by Georgia at 17.1 percent, Florida at 16.2 percent, and South Carolina at 15.2 percent, according to the U.S. Census Bureau.

STATE

POPULATION

LABOR FORCE

Florida

19,317,568

9,368,877

(2012)

(2012)

Georgia

9,919,945

4,846,289

(2012 U.S. Census estimate)

(2012 annual average, U.S. Census)

North Carolina

9,752,073

4,688,561

(2012)

(August 2013 seasonally adjusted)

South Carolina

4,723,723

2,161,811

(July 2012)

(August 2013)

Virginia

8,185,867

4,333,724

(July 1, 2012 estimate)

(August 2012)

West Virginia

1,853,000

805,600

West Virginia

“Those states do have good in-migration, because that’s where a lot of the jobs are growing,” says Mussio.

The South Atlantic states also have excelled in training those workers. On the human capital side, the Carolinas and Georgia have been leaders in the country for their work force development initiatives. Georgia, for example, has its Quick Start program, which provides customized work force training free to qualifying businesses. Although that program has been around for more than 45 years, what the state has done well is continue to make enhancements to that program, notes Gigerich. For instance, Quick Start has created certifications for specific industries, such as a certified warehouse worker

RIGHT TO WORK Florida Georgia North Carolina South Carolina Virginia West Virginia

Yes Yes Yes Yes Yes No

COLLEGE GRADUATES (Age 25 and over)*

(2012)

Florida Georgia North Carolina South Carolina Virginia West Virginia

25.3% 27.5% 26.5% 24.3% 34.0% 17.3%

*Bachelor’s degree or higher; U.S. Census Bureau, ACS, 2009

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SOUTH-ATLANTIC FLORIDA FL

NORTH CAROLINA NO

TRA TRADITIONAL INDUSTRIES: Electronics and electronic equipment, printing and publishing, fabricated metals, industrial machinery and equipment, lumber and wood products, business services, tourism, agriculture

TRA TRADITIONAL INDUSTRIES: Agriculture, textiles and apparel, wood products, furniture

EXPANDING INDUSTRIES: Cleantech, life sciences, infotech, aviation/aerospace, defense/homeland security, logistics/distribution, financial/professional services

EXPANDING INDUSTRIES: Alternative energy, green technology, defense, aerospace, pharmaceutical and bio-manufacturing, nanotechnology, R&D, information technology, advanced manufacturing, banking and finance, automotive components, plastics, call centers, data centers

GE GEORGIA

SO SOUTH CAROLINA

STR STRATEGIC INDUSTRIES: Advanced manufacturing, automotive, aerospace, health sciences and advanced technology, business and financial services, logistics, energy, defense, agribusiness, food processing, film, music, digital entertainment, tourism

TRA TRADITIONAL INDUSTRIES: Automotive-related industries, forestry and wood products, metalworking, plastics, textiles, agriculture, tourism

EXPANDING INDUSTRIES: Business services/telecommunications, health services/infotechnology, transportation equipment, biotechnology, aerospace, alternative energy

to assist in hiring for logistics/distribution firms.

“They do have competitive economic development incentives, which at the end of the process has become more important. But, clearly, the focus on work force development and great infrastructure has served that area well,” adds Gigerich.

MANUFACTURING REMAINS KEY Traditionally, the South Atlantic States thrived on industries such as textiles, energy, paper, and furniture. Many of these states struggled as those manufac-

turing businesses declined or moved offshore. These days, the region is once again gaining momentum in not only capturing new manufacturing businesses, but also “going up the pyramid” to attract new industries such as life sciences, aerospace, and more advanced manufacturing, says Andy Mace, managing director of Global Business Consulting, Supply Chain Solutions at Cushman & Wakefield in York, Pa. Advanced manufacturing continues to be a staple industry for the South Atlantic, and the region is benefiting from the

EXPANDING INDUSTRIES: Advanced materials, agribusiness, aviation and aerospace, automotive, rubber, renewable energy industries

rebound in the automotive sector. Automakers are expected to build more than 16 million light vehicles in North America this year, which is the highest output since 2002, according to a an industry forecast from IHS Automotive. “What you have seen is auto OEMs, and even the auto manufacturers themselves, doing more of the expansions in the Southeast because they can get an ample, willing, and qualified work force — and have the added benefit of expanding in a right-towork state,” says Mussio.

Most notably, Georgia is home to a major manufac-

FLORIDA Principal Manufacturing Industries (Percentage of Employment)

13.8%

9.2%

Computer & Electronic Products Transportation Equipment Fabricated Metal Products Food

7.6%

Machinery

5.8% 5.7%

Chemicals Printing & Related Support Activities Nonmetallic Mineral Products Plastics & Rubber Products Other Manufacturing Industries

11.0% 9.6%

4.9% 3.6% 28.9%

THIS REGIONAL REPORT SPONSORED BY:

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turing plant for Kia, while BMW and Daimler have operations in South Carolina. South Koreabased Hyundai Dymos announced in September that it would open a new manufacturing plant in West Point, Ga., to supply Kia Motors Manufacturing Georgia. The new facility involves a $35 million investment and will create 350 manufacturing jobs.

South Carolina has continued to expand and advance its presence in the automotive sector ever since BMW first started operating in the state in the early1990s. The state has invested time and energy in its education resources to

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improve training, as well as create centers of excellence specific to automotive.

Those efforts are creating strong tailwinds for the state in attracting new business in other sectors, notes Mace.

South Carolina recently made the short list to land a new manufacturing facility for Boeing’s new 777X aircraft. Boeing, which already has a significant manufacturing presence in Charleston, is one of more than 100 aviation and aerospace-related companies that have operations in South Carolina.

Boeing is expected to announce its final decision on the location of its new plant in early 2014.

VIRGINIA VI TRA TRADITIONAL INDUSTRIES: Transportation equipment, electronic equipment, machinery, metal fabricating, printing, food processing, chemicals, plastics, wood products, tourism, maritime shipping, warehousing, information technology EXPANDING INDUSTRIES: Aerospace, composites and advanced materials, advanced manufacturing, global logistics, alternative energy, life sciences, homeland security, cyber security, modeling and simulation, data centers, finance and insurance, corporate headquarters

W WEST VIRGINIA TRA TRADITIONAL INDUSTRIES: Chemicals, coal, plastics, steel, glass, fabricated metals, automotive, wood products, tourism EXPANDING INDUSTRIES: Biometrics/biomedical technology, energy/environmental technology, transportation equipment, aerospace, business services, information technology, printing, warehouse distribution

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SOUTH-ATLANTIC DIVERSITY CONTINUES TO GROW Although the South Atlantic is noted for key clusters such as automotive, aerospace, distribution, IT, and manufacturing, the list of core industries is long and continues to grow. North Carolina is known for its Research Triangle and has created a very strong life sciences cluster. The state consistently ranks among the top five states for bioscience development. In fact, North Carolina’s biotech industry now spans some 500 bioscience companies that employ more than 58,000 people.

Georgia, on its own, has a large economy and a pro-active economic development

BLUEPRINT FOR SUCCESS: Economic Development Solutions in North Carolina

GEORGIA Principal Manufacturing Industries (Percentage of Employment)

17.6% 12.6%

Food Textile Mills & Products

12.5%

Transportation Equipment Fabricated Metal Products Chemicals

7.1% 5.4%

Proven, comprehensive economic development solutions in North Carolina.

North Carolina’s Public Power communities are among the best places in the country to live and do business.

5.4%

Plastics & Rubber Products

5.4%

Paper Products

4.2% 29.8%

NORTH CAROLINA Principal Manufacturing Industries (Percentage of Employment)

13.9% 9.7% 9.6% 7.6%

ElectriCities’ seasoned, experienced Economic Development staff is dedicated to helping these communities continue to grow and prosper. From site

8.1%

selection to targeted recruiting to grant assistance and marketing, we’ve got all the tools and expertise you need to successfully develop your business.

Brenda Daniels Manager, Economic Development 800.768.7697, ext. 6363 bdaniels@electricities.org www.electricities.com

Wood Products Other Manufacturing Industries

7.5% 6.9%

Food Beverage & Tobacco Products Textiles & Apparel Chemicals Computer & Electronic Products Fabricated Metal Products Furniture & Related Products Rubber & Plastic Products

6.9% 6.7%

Machinery Transportation Equipment

4.9%

Electrical Equipment & Appliances

3.6% 14.6%

Wood Products Other Manufacturing Industries

Click on to the world’s foremost economic development Website — and CONNECT to the WORLD!

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SouthAtlantic

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arm that has helped it land a number of major national and international projects.

One of the most notable examples is the announcement last year that Baxter International Inc. would spend up to $1 billion to open a new production center near Atlanta that will employ more than 1,500 workers. More recently, the Israeli firm Caesarstone selected Richmond Hill, Ga., for its new U.S.-based manufacturing plant. The company, which makes highquality engineered quartz surfaces, is expected to invest between $70 million and $100 million in a facility that will create 180 jobs.

The South Atlantic has also succeeded in winning major headquarters loca-

Page 69

tions in the past year.

“Companies can still get the work force that they need, but they can do it at a lower cost than if they were in say Boston or New York or Chicago, with an overall operating cost savings,” says Mussio.

The Hertz Corp. announced earlier this spring that it plans to relocate its headquarters from Park Ridge, N.J. to Estero, Fla. The company established a temporary headquarters in Naples, Fla., while its new facility is under construction.

The move is expected to bring 700 new jobs, with approximately 300 existing employees relocating to Florida and the creation of 400 new jobs.

The Carolinas, Georgia,

SOUTH CAROLINA

VIRGINIA

Principal Manufacturing Industries

Principal Manufacturing Industries

(Percentage of Employment)

(Percentage of Employment)

15.2%

17.2%

Transportation Equipment

12.8%

Food Products

8.1%

Fabricated Metal Products

7.2%

Machinery

6.6%

Plastic & Rubber Products

Transportation Equipment Primary Metal & Fabricated Metal Products Printing, Paper, Wood Products & Furniture

13.9%

12.1%

10.0%

Machinery

8.8% 8.7%

Textiles & Apparel Rubber & Plastics Products

8.3%

Food

8.2% 7.9%

Chemicals Computers & Electrical Products/Appliances Other Manufacturing Industries

6.9%

6.0%

Chemicals

5.9%

Computer & Electronic Products

5.5% 4.6%

Wood Products Printing & Related Support Activities Furniture & Related Products Other Manufacturing Industries

4.1% 22.1%

SELECT GEORGIA AND CUT THE RED TAPE. We help make it easy for companies to grow and thrive in Georgia. Our project managers, engineers, research experts and marketing professionals work closely with the Georgia Department of Economic Development, as well as other state and local partners, to ensure your company’s successful expansion or relocation to our state. To see how, visit SelectGeorgia.com.

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SOUTH-ATLANTIC and Florida have shown the most momentum in the region. However, Virginia and West Virginia have their own strengths.

Although known more for its energy industry, West Virginia has succeeded in attracting a variety of industries, including automotive suppliers, thanks to their ability to serve automakers both in the Midwest and Southeast. And despite sequestration and the focus on trimming government spending, federal contractors continue to choose to locate in Virginia to be close to Washington, D.C. — Beth Mattson-Teig

FLORIDA

NORTH CAROLINA

BASIC BUSINESS TAXES

BASIC BUSINESS TAXES

CORPORATE INCOME TAX: 5.5 percent on apportioned income basis; $50,000 exemption subtracted to compare net Florida taxable income; S-corporations (with exemptions) and partnerships pay no state corporate income tax on earnings.

SALES TAX: 6 percent plus county option (current highest is 1.5 percent).

PROPERTY TAX: Locally fixed rates at fair market value on real and tangible personal property; no state levy on real and tangible property

CORPORATE INCOME TAX: 6 percent of net income apportionable and allowable to the state. The rate will drop to 5% in 2015 and will decrease further if revenue projections are met in the coming years. SALES AND USE TAX: Combined general rate: 6.75 percent (state sales tax rate: 4.75 percent; local sales tax: 2.0 percent); additional counties with 0.25 percent local sales tax: Alexander, Buncombe, Cabarrus, Catawba, Cumberland, Duplin, Durham, Edgecombe, Greene, Halifax, Haywood, Hertford, Lee, Martin, Montgomery, New Hanover, Onslow, Orange, Pitt, Randolph, Robeson, Rowan, Sampson, Surry and Wilkes. Durham, Orange and Mecklenburg Counties have passed a 0.5% transportation tax. PROPERTY TAX: Local government levies on real and tangible personal property located within their jurisdictions; property assessed at 100 percent of appraised value; real property must be revalued every eight years but is revalued every four years in some jurisdictions.

