Area Development Magazine Directory 2015 by Area Development

THE NEW ECONOMY: CROWDFUNDING

REDUCING INDUSTRIAL FACILITY COSTS

SITING THE DISTRIBUTION CENTER

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F A C I L I T Y

P L A N N I N G

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DIRECTORY/2015

IS WATER THE NEW BLUE ECONOMY? WATER ISSUES ARE PUSHING ONTO THE CORPORATE PLANNING AGENDA.

+ ANNUAL DIRECTORY

W O R K F O R C E IN M I S S I S S I P P I

WHERE CUSTOMIZED SKILLS TRAINING MEETS PRIDE IN A JOB WELL DONE. VT Halter Marine — Pascagoula, Mississippi

Mississippi’s skilled workforce is its greatest treasure. Mississippians have a “can-do” attitude and are driven by pride to do things right. Robust workforce training programs offered throughout the state equip Mississippi’s people with the necessary skills to get the job done. A company is only as good as its people, and that’s why more companies are choosing a Mississippi location to compete in today’s global marketplace.

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MISSISSIPPI RANKS

MISSISSIPPI IS A

MISSISSIPPI RANKS

TOP 5 IN ADVANCED

RIGHT TO WORK STATE CUSTOMIZED

WE OFFER STANDARD &

MANUFACTURING SKILLS TRAINING

FOR COMPETITIVE

LABOR COSTS

Business Facilities Magazine, 2014

Expansion Solutions Magazine, 2013

Learn more about the Mississippi advantage at mississippi.org/workforce.

09/12/14 3:31 PM

Made in Mississippi – Where Innovation and a Productive Workforce are Yielding World-Class Results Success in today’s economy requires a strong competitive

in Greenville in the Mississippi Delta. Reaffirming its commitment to

advantage, and companies from around the world are finding

the state, the company announced in October 2014 it was expanding

that advantage in Mississippi. Throughout the state, economic

operations at its Greenville facility, which produces products

development professionals at all levels collaborate to create a

under iconic household brands such UNCLE BEN’S® and SEEDS

business environment that spurs growth and success. This includes

OF CHANGE®. Mars Food is also constructing a new state-of-the-

using available resources to best meet the needs of companies as

art Research and Development Application Center in Greenville to

they locate or expand in the state. As a result, Mississippi’s strong,

support food science innovations for Mars Food’s brands globally.

supportive business climate has once again garnered top national

More than a decade ago, Nissan opened an automotive

rankings from industry publications and organizations. Low energy rates and competitive operating costs combine with

assembly facility in Canton, Miss., where the plant produced one model. Since that time, Nissan has invested significantly in its

the state’s nationally ranked one-stop permitting process to bolster

Canton operations, most recently adding the 2015 Nissan Murano to

the state’s favorable business climate. A major contributing factor

the facility’s production line-up. The first 2015 Murano, the eighth

to Mississippi’s strong business climate is its dedicated, productive

model currently assembled in Canton, rolled off the line in November

workforce. Mississippi recognizes companies today seek locations

2014. In fact, the addition of the Murano to Nissan Canton’s line-up

with a skilled, readily available labor pool. Working in collaboration

positions the facility as the global source for Murano production,

with the state’s 15 community colleges and universities, customized

creating export opportunities in more than 100 markets worldwide

training programs are available to ensure the state’s workers are

and shifting the plant from a domestic manufacturer to a global

always up to any task. In fact, global leaders from companies like

one. Today, more than 6,000 Mississippians are engaged in the

Toyota have cited the state’s available workforce and its robust

assembly of some of Nissan’s most popular models.

training programs as the driving force behind their decisions to locate or pursue growth opportunities in Mississippi.

Based in Oxford, Miss., FNC Inc. pioneered real estate collateral information technology. Since the late-1990s, FNC has offered solutions that automate appraisal ordering, tracking, documentation and review for lender compliance with government regulations. Today, the company serves financial clients around the globe. In December 2014, FNC broke ground on its new headquarters complex in Oxford to accommodate the company’s continued growth, a project that is creating 310 high-tech, advanced jobs and is demonstrating to the world that Mississippi is a great place for innovation. Rolls-Royce, GE Aviation, Northrop Grumman, ROXUL, BorgWarner, Toyota, and Caterpillar are just a few of the global business leaders who call Mississippi home. An environment that supports growth and fosters success is a top priority for

Gov. Phil Bryant and Canton, Miss. Mayor Arnel Bolden at the roll-off of the ﬁrst Mississippi-made Nissan Murano.

In 2014, leading companies across target industries chose to once again invest in Mississippi, having known for years the numerous benefits of doing business in the state. For nearly four decades, Mars Food has been a prominent and valued member of

Mississippi’s leaders, and the long list of industries choosing to grow in Mississippi is a testament to that. With shovel-ready sites, a supportive business climate and a highly skilled workforce that takes pride in a job well done, opportunities are abundant in Mississippi. To learn more, visit www.mississippi.org or call the Locate in Mississippi team at 1.800.360.3323.

the Mississippi business community, with manufacturing operations

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FEATURES

CONTENTS

16 Leading Practices in the Location Decision Process Identifying all stakeholders early on, defining evaluation criteria, staying ahead of the changing environment, and assessing risk lead to obtaining an appropriate site.

18 Finding a Location That’s a Perfect “Fit” Michelin, a global tire manufacturer, seeks ideal infrastructure — and more — for its crucial distribution centers.

24 Decision-Makers, Drivers, and Inner Workings of the Location Selection Process

COVER STORY

20 Water: The New Blue Economy? As companies plan for the future, water keeps pushing itself onto their agendas like an incessant tide.

Those charged with making the location decision look to satisfy the company’s long-term goals, while achieving a return on the investment and minimizing risk.

30 Planning for Expansion in Secondary Markets Locating in secondary markets may present cost and space advantages, but companies would be wise to also evaluate whether owning or leasing better suits their needs.

33 2014 Gold & Silver Shovel Award Recipients Governors and economic development leaders in 12 states proudly display their Gold & Silver Shovel awards.

36 Reducing Industrial Facility Costs with Sustainable Planning Long-term savings achieved by sustainable facility design can trump short-term savings, while also resulting in a more productive, environmentally conscious workplace.

27 Facilities Management — On the Frontier of Service and Technology Technology has had a major influence on facilities in recent years — affecting everything from where a company needs to locate, to building infrastructure, to space requirements.

38 Reshoring: Making All the Right Moves There’s more involved in successfully reshoring a foreign operation back to the U.S. than simple cost comparisons.

Exclusive Online Content NOW ONLINE... Front Line: Sustainable Research Facility a First in the U.S. for Max Planck Institute Location Notebook: Economic Innovation in the “New” New Orleans Workforce: The Location Factor Companies Must Get Right

Economic Forecast: What Lies Ahead in 2015? AD Research Desk: Behind The Walls of Recent Corporate HQ Transformations Construction: Managing Growth in a Challenging Market

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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Volume 49 | Number 5 ANNUAL DIRECTORY

Quote:

“Year’s end is neither an end nor a beginning but a going on, with all the wisdom that experience can instill in us.” Hal Borland (1900–1978), American author and journalist

4 Editor’s Note

10 First Person

Resources for a Prosperous 2015

Jennifer Carter, Curriculum Director, SpaceTrek, Morehead State University

DEPARTMENTS

12 Front Line

6 In Focus

Serious Gaming Boosts Training Simulation

New Blood Needed For Manufacturing

8 In The Know • Wyoming Has Nation’s Best Tax Climate • Real Estate Markets With Intermodal Access to Grow in Importance

14 Front Line The New Economy: Crowdfunding for Civic Projects

112 Ad Index / Web Directory

43 State At-A-Glance information is grouped by region. Listings of all state contacts and SelectSites contacts follow At-A-Glance sections. 2015

ANNUAL DIRECTORY Index To Regional Reviews And At-A-Glance Information/Listings

An index to state info and listings within each region appears on page 43 Visit this interactive directory offering Web and e-mail links to economic development organizations, GIS mapping and radius demographic reports, available buildings and sites listings, social media contact information, streaming videos, and more.

www.areadevelopment.com Join Our Newsletter areadevelopment.com/newsletter

Online Database Resources www.facilitylocations.com

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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 2014 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 | 2015 Annual Directory

EDITOR’SNOTE

ANNUAL DIRECTORY 2015

Resources for a Prosperous 2015 Oil prices are falling, which has put more money in consumers’ pockets. This, in turn, has led to increased investment by businesses in machinery and facilities to turn out the products consumers want. Businesses also now need to hire more employees. Consequently, hiring is up — November net job gains were more than 320,000 — the best figure in three years and the strongest gain for U.S. employment since 1999. All of this translates into projections for faster economic growth carrying into 2015. In fact, in early December, the National Association for Business Economics (NABE) said it expects the U.S. economy, as measured by GDP, to expand by 3.1 percent in 2015, representing the strongest rate of growth since 2005, when the economy grew 3.3 percent. “Manufacturing purchasing and supply executives expect continued growth in 2015,” comments Bradley Holcomb, chair of the Institute for Supply Management’s Business Survey Committee. “Manufacturing experienced 18 consecutive months of growth from June 2013 through November 2014…and our forecast calls for continuation of growth in 2015. Manufacturers are also predicting growth in both exports and imports in 2015 over 2014,” he says. With good news all around, company executives need to be prepared to make their next location or expansion move. In this 2015 Annual Directory issue, you will find several articles outlining the site selection process: “Leading Practices in the Location Decision Process,” “Decision-Makers, Drivers, and Inner Workings of the Location Selection Process,” and others. Also included is information on all 50 states’ demographics, industries, taxes, and manufacturing employment, as well as state-level contacts and contacts for Select Sites sponsoring this directory, with web and email addresses. 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. Please take advantage of all of these resources as we enter 2015 and finally leave the effects of the recession behind.

www.areadevelopment.com EDITORIAL E-mail: editor@areadevelopment.com Editor Geraldine Gambale Staff and Contributing Editors Lisa Bastian Craig Guillot James Berger Cynthia Kincaid Dale D. Buss Beth Mattson-Teig Dave Claborn Phillip Perry Mark Crawford Mali R. Schantz-Feld Dan Emerson Steve Stackhouse Clare L. Goldsberry Karen Thuermer DESIGN/PRODUCTION Art & Design Patricia Zedalis Production Manager Jessica Whitebook Production Assistant Talea Gormican EXECUTIVE Publisher Dennis J. Shea dshea@areadevelopment.com Sydney Russell, Publisher 1965-1986 ADVERTISING SALES William Bakewicz (ext. 202) billbake@areadevelopment.com Valerie Krpata (ext. 218) valerie@areadevelopment.com ONLINE SERVICES Digital Media Manager Justin Shea (ext. 220) jshea@areadevelopment.com Business Development Matthew Shea (ext. 231) mshea@fastfacility.com Web Designer Carmela Emerson BUSINESS SERVICES Reader Service Barbara Olsen (ext. 225) olsen@areadevelopment.com Circulation Gertrude Staudt circ@areadevelopment.com

Editor

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

2014 Editorial Advisory Board Justin T. Bickle Project Manager, Corporate Real Estate, DHL Global Business Services Rose Burden Executive Director, Southeast Area Negotiated Incentives Leader, Ernst & Young Christine Bustamante National Co-Leader, Global Location and Expansion Services, KPMG Gregory Burkart Managing Director, Specialty Tax Practice Leader, Duff & Phelps, LLC Dennis Cuneo Partner, Fisher & Phillips LLP Tim Feemster Managing Principal, Foremost Quality Logistics Larry Gigerich Managing Director, Ginovus Stephen Gray CEO, Gray Construction

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EXECUTIVE OFFICES

Minah C. Hall Managing Director, True Partners Consulting LLC

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

Scott Kupperman Founder, Kupperman Location Solutions, LLC

Kathy Mussio Managing Partner, Atlas Insight

Dan Levine Practice Leader, Scott Redabaugh Managing Director, Location Strategies and Economic Development Jones Lang LaSalle Oxford Economics, Inc. Dick Sheehy Director, Advanced Planning & Jamie M. Lominack Real Estate Manager, Site Selection, CH2M HILL Michelin North America Eric Stavriotis Senior Vice President, Bill Luttrell Senior Locations Strategist, CBRE Werner Global Logistics, Werner Enterprises, Inc. Thomas Stringer Esq. Director, Michael McDermott Consulting Manager, Business Advisory Services, Ryan & Company Global Business Consulting, Jeff Troan Director, Economic Development Cushman & Wakefield Opportunities, Lockheed Martin Bradley Migdal Executive Managing Director, Dean J. Uminski Executive, Business Incentives Advisory Services, Site Selection Consulting, Crowe Horwath LLP Transwestern

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Halcyon Business Publications, Inc. President Dennis J. Shea Finance Mary Paulsen finance@areadevelopment.com All correspondence to: Area Development Magazine 400 Post Avenue, Westbury, NY 11590 Phone: Toll Free: Fax:

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Once you hear all the beneﬁts of moving or expanding your food business into Hoosier Energy territory, you’ll think to yourself, “Why didn’t I do this sooner?” And there are miles and miles of options. It all starts with our 59 counties in central and southern Indiana and southeastern Illinois offering a pro-business environment. Together they provide access to about 70% of the U.S. population in only a day’s drive. Toss in an experienced workforce, fertile soil and excellent climate conditions and the business recipe starts looking pretty appetizing. That all means once you’ve seen our shovelready sites or existing facilities you’ll come up with your own reasons to locate here.

HOOSIER S ITES.COM 812-876-0294

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INFOCUS

New Blood Needed For Manufacturing By Douglas B. Rose, President, AeroGear

Douglas Rose is president of Windsor, CT-based AeroGear, a manufacturer of aircraft gears and gear assemblies.

Manufacturing is steadily going “grey,” and there seems to be a worrisome dearth of new workers with which to replace aging, retiring workers — particularly in aerospace, my segment of the industry. I believe it would be a great shame, and an economic catastrophe, if manufacturing sectors in the U.S. were to disappear because of a loss of interest in those jobs. While it is true that unskilled jobs at many firms have been outsourced overseas, skilled workers remain in high demand and will be for the foreseeable future. In aerospace, just as in manufacturing in general, employees are needed across the board, from technical positions to factory floor workers to management. These are well-paying jobs that lead to solid, long-term careers in a proud workforce. Part of the problem in attracting young minds to these jobs is perception: middle school and high school students don’t realize that manufacturing no longer necessarily means repetitive, assemblytype work in a dirty factory, but instead work in a high-tech, computer-controlled facility. Most aerospace manufacturing companies today are clean, high-tech, and provide high-paying jobs. They use some of the latest equipment and technology, such as multi-axis mill/turn machines and 3D computer solid modeling. The high-quality, complex product that is produced requires a highly skilled, competent workforce. Often production is performed in a team-based environment where the product is flowed through the various manufacturing processes in a line or cell. The transformation of raw material into a final product, with constant cross-training and updating of the skills involved, can be very satisfying. An entry-level position on a factory floor can lead to a key role in manufacturing engineering or quality assurance. In Connecticut, the aerospace industry employs some 29,000 people. As a cluster, these firms often join together to support quality training in vocational schools and state colleges for this workforce. These companies regularly join to educate area legislators, and advocate for increased state resources to expand these kinds of educational opportunities and enhance the quality of the existing educational programs in manufacturing. Several dozen manufacturers of aerospace components have joined to promote their neighborhood, the Connecticut River Valley, as a unique cluster of companies that can serve the needs of the primary aircraft engine manufacturers from around the world…Connecticut’s answer to Silicon Valley. Even competitors are sharing the cost of specialized training programs and are often joining to bid on projects that would be too much for any single company to handle individually. This has given the neighborhood a distinctly competitive edge in the global marketplace.

Preparing the Next Generation of Skilled Manufacturing Workers The greying of the workforce in this cluster, however, could result in the region losing its edge. I believe this is a problem not just in aerospace manufacturing, but also in any industry where highly skilled factory workers are needed. It is an issue that should be addressed nationally through a federal education policy revision — rather than attacked individually by any particular industry or geographic region. How do we address this? School guidance counseling, which is college-oriented, should be a clarion call trumpeting these careers. And, we can promote and emulate initiatives such as those of the Society of Manufacturing Engineers (SME) with its scholarships, awards, and innovative school collaborations that inspire and train the next generation in manufacturing. State-of-the-art tools in school curriculums, career education, interactive websites, robotics challenges…all of these enhance interest in manufacturing. And corporations, too, have a role to play, either with monetary contributions, donation of equipment and materials, volunteering, internships, shadowing, or other sponsorships. Hopefully, we will have a fresh crop of skilled workers ready to celebrate next October’s National Manufacturing Day.

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JUST LOOK FOR THE MOST ADVANCED MANUFACTURING IN THE WORLD. With the broad shoulders of an enduring legacy of manufacturing to stand on, Ohio is the epicenter of the additive manufacturing revolution. We have galvanized the efforts of industry, universities, thought leaders and government, an alignment that is producing breakthrough after manufacturing breakthrough. From prototype to production, Ohio is leading the way. The race is on. And the ямБrst one to the future wins.

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IN THE KNOW Wyoming Has Nation’s Best Tax Climate In late October, the Tax Foundation released its 2015 State Business Tax Climate Index. The index looks at more than 100 variables in five categories: individual income tax, corporate income tax, sales tax, unemployment insurance tax, and property tax. The 10 best states are shown in the accompanying chart. 1. Wyoming According to the Tax Foundation, many of the top states ended up in that spot 2. South Dakota because they don’t impose one of the major taxes. However, it is noted that Indiana and Utah impose all the major tax types, but do so at low rates. 3. Nevada Also worth noting, North Carolina showed the single largest jump in the rankings in 4. Alaska the history of the index — going from 44th to 16th place in one year. “North Caro5. Florida lina’s largest improvement was in the individual income tax component section, where 6. Montana legislation restructured the previously multi-bracketed system [with a top rate of 7.75 7. New Hampshire percent to a single-bracket system with a rate of 5.8 percent] and a generous standard 8. Indiana deduction of $7,500,” reported the Tax Foundation. 9. Utah North Carolina is also reducing its corporate income tax rate — to 6 percent this 10. Texas year from 6.9 percent last year. And, if the state achieves certain revenue targets for its general fund, the corporate income tax rate could drop to as low as 3 percent by 2017.

10 Best State Tax Climates

Real Estate Markets With Intermodal Access to Grow in Importance A new report from CBRE Group, Inc. states that the expansion of the industrial real estate market has been driven by the evolution of supply chains. With today’s supply chain strategies now being put at risk by a nationwide shortage of truck drivers, the importance of real estate in supply chain Total Supply Chain Costs arrangements has further increased. The shortage of truck drivers and the hours-of-service regulations are driving up distribution costs. Therefore, rail has become a more costINVENTORY effective choice. According to CBRE, increased demand for warehouse and distribution space in markets that LABOR have intermodal access indicates that companies are opting for rail access to satisfy a portion of their long-haul transportation requirements. As a AT result, CBRE is predicting that distribuLEAST tion markets with significant intermoTRANSPORTATION dal facilities — e.g., the Inland Empire, Indianapolis, Baltimore, Dallas/Fort OCCUPANCY Worth, Orlando, central New Jersey, Portland, San Antonio, northern Virginia, and Houston — will grow OTHER their inventory of industrial space most Source: CBRE Supply Chain Services, November 2014 quickly over the next 12 months.

20%

15%

50%

10%

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11/12/14 10:46 PM

FIRSTPERSON JENNIFER CARTER CURRICULUM DIRECTOR SPACETREK, MOREHEAD STATE UNIVERSITY

grow into bigger companies.

Tell us a little bit about SpaceTrek. Carter: SpaceTrek was founded in 2012 as a one-week space engineering camp for high school girls held at Morehead State University in Morehead, Kentucky. The goal of the pilot program is to empower young women through STEM (science, technology, engineering, math) education by focusing on space systems engineering. We create a full-scale atmospheric mission where girls build, calibrate, and launch a satellite-like device and then perform data analysis measurements. What role does mentorship play in helping women enter male-dominated fields? Carter: The American Association of University Women’s report Why So Few? addresses the lack of females in science and engineering. One of those identified needs is for more role models. Young women can find mentors online now through programs like FabFems or Million Women Mentors, which supports the engagement of one million STEM mentors from corporations, government entities, non-profits, and higher education. Do you think women with science and technology backgrounds would make good leaders for the manufacturing sectors? Carter: We are missing a significant component within manufacturing by having it primarily male-dominated, particularly in management. There are many women with outstanding backgrounds in science, engineering, and technology that have significant management skills and would be highly effective in management-level positions. How is private investment in space exploration going to help businesses grow? Carter: Private investment in aerospace companies, particularly in small space-related companies, has become significant and important of late. Small companies, including Skybox, a Stanford University spinoff that builds high-performance imaging satellites, and Planet Labs, which successfully launched the world’s largest earth-imaging constellation of 28 satellites, have greatly benefited from venture capital investment. What impact has the venture capital investment had on these companies? Carter: Skybox has developed satellites that take highdefinition video from small space platforms. Google has purchased the technology. Venture capital infusion for Planet Labs has allowed them to build and launch large constellation satellite technologies. Investment in these companies allows them to offer opportunities to smaller businesses wanting access to space for commercial purposes. This allows these smaller companies to

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Why is nanosatellite technology important to small and mediumsized businesses? Carter: Nanosatellites, many of which can fit into the palm of your hand, have specific niche applications. They are inexpensive to develop, launch, and operate compared to large monolithic satellites. Nanosatellites may cost hundreds of thousands or a few million dollars to develop, whereas conventional satellites can cost in the hundreds of millions of dollars to develop and launch. So this technology is now economically feasible for smaller companies. How can businesses use this technology as a competitive advantage? Carter: Companies can use the technology for everything from earth remote-sensing applications to tracking inventory being transported by ships around the world. Remote sensing technology works using broad optical spectrums that can monitor forest fires and flooding plains, which is useful in disaster relief. These satellites allow companies to have greater spacial coverage and more frequent refresh rates. Planet Labs can have a small satellite at any point over the Earth within 20 minutes. So it’s really about finding the niche that is appropriate for a company and then applying that technology to the business application. What is the best way for cities and states to enhance and encourage technological innovation? Carter: Cities and states play a critical role in the evolution of technological innovation and economic development. And one of the best ways to encourage technological growth is through public-private partnerships. For instance, look at the state of Fribourg in Switzerland. In the 1970s, Fribourg based its economy on agriculture. Today, its number-one manufactured export is aerospace. They did this through an intentional initiative to evolve their economic base to high-tech industries by working with the universities and high-tech companies in the region, and it worked. The Swiss used their clock-making skills and the abundance of particle physicists, because of the European Organization for Nuclear Research’s Large Hadron Collider research, to develop the first atomic time standards for the European GPS satellites.

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What can communities do to attract more high-tech companies? Carter: Companies look for viable and technologically trained labor forces. They want to locate in regions where the health of the population is good so that workers don’t miss work shifts. And they want cost-effective benefits and health insurance. So the health of the workforce is a huge driver for attracting hightech companies. Businesses also want cost-effective facilities with access to high speed Internet and to be located in regions with inexpensive power. How can municipalities better train their workforces for the 21st “high-tech” century? Carter: Universities and technical and community colleges can create appropriate academic programs to produce a workforce for STEM positions. High schools can focus on initiatives that are STEM-oriented and produce feeder programs for the universities and technical colleges. Communities can also support and promote business incubators. What is happening “next generation” in nanosatellite technology? Carter: There are two major technologies on the verge of being implemented that are game-changers for nanosatellite

technologies. They are onboard propulsion systems and radiation tolerant technologies for microprocessors and microcontrollers. Propulsion systems allow satellites to change and leave their orbits to explore new regions, which is critical for satellite constellations to perform tasks such as earth remote sensing. Radiation-hardened and radiation-tolerant materials are also crucial for beyond earth exploration. Satellite technologies will take advantage of constellations for higher refresh rates and for exploring the unknown reaches of the solar system.

THE ASSIGNMENT Jennifer Carter, curriculum director for SpaceTrek at Morehead State University and director of Space Science for the Institute of Aerospace Education, recently talked with Area Development about the role that space science is now playing in growing the leaders and small businesses of tomorrow. The Space Science Center has become an important focus for research in nanosatellite technologies, better known as CubeSats. These small satellites are the size of a loaf of bread and have become the defacto worldwide standard for small satellite technologies.

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 À QG RXW KRZ WR KDUQHVV 1HEUDVND·V power, contact the economic development professionals at Nebraska Public Power District.

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FRONTLINE

Serious Gaming Boosts Training Simulation By Dan Emerson

arlier this year, George Mason University celebrated the opening of its new Simulation and Game Institute (SGI), one of only four international affiliates of the world-renowned Serious Games Institute, based at Coventry University in England. The Serious Games Institute’s other affiliates are in Singapore, South America, and Mexico. SGI serves as the applied research, business development, and corporate education arm of the Computer Game Design Program in Mason’s College of Visual and Performing Arts. It offers cutting-edge game design research and development; simulation and game training and certification; visualization and simulation software development; and rapid prototyping. The facility also provides offices, studios, research space, and a product development lab for individuals, entrepreneurs, and companies in the field of simulation, modeling, and game design. In addition, SGI provides access to commercialization and marketing channels; student development talent; research faculty; industry experts; mentors; business counseling support; and the potential of financial investment from foundations and equity partners, according to SGI Director Scott Martin. Emerging companies choosing to reside in SGI receive business assistance services through the Mason Enterprise Center and the Prince William County Department of Economic Development. The five emerging businesses already accepted into the institute are Bruxe Studios, Little Arms Studios, Zaah On Campus LLC, Professions Quest LLC, and MediaShock LLC. Kyle Bishop, CEO of Little Arms Studios, founded his company in October 2012 and moved into space at SGI 11 months later. The firm develops software for training simulations and video games. Bishop calls the institute “a very creative and productive environment, with a number of young teams doing similar things.” He says the firm has also received nontechnical assistance from SGI, including

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“helping us develop a business plan and find resources, such as accountants.”

The Result: More Information and Realism Martin says the new institute is modeled on the Serious Games Institute at the University of Coventry. While planning the institute at George Mason, “we visited there, looked at their model, and found that it was a scalable model.” While computer simulation is not a new discipline, “what is new is that simulation modeling is being incorporated with game engines,” to enable simulations yielding much more information and realism, Martin says. For example, Little Arms Studio is developing a sophisticated training simulator for the Fairfax County Fire Department. It uses proprietary algorithms to show how a fireman would likely react in a fire situation, with the ability to factor-in variables such as oxygen and poisonous gases in the air. “We’ve also brought our fire and police department there to see if that software may be applicable for them,” says Jeff Kaczmarek, executive director of the Prince William County Department of Economic Development. “We’ve also brought a large defense contractor, Newport News Shipbuilding, to show them what these companies can do for them.” The new institute already has “a number of interns working at companies in the area, building things to solve problems…and serving as an incubator for new companies,” Martin notes. SGI also performs community outreach, with a summer program that teaches programming, “cyber defense,” game design, and mobile app development to kids from ages six through high school. Another 150 to 200 kids attend weekend sessions during the school year. But the institute’s most valuable asset is the ability to “funnel university students with these skill sets that companies need today,” Martin says. “Prince William County has a pipeline of incredible talent and unmatchable expertise to support companies in the region.”

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FRONTLINE

The New Economy: Crowdfunding for Civic Projects By Lisa A. Bastian

lthough the Great Recession ended mid-2009, countless cities nationwide are still dealing with sluggish economies and stressed operating budgets. As a result, dwindling pots of taxpayer monies are eliminating or even mothballing some economic development projects. What’s a community to do? For a small but growing number of locales, “crowdfunding” is part of the solution. Simply stated, crowdfunding raises small amounts of capital from a large number of people via short-lived Internet campaigns posted on websites known as platforms. In 2013 alone, this five-year-old industry raised over $5.1 billion worldwide; by 2015, it could bring in $96 billion a year globally. The subgenre of civic crowdfunding is an economic development game-changer. It can involve — directly or indirectly — the use of government funds, assets, and/ or sponsorships to transform neighborhoods. More importantly, it’s also changing the idea of how people can work together for “the common good” and take a more active role in decision-making. Some general platforms like Kickstarter and IndieGogo allow civic crowdfunding in their project mix. However, platforms focused only on civic campaigns exist too, and include Spacehive, Neighbor.ly, ioby, and RaiseanAim.

What the Numbers Say Hard research about this niche investment phenomenon is hard to come by, but it does exist. In mid-2014, Rodrigo Davies, founder of the Civic Crowdfunding Research Project at MIT, released his 173-page report dissecting civic crowdfunding in the U.S. and abroad. Between 2010 and March 2014, Davies analyzed 1,224 civic campaigns on seven platforms, and found they raised $10.74 million collectively and, on average, $6,357 individually. The

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median campaign fundraising goal was $8,000, and the median pledge was $62 for all 113,468 pledges reviewed. Most funds were raised in the U.S., with projects based mainly in New York, California, Florida, Illinois, and Oregon. The number of funders for the analyzed projects varied widely, from a few souls to well over 3,000 individuals. If governments do get involved, evidence shows they’re choosing to promote or facilitate civic campaigns, set up their own, and/or match crowdsourced monies. Citizinvestor, the largest crowdfunding platform for government projects in the U.S., has over 170 government partners. Its new Citizinvestor Connect service lets cities set up their own platforms. Here are examples of a few successful civic projects: • A campaign in Gainesville, Florida, raised over $20,000 to double the size of a basketball program for at-risk youth. • Patrons raised $10,050 for the “Avenue for the Arts” project in Grand Rapids, Michigan. This feat triggered a $10,000 contribution from the Michigan Economic Development Corporation. • In Rotterdam, The Netherlands, locals crowdfunded 100,000 euros to build an urban pedestrian bridge comprised of 17,000 planks. Already the new bridge has dramatically revitalized two city areas previously not connected. • Other projects have funded a bike-share program in Kansas City, Missouri; a new community center in Glyncoch, Wales; and a new energy-efficient school in Croatia. No one expects civic crowdfunding to finance a city’s new football stadium — at least for now. But if one thing is for certain, it’s that this small-scale activity will continue to fund big-time dreams across the globe, with or without government’s help.

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Doing Business in

NEW YORK STATE In 2014, START-UP NY, a game-changing initiative that creates tax-free zones to attract and grow new businesses across New York State, was formally launched. START-UP NY seeks to accelerate job creation and entrepreneurialism across the state on a large scale. The State University of New York (SUNY) campus system, City University of New York (CUNY), and private university and college communities serve as the framework of the START-UP NY program to attract growing businesses from around the globe. Under the program, businesses have the opportunity to operate completely tax-free for 10 years on eligible campus space and land. Businesses partner with the state’s higher education institutions and are able to access industry experts and advanced research laboratories. START-UP NY helps eligible companies to lower their overall tax burden, thereby reducing the cost of doing business.

Creating Jobs The dozens of companies participating in START-UP NY are projected to invest over $80 million and create more than 1,700 new jobs in tax-free areas, such as those at SUNY Buffalo, Rochester Institute of Technology (RIT), Cornell University, Stony Brook University, and SUNY Downstate Medical Center. Among these is Datto, Inc., which recently opened offices in downtown Rochester in a building owned by RIT. Datto, a global provider of backup, disaster recovery, and “intelligent business community” solutions, is committed to creating over 70 jobs over the next few years. According to Datto’s founder and CEO Austin McChord, “RIT has been instrumental in helping support and guide us through the START-UP NY process…there is an unlimited, untapped potential in the area, and I hope we start a wave of other companies moving to Rochester, driving the economy, and taking advantage of the vast talent pool in the region.” Some 500 new jobs will be created over the next five years as Liazon Corp., a national leading provider of private online benefits exchanges, expands its technology and operations in Buffalo under the sponsorship of SUNY Buffalo. The company will hire graduates from computer science, business, accounting, marketing, and other departments, as well as pursue research collaboration and curriculum development with the university by identifying necessary skills for graduates. Spurring Business Commercialization “Significantly, these first waves of approved businesses align with the core research sectors of SUNY’s Networks of Excellence, a key part of Governor Cuomo’s Innovation Agenda,” noted Dr. Tim Killeen, president of the Research Foundation for SUNY and SUNY’s vice chancellor for research. “The Networks support the mission of START-UP NY by bringing together SUNY’s top scholars and industry experts to spur research and business commercialization opportunities in high demand areas such as health, neuroscience, energy, materials, and advanced manufacturing.”

To learn more about the START-UP NY program, find answers to frequently asked questions, and search for eligible space, visit www.startup.ny.gov AREA DEVELOPMENT | 2015 Annual Directory 15

LOCATION ANALYSIS

Leading Location Practices Identify All Stakeholders A cross-functional, collaborative team is formed.

Leading Practices in the Location Decision Process Identifying all stakeholders early on, defining evaluation criteria, staying ahead of the changing environment, and assessing risk lead to obtaining an appropriate site and avoiding costly mishaps. By Michele Kitch, Senior Manager, Global Location & Expansion Services, KPMG LLP, Chicago, IL

Define Evaluation Criteria Values are assigned based on strategic objectives/function of new facility.

Stay Ahead of Changing Environment Process is altered/adapted by examining changing business (internal) and market (external) conditions.

Assess Risk and Perform Due Diligence Comparative factors (legal, regulatory, etc.) of emerging markets are examined.

Choose Optimal Location and Site

eal estate and related facility investments represent a significant cost of capital whether owned or leased, new or expanding, or industrial, commercial, or not-for-profit. These investments generally represent a longer-term business commitment, making it important to implement leading practices in site selection to obtain an appropriate site and avoid costly mishaps. A few leading practices are summarized herein.

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Identifying All Stakeholders Early for Improved Results The location decision process can be led by many in an organization — e.g., real estate, operations, supply chain, legal, etc. — however, it is important to identify all stakeholders early in the process and have a cross-functional, collaborative team. Consensus and input from team members can provide a better overall result. Costly mistakes and inefficient processes may be mitigated by focusing on up-front team planning to obtain agreement on the strategic objective, determining that evaluation criteria are fully developed, and keeping up with available business information to respond to changing market conditions. In the past, a company’s strategic objective may have been focused solely on productivity. This strategic objective may lead to a site selection process where cost reduction is the focal point. A new strategic objective may be concentrated on innovation, with productivity as a secondary consideration. Reviewing a new or existing location should involve understanding the strategic objectives so that the business needs can be met. The site selection project manager may have broad authority to act on a vision for innovation that may not have had input from a variety of functional areas and, therefore, has not been fully reviewed within the company. What may seem like the ideal solution for innovation could prove to be too costly. By involving all stakeholders from FOR FREE SITE INFORMATION, CALL

different functional areas early and throughout the process, the strategic business objectives or business needs and what is to be accomplished can be defined, as can the available resources that can be committed.

Evaluation Criteria — What Is Important? Defining evaluation criteria — and being able to determine the relative importance of the criteria — is another area where a collaborative team approach may provide a better process. Evaluation criteria are different for different types of projects such as a headquarters, shared service center, warehouse, etc. Changing business and market conditions and the continued interest in access to information and data can also necessitate different evaluation criteria. For example, improved technology access and cloud enablement may be important evaluation criteria for a manufacturing site, whereas historically this was not identified as a need. While reviewing warehouse options from a financial perspective, real estate and other operating costs may suggest one location is preferable, but upon review from the supply chain perspective, the location may not be acceptable because delivery to the customer is going to increase in total number of days. Obtaining input from the cross-functional team may better define the evaluation criteria that should be considered in the location decision process. While there may be many

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evaluation criteria that should be considered, are all criteria of equal importance? Being able to define the relative importance of the criteria can provide the identification of better locations and sites. In the previous example, where the number of days for product delivery was an important evaluation criterion, this factor would be assigned a greater relative importance as the number of days begins to increase with each option, eventually to a maximum tolerance where no option is appropriate. A product may have specific requirements for a raw material source, or is fragile and cannot be within proximity of natural disaster areas, which dictates general geographic areas that can be weighted for relevance. Financial and tax incentives can make a significant cost differential when comparing one location versus another when all other factors are relatively the same. Many, but not all within an organization, focus on business incentives in the site selection process. It is an unfortunate circumstance when a team learns after securing a site that locating a short distance away would have resulted in being in a preferred zone for economic incentives, where cost savings such as property tax and other cost offsets were available. Alternatively, negotiated tax credits may appear to have more value until it is known that the business has net operating losses from prior years carrying forward, or that a headquarters project is not going to create taxable income in that jurisdiction. Assigning relative value to business incentives and the type of business incentives available can provide the comparative information that the site selection team needs to review. These are a few examples of how having a cross-functional team and other members’ perspectives can increase the potential of properly defining and understanding the importance of the evaluation criteria in the location decision process.

Staying Ahead of the Changing Environment This process can be further improved by having access to changing business and economic conditions to allow modifications to be made, or even halt the site selection process. A teaming approach is more likely to provide opportunities for the collaborative sharing of internal data that has not yet been finalized in a month-end, quarter-end, or year-end report. Some changes may be difficult to foresee and alter course because they are so abrupt. Recall the end of the third and fourth quarters of 2008 when sales orders dramatically dropped for some businesses. However, softening product demand, loss of customers, small reductions in force can be communicated to the site selection team to assess the potential impact and whether an unanticipated downward trend is occurring. The new or expanding site may no longer make sense if such changes are happening. Keeping current with external changes is as important as keeping current with internal changes. External changes such as new industry regulations, changing tax regimes, and the introduction of a large competing project may result in the need to modify the location decision process. If the team is not monitoring changing conditions throughout the process, there may be an unexpected cost or a challenge in

workforce hiring for the selected site. The team can adapt and alter the process by scrutinizing changing external factors throughout the site selection process.

Emerging Markets: More Opportunity, More Pitfalls Companies continue to be interested in emerging markets such as Brazil, Russia, India, and China — the so-called BRIC nations — to potentially capitalize on the large populations, improving economic conditions, and the possibility of satisfying new market demand. In emerging markets there are additional factors to consider in the site selection process, and obtaining comparative data can be more challenging. Comparative factors such as government at all levels — federal, regional, and local — and its overall stability; current and trending economic conditions; growth and the ability for the country to keep pace with the growth cannot be overlooked. Is there adequate infrastructure in place for transportation and utilities now and/or in the future? What is the labor force availability and does the workforce have the appropriate skill level? What are the intellectual property laws and related enforcement? Is safety a significant consideration such that it can interrupt business? An understanding of business organization and property laws should also be obtained. Utilizing in-country resources, as well as those familiar with site selection in emerging markets, can facilitate a thorough review of the additional factors. In addition to the increase in comparative factors, obtaining current, objective data for those factors can be another challenge in emerging markets. Is the market data reported frequently enough to keep up with the new developments or is the information already obsolete? Local interviews and preparing for and organizing effective site visits can become a critical component of the location decision process. Moreover, allowing for more time to perform site selection due diligence and keeping a greater number of location options are ways to mitigate some of the increased risk in selecting new locations in emerging markets.

In Sum Real estate and related facility investments represent a significant cost of capital and a longer-term business commitment. Some leading practices in site selection include early identification of stakeholders and creating a cross-functional team, understanding the strategic objective and importance of evaluation criteria, assessing changing business and market conditions, and allowing additional time for some reviews, depending upon facts and circumstances. The implementation of leading practices in site selection can lead to obtaining an appropriate site and avoiding costly mishaps. ■ Note: This article represents the view of the author only, and does not necessarily represent the views or professional advice of KPMG LLP. The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.

AREA DEVELOPMENT | 2015 Annual Directory

DISTRIBUTION/LOGISTICS

Finding the Perfect Match in a Distribution Center Location Michelin, a global tire manufacturer, seeks ideal infrastructure — and more — for its crucial distribution centers. By Jamie Lominack, Real Estate Manager, Michelin North America, Inc.

Yes, tires…the round, black things everyone dreads having to replace on their cars.

The Crux of the Operation

et’s talk about distribution centers. Making good products is one thing. Finding the appropriate place to house them until they are ready to reach stores and customers around the world is another. The distribution centers we look for need to house important products. They are used every day by millions of people all around the globe, and the purpose they serve is as varied as the options and sizes they come in. They encompass 125 years of technological innovation, industrial ingenuity, and science from Michelin — the world’s leading tire brand. They are important products. They keep people safe, they keep people moving, and they keep the goods and services the world needs rolling. Without them, airplanes could not land, trucks could not haul, tractors could not plow, and cars could not go. They are one of the most important products people never want to worry about but always need. And when you make millions of them every year, all around the world, where you house them is a pretty big deal.

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Michelin has been in the business of making tires since 1898, when there were less than 8,000 vehicles on the road in France. From humble beginnings in a small rubber factory in Central France — where the Michelin brothers made bicycle tires that could detach from the rim so as to decrease the time and cost of replacing a flat tire — Michelin has grown to one of the world’s largest tire manufacturers. We produce tires in 67 facilities in more than 17 countries all around the world, and we have large research and development facilities on multiple continents. We market and sell our tires in more than 170 countries and our products range from high-performance tires for motorcycles and race cars to gigantic, industrial tires for giant mining equipment. Our customers range from automotive manufacturers to tire dealerships big and small in nearly every country. As anyone in the industry can understand, our supply chain and distribution networks to accommodate a demandand-supply schedule like that has to be pretty advanced and is of the upmost importance to the businesses objectives. Because we make some of the best products in the market, it is important that we support those products from the time they are manufactured to the time they arrive at the dealer to be put on your car. Storage, transportation, buildings are all taken seriously if the Michelin name is on it. So when it comes to distribution buildings, there is a lot riding on them, just like our tires. Because our products are complex, varied, and there are many fluctuation points in the demand schedule, a distribution center serves as the crux of the entire operation. As you know, if you cannot get the product to the marketplace, business cannot continue as usual, and the implications for customers and end-users becomes extremely important.

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of vehicle. From airplanes, heavy trucks, tractors, and construction equipment to giant earthmovers, bicycles, and passenger cars, there is a distribution need for each product line. We can no easier choose an empty building to use as a distribution center than we can forgo quality and performance testing on the tires we bring to market. With a team led by our logistics, legal, real estate, and internal business unit leaders, it is a selection process we take very seriously, and the timeline can take anywhere from six months to three years. Depending on our internal client, our team seeks to locate as many options in the targeted market that satisfy the most building criteria. Although the needs of each business unit may dictate different criteria, we generally take into consideration things such as the distance to the ports, interstate accessibility, and infrastructure support as well as environmental protection, building conditions, and operational costs. The first item on our checklist to find the perfect distribution center starts and ends with the transportation component. At Michelin, the business units are essential for keeping the real estate and site selection teams informed about what the business needs are, but because at least 80 percent of the cost of a tire comes from the logistics and transportation of moving that tire through the production line to the point of sale, we seek to minimize any unnecessary costs and rely heavily on our logistics team’s expertise to get the process started.

Creating Our “Profile” Once we know the general scope and needs of the project, the next steps become much like creating a dating profile. As a global company, top of the list is location, location, location. We are not interested in a long-distance relationship between where our products are made and where they ultimately need to go. While some long-distance relationships can work, it might be a deal breaker in our hunt for “the one.” When it comes to identifying an ideal location for a distribution center, the top factors for Michelin include access to major roadways and, potentially, port access. We recently built a manufacturing facility in Anderson, South Carolina, where we make the giant earthmover tires I mentioned. The tires produced at that facility are up

to 13-feet high and 80 percent of them are produced for international export. When deciding where to build that new facility, you can imagine that access to the ports in Savannah and Charleston was extremely important in our decision. After narrowing the field, my team and I will arrange visits to each of possible sites. An on-site inspection is critical to determine if the site meets our expectations of important factors. In this business, it is not the outward beauty that draws us in, but rather the internal structural details such as the fire safety systems, insulation of the roof, and the water pressure. These things are important considerations given that we will be housing products that, although designed to handle weather conditions, do not want to experience unnecessary or intense fluctuations in heat or cold. Additionally, we need to control for some obvious factors such as accessibility, availability of loading docks, ceiling clearance heights, maneuverability inside the building, and the strength of the floor. Since tires are not the lightest products, it is important that the flooring foundation is both sturdy and stable.

Planning for the Future One item that is always in the back of my mind when I am considering a building for a distribution center is how easily this distribution center could allow us to expand our operations, if necessary. Just as in a relationship, we are often after long-term potential and growth. Thus we need to ask ourselves how this potential distribution center can grow and expand if we need it to. Sometimes it is apparent to us that despite having all the qualities we need in the short term, there is just not potential there for a long-term relationship. Even after all of that, it is important to note that these are the benchmarks and criteria that best serve our needs at Michelin. Much as in the dating pool, the same set of conditions and standards won’t apply to everyone. The folks at Match.com and eHarmony would certainly agree. ■ In his role as real estate manager for Michelin’s North American zone, JAMIE LOMINACK is responsible for managing the real property portfolio that includes all properties (leased or owned) within North America, including Canada and Mexico. Additionally, he oversees acquisitions, dispositions, and the management of several special projects.

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Papers/Research/Studies www.areadevelopment.com/studies Positive Outlook for Middle Market Manufacturing Execs Amid growing optimism, the manufacturing sector plans to add jobs over the next 12 months.

Manufacturers Losing Intellectual Property to Security Breaches Few manufacturers have adequate procedures in place to keep pace with today’s escalating risks.

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AREA DEVELOPMENT | 2015 Annual Directory

COVER STORY

The New Blue Economy? AS COMPANIES PLAN FOR THE FUTURE, WATER KEEPS PUSHING ITSELF ONTO THEIR AGENDAS LIKE AN INCESSANT TIDE. By Dale Buss

merican Cast Iron Pipe has started manufacturing water pipeline at the site of the old Buick City complex in Flint, Michigan, and the ironies are flowing. The pipe will comprise a new waterway aimed at helping the Flint area escape its crumbling industrial past and whoosh into a water-based economy of the future. The American Pipeline factory is on the spot where

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General Motors built cars for nearly a century, until the slow collapse of GM forced the plant’s closure in 2010, after a huge renovation in the ‘80s proved to be a last gasp. The Flint area was all too happy to welcome a company that will help it tap water from Lake Huron, to the east, allowing the region to disconnect from its traditional supplier, the City of Detroit. It will use its control of ample water supplies to lure other manufacturers and other companies from water-parched areas of the country. The ironies lie in where American Cast Iron Pipe is based: Alabama. That state faces potentially major concerns about its own freshwater supplies, which could one day crimp its surging economy. In the meantime, Alabama has vastly outstripped Michigan in the growth of auto manufacturing jobs. “Is water the new blue economy?” asked Jeff Wright, drain commissioner for Genesee County, which includes Flint, and a primary driver behind the $600 million project to build a 67-mile pipeline from one of the largest of the Great Lakes. “Michigan sits in the middle of one of the largest freshwater

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basins in the world. The South and Southwest are experiencing droughts and water shortages,” he adds.

ADJUSTING TO A RESOURCE REALITY Such are the shifts gradually taking place as companies and economic development officials adjust to a resource reality that has become as unstoppable as a mighty river. Disparities between states with abundant, available, and relatively inexpensive freshwater resources, and those that are becoming parched or water-stressed, increasingly are coming into play as companies make location decisions. And the contrasts are beginning to change the roster of “have” and “have-not” areas of the country. “It’s becoming more important not only to industrial companies that use significant water supplies in their operations, where it would be a key item anyway, but also for other operations such as offices and distribution centers and R&D facilities where water isn’t crucial to their operations,” says Larry Gigerich, managing director of Ginovus,

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an Indianapolis-based site consulting firm. “In fact, companies’ biggest concern from a natural resource point of view these days isn’t energy, because they’re feeling more comfortable about supplies. The concern now is water, which will really have an impact in the future.” Gil Pezza, director of water technology at the Michigan Economic Development Corporation, agreed. “Within the next five or six years, the importance of water as a location factor is going to increase exponentially,” he says.

RISING SIGNIFICANCE AS A LOCATION FACTOR To be sure, water availability didn’t place in the top-10 most important factors in selecting a site in Area Development’s most recent annual Corporate Survey. And players in the site selection community aren’t seeing a wave of companies making location decisions on the basis of future water availability, in part because they’re not seeing water-based crises affecting corporate operations yet. “They look at what’s happening in California, but so far we haven’t had any company that’s a monster water user experiencing major problems getting water there,” notes Scott Kupperman, founder of Kupperman Location Solutions, in Lake Forest, Illinois. But water resources clearly are rising in significance in many site location decisions, and industry participants expect “water pressure” to keep climbing for several reasons: • Company executives, in general, are more concerned about future water resources, and their rising attention to the issue has been trickling down into decisions about where they decide to build and expand facilities. • Extreme problems with drought in California, and persistent problems with water scarcity in other parts of the country, are making indelible impressions on people who make site location decisions. • Water-rich states and regions are becoming more aggressive about promoting the economic development advantages of their ample resource and about contrasting them with

water have-nots. • Companies are paying more attention to sustainability concerns that may be expressed by suppliers, customers, employees, and consumers, and their approach to water usage can comprise a significant part of their positioning on such issues.

WATER STRESS/SCARCITY In fact, more than 80 percent of large consumer-goods companies said that water availability and quality pose a fundamental concern for their business, and 22 percent predicted water problems would inhibit business growth. The biggest risk they saw, at 47 percent, was water stress or scarcity for reasons ranging from the population boom to prospects of climate change to mismanagement of water supplies. “Leading companies increasingly recognize that business-as-usual approaches to water management are no longer sufficient,” says Paul Simpson, CEO of the Carbon Disclosure Project (CDP), which surveyed CocaCola, Nestle, Unilever, and other global giants. Certainly water matters are playing a big role for LiDestri Food & Beverage, a maker of sauces, dips, salsas, and spirits and the nation’s largest tomato processor. The Rochester, New Yorkbased company has six plants across the United States, including three facilities in its hometown on the shores of Lake Ontario, and one in Fresno, California. LiDestri recently consolidated its East Coast operations in Rochester, in large part because of access to 1.1 million relatively inexpensive gallons of water required to run their facilities each day. By contrast, the Fresno plant in increasingly drought-plagued California isn’t slated for expansion. “We’d never shut the Fresno plant down because of the water situation, but it’s much more expensive to do business there — water is at least four times more expensive” than in Rochester, says David Stoklosa, a LiDestri vice president.

“

WATER resources clearly are rising in significance in many site location decisions, and industry participants expect ‘water pressure’ to keep climbing.

RETHINKING THE DYNAMICS Mark Peterson, CEO of Greater Rochester Enterprise, the economicAREA DEVELOPMENT | 2015 Annual Directory

development engine for the area, is seeing more companies “rethink all the dynamics of what they’re doing” because of water-supply issues; plus “the growing populations of the South and West have really strained corporations’ ability to get large quantities of water at a cost-effective level,” he explains. There’s also the recent deal between Tucson and Phoenix to share the dwindling aqueous bounty of the Colorado River. And there are memories of countless disconcerting episodes of water uncertainty and drought — and struggles between units of local and regional and state governments over water resources — from the last several years in places stretching from Lake Mead, Nevada, to Florida. “Even after the current drought ends, the West will continue to suffer water shortages thanks to population growth, economic development, and the effects of climate change,” wrote Robert Glennon, a law professor at the University of Arizona and an expert on America’s water crisis. “When engineers designed the water infrastructure in arid states in the West, they assumed that future droughts and floods would follow historical patterns. But precipitation patterns have changed.”

COST-COMPETITIVE OPTIONS Whether they might change back is a question for the future. But for now, one thing is for sure as economic development officials in many parts of the country examine their prospects: When it comes to water resources, they’re on their own. At some point that could mean that oceanwater desalination finally becomes costcompetitive. The Midwest won’t be bailing them out. The six-year-old agreement between the United States and Canada called the Great Lakes-St. Lawrence River Basin Water Resources Compact ensures that the lakes’ waters won’t be shipped wholesale from the region even if the temptation to do so presents itself to one state or province or another. That’s already what happened in the late 1990s when Ontario moved toward sending bulk containers of Lake Superior water to Asia. And, in any event, unlike oil and gas, which of course can be economically transported across the country, funneling water from the Midwest to the Southwest

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and West by any means of transport would be a financial non-starter in just about any feasible scenario. “People are always telling me they’re worried that someone will want to put a pipeline from the Great Lakes out there,” says Alan Steinman, a fresh-water expert at Grand Valley State University in Grand Rapids, Michigan. “But it would be cheaper for someone to transport an iceberg to Phoenix and use that.”

STATES WITH A WATER RESOURCE ADVANTAGE Indeed, for the Midwest, greater water pressures in the future set up nicely as a regional economic advantage. Florida has sunshine; Texas and, now, North Dakota have oil. The South has inexpensive labor. The coasts have tech and finance and marketing locked down. So if all of these regions have been happily enforcing the law of comparative economic advantage, why shouldn’t now the areas that are blessed with lots of fresh water be doing the same thing? Wisconsin has surged ahead of regional rivals in this area with a publicprivate incubator in Milwaukee called the Global Water Center, which is attracting water-based startups such as Vegetal i.D., a France-based company that has created an innovative system to control runoff from “green roofs” that cultivate vegetation. “Traditionally, economic development is about attracting businesses to you, but we’re talking about growing our [waterrelated] businesses in Milwaukee by finding new projects around the world to come and work with our water resources,” says Dean Amhaus, president and chief executive officer of The Water Council, which is focused on making the area a “world water hub.”

WATER-BASED INITIATIVES Not to be outdone for long, Michigan and Indiana also have launched waterbased economic development initiatives. A study by the Indiana Chamber of Commerce found the state to be already the most water-dependent state in the country as it pertains to its impact on the economy, through steel plants on Lake Michigan and many other facilities. “Indiana should be taking advantage of FOR FREE SITE INFORMATION, CALL

its current water supplies to help attract and retain businesses — and jobs,” says Kevin Brinegar, president and CEO of the Chamber. “If we plan properly for the future, these resources will continue to be an economic advantage.” Meanwhile, in Michigan, state officials have launched a “Blue Economy” initiative to prioritize water technology as a high-growth sector for the state. Moving water around the world in various ways represents a $50 billion market over the next 20 years, the state says, so “we see businesses grown in Michigan around water and water technology as a profound piece of our overall economic development strategy,” notes Jon Allan, director of Michigan’s Office of the Great Lakes. “But we’re not taking out an ad in the Los Angeles Times and saying, ‘We have all this water; come use it however you want,’” Allen adds. “Our love is a little conditional. We and the [Michigan] public have certain expectations for how we provide stewardship for the Great Lakes.”