GEORGIA BASIC BUSINESS TAXES CORPORATE INCOME TAX: 6 percent of income apportioned to Georgia (single sales factor formula for corporate income tax). SALES TAX: 4 percent; counties levy an additional 2-3 percent local sales tax. PROPERTY TAX: Millage rates vary by county and city.

BUSINESS LOCATION TRACKER FOR INFORMATION ABOUT RECENT BUSINESS LOCATIONS/EXPANSIONS IN THESE STATES GO TO w w w. A r e a D e v e l o p m e n t . c o m / N e w s I t e m s

NEW ENERGY

AWAITS.

Change has its advantages. For your business, South Carolina and Santee Cooper offer change in the form of an attractive tax base; low-cost, reliable electricity; right to work workforce; development opportunities and a host of other competitive advantages.

Plus, a quality of life graced with Southern hospitality that will, well, change your life.

And Santee Cooper, South Carolina’s largest producer of electricity, will be there to power your success.

For more information, contact us at:

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MEANINGFUL INCENTIVES SOUTH CAROLINA COMPETITIVE WAGES

BASIC BUSINESS TAXES CORPORATE INCOME TAX: 5 percent of taxable income derived from South Carolina operations; a single-factor sales formula for apportionment.

SALES AND USE TAX: 6 percent on gross receipts from retail sales or leases of tangible personal property; local governments may also levy local sales and use taxes; exemptions include manufacturing production machinery and repair parts; manufacturing materials that become an integral part of the finished product; coal or other fuel for manufacturers, transportation companies, electric power companies, and processors; industrial electricity and other fuels used in manufacturing tangible personal property; R&D equipment; manufacturers' air, water, and noise pollution-control equipment; material- handling equipment in manufacturing and distribution facilities investing at least $35 million; packaging materials; long-distance telecommunications services, including 800 services; parts and supplies used to repair or condition aircraft owned or leased by the federal government or commercial air carriers; an exemption for construction materials used in manufacturing or distribution facilities investing at least $100 million over 18 months; an exemption for computer equipment and electricity of a data center investing at least $50 million and creating and maintaining at least 25 jobs meeting certain wage requirements over five years. PROPERTY TAX: No statewide tax on real or personal property; millage rates set locally; real property is appraised; manufacturing real property is assessed at 10.5 percent, and any other commercial real property is assessed at 6 percent of fair market value; personal property of a manufacturer or any other commercial personal property is assessed at 10.5 percent of fair market value; personal property is allowed to depreciate at a rate established by state law down to a residual level of 10 percent of the original property value; five-year property tax abatement from county operating taxes for new and expanding manufacturing and R&D facilities investing at least $50,000 and corporate headquarters, office, and distribution facilities investing at least $50,000 and creating at least 75 new full-time jobs; all inventories, intangible property, and pollution-control equipment exempt; fee-in-lieu of property taxes may be offered at the discretion of a county and can reduce property tax 43–62 percent

FAVORABLE TAX CLIMATE

LOCATED ON I-95 SM

PERMITTING

What’s on YOUR list?

FLORIDA’S SPACE COAST: America’s High-Tech Titan.

#1 Highest concentration of high-tech and moderately high-tech manufacturing jobs in the U.S. Brookings Institute, 2012

VIRGINIA BASIC BUSINESS TAXES CORPORATE INCOME TAX: 6 percent of federal taxable income, with modifications. SALES AND USE TAX: 5 percent (4 percent state plus 1 percent local tax) in all counties and cities; broad tax exemptions for manufacturers and R&D are available. PROPERTY TAX: Not taxed at the state level and varies among local entities; real property assessed at 100 percent of fair market value; business personal property (including machinery and tools) assessed at varying percentage of original cost

#1 Most concentrated high-tech economy in Florida Milken Institute, 2013

WEST VIRGINIA BASIC BUSINESS TAXES CORPORATE INCOME TAX: Corporation net income tax is imposed annually at a 2013 rate of 7.00 percent of federal taxable income allocated and apportioned to West Virginia. There is a scheduled phased tax rate reduction intended to bring the tax rate to 6.5 percent by 2014. BUSINESS FRANCHISE TAX: The tax base is the net worth of the corporation or partnership as determined for federal income tax purposes. The 2013 tax rate is 0.20 percent of the tax base apportioned to West Virginia, or $50, whichever is greater. There will be an annual phased reduction in the tax; it is scheduled to be eliminated in 2015. CONSUMERS’ SALES AND SERVICE TAX (CSST) AND USE TAX: West Virginia has a 6 percent consumers’ sales and service tax and a use tax. Sales of goods and services to a manufacturer for direct use in manufacturing are exempt from CSST (for in-state purchases) and from the use tax (for out-of-state purchases).

BUSINESS REGISTRATION TAX: This is a one-time $30 tax required for each location in which business activity is conducted. Businesses generating annual gross income of less than $4,000 are exempt from payment but still must file to obtain the certificate. Business registration certificates issued on or after July 1, 2010 are issued on a permanent basis and not subject to renewal.

PROPERTY TAX: Ad valorem property taxes are local taxes; assessed value of non-utility property is set locally by elected county officials.

Where LOW OPERATING COSTS and WORLD-CLASS WORKFORCE MEET. Contact

Gregory J. Weiner, CEcD

321-638-2000

gweiner@SpaceCoastEDC.org

www.SpaceCoastEDC.org

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SOUTHWEST Arizona

New Mexico

Reaching for the Stars in the Southwest Most of the Southwest is enjoying better job growth than the nation as a whole, and all of these states have ramped up their economic development efforts.

There are lots of wideopen spaces across the Southwest, plenty of desert and beautiful things to see.

There’s also more innovation and cutting-edge technology development than many outsiders may realize. And new jobs are sprouting all over — three of the four states in this region enjoy jobless rates below the national average.

JOB GROWTH Texas, in particular, is creating jobs at a powerful clip.

Its energy sector continues to be an economic engine — no surprise there — but many of the biggest economic development prizes recently have involved tech-

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nology and financial services.

The state boasts a long list of announcements with new job figures in the triple digits (and occasionally quadruple digits): 1,000 jobs at GEICO, 200 at Oracle, and 680 at USAA, for example. And the first smartphone to be assembled in the U.S. hails

Oklahoma

Texas

from the Flextronics plant, where Motorola phone assembly promises up to 2,500 new jobs.

One of the biggest stories out of Texas in the past year or so, though, was the announcement of the new Apple Inc. campus in Austin, where more than 3,000 new jobs could grow in the next decade, adding to the more than 3,000 Apple jobs already in town. It was a huge feather in the cowboy hat of the Lone Star State, and helped Texas earn one of Area Development’s Gold Shovel awards.

Truth be told, technology giant Apple is making a big

STATE

POPULATION

LABOR FORCE

Arizona

6,498,569

3,029,300

2,059,179

929,785

New Mexico

(2010 Census)

Oklahoma

Texas

3,814,820

1,807,662

(2012 Census est.)

(BLS August 2013 seasonally adjusted)

26,059,203

12,770,932

(2012 estimate)

(August 2012)

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mark across the whole Southwest region, not just Texas, as it brings a decent chunk of manufacturing and other services back to North America. Arizona was one of the states that lost out to Texas in that Apple announcement, but more recently, the company made a big splash in Mesa with plans to buy an old factory for sapphire glass supplier

RIGHT TO WORK Arizona New Mexico Oklahoma Texas

Yes No Yes Yes

COLLEGE GRADUATES (Age 25 and over)*

Arizona New Mexico Oklahoma Texas

25.6% 25.3% 22.7% 25.5%

*Bachelor’s degree or higher; U.S. Census Bureau, ACS, 2009

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&

L I V E .

LUBBOCKEDA.ORG

Workforce Data and Population Statistics Cost of Living, Tax and Utility Information Lubbock Business Park and Lubbock Rail Port Available Real Estate and Interactive Maps

800.687.5330 | Lubbock, Texas

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Midland Growth

#1

Per capita real GDP by metro area

Midland Workforce

68%

Increase in civilian labor force since 2000

Midland Property

200

Acres available for ĂǀŝĂƟŽŶ ĚĞǀĞůŽƉŵĞŶƚ

Future home to

MIDLAND INTERNATIONAL AIRPORT

Midland’s Entrada Business Park and the David Mims Business Park offer an additional 89 acres for industrial development. www.midlandtxedc.com Pam Welch (432) 686-3571

74

GT Advanced Technologies. The project is expected to create up to 700 manufacturing jobs along with 1,300 temporary construction and related jobs needed to get the facility up and running.

Other recent successes in Arizona include the announcement that California-based data and online service provider Gigya has opened up in Phoenix and plans to hire up to 200.

“Arizona’s proximity to California represents tremendous opportunity for Californiabased companies like Gigya looking to expand,” Sandra Watson, president and CEO of the Arizona Commerce Authority, noted when the announcement was made. Other tech companies are growing, too, including Garmin in Chandler and GoDaddy in Tempe.

Arizona has had a tougher time bouncing back from the recession than many states. Just seven states lost more jobs than the 297,000 that evaporated between December 2007 and February 2010 — that was 11 percent of the state’s workers — and only one state lost a greater proportion. Since bottoming out, the state has recovered just over 40 percent of its losses, but the national economy is approaching 80 percent. Even so, its governmental actions have been winning favor and its gross domestic product is bouncing back.

REACHING FOR THE STARS New Mexico is literally reaching for the stars in its economic development efforts. Its Spaceport America is the world’s first spaceport built from the ground up to host private space ventures — a prominent tenant is Sir Richard Branson’s Virgin Galactic commercial passenger space line.

Space Exploration Technologies Corp., or SpaceX, was a new tenant in 2013. The company is working on its Grasshopper project, creating technology to enable a rocket to make a vertical landing and return to the launch pad intact, as opposed to burning up when reentering the atmosphere.

There’s plenty of history to be found across New Mexico — one reason tourists visit — but there’s a whole lot of future within the borders, too. Fueling innovation is a strong engineering sector in Albuquerque, which Forbes has ranked as high as seventh among the nation’s engineering hubs.

Meanwhile, General Dynamics Information Technology recently announced that 200 new back-office support jobs are on the way to Las Cruces, New Mexico, where it will add onto

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ARIZONA Principal Manufacturing Industries (Percentage of Employment)

34.6% 17.8% 9.7% 7.8% 6.1% 3.4%

2.5% 1.8% 1.5% 14.8%

Computer & Electronic Products Transportation Equipment Fabricated Metal Products Food & Beverage Chemical Products Machinery & Equipment for Manufacturing Nonmetallic Mineral Products Printing & Related Support Activities Furniture and Related Products Other Manufacturing Industries

NEW MEXICO Principal Manufacturing Industries (Percentage of Employment)

29.6% 16.1% 7.6% 6.4% 4.2% 36.2%

Computer & Electronic Products Food Processing Fabricated Metal Products Nonmetallic Mineral Products Transportation Equipment Other Manufacturing Industries

OKLAHOMA Principal Manufacturing Industries (Percentage of Employment)

21.8% 17.9% 10.7% 9.5%

Machinery Fabricated Metal Products Food Transportation Equipment

6.8%

Plastics and Rubber Products

4.9%

Nonmetallic Mineral Products Computer and Electronic Products

3.6% 3.4% 21.4%

Primary Metal Products Other Manufacturing Industries

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Odessa, Texas, was recently listed in Forbes magazine as the #2 MSA in America for Best Job Growth.

CNBC Study Ranks Texas as #1 Business Climate in the Nation.

Odessa, Texas, has experienced the fastest growth in the country from 2010, 15.2 percent - US Department of Commerce

Odessa, Texas

Now more than ever, Odessa is the right place in Texas to live, work and play. Located in the heart of the Permian Basin and known around the world, Odessa is the service, equipment and manufacturing technology hub for the oil and gas industry. A vibrant, energetic city in West Texas where the sky, literally, is the only limit.

Odessa Development Corporation • www.odessatex.com • 877-363-3772

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SOUTHWEST TEXAS Principal Manufacturing Industries (Percentage of Employment)

16.0% 12.2% 11.3% 10.7% 9.4% 8.8% 4.4% 3.9% 23.4%

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Fabricated Metal Products Machinery (Except Electrical) Computer and Electronic Products Transportation Equipment Food Products Chemical & Allied Products Plastic & Rubber Products Nonmetallic Mineral Products Other Manufacturing Industries

AREA0210.indd 1 AREA DEVELOPMENT

an existing facility. That news followed on the heels of announcements of nearly 200 more jobs at four companies in the southeastern part of the state: AGPower, Leprino Foods, Stewart Industries, and Dean Baldwin Painting.