SUSTAINABILITY ETHOS Most companies are prioritizing water husbandry for another reason: rising demands from shareholders, suppliers, employees, and customers to apply a stronger “sustainability” ethos to how they manage all the natural resources they use and also their environmental impacts. In this regard, explains Gigerich of Ginovus, more companies want to know about the water-resource-management plans of potential locations and the sources of water as well as their costs. Given all of this, are bold water-based gambits such as the new Lake Huronto-Genesee County pipeline in Michigan destined to become white elephants, or opportunistic gold mines? The Flint pipeline “will be barely economically viable in the short term,” says Robert Czachorski, co-founder of H2Ometrics, a Livonia, Michigan-based water-systems consultant. “But if you look forward 30 or 40 years, it could prove to be a stroke of genius.” ■

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THERE’S NO DENYING IT: NORTH CAROLINA IS A GREAT PLACE TO DO BUSINESS. In fact, Site Selection magazine ranked

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North Carolina is where it’s at!

your goals.

So if you’re looking at NC (and you

Got your sights set on NC? We’ve not only

should be), let ElectriCities of North

got the vision—we’ve got the sites, too.

Carolina’s Economic Development

See for yourself…

CONCORD

KINSTON

International Crossing Business Park Location (Under Construction): Building size: 277,253 s.f. Build-to-suit office space Ceiling height: 32’ clear height Sprinkler: ESFR Sprinkler System Dock doors: 70 dock doors with 10 knock-outs Trailer: Storage onsite Depth: 240’ Column spacing: 45’ typical Doors: Two drive-in

Highway 70 West Industrial Park Location: 2010 Smithfield Way, Kinston, NC 28504 Building size: 40,000 s.f. expandable to 160,000 s.f. Year built: 2009 Acreage: 9 acres with additional 8 acres available Ceiling height: 30 feet Dock doors: 2 dock-high, 1 drive-in Flooring: 10 mil vapor barrier

MONROE Monroe Corporate Center Location: 447 Goldmine Rd., Monroe, NC 28110 Building size: 102,000 s.f. Year built: 2013 Ceiling height: 30 feet clear Dock doors: 4 dock-high, 1 drive-in Flooring: Stone

JUST SOLD!

CONCORD International Business Park Location: 4541 Enterprise Dr., Concord, NC 28027 Building size: 88,527 s.f. expandable up to 141,000 s.f. Year built: 2011 Acreage: 12.8 acres Ceiling height: 28 feet Dock doors: 4

CONCORD

SHELBY

Concord Airport Business Park Location: 7055 Northwinds Dr., Concord, NC 28027 Building size: 150,000 s.f. Year built: under construction Ceiling height: 32 feet clear Dock doors: 20-30 side loading Flooring: 6 inch concrete Adjacent to Concord Regional Airport

Foothills Commerce Center Location: 1001 Partnership Drive Shelby NC 28152 Building size: 100,000 s.f. expandable to 200,000 s.f. Year built: 2013 Ceiling height: 30 feet Rail: .56 miles Walls: Structural precast concrete 100% ESFR

We partner with our member cities to provide customized assistance with all aspects of economic development. Our comprehensive approach begins at project outset and continues through the site selection and building processes. What can we do for you? From site selection to targeted recruiting to grant assistance and marketing, we’ve got all the tools and expertise you need to successfully develop your business. To help us serve you better, let us know more about your needs and areas of interest, or go to electricities.com/ecodev for more information.

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

CONCORD Concord Airport Business Park Location: 7035 Northwinds Dr., Concord, NC 28027 Building size: 400,000 s.f. Year built: under construction Ceiling height: 36 feet Dock doors: 40-80 side loading Flooring: 6 inch concrete Adjacent to Concord Regional Airport

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16/12/14 12:35 AM

LOCATION ANALYSIS

Decision-Makers, Drivers, and Inner Workings of the Location Selection Process Those charged with making the location decision look to satisfy the company’s long-term goals, while achieving a return on the investment and minimizing risk. By Lawrence Moretti, Principal, LFM Corporate Location Solutions

CORPORATE ORGANIZATION

CORPORATE AFFILIATIONS

BUSINESS ATTRACTORS

COMMUNITY INTERESTS

END-USERS

CUSTOMERS

ECONOMIC DEVELOPERS

POLITICIANS

AFFECTED EMPLOYEES

SUPPLIERS

TRADE AND CHAMBER GROUPS

MEDIA

PROJECT TEAM

STRATEGIC PARTNERS

CITIZENRY LOCAL EMPLOYERS

ENDORSERS

REGULATORS UTILITY PROVIDERS

AUTHORIZERS

PERMITTING AND APPROVAL BODIES

SHAREHOLDERS REAL ESTATE INTERESTS TALENT NETWORK

he location selection process is a vehicle to bigger corporate goals. Ultimately, these decisions are less about communities, real estate, quality of life, and the local workforce, and more about shareholder value, market growth, competitive solutions, customer service, and operating efficiency. In some companies, siting decisions are centralized and require executivelevel approval; in others, these decisions are made and authorized at a business-unit level. Ideally, and typically in larger companies, siting decisions are aligned to a broader location and real estate portfolio strategy, framed by business needs,

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workforce planning, and real estate demand management. Let’s look at some of the underpinning drivers of location selection decisions and some of the key players involved:

Perspectives At the C-suite level, location strategy and site selection decisions are: • Long-term investment decisions • Trade-offs of risk, cost, and opportunity • All about value-add to the bottom line Long-term investment decisions: In some industries with long lead FOR FREE SITE INFORMATION, CALL

times and high capital investment prior to commercialization — the pharmaceutical and aerospace industries are notable in this regard — a new site represents a major upfront investment that may not pay back for years to come. More fundamentally, the siting requirements and specifications may be based on predictions of customer orders and product success that may not reap revenue for years to come. Decisionmakers will be focused on elements such as coordinating project timing to match product delivery, phasing of the investment, and mitigating the impact of the upfront financial hit. Perhaps most important, they need to know

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whether the talent pool is scalable and sustainable to achieve product innovation, quality, and other factors of market success. Flexibility in the location’s ability to satisfy evolving project requirements will also be critical. Even for less capital-intensive industries, the lead-time and alignment with predictions of market growth and supply chain requirements become critical parameters. Consultants and internal site selection teams will be focused on developing a feasible business case for the investment, driven by the payback and upfront financial hurdles. Trade-offs of risk, cost, and opportunity: Every location decision is about a trade-off or choice point. An obvious one, for example, is a choice between minimizing lead time by selecting an existing building or shovel-ready site in Location A versus what might be a better long-term site solution or labor market in Location B. The classic trade-off is cost versus operational advantage — at what price point does the company need to be positioned to attract the talent it needs in Location A versus Location B? Every decision point has a consequence — optimizing the advantages and minimizing the risks drive the right solution. Value-add to the bottom line: Sound business decisions are ultimately about additive value to the company and its shareholders. Being in a location with a sustainable talent pool will contribute to company value by enabling innovative solutions to customers. Payroll represents the biggest operating expense in most companies and, as such, geographic variability in labor costs and labor regulation become critical location selection factors. But costs do not necessarily equal value. Decision-makers may accept higher costs — if that is what it takes to find the best talent to meet company objectives. Value-add trumps cost.

solution does this best. The decision stage is based on a sound business case: This is when the company’s site selection team needs to, if you will, “sell the solution” internally…perhaps to the CEO, CFO, COO, head of real estate, and those who may be asked to relocate. The business case must be based on a sound, documented methodology that demonstrates tangible benefit to the company, satisfies investment hurdles, and minimizes potential risk.

A Framework for Location Decisions Here is one of several simple tools to evaluate how alternative locations satisfy company objectives and which location provides the strongest business case. It consists of three sets of factors that help determine the best location for a particular project. Factors within each dimension can be weighted to develop a score for each dimension, with each location plotted to the scores. The dimensions are: 1. Performance factors such as talent, workforce scale, business climate, access, and other operational drivers 2. Financial return including net present value, return on investment, upfront cost hurdles, and other economic measures 3. Delivery factors including site, infrastructure availability, and other factors to determine how quickly the project can be up and running Companies (and their consultants) will typically use tools like this to guide the decision process and identify gaps in desired locations that might be mitigated through the application of incentives — leading to commitment at a preferred location.

Parties to the Location Decision Costs Are Critical, But in Context Rarely are site selection decisions all about costs…and sometimes company management downplays costs, but ultimately, management nearly always drives toward a costeffective result. Here is a description of how “cost” weaves through the cadence of stages in the decision-making process in terms of thresholds, alternative solutions, and decisions. The threshold stage is often cost-driven. Screening to a manageable group of locations from a universe of hundreds of potential places is an exercise in efficient resource utilization — finding the needle in the haystack requires sifting through a lot of straw that looks the same. In siting a facility, cost is one of the first qualifiers, and typical site selection threshold criteria might read as “consider only metro areas with an average wage of 90 percent of the national average or 75 percent versus our current labor markets.” The solution stage is typically value-based: Once a reasonably small pool of candidate locations is identified, the decision team can concentrate limited resources on finding the right set of alternative location solutions that best fit company objectives. Relative to selecting a business location, value from the company decision-maker’s perspective is about satisfying business objectives at an acceptable level of start-up and operating costs and determining which location

There are typically four groups of stakeholders involved in location decisions: the corporate internal organization, external corporate affiliates, community interests, and business attractors. Within the corporate organization, the decision rests with those who have the authority to take action, whether at the executive, VP, or manager level. However, there are other internal groups who will influence or gate-keep the decision process. These range from end-users (such as affected employees) to endorsers (helping to build support). Of course, the project team is at the center of developing the solution and business case to management. This team might consist of representatives from corporate real estate, human resources, finance, and the operational and technical experts specific to the project. Other external affiliates — such as customers, suppliers, and strategic partners — play an important role too. Service-level agreements and other arrangements may play an important part in the location decision. In some industries (financial services, government contracts, and pharmaceuticals come to mind), there may be regulatory requirements and stakeholders that place constraints on where to locate. Community interests may become involved as well, particularly for large or otherwise highly visible projects AREA DEVELOPMENT | 2015 Annual Directory

“

(for example, those with significant employment impact, large capital investment, unique talent requirements, or prestige). On the opposite end of the spectrum, some projects may not be perceived as desirable due to environmental or other controversial aspects. In either case, the political arena enters into the equation, and this becomes the linkage point to negotiating incentives and/or mitigations for the project. Those involved with project permitting (site, zoning, construction, environmental, etc.) are part of this group as well. Key partners throughout are the business attraction professionals and allies who market the community, support delivery of the project, and, more fundamentally, help to shape the economic development “product” of the location, i.e., infrastructure, workforce, business climate, quality of life, and other attributes that define the “place.” These

Location investments are big decisions, with serious resources, risks, capital, and opportunity costs.

include economic development professionals, chambers of commerce, the local real estate community, utility providers, employers, educators, and others who play a role in shaping and promoting the business attributes for investment in the location. Aligning all of these interests makes for a successful location decision and transition to starting up a new or expanded operation.

Closing Thoughts This brief review has presented some perspectives around how location selection decisions are made, by whom, and the factors of importance to company leadership. In sum, location investments are big decisions for companies, with serious resources, risks, capital, and opportunity costs in play. Those charged with making these decisions care about: • Benefit and opportunity in achieving company goals • Financial hurdles and investment return • Delivery and project start-up when needed They are less specifically concerned about traditional site selection factors other than how these enable broader corporate imperatives and add value to the company’s bottom line. ■ Formerly with Hewlett Packard, Deloitte Consulting, and The Fantus Company, Lawrence Moretti has been guiding location strategy and site selection decisions across industry for nearly 30 years. He is currently Principal of LFM Corporate Location Solutions.

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MORE AFFORDABLE ENERGY. MORE WATER TO THRIVE. MORE GROWTH. From some of the lowest electricity and labor costs in the Southwest to a young and qualified workforce, Greater Phoenix and SRP offer you the tools and incentives needed to make your move a success. With low taxes and a reliable water supply, Greater Phoenix is consistently named one of the top 10 places to locate businesses. Coupled with SRP’s award-winning customer service and broad dark fiber network, you’ll find what you need to build your business here. To learn what we can do for you, visit PowerToGrowPHX.com. 26

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16/10/14 10:24 PM

FACILITIES MANAGEMENT

FACILITIES MANAGEMENT ON THE FRONTIER OF SERVICE AND TECHNOLOGY

echnology has had a major influence on facilities in recent years — affecting everything from where a company needs to locate, to building infrastructure, to space requirements. It has also changed the job description for facility managers, professionals increasingly in short supply. We recently discussed this situation with Maureen Ehrenberg, who has just stepped into a new role leading JLL’s facilities management (FM) business in the Americas. She is the executive managing director for JLL’s Integrated Facilities Management (IFM) business in the Americas, as well as chair of its IFM Global Specialty Board. Ehrenberg shares her thoughts on how the industry is evolving and the impact those changes are having on hiring skilled FM professionals.

AD: You are stepping into a new role at JLL where you’ll be leading a business including thousands of facility managers. What is one of the biggest challenges they face today? Ehrenberg: The impact that technology has had on building management in just the past few years has truly transformed our profession and our business; facility managers need to be more strategic and tech-

savvy than ever before. Managing facilities has become much more about driving and enhancing productivity in the workplace and utilizing the data and analytics that we are capturing through our use of technology than it is about waste removal and grounds maintenance. More corporations are recognizing the financial and business benefits that can be gained by implementing newer service request systems, smart building, and other hightech solutions. These technologies change the way work is processed and delivered across their occupied space regardless of the property type. For example, wireless devices now automatically capture key information about a building’s heating or cooling system; equipment can directly dispatch a repair request; facility managers must be able to access, interpret, and act on that data.

Cloud technology has further changed the game, giving companies the opportunity to manage energy and other engineering systems for multiple properties around the globe in real-time from one central location — allowing on-the-ground resources to dedicate their time to bigger issues, thus improving response times to service requests and problems. Strategic facility management is a world away from traditional facility management, which focused on delivering tactical services like building maintenance, janitorial services, and landscaping. The new definition means enabling the workplace and the business to reflect the paradigm shift that has occurred in the business. And this presents a huge opportunity for companies that seek to transform their employee experience and their business results. AREA DEVELOPMENT | 2015 Annual Directory

AD: What are facility managers doing with all of this data? Ehrenberg: At a high level, facility managers take the data and optimize operating results, building performance, capital planning, and business enablement. Specifically, they use it to perform predictive analysis to understand customer satisfaction and feedback, increase energy efficiency, provide meaningful sustainability programs, and optimize employee productivity. There is so much real estate, property, and customer usage data available today that the role of the facility manager is positioned to be a valuable business partner and a change agent for business performance. In particular, smart building platforms have armed facility managers with more information than ever before, giving them the ability to troubleshoot issues before they become major problems. Sophisticated building systems can use data to do anything from tracking employee trends, to detecting signs that a piece of equipment may be ready to fail, to flagging when a piece of equipment is due for routine maintenance. The repairs, however, have to be conducted by humans, so having an integrated service-technology solution is more important than ever. Energy efficiency and sustainability is an area where new ways of gathering and interpreting data can empower facility managers to make an enormous impact. There are platforms today that can monitor energy use across multiple buildings, automatically adjust temperature settings, remotely make system adjustments, and feed the information directly into metrics reporting and utility cost and usage analyses. Technology is enabling the facility manager to work and think differently and to create business cases based on strong, reliable data resulting in measurable return on investment, smart cost-avoidance techniques, and costsavings techniques, thereby extending the life of the assets for which they are responsible. Technology is providing the profession the means to a better portfolio performance, which can be tracked, measured, and reported across a multitude of metrics.

“

the business. The mindset, the skillset, and the focus of the facility manager are now different — but so are the technology advancements that empower these managers to work and think more strategically than they did in the past. Facility managers used to have an isolated job, but that’s changed significantly over the past few years. Working hand-in-hand with other parts of the business to achieve major priorities and make the business case for property investments is helping facility managers gain prominence within their organizations. And that requires close collaboration with other areas of the business. As technology becomes more ingrained in buildings and in the facility manager’s job description, it’s important to partner with the IT department to ensure that tech-related solutions deliver maximum value to the business. Facility managers and IT are collaborating to create smoothly functioning environments where the buildings and technologies work seamlessly together. HR is another important partner to facility managers. Mobile technologies and new approaches to employee productivity have forced companies to re-evaluate the functionality of their locations. Partnering with HR is essential to smart workplace decisions.

Cloud technology gives companies the opportunity to manage energy and other engineering systems for multiple, global properties in real time.

AD: How is all of this affecting the facility managers’ role? Ehrenberg: The complexity of the job has increased. But it goes beyond the technical requirements; facility managers are taking on more strategic roles in their organizations. Within the workplace, the facility manager is positioned to advise the business, provide meaningful trend and cost analysis, and become a trusted and valuable partner to

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AD: Are these additional demands making hiring more challenging? How are companies like yours — that employ thousands of facility managers — finding talent? Ehrenberg: Hiring facility managers today is more challenging than ever — not only due to technological demands, but also our aging workforce. Skills can be taught; it’s the perception problem that is more concerning. According to a recent survey commissioned by JLL, only 1 percent of millennials are studying facility management. Most young workers have never heard of facility management; those that have, typically have an outdated or inaccurate picture of the job. Recruiting younger workers into the field is of utmost importance to replace a rapidly aging workforce. There are multiple ways we are attacking this problem. Primarily, we — along with major real estate industry associations like IFMA — are trying to increase awareness about the field through research and marketing campaigns targeted at high school and college students. IFMA is currently working with some economic development groups to partner on a campaign to create awareness within the respective local school systems. Whether directly or indirectly through our service partners, we need to

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recruit shuttle drivers, security guards, cleaners, concierge personnel, catering and foodservice employees, engineers, technicians, accounting and administrative support employees, etc. We believe that to recruit future facility managers we must emphasize the value of the job within organizations and emphasize the need for a sophisticated and broad set of the skills. Additionally, we recognize that millennial employees are eager to have a trajectory to their career. Finally, we have found the military to be an excellent talent source. Veterans and returning troops have acquired leadership, team, and technical skills that are transferable and can be developed into a facilities career. Facility managers in the industrial sector face some particularly difficult challenges. Can you talk a little about what youâ&#x20AC;&#x2122;re seeing there? Ehrenberg: Facility managers in industrial, distribution, and manufacturing facilities face unique and exceedingly complex challenges related to safety, regulatory compliance, operational consistency/reliability, and supply-chain support. Safety is a particular area of focus. It is critical for facilities personnel to be trained on safety protocols for all the equipment in the spaces they manage and maintain. We are seeing a global trend toward facility management outsourcing in the manufacturing sector. Much of this is

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being driven by company leadership asking the business to focus on its core. Third-party experts are then contracted to provide the non-core support services, bringing the newest technology, industry best practices, and deep support resources to deliver efficiencies and create leverage for the business. Facility managers in this space are expected to contribute significantly to compliance with FDA, OSHA, ADA, and other regulatory standards, avoiding costly production line shutdowns. Corporations are therefore entrusting facility managers with an enormous responsibility, so finding, retaining, and then constantly training highly skilled professionals is critical. The FM profession is continuing to evolve along with new types of skills and training. We are seeing universities and even high schools working to create awareness for the profession so that it becomes a career choice for future generations. â&#x2013; For more information, click on the links below to video presentations. To hear Maureen Ehrenberg speak about the growing need for specialized training in facilities management and the future of facilities management jobs, go to http://bit.ly/fm-talent JLLâ&#x20AC;&#x2122;s Workplace Strategy Lead in the Americas, Bernice Boucher, outlines both quantitative and qualitative ways to measure workplace data at http://bit.ly/workplace-data

AREA DEVELOPMENT | 2015 Annual Directory

09/12/14 3:26 PM

REAL ESTATE/FACILITY PLANNING

Planning for Expansion in Secondary Markets Locating in secondary markets may present cost and space advantages, but companies would be wise to also evaluate whether owning or leasing better suits their needs. By Steve Jaffe, Chief Investment Officer and Principal, BH Properties

f you are looking to expand or move your business, secondary markets can offer an ideal location and financial benefits that may offset lingering economic constraints from the recession. As these markets have yet to take off like core MSAs, businesses can still find interesting opportunities. The benefits of moving into one of these markets are appealing, namely reduced rents and more available space, which mean better ROI for your business. Fortified by a more stable national economy, conditions are ripe for secondary markets. The industrial sector, in particular, has been impacted by the boom in Internet-based shopping, which has fueled a need for many more distribution facilities. This has resulted in an increased demand for industrial space in primary markets, intensifying competition as vacancy drops and rental rates hike, causing business owners to look at secondary and tertiary markets for a low-cost alternative to fit expansion needs. The swell in demand has also had a positive effect on construction. With a rise in build-to-suit projects constructed for the specific needs of the distributor, new facilities are popping up all over the country.

Identifying Secondary Markets To understand how a secondary market is classified, it is important to look at the definition of a primary or gateway market first. Traditionally, primary markets have been narrowly identified as the top five metropolitan areas in the United States: Los Angeles, San Francisco, New York, Chicago, and Washington, D.C. From this definition we can identify secondary markets, which are often defined as geographic locations outside of these major metros, such as Atlanta, Austin,

Baltimore, Minneapolis, Nashville, Orlando, Phoenix, Pittsburg, Salt Lake City, and St. Louis, to name a few. When identifying the specific secondary market to enter, the first step is to analyze where prospective need would intersect with value. Phoenix, for example, was one of the markets hardest hit by the recession, and is still fighting a vacancy rate of 13 percent, as reported in the third quarter of this year. Under these conditions, business owners are more likely to find reasonable rental rates for a location near an international transportation hub, than for a building of the same size in a primary market. However, it is not always necessary to travel hundreds of miles away from a major metro to find a secondary market. If you look at the composition of Southern California, youâ&#x20AC;&#x2122;ll find secondary- or tertiary-market

This 62,776-square-foot former Shasta Beverages warehouse, located near Phoenix Sky Harbor International Airport, is rail-served, has seven grade-level truck doors, and can accommodate a variety of uses.

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characteristics right outside of Los Angeles in Palmdale or Lancaster. Working in secondary markets will underscore how important good brokers and property managers are when seeking out the right property. In navigating the new markets, we have found that identifying brokers with a real pulse on the local markets early on in the search will benefit long-term. And while working with a firm with a national presence can be a comfort and probably isn’t a wrong choice, it may not be the “best” choice. Properties within these markets that will fit your needs are not considered “low hanging fruit” so your brokers need to be willing to work hard as your partner.

Building “Specs” Once a specific market has been selected, the next step is to prioritize your facility needs list to match the business’ operational needs. The old adage still rings true; it is all about the location. The surrounding area and nearby amenities should rank high on the needs list, as the facility’s proximity to services like supply chain hubs will greatly impact productivity. Does your business work primarily with rail or air shipping? This is also important to take into consideration when searching for a new facility. Oftentimes you’ll find that industrial spaces located in these markets have a geographic advantage for supply chain hubs, with easy access to interstates, rail, and international airports; but ensuring that the building has the right access or loading docks to these services is also crucial. Next on the list is building specifications. In secondary markets, new construction is less prevalent. As you look at a potential acquisition (or move in), consider the age of the property, and inspect the facility’s dock doors, ceiling heights, power, sprinkler systems, HVAC, and the roof systems. Look for historical wear and tear and flood plains. Sometimes things are cheap and/or vacant for a reason. Industrial spaces are crafted for a variety of different uses, and to different specifications, so it is important to hone in on these details to find the diamond in the rough.

Leasing vs. Owning Plans for expansion often include a discussion surrounding property ownership. Many business owners have also come to see the “light” that owning their own real estate is a drain on their ability to grow their business. Prior to the recession it was fairly common for business owners to want to own their own property. Why not? Times were good and values were increasing. When the economy stalled, these owners were suddenly faced with the reality that too much of their operating capital was tied up in a depreciating asset. The fact remains, business owners should not simply analyze their purchase as the market is on the upswing, but must also anticipate the inevitable downturn, and that’s when the fundamentals come into play. Whether you’re an owner of a new online store, distributor, or a manufacturing company, owning the building out of which you operate your business can

come with long- and short-term benefits, as well as innate challenges. Although your first thought as a business owner will be to purchase a particular building based solely on the specific needs of your operation, it’s important to take a step back and evaluate the property as an investor would. At BH Properties, we not only look at the “return on investment” but the “return of investment” in that we seek to purchase a property for which we can increase the value and, in turn, more than recover our initial investment at the point of sale. There’s also the cost and risk of ownership of a vacant property from taxes, security, insurance, and financing. Leasing is an important option to consider when entering a new market. The cost of purchasing a new building can sometimes hinder the allocation of capital. Ownership comes with high operating costs, and not all real estate can be easy to sell when the time comes — as we’ve all experienced during the recession. These costs can often be offset if you choose to take the leasing route. If you’re planning for the short term, it goes without saying that the main advantage to leasing is that your initial expense to use the facility is much less than if you were to purchase at the onset. Deciding whether it is worthwhile to purchase or lease should be based directly on your business model and plans for future expansion. Leaseback arrangements are another option to consider. Short for “sale-and-leaseback,” this financial transaction entails the owner of the property selling the asset and then leasing it back long-term from the new owner. This concept provides a variety of benefits to the business owner. During the recession, this option became popular among business owners, enabling them to focus their attention and capital on their businesses. At BH Properties, we handled a number of these transactions over the past few years that enabled the owner/operators to access cash from the sale of their real estate and become tenants in place with buildings they had owned for years. Over the years of our involvement with industry in secondary markets across the country, we have come to value a few critical components to both the physical nature of our investments and of our support teams, both internal and external. If a market is new to you, partnering with a local “boots on the ground” team will save you time and capital that you’ll be able to better invest into your new building, whether you choose to buy or lease. There is no denying that certain secondary markets are heating up. Some places are on fire, while some should be put to the match. The key for business owners in these markets is being able to tell the difference between the two. There’s no substitute for knowledge. Know your property and know your submarket. ■ STEVE JAFFE is the chief investment officer and principal at BH Properties, a Los Angeles-based commercial real estate investment company that acquires and maximizes the value of underperforming properties located throughout the country. Its portfolio includes real estate across multiple property types in 15 states, with its industrial portfolio predominately B- to C-class type industrial and ranging in size from 10,000 to 650,000 square feet. The firm also has regional offices in Dallas, Texas, and Salt Lake City, Utah. For more information, visit www.bhproperties.com. AREA DEVELOPMENT | 2015 Annual Directory

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09/12/14 3:45 PM

GOLD AND

SILVER

SHOVEL AWARD RECIPIENTS SHOWN HERE ARE 12 OF THE RECIPIENTS OF Area Development’s

2014 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, 20 states were recognized for their efforts.

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

AREA DEVELOPMENT | 2015 Annual Directory 33

Arkansas Economic Development Commission Executive Director Grant Tennille holds the Silver Shovel award. He’s joined by Bentley Story (far right), director of Business Development, and other BD team members.

SHOVEL AWARD RECIPIENTS

Georgia’s Governor Nathan Deal proudly displays the state’s Gold Shovel award. He’s joined by Department of Economic Development Commissioner Chris Carr (right) and Deputy Commissioner of Global Commerce Tom Croteau (left).

New York’s Silver Shovel award is held by Kenneth Adams, Empire State Development’s president, CEO, and commissioner.

Indiana Secretary of Commerce Victor Smith poses with the state’s Silver Shovel award.

Mississippi’s Silver Shovel award is raised by Governor Phil Bryant. Kentucky Governor Steve Beshear lifts the state’s Silver Shovel award.

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Texas Governor Rick Perry is joined by members of his office’s Economic Development and Tourism department to celebrate the state’s latest Gold Shovel award.

John Minor, president and chief investment officer of JobsOhio, lifts the state’s Silver Shovel award.

Director Mike Downing of the Missouri Department of Economic Development holds the state’s Gold Shovel award. He is pictured with team members, who helped the state earn this award.

New Jersey Lt. Governor Kim Guadagno poses with the state’s Silver Shovel award.

Utah’s Governor Gary Herbert displays the state’s Gold Shovel award.

Governor Nikki Haley poses with South Carolina’s Gold Shovel award.

AREA DEVELOPMENT | 2015 Annual Directory

FACILITY PLANNING

Reducing Industrial Facility Costs with Sustainable Planning Long-term savings achieved by sustainable facility design can trump short-term savings, while also resulting in a more productive, environmentally conscious workplace. By David Verner, RA, NCARB, Senior Vice President, Gresham, Smith and Partners

he value of sustainable master plans, particularly for industrial facilities, is a topic that seems to be on a lot of minds lately. We all know that a master plan is a comprehensive long-term roadmap for a company’s growth at a particular location. It is a tool to help predict and plan for the future and must illustrate an organization’s business objectives reflected in the built environment over time. An effective master plan will guide future decision-making and ensure that resources are not wasted. A sustainable master plan is a comprehensive long-term roadmap for a site’s (and its buildings) development, with particular interest paid to maximizing operational efficiency. You may be surprised I didn’t say that sustainable master plans should focus on being “green.” However, at the most fundamental level, green design and minimizing environmental impact are just the result of efficiency. To me, efficiency — saving time and money — equals sustainability. The business goal should be reducing the total ownership cost (TOC) of any operation. If that is achieved, the result is inherently “green.”

Direct Labor 10%

Materials 40%

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Overhead 50%

An Eye Toward the Future

The great thing about master planning is the attention being directed by an operation’s senior management toward the future; this provides the perfect opportunity to integrate implementation of sustainable features that support longterm performance and company objectives. Sustainable master plans set the stage for a continued commitment to efficiency — minimizing inputs and reducing waste — which has never been more important in the industrial sector. In the 1990s and early 2000s, manufacturers were sending labor overseas at alarming rates; the U.S. simply couldn’t compete with China’s low wages. But Chinese labor rates have risen sharply in the last several years, growing by more than 10 percent annually. This, combined with concerns about the stability of global supply chains, dramatic reductions in energy costs, and the inability to protect intellectual property, is prompting the return of business to the United States and Mexico. “Re-shoring,” as it’s called, has breathed new life into economic development initiatives throughout the southern U.S. and Mexico, in particular, and Overhead is the greatest manufacturers are now long-term cost for the average breaking job-creation and manufacturing plant, but it also presents the greatest opportunity financial growth records. for savings. In fact, the South and An efficient layout, proper space Mexico stand to become the allocation, and improved flow can all reduce overhead costs. leading industrial clusters That’s why investing in a in coming years if growth sustainable master plan (an upfront trends continue. Meeting cost that becomes negligible over time) is worthwhile. this expectation requires It can help decrease financial competitiveness, expenditures related to: while many U.S. consumers • Equipment utilization • Indirect labor – material handling also expect social • Indirect labor – maintenance responsibility. Both of these • Material storage • Transportation objectives can be achieved • Supervision with efficient planning. Therefore, a sustainable master plan plays an ever-

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increasing role in a company’s preparing for success.

Defining Objectives When industrial executives work with planners, architects, and engineers to develop sustainable master plans, there are many things to consider. First and foremost, it is key to clearly define business objectives: what is the long-term vision for the company, and what are its mid-term goals? What are the growth objectives? What is the time horizon? How rapidly is the business evolving? What are the financial considerations and budget constraints? The answers to these questions significantly impact the master planning approach and recommendations. The key to good planning is to understand a company’s business plan, process flow, and employee population. But the best solution is not always obvious. On a recent project, our team worked with a company that planned to build a new manufacturing facility combined with its U.S. headquarters. It would be the company’s home base for a minimum of 20 years. We looked at many different sites throughout the southeastern U.S. In the course of the site selection process, the company was offered an existing site and building that was state-owned at no cost. Since it was “free,” it sounded like a great deal. At our client’s request, our team prepared an analysis of the offer. One item we evaluated was the efficiency of the site and building as it related to our client’s business. While it would work for the client’s operation, the resulting process flow was overly long and narrow. In this existing building, the process flow would not be nearly as efficient as it could be. We quickly estimated that the cost of lost productivity would offset the “free” facility in less than five years. Given our client’s business objectives and time horizon, the “free” building was very, very expensive. The total ownership cost (TOC) would have been quite high.

Understanding TOC Understanding the concept of TOC is a turning point for many industrial executives, but getting a solid grasp on the big picture of a facility’s expenses is essential. When you start to drill down, you realize that items like first capital costs pale in comparison to long-term costs such as maintenance, material inputs, energy, and labor. Designing and constructing smartly — with the goal of reducing those bigger expenses — is good business and sustainable. As technology rapidly evolves, it is important to revisit past decisions. When LED lighting entered the consumer market the packaging announced that after a year’s time, an LED bulb could save us close to $100 in electric bills, paying for itself 10 times over. But as an architect, I don’t believe something until I see data backing it up. Our team analyzed the use of LED fixtures in many industrial plants and found they simply did not have a viable payback for most of our clients. But this has changed in the last two years. Recently, we performed a new analysis for a major manufacturing facility and found that with improvements in the technology and reduced price per fixture, we could achieve proven long-term cost savings

and greatly reduced energy consumption. We were able to reduce TOC. Other costs like insurance should also be considered in order to paint an accurate operational cost picture and help a company make the best decisions. On another recent project, based on our experience, we recommended several firewalls in a facility. These walls were not required by building code, and our client did not want to bear the first cost. But a review of the long-term impact to their insurance rates changed its mind.

Impact on Employee Productivity, Morale Another factor that many decision-makers don’t fully consider is the impact that site selection and facility design can have on employee productivity. It is often in a company’s best interest to spend incrementally more in first costs to improve the working environment. This will improve employee loyalty, recruitment, and retention. A few years ago, I had the pleasure of working with a major transportation company in the site development and design of its operation’s headquarters. The company CEO had a true TOC mindset. He was willing to spend incrementally more at the beginning of the project to save money in the future. One area where we spent extra design time and extra construction cost was the employee cafeteria. A year after the project was built, I visited the facility and had a conversation with an employee. She told me, “This place is nicer than my house; I get here a half-hour early every morning just to enjoy it.” I was stunned. Over the years, this company has seen low turnover, low operating costs, low maintenance costs, and great business success.

A Valuable Investment A smart, well-designed, efficient site and building that supports smooth process flow and high output helps companies avoid overstaffing and unnecessary related costs. Paying attention to details and being willing to spend incrementally more at the beginning of a project will provide benefits for the life of the facility. The long-term outcome is increased productivity and profit, and reduced expenditures: a win/win from both a financial perspective and a sustainability perspective. Sustainable design is more attainable and affordable than it’s ever been, especially when you think in terms of years instead of days and weeks. It’s also worth noting that sustainable design is very well favored among the public, which is an extra incentive for companies interested in reinforcing their reputation as socially responsible and environmentally concerned. Working with a planning team that can put pen to paper and assess the specific ways that long-term savings trump short-term costs is essential. Solid TOC calculations inspire confidence in what will likely be a very valuable investment. The result of analyzing total ownership costs and purposefully implementing a sustainable master plan is doing more with less, which, in my perception, is truly sustainable. ■ AREA DEVELOPMENT | 2015 Annual Directory

SITE SELECTION

Reshoring: Making All the Right Moves There’s more involved in successfully reshoring a foreign operation back to the U.S. than simple cost comparisons. By Rosemary Coates, President, Blue Silk Consulting; and Executive Director, The Reshoring Institute

eshoring is a hot topic in manufacturing. Many companies are already doing it, and according to a recent BCG study, 54 percent of companies with over $1 billion in revenues are now considering it. Walmart has pledged to spend $250 billion over the next 10 years for U.S.-made goods to be sold in their stores, and this will drive even more companies to reshore. It’s good for America. It’s good for our future. But it’s a road full of potholes. What the news articles and interviews rarely describe are the failures — the projects that went sour and the teams that failed. Reshoring is not a simple task of comparing costs in the U.S. versus some foreign location. Reshoring may also require a significant investment in the renewal and updating of aging factories in America. These “Bring Manufacturing Back” initiatives have many moving parts and require careful planning and execution and very skillful project management.

A Project Charter

Those reshoring projects that have already failed have taken on more than they were prepared for, have neglected to include all of the people and internal departments affected by the decision, or were poorly planned and executed. Choosing the right U.S. location and the best facility for manufacturing are key components to the overall success of the program. This is not a decision for the facilities engineers and managers alone. It will take a team to get it right because the successful reshoring What the 54% of companies with over decision involves rethinking AVOIDING THE $1 billion in revenues that are products, re-engineering PITFALLS OF considering reshoring* should do: RESHORING production lines, and developing products that will sell in local markets. So where should a company begin? As professional consultants, we always recommend that the reshoring leader start with a project charter. This will give the reshoring team an opportunity to think through and write about the goals for the project, get a clear picture of the tasks ahead, and identify Establish a Complete Develop an Plan for Ensure access project charter innovation exit strategy U.S. building to skilled labor, the pathway it will take to and work and automation for the foreign configuration to as well as proximity execute the work. collaboratively work location accommodate to suppliers and The charter should across all installation of markets at new function areas new equipment U.S. location include considerations of the various stakeholder groups including finance,

*BCG 9/24/13 38

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engineering, manufacturing, purchasing, marketing, facilities, IT, human resources, and government affairs. All of these functions will play a role in the project. The reshoring projects that have faltered have done so when some of the stakeholders were left out of the decision-making process, leaving blind spots in the plan. The reshoring team should be inclusive, not exclusive.

Innovation and Automation

“

Before a company selects a location for a new production facility, the initial innovation and automation work should be completed. This work will identify what new and innovative products will be produced in the new facility and how that production will be automated. Consideration for the new machinery required and the production floor layout will be essential information for facility selection and planning. Even though further work on product design and final recommendations on production machinery may come later, the basic requirements should be known after the initial steps are complete. New types of machinery such as 5-axis milling, robots, and 3D printers require new thinking about production floor layouts. New machinery may require different spacing and access and dust-free areas for electronics. The reshoring team should work closely with facilities engineering to identify and plan for these special requirements.

when equipment arrives at the new U.S. factory location. Transferring a manufacturing line from one location back to the U.S. is a simple idea…but that is not what is happening in a reshoring project. It is not a straightforward process of packing everything up, moving to a new location, and setting up the exact same operation. Reshoring requires innovation, automation, and localization of products. It is not going to be a one-for-one direct transfer. The building configuration and requirements are likely to be drastically different, and so are the products to be manufactured and the markets served. Extensive automation of the production lines is usually required to extract as much labor as possible from production costs. In this way, costs can be kept competitive with overseas factories. This automation will require investment in machinery and different line configurations. The new, automated factory may demand a different style of building from the current foreign location and careful planning and engineering before the move plans are announced.

Reshoring requires innovation, automation, and localization of products.

Leaving China Leaving manufacturing sites in China or other foreign locations has its own set of considerations, such as ending foreign employment contracts, paying exit taxes, and obtaining government approvals to leave. In addition, it may be difficult to retrieve your molds and dies from a foreign factory that thinks it is entitled to keep them. The overall exit and the logistics process in moving a factory must be carefully managed. The advice and experience of an expert or an international law firm may be crucial to a smooth and efficient exit process. Failure to consider all aspects of exiting from a foreign country can cause delays and unexpected costs. Failure to comply with all of the foreign exit requirements may ban a company from ever returning. Most of the reshoring information available to U.S. companies focuses on cost comparisons and does not consider other aspects of extracting your manufacturing from a foreign country. Be sure the reshoring team has considered all components of the move and timing before preparing a schedule for things to happen in the U.S.

From and To Next, companies need to plan for what will happen

An Example Consider Otis Elevator. Otis attempted a reshoring project, bringing production from Mexico to South Carolina. But Otis’ efforts did not go well. “I think we failed on both the planning and the execution side,” Robert McDonough, CEO of the United Technologies unit that includes Otis, told analysts in March, according to The Wall Street Journal. The reshoring project cost Otis $60 million last year and that figure continues to climb. So what went wrong? Otis representatives say the company failed to consider the consequences of the new location and tried to do too much at once, including a supply chain software implementation. After they built their new plant they found that the U.S. location they had chosen didn’t have the skilled workers that they needed. They couldn’t staff the production line as expected. The SAP implementation took longer than planned and a realignment of products became a complication.

Finding Skilled Workers/ Accessing Markets & Suppliers Your company may have identified a favorable and low-cost U.S. production area, where governments have offered attractive incentives, real estate costs are low, and communities are anxious to bring in new businesses. However, failure to account for the existing skills of workers in the geographic area may be a major disaster to your reshoring efforts. As in the case of Otis Elevator, the skills required to support a specific production line may not be available AREA DEVELOPMENT | 2015 Annual Directory

in a small town or the outlying community, even though unemployment rates are high and there are many general applicants to choose from. A company’s human resources department needs to be closely involved with the reshoring effort and site selection to validate a skillful existing workforce or some way of attracting new workers to the area. Another possibility is to partner with local community colleges for training programs that can train workers in the right skills for the jobs available. But this will take time, perhaps years, to accomplish. The company’s supply base is another important consideration. Locating in a low-cost area may appear to be the right decision, until the supply base is taken into consideration. Reshoring managers should work closely with purchasing to determine where suppliers are located, especially those suppliers producing long-lead-time items and strategic parts. The ability to closely manage these suppliers will be very important to keeping production on schedule. Of

“

Fully consider building configuration to accommodate new machinery and production layout.

course, you must also consider where your customers are located. You want to be as close as possible to your markets to optimize logistics costs.

Avoiding Failure

You can avoid mistakes and successfully reshore some or all of your production by following some simple rules: • Work in a collaborative team across all functional areas, and listen to the concerns of and input from your colleagues. • Remember to account for the effort, costs, and time to leave your foreign location. • Fully consider all aspects of the new location, including building configuration to accommodate new machinery and production layout. • Consider the skills available for manufacturing in a new geographic area. • Remember to evaluate your supplier locations and your customer locations, as well as their proximity to your manufacturing location. • Get help from reshoring experts as appropriate. ■

WHERE OPPORTUNITY ABOUNDS. WHERE DEVELOPMENT IS CELEBRATED. WHERE INTERNATIONAL CORPORATIONS CALL HOME. SUGAR LAND. Success Thrives Here.

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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

Connect A directory with 6000+ listings including: • Local and Regional Economic Development Contacts • Port Authority Contacts • Utility Contacts • Foreign Trade Zone Contacts • Foreign Inward Investment Contacts If you are an economic development agency and want to have an enhanced listing with a location profile on FacilityLocations.com, please contact Dennis Shea at 800.735.2732 x 208 or dshea@areadevelopment.com

New England

Mid-Atlantic

Midwest

Plains

Connecticut

Delaware

Illinois

Kansas

Maine

Maryland

Indiana

Nebraska

Massachusetts

New Jersey

Iowa

North Dakota

New Hampshire

New York

Michigan

South Dakota

Rhode Island

Pennsylvania

Minnesota

Vermont

Missouri Ohio

Wisconsin

South

South Atlantic

Alabama

Florida

2015

Arkansas

ANNUAL DIRECTORY

Kentucky Louisiana Mississippi Tennessee

Georgia North Carolina South Carolina Virginia West Virginia

Index To Regional Reviews And At-A-Glance Information/Listings

Southwest

Mountain

Pacific

Arizona

Colorado

Alaska

New Mexico

Idaho

California

Oklahoma

Montana

Hawaii

Texas

Nevada

Oregon

Utah

Washington

Canada

100

Mexico

106

Wyoming

For STATE CONTACTS and contact information on all SELECT SITES, see the listings beginning on page 107 after the Regional Reviews and At-a-Glance sections. Visit for SELECT SITES profiles and links. This directory is organized by region and states within each region. At-a-glance 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 sponsoring this issue. Web and e-mail addresses are included for these listings within this directory, as well as on the Web/Ad Index page in the back of the magazine. More detailed information on all of the SELECT SITES — as well as contacts for 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 globe. Listings for location consultants are also provided in our online directory — www.FacilityLocations.com. All of these organizations can help with your site selection needs. Note: If you are an economic developer and your organization is not listed on www.FacilityLocations.com, contact mshea@areadevelopment.com. AREA DEVELOPMENT | 2015 Annual Directory

NEW ENGLAND Connecticut • Maine Massachusetts New Hampshire Rhode Island • Vermont

stood at 4.4 percent, well below the national average of 5.9 percent. Connecticut is also making good progress — it gained 11,500 jobs in September and recorded an unemployment rate of 6.4 percent, its lowest point since 2008. Maine’s unemployment registered 5.8 percent in July 2014, a rate not seen since August 2008.

Biomedicine Stays Strong

SLOW BUT STEADY ECONOMIC GROWTH JOBS ARE COMING BACK SLOWLY IN NEW ENGLAND, WITH AEROSPACE/ DEFENSE, BIOSCIENCE, AND FULFILLMENT CENTERS TAKING THE LEAD. New England’s economy has had more difficulty regain-

STATE

POPULATION

LABOR FORCE

Connecticut

3,590,347

1,851,700

Maine

1,328,302

706,200

Massachusetts 6,692,824

3,531,700

1,323,459

755,360

Rhode Island 1,051,471

435,000

New Hampshire

Vermont

ing its momentum after the Great Recession, compared to other parts of the U.S. Real GDP in the Northeast rose just 1 percent in 2013, compared to almost 2 percent nationwide. This lag-behind trend has continued through the first three quarters of 2014. Jobs are coming back slowly. Massachusetts remains the only state in the region that has regained all the jobs it lost in the Great Recession. Vermont and New Hampshire are fairly close to pre-recession employment levels. In July the overall unemployment rate for New England was 6.2 percent. Vermont is one of the lowest unemployment states in the nation — its unemployment rate

626,011

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Overall, economic performance across New England has been uneven, depending on the industry and the area. Hiring has remained fairly solid in financial services, retail trade, healthcare, biomedicine, hospitality, and manufacturing. In fact, NBT Bank, an upstate New York commercial bank, recently opened a regional headquarters in Portland, Maine — the first national commercial bank to expand into Maine since 2005. And information technology segments — especially

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

36.2% 27.3% 39.0% 33.4% 30.8% 34.2%

*Bachelor's degree or higher, percent of persons age 25+, 2008-2012 Source: U.S. Census Bureau, ACS, revised July 2014

software development, data analytics, and cloud computing — have been especially robust, with some revenues growing as much as 20 percent from a year ago. Biomedicine has remained strong, especially in Massachusetts. Biotechnology and medical device R&D and manufacturing have driven job growth in the BostonCambridge-Quincy metropolitan statistical area (MSA). Boston is a great place to be a start-up — so far this year, 16 biotech initial public offerings (IPOs) have been announced in the city. Johnson and Johnson is fostering R&D partnerships with six Boston-area lifesciences companies. One of these — Cambridge biotech startup Navitor Pharmaceuticals — launched in June with $23.5 million in funding from investors. Another major player in New England — Alexion Pharmaceuticals of Cheshire, Connecticut — has undertaken a multinational, placebocontrolled clinical trial to see if its popular drug Soliris® can prevent complications that can arise after kidney transplants. Soliris®, approved for treating two rare blood and kidney disorders, generated $1.55 billion in sales in 2013.

Aerospace and Defense New England states receive almost 10 percent of all U.S. defense and homeland security contracts — making this industry a major contributor to the regional economy. For example, the defense industry in Rhode Island supports nearly 33,000 jobs and contributes about $3.7 billion to the state economy. A key employer is General Dynamics Electric Boat Quonset

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Connecticut • Maine • Massachusetts • New Hampshire Rhode Island • Vermont

CONNECTICUT

NEW HAMPSHIRE

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

TRADITIONAL INDUSTRIES: Industrial and commercial machinery, electronic and electrical equipment, fabricated metal products, subcontracting manufacturing EXPANDING INDUSTRIES: Computer support, health services, business services, educational services, aerospace, software development, biotechnology, medical device manufacturing, financial and insurance

MAINE TRADITIONAL INDUSTRIES: Forest products, agriculture, textiles, fishing, tourism EXPANDING INDUSTRIES: Biotechnology, composite materials, financial services, high-tech electronic manufacturing, marine science technology, information technology, environmental technology

TRADITIONAL INDUSTRIES: Finance, defense, insurance, health services, educational services, boat and shipbuilding, fabricated metal products, machinery, jewelry EXPANDING INDUSTRIES: Healthcare, life sciences, digital media, renewable energy, defense technology, financial services, industrial products and infrastructure services, consumer products and design, professional and educational services, information technology, marine trades

VERMONT

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

Point facility, which builds nuclear submarines for the U.S. Navy. In April 2014, the Navy awarded a $17.6 billion contract to General Dynamics

RHODE ISLAND

to build 10 more Virginia-class attack submarines over the next five years. Safran Aerospace Composites recently opened a com-

TRADITIONAL INDUSTRIES: Manufacturing, tourism, agriculture, captive insurance EXPANDING INDUSTRIES: Advanced manufacturing, value-added food manufacturing, healthcare, IT, renewable/environmental technology

posites manufacturing plant in Rochester, New Hampshire, joining more than 300 other companies that work in aerospace and defense in the state. Safran Aerospace builds aircraft propulsion systems, rocket engines, and other aircraft equipment. The new

plant is expected to employ up to 500 people by 2020. In another announcement, United Technologies Corp. (UTC) will invest up to $500 million to expand its aerospace research, development, and manufacturing facilities over the next five

AREA DEVELOPMENT | 2015 Annual Directory 45

NEW ENGLAND CONNECTICUT

MASSACHUSETTS

RHODE ISLAND

Principal Manufacturing Industries

(Percentage of Employment)

Transportation Equipment Fabricated Metal Products

25.5%

Computer & Electronic Products

17.7%

Fabricated Metal Products

8.8%

Machinery Computer & Electronic Products

7.9%

Chemicals

6.9%

Other Manufacturing Industries

33.3%

MAINE Principal Manufacturing Industries (Percentage of Employment)

Transportation Equipment

16.0%

Paper Products

14.0%

Food

11.0%

22.8%

18.6%

12.7%

Plastic & Rubber Products

13.7%

Food

9.3%

Machinery

7.1%

Chemicals

6.6%

Machinery

5.9%

Food

5.4%

4.7%

Printing & Related Support Activities

4.8%

3.8%

Medical Equipment & Supplies

Electrical Equipment & Appliances

22.9%

Principal Manufacturing Industries

Computer & Electrical Products

5.0%

Machinery

5.0%

Chemicals

4.0%

Leather Products

4.0%

Printing & Related Support Activities

3.0%

(Percentage of Employment)

Electrical Machinery & Electronics Equipment

20.2%

Machinery (Except Electrical)

16.2%

Professional, Scientific, & Controlling Instruments

9.8%

Fabricated Metal Products

7.6%

Rubber & Miscellaneous Plastic Products 7.4% Printing, Publishing, & Allied Industries

6.8%

Primary Metal Industries 4.8% Paper

4.4%

Lumber & Wood Products

4.1%

Other Manufacturing Industries

Navigational, Measuring, Electromedical & Control Instruments 5.6%

4.7%

Machine Shop Products 3.9%

Other Manufacturing Industries

7.0%

AREADEVELOPMENT

7.1%

4.8%

Wood Products

Chemicals

Plastics & Rubber Products

NEW HAMPSHIRE

years in Connecticut. During that same time period, UTC expects to invest up to an additional $4 billion in research and other capital expenditures in the state. “Connecticut will remain central to our aerospace re-

7.9%

5.2%

10.0%

21.0%

Computer & Electronic Products

Transportation Equipment

Printing & Related Support Activities

18.7%

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Principal Manufacturing Industries (Percentage of Employment)

Fabricated Metal Products

Other Manufacturing Industries

(Percentage of Employment)

VERMONT

Textiles

3.5%

Furniture & Related Products

3.3%

Other Manufacturing Industries

15.6%

search and be the headquarters of Pratt & Whitney and Sikorsky for years to come,” says J. Michael McQuade, UTC’s senior vice president of Science & Technology. “We will continue to perform cutting-edge research and development in Connecticut that provides exciting new opportunities for top engineering and science graduates in our state.”

Logistics and Distribution As consumer confidence increases, so do retail sales. Thanks to online purchasing,

Computer & Electronic Products

22.6%

Food

13.8%

Machinery

9.0%

Fabricated Metal Products

7.7%

Transportation Equipment

6.3%

Wood Products

5.8%

Nonmetallic Minerals

5.0%

Furniture & Related Products

4.6%

Electrical Equipment & Appliances

4.3%

Plastics & Rubber Products

3.4%

Other Manufacturing Industries

17.5%

retail companies are cutting back on stocking inventory in new brick-and-mortar stores and instead are focusing on building fulfillment centers. “Companies like Dollar Tree and Amazon have already built, or are building, fulfillment centers of onemillion-plus square feet in Connecticut in response to the evolution of consumer purchasing behavior,” says Erron Smith, program manager for Real Estate at the Connecticut Economic Resource Center (CERC) in Rocky Hill. “I’ve experienced an increase in requests from site selection consultants and corporate real estate executives inquiring about available industrialzoned acreage suitable for the development of these types of

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Connecticut • Maine • Massachusetts • New Hampshire Rhode Island • Vermont

CONNECTICUT — BASIC BUSINESS TAXES

MAINE — BASIC BUSINESS TAXES

Corporate Income 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

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 8.93 per cent applies to Maine net income in excess of $250,000

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

Corporate Filing Fees: $145 minimum filing fee for domestic corporations; $250 application fee for foreign corporations Sales and Use Tax: 5.5 percent of the sales price on retail sales of tangible property and certain services (returns to 5 percent as of July 1, 2015) Property Tax: Real and personal property is taxed locally at varying rates

facilities — anywhere from 300,000 to one million square feet and above for the purposes of being within a day’s proximity of their consumer base.” Amazon.com has built fulfillment centers across the country, including two in New England: one in Nashua, New Hampshire, and the newest center in Windsor, Connecticut, which will employ 300 workers. In December 2013, Coast to Coast Fulfillment, a third-party logistics provider, completed a 29,000-square-foot expansion of its orderprocessing center in West Greenwich, Rhode Island. The company now has about 82,000 square feet of warehouse and office space. The center will handle the staging for all outbound shipments. “With this additional space, we will have many more pick lines operating at the same time, processing hundreds of products destined for several different chain stores simultaneously,” says Client Services Manager Randy Lundquist. “Also, now that we are an FDA-registered facility, we can process over-the-counter (OTC) drug and food supplement orders.”