In Oklahoma, manufacturing expansion has been in the news, as Whirlpool announced plans to add 150 workers, invest nearly $19 million, and make a new cooking product at its plant in Tulsa. Meanwhile, AT&T made plans to add more than 100 customersupport jobs in Oklahoma City, and Australia’s Ferra Engineering announced an expansion of its aerospacefocused operation.

All of this activity has

ARIZONA AR TRA TRADITIONAL INDUSTRIES: High-tech manufacturing (semiconductor and aerospace), software and information industries EXPANDING INDUSTRIES: Renewable energy, high-technology manufacturing, bio-industry (medical devices), environmental technology, optics, plastics and advanced composites

NEW MEXICO NE TAR TARGET INDUSTRIES: Aerospace and defense; advanced manufacturing; value-added agriculture; logistics, distribution, and transportation; emerging technology; back office and technical support; energy and natural resources; digital media

driven the region’s jobless rates down to 5.5 percent in Oklahoma, 6.2 percent in Texas, and 6.6 percent in New Mexico. Arizona’s most recent rate was 8.2 percent.

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The gains in the Texas gross domestic product were second-highest in the nation in 2012, at 4.8 percent.

Arizona’s GDP grew by 2.6 percent, and the figures

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OKLAHOMA OK

ARIZONA BASIC BUSINESS TAXES

TRADITIONAL INDUSTRIES: Manufacturing, energy TRA EXPANDING INDUSTRIES: Aerospace and defense (incl. unmanned aerial systems); energy (incl. compressed natural gas vehicles; distribution); agriculture and biosciences: (incl. manufacturing, commodity production and distribution, research and development); information and financial services (incl. data centers, banking, cybersecurity); distribution: (air, rail, water, and pipeline transportation; warehousing and storage)

TE TEXAS

CORPORATE INCOME TAX: 6.968 percent (2014: 6.5%; 2015: 6%; 2016: 5.5%; 2017: 4.9%). STATE LEVEL SALES TAX: 5.6 percent (city and county taxes may apply) PERSONAL INCOME TAX: 2.59-4.54 percent. Arizona has no corporate franchise tax, no business inventory tax, and no worldwide unitary tax; virtually all professional and personal services are exempt from transaction privilege (sales) taxes as is equipment used directly in manufacturing; Arizona allows a subtraction from income for dividends from controlled subsidiaries, allows an NOL to be carried forward for 20 subsequent taxable years, and has aggressive accelerated depreciation schedules for personal property.

NEW MEXICO BASIC BUSINESS TAXES

TRA TRADITIONAL INDUSTRIES: Semiconductors, chemicals and related products, computer manufacturing, food processing, oil and gas, transportation equipment EXPANDING INDUSTRIES: Aerospace, auto manufacturing, biotech and medical sciences, computer systems design, engineering, nanotechnology

CORPORATE INCOME TAX: 4.8 percent on the first $500,000 of net income; $24,000 plus 6.4 percent of income over $500,000 for income between $500,000 and $1 million; $56,000 plus 7.6 percent of income over $1 million. SALES TAX (GROSS RECEIPTS TAX): The gross receipts tax rate varies throughout the state from 5.125 percent to 8.6875 percent depending on the location of the business. Services that are exported from the state are not subject to New Mexico gross receipts tax.

These services must be produced by a business with a New Mexico office, sold to an out-of-state buyer, and delivered and initially used out-of-state. PROPERTY TAX: Real and tangible property is assessed at 33.3 percent of value, but many counties and municipalities offer abatements for new business locations and expansions.

PERSONAL INCOME TAX: New Mexico uses a four-bracket, graduated-rate table ranging from 1.7 percent to 4.9 percent of taxable income. There is no state inventory tax.

“Texas is a state where a dream can be put to work.”

-Governor Rick Perry

Texas Wide Open for Business™ is more than just our motto. It’s an environment we’ve created to foster business and entrepreneurship, to train the workforce of the future, and to help turn a dream into a reality. If you want your business to grow, come to Texas where Ƥ Ǥ

To learn more about opportunities in Texas visit TexasWideOpenforBusiness.com

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SOUTHWEST were 2.1 percent in Oklahoma, and 0.2 percent in New Mexico.

OKLAHOMA BASIC BUSINESS TAXES

NEW INITIATIVES Business and governmental leaders in the Southwest continue to seek new ways to spark new growth, in big cities and small towns alike. For example, among Arizona’s economic development pushes lately is a focus on rural development. Its Certified Sites program shines a spotlight on readyto-go rural commercial sites for development and expansion projects, and the Rural Economic Development Grant is geared toward rural communities making infrastructure improvements to attract business.

TEXAS New Mexico continues to work on improving the tax enviBASIC BUSINESS TAXES ronment, hoping to attract new businesses. As it stands, manufacturers enjoy a corporate income tax close to zero MARGINS TAX: Texas does not have a corporate income tax or an individual income tax. In 2008, Texas replaced its franchise tax with a Margins Tax, a tax of 1 percent percent, while other job creators have seen business taxes on gross receipts less compensation or cost of goods sold. (Retailers and wholesalers decline by 22 percent. The state also continues to capitalize have a rate of 0.5 percent.) Sole proprietorships and general partnerships are on its proximity to Mexico. Beyond efficient border crossings, exempt. Businesses with revenue under $1,000,000 are also exempt. SALES AND the state hopes to land global investments with the recently USE TAX: 6.25 percent on retail sales of tangible personal property and certain labor announced, master-planned bi-national community involving and services; cities, counties, and transit authorities may add to the sales tax up to a Santa Teresa in New Mexico and San Jerónimo in Mexico, maximum combined state and local rate of 8.25 percent, with certain manufacturing built around the border crossing there. exemptions. PROPERTY (AD VALOREM) TAX: No state property tax; real and tangible personal property is taxed at varying rates by local government and special Among the tools Oklahoma is using to build the economy taxing districts; local taxing entities have the option to exempt freeport goods. is its Quality Jobs Program, which offers quarterly cash payments to companies creating jobs. Among those spotlighted in the most recent Quality Jobs report are Terex USA and the American Cancer Society, both creating jobs in Oklahoma City.

Texas continues to reap the benefits of a major arsenal of economic development tools, the most prominent of which is the Texas Enterprise Fund. It’s the largest “deal closing” initiative in the country, offering cash grants for projects that promise jobs and capital investment. Awards have ranged from six-digit incentives to as high as $50 million. Innovations are supported by the Texas Emerging Technology Fund, which encourages commercialization of new technologies, public-private partnerships, and efforts to boost the research credentials of Texas universities.

Accolades from outsiders are far too numerous to list in full. Some of the highlights include the Forbes Best Over the past 24 years, more than States for Business, which put Texas in seventh place and Oklahoma in 14th.

100 companies have chosen Amarillo.

Texas ranked 11th on the Tax To see who and why, visit: Foundation’s State Business Tax Climate amarilloedc.com/portfolioofsuccess Index, and was listed as the nation’s second-fastest-growing tech state in the Cyberstates 2013 ranking. Arizona was sixth on the American Legislative Exchange Council’s list of states with business-friendly policies. — Steve Stackhouse-Kaelble CORPORATE INCOME TAX: 6 percent of federal taxable income earned in Oklahoma.

SALES AND USE TAX: 4.5 percent state rate; most cities levy an additional tax of 1 to 4.25 percent; counties may levy an additional tax up to 2 percent; the average city sales tax rate is 2.1 percent, and the average county sales tax rate is 1.2 percent.

PROPERTY TAX: Levied on both real and tangible personal property at the county level; for all communities in Oklahoma, the effective property tax rate averages about 1 percent for real and personal property, exercised as a percentage of fair cash value.

AMARILLO WILL BLOW YOU AWAY

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MOUNTAIN Colorado

Idaho

Montana

Nevada

Mountain States’ Economies Striving to Reach New Heights The Mountain States are posting positive news on the jobs and business location and expansion front.

The Mountain States are, for the most part, in a good spot on the jobs front. All but Nevada have unemployment rates below the national average, led by Utah and Wyoming at 4.6 percent and Montana at 5.2 percent, according to the U.S. Bureau of Labor Statistics.

The region’s economy as a whole is growing at a rate similar to the nation’s, according to the Bureau of Economic Analysis. Utah’s 2012 growth in gross domestic product was 3.4 percent, while Colorado and Montana each recorded growth of 2.1 percent. GDP growth in 2012 was 1.5 percent in Nevada, 0.4 percent in Idaho, and 0.2 percent in Wyoming.

Utah is leading the way on multiple fronts. A report from the U.S. Chamber of Commerce notes that “the state is becoming known as a professional services and finance center,” and Bloomberg Businessweek even suggested it’s on the way to becoming a “Wall Street of the West.”

Meanwhile, Utah’s manufacturing sector enjoyed a slight increase in employment at the same time national manufacturing employment dropped by more than 20 percent. The state ranked third in overall

economic performance, and was the only state in the nation that also made all of the U.S. Chamber’s other top 10 lists covering exports, innovation/entrepreneurship, the business climate, the talent pipeline, and infrastructure.

BUSINESS LOCATIONS AND EXPANSIONS With below-average jobless rates, the Mountain States clearly are benefiting

Utah

Wyoming

from business locations and expansions. For example, Pepperidge Farm is investing $45 million to grow its plant in Utah, where it makes Goldfish and other snack foods. The food industry has taken a liking to Idaho, as well. Portugal-based Frulact Group is opening its first U.S. fruit-preparation plant there, and California-based Clif Bar will build a 300,000-square-foot bakery in Twin Falls.

Barclays Services is investing $10 million in Nevada and creating 930 jobs over a four-year period, while Kareo Inc. plans to create more than 400 IT jobs in that same period, according to the Governor’s Office of Economic Development.

Ardagh Metal Packaging USA also picked Nevada for

RIGHT TO WORK Colorado Idaho Montana Nevada Utah Wyoming

Modified Yes No Yes Yes Yes

COLLEGE GRADUATES (Age 25 and over)*

Colorado Idaho Montana Nevada Utah Wyoming

35.9% 23.9% 27.4% 21.8% 28.5% 23.8%

*Bachelor’s degree or higher; U.S. Census Bureau, ACS, 2009

COLORADO Principal Manufacturing Industries (Percentage of Employment)

STATE Colorado Idaho Montana Nevada Utah Wyoming

POPULATION

LABOR FORCE

16.6% 13.2% 10.1%

5,188,000

2,743,264

(2012)

(2012)

1,595,728

775,015

(2012)

(2012)

1,005,141

507,863

(2012 U.S. Census est.)

(2013 BLS)

2,759,310

1,366,500

(2013 estimate)

(2013)

2,917,220

1,296,260

(2012)

(2012)

576,412

316,155

(2012 Census est.)