Meeting Workforce Needs Despite all the positive news, one of the biggest challenges for companies emerging from the recession is finding enough qualified workers for their expanded production needs. This is especially true for advanced manufacturing. A complicating issue is out-migration — more people are leaving parts of New

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NEW ENGLAND MASSACHUSETTS — BASIC BUSINESS TAXES

RHODE ISLAND — BASIC BUSINESS TAXES

Single Sales Factor: Yes (for manufacturing companies)

Corporate Income Tax: 3–7 percent

Corporate Income Tax: 8 percent

Sales and Use Tax: 7 percent

Sales and Use Tax: 6.25 (machinery and equipment is exempt)

Municipal Property Tax: Rates vary

Personal Property/Real Estate Tax: Levied by local authorities across the state (average rate of $16.97 per $1,000 assessed property value)

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 $100; $35 fee for addendum to articles of incorporation 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: $2.14 to $4.00 per $1,000 of total equalized valuation assessed on property owners and collected by municipalities (2014)

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 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 Property Tax: Local property tax rates vary by municipality. State property tax for Education Fund for fiscal year 2013 is $1.38 per $100 for nonresidential property

Telecommunications Tax: 7 percent 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 No machinery, inventory, estate, or capital gains taxes

England than are coming in. This makes it even more important for states to design workforce development programs that create opportunities for good-paying jobs that will be attractive to younger workers. For example, to ensure that Rhode Island’s defense industry has all the skilled workers it needs, the state has initiated several training programs

AREADEVELOPMENT

for high-demand jobs like welding. In addition, urged by M. Teresa Paiva-Weed, a member of the Rhode Island State Senate, voters supported a $125 million bond referendum to renovate the engineering school at the University of Rhode Island. In nearby New Hampshire, U.S. Senator Jeanne Shaheen has been active in supporting partnerships between busi-

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nesses and two-year colleges to customize job-training efforts, including a statewide advanced manufacturing job training program at the community college level. “Advanced manufacturing firms are creating high-paying jobs that help us maintain our technological edge, but their success also depends on having access to a highly skilled workforce,” says Shaheen. And in September 2014, Connecticut’s community colleges were awarded $15 million by the U.S. Department of Labor for the Connecticut Advanced Manufacturing

Initiative (CAMI) grant, which will expand the colleges’ nationally acclaimed Advanced Manufacturing Centers’ industry-driven job training model. Among the colleges to benefit from this are Quinebaug Valley Community College (QVCC), which will receive $1.22 million to expand the capacity of its Manufacturing Machine Technology certificate program; and Three Rivers Community College (TRCC), which will receive $1.28 million to develop and deliver a Metal Fabrication Certificate program. •••• — Mark Crawford

800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com

MID-ATLANTIC MID-ATLANTIC Delaware • Maryland New Jersey • New York Pennsylvania

GAINS IN MANUFACTURING AND HEALTH CARE GROWTH IN BIOMEDICINE, ENERGY, AND FOOD PROCESSING IS HELPING THE MID-ATLANTIC REGION TO PROSPER. It’s been an uneven year for the Mid-Atlantic, but there are plenty of bright spots to light the way. The overall unemployment rate for Delaware, Maryland, New Jersey, New York, and Pennsylvania was a respectable 5.5 percent in September 2014 (Federal Reserve Bank of St. Louis). New York City is one of the hottest MSAs for new jobs,

dropping its unemployment rate from 8.5 percent in September 2013 to 6.1 percent in September 2014. Delaware has also shown healthy job growth, adding 11,700 jobs between June 2013 and June 2014 — a growth rate of 2.7 percent. There have been some stubborn areas of resistance, however — for example, Maryland’s unemployment rate has increased from 5.5 percent in April 2014 to 6.4 percent in August. The addition of 1,100 manufacturing jobs in September has helped drop that rate to 6.3 percent. In general, the MidAtlantic’s strongest sectors are financial and business services, healthcare, biomedicine, food processing, and energy. In New Jersey, finance and insurance contributed almost $35 billion (about 8 percent) to the state’s real gross

STATE

POPULATION

LABOR FORCE

Delaware

930,359

454,528

Maryland

5,928,814

3,127,676

New Jersey

8,792,000

4,598,000

New York

19,570, 261

9,615,300

Pennsylvania 12,773,801

6,347,000

domestic product last year. In July 2014, the CLS Group, a global provider of transaction settlement services for the foreign exchange market, opened a new 16,000-squarefoot facility in Woodbridge, New Jersey. A few cities have also won some $1 billion+ informationtechnology projects that will have big impacts on their economies, such as IBM’s new Watson Group in New York City’s “Silicon Alley,” which will developed cloud-based services, and Comcast’s innovation and technology center in Philadelphia, which is expected to create 4,000 jobs and generate $2.75 billion in total economic impact within the state.

Biomedicine Cluster With some of the best biomedical research facilities in the nation and one of the greatest clusters of biotechnology, pharmaceutical, and medical-device makers, the Mid-Atlantic has a long-standing reputation for healthcare innovation and commercialization. For

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

28.5% 36.3% 35.4% 32.8% 27.0%

*Bachelor's degree or higher, percent of persons age 25+, 2008-2012 Source: U.S. Census Bureau, ACS, revised July 2014

example, Maryland is home to the National Institutes of Health, Food and Drug Administration, Johns Hopkins University, and over 350 biotechnology firms. Although there has been considerable positive activity in this sector, there has been some downsizing and restructuring. Even with these adjustments, the number of biomedical companies in New Jersey increased between 2008 and 2013 by 9.4 percent to about 3,000, employing more than 115,000 people. One of the most recent investments in New Jersey is Bayer HealthCare’s new U.S. headquarters on a 94-acre campus in Whippany, which consolidates four other operations in New Jersey and New York. “Although the aim is to bring our employees together in one location, this initiative is about growing together, as well as building the brand and reputation of our company,” says Marijn Dekkers, chairman for Bayer AG Group Board of Management. “Whippany is our footprint on the East Coast now, as we invest further in the U.S.” Pennsylvania also has a strong life sciences industry — more than 2,300 pharmaceutical, biotechnology, and medical device companies in the state generate about $40 billion in revenues. Research and development has generated 6,512 patents over the last five years, which often provide the technologies for new start-up companies. For example, Nuron Biotech, a rapidly expanding specialty biologics and vaccines company in Exton, Pennsylvania, is in advanced trials for a promising new drug for treating multiple sclerosis. In New York, another fast-

AREA DEVELOPMENT | 2015 Annual Directory 49

MID-ATLANTIC DELAWARE

NEW YORK

TRADITIONAL INDUSTRIES: Manufacturing, agriculture, finance, chemistry EXPANDING INDUSTRIES: Professional and business services, transportation and utilities, education and healthcare, leisure and hospitality

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

MARYLAND 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

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

NEW JERSEY 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

growing company, Regeneron Pharmaceuticals, is expanding its operations in Westchester County, creating 400 jobs. Further up the Hudson River, BioHarvest, an Israeli biotechnology company, is moving its research and development operations to Albany from Tel Aviv. The company will collaborate with the University at Albany’s Cancer Research Center to produce innovative technologies for human health. “The collaboration with BioHarvest is a model publicprivate partnership that will clearly illustrate how the discovery, innovation, and entrepreneurship equation creates jobs and positive economic

AREADEVELOPMENT

outcomes for the community” says University at Albany President Robert J. Jones.

At the Center of the Energy Boom With its abundance of oil and gas reserves in the Marcellus and Utica shale formations, Pennsylvania is the center of the energy boom in the Mid-Atlantic. Total production is projected to exceed 17.5 billion cubic feet per day in the fourth quarter of 2014. This is driving a projected increase in state GDP of 4.5 percent for 2014. The abundance of oil and gas is also creating jobs in those industries that support the energy industry. Chemical

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MARYLAND

DELAWARE Principal Manufacturing Industries

Principal Manufacturing Industries (Percentage of Employment)

(Percentage of Employment)

Food

35.4%

17.5%

Computer & Electronic Products

11.1%

Food

13.5%

Chemicals

10.0%

Chemicals

11.2%

Plastics & Rubber Products

6.7%

Fabricated Metal Products

7.8%

Fabricated Metal Products

6.2%

Printing & Related Support Activities

7.4%

Paper

2.6%

Transportation Equipment

6.7%

Machinery

6.2%

Plastics & Rubber Products

5.9%

Nonmetallic Mineral Products

3.6%

Furniture & Related Products

3.1%

Other Manufacturing Industries

17.2%

Other Manufacturing Industries

28.0%

manufacturing is also on the rise, thanks to cheap shale gas that is used for fuel as well as feedstock. Panda Power has broken ground on an 829-megawatt natural-gas-fueled power plant in Lycoming County, located in the center of Marcellus shale country. It will be one of the cleanest natural-gas-fueled power plants in the nation when it starts operations in 2016.

800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com

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AREA0334.indd 1

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MID-ATLANTIC NEW JERSEY Principal Manufacturing Industries (Percentage of Employment)

19.1%

Food

12.5%

Computer & Electronic Products

9.7%

Fabricated Metal Products

8.8%

Printing & Related Support Activities

6.3%

Machinery Plastics & Rubber Products

Fabricated Metal Products Food, Beverage & Tobacco Products

14.4% 13.2%

Machinery

8.6%

Chemicals

7.2%

Primary Metals

7.0%

5.9%

Transportation Equipment

6.9%

5.0%

Plastics & Rubber Products

6.2%

Computer & Electronic Products

5.6%

Electrical Equipment and Appliances

4.6%

Printing and Related Support Activities

4.3%

Paper

4.2%

32.6%

NEW YORK Principal Manufacturing Industries (Percentage of Employment)

13.2%

Wood Products

3.6%

Fabricated Metal Products

12.1%

Nonmetallic Mineral Products

3.5%

Food

11.6%

Furniture & Related Products

2.6%

Other Manufacturing Industries

8.1%

9.3%

Chemicals

8.6%

Plastics & Rubber Products

4.7%

Printing & Related Support Activities

4.7%

Apparel

4.4%

Transportation Equipment

4.3%

Other Manufacturing Industries

27.1%

Several large-scale, cleanenergy investments have also been announced in New York and Maryland. SolarCity plans to invest $5 billion to build a one-million-square-foot, solar-panel manufacturing

AREADEVELOPMENT

Corporate Finance Tax: Minimum of $175 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

MARYLAND — BASIC BUSINESS TAXES

Computer & Electronic Products

Machinery

DELAWARE — BASIC BUSINESS TAXES

Principal Manufacturing Industries (Percentage of Employment)

Chemicals

Other Manufacturing Industries

PENNSYLVANIA

facility in South Buffalo, New York, resulting in 5,000 new jobs for the state. When it reaches full production, the factory will be the largest of its kind in the Western Hemisphere, producing more than 1 gigawatt of annual solar capacity. In Maryland, the state government is eager to develop offshore wind farms near Ocean City. The proposed wind farms will cover almost 80,000 acres, with the potential of generating up to 1,450 megawatts of power. Sixteen

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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

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 took effect Jan. 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.)

companies have qualified for the project. If proven viable, the project could also lead to the development of a wind turbine manufacturing plant in the area.

Food Processing Expanding Food processing has shown strength in several Mid-Atlantic States, especially New York and Pennsylvania.

800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com

Delaware • Maryland • New Jersey New York • Pennsylvania

NEW YORK — BASIC BUSINESS TAXES Corporate Income Tax: Qualified New York State manufacturers now pay a 0 percent corporate income tax rate. New York State’s maximum corporate franchise (business income) tax rate for most corporate taxpayers is 7.1 percent (6.5 percent for tax years beginning Jan. 1, 2016). In 2015, corporations pay the highest tax computed on the following three alternative bases: (1) a tax of 7.1 percent (6.5 percent for tax years beginning Jan. 1, 2016) on allocated business income (0 percent for qualified New York State manufacturers); (2) a tax of 0.15 percent (0.136 percent for qualified New York State manufacturers) on allocated business capital (the maximum for qualified New York State manufacturers is $350,000, and the maximum for non-manufacturers is $5 million — NOTE: the capital base is being phased out through 2021; and (3) a separate minimum tax at fixed dollar amounts, based on New York State receipts, ranging from $25 to $200,000 (the maximum fixed dollar minimum tax for qualified New York State manufacturers is $4,385 and is being reduced to $3,750 by tax year 2018) 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: New York State 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

Class A Ofﬁce & Modern Flex/R&D Space is available NOW in one of the largest cities in Maryland. Bowie is an excellent business location, with easy—less than 30 minutes—access to and from Washington D.C. and Reagan National Airport, Annapolis, Baltimore and BWI Airport. Bowie’s proximity to these major cities brings business and workforce into the area via Routes 3, 50 and 301. Bowie has more than 90 restaurants, 200 shops, and a dozen recreation opportunities. With this winning combination of location, access and amenities businesses are certain to grow and succeed. Melford at US 50 & US 301 Sean Doordan, 410.369.1211 1,000 sq. ft. to 85,000 sq. ft. Class A Office 2,000 sq. ft. to 60,000 sq. ft. Flex or R&D 200,000 sq. ft. of R&D space possible, just ask!

One Town Center Not only are these companies setting up new food-processing operations or expanding, they are building distribution centers as well — another sign of economic recovery. Food processors tend to locate in fertile landscapes close to local farmers and ranchers. For example, agriculture is a key economic driver in Maryland’s productive Howard County, which has 335 farms. One of

those companies — Coastal Sunbelt Produce — distributes produce and dairy products. It recently broke ground on a new 240,000-square-foot facility and plans to hire 400 additional workers. In Pennsylvania, Bell and Evans, a poultry processing and packaging company, has started construction on a $48 million, 158,000-square-foot facility in Lebanon County, which will create 380 new jobs.

David M. McClatchy Jr., 410.953.0366 1,000 sq. ft. to 88,000 sq. ft. Class A Office

16461 Excalibur Road William Steffey, 410.703.6553 1,000 sq. ft. to 15,000 sq. ft. Office or Medical

For more information on all of Bowie’s locations and opportunities contact:

John Henry King, Economic Development Director, City of Bowie, Maryland 15901 Excalibur Road Bowie, MD, 20716 301.809.3042 | fax 301.809.2315 | jhking@cityofbowie.org AREA DEVELOPMENT | 2015 Annual Directory 53

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PENNSYLVANIA — BASIC BUSINESS TAXES 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 0.67 mills; this tax is being phased out and is anticipated to be completely eliminated by 2016. Entities exempt from the capital stock/foreign franchise tax include certain qualifying not-for-profit organizations, homeowners’ associations, membership organizations, family farm corporations, agricultural cooperatives, restricted professional companies, and business trusts Sales and Use Tax: 6 percent on the retail sale, consumption, rental or use of tangible personal property in Pennsylvania. The tax is also imposed on certain services relating to such property and on the charge for specific business 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. Major items exempt from the tax include food (not ready-to-eat), candy and gum, most clothing, textbooks, computer services, pharmaceutical drugs, sales for resale, and residential heating fuels such as oil, electricity, gas, coal and firewood 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

This fall, Goya Foods, the largest Hispanicowned food company in the U.S., will open its regional distribution center and U.S. headquarters in New Jersey. Located in Jersey City, the 900,000-square-foot facility will be the largest expansion in the company’s history and feature both office and warehouse space. In another big announcement, Amy’s Kitchen will invest $100 million to construct a 500,000-square-foot organic food manufacturing plant in Orange County, New York, creating nearly 700 new jobs in the Hudson Valley. The plant will be operational by the end of 2016. “The beautiful site we’ve chosen is on the Walkill River,” says Andy Berliner, owner of Amy’s Kitchen. “Orange County is the perfect spot to supply our largest customers. The potential to source so many of our agricultural ingredients close to the plant was another important factor in our decision. We also believe it’s a great area to attract excellent employees. The help and support we’ve received from the state, county, and city has been outstanding, as well as the warm response we’ve received from the local community,” says Berliner. •••• — Mark Crawford

Strategic Location Skilled Workforce Fast Track Permitting Enterprise Zone Tax Credits Premier R&D Institutions Waterfront Locations Tax Credits & Other Incentives World Class Golf Courses

www.harfordbusiness.org

Barry Glassman, County Executive Karen Holt, Director, Economic Development 1 54AREA0371.indd AREADEVELOPMENT

FOR FREE SITE INFORMATION, CALL

1.888.I95.SITE 800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com 10/12/14 11:16 PM

MIDWEST Illinois • Indiana • Iowa Michigan • Minnesota Missouri • Ohio • Wisconsin

MANUFACTURING LEADS THE WAY AUTOMOTIVE, AEROSPACE, AND BIOMEDICAL SCIENCES AMONG OTHER ADVANCED INDUSTRY CLUSTERS ARE FUELING GROWTH IN THE MIDWEST STATES. Economic growth in the Midwest was steady in 2013, thanks to solid performances by the agriculture and manufacturing sectors, especially transportation equipment.

The economy also got a boost from the surging energy sector, led by oil-shale production in North Dakota and Ohio, which improved sales for supporting industries like sand, chemicals, and steel drill pipe made in Midwestern steel plants. Alternative energy is also driving some Midwestern economies — for example, Iowa remains one of the top states in the nation in renewable energy, with more than 27 percent of the state’s energy coming from wind. This has compelled companies like Facebook and Google to locate data centers within the state, which are powered fully or in part by renewable wind power. In addition to the $1.5 billion investment from Google and $300 million from

STATE

POPULATION

LABOR FORCE

Illinois

12,882,135

6,554,200

Indiana

6,537,334

3,149,743

Iowa

3,090,416

1,671,300

Michigan

9,992,727

4,808,017

Minnesota

5,420,380

3,001,186

Missouri

6,044,171

3,055,344

Ohio

11,570,808

5,765,704

Wisconsin

5,742,713

3,086,756

Facebook, Microsoft plans to build a $1.1 billion data centter in West Des Moines.

Steady Economic Growth This overall economic steadiness across the Midwest has continued into 2014. According to Creighton University’s MidAmerica Business Conditions Index for June 2014, the Midwest economy continued to grow. “Growth among durable goods manufacturers in the region is pushing overall employment higher,” says Ernie Goss, director of Creighton University’s Economic Forecasting Group. “Regional job growth for the first half of 2014 was running at an annual rate of 1.5 percent, well ahead of the growth experienced for the same period in 2013. This pace should remain strong for the second half of 2014.” As a result, hiring is up. The Midwest had a 5.6 percent unemployment rate

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)*

Illinois Indiana Iowa Michigan Minnesota Missouri Ohio Wisconsin

31.1% 23.0% 25.3% 25.5% 32.2% 25.8% 24.7% 26.4%

*Bachelor's degree or higher, percent of persons age 25+, 2008-2012 Source: U.S. Census Bureau, ACS, revised July 2014

in May 2014, considerably less than the national rate of 6.3 percent. September 2014 numbers include Minnesota (4.1 percent in September — fifth-lowest in the country), 5.5 percent in Wisconsin, and 6.3 percent in Missouri. Illinois’s unemployment rate hit a new six-year low in August at 6.7 percent, the lowest rate since 2008 and the continuation of an uninterrupted drop in the state jobless rate that began in late 2013.

Automotive as a Key Driver Manufacturing is a key economic driver for the Midwest economy. For example, with more than 9,400 manufacturers employing over 450,000 workers in Wisconsin, the manufacturing industry makes up nearly 17 percent of the state’s entire workforce. The state ranks fifth in the nation for manufacturing job creation and continues to add jobs. In neighboring Minnesota, manufacturing has recovered more than 28,000 jobs since early 2010. Manufacturing is one of the fastestgrowing sectors in Minnesota, adding nearly 10,000 jobs in the past year alone. Many of these new jobs are in the automotive sector, which continues to increase production across the Midwest. In Michigan, automakers have experienced an 11 percent sales growth through the first three quarters of 2014 over the same period in 2013. Michigan’s 500,000 auto-related jobs comprise 22 percent of the U.S. auto industry workforce. Over the last five years, automakers and auto suppliers have invested more than $19 billion in Michigan expansions and facilities upgrades. After facing major layoffs and restructuring during the

AREA DEVELOPMENT | 2015 Annual Directory 55

MIDWEST ILLINOIS

MINNESOTA

TRADITIONAL INDUSTRIES: Agriculture, heavy industry, financial services 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

TRADITIONAL INDUSTRIES: Healthcare, medical product manufacturing, computer and electronic product manufacturing, food processing, industrial machinery manufacturing EXPANDING INDUSTRIES: Health care, administrative services, professional and technical services, clean energy

INDIANA

MISSOURI

TRADITIONAL INDUSTRIES: Agriculture, steel, automotive, life sciences, motorsports, wood and wood products, electronics, plastics, food processing EXPANDING INDUSTRIES: Aerospace, life sciences, advanced manufacturing, automotive, distribution and logistics, information technology, national security and defense, motor sports, healthcare services, entrepreneurship and innovation, insurance and financial services

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

OHIO

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

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

MICHIGAN

WISCONSIN:

TRADITIONAL/EXPANDING INDUSTRIES: Life sciences, advanced 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, microand nanotechnology, pharmaceuticals, medical devices, instrumentation and diagnostics, research and ancillary services

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

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A ECON OM IOW IC

Location Fort Dodge, IA 50501 Available Acres: 447

Location F90 & R16 Van Meter, IA 50261 Available Acres: 288

Transportation Summary Nearest Interstate: I-35 is 20 miles away Nearest 4-Lane Highway: Highway 20 is 5 miles away Nearest Commercial Airport: Des Moines International Airport (DSM) 90 miles Rail Served: Yes Property and Area Description This site is centrally located within the NAFTA corridor. The site has all of the components for large industrial utility users and infrastructure consumers.

Global leaders such as Cargill, Valero and CJ Bio America are tenants within the Iowa’s Crossroads of Global Innovation. Utilities Summary Electric & Natural Gas Distribution: MidAmerican Energy Company Telecommunications Local Service Providers: WebsterCalhoun Cooperative Telephone Sewer & Water Distribution: City of Fort Dodge Contact Kelly Halsted 515-995-5500

Transportation Summary Nearest Interstate: I-80 is 2 miles away Nearest 4-Lane Highway: Highway 6 is 7 miles Nearest Commercial Airport: Des Moines International Airport (DSM) 19 miles Rail Served: No Property and Area Description Located just southeast of the community of Van Meter and only a few miles from the Des Moines

IOWA FALLS / HARDIN COUNTY INDUSTRIAL SITE

WEST METRO INTERSTATE AND RAIL PARK

Location JJ Avenue &140th Street Iowa Falls, IA 50501 Available Acres: 245

Location I-80 and Highway 6 Dexter, IA 50070 Available Acres: 255

Transportation Summary Nearest Interstate: I-35 is 21.2 miles away Nearest 4-Lane Highway: US 20 is 5.1 miles away Nearest Commercial Airport: Mason City Municipal Airport (MCW) 58 miles Rail Served: Yes Property and Area Description This land is between the Canadian National and Union Paciﬁc rail lines. Rail Preliminary Design is nearing completion on connection

track and manifest yard. Electric service borders north and south boundaries, gas transmission line is also present. Utilities Summary Electric Distribution: Midland Power Cooperative Natural Gas Distribution: Alliant Energy, Northern Natural Gas Telecommunications Local Service Providers: Mediacom, Century Link Sewer & Water Distribution: City of Iowa Falls Contact Cindy Litwiller 641-648-5604

Transportation Summary Nearest Interstate: I-80 zero miles Nearest 4-Lane Highway: Highway 6 zero miles Nearest Commercial Airport: Des Moines International Airport (DSM) 35 miles Rail Served: Yes Property and Area Description Bordered by I-80, Highway 6 and Iowa Interstate Railroad, this is

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WEBSTER COUNTY AG CENTER

E R TIFI

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SIT E

Metro. This land is currently agricultural. Utilities Summary Electric & Natural Gas Distribution: MidAmerican Energy Company Telecommunications Local Service Providers: Paetec, Century Link Sewer & Water distribution: City of Van Meter Contact Linda Wunsch 515-987-2020

an ideal site for warehousing, distribution center, manufacturing or other uses requiring rail or interstate access. Large water and electric supply are on site. This site also has access to a large, highly educated workforce. Utilities Summary Electric & Natural Gas Distribution: MidAmerican Energy Company Contact Linda Wunsch 515-987-2020

iowaeconomicdevelopment.com/SiteLocation/CertiﬁedSite

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MIDWEST ILLINOIS

IOWA

Principal Manufacturing Industries (Percentage of Employment)

Food

24.0%

16.9%

Food Products

15.0%

Fabricated Metal Products Machinery

Machinery

13.8%

Machinery

Food

13.2%

Fabricated Metal Products

5.6%

Computer & Electronic Products

5.1%

Plastic & Rubber Products

6.8%

Motor Vehicles, Bodies and Trailers, and Parts

5.9%

Computers and Electronic Products Other Manufacturing Industries

5.5% 31.3%

Principal Manufacturing Industries (Percentage of Employment)

23.0%

Fabricated Metal Products

5.1%

11.0%

4.2%

Principal Manufacturing Industries (Percentage of Employment)

10.0%

Food

8.6%

Plastics & Rubber Products

7.9%

Chemicals

6.5%

Primary Metals

5.6%

Electrical Eqpt., Appliances & Components

4.0%

Nonmetallic Mineral Products

3.6%

Other Manufacturing Industries

19.7%

Printing & Related Support Activities

8.0%

Misc. Products

7.0%

Other Manufacturing Industries

31.0%

(Percentage of Employment)

Food Products

15.4% 15.1%

Fabricated Metal Products

13.9%

Fabricated Metal Products

12.0%

Machinery

12.1%

Machinery

10.2%

Chemicals

7.4%

Plastics & Rubber Products

5.9%

Printing & Related Support Activities

5.2%

Electrical Equipment, Appliances, & Components

4.4%

Primary Metals

2.9%

Food Mfg. Rubber & Plastic

7.1%

Plastics & Rubber Products

6.6%

Chemicals

5.3%

Products

6.6%

Primary Metals

3.8%

Chemicals

5.5%

Furniture & Related Products

3.7%

Other Manufacturing Industries

11.6%

Transportation Equipment

8.2%

2.9%

Machinery

27.7%

Machinery

Printing

14.0%

Transportation Equipment

6.7%

3.3%

15.1%

Principal Manufacturing Industries

Food

Computer & Electronic Products

Fabricated Metal Products

MISSOURI

8.5%

6.1%

17.3%

20.2%

Primary Metal Industries

Furniture & Related Products

Transportation Equipment

(mostly medical devices)

Plastics & Rubber Products

MICHIGAN

INDIANA Transportation Equipment

Motor Vehicle Products

Other Manufacturing Industries

(Percentage of Employment)

15.0%

Chemicals

Other Manufacturing Industries

20.2%

Principal Manufacturing Industries

(Percentage of Employment)

18.9%

15.7%

7.7%

Principal Manufacturing Industries

Computer & Electronic Products

Fabricated Metal Products

Chemicals

OHIO

MINNESOTA

Principal Manufacturing Industries

Other Manufacturing Industries

21.5%

17.8%

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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, policies 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. Take the next step and discover how your business will succeed In Wisconsin®. Contact our Business Attraction Account Manager, Wade Goodsell, at 608.210.6813 or wade.goodsell@wedc.org. Learn more by visiting Certified.InWisconsin.com

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MIDWEST recession, Missouri’s automotive industry is coming back strong. A recent report indicates that by 2015, the industry will have invested nearly $2 billion and generated or retained nearly 14,000 automotive jobs and an additional 21,000 ancillary jobs — producing nearly $15.4 billion in GDP over the six years. Indiana continues to be a top state for recreational vehicle (RV) production, manufacturing almost 80 percent of all RVs in the country. Expansions and investments continue, including KZRV’s plans to expand its operations in Shipshewana by building a $4.83 million lamination facil-

ity, creating up to 125 new jobs by 2017. “The new facility will produce high-quality laminated components and custom aluminum parts that will feed our other towable assembly plants, improving our overall efficiency,” says Aram Koltookian, chief operating officer for KZRV. As automotive production expands across the Midwest, more suppliers are moving in to support the industry. For example, in May 2014, Fuyao Glass America announced it would build a new automotive glass factory in Moraine, Ohio, creating 800 jobs. In Michigan, Dicastal

North America, a subsidiary of a Chinese aluminum wheel manufacturer, plans to open a new plant in Greenville. Other new Michigan operations are Eissmann Group Automotive ($13.55 million, leather interiors) and Brembo North America ($78.4 million, brake rotor castings).

Biomedical Sciences Clusters The Midwest is also home to several biomedical clusters, including the University of Wisconsin’s University Research Park in Madison. PSC Biotech, a California lifesciences company, will move into a 37,000-square-foot

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

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Principal Manufacturing Industries (Percentage of Employment)

Fabricated Metal Products

15.9%

Machinery

14.8%

Food

13.7%

Printing & Related Support Activities

6.7%

Plastics & Rubber Products

6.6%

Paper

6.4%

Transportation Equipment

5.8%

Electrical Equipment, Appliances, & Components

5.0%

Computer & Electronic Products

4.1%

Primary Metals

3.8%

Chemicals

3.6%

Wood Products

3.6%

Furniture & Related Products

3.3%

Other Manufacturing IIndustries

6.7%

facility in the park to manufacture cancer-fighting drugs. The company plans to hire about 100 workers. Chicago serves as the U.S. headquarters for Takeda Pharmaceutical and Astellas Pharma, two global Japanese companies. And Minnesota has been long known for its medical device industry, led by such companies as Medtronic and St. Jude Medical. The industry employs more than 28,000 people in Minnesota, second in the country behind California. Minnesota exported $3.3 billion worth of medical and optical equipment and supplies in 2013. Recent news includes the announcement that Cardiovascular Systems is building a $30 million headquarters

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 in the company of leaders as you expand or relocate your business. Call 608.443.1960 or visit madisonregion.org.

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WISCONSIN

800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com 13/12/13 8:27 PM

Illinois • Indiana • Iowa • Michigan • Minnesota • Missouri Ohio • Wisconsin

ILLINOIS — 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)

in New Brighton, Minnesota, and plans to more than double its workforce to about 400 employees within two years. Missouri was one of the top states in 2013 for technology job growth, including the biomedical field. In St. Louis, Express Scripts intends to expand its campus, investing $56 million and creating 1,500 new jobs. Catalent Pharma Solutions, a global leader in the life sciences industry, recently announced a $30 million expansion at its location in Kansas City, creating about 230 jobs. “Missouri’s pro-business environment, strong workforce, and economic support made it an easy choice to invest in Missouri,” states John Chiminski, president and CEO of Catalent Pharma Solutions. “We look forward to increasing our presence here and playing a larger role in the state’s growing life sciences industry.” The October opening of the John and Mary Pappajohn Biomedical Discovery Building at the University of Iowa (UI) will accelerate research in biomedicine in that state, helping scientists further their understanding of the fundamentals of biology and disease, as well as make discoveries to improve human health. It will also present “exciting economic development

INDIANA — BASIC BUSINESS TAXES Corporate Adjusted Gross Income Tax: 7 percent in 2014 and declining to 6.5 percent in 2015 Individual Income Tax: Flat rate of 3.4 percent covers most 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

opportunities” for Iowa, according to UI President Sally Mason. And Michigan does more than make cars — it also has a growing biomedicine industry. Molina Healthcare of Michigan is expanding its Troy operations with a $20.3 million capital investment. SRI Biosciences has completed construction of an early-phase clinical trial facility in Plymouth. The 9,400-square-foot unit, located in the Michigan Life Science Innovation Center, will carry out early-stage human research

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MIDWEST

MICHIGAN â&#x20AC;&#x201D; BASIC BUSINESS TAXES 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

IOWA â&#x20AC;&#x201D; 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

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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. Commercial personal property is exempt from 12 mills. Available property tax abatements are negotiated locally. There is a 100 percent new personal property exemption available in specified communities. Also, 50 percent abatements for up to 12 years for real property are available to industrial processors, and 50 percent abatements for up to 12 years for real and personal property for high-tech companies. Rehabilitation projects can be abated 100 percent. As of August 5, 2014, Michigan began phasing out its Personal Property Tax (PPT) for qualifying personal property. More specifically, the term refers to all personal property located on real property where that personal property is used more than 50 percent of the time in industrial processes or in supporting industrial processes

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Illinois • Indiana • Iowa • Michigan • Minnesota • Missouri Ohio • Wisconsin MINNESOTA — BASIC BUSINESS TAXES Corporate Income Tax: Corporations' rate is 9.8 percent, one-factor sales formula (sales, property, payroll): 100 percent sales Sales and Use Tax: The overall state sales tax rate is 6.875 percent with a local tax maximum of 1.1 percent. Unlike other states, Minnesota does not tax materials and fuels used in the manufacturing process. Minnesota currently refunds sales tax paid on capital equipment (machinery and equipment) used in the manufacturing process. Beginning July 1, 2015, there will be an upfront exemption on these taxes. There are also several other major exemptions for businesses, including fees for capital equipment installation and repair. For qualified data centers, enterprise information technology equipment and electricity used in the operation of the center are exempt. Computer software is refunded. A qualified data center is a facility in Minnesota that consist of at least 25,000 square feet, where the total cost of construction or refurbishment, investment in information technology equipment and computer software is at least $30 million within a period of 48 months 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

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MISSOURI — BASIC BUSINESS TAXES 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)

studies of new medicines and medical devices.

Aerospace — Another Economic Driver Aerospace is an important economic driver in several Midwest States, including Missouri, Ohio, and Illinois. Boeing is expanding its St. Louis campus to produce parts for the 777X aircraft, hiring 700 workers. These jobs are in addition to another 1,300 high-tech new jobs Boeing expects to create in St. Louis for other defense projects.

Ohio has some of the best aerospace and aviation testing and research facilities in the country, including the U.S. Air Force Research Laboratory in Dayton, NASA’s Glenn Research Center in Cleveland, and Plum Brook Station in Sandusky. Ohio is especially well known for engine manufacturing and is the numberone U.S. supplier to both Boeing and Airbus. In December 2013, GE Aviation opened its $53 million Electrical Power Integrated Systems Center in Dayton, a 138,000-squarefoot facility that is designed to simulate and test complete

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MIDWEST OHIO — BASIC BUSINESS TAXES 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. Exemptions for equipment purchases by manufacturing, logistics, and data centers Property Tax: Assessed by cities, counties, and school districts, collected by counties, on 35 percent of true value for real property; no personal property tax

WISCONSIN — BASIC BUSINESS TAXES Corporate Income Tax: 7.9 percent of net income; Manufacturing and Agriculture Tax Credit may apply to businesses of those industries and offset the corporate tax rate to a possible 0.4 percent in 2016 and beyond. 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

electrical power systems in aircraft. In Illinois, Rockford’s aerospace cluster continues to expand with the announcement that global aircraft service leader AAR Corporation will build a new facility at Rockford International Airport, creating up to 500 new jobs.

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The Rockford region is home to more than 200 aerospace companies, including Boeing, Woodward, UTC Aerospace Systems, and GE Aviation, and more than 80 percent of Illinois’ aerospace workforce is located in the area. “Rockford is the third-largest multi-modal port system

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in the world, which makes it a great place for aviation and for AAR to grow its presence and reputation in aircraft maintenance, repair, and operations,” says AAR Corporation Chairman and CEO David P. Storch.

Building the Workforce of the Future As manufacturing industries rebound, there is a strong need for skilled, highly trained workers who are a good match for high-tech, good-paying jobs, especially those in advanced manufacturing fields like aerospace. For example, in Dayton, Sinclair Community College will build a $5 million unmanned aerial systems training and certification center to meet the employment needs of local aerospace companies. Capabilities will include a wind tunnel, 3-D printing machines, flight simulators, and indoor flying space for drones. “We want to attract manufacturing across the board in aerospace,” says Deborah Norris, vice president of workforce development and corporate services for Sinclair Community College. “There’s a very strong place for aerospace manufacturers of all sizes in this space.” To maintain Michigan’s skilled trade workforce, the state will have committed $70 million by 2015 to expand training opportunities in high-demand fields. Its MAT2 program matches high school graduates who work at major employers while undergoing community college training in mechatronics, IT, and technical product design. The Skilled Trades Training Fund helps

defray the costs of training for participating businesses that commit to hire those who successfully complete classroom training or, in cases of on-the-job or incumbent worker training, retain the employees at the completion of training. “Talent is today’s main currency of economic development,” says Michael Finney, president and CEO of the Michigan Economic Development Corporation. “Michigan intends to lead the way in manufacturing, and the surest way is to make certain that we match our top-tier engineering universities with toptier skilled trades training.” Another untapped labor resource is U.S. veterans. Iowa has created a program called Home Base Iowa that helps veterans and active-duty service members re-enter the workforce and civilian life. The program matches veterans with job opportunities in the state. Thus far, 5,000 jobs have been pledged to the program and some of Iowa’s top companies have already hired more than 260 veterans. The initiative also streamlines occupational licensure for military members and their spouses and makes veterans, and their spouses and dependents, eligible for free tuition at Iowa’s community colleges. “Through their service, veterans have already proven their hard work, leadership, and patriotism,” states Iowa Governor Terry Branstad. “Home Base Iowa allows veterans to find the right job for them in Iowa, and to become a part of our communities.” •••• — Mark Crawford

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PLAINS Kansas • Nebraska North Dakota South Dakota

TAX AND INCENTIVES ADVANTAGES THE PLAINS STATES’ LOW TAX ENVIRONMENT AND PLENTIFUL INCENTIVES ARE ENCOURAGING INVESTMENT IN RENEWABLE ENERGY, LIFE SCIENCES, OTHER R&D. In the Wizard of Oz, Dorothy’s Kansas home is blown away by a powerful tornado. Today, this prairie state is harnessing wind power.

Renewable Energy In its Q3 2014 U.S. Wind

Energy Annual Market Report, the American Wind Energy Association ranked Kansas No. 8 in the nation for wind power capacity installations. So far the state has reaped some $7 billion in investments for its wind industry, including project developers and a Siemens nacelle manufacturing plant in Hutchinson. Kansas also is attracting a host of companies in agricultural, food processing, aviation, and animal science that have relocated or expanded their businesses to the state. Among them, Netherlandsbased Unilever Supply Chain expanded its existing plant in New Century by nearly 450,000 square feet and is expected to add 100 new jobs to its current 150. The $152.5 million investment also includes the purchase of new machinery and equipment. “By creating a world-class manufacturing facility we

are further investing in our core food brands, and we’re excited about the growth tthis will enable,” says Kees Kruythoff, Unilever North America president. A Kansas offers a number of incentives to attract such deals. Among them is its High Performance Incentive Program (HPIP), which offers incentives to businesses that make new capital investments, pay above-average wages, and invest in workforce training. An additional qualifier may be available for nonmanufacturing firms that receive a majority of their revenues from outside of Kansas. HPIP can offer corporate income tax credits and a sales tax exemption on purchases related to a company’s project. Nebraska is courting the renewable energy sector by offering incentives through its Nebraska Advantage Package to businesses that produce and sell electricity via renewable energy resources. The package is available to other industry sectors as well. Here, businesses may qualify under various “tiers” for tax refunds, credits, or exemptions, depending on the investment and jobs created.

RIGHT TO WORK Kansas Nebraska North Dakota South Dakota

Yes Yes Yes Yes

COLLEGE GRADUATES STATE

POPULATION

LABOR FORCE

Kansas

2,900,000

1,496,000

Nebraska

1,826,341

1,025,400

North Dakota 723,393

400,588

South Dakota 844,877

448,360

(Age 25 and over)*

Kansas Nebraska North Dakota South Dakota

30.0% 28.1% 27.1% 26.0%

*Bachelor's degree or higher, percent of persons age 25+, 2008-2012 Source: U.S. Census Bureau, ACS, revised July 2014

For example, a business making a $1 million investment and adding 10 new jobs is eligible for a Tier 1 refund of one-half of the sales tax paid for qualified capital purchases at the project; the full sliding scale wage credit of 3, 4, 5 or 6 percent depending on wage levels; and a 3 percent investment tax credit. Tier 5, which calls for a $30 million new investment and maintaining all employees, provides a refund of all sales taxes paid on the project’s capital purchases. Other components are incorporated into the Nebraska Advantage package, such as flexible and discretionary job training grants; the R&D Tax Credit; and Microenterprise Tax Credit.

Low Tax Environment South Dakota has created one of the nation’s consistently low tax environments, thereby earning it a No. 2 ranking in the Tax Foundation’s 2015 Business Tax Climate Index. South Dakota’s newest finance program is its Reinvestment Payment Program, the result of 2013 state legislation. Essentially, the program assists companies in offsetting upfront costs associated with relocating or expanding operations and/or upgrading equipment in South Dakota. The program allows for project owners to receive a reinvestment payment, not to exceed the South Dakota sales and use tax paid on project costs, for new or expanded facilities with project costs in excess of $20 million or for equipment upgrades with project costs in excess of $2 million. So far nine companies

AREA DEVELOPMENT | 2015 Annual Directory 65

PLAINS KANSAS

NORTH DAKOTA

KANSAS

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

NEBRASKA

Principal Manufacturing Industries

(Percentage of Employment)

23.9%

Food & Beverages

20.0%

11.8%

Transportation Equipment

10.2%

9.6%

Fabricated Metal Products

8.7%

34.6%

Wood Products/ Printing

6.9%

Computer & Electronic Products

5.8%

Nonmetallic Mineral Products

6.8%

Plastics & Rubber Products

5.6%

Furniture & Related Products

3.4%

Other Manufacturing Industries

8.7%

24.5%

Food Products

19.5%

Machinery Fabricated Metal Products Other Manufacturing Industries

TRADITIONAL INDUSTRIES: Agriculture, manufacturing EXPANDING INDUSTRIES: Food processing, healthcare, telecommunications, machinery manufacturing

Machinery

Transportation Equipment

NEBRASKA Principal Manufacturing Industries (Percentage of Employment)

NORTH DAKOTA TRADITIONAL INDUSTRIES: Agricultural production, mining 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

TRADITIONAL INDUSTRIES: Agriculture, manufacturing EXPANDING INDUSTRIES: Advanced manufacturing; bioscience; financial services; oil and gas; professional business services; value-added ag; shooting, hunting, and outdoors

AREADEVELOPMENT

33.8%

Industrial Machinery

10.1%

Fabricated Metal Products

9.4%

Transportation Equipment

8.8%

Rubber & Plastic Products

5.4%

Computer & Electronic Products

4.5%

Printing & Related Activities

SOUTH DAKOTA

have been approved for the program. Among them is Canadian company Marmen Energy, which was approved for a reinvestment payment of up to $600,000 for its expansion into a 150,000-squarefoot facility in Brandon, South Dakota. The plant is dedicated to the fabrication of wind towers.

Food Processing

Energy and R&D At 2.8 percent (October 2014), North Dakota is the state with the nationâ&#x20AC;&#x2122;s lowest unemployment rate, thanks largely to its oil boom. The U.S. Energy Information Administration now ranks North Dakota the second largest oil-producing state in the nation. Its economic output has

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Other Manufacturing Industries

SOUTH DAKOTA Principal Manufacturing Industries

3.9% 24.1%

more than doubled in just 11 years, according to Bureau of Economic Analysis, reaching $49.8 billion in 2013. North Dakota is also home to Microsoft, Amazon, and countless other high-tech companies and offers 15 financial assistance and incentive programs. Among them is the Research North Dakota program that was introduced in 2013. The program consists of Research ND and Research ND

(Percentage of Employment)

Food

20.2%

Machinery

15.3%

Fabricated Metal Products

10.8%

Transportation Equipment

6.6%

Computer & Electronic Products

5.4%

Furniture & Related Products

5.4%

Wood Products

5.0%

Other Manufacturing Industries

31.3%

BIO and targets North Dakota companies with research, development, or commercialization needs that can be met through partnership with one

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AREA0373.indd 1

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PLAINS KANSAS — BASIC BUSINESS TAXES

NORTH DAKOTA — 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 is exempt from income tax in Kansas. Individual income tax rates are reduced as well to 4.8 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

Corporate Income Tax: The corporate income tax rate was lowered effective Jan. 1, 2013. The current corporate income tax rate range is 1.48 to 4.53 percent with exemptions

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: 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

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

Unemployment Tax: 1.22 percent of the first $33,600 of wages per employee for new businesses, nonconstruction

NEBRASKA — BASIC BUSINESS TAXES

SOUTH DAKOTA — BASIC BUSINESS TAXES

Workers' Compensation Tax: Rates apply to only the first $33,600 of wages per employee. Employers may be eligible for a discount on their premium

Corporate Income Tax: 5.58 percent on the first $100,000 and 7.81 percent on income of more than $50,000, based on federal taxable income attributable to Nebraska operations

Corporate Income Tax: None

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

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

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

of North Dakota’s research universities. In addition, companies outside of the state with similar needs and an in-

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

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terest in expanding into North Dakota, or partnering with a North Dakota company, are eligible. Advanced manu-

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Bank and Financial Corporation Excise Tax: Varies from 0.25 to 6 percent depending on net income

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

facturing, aerospace, valueadded agricultural, energy, as well as technology-based businesses are encouraged to utilize the program. Research ND BIO is limited to research, development, and commercialization of vaccines and antibodies for the preven-

tion or treatment of, or cure for, cancer, virally infectious disease, or other pathogens. Companies that do not fit the criteria of the Research ND BIO program may apply for funding through Research ND. •••• — Karen E. Thuermer

800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com

SOUTH Alabama • Arkansas • Kentucky Louisiana • Mississippi • Tennessee

AUTO, AVIATION, ENERGY DRIVE GROWTH IN THE SOUTH GROWTH IN AUTOMOTIVE AND AVIATION-RELATED MANUFACTURING, AS WELL AS THE ENERGY SECTOR, IS RESPONSIBLE FOR MUCH OF THE SOUTH’S ECONOMIC SUCCESS. The Southern States are driving into the future on the

strength of the motor vehicle industry. These states tend to be heavy on manufacturing; their manufacturing sectors tend to have strong automotive activity, and it’s a good time to be in that business. That’s among the reasons all six of the states in this region took home Area Development’s Silver Shovel honors earlier this year.

Auto/Advanced Manufacturing Alabama has grown into quite the automotive state, thanks to its Mercedes-Benz, Honda, and Hyundai plants and the wealth of suppliers that support those assembly operations. Before Mercedes opened its facility in 1997, no cars were made in Alabama. Two years after Mercedes opened for business, Honda

STATE

POPULATION

LABOR FORCE

Alabama

4,833,722

2,119,100

Arkansas

2,959,373

1,326,528

Kentucky

4,395,295

2,413,942

Louisiana

4,625,470

2,146,613

Mississippi

2,991,207

1,286,400

Tennessee

6,495,978

3,070,456

announced plans for its $2 billion Alabama facility, and two years later Hyundai said it would join the party with a nearly $2 billion plant of its own. Today, the state ranks fifth in automotive and light truck manufacturing, and in the bustling automotive South, Alabama makes a quarter of all of the region’s passenger vehicles. The sector enjoys continued growth — for example, this fall Mercedes announced it would increase its Alabama output to 300,000 vehicles. Not surprisingly, transportation equipment is by far the state’s largest export. And among the growth that landed the state a Silver Shovel award were numerous auto-related projects, from the logistics hub Mercedes announced to a variety of supplier expansions covering such components as seats and fuel tanks. Advanced manufacturing continues to also move forward in Alabama. The Alabama Robotics Technology Park is working on an

RIGHT TO WORK Alabama Arkansas Kentucky Louisiana Mississippi Tennessee

Yes Yes No Yes Yes Yes

COLLEGE GRADUATES (Age 25 and over)*

Alabama Arkansas Kentucky Louisiana Mississippi Tennessee

22.3% 19.8% 21.0% 21.4% 20.0% 23.5%

*Bachelor's degree or higher, percent of persons age 25+, 2008–2012 Source: U.S. Census Bureau, ACS, revised July 2014

expansion — an Integration, Entrepreneurial and Paint/ Dispense Training Center, for which ground was broken on Halloween. Also in October, GKN Aerospace broke ground on an addition to its Tallassee facility to create an engineering design center. Overall, the GKN Aerospace ACS facility about 35 miles from Montgomery employs more than 1,000 people. Meanwhile in Decatur, United Launch Alliance assembles Atlas and Delta launch vehicles designed to carry satellites and space probes into orbit and beyond. Some 1,000 employees are on the payroll there.

Aviation Takes Off Aviation is big business in Arkansas, and has been for decades, thanks to the presence of Dassault Falcon Jet’s Little Rock completion facility, which is the French company’s largest operation. The region’s top manufacturing employer, Dassault Falcon Jet broke ground in 2014 on a $60 million expansion and upgrade. The facility is a prime reason why Beaudet Aviation picked Little Rock this past fall for a new facility. Beaudet, which focuses on aircraft cabin interiors, will supply Dassault Falcon Jet with completion work for its Falcon models, according to the Little Rock Regional Chamber of Commerce. The announcement means 75 jobs at the outset, and the company’s ongoing expansion plans include eventually building its own hangar big enough to accommodate wide-body jets. “Aviation is Arkansas’s leading export,” Governor Mike Beebe said as Beaudet made its announcement. “Beaudet Aviation now increases that sector’s strong momentum with its arrival in Little

AREA DEVELOPMENT | 2015 Annual Directory 69

Motivation brings momentum.

Featuring low operating costs, an abundant labor supply, and easy access, Metro Little Rock is home to major brands manufactured by our own skilled and motivated workforce.

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A one-day drive from 42% of the U.S. population Centrally located in a state that’s 2nd in the South for Manufacturing Employment – National Association of Manufacturers

3rd lowest average manufacturing wage in the nation – U.S. Department of Labor

Boasting a highly skilled population of more than 1,000,000 people

Metro Little Rock Alliance (MLRA) is a coalition of 12 counties dedicated to leveraging the region’s strengths and advantages for exciting, forward-thinking companies. Catch the momentum at metrolittlerockalliance.com.

Momentum is here Joey Dean, Executive Director 1-800-905-6577 | jdean@littlerockchamber.com AREA0358.indd 1

05/12/14 3:34 PM

REVIEW SPONSORED BY METRO LITTLE ROCK ALLIANCE Joey Dean, Executive Director

Amy Mattison, CEO

METRO LITTLE ROCK ALLIANCE

JACKSONVILLE CHAMBER OF COMMERCE

One Chamber Plaza Little Rock, AR 72201 501-377-6006 jdean@littlerockchamber.com www.littlerockchamber.com www.metrolittlerockalliance.com Stephen Bell, President & CEO ARKADELPHIA REGIONAL ECONOMIC DEVELOPMENT ALLIANCE

200 Dupree Drive Jacksonville, AR 72076 501-982-1511 • Fax: 501-982-1464 chamber@jacksonville-arkansas.com www.jacksonville-arkansas.com Lou Ann Nisbett, President & CEO, Economic Development

ECONOMIC DEVELOPMENT ALLIANCE FOR JEFFERSON COUNTY

2401 Pine Street, Suite B P.O. Box 400 Arkadelphia, AR 71923 870-246-1460 • Fax: 870-246-1462 Stephen@arkadelphiaalliance.com www.arkadelphiaalliance.com

510 S. Main Street Pine Bluff, AR 71601 870-535-0110 lanisbett@sbcglobal.net www.jeffersoncountyalliance.com

Jerry L. Smith, President & CEO

LITTLE ROCK PORT AUTHORITY

CONWAY COUNTY ECONOMIC DEVELOPMENT CORPORATION

115 East Broadway Street P.O. Box 589 Morrilton, AR 72110 501-354-2442 • Cell: 870-897-5134 Fax: 501-354-8642 jerrysmith@morrilton.com www.morrilton.com Brad Lacy, President & CEO CONWAY DEVELOPMENT CORPORATION

900 Oak Street Conway, AR 72032 501-329-7788 • Fax: 501-327-7790 Brad.Lacy@conwayarkansas.org www.developconway.org www.conwayarkansas.org Mike Maulden, Director, Business & Economic Development ENTERGY ARKANSAS

425 West Capitol Ave., Suite 2700 Little Rock, AR 72201 501-377-4474 mmaulde@entergy.com www.EntergyArkansas.com Jim Lancaster, President GRANT COUNTY INDUSTRIAL DEVELOPMENT CORPORATION

P. O. Box 557 Sheridan, AR 72150 870-942-3481 jimlancaster@windstream.net www.grantcountychamber.com Jim Fram, President & CEO HOT SPRINGS METRO PARTNERSHIP

659 Ouachita Ave. Hot Springs, AR 71901 501-321-1700 • Fax: 501-321-3551 jim.fram@growinghotsprings.com info@growinghotsprings.com www.hotspringsmetropartnership.com www.growinghotsprings.com

Bryan Day, Executive Director 10600 Industrial Harbor Drive Little Rock, AR 72206 501-490-1468 • Cell: 501-519-1950 Bday7500@comcast.net www.LittleRockPortAuthority.com Nikki Cranford Launius, Executive Director MALVERN/HOT SPRING COUNTY ECONOMIC DEVELOPMENT CORPORATION

213 W. 3rd Street Malvern, AR 72104 501-332-2721 • Fax: 501-332-8558 president@malvernchamber.com www.malvernchamber.com

Judy Keller, Director, Community & Economic Development CITY OF MAUMELLE

550 Edgewood Drive, Suite 590 Maumelle, AR 72113 501-851-2500 • Cell: 501-240-9888 Fax: 501-803-4673 judy@maumelle.org • ced@maumelle.org www.maumelle.org Lamont Cornwell, Executive Director SALINE COUNTY EDC

607 North Market Street Benton, AR 72015 501-860-4007 • Fax: 501-860-4007 director@scedc.org www.scedc.org Buck Layne, President SEARCY REGIONAL CHAMBER OF COMMERCE

2323 South Main Street Searcy, AR 72143 501-268-2458 • Fax: 501-268-9530 blayne@searcychamber.com www.searcychamber.com Barry Sellers, Director, Economic Development SHERWOOD CHAMBER OF COMMERCE

295 W. Kiehl Avenue Sherwood, AR 72120 501-835-7600 • Cell: 870-323-2424 bsellers@sherwoodchamber.net www.sherwoodchamber.net

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

ARKANSAS TRADITIONAL INDUSTRIES: Food and kindred products, metals, paper, rubber/plastics, timber, transportation, agriculture EXPANDING INDUSTRIES: Business services/ telecommunications, health services/ infotechnology, transportation equipment, biotechnology, aerospace, steel

Rock.” The aviation/aerospace sector, with more than 20 companies in the region that employ 9,000 people, represents more than 10 percent of the state’s exports. One of the biggest developments of 2014 in Arkansas was the September groundbreaking in Osceola for a $1.3 billion steel mill and recycling facility for Big River Steel LLC. It is, in fact, the biggest-ever single private investment in the state. It’ll take about a year and a half to complete, and when it opens, it’ll provide work for 500 people who’ll earn an average of $75,000 a year. Some 14 percent of the Arkansas workforce is involved in manufacturing, making it one of the na-

tion’s most manufacturingintensive states. The advanced manufacturing and innovation economies are diverse across the state. For example, Caterpillar opened a road grader plant there four years ago; HP has a large workforce involved in customer service and technical support; and Denmark-based LM Wind Power manufactures wind turbine blades in Little Rock. Agriculture and food processing are big in Arkansas, too.