(2013)

9.9% 7.4% 7.4% 6.5% 5.6% 23.3%

Food Manufacturing Computer and Electronics Petroleum and Coal Products Beverage & Tobacco Products Machinery Manufacturing Chemical Manufacturing Transportation Equipment Fabricated Metal Product Other Manufacturing Industries

Coming in the Q1 2014 issue—

28th Annual Corporate Survey 10th Annual Consultants Survey

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MOUNTAIN COLORADO CO

UTAH UT

TRA TRADITIONAL INDUSTRIES: Healthcare and social services, accommodation and food services, educational services, professional and technical services

TRA TRADITIONAL INDUSTRIES: Manufacturing, mining, government, agriculture

EXPANDING INDUSTRIES: Mining, quarrying, oil and gas extraction; educational services; finance and insurance; healthcare and social services

EXPANDING INDUSTRIES: Life sciences, healthcare, outdoor products/recreation, advanced composites, autonomous vehicles, renewable energy, financial services, digital media

WYOMING W ID IDAHO TRA TRADITIONAL INDUSTRIES: Agriculture and food processing, manufacturing, high-tech EXPANDING INDUSTRIES: Health services, business services, semiconductor and other electronic manufacturing, retail trades, construction, alternative/ renewable energy, aeronautics/aerospace, firearms, recreational technology, food processing

MONTANA M

TRA TRADITIONAL INDUSTRIES: Mining, tourism, transportation, agriculture EXPANDING INDUSTRIES: Renewable energy, natural resources and mining, construction, wholesale trade, transportation, warehousing, utilities, data and information

NEVADA

TRA TRADITIONAL INDUSTRIES: Natural resources, agriculture, tourism, manufacturing, energy EXPANDING INDUSTRIES: High-tech, aerospace, value-added agricultural products, telecommunications, research and development, professional services, bioscience

Principal Manufacturing Industries

(Percentage of Employment)

(Percentage of Employment)

11.9% 11.6%

16.3%

8.6% 7.5%

NEVADA NE

7.1% 6.3%

TRA TRADITIONAL INDUSTRIES: Mining, tourism and gaming, agriculture

3.9%

EXPANDING INDUSTRIES: Aerospace defense; business IT ecosystems; clean energy; health and medical services; logistics and operations; mining, materials, and manufacturing; tourism, entertainment, and gaming

WYOMING

Principal Manufacturing Industries

3.8% 3.7% 3.4% 32.3%

Food Fabricated Metal Products Printing and Related Support Activities Computer and Electronic Products Plastics & Rubber Products Nonmetallic Mineral Products Transportation Equipment Machinery Chemicals Primary Metals Other Manufacturing Industries

15.9% 10.5% 10.3% 9.2% 5.5% 5.2% 4.9% 4.3% 3.2% 2.7% 12.0%

IDAHO

MONTANA

Principal Manufacturing Industries (Percentage of Employment)

27.7% 19.8% 8.7% 9.3% 4.7% 5.0% 24.8%

80

Fabricated Metal Products Chemical Products Petroleum & Coal Products Food Nonmetallic Mineral Products Machinery Wood Products Plastics & Rubber Products Transportation Equipment Printing & Related Activities Furniture and Related Products Other Manufacturing Industries

Food Products Computer and Electronic Products Fabricated Metal Products Wood Products Machinery Transportation Equipment Other Manufacturing Industries

AREA DEVELOPMENT

Principal Manufacturing Industries (Percentage of Employment)

UTAH Principal Manufacturing Industries

21.1%

Wood, Paper, & Furniture

10.3% 19.1%

Food Products Chemicals, Petroleum & Coal Fabricated Metal

49.0% 30.0%

Primary Metals Chemicals

9.0%

Machinery, Computers & Electronics Chemicals Other Manufacturing Industries

3.0% 3.0%

Computers & Electronics Food Transportation Equipment

7.5% 8.8% 6.7% 26.5%

(Percentage of Employment)

6.0%

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Other Manufacturing Industries

BUSINESS LOCATION TRACKER FOR INFORMATION ABOUT RECENT BUSINESS LOCATIONS/EXPANSIONS IN THESE STATES GO TO w w w. A r e a D e v e l o p m e n t . com/NewsItems

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Our Field

Representatives

COLORADO

For the most diverse food basket in America

BASIC BUSINESS TAXES CORPORATE INCOME TAX: 4.63 percent flat rate (single factor sales). STATE SALES AND USE TAX: 2.9 percent + local sales tax. PROPERTY TAX: Assessed at 29 percent of market value for commercial and industrial property and 7.96 percent for residential (2012).

Tony Vander Hulst West Point Farms, Wendell, Idaho 5,500 Milking Cows

IDAHO BASIC BUSINESS TAXES

Our culture runs deep.

CORPORATE INCOME TAX: 7.4 percent of taxable income with a $20 minimum.

CORPORATE ORGANIZATION AND QUALIFICATION FEES: $100 for articles of incorporation or certificate of authority. SALES AND USE TAX: (As of October 1, 2009) 6 percent of retail sales price of taxable property; use tax of 6 percent on value of property if not taxed at the point of sale. PROPERTY TAX: No state property tax.

However, counties and municipal jurisdictions have varying property tax rates; real property is assessed at 100 percent of market value; rates vary among county and municipal jurisdictions; 2012 average of approximately 1.339 percent.

ItÕs a culture passed on from generation to generation. A culture of doers, of contributors. We have learned by experience as well as experienced learning.

Hard work has never scared us, but inspired us. We are motivated by our past and encouraged by our future. Our culture is deÞned by the day and reÞned over a lifetime.

Why would you trust a job this important to just anyone?

MONTANA BASIC BUSINESS TAXES CORPORATE LICENSE (INCOME) TAX: 6.75 percent of all net income; corporations subject to apportionment may choose between worldwide combined reporting and the water's-edge combination method of reporting (7 percent tax rate for water's edge).

SALES AND USE TAX: None. PROPERTY TAX: Levied primarily by local jurisdictions; the state levies approximately 101 mills and ensures equal treatment of property by standardizing assessment and appraisals; tax liability is determined by applying the appropriate tax rate for the property (14 classes of property) to market value, then multiplying by mill levy.

NEVADA

Chobani

Glanbia Foods

The countryÕs #1 selling brand of yogurt.

The worldÕs largest producer of American style cheese.

BASIC BUSINESS TAXES CORPORATE INCOME TAX: None. BUSINESS LICENSE FEE: $200 annually.

GROSS PAYROLL TAX: 0-1.17 percent with deductibility of employer-paid health insurance premiums; financial institutions are taxed at 2 percent. SALES AND USE TAX: 6.85 percent on retail sales plus local add-ons. PROPERTY TAX: Levied at 35 percent of the property's full cash value

UTAH BASIC BUSINESS TAXES

Knowing our business this well is the best way we know of growing yours.

CORPORATE INCOME AND FRANCHISE TAX: 5 percent. SALES AND USE TAX: 5.95-8.35 percent. PROPERTY TAX: Property tax per capita of 2.9 percent (2011).

WYOMING BASIC BUSINESS TAXES CORPORATE TAX: No state income tax; no inventory tax; no franchise tax; no gross sales tax. SALES AND USE TAX: 4 percent statewide retail sales tax; an additional 3 percent may be added on the local level. PROPERTY TAX: Creates a tax system that provides a level system for all types of business. Based on a de-facto assessment classification, commercial and other real and personal property is assessed at 9.5 percent of market value; industrial plants assessed at 11.5 percent of current value.

Mill levy rates vary among local jurisdictions but average 70 mills.

IDAHO

Life. Work. Play. A`k`mbd-

www.southernidaho.org 208-324-7408 ¥ 1-866-768-8443 P.O. Box 1238, Twin Falls, ID 83303

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MOUNTAIN a new manufacturing plant that means about 140 technical jobs in the next five years.

And, the financial services industry is adding jobs in Denver. Digital wealth management company Personal Capital opened an advisory hub employing 100 people, while Fidelity Investments opened a customer contact center that could eventually provide up to 500 jobs.

Meanwhile, a Xerox customer service and tech support center in Colorado Springs is creating 300 new jobs.

INITIATIVES IN THE WORKS State governments in the region have an appetite for more positive economic news, and have a number of

initiatives in the works to generate growth. For example, Colorado hopes to help its advanced industries target growing global markets with the new Advanced Industries Export Accelerator program; it includes export training, global consultants, and grants for international initiatives. Idaho, like a number of other states, has its eyes on the growing unmanned aircraft systems industry, and is ramping up efforts to attract drone business.

In 2013, Montana relaunched its public-private Innovate Montana program, which is geared toward sparking entrepreneurialism.

The effort takes advantage of an already powerful force in the state — in fact, the Kauffman Foundation’s

Index of Entrepreneurial Activity ranked the state tops in the nation, with 530 entrepreneurs for every 100,000 adults.

NUMEROUS ACCOLADES Numerous other outside observers have heaped praise on the region. When the Building Owners and Managers Association International ranked the nation’s least costly markets for commercial real estate, Salt Lake City topped the list. The association tallied the operating expenses and found the cost in Salt Lake City to be $4.87 per square foot.

The most recent state economic outlook study from the American Legislative Exchange

Council had Utah atop the list, and Wyoming placed fourth. Forbes, meanwhile, named Utah the third-best state for business and careers, and Colorado was fifth best. And four states in the region made the top 10 when the Tax Foundation ranked state business tax climate: Wyoming was first, Nevada third, Montana seventh, and Utah ninth.

Other accolades for the region came from Pollina Corporate Real Estate’s Top 10 Pro-Business States, which lists Utah at the top and Wyoming fifth. Also, CNBC’s ranking of America’s Top States for Business placed Utah fifth, Colorado seventh, Wyoming ninth, and Idaho 10th. — Steve Stackhouse-Kaelble

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Pacific

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PACIFIC Alaska

California

Hawaii

Pacific States Foster Innovation The Pacific States are growing their economies by fostering innovation and offering jobs programs and tax breaks for businesses.

JOB CREATION EFFORTS Business Oregon is offering a jobs creation scheme through its new Business Expansion Program (BEP).

BEP is available to traded sector firms with at least 150 employees that create at least 50 new, full-time jobs at 150 percent of the state or county average wage. BEP awards are based on two years of estimated personal income tax revenues that are generated by the new hires from an expansion or relocation project and contain clawback provisions if the requirements are not met.

Salesforce.com benefited from BEP upon deciding to locate in Hillsboro, Oregon.

With help from a $1.45 million forgivable BEP loan, the company established a shared service center in Hillsboro and promised to employ slightly more than 200 employees by end of 2015. By late 2013, the Portland Business Journal reported the company had hit that target and would create close to 500 jobs within five years.

Work force training is a focus and mission of the Washington State Department of Commerce and its partners. They offer a variety of programs and financing options including the Washington Customized

Training Program. Impact Washington, a non-profit organization, helps manufacturers become more globally competitive.

INNOVATION IS KEY Innovation is on the top of everyone’s list. Oregon InC is helping entrepreneurs turn cutting-edge research into new companies through the creation of the 2013–2015 Innovation Plan.

A unique partnership between Oregon’s private sector and its research universities, its goal is to find new ways to further nanoscience and green building materials, wave energy, bioscience, and electric vehicle components, and create growth opportunities in unmanned aerial vehicles and digital storytelling.

As part of Washington’s innovative clusters initiative, the state has launched a series of Innovation

Oregon

Washington

Partnership Zones (IPZs).

One is the Tri-Cities Research District, a 1,700acre mixed-use area along the Columbia River in Richland. More than 7,000 people work in this IPZ, which is home to the Pacific Northwest National Laboratory (PNNL); Washington State University-Tri-Cities (WSUTC); the Applied Process, Engineering Laboratory (APEL); and WSU-TC’s new Bioproducts, Sciences, and Engineering Laboratory (BSEL).

Salinas, California, has created its own unique initiative intended to create precision farming technology and smart farms. Known as the Steinbeck Innovation Cluster, it leverages a network of civic, academic, technological, corporate, and philanthropic partners to create smart farms that tap into technologies like big data, mobility, sensors, and drones. The goal is to drive innovation in Salina’s fields and factories and foster young entrepreneurs.

CALIFORNIA Principal Manufacturing Industries

RIGHT TO WORK Alaska California Hawaii Oregon Washington

21.1%

No No No No No

COLLEGE GRADUATES (Age 25 and over)*

Alaska California Hawaii Oregon Washington

(Percentage of Employment)

26.6% 29.9% 29.6% 29.2% 31.0%

12.6% 9.4% 8.7% 5.9% 5.4% 4.9%

Computers & Electronic Products Food Fabricated Metal Products Transportation Eqpt.

Chemicals Machinery Apparel

3.6%

Printing & Related Support Activities

2.7%

Furniture & Related Products Nonmetallic Mineral Products

2.4% 23.3%

Other Manufacturing Industries

*Bachelor’s degree or higher; U.S. Census Bureau, ACS, 2009

OREGON Principal Manufacturing Industries (Percentage of Employment)

STATE

POPULATION

LABOR FORCE

21.5%

Alaska

731,449

363,400

(2012)

(2013)

14.5% 11.5%

California Hawaii Oregon Washington

37,254,000

18,268,700

(U.S. Census)

(July 2010)

1,392,313

651,600

(July 2012)

(2012 annual average)

3,883,735

1,941,253

(2012)

(August 2013)

6,882,400

3,484,200

(2013)

(August 2013)

9.0% 6.5% 6.5% 4.8% 2.8% 22.9%

Computers & Electronic Products Food Wood Products Fabricated Metal Products Transportation Eqpt.

Machinery Primary Metals Paper Other Manufacturing Industries

AREA DEVELOPMENT | 2014 Annual Directory

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PACIFIC ALASKA AL

WASHINGTON W

TRA TRADITIONAL INDUSTRIES: Oil and gas, mining, tourism, fishing, forest products

KEY INDUSTRIES: Aerospace, information and communication technology, clean technology, life sciences/ global health, forest products, value-added agriculture, food processing, marine technology

EXPANDING INDUSTRIES: Oil and gas, transportation, tourism, aerospace industries, minerals exploration

EXPANDING INDUSTRIES: Advanced manufacturing, advanced materials, biotechnology, clean energy, electronics, telecommunications, software, environmental services, international trade services, marine services, scientific instruments, machinery, value-added agriculture

CALIFORNIA CA TRA TRADITIONAL INDUSTRIES: Services, finance/insurance/real estate, manufacturing, retail trade, wholesale trade, construction, agriculture/food processing

CALIFORNIA

EXPANDING INDUSTRIES: Green technology, high technology, Internet/web-based industries, biotechnology, telecommunications, healthcare technology, multimedia, entertainment, environmental technology, information technology, diversified manufacturing, transportation/ logistics, value-added agriculture

BASIC BUSINESS TAXES CORPORATE INCOME TAX: 8.84 percent of net income. SALES AND USE TAX: 7.25 to 9.25 percent. PROPERTY TAX: Assessed and collected locally by county governments; some cities and special districts collect their own taxes for purposes such as street improvements; average tax rate is 1.1 percent of fair market value

HAWAII HA TRA TRADITIONAL INDUSTRIES: Tourism, federal activity (defenseand non-defense-related activity), agricultural products EXPANDING INDUSTRIES: Clean/renewable energy, high technology, biotechnology, environmental remediation technology, resort architecture and engineering, retail, film and television production, ocean science and technology, seafood, diversified agriculture, sports, education and training, health and fitness services

OR OREGON TRA TRADITIONAL INDUSTRIES: High technology, agriculture, wood products EXPANDING INDUSTRIES: Green energy manufacturing, aerospace, high-tech/semiconductors, software, biomedical technology, outdoor gear, transportation equipment, primary and fabricated metals

FINANCIAL INCENTIVES Seeking to ramp up business in California, Governor Jerry Brown signed the Economic Development Initiative this summer, which offers a statewide tax exemption on all manufacturing and R&D equipment purchases for biotech and manufacturing companies.

It includes a state sales tax exemption on innovative tools.

San Diego-based Takeda California, a wholly owned subsidiary of Takeda Pharmaceutical Co. Ltd., Japan’s largest pharmaceutical company and one of the top 15 pharmaceutical companies in the world, is taking advantage of the initiative. “The new law will allow us to pursue staffing

levels and collaborations with local universities that we would not have been able to afford otherwise,” said Takeda California President and Chief Science Officer Dr. Keith Wilson.

Tax-exempt bonds and loans support businesses in the Pacific region. In Oregon, tax-exempt bonds are available for long-term financing for land, buildings, and equipment to manufacturers, processors, exempt facilities (e.g., docks or solid waste facilities), and nonprofits. They provide the greatest benefit for bonds of $5 million or more.

Murphy Company, a supplier of hardwoods and plywoods, became a recipient of a $10 million industrial

THIS REGIONAL REPORT SPONSORED BY:

Tulare County

It’s all about

Explore the opportunities at:

www.TulareCountyEconomicDevelopment.org

84

AREA DEVELOPMENT | 2014 Annual Directory

YOU!

Dairies / Renewable Energy / Food Processing / Distribution

FOR FREE SITE INFORMATION, CALL

800-735-2732, EXT. 225, OR VISIT US ONLINE AT WWW.AREADEVELOPMENT.COM

Pacific

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Page 85

ALASKA

HAWAII

BASIC BUSINESS TAXES

BASIC BUSINESS TAXES

CORPORATE INCOME TAX: 0% on taxable income under $25,000; 2% on $25,000 to $49,000; 7% on $148,000 to $173,000; 3% on $49,000 to $74,000; 8% on $173,000 to $198,000; 4% on $74,000 to $99,000; 9% on $198,000 to $222,000; 5% on $99,000 to $124,000; 9.4% on $222,000 or more 6% on $124,000 to $148,000 BIENNIAL REPORT TAXES AND FEES: Business corporation: domestic $100, foreign $200; limited liability companies/partnerships fee: domestic $100, foreign $200; cooperative corporation: domestic $100; foreign cooperative corporation, $100 SALES AND USE TAX: Alaska does not impose a statewide sales tax. Several boroughs and cities impose a bed tax, alcohol tax, and a sales tax of up to 7 percent on retail sales and certain locally provided personal services; neither Anchorage nor Fairbanks levies a general sales tax. There are no state sales, income, gross receipts, or inventory taxes. PROPERTY TAX: Real and personal property is taxed by boroughs and cities; the tax is levied primarily on real estate, but some communities also tax personal property; property is required to be assessed at 100 percent of value, however, generally, property is assessed at between 90-96 percent valuation with tax rates ranging from 5 mills to 20.5 mills. Alaska levies a property tax on oil and gas properties.

CORPORATE INCOME TAX: 4.4 percent on first $25,000 of taxable income; 5.4 percent on income over $25,000 but not over $100,000; 6.4 percent on amount over $100,000 of taxable income. CORPORATE ORGANIZATION AND QUALIFICATION FEES: $50 for filing articles of incorporation for in-state corporation or out-of-state corporation registration ($75 for expedited processing). GENERAL EXCISE (SALES) AND USE TAX: Rate ranges from 0.5 percent to 4 percent of the value of gross income according to type of business; 4 percent on retail sales of goods and services (except those exported); 0.5 percent on manufacturing or wholesaling (except for exported goods and services). Effective Jan. 1, 2007, activities with a business purpose on the island of Oahu which are subject to the 4 percent GET rate are also subject to an additional 0.5 percent tax for the City and County of Honolulu's mass transit system. PROPERTY TAX: Real property tax rates are set and collected by the four counties; for FY 2014 commercial rate is $12.40 per $1,000 valuation in the City and County of Honolulu; $10.05 per $1,000 valuation on land in Hawaii County; $8.00 per $1,000 valuation on land in Kauai County; and $7.05 per $1,000 valuation on land in Maui County; property assessed at 100 percent of fair market value; no tax on personal property

revenue bond in late 2013.

The bond is helping the company purchase and

AREA0203.indd 1

house a new dryer at its White City, Oregon, facility that will produce dry veneer

for its Rogue River Plywood Plant, and eventually result in increased production to

three shifts with 150 to 200 employees, including 65 new full-time jobs.

17/12/13 7:31 PM85 AREA DEVELOPMENT | 2014 Annual Directory

Pacific

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PACIFIC OREGON

WASHINGTON

BASIC BUSINESS TAXES

BASIC BUSINESS TAXES

CORPORATE EXCISE TAX: 6.6 percent on net Oregon income of corporations doing business in the state; 7.6 percent on taxable income over $1 million.

SALES AND USE TAX: None. PROPERTY TAX: Privately owned real estate and personal property used to produce income are subject to tax by local taxing districts such as schools, cities, and counties; statewide property tax limitation of approximately 1.5 percent of real market value. Annual increases are limited to 3 percent. Abatement programs are often available to expanding businesses.

BUSINESS AND OCCUPATION TAX: Washington imposes this tax on most businesses; it is based on gross receipts and there are few deductions available; the rate for manufacturers, distributors, and wholesalers is 0.484 percent; the rate for retailers is 0.471 percent; services are now subject to a uniform B&O tax rate of 1.8 percent; other B&O tax rates vary from 0.138 percent to 1.63 percent.

SALES AND USE TAX: Sales tax must be collected on retail sales of tangible personal property, as well as cleaning, repairing, altering, or improving real property and tangible personal property, including labor charges; use tax is due on the value of tangible personal property used in the state on which retail sales tax has not been paid; exemptions include groceries and prescription drugs; the state sales tax is 6.5 percent; the local rate varies from 0.5 to 3.0 percent depending on the location where the customer receives the goods or the services are performed. PROPERTY TAX: Local tax with rates based on appraised value and varying by location; the average statewide effective property tax is $11.78 per $1,000 of assessed value.

ENERGY-EFFICIENCY PROGRAMS A loan program offered

by GreenSun Hawaii provides residential, multi-family projects, nonprofits, and businesses with affordable financing for the installation of energy-efficient and renewable energy systems.

Launched in 2011, the program is a public-private partnership that provides loans to increase the use of solar energy, decrease Hawaii’s dependence on imported fossil fuel, and lower overall energy costs

throughout the islands.

Annually, the program calculates an estimated savings of 556,000 kilowatt hours and a combined savings in the participants’ electric bills in excess of $221,000.

Utilities are a focus in Alaska and in Canada’s Yukon region. In October, both governments signed an appendix to the AlaskaYukon Intergovernmental Relations Accord to collaborate in identifying and evaluating an economic development corridor that could potentially connect

fiberoptic networks in Juneau and include a Ketchikan to Prince Rupert link, as well as energy projects to provide access to affordable electrical generation. Wording of the agreement allows other entities to participate, by mutual consent. Both governments anticipate partici-

LOCATION . LOCATION

pation from the Municipality of Skagway and respective utilities.

They also expect interest from telecommunication firms that could provide data and insight into the potential for broadband expansion in the Upper Lynn Canal region. — Karen E. Thuermer

.

LOCATION .

The best LOCATION on the web to help with your corporate LOCATION needs.

The best LOCATION to start your site and facility search.

The best LOCATION to stay on top of industry news.

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Visit www.areadevelopment.com FOR FREE SITE INFORMATION, CALL

800-735-2732, EXT. 225, OR VISIT US ONLINE AT WWW.AREADEVELOPMENT.COM

Canada

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10:57 AM

Page 87

CANADA largest and most affluent in the world.

Canada’s closest trading partner is the United States.

According to the U.S. Department of State’s Bureau of Economic and Business Affairs, trade between Canada and the U.S. is largely free of restrictions and has doubled in volume over the past decade. About 53 percent of Canada’s foreign direct investment (FDI) comes from the United States. U.S. services exports to Canada totaled more than US$56 billion in 2011, while Canada’s services exports to the United States totaled more than US$28 billion. At the end of 2011, Canada’s stock of U.S. FDI was almost US$320 billion.

Canada Presents a Stable Business Climate Canada’s wealth of resources and pro-business environment has helped the nation to attract big investment projects from around the world.

Both North American and global businesses are attracted to Canada’s strong economic performance (especially emerging from the Great Recession), its diversified economy anchored by traditional industries like mining and energy as well as knowledge-based sectors, and a stable tax environment.

Canada has vast resources of oil and gas and is the world’s tenth-largest economy. It is also known for its solid banking system, which is consistently ranked as one of the best in the world by the World Economic Forum. In fact, during the Great Recession,

no Canadian bank or insurance company failed or required financial help from the government to stay afloat.

FREE TRADE One reason Canada is such a good place to invest is that it is part of the 1989 Canada-United States Free Trade Agreement (CUFTA) and 1994 North America Free Trade Agreement (NAFTA), which reduce barriers to the trade of goods and services among Canada, the U.S., and Mexico.

Companies from around the world are drawn to the North American consumer market, which is one of the

FOREIGN DIRECT INVESTMENT Canada’s steady — but unspectacular — economic growth in 2013 (recently reforecast by the International

Monetary Fund to be 1.6 percent) — has not deterred foreign investment. For example, Canada recently ranked as the fourth-best country for international investment according to A.T. Kearney’s Foreign Direct Investment Confidence Index®, which surveys hundreds of global business leaders from over 25 countries. The survey ranks countries on how current and near-future political, economic, and regulatory changes will affect international investment flows.

More than 100 Canadian projects valued at $1 billion or more have been announced for the 2012–2020 period, many of them in oil and gas, mining, and primary metals. Other recent major investments by foreign companies include Ubisoft (multimedia), Almirall (pharmaceuticals), PFW (aerospace), Ankama (multimedia), Ruukki (steel manufacturing), Savvis

GROWTH. OPPORTUNITY. INVESTMENT. Prince George, British Columbia is located in one of the fastest growing regions in Canada.

The city offers superior global transportation connectivity via road, air, rail and marine infrastructure.

Contact Initiatives Prince George today for information about investment opportunities and available light and heavy industrial land.

Initiatives Prince George Economic Development Corporation Tel: 250.564.0282 | Email: info@initiativespg.com www.initiativespg.com

AREA0202.indd 1

/InitiativesPG @InitiativesPG /InitiativesPG

AREA DEVELOPMENT | 2014 Annual Directory 17/12/13 7:28 PM87

Canada

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Sudbury 392mi Toronto 164mi

Chicago 675mi

Cleveland 454mi

Page 88

Ottawa Montreal 124mi 180mi

Kingston Boston 405mi New York 378mi Philadelphia 385mi Washington 503mi

St. Louis 914mi

Atlanta 1,095mi

Strategically Located for Business Success t 3FHJPOBM QPQ . .FUSP QPQ t &YDFMMFOU BDDFTT UP $BOBEJBO BOE 64 NBSLFUT t $POWFOJFOU BJS SPBE BOE SBJMSPBE JOGSBTUSVDUVSF t $MPTF UP NBKPS VODPOHFTUFE CPSEFS DSPTTJOHT t 4NBSUFTU XPSLGPSDF JO $BOBEB

Kingston Economic Development Corporation 5FM t CVTJOFTT!LJOHTUPODBOBEB DPN business.kingstoncanada.com

AREA0205.indd 1

19/12/13 4:23 PM

(information technology), Fineos (high technology), and FACC — which specializes in the manufacture of composite components for aviation and aerospace.