Another Auto Powerhouse Kentucky is heavily invested in manufacturing, as well, and like so many of the states around it, automotive manufacturing is one of the big reasons. Toyota is a well-

METRO LITTLE ROCK ALLIANCE The Metro Little Rock Alliance represents a 12-county region with a population of over 1,000,000 people. www.littlerockchamber.com | www.metrolittlerockalliance.com | 1.800.905.6577

AREADEVELOPMENT

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ShovelArticle2014

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Page 48

Metro Little Rock— Where America Comes Together The Metro Little Rock Alliance represents a 12-county region with a population of over 1,000,000 people and reflects the mobility of our workforce. It is located in the center of the country and in the second-fastest-growing region of the United States, with 40 percent of the nation’s population and buying power within a 550-mile radius. Little Rock is where “America Comes Together” — located at the crossroads of Interstate 30 and the most heavily traveled interstate in the nation, I-40. Little Rock benefits from a diversified economic base revolving around the following primary industries: advanced manufacturing, aerospace, information technology, medical/healthcare, military, and nonprofit. Kiplinger’s Personal Finance ranked Little Rock #1 of America’s 10 Great Places to Live in August 2013.

Advanced Manufacturing Targeted workforce development curriculum from the region’s community colleges makes advanced manufacturing one of the region’s top employers — both domestic and international. Metro Little Rock excels when it comes to importing materials and shipping the ﬁnished product. The Metro Little Rock region is centrally located at the crossroads of major interstate highways (I-30 and I-40), rail lines, and port facilities. This transportation infrastructure provides easy access to assembly plants and supports just-in-time manufacturing strategies.

Aerospace In 2012, aircraft/spacecraft was Arkansas’s largest export. The sector accounted for 24 percent of Arkansas’s total export value. The region has in excess of 20 aviation and aerospace-related companies, employing approximately 9,000 people.

Information Technology Central Arkansas is one of America’s booming information technology centers, which is one of the many reasons that the world’s major information technology players have chosen to locate in Little Rock and host the nucleus of their network operations within the region.

Military With an annual economic impact of over $900 million, the region boasts the world’s premier C-130 Air Force base and an Arkansas National Guard site providing facilities and weapons ranges for all branches of the U.S. armed forces and civil law enforcement agencies.

Global Nonproﬁts With the world’s only Master’s degree in Public Service, strong foreign direct capital investment, and institutions like Arkansas Children’s Hospital (www.archildrens.org) and the University of Arkansas for Medical Sciences (www.uams.edu) bringing in world-class talent, Little Rock has become a hub for the location of global nonproﬁt headquarters.

Universities and Colleges There are 20 institutions of higher education in the Metro Little Rock region totaling approximately 70,000 enrolled students, and 31 percent of Pulaski County’s population has a Bachelor’s degree or higher. The Arkansas Association of Two-Year Colleges works in connection with business to create degree programs tailored to serve the needs of area employers.

To learn more, visit www.metrolittlerockalliance.com or email jdean@littlerockchamber.com or call Joey Dean at 501-377-6006

SOUTH KENTUCKY

KENTUCKY

ALABAMA

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

Principal Manufacturing Industries

Principal Manufacturing Industries (Percentage of Employment)

(Percentage of Employment)

Transportation Equipment

20.4%

Motor Vehicles, Bodies & Trailers & Parts 20.3%

Food

13.3%

Food

11.9%

Fabricated Metal Products

9.9%

Fabricated Metal Products

8.7%

Primary Metals

7.7%

Machinery

7.8%

LOUISIANA

Textile Mills & Products & Apparel

6.2%

Plastic & Rubber Products

6.3%

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

Plastics & Rubber Products

Chemicals

5.8%

Primary Metals

5.2%

Wood Products

5.4%

Paper

5.1%

Printing & Related Support Activities

4.5%

Machinery

4.5%

4.3%

Chemicals

4.1%

Electrical Equipment and Appliances

4.2%

Computer & Electronic Products

Wood Products

MISSISSIPPI

4.1%

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

Furniture and Related Products

3.4%

Other Manufacturing Industries

10.1%

(Percentage of Employment)

Food Products

established employer, with its growing Georgetown assembly plant. Later in 2015 the company plans to begin assembling its Lexus ES 350 there, representing a $531 million expansion worth some 750 new jobs. The presence of Toyota in Georgetown, Ford in Louisville, plus significant automotive assembly in neighboring Tennessee and Indiana and other nearby states has brought a boom in automotive suppliers, too. Examples include Aleris Corp., which just launched a $350 million expansion at its aluminum rolling mill in Lewisport.

AREADEVELOPMENT

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LOUISIANA (Percentage of Employment)

Principal Manufacturing Industries

KEY SECTORS: Aerospace and defense; automotive; chemicals, plastics, and rubber; transportation, distribution and logistics; energy technology; food and agribusiness; healthcare and medical devices; business services (HQs, R&D, data centers, and call centers); manufacturing; and entertainment and media

21.0%

Principal Manufacturing Industries

ARKANSAS TENNESSEE

Other Manufacturing Industries

Fabricated Metals

28.9% 9.3%

Transportation Equipment

8.1%

Machinery

7.2%

Rubber & Plastics

7.0%

Wood Products

5.9%

Paper

6.6%

Electrical Equipment & Appliances

3.8%

Primary Metals

6.7%

Furniture

2.2%

Computers & Electronics

1.9%

Other Manufacturing Industries

Chemicals

49.0%

Petroleum & Coal Products

27.4%

Food, Beverage, Tobacco

5.6%

Machinery

4.8%

Fabricated Metal Products

4.4%

Paper

3.8%

Other Transportation Equipment

3.6%

Nonmetallic Mineral Products

1.5%

12.4%

800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com

Alabama • Arkansas • Kentucky • Louisiana • Mississippi • Tennessee

Many of Kentucky’s top job-creating investments last year were in manufacturing, with many related to vehicles in one way or another. Even so, the state’s 4,000 manufacturers that together employ nearly a quarter million people manufacture lots of other things — everything from Tempur-Pedic mattresses to Pop-Tarts. The second-biggest manufacturing employer is General Electric in Louisville, and food-related manufacturing also has a significant impact. Outside of manufacturing, there’s plenty of good news as well. Examples include Computershare Inc.’s plans to open a facility in Jefferson County, Kentucky. The company specializes in financial services and investor communications, and plans to create up to 250 new jobs. And an eBay Enterprise fulfillment center in Walton is expanding and adding 300 jobs.

ette, with a promise of 245 new jobs. Louisiana is making noteworthy strides as a business location, as noted by its rise in the Forbes rankings of the “Best States for Business and Careers.” Back in 2008, it was almost at the bottom of the list, in slot number 49, but this year it’s all the way

D I S C OV E R why

Lexington is a great place for business.

Energy-Related Investments In 2013, the U.S. Chamber of Commerce named Louisiana the top export state in the nation, with the secondbiggest prospects for export growth. The state has been among the leaders in pushing the nation’s jobless rate downward, thanks in large part to growth in the energy sector. Consider the October announcement by Sasol Ltd. to develop an $8.1 billion petrochemical complex near its existing Westlake, Louisiana, facilities. The new investment is to include an ethane cracker and six chemical manufacturing plants, and promises some 500 new direct jobs and about five times as many indirect jobs. And then there’s the plan from NFR BioEnergy, investing $312 million to install biorefineries at more than 10 sugar-refining hubs in South Louisiana. The 450-job plan is to convert sugarcane waste into hardened energy pellets to fuel power plants. But energy and petrochemicals aren’t everything in Louisiana. Among other recent announcements is a 425-job headline involving Renaissance RX, a biomedical company making an $8 million capital investment in a new headquarters in New Orleans. And Perficient plans a software development center in Lafay-

AREA0368.indd 1

No. 24

WORLD’S SMARTEST CITIES –National Geographic, 2014

Lexington, Kentucky welcomes visionaries, dreamers, mavericks – businessmen and women who want to prosper, innovate, create opportunities, change lives and build communities. For more reasons to locate your business in Lexington contact Gina H. Greathouse at ggreathouse@commercelexington.com or 800-341-1100.

330 E. Main St., Suite 205, Lexington, KY 40507 LocateInLexington.com

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SOUTH ARKANSAS — BASIC BUSINESS TAXES MISSISSIPPI Principal Manufacturing Industries (Percentage of Employment)

Furniture and Wood Products

19.8%

Transportation Equipment Manufacturing 17.9% Food & Beverage

16.6%

Petroleum, Chemicals & Plastics

10.4%

Primary & Fabricated Metals

TENNESSEE Principal Manufacturing Industries (Percentage of Employment)

Transportation Equipment

20.7%

Fabricated Metals

11.0%

Food Products

10.4%

Machinery

8.7%

9.4%

Chemicals

8.1%

Machinery

8.5%

Rubber & Plastic Products

6.5%

Computers & Electrical

6.5%

Other Manufacturing Industries

34.6%

10.9%

ALABAMA — 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; cities and 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

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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 46.53

up to 29, the second-best improvement. The magazine credits an improved business climate, a better regulatory environment, and improved business costs.

Auto Suppliers Taking Note Mississippi is nearly as manufacturing-intensive as Arkansas and Kentucky, with some 12 percent of the workforce directly engaged in manufacturing, according to the Mississippi Manufacturers Association. And as part of the South’s automotive belt, it’s no surprise to learn that a lot of that activity involves motor vehicle manufacturing. The opening of a Nissan plant a decade or so ago assured that status, and Toyota arrived on the scene in the years since. With big assembly plants in the state and not far across state lines, automotive sup-

pliers have been driving into the state as well. One of the biggest announcements came in 2013, when Yokohama Tire Corp. launched a $300 million investment promising 500 jobs at the outset and as many as 2,000 further down the road. Grammer Inc., a German-owned supplier of automotive interiors and seating systems for commercial vehicles, picked Tupelo for a 650-job facility. And Feuer Powertrain chose a Mississippi site for its first U.S. manufacturing operations, with 300 new jobs. But automotive is just part of the story. Among the nonautomotive headlines in recent months: Posturecraft Mattress Co.’s move to Mississippi; a 250-job facility opened last year by Aurora Flight Sciences; a $6.7 million manufacturing and distribution facility from Aluma-Form, a power distribution products maker; and a

800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com

KENTUCKY — BASIC BUSINESS TAXES

MISSISSIPPI — 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

Corporate Income Tax: 3 percent on first $5,000; 4 percent on second $5,000; 5 percent for income over $10,000 (exemptions)

Corporation Franchise Tax: None

Corporate Franchise Tax: $2.50 for each $1,000 of capital invested in the state

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

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 Corporate Income Tax: 6.5 percent

LOUISIANA — BASIC BUSINESS TAXES

Sales and Use Tax: 7 percent state (food 5 percent) and 1.5–2.75 percent local

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

Property Tax: Local only; 2013 median rate per $100 of assessed value for counties was $2.31 (TN Comptroller of the Treasury)

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

Unemployment Insurance Tax: Taxable wage base: $9,000; new employer rate: 2.7 percent; experienced rate range: 0.1 percent–10 percent

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 certain services in the state; 0 to 7 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)

plan by Green Circle Bio Energy to make wood pellets to fuel electric generating facilities. All in all, the last three years have seen nearly 16,000 new jobs announced and promises of more than $2 billion in capital

investment.

Drawing FDI As with the other states in this region, the economy of Tennessee benefits tremendously from the booming

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

automotive industry, which has accounted for about an eighth of all of the new jobs created since the Great Recession and a third or more of the manufacturing sector’s growth in output. Growth is likely to keep on rolling, too. For example, Volkswagen is gearing up for a $900 million expansion of its Chattanooga plant; Nissan has been adding jobs; General Motors is pumping $185 million into its Spring Hill plant to make small gas engines; and Hankook Tire Co. has begun construction of its first U.S. manufacturing facility, which is to open in 2016 and employ as many as 1,800 people.

Another announcement involving a huge number of jobs came from Under Armour, which is planning a millionsquare-foot, $100 million distribution and warehousing facility that will employ up to 1,500 people as it grows over the next five years. The state has won the hearts of companies around the world, according to the IBM Institute for Business Value, which recently declared Tennessee was the top state in the nation last year for foreign direct investment job commitments. There were more than 50 such commitments, promising more than 9,200 jobs. •••• — Steve Stackhouse

AREA DEVELOPMENT | 2015 Annual Directory 77

SOUTH ATLANTIC Florida • Georgia North Carolina South Carolina • Virginia West Virginia

in North Charleston. In July, tthe company announced it would make the longest vversion of its Dreamliner, the 787-10, in North Charleston. Boeing had already been talking earlier about expansion plans at that location, with as many as 2,000 new jobs in tthe pipeline in the next five or six years.

Success Across Multiple Industries

ECONOMY SIZZLING IN THE SOUTH ATLANTIC STATES WITH NUMEROUS NEW AND EXPANDED FACILITIES BEING ANNOUNCED IN 2013 AND 2014, THE SOUTH ATLANTIC REGION’S STRING OF SUCCESS STORIES IS CONTINUING. Everyone knows it’s hot along the South Atlantic, home of some of the country’s most popular beaches.

But what’s really sizzling is the economy in the states that make up this region. The business news is full of reports of new jobs, and these states have been taking home multiple economic development honors. Among many examples, Georgia and South Carolina took home Gold Shovel awards in Area Development’s most recent ranking, while Florida and North Carolina were honored with Silver Shovel awards. These and other recognitions have been based in large part on 2013 successes, but the positive news in the region has continued into 2014. For example, South Carolina has aspirations to be a global aerospace center, and those aspirations have continued to take shape as plans have emerged for Boeing’s facility

But Boeing is just one of many positive news stories from South Carolina, across multiple industries. Examples include the $353 million plan to develop the Haile Gold Mine in Kershaw, where 270 new jobs could result. There’s also the planned 400-job manufacturing facility for Wyman-Gordon, maker of large titanium and super alloy forgings for aerospace and power-generation users. Even bigger South Carolina job creation is promised in York County, where independent broker/dealer LPL Financial LLC plans a new

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

Yes Yes Yes Yes Yes No

COLLEGE GRADUATES STATE

POPULATION

LABOR FORCE

Florida

19,552,860

9,431,471

Georgia

9,992,167

4,767,323

North Carolina 9,861,952

4,645,687

South Carolina 4,774,839

2,035,751

Virginia

8,260,405

4,240,111

West Virginia

1,854,304

796,200

(Age 25 and over)*

Florida Georgia North Carolina South Carolina Virginia West Virginia

26.2% 27.8% 26.8% 24.6% 34.7% 17.9%

*Bachelor's degree or higher, percent of persons age 25+, 2008-2012 Source: U.S. Census Bureau, ACS, revised July 2014

regional headquarters that’ll mean $150 million in investments through 2022, along with 3,000 jobs. That June announcement came on the very same day healthcare service provider The Lash Group announced plans for a new, 2,400-job, national headquarters campus in York County. Also on that day, Giti Tire revealed plans for its first North American manufacturing facility in Chester County, with a promise of a $560 million investment and 1,700 new jobs over the next decade. Georgia also has spun its great 2013 into a stellar 2014. Last year was when homebuilder PulteGroup announced that its home base was moving to metropolitan Atlanta, bringing hundreds of jobs. Dalton-based Engineered Floors shared plans to invest $450 million in Whitfield and Murray counties, generating 2,000 new jobs over five years. And 2013 saw athenahealth announce an investment worth about 500 high-paying jobs. This year Verizon Wireless unveiled plans to create 400 jobs in customer service, retail, and network and information technology. The hits kept on coming in as the year progressed. Examples include Greenway Health’s approximately 150 healthcare IT jobs in metro Atlanta; up to 700 jobs courtesy of Unisys; some 650 Kubota Manufacturing of America jobs at its headquarters in the Georgia community of Gainesville; and 700 jobs with Acuity Brands, provider of lighting solutions for indoor and outdoor applications.

Aerospace Taking Off Things are literally taking

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SOUTH ATLANTIC FLORIDA

SOUTH CAROLINA

TRADITIONAL INDUSTRIES: Electronics and electronic equipment, printing and publishing, fabricated metals, industrial machinery and equipment, lumber and wood products, business services, tourism, agriculture EXPANDING INDUSTRIES: Aviation/aerospace, life sciences, manufacturing, defense/homeland security, information technology, financial/ professional services, logistics/distribution, cleantech

TRADITIONAL INDUSTRIES: Automotive-related industries, forestry and wood products, metalworking, plastics, textiles, agriculture, tourism EXPANDING INDUSTRIES: Advanced materials, agribusiness, aviation and aerospace, automotive, rubber, renewable energy industries

VIRGINIA GEORGIA 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

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, cyber security, modeling and simulation, data centers, finance and insurance, corporate headquarters

NORTH CAROLINA TRADITIONAL INDUSTRIES: Agriculture, textiles and apparel, wood products, furniture 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

WEST VIRGINIA 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

Choose Campbell County for Business Campbell County offers a comprehensive selection of commercial building sites, including Seneca Commerce Park and Dearing Ford Business & Manufacturing Center. Visit www.campbellvirginia.com or contact our office for more information.

Campbell County Department of Economic Development www.campbellvirginia.com 434.592.9595 econdev@campbellcountyva.gov

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MANUFACTURE SUCCESS Take a closer look at Winston-Salem, Forsyth County and you’ll see what other advanced manufacturing companies already know—this is where you build success. EASY ACCESS TO MAJOR MARKETS

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SOUTH ATLANTIC FLORIDA

NORTH CAROLINA

VIRGINIA

Principal Manufacturing Industries

(Percentage of Employment)

Computer & Electronic Products

12.7%

Transportation Equipment

11.4%

Fabricated Metal Products

10.2%

Food Beverage & Tobacco Products

14.1%

Transportation Equipment

18.3%

Textiles & Apparel

9.6%

Food Products

12.4%

Chemicals

9.6%

Fabricated Metal Products

7.9%

8.1%

Machinery

6.8%

Computer & Electronic Products

7.5%

Plastic & Rubber Products

6.8%

Furniture & Related Products

Chemicals

6.4%

7.5%

Wood Products

5.8%

Rubber & Plastic Products

7.0%

Computer & Electronic Products

5.0%

Printing & Related Support Activities

4.5%

Furniture & Related Products

4.1%

Food

9.2%

Machinery

7.4%

Chemicals

5.8%

Nonmetallic Mineral Products

5.4%

Printing & Related Support Activities

5.3%

Machinery

7.0%

3.7%

Transportation Equipment

6.7%

Electrical Equipment & Appliances

4.8%

Wood Products

3.7%

Plastics & Rubber Products Other Manufacturing Industries

28.9%

Other Manufacturing Industries

GEORGIA

WEST VIRGINIA

(Percentage of Employment)

17.2%

Textile Mills & Products

12.6%

Transportation Equipment

12.8%

Fabricated Metals

7.3%

Chemicals

5.4%

22.1%

14.4%

Principal Manufacturing Industries

Food

Other Manufacturing Industries

SOUTH CAROLINA Principal Manufacturing Industries (Percentage of Employment)

Vehicles

40.0%

Machinery

21.0%

Principal Manufacturing Industries (Percentage of Employment)

Chemicals & Plastics

26.4%

Wood Products

14.1%

Machinery & Transportation Equipment

11.4%

Rubber

9.0%

Electrical Machinery

7.0%

Fabricated Metal Products

11.4%

Plastics and Rubber Products

5.5%

Plastics

6.0%

Primary Metals

9.4%

Paper Products

5.1%

Aircraft/Spacecraft

5.0%

Food & Beverages

7.6%

4.4%

Paper/Paperboard

4.0%

Mineral Products

6.1%

Organic Chemicals

3.0%

Other Manufacturing Industries

Wood Products Other Manufacturing Industries

29.7%

off in Florida, where there’s plenty of life in the space and aviation sector. Brazilian plane-making giant Embraer recently broke ground on a new assembly facility at Melbourne International

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Optical/ Medical Instruments

3.0%

Woodpulp, etc.

2.0%

Airport that will make Legacy 450 and 500 planes and add 600 jobs. “We are doubling the size of our Executive Jets

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13.6%

campus in the U.S.,” said company President and CEO Frederico Fleury Curado at the groundbreaking event, noting that there’s already one assembly line there, and that the company had recently

launched its Embraer Engineering and Technology Center, its first engineering center outside Brazil. Meanwhile, Northrop Grumman Corp. plans to create up to 1,800 jobs through expansions at its campus in Melbourne. As for space, the state is rebounding well from the 2011 shutdown of the space shuttle program, building a private space program that includes such players as SpaceX, Stratolaunch, and Sierra Nevada. And Boeing this year said it would convert a former space shuttle facility in order to land, refurbish, and relaunch X-37B reusable unmanned spacecraft. Florida’s progress can be found across multiple industries. More than a hundred new jobs will result when Mitsubishi Hitachi Power Systems Americas establishes its North American headquarters in Lake Mary. In the financialservices sector, the world’s largest credit union is making a gigantic investment in Pensacola. Navy Federal Credit Union’s $350 million investment, announced in October, promises to create 5,000 jobs. North Carolina’s diverse economy shows up in its wide range of economic development wins. Last year, a lot of job growth took place in professional/business services and financial services, with announcements from MetLife (2,600 jobs in Charlotte and Cary) and Red Ventures (600 jobs in Mecklenburg County). And there were more than 40 new manufacturing facilities announced across the state last year.

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Florida • Georgia • North Carolina • South Carolina • Virginia West Virginia

FLORIDA — 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

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

NORTH CAROLINA — BASIC BUSINESS TAXES Corporate Income Tax: 6 percent in 2014; rate will drop to 5 percent in 2015 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 for a total of 7 percent: 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. Mecklenburg County has a rate of 7.25 percent due to an additional 0.5 percent transit tax. Durham and Orange counties levy an additional 0.5 percent public transit tax, which makes the counties total sales and use tax rate 7.50 percent Property Tax: Real and personal property is assessed on a local level at 100 percent of appraised value. The state of North Carolina does not charge real and personal property tax on a state level. Real property is required to be revalued every eight years, although counties may revalue earlier

Property Tax: Millage rates vary by county and city

NAMED TOP STATE FOR BUSINESS BY AREA DEVELOPMENT, CNBC AND SITE SELECTION. These latest honors only confirmed what everyone at Georgia Power already knew: Our state is a great place for business. If you’re considering relocating or expanding here, our Economic Development team will work closely with the Georgia Department of Economic Development to help you with labor analysis, market data, available properties – whatever you need – at no charge. For a closer look at all Georgia has to offer, visit SelectGeorgia.com.

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SOUTH ATLANTIC SOUTH CAROLINA — 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 are exempt; fee-in-lieu of property taxes may be offered at the discretion of a county and can reduce property tax 43–62 percent

This past fall, it was global IT services provider HCL Technologies Ltd. promising 1,237 jobs at an expansion in Cary. Another 603 software-related jobs were part of a September announcement from AvidXchange, which plans to expand its headquarters operations in Charlotte. And the bio-pharma sector cheered for a 236-job announcement from Argos Therapeutics, expanding in Durham County. The new public-private Economic Development Partnership of North Carolina (EDPNC) helped bring the Argos project to fruition. “What’s different about our approach is that we’re

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WEST VIRGINIA — BASIC BUSINESS TAXES Corporation Net Income Tax: The corporation net income tax is imposed annually at a 2014 rate of 6.5 percent of federal taxable income allocated and apportioned to West Virginia Business Franchise Tax: The tax base is the net worth of the corporation or partnership as determined for federal income tax purposes. The 2014 tax rate is 0.10 percent of the tax base apportioned to West Virginia or $50, whichever is greater. The tax 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 service 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 nonutility property is set locally by elected county officials

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Florida • Georgia • North Carolina • South Carolina • Virginia West Virginia

VIRGINIA — BASIC BUSINESS TAXES Corporate Income Tax: 6 percent of federal taxable income, with modifications Sales and Use Tax: 5.3 percent (4.3 percent state plus 1 percent local tax) in all counties and cities; there is an additional 0.7 percent state tax imposed in the localities that make up Northern Virginia and Hampton Roads. 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

marshaling public and private resources to help in North Carolina’s business recruiting efforts,” said EDPNC Chair John Lassiter, president of Carolina Legal Staffing, in a recent press release.

Mountain State Business Index from West Virginia University’s Bureau of Business and Economic Research has recorded seven consecutive months of growth, tracking seven economic indicators that reveal economic expansions and contractions. Proactive moves such as phasing out the business franchise tax are creating optimism, and catching the attention of such groups as The Tax Foundation, which bumped West Virginia up the State Business Tax Climate Index significantly — from 37 a few years ago to 21 now. The jobless rates in five of these six states have been heading downward in the past year, in some cases dramatically. South Carolina’s rate was 6.6 percent in September 2014, while North Carolina’s was 6.7 percent, both down about a point and a half from a year earlier. Florida’s 6.1 percent rate was down nearly half a percent, as was Georgia’s 7.9 percent rate. Virginia measured 5.5 percent unemployed in September, down a tenth of a percent. Only West Virginia, at 6.6 percent, had slightly higher unemployment this year compared to last. •••• — Steve Stackhouse

Foreign Investment In June, Virginia landed a $2 billion advanced manufacturing operation planned by Shandong Tranlin Paper Co., a Chinese pulp and paper company. The Chesterfield County project is to create 2,000 jobs in the next five or six years. The company’s Chairman and President Hongfa Li cited the state’s “passion for foreign investment” among the attractions. That huge win was joined in 2014 by quite a few other announcements of note. Examples include the $149.7 million headquarters operation in Arlington County announced by CEB, a member-based advisory company that plans to create 800 jobs when it moves in. Another 500 jobs are on the way from automotive supplier Continental, which is investing about $150 million to expand its operation in Newport News; plus 376 jobs promised by UniTao Pharmaceuticals, a company with Shanghai ownership that’s moving into an existing space in Petersburg. West Virginia is looking ahead to healthy economic times in 2015. The

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AREA DEVELOPMENT | 2015 Annual Directory 85 22/11/14 8:05 PM

SOUTHWEST Arizona • New Mexico Oklahoma • Texas

T The well-known investment disclaimer states that past performance is not indicative of future results. It stands to reaf son that just because Texas has led the nation in job growth for four years in a row, that doesn’t f mean growth will continue to sizzle in the future. And yet, analysts expect that it will. The same rosy outlook holds true in Arizona, and there are healthy A jobs reports in New Mexico and j Oklahoma as well.

A ROSY ECONOMIC OUTLOOK

Among the “Best States for Business”

WITH HEALTHY JOBS REPORTS AND NUMEROUS ANNOUNCEMENTS FOR NEW AND EXPANDED FACILITIES, THE SOUTHWEST STATES WILL CONTINUE THEIR ECONOMIC GROWTH.