Canada has also worked out a trade agreement with the European Union, which will enhance the exchange of goods and services between Canada and the EU. The EU is one of the largest services economies in the world, valued at about $12.1 trillion in GDP for 2012.

As a result of this free-trade agreement, Canada has announced it will also relax its limits on foreign investment by other countries, including the U.S. and Mexico. By increasing the threshold limits for these nations, Canada will further stimulate foreign direct investment in its key industries. — Mark Crawford

2013 FDI Confidence IndexÂŽ Ranking

seizing industrial

opportunity YOUR BUSINESS BELONGS IN FORT SASKATCHEWAN ALBERTA CANADA Located within the greater Edmonton Capital region, Fort Saskatchewan is the closest urban municipality to Alberta’s Industrial Heartland, Canada’s largest hydrocarbon processing region. With over $21 billion in potential industrial projects announced, Fort Saskatchewan is the right location for your business.

The community’s thriving economic base continues to attract job creators, new residents and strong opportunities. Key factors are: steady growth, diverse population, healthy family incomes, big city amenities, low residential municipal tax rates, low non-residential tax rates and low cost serviced industrial land.

So when are you relocating to Fort Saskatchewan?

VISIT FORTSASK.CA OR CALL 1.780.992.6231

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FOR FREE SITE INFORMATION, CALL

2012 4 1 3 20 2 6 5 8 – 7

2013 1. United States 2. China 3. Brazil 4. Canada 5. India 6. Australia 7. Germany 8. United Kingdom 9. Mexico 10. Singapore

Source: A.T. Kearney FDI Confidence IndexŽ 2013 Canada jumped from 20th to 4th position in A.T. Kearney’s FDI confidence ranking.

800-735-2732, EXT. 225, OR VISIT US ONLINE AT WWW.AREADEVELOPMENT.COM 19/12/13 4:42 PM

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Vital. Useful. Updated Daily.

The best information on site selection and facility planning available online • Current News: Real estate & industry news, and economic indicator reports updated throughout the day • Valuable Resources: Tax and incentive information, development contacts, and insightful surveys • Latest Studies, Research, White Papers: Aggregated from the top consultants, think tanks and institutions, and distilled into usable information • Reviewable Archives: Search the Area Development archives for content, opinion, and reports spanning the last five years from the top industry minds

Visit – www.areadevelopment.com

Providing What Others Don’t

Mexico

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Page 91

MEXICO Mexico’s Investment Climate Heats Up Foreign direct investment in Mexico is strong and growing across most economic sectors and is buoyed by numerous free-trade agreements.

Mexico has one of the hottest post-recession economies in the world, with a projected growth rate of 4 percent for 2013–2019 and a controlled inflation rate of 3.8 percent.

According to the U.S. Department of State’s Bureau of Economic and Business Affairs, Mexico’s economic stability and strong trading relationships with the U.S. and Canada makes it attractive to global investors.

RECORD FDI Mexico’s Finance and Public Credit Secretariat recently announced the country might set a record for foreign direct investment (FDI) in 2013. Mexico attracted $4.9 billion in FDI in the first three months of 2013, compared to the $12.7 billion it brought in for all of 2012 — a sign of strong investor confidence in the country.

Foreign direct investment remains strong across most economic sectors. Many of these projects are located in the northern states close to the U.S. border, where many maquiladoras are located.

The majority of these new facilities or expansions are manufacturing operations, which can save up to 25 percent on operating costs compared to those in the

United States.

As one of the top producers of automobiles in the world, Mexico continues to build an international reputation for transportation manufacturing. Major producers such as Nissan, General Motors, Audi, Ford, Honda, and BMW have all recently announced new manufacturing facilities or expansions in Mexico.

Mexico is also working hard to gain market share in high-technology industries such as medical equipment, aerospace, electronics, and software development.

NEARSHORING TO MEXICO Another reason the Mexican economy is expected to be robust in the coming years is the increasing trend of nearshoring by American companies (i.e., relocating from China and other low-

Percent Naming Region as Most Attractive Nearshoring Location 2013% U.S.

TRADE AGREEMENTS Thanks to the North American Free Trade Agreement, almost half of all the FDI in Mexico comes from U.S. investors.

American and Canadian investors typically receive most-favored-nation status from the federal government for setting up operations or acquiring firms in Mexico. NAFTA has also eliminated some barriers to investment in Mexico, such as trade balancing and domestic content requirements, which streamline trade with its northern neighbors.

Mexico has also partnered with a number of other countries in free-trade agreements, including the

cost countries to set up operations in Mexico, which is more stable).

“Rising labor and transportation costs in China have produced a nearshoring trend that is helping fuel foreign direct investment in Mexico,” says a spokesperson for the American Chamber of Commerce. “Global manufacturers and investors are now recognizing Mexico’s strong economic performance, as well as its incredibly bright future.”

— Mark Crawford

European Union, Bolivia, Costa Rica, El Salvador, Guatemala, Honduras, Japan, and Nicaragua. In July 2012 Mexico also formed the Pacific Alliance with Peru, Colombia, and Chile.

2012% 2011%

19%

37% 36% 37%

Mexico

Most Attractive

49%

63%

7% Canada 0% 0% 5% 4% South America 0% Caribbean

Central America

5% 2% 0% 5% 9% 2%

5% Other 0% 4%

Least Attractive

Source: 2013 AlixPartners Manufacturing-Sourcing Outlook The United States has reached parity with Mexico as a preferred nearshoring location. However, Mexico is still much preferred over other nearshoring regions, according to the latest survey from AlixPartners.

AREA DEVELOPMENT | 2014 Annual Directory

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DirectoryContactsV2

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STATE CONTACTS & SELECT SITES • NEW ENGLAND Connecticut

Connecticut Department of Economic and Community Development 505 Hudson Street Hartford, CT 06106 860-270-8215 • 800-392-2122

Gerald Sitko Economic Development Coordinator Cheshire Economic Development Corporation 84 South Main St. Cheshire, CT 06410 jskitko@cheshirect.org www.cheshirect.org

Rhode Island

Rhode Island Economic Development Corporation (RIEDC) 315 Iron Horse Way, Suite 101 Providence, RI 02908 401-278-9100 Fax: 401-273-8270

Kiersten Bourgeois Vermont Department of Economic, Housing and Community Development 1 National Life Drive Montpelier, VT 05620-5001 802-828-5220

• MID-ATLANTIC Delaware

Maryland

Maine Department of Economic and Community Development 9 State House Station Augusta, ME 04333-0059 207-624-9800

Massachusetts Massachusetts Office of Business Development 10 Park Plaza, Suite 3730 Boston, MA 02116 1-877-BIZTEAM (249-8326)

New Hampshire

Michael Bergeron Business Development Manager New Hampshire Department of Resources and Economic Development P.O. Box 1856 Concord, NH 03301-1856 603-271-2591 Fax: 603-271-6784

Jennifer A. Murphy Aubin Executive Secretary Community & Economic Development Division City of Rochester Economic Development Department Office: 150 Wakefield St. Mailing: 31 Wakefield St. Rochester, NH 03867 603-335-7522 Fax: 603-335-7597

Evelyn LiVoti Marketing and Development Manager Operation Oswego County, Inc. 44 West Bridge St. Oswego, NY 13126 315-343-1545 Fax: 315-343-1546 elivoti@oswegocounty.org www.oswegocounty.org

Harold Gutzwiller Hoosier Energy P.O. Box 908 Bloomington, IN 47402 812-876-0294 or 812-360-4796 Fax: 812-876-5030 hgutzwiller@HEPN.com www.HoosierSites.com www.HoosierSites

Dominick E. Murray, Secretary Maryland Department of Business & Economic Development 401 E. Pratt Street Baltimore, MD 21202 410-767-6300 888-CHOOSE MD

New Jersey

New Jersey Business Action Center Trenton, NJ 08625-0820 866-534-7789

New York

Jeff Janiszewski Vice President of Strategic Business Development Empire State Development 518-292-5200 or 800-STATE-NY

Pennsylvania

C. Alan Walker, Sec. Pennsylvania Department of Community & Economic Development Commonwealth Keystone Building 400 North Street Harrisburg, PA 17120-0225 717-787-3003 Fax: 717-787-6866

• MIDWEST Illinois

Adam Pollet, Director Illinois Department of Commerce & Economic Opportunity James R. Thompson Center 100 W. Randolph Chicago, IL 60601 312-814-7179

Michael S. Kearney Director, Economic Development Ameren P.O. Box 66149 MC 350 St. Louis, MO 63166-6149 800-981-9409 Fax: 314-206-0182 mkearney@ameren.com www.Ameren.com/EcDev

Linda McShane, Project Development Specialist Onondaga County IDA (OCIDA) 333 W. Washington Street, Suite 130 Syracuse, NY 13202 315-435-3770 Fax: 315-435-3669 info@SyracuseCentral .com www.syracusecentral.com www.whitepinecommerce park.com

jennifer.murphy.aubin @rochesternh.net info@ThinkRochester.biz www.ThinkRochester.biz

Michael Mertes Business Development Coordinator Department of Planning and Community Development Village of Arlington Heights 33 S. Arlington Heights Road Arlington Heights, IL 60005 847-368-5220 Fax: 847-368-5988 mmertes@vah.com www.DiscoverArlington.com www.vah.com ww.vah.com

Iowa

Iowa Economic Development Authority 200 East Grand Avenue Des Moines, IA 50309 800-245-4692

Michigan

Michigan Economic Development Corporation 300 N. Washington Square Lansing, MI 48913 517-373-9808 • 888-522-0103

Dennis Mingyar Buckeye Power 6677 Busch Blvd.

Columbus, OH 43229-1101 614-430-7876 dmingyar@buckeye power.com www.BuckeyePower Sites.com

Minnesota

John Shoffner, CPA, MBA Director of Business Development Minnesota Department of Employment and Economic Development Business and Community Development Division First National Bank Building 332 Minnesota Street St. Paul, MN 55101 651-259-7445 or 800-657-3858

Vermont

Alan B. Levin Cabinet Secretary Delaware Economic Development Office 99 Kings Highway Dover, DE 19901 302-739-4271

Maine

Page 92

Indiana

Indiana Economic Development Corporation One North Capitol, Ste. 700 Indianapolis, IN 46204 317-232-8800 • 800-463-8081 Fax: 317-232-4146

Missouri

Missouri Department of Economic Development P.O. Box 118 Jefferson City, MO 65102 573-751-9045 800-523-1434

Cinda Kelley-Hutchings, Executive Director Hendricks County Economic Development Partnership 5250 E US Hwy 36, Ste. 1103 Avon, IN 46123 317-745-2400 Cell: 317-313-7381 Fax: 317-745-0757

Michael S. Kearney Director, Economic Development Ameren P.O. Box 66149 MC 350 St. Louis, MO 63166-6149 800-981-9409 Fax: 314-206-0182

kelley@hcedp.org www.hcedp.org

mkearney@ameren.com www.Ameren.com/EcDev

Harold Gutzwiller Hoosier Energy P.O. Box 908 Bloomington, IN 47402 812-876-0294 or 812-360-4796 Fax: 812-876-5030 hgutzwiller@HEPN.com www.HoosierSites.com www.HoosierSites

Matt McCollister, Vice President, Economic Development Columbus Region/ Columbus 2020 150 South Front Street, Ste. 200 Columbus, OH 43215 614-225-6953 Fax: 614-221-1408 mm@columbusregion.com www.columbusregion.com

Susan Crotty, CEcD Manager, Industrial/Community Development City of St. Marys 101 E. Spring Street St. Marys, OH 45885 419-394-3303 Fax: 419-394-2452 Kevin Welch, Director Joplin Regional Partnership 320 East 4th Street Joplin, MO 64801 417-624-4150 Fax: 417-624-4303

scrotty@cityofstmarys .net www.stmarysdevelops y p .com

kwelch@joplincc.com www.joplinregional partnership.com

Wisconsin

Mark Wickersham Executive Director Huntington County Economic Development 8 W. Market Street Huntington, IN 46750 260-356-5688 Fax: 260-358-5692

Ohio

JobsOhio 41. S. High Street, Suite 1500 Columbus, Ohio 43215 614-224-6446

Wisconsin Economic Development Corporation 201 W. Washington Avenue Madison, WI 53703 855-INWIBIZ

Ohio Development Services Agency 77 S. High Street, 29th Floor Columbus, Ohio 43215 800-848-1300

http://www.hcued.com mark@hcued.com

BUSINESS LOCATION TRACKER FOR INFORMATION ABOUT RECENT BUSINESS LOCATIONS/EXPANSIONS IN THESE STATES GO TO w w w. A r e a D eve l o p m e n t . c o m / S t a t e R e s o u r c e s

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FOR FREE SITE INFORMATION, CALL

800-735-2732, EXT. 225, OR VISIT US ONLINE AT WWW.AREADEVELOPMENT.COM

DirectoryContactsV2

12/31/13

Paul Jadin, President Madison Region Economic Partnership 615 East Washington Avenue PO Box 71 Madison, WI 53701-0071 608-443-1960 Fax: 608-256-0333 info@madisonregion.org www.madisonregion.org

10:33 AM

Rick Nelsen, CEcD Economic Development Manager Nebraska Public Power District 1414 15th Street P.O. Box 499 Columbus, NE 68602-0499 402-563-5534; 800-282-6773 Fax: 402-563-5090 econdev@nppd.com www.nppd.com

Page 93

Kentucky

Kentucky Cabinet for Economic Development Old Capitol Annex 300 West Broadway Frankfort, KY 40601 800-626-2930 Fax: 502-564-3256

Mandy Lambert, Acting Commissioner, Business Development Kentucky Cabinet for Economic Development Old Capitol Annex 300 West Broadway Frankfort, KY 40601 502-564-7140 Econdev@ky.gov www.ThinkKentucky.com www.ThinkKentuc tu ky.com

North Dakota Brenda Hicks-Sorensen, Vice President of Economic & Community Development Wisconsin Economic Development Corporation 201 West Washington Avenue P.O. Box 1687 Madison, WI 53701 1-855-IN-WIBIZ (855-469-4249) 608-210-6838 Brenda.HicksSorensen@wedc.org http://inwisconsin.com/

North Dakota Department of Commerce Division of Economic Development and Finance P.O. Box 2057 Bismarck, ND 58502-2057 701-328-5300 Fax: 701-328-5320

South Dakota

J. Pat Costello, Commissioner Governor’s Office of Economic Development 711 E. Wells Avenue Pierre, SD 57501-3369 605-773-3301

Michelle Kolda, Administrative Assistant Yankton Convention & Visitors Bureau and Office of Economic Development 803 E. 4th Street Yankton, SD 57078 605-665-9011 888-YANKTON (926-5866) ecodev@yanktonsd.com www.visityanktonsd.com www.yanktonedc.com

Louisiana

Louisiana Economic Development 1051 North Third Street Baton Rouge, LA 70804 225-342-3000

Mississippi

David Ramsey, Director of Global Business Billy Klauser, Director of Financial Resources Mississippi Development Authority P.O. Box 849 Jackson, MS 39205-0849 601-359-3449

Marlo Dorsey Chief Marketing Officer Mississippi Development Authority P.O. Box 849 39205 601-359-3962 mdorsey@mississippi.org www.mississippi.org

• PLAINS Kansas

Barbara Hake, CEcD Business Recruitment Manager Kansas Department of Commerce 22201 W. Innovation Drive, Suite 180D Olathe, KS 66061 913-307-7379 Fax: 913-307-7392

Kevin Welch, Director Joplin Regional Partnership 320 East 4th Street Joplin, MO 64801 417-624-4150 Fax: 417-624-4303 kwelch@joplincc.com www.joplinregional partnership.com

Nebraska

Nebraska Department of Economic Development P.O. Box 94666 Lincoln, NE 68509 402-471-3111 or 800-426-6505

• SOUTH Alabama

Alabama Department of Commerce Alabama Center for Commerce 401 Adams Avenue Montgomery, AL 36130 334-242-0400 800-248-0033

Arkansas

Arkansas Economic Development Commission 900 W. Capitol Avenue Little Rock, AR 72201 501-682-1121

Jim Fram Hot Springs Metro Partnership 659 Ouachita Ave Hot Springs, AR 71901 501-321-1700 or 501-624-6807 Fax: 501-321-3551 Jim.fram@growinghot springs.com http://growinghot springs.com/

Tennessee

W. Allen Hester, President/CEO Dyersburg/Dyer County Chamber of Commerce 2000 Commerce Ave. Dyersburg, TN 38024-8776 731-285-3433 Fax: 731-286-4926 ahester@dyerchamber.com www.dyerchamber.com

W. Allen Borden Assistant Commissioner, Business Development Division Tennessee Department of Economic and Community Development 312 Rosa L. Parks Avenue Nashville, TN 37243-0405 615-532-1294 615-741-7306 allen.borden@tn.gov http://tnecd.com/ http://tn.gov/ecd/

• SOUTH ATLANTIC

www.ChattanoogaCanDo .com cwood@chattanooga chamber.com

Georgia Department of Economic Development 75 Fifth Street NW, Suite 1200 Atlanta, Georgia 30308 404-962-4000

Jonathan Sangster, General Manager Economic Development Georgia Power 75 Fifth Street NW, Ste. 175 Atlanta, GA 30308 404-506-7502 Fax: 404-506-1474

Jim Morton, Finance Director Wilmington International Airport (ILM) ILM Business Park 1740 Airport Blvd., Suite 12 Wilmington, NC 28405 910-341-4333, ext. 1003 Fax: 910-341-4365 jmorton@flyilm.com http://www.flyilm.com/ AboutILMAirport/ BusinessPark.aspx

econdevga@southernco .com www.SelectGeorgia.com

South Carolina

South Carolina Jobs-Economic Development Authority 1201 Main Street, Suite 1600 Columbia, SC 29201 803-737-0268 Fax: 803-737-0628

Keith Barclift, Project Manager Northwest Georgia Joint Development Authority 10052 N. Hwy 27 Rock Spring, GA 30739 706-375-5793 Fax: 706-375-5795

George Haygood Santee Cooper One Riverwood Drive Moncks Corner, SC 29461 800-833-7797 george.haygood@santee cooper.com www.scprimesite.com

keith@northwestgeorgia.us www.northwestgeorgia.us

Florida

Enterprise Florida, Inc. 800 North Magnolia Ave., Suite 1100 Orlando, FL 32803 407-956-5600 Fax: 407-956-5599

Gregory J. Weiner, CEcD Senior Director, Business Development Economic Development Commission of Florida’s Space Coast 597 Haverty Court, Suite 40 Rockledge, FL 32955 321-638-2000 Fax: 321-633-4200

Virginia

Brandt Herndon Vice President, Business Development Savannah Economic Development Authority P.O. Box 128 Savannah, GA 31402 912-447-8450 bherndon@seda.org www.SEDA.org

gweiner@SpaceCoast EDC.org www.SpaceCoastEDC.org

Allen Borden, Assistant Commissioner Department of Economic and Community Development Business Development Division William Snodgrass/TN Tower, 27th Fl. 312 Rosa L. Parks Avenue Nashville, TN 37243-0405 615-741-1888

Charles Wood, VP Economic Development Chattanooga Area Chamber of Commerce 811 Broad St. Chattanooga, TN 37402 423-763-4335

Georgia

Virginia Economic Development Partnership 901 East Byrd Street P.O. Box 798 Richmond, VA 23218-0798 804-545-5600

West Virginia

West Virginia Development Office 1900 Kanawha Boulevard East Charleston, WV 25305-0311 800-982-3386

• SOUTHWEST Arizona

Business Attraction Division Arizona Commerce Authority 333 N. Central Avenue, Suite 1900 Phoenix, AZ 85004 800-542-5684

New Mexico North Carolina Peggy Doty, Executive Assistant & Project Coordinator Greater Fort Lauderdale Alliance 110 East Broward Blvd, Suite 1990 Fort Lauderdale, FL 33301 954-627-0134 pdoty@gflalliance.org www.lesstaxing.com

North Carolina Department of Commerce 301 N. Wilmington Street 4310 Mail Service Center Raleigh, NC 27699-4310 919-733-4977

Brenda Daniels Manager, Economic Development ElectriCities of North Carolina, Inc. 1427 Meadow Wood Blvd.

Raleigh, NC 27604 1-800-768-7697 ext.

6363 Cell: 919-218-7027

New Mexico Partnership 1720 Louisiana Boulevard, NE, Suite 312 Albuquerque, NM 87110 505-247-8500

Oklahoma

Oklahoma Department of Commerce 900 N. Stiles Oklahoma City, OK 731260980 405-815-5148 800-588-5959

bdaniels@electricities.org www.electricities.com

AREA DEVELOPMENT | 2014 Annual Directory

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Kevin Welch, Director Joplin Regional Partnership 320 East 4th Street Joplin, MO 64801 417-624-4150 Fax: 417-624-4303 kwelch@joplincc.com www.joplinregional partnership.com

Ted Allison, CEcD Director of Economic Development MidAmerica Industrial Park P.O. Box 945 Pryor Creek, OK 74362-0945 918-825-3500 or 888-627-3500 tedallison@maip.com www.maip.com

10:34 AM

Richard (Buzz) David, President & CEO Amarillo Economic Development Corporation 801 S. Fillmore, Suite 205 Amarillo, TX 806-379-6411 Fax: 806-371-0112

Page 94

Lubbock Economic Development Alliance (LEDA) 1500 Broadway, 6th Floor Lubbock, TX 79401 806-749-4500 or 800-687-5330

Traci Anderson, VP Commerce & Industry Taylor Economic Development Corp.

700 N Main St Taylor, TX 76574 512-352-4321 x 2

www.LubbockEDA.org

traci.anderson@ tayloredc.org www.tayloredc.org

buzz@amarilloedc.com www.amarilloedc.com

Larry Calhoun, Executive Director Conroe Industrial Development Corporation P.O. Box 3066 Conroe, TX 77305 281-787-8091

Pam Welch Midland Development Corporation (MDC) 109 North Main Street (2nd Floor) Midland, Texas 79701 432-686-3552 Pwelch@midlandtxedc .com www.midlandtxedc.com

lcalhoun@cityofconroe .org

kforeman@okcchamber .com www.greateroklahoma city.com www.greaterokc.tv

Paul Hendershot Business Development Manager, Commercial Development DFW Airport Board 972-973-4645 Mobile: 585-503-6730 phendershot@ dfwairport.com www.dfwairport.com

• PACIFIC

Colorado

Bill Cork Executive Director/CEO TexAmericas Center 107 Chapel Lane New Boston, TX 75570 903-223-9841 Fax: 903-223-8742 bill.cork@texamericas center.com www.texamericascenter .com

Guy D. Andrews, Director, Economic Development Odessa Development Corporation 700 North Grant Ave., Ste. 200 Odessa, TX 79761 1-877-363-3772 432-333-7881 Fax: 1-432-333-7858

Kelly Violette, Executive Director Tomball Economic Development Corp.

29201 Quinn Rd., Suite B Tomball, TX 77375 281-401-4086

info@odessaecodev.com www.odessatex.com

kviolette@tomball txedc.org www.tomballtxedc.org

Division of Economic Development Alaska Department of Commerce, Community and Economic Development P.O. Box 110800 Juneau, AK 99811 907-465-2500

Idaho

California

Governor's Office of Business and Economic Development (GO-Biz) 1400 10th Street, 2nd Floor Sacramento, CA 95814 916-322-0761 Fax: 916-322-0693

Jan Rogers, Executive Director Southern Idaho Economic Development Organization (SIEDO) 161 5th Ave. South, Suite 104 Twin Falls, ID 83301 208-324-7408 Fax: 208-324-7449 jansiedo@aol.com www.southernidaho.org

Office of the Governor Economic Development & Tourism P.O. Box 12428 Austin, TX 78711 512-936-0100

Governor's Office of Economic Development P.O. Box 200801 Helena, MT 59620 406-444-5634

Nevada

Governor's Office of Economic Development 808 West Nye Lane Carson City, NV 89703 800-336-1600

Jonathan Taylor, Director Office of the Governor Economic Development & Tourism biztex@gov.texas.gov www.texaswideopenfor business.com

Wyoming James Gandy CEcD, CCIM, President Nancy Windham, VP Frisco Economic Development Corp.