As Forbes noted in November, Texas is leading the

STATE

POPULATION

LABOR FORCE

Arizona

6,581,054

3,033,285

RIGHT TO WORK Arizona New Mexico Oklahoma Texas

Yes No Yes Yes

COLLEGE GRADUATES (Age 25 and over)*

New Mexico 2,085,287

926,242

Oklahoma

3,850,568

1,816,794

Texas

26,448,198

13,015,275

Arizona New Mexico Oklahoma Texas

26.6% 25.6% 23.2% 26.3%

*Bachelor's degree or higher, percent of persons age 25+, 2008-2012 Source: U.S. Census Bureau, ACS, revised July 2014

1 86 AREA0211.indd AREADEVELOPMENT

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way in both current economic climate and expected future growth. The magazine cites statistics from Moody’s Analytics, predicting that Texas will record 2.7 percent annual job growth during the next five years, faster than any state. The rankings were part of the magazine’s “Best States for Business” feature, in which Texas placed sixth overall. Texas also earned a Gold Shovel award from Area Development earlier this year, based on its 2013 job growth of a quarter million jobs, increases in manufacturing employment topping 7 percent since 2010, and leadership in shipment of manufactured goods. There were some big headlines in 2013 in Texas, and even bigger ones in 2014. The energy sector is fueling a lot of the Texas growth, to be sure. Everybody who is anybody in energy has set up shop in Texas, and there’s more refining and chemical production in Texas than anywhere else in the country. But that’s just a piece of the puzzle. The Gold Shovel Award also spotlighted growth in everything from professional/

800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com 20/12/13 3:32 PM

Arizona • New Mexico • Oklahoma • Texas

ARIZONA

OKLAHOMA

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

TRADITIONAL INDUSTRIES: Manufacturing, energy EXPANDING INDUSTRIES: Aerospace and defense (incl. unmanned aerial systems); energy (incl. compressed natural gas vehicles, distribution, heat exchangers); 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

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

business services and education/health services to IT, mining, manufacturing, and the construction sector that all of this development tends to ignite. Consider that Toyota earlier this year decided to move its North American headquarters from California to the Texas community of Plano, which will mean about 4,000 jobs coming in, not just from California but also some from New York and Kentucky. Charles Schwab is making a similar move, along with Occidental Petroleum and Raytheon. Apple is in the midst of doubling its workforce in Austin, which will add almost as many jobs as the big Toyota announcement. And SpaceX recently broke ground on a commercial launch facility near Boca Chica Beach. Like so many other Lone Star State projects, this one got a boost from the Texas Enterprise Fund, along with dollars from the Spaceport Trust Fund. The facility will launch commercial satellites into space, and it represents a vote of confidence from one of the biggest stars of the tech-focused business world, CEO Elon Musk. “We will begin an investment in South

TEXAS 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

AMARILLO WILL BLOW YOU AWAY Over the past 24 years, more than 100 companies have chosen Amarillo. To see who and why, visit: amarilloedc.com

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SOUTHWEST diverse growth across a lot of sectors, from finance/insurance to IT, aerospace, advanced manufacturing, renewable energy, and biosciences. Examples of the success include a 5,000-job regional headquarters for which State Farm Insurance chose a Tempe site, and a Nationstar Mortgage project promising 1,200 Diverse Growth jobs in Chandler. Arizona picked up an Area Development Silver Shovel award As in Texas, the Arizona story isn’t just about great past in 2014. That was based on an excellent 2013, which saw headlines, but also the promise of future growth. Forbes ranks the state fifth in growth prospects, and the state has built upon its awardwinning 2013 growth with a healthy 2014. Cloud-based human resources technology provider Zenefits launched a Scottsdale office in the fall that promises to grow 1,300 jobs, and Orion Health opened its North American R&D center there. Chandler is the site of General Motors’ fourth OKC is the #1 city for national IT center, which opened with starting a business 500 workers and is on its way to a -Kiplinger, Oct. 2014 thousand. Diversity also is the key to prosperity in New Mexico. In all, at least a dozen new manufacturers chose to OKC OKC among among top top 10 10 locate or expand in the state in 2014. best best places places for for business business Recent announcements there include --Forbes, Forbes, July July 2014 2014 300 jobs at Global Fashion Technologies, a maker of recycled fibers that’s bringing headquarters and manufacturing operations to Belen. “New Mexico’s much improved business environment was a big part of our A top 10 fastest-growing city decision to locate here,” CEO Tom --CNN CNN Money Money,, March March 2014 2014 Witthuhn explained in making the announcement. Add to that the 300 jobs that California-based food producer In paddlesports, momentum is a powerful Flagship Food Group is bringing to Albuquerque. Franco Whole Foods, thing - and we’ve got it in Oklahoma City. But we’re not just also from California, is expanding to coasting along. We’re doing all we can to accelerate our rise, from Las Cruces. DHF Technical Products a new set of debt-free public amenities to world-class economic picked a site in Rio Rancho, and Santa Teresa is benefiting from the decision development programs and more. Interested in riding the wave? by Southwest Steel Coil, a California Come join us. After all, it’s easier to find success when you’re rowing steel manufacturer, to more than with the current. double its workforce in New Mexico. Beyond manufacturing, there were announcements such as the bilingual call center Comcast is adding in early 2015 in Albuquerque. That’s worth Explore Oklahoma City’s digital magazine 450 jobs, and it essentially doubles and channel at GreaterOKC.tv the company’s workforce in New Mexico. Texas that will create hundreds of jobs and over time contribute hundreds of millions of dollars into the local economy,” Musk promised at the groundbreaking.

GROWING FAST IN OKC

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Arizona • New Mexico • Oklahoma • Texas

NEW MEXICO

ARIZONA

OKLAHOMA

TEXAS

Principal Manufacturing Industries

(Percentage of Employment)

Computer & Electronic Products

31.8%

Transportation Equipment

20.1%

Chemical Products

7.9%

Food & Beverage

7.1%

Fabricated Metal Products Other Manufacturing Industries

5.4% 27.7%

Computer & Electronic Products

24.5%

Food Processing

19.4%

Fabricated Metal Products

9.4%

Nonmetallic Mineral Products

5.7%

Transportation Equipment

4.7%

Other Manufacturing Industries

36.3%

Principal Manufacturing Industries (Percentage of Employment)

Machinery

19.8%

Metal & Fabricated Metal Products

19.1%

Aerospace/Transportation Machinery 19.0% Food Processing

11.5%

Petroleum, Rubber & Plastics Products

10.4%

Electrical & Electronic Products

5.1%

Wood & Paper Products

5.0%

Other Manufacturing Industries

10.1%

Fabricated Metal Products

16.0%

Machinery (Except Electrical)

12.2%

Computer & Electronic Products

11.3%

Transportation Equipment

10.7%

Food Products

9.4%

Chemical & Allied Products

8.8%

Plastic & Rubber Products

4.4%

Nonmetallic Mineral Products

3.9%

Other Manufacturing Industries

23.4%

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SOUTHWEST Jobs Incentives In Oklahoma, the Quality Jobs Program has a long list of success stories, with more added every month. Some of the most recent headlines have come from T.D. Williamson, a pipeline equipment company adding 230 jobs in Tulsa; Midstates Petroleum, an independent exploration and production company that’s bringing about that many new jobs to Tulsa; American Energy Management Services, pledging 525 jobs in an Okla-

homa City expansion; and Enable Midstream Services, a management services company expanding in Oklahoma City with plans for more than 360 new jobs. In all, according to the Oklahoma Department of Commerce, some 30,100 new jobs came to the state in 2013, more private businesses opened than closed, and per capita personal income has grown by nearly 5 percent in the past five years. On the Forbes list of “Best States for Business,” Oklahoma lands in the 10th position.

Compared to this time last year, the region’s jobless rates have declined to 4.7 percent in Oklahoma, 5.2 percent in Texas, and 6.9 percent in Arizona, and the rate in New Mexico has held steady at 6.6 percent. The gains in the gross domestic product in 2013 were 4.2 percent in Oklahoma, 3.7 percent in Texas, 1.5 percent in New Mexico, and 1.1 percent in Arizona, according to the U.S. Bureau of Economic Analysis. •••• — Steve Stackhouse

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29201 Quinn Road, Suite B s-s Tomball, TX 77375 s-s 281.401.4086 s-s 888.401.7322 s-s tomballtxedc.org

90AREA0067.indd AREADEVELOPMENT 1

FOR FREE SITE INFORMATION, CALL

800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com

5/3/13 11:08 AM

ARIZONA — BASIC BUSINESS TAXES Corporate Income Tax: 6.5 percent (2015: 6.0 percent; 2016: 5.5 percent; 2017: 4.9 percent) 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 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 6.9 percent of income over $1 million with a scheduled phased tax rate reduction intended to bring the tax rate to 5.9 percent of excess over $500,000 in 2018, while maintaining the 4.8 percent on the first $500,00 of net income 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 Inventory Tax: There is no state inventory tax

OKLAHOMA — BASIC BUSINESS TAXES 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

TEXAS — BASIC BUSINESS TAXES 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 on gross receipts less compensation or cost of goods sold. (Retailers and wholesalers have a rate of 0.5 percent.) Sole proprietorships and general partnerships are exempt. Businesses with revenue under $1,000,000 are also exempt Sales and Use Tax: 6.25 percent on retail sales of tangible personal property and certain labor and services; cities, counties, and transit authorities may add to the sales tax up to a maximum combined state and local rate of 8.25 percent, with certain manufacturing exemptions Property (ad valorem) Tax: No state property tax; real and tangible personal property is taxed at varying rates by local government and special taxing districts; local taxing entities have the option to exempt freeport goods

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AREA DEVELOPMENT | 2015 Annual Directory 91

MOUNTAIN Colorado • Idaho Montana • Nevada • Utah Wyoming

$3.5 billion in manufacturing equipment and real property in Nevada. Tesla is estimated to bring nearly $100 billion in economic impact to the Silver State over the next 20 years.

Economic Diversification

HIGHLIGHTING INNOVATION AND PIONEER INDUSTRIES STATES IN THE MOUNTAIN REGION ARE PULLING OUT THE STOPS TO ATTRACT ADVANCED TECHNOLOGY COMPANIES. A Huge Incentives Deal The search was intense and the anticipation was high, but in the end Tesla Motors selected Nevada for its Tesla gigafactory, a three-story,

5+-million-square-foot facility that will be the world’s largest and most advanced battery factory. “Together with Panasonic and other partners, we look forward to realizing the full potential of this project,” said Tesla Motors Chairman and CEO Elon Musk upon thanking Governor Sandoval and Nevada legislators for partnering with Tesla to bring the gigafactory to the state. To nab the deal, Tesla was offered a $1.3 billion incentives package, including tax breaks, the largest part of which is a 20-year, 100 percent sales tax abatement and a 100 percent abatement on real and personal property taxes for 10 years. In exchange, the company must invest a minimum of

STATE

POPULATION

LABOR FORCE

Colorado

5,192,076

2,804,659

Idaho

1,612,136

776,000

Montana

1,005,141

507,863

Nevada

2,800,967

1,372,996

Utah

2,900,872

1,337,300

Wyoming

582,658

316,155

Wyoming has not landed a deal the scale of Tesla, but is panning for gold. Its Business Ready Community (BRC) program, introduced in 2003, continues to actively target Wyoming communities trying to diversify their economic bases, leverage private investments, foster job creation, and enhance quality of life. The program is unique in that it invests in publicly owned economic development infrastructure. Businesses partner with local governments to identify infrastructure needed to expand or relocate in the community, such as road, water, sewer, or the leasing of a building. Local governments then apply to the Business Council for grant and/or loan funds. In

RIGHT TO WORK Colorado Idaho Montana Nevada Utah Wyoming

Modified Yes No Yes Yes Yes

COLLEGE GRADUATES (Age 25 and over)*

AREADEVELOPMENT

FOR FREE SITE INFORMATION, CALL

Colorado Idaho Montana Nevada Utah Wyoming

36.7% 24.7% 28.5% 22.2% 29.9% 24.3%

*Bachelor's degree or higher, percent of persons age 25+, 2008-2012 Source: U.S. Census Bureau, ACS, revised July 2014

the case of where a building is purchased or constructed with grant funds, a business may work out an option to purchase the facility through the local government. Oftentimes, lease payments are applied to the purchase price. In addition, Wyoming offers a Managed Data Center Cost Reduction Grant through the BRC program. The grant fund is used to buy down the cost of power and broadband. Reducing these costs allows data centers to expand their operations sooner, while investing in job creation and capital expenses. Last year, Laramie County received $2,250,000 from this program to help Green House Data reduce its broadband, utility, and electrical costs and assist in its expansion. The Cheyenne-headquartered company outgrew its 10,000-square-foot co-location and cloud hosting data center facility in five years. The grant made it possible to build a 35,000-square-foot facility, which was completed this year.

Attracting Technology Investment Utah is already home to Google, Adobe, and eBay. But the pioneer companies keep coming. In fact, technology investments achieved new records in 2014. Spurring Utah’s growth is a splurge in venture capital investment, which hit $405.8 million by first quarter this year. Also this year, Qualtrics, a software-as-a-service company, secured $150 million in venture capital financing. This is on top of nearly $11 million the company received from the Governor’s Office of Economic Development (GOED)

800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com

Colorado • Idaho • Montana • Nevada • Utah • Wyoming

COLORADO

NEVADA

TRADITIONAL INDUSTRIES: Healthcare and social services, accommodation and food services, educational services, professional and technical services EXPANDING INDUSTRIES: Mining, quarrying, oil and gas extraction; educational services; finance and insurance; healthcare and social services

TRADITIONAL INDUSTRIES: Mining, tourism and gaming, agriculture EXPANDING INDUSTRIES: Aerospace defense; business IT ecosystems; clean energy; health and medical services; logistics and operations; mining; manufacturing; tourism, entertainment, and gaming

IDAHO

UTAH

TRADITIONAL INDUSTRIES: Agriculture and food processing, manufacturing, high-tech, wood products EXPANDING INDUSTRIES: Health services, business services, semiconductor/other electronic manufacturing, retail trades, construction, alternative/renewable energy, aeronautics/aerospace, firearms, recreational technology, food processing, software, advanced manufacturing

TRADITIONAL INDUSTRIES: Manufacturing, mining, government, agriculture EXPANDING INDUSTRIES: Life sciences, software/IT, aerospace/defense, financial services, energy, healthcare, outdoor products/recreation, advanced composites

MONTANA

WYOMING

TRADITIONAL INDUSTRIES: Natural resources, agriculture, tourism, manufacturing, energy EXPANDING INDUSTRIES: Software, aerospace, value-added agricultural products, telecommunications, research and development, professional services, bioscience

TRADITIONAL INDUSTRIES: Mining, tourism, transportation, agriculture EXPANDING INDUSTRIES: Renewable energy, natural resources and mining, construction, wholesale trade, transportation, warehousing, utilities, data and information

Economic Development Tax Increment Financing (EDTIF) program. EDTIF offers a post-performance refundable tax credit for up to 30 percent of new state tax revenues over the life of the project — typically five to 10 years. In Qualtrics’ case, the program covered 25 percent of new state tax revenues over seven years. Another popular Utah economic development program is the Industrial Assistance Fund (IAF), a post-performance grant for the creation of high-paying jobs.

Colorado is taking a bottom-up approach to economic development through its Colorado Blueprint survey of regions and industries, seven of which are in advanced technologies: advanced manufacturing, aerospace, bioscience, electronics, energy and natural resources (including cleantech), infrastructure engineering, and technology and information. Those industries account for nearly 30 percent of Colorado’s wage earnings, nearly 30 percent of its total sales revenues across all industries within the state,

and nearly 35 percent of the state’s total exports. To foster their growth, Colorado offers incentives under its Advanced Industries (AI) Accelerator Grant Program. This includes a Proof of Concept grant (limit $150,000), Early-Stage Capital and Retention grants (limit $250,000), and infrastructure funding (limit $500,000). “We can take the cap off the limit if a company operates in a way that their technology directly impacts two or more advanced industry sectors,” reports Jeff Kraft,

director of Business Funding and Incentives, Colorado Office of Economic Development and International Trade.

Creating Jobs & Keeping Taxes Low Idaho offers a new Idaho Tax Reimbursement Incentive (TRI), effective July 1, 2014. It applies to businesses that are adding or bringing highpaying jobs to Idaho. This post-performance incentive creates a maximum credit of 30 percent on income, payroll, and sales taxes for up to 15 years and is intended to

AREA DEVELOPMENT | 2015 Annual Directory 93

MOUNTAIN Click on to the world’s foremost economic development Website — and CLICK TO THE WORLD

MONTANA

COLORADO Principal Manufacturing Industries

UTAH

Principal Manufacturing Industries

(Percentage of Employment)

Food Manufacturing

16.6%

Chemicals, Petroleum & Coal

Computer & Electronics

13.2%

Wood Products & Furniture

15.6%

Petroleum & Coal Products

10.1%

Fabricated Metal

10.7%

Food Products

10.6%

Beverage & Tobacco Products

9.9%

Machinery Manufacturing

7.4%

Chemical Manufacturing

7.4%

Transportation Equipment

6.5%

Fabricated Metal Products

5.6%

Principal Manufacturing Industries

(Percentage of Employment)

22.3%

Computers & Electronic Parts

11.7%

Medical Eqpt. & Supplies

7.7%

Athletic Goods & Misc. Mfg.

6.6%

Aerospace Products & Parts

4.9%

Machinery, Computers & Electronics

7.0%

Chemicals

5.2%

Architectural & Structural Metals

4.7%

28.6%

Pharmaceuticals & Medicine

4.6%

Other Manufacturing Industries

59.8%

NEVADA Principal Manufacturing Industries

Other Manufacturing Industries

(Percentage of Employment)

23.3%

Printing & Related Support Activities

8.2%

28.6%

Computer & Electronic Products

19.3%

(Percentage of Employment)

Wood Products Fabricated Metal Products

AREADEVELOPMENT

9.6%

Transportation Equipment

5.2%

Machinery

4.9%

Other Manufacturing Industries

encourage expansions and relocations. To be eligible, companies in rural areas must create 20 new jobs, and those in urban centers, 50 new jobs. A recent recipient of a TRI is Diversified Fluid Solutions, a subsidiary of Critical

9.8%

FOR FREE SITE INFORMATION, CALL

(Percentage of Employment)

Fabricated Metal Products

16.3%

Chemical Products

15.9%

7.2%

Petroleum & Coal Products

10.5%

Plastics & Rubber Products

6.8%

Food

10.3%

Nonmetallic Mineral Products

6.5%

Nonmetallic Mineral Products

9.2%

Transportation Equipment

Machinery

5.5%

3.4%

Wood Products

5.2%

Plastics & Rubber Products

4.9%

Transportation Equipment

4.3%

Printing & Related Activities

3.2%

Furniture and Related Products

2.7%

Other Manufacturing Industries

42.5%

22.6%

Process Systems Group, which manufactures a variety of fluid blending and distribution systems. The company plans to invest $1.2 million to expand its Boise operations, creating 50 to 60 full-time jobs. Think big sky, big opportunity — that’s the foundation

WYOMING Principal Manufacturing Industries

12.5%

Principal Manufacturing Industries

Computer & Electronic Products

12.9%

Fabricated Metal Products

IDAHO Food Products

Food

of the Choose Montana initiative and pro-business policies that led CNBC to rank the state No. 5 for cost of doing business in its 2013 America’s Top States for Business survey. The 2015 State Business Tax Climate report by the Tax Foundation ranked Montana

Other Manufacturing Industries

800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com

12.0%

Colorado • Idaho • Montana • Nevada • Utah • Wyoming

COLORADO — 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)

IDAHO — BASIC BUSINESS TAXES

NEVADA — 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. (As of July 1, 2013 the quarterly sum of all taxable wages over $85,000, minus healthcare deductions, times 1.17%. If an employer has less than $85,000 of taxable wages in the quarter, it still must file a return with $0 balance due. The 0% rate on Tier 1 of the MBT has been extended to June 30, 2015)

Corporate Income Tax: 7.4 percent of taxable income with a $20 minimum

Sales and Use Tax: 6.85 percent on retail sales plus local add-ons

Corporate Organization and Qualification Fees: $100 for articles of incorporation or certificate of authority

Property Tax: Levied at 35 percent of the property's full cash value

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

MONTANA — BASIC BUSINESS TAXES

UTAH — BASIC BUSINESS TAXES Corporate Income and Franchise Tax: 5 percent Sales and Use Tax: 5.95-8.35 percent Property Tax: Property tax per capita of 2.55 percent (2011)

WYOMING — BASIC BUSINESS TAXES Corporate Tax: No state income tax

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

No. 6 for overall business tax climate. Incentive programs range from providing financial as-

sistance for promotional materials used at trade shows to conducting feasibility studies. The Montana Board of Invest-

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 Wyoming has no inventory tax, franchise tax, or gross sales tax

ment’s in-state loan programs provide fixed-rate financing for up to 20 or 25 years with interest rates posted weekly,

and a maximum participation rate of approximately $70 million. •••• — Karen E. Thuermer

AREA DEVELOPMENT | 2015 Annual Directory 95

PACIFIC Alaska • California Hawaii • Oregon Washington

consultants from receiving a ffee contingent on procuring tthe California Competes Tax Credit for their clients. By alleviating consultant fees, California wants to ensure tthat all taxpayer dollars are used for the incentives.

Aerospace Cluster A

A FOCUS ON BUSINESS EXPANSION CREATING JOBS AND EXPANDING BUSINESS ARE AT THE CORE OF ECONOMIC DEVELOPMENT EFFORTS IN THE PACIFIC STATES. In California, the Governor’s Economic Development Initiative provides for a New Employment Credit (NEC), whereby companies operating in areas of high unemployment can claim upward of $56,000 per employee over five years; a state sales and use tax exemption for biotech companies that are

purchasing manufacturing equipment; and a $780 million California Competes Tax Credit that is available to businesses that want to come to California or stay and grow in California. For FY2014–2015, $151 million is allocated for the program — 25 percent of which is for small businesses.

A Unique Tax Credit Program Making the California Competes Tax Credit program unique is its simple online application — the first and only one of a kind for an expansion program this size, which means a company does not have to utilize consultants to gain access to these types of credits, according to a GO-Biz spokesperson. In a controversial move, the state’s Office of Business and Economic Development banned

STATE

POPULATION

LABOR FORCE

Alaska

735,132

363,400

California

37,690,000

18,668,100

Hawaii

1,404,054

665,900

Oregon

3,930,065

1,972,660

Washington

6,968,200

3,484,200

AREADEVELOPMENT

FOR FREE SITE INFORMATION, CALL

Washington continues its aggressive global effort to attract suppliers that want tto locate in the state to participate in Boeing’s 777X program, and those involved in advanced materials and composites; unmanned aerial systems; aviation biofuels; and maintenance, repair, and overhaul operations. “This year has blown the doors open for opportunities to grow a world-class composite industry cluster in our state and develop further as a center for advanced manufacturing R&D, technology, materials, skilled workers, and green, innovative production facilities serving maritime, automotive, and clean-energy sectors in addition to aerospace,” says Washington

Commerce Director Brian Bonlender. By September, the Washington Small Business Credit Initiative had attracted $31.5 million in new private investment to support loans to small businesses. The success of this innovative public-private partnership has attracted additional support from the private financing sector and helped to ensure that financing is available for qualified businesses to expand and create jobs. In July, a Collateral Support Program was added to Washington’s menu of credit assistance options available to businesses. It allows businesses to continue working with their current bank to access funding available through the SBA 504 loan program. The program mitigates a lender’s risk during the interim period before an SBA-guaranteed loan is in place. For example, it may cover a construction loan, while an SBA 504 loan provides permanent takeout financing.

A Focus on Exports RIGHT TO WORK Alaska

California Hawaii Oregon Washington

No No No No

COLLEGE GRADUATES (Age 25 and over)*

Alaska California Hawaii Oregon Washington

27.5% 30.5% 29.6% 29.2% 31.6%

*Bachelor's degree or higher, percent of persons age 25+, 2008-2012 Source: U.S. Census Bureau, ACS, revised July 2014

Oregon is focusing on exports via TEAM Oregon. The state incorporates local partners into its Global Strategies team to help existing Oregon businesses grow their companies by accessing overseas markets. Personal assistance is available from in-state professionals and from Oregon’s trade representatives in China, Japan, Korea, and Europe. Business Oregon also provides Export Assistance grants ranging from $2,000 to $5,000 in matching funds to Oregon companies to help defray associated costs for international trade shows. In September, Oregon was awarded $300,000 in a third

800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com

Alaska • California • Hawaii • Oregon • Washington

ALASKA

OREGON

TRADITIONAL INDUSTRIES: Oil and gas, mining, tourism, fishing, forest products EXPANDING INDUSTRIES: Oil and gas, tourism, aerospace, seafood processing, mining, maritime industrial services

TRADITIONAL INDUSTRIES: High technology, agriculture, wood products EXPANDING INDUSTRIES: Food processing, aerospace, high-tech/semiconductors, software, biomedical technology, outdoor gear, transportation equipment, primary and fabricated metals

CALIFORNIA

WASHINGTON

TRADITIONAL INDUSTRIES: Services, finance/insurance/real estate, manufacturing, retail trade, wholesale trade, construction, agriculture/food processing 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

KEY INDUSTRIES: Aerospace, information and communication technology, clean technology, life sciences/global health, forest products, value-added agriculture, food processing, marine technology, military and defense EXPANDING INDUSTRIES: Advanced manufacturing, composites, biotechnology, clean energy, electronics, telecommunications, software, international trade services, maritime, scientific instruments, machinery, value-added agriculture

HAWAII TRADITIONAL INDUSTRIES: Tourism, federal activity (defense- and 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

round of federal grant funding to help Oregon companies promote their products to customers around the world through the State Trade and Export Promotion (STEP) Program. Since 2012, STEP-funded export promotion grants totaling $594,000 helped 170 Oregon companies achieve immediate sales of more than $21 million. Alaska’s recent passage of Senate Bill 71, a state act relating to the fishery industry,

allows for a product development tax credit for certain salmon and herring products. Essentially the bill provides fishermen a fair system to pay state landing taxes, continues and expands value-added tax credits for fishermen and processors adapting to a rapidlyevolving seafood marketplace, provides credits to create more jobs for Alaskans in the seafood industry, and provides incentives to help meet burdensome federal mandates.

CALIFORNIA Principal Manufacturing Industries (Percentage of Employment)

Computers & Electronic Products Food

OREGON Principal Manufacturing Industries (Percentage of Employment)

21.1%

Computers & Electronic Products

20.9%

12.6%

Food

14.8%

Wood Products

12.1%

Fabricated Metal Products

9.4%

Transportation Eqpt.

8.7%

Fabricated Metal Products

8.9%

Chemicals

5.9%

Transportation Eqpt.

6.2%

Machinery

5.4%

Machinery

6.6%

Apparel

4.9%

Primary Metals

4.7%

Printing & Related Support Activities

3.6%

Paper

2.7%

Furniture & Related Products

2.7%

Nonmetallic Mineral Products

2.4%

Other Manufacturing Industries

23.3%

Other Manufacturing Industries

23.1%

AREA DEVELOPMENT | 2015 Annual Directory 97

PACIFIC ALASKA — BASIC BUSINESS TAXES Corporate Income Tax: 0% on taxable income under $25,000; 2% on $25,000 to $49,000; 3% on $49,000 to $74,000; 4% on $74,000 to $99,000; 5% on $99,000 to $124,000; 6% on $124,000 to $148,000; 7% on $148,000 to $173,000; 8% on $173,000 to $198,000; 9% on $198,000 to $222,000; 9.4% on $222,000 or more

HAWAII — BASIC BUSINESS TAXES 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)

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

CALIFORNIA — BASIC BUSINESS TAXES

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

OREGON — 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

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

Positive effects include diversified products, expanded state revenues, and increased permit prices. Senate Bill 71 extends the credit until 2020 and broadens it for herring

AREADEVELOPMENT

value-added processing.

Clean Technology Hawaii is focusing on clean tech and energy efficiency. In September, the state and the

FOR FREE SITE INFORMATION, CALL

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

U.S. Department of Energy (DOE) renewed their commitment