6801 Gaylord Parkway, Suite 400 Frisco, TX 75034 972-292-5150 jgandy@friscoedc.com nwindham@friscoedc.com www.FriscoEDC.com www.FriscoTXEB5.com

Mwasham@co.tulare.ca.us http://www.tularecounty economicdevelopment .org

Hawaii

State of Hawaii Department of Business, Economic Development and Tourism P.O. Box 2359 Honolulu, HI 96804 808-586-2355 Fax: 808-586-2427

Oregon

Governor’s Office of Economic Development 60 East South Temple, 3rd Floor Salt Lake City, UT 84111 801-538-8680

Scott Connell, President Sherman Economic Development Corporation (SEDCO) 307 W. Washington, Ste. 102 Sherman, TX 75090 903-868-2566 800-981-2566

Michael Washam Economic Development Manager Tulare County Economic Development 5961 S. Mooney Blvd.

Visalia, CA 93277 559-624-7187 Fax: 559-730-2653

Montana

Utah Texas

Alaska

Director Office of Economic Development and International Trade 1625 Broadway, Suite 2700 Denver, CO 80202 303-892-3840 Fax: 303-892-3848

Idaho Department of Commerce 700 W. State Street Boise, ID 83720 208-334-2470 800-842-5858

http://www.deison technologypark.com/

Kurt Foreman, Executive Vice President, Economic Development Greater Oklahoma City Chamber 123 Park Avenue Oklahoma City, OK 73102 405-297-8945

• MOUNTAIN

Wyoming Business Council 214 West 15th Street Cheyenne, WY 82002 307-777-2800 Fax: 307-777-2838

Business Oregon 775 Summer Street N.E. Salem, OR 97301-1280 503-986-0123

Washington

Susan St. Germain Washington State Department of Commerce Business Services Division 2001 6th Avenue, Suite 2600 Seattle, WA 98121 206-256-6100

scottc@sedco.org www.sedco.org

Click on to the world’s foremost economic development Websi te — and

CONNECT to the

WORLD! www.areadevelopment.com E-mail: areadev@areadevelopment.com

94

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FOR FREE SITE INFORMATION, CALL

800-735-2732, EXT. 225, OR VISIT US ONLINE AT WWW.AREADEVELOPMENT.COM

DirectoryContactsV2

12/31/13

• CANADA Alberta

Doug Cameron Senior Director Alberta Economic Development Marketing, Trade & Investment 4th Floor, Commerce Place 10155-102nd Street Edmonton, AB T5J 4L6 780-427-6702 Fax: 780-422-5486

City of Fort Saskatchewan 10005 - 102 St. Fort Saskatchewan, Alberta Canada T8L 2C5 1-780-992-6231 ecdev@fortsask.ca http://www.fortsask.ca

British Columbia

British Columbia Ministry of Jobs, Tourism & Skills Training International Trade and Investment Attraction Division 800 Hornby Street, Ste. 288, Vancouver, BC V6Z 2C5 604-660-2421 800-663-7867

Heather Oland Chief Executive Officer Initiatives Prince George Suite 201 1300 First Avenue Prince George, British Columbia Canada V2L 2Y3 250-649-3201

10:34 AM

Nova Scotia

John Ludovice, Acting Managing Director Investment Attraction Nova Scotia Business Inc. 1800 Argyle Street, Suite 701 Halifax, Nova Scotia Canada B3J 3N8 902-424-7631

Northwest Territories

David Ramsay, Minister Industry, Tourism and Investment Government of Northwest Territories P.O. Box 1320 Yellowknife, NT X1A 2L9 867-873-7500

Page 95

Jeff Garrah, CEO Jan Dines, Business Development Officer Kingston Economic Development Corporation 945 Princess Street @ Innovation Park Kingston, ON Canada K7L 3N6 866-665-3326 Fax: 613-546-2882 business@kingston canada.com www.kingstoncanada .com

Prince Edward Island

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

Brad Mix, Senior Director Prospecting and Innovation Program Innovation PEI 94 Euston Street P.O. Box 910 Charlottetown, PEI C1A 7L9 902-368-5867 Fax: 902-368-6301

lmagyar@cityof woodstock.ca www.cometothe crossroads.com www.cityofwoodstock.ca

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

Government of Saskatchewan Ministry of the Economy 300 – 2103 11th Avenue Regina SK S4P 3Z8 306-798-1278

George Kuksuk, Minister Economic Development & Transportation P.O. Box 1000 Station 1500 Iqaluit, NU X0A 0H0 867-975-7800 888-975-5999 Fax: 867-975-7870

Dr. Eric Hoskins, Minister Ontario Ministry of Economic Development, Trade and Employment 8th Floor, Hearst Block 900 Bay Street Toronto ON M7A 2E1 416-325-6666 866-668-4249 Fax: 416-325-6688

Investissement Québec 600, de la Gauchetière Ouest Bureau 1500 Montréal, PQ H2Y 1N9 514-873-4664 Fax: 514-873-5786

Currie Dixon Minister of Economic Development 212 Main Street, F-1, Suite 209 Whitehorse, Yukon Y1A 2A9 867-667-8628 867-393-7191 Fax: 867-393-6412

Saskatchewan

Nunavut

Ontario

Quebec

Yukon Territory

BUSINESS LOCATION TRACKER FOR INFORMATION ABOUT RECENT BUSINESS LOCATIONS/EXPANSIONS IN THESE STATES GO TO w w w. A r e a D e v e l o p m e n t . c o m / N e w s I t e m s

Site & Facility Planning Email Newsletters

oland@initiativespg.com www.initiativespg.com

,GHDV DQG ,QVLJKW IRU 0RYLQJ %XVLQHVV Read by more than 10,000 corporate executives Manitoba

Theresa Oswald, Minister of Jobs and the Economy Manitoba Entrepreneurship, Training and Trade 333 Legislative Building 450 Broadway Winnipeg, MB R3C 0V8 204-945-0067 866-626-4862 Fax: 24-945-4882

6LWH DQG )DFLOLW\ 3ODQQLQJ 7KLV :HHN Let us do the work for you — economic reports, studies and opinions gleaned from around the web by the Area Development editorial staff delivered once a week

New Brunswick Robert MacLeod, President & CEO INVEST NB P.O. Box 6000 HSBC Place Fredericton, NB E3B 5H1 506-453-8149 855-746-4662

Newfoundland and Labrador

Ben Gardner, Business Consultant Investment Attraction Newfoundland and Labrador Innovation, Business & Rural Development Confederation Building West Block, 2nd Fl. St. John's, NL A1B 4J6 709-729-7605 Fax: 709-729-0654

6LWH )DFLOLW\ 3ODQQLQJ ,QVLGHU Exclusive features, analyses and viewpoints from the industry’s best site selection and economic development consultants — not available anywhere else

Sign up NOW www.areadevelopment.com/newsletter

AREA DEVELOPMENT | 2014 Annual Directory

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AD INDEX / WEB DIRECTORY Advertiser

Page

ARKANSAS Hot Springs Metro Partnership www.GrowingHotSprings.com jim.fram@growinghotsprings.com

Advertiser

Page

MISSISSIPPI 63

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

59

CALIFORNIA

MISSOURI

Tulare County Economic Development Office 85 www.tularecountyeconomicdevelopment.org Mwasham@co.tulare.ca.us

Ameren Services www.ameren.com/EcDev mkearney@ameren.com

47

CONNECTICUT

Joplin Regional Partnership www.joplinregionalpartnership.com kwelch@joplincc.com

53

Cheshire Economic Development Corporation www.cheshirect.org jsitko@cheshirect.org

37

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

FLORIDA Florida’s Space Coast Economic Development Commission www.SpaceCoastEDC.org gweiner@SpaceCoastEDC.org Greater Fort Lauderdale Alliance www.LessTaxing.com pdoty@gflalliance.org

71

15

Northwest Georgia Joint Development Authority www.northwestgeorgia.us keith@northwestgeorgia.us Savannah Economic Development Authority www.SEDA.org bherndon@seda.org

69

11

67

IDAHO Southern Idaho Economic Development Organization www.southernidaho.org jansiedo@aol.com

NEW HAMPSHIRE City of Rochester Economic Development www.ThinkRochester.biz info@ThinkRochester.biz Jennifer.murphy.aubin@rochesternh.net

81

Onondaga County Office of Economic Development www.syracusecentral.com www.WhitePineCommercePark.com info@SyracuseCentral.com

43

Operation Oswego County www.OswegoCounty.org elivoti@oswegocounty.org

41

NORTH CAROLINA ElectriCities of North Carolina, Inc. www.electricities.com bdaniels@electricities.com

68

Wilmington International Airport www.FlyILM.com http://www.flyilm.com/AboutILMAirport/ BusinessPark.aspx jmorton@flyilm.com

64

Ameren Services www.ameren.com/EcDev mkearney@ameren.com

47

City of St. Mary’s Development Office www.stmarysdevelops.com scrotty@cityofstmarys.net

Arlington Heights Economic Development www.DiscoverArlington.com www.vah.com mmertes@vah.com

48

OKLAHOMA

Hoosier Energy Economic Development www.HoosierSites.com www.HEPN.com hgutzwiller@HEPN.com

13

INDIANA

Hoosier Energy Economic Development www.HoosierSites.com www.HEPN.com hgutzwiller@HEPN.com Huntington County Economic Development www.hcued.com mark@hcued.com

52

51

KANSAS Joplin Regional Partnership www.joplinregionalpartnership.com kwelch@joplincc.com

53

96

AREA DEVELOPMENT | 2014 Annual Directory

C2

TEXAS Amarillo Economic Development Corporation www.amarilloedc.com buzz@amarilloedc.com Greater Conroe Economic Development Council www.gcedc.org www.deisontechnologypark.com lcalhoun@CityofConroe.org Dallas/Fort Worth International Airport www.dfwairport.com phendershot@dfwairport.com

Lubbock Economic Development Alliance www.lubbockeda.org

78

7

5

72

73

Midland Development Corporation www.midlandtxedc.com PWelch@midlandtxedc.com

74

Odessa Development Corporation www.odessatex.com info@odessaecodev.com

75

Sherman Economic Development Corporation www.sedco.org www.shermansites.com scottc@sedco.org

23

Taylor Economic Development Corporation www.tayloredc.org traci.anderson@tayloredc.org

76

TexAmericas Center www.texamericascenter.com bill.cork@texamericascenter.com

30

77

53

Texas Economic Development & Tourism www.TexasWideOpenforBusiness.com biztex@gov.texas.gov

Greater Oklahoma City Partnership www.greateroklahomacity.com www.greaterokc.tv kforeman@okcchamber.com

18

Tomball Economic Development Corporation 21 www.tomballtxedc.org kviolette@tomballtxedc.org

MidAmerica Industrial Park www.maip.com tedallison@maip.com Santee Cooper www.santeecooper.com www.scprimesite.com george.haygood@santeecooper.com

WISCONSIN 1

70

Yankton Office of Economic Development www.yanktonedc.com www.visityanktonsd.com ecodev@yanktonsd.com

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

FOR FREE SITE INFORMATION, CALL

Madison Region Economic Partnership www.madisonregion.org info@madisonregion.org Wisconsin Economic Development Corporation www.InWisconsin.com Brenda.Hicks-Sorensen@wedc.org

50

49

CANADA ALBERTA

SOUTH DAKOTA

Chattanooga Chamber of Commerce www.ChattanoogaCanDo.com cwood@chattanoogachamber.com C4

Page

Joplin Regional Partnership www.joplinregionalpartnership.com kwelch@joplincc.com

57

City of Fort Saskatchewan www.fortsask.ca ecdev@fortsask.ca

88

BRITISH COLUMBIA

TENNESSEE

KENTUCKY Kentucky Cabinet for Economic Development www.ThinkKentucky.com econdev@KY.gov

50

SOUTH CAROLINA 13

Tennessee Department of Economic & Community Development www.tnecd.com www.tn.gov/ecd/ allen.borden@tn.gov

Frisco Economic Development Corporation www.friscoedc.com www.FriscoTXEB5.com jgandy@friscoedc.com

OHIO

ILLINOIS

Hendricks County Economic Development Partnership www.hcedp.org Kelley@hcedp.org

39

NEW YORK

GEORGIA Georgia Power www.SelectGeorgia.com econdevga@southernco.com

55

Advertiser

61

Initiatives Prince George www.initiativespg.com oland@initiativespg.com

87

ONTARIO 62

Kingston Economic Development Corporation www.kingstoncanada.com business@kingstoncanada.com Woodstock Economic Development www.cityofwoodstock.ca www.ComeToTheCrossroads.com lmagyar@cityofwoodstock.ca

800-735-2732, EXT. 225, OR VISIT US ONLINE AT WWW.AREADEVELOPMENT.COM

88

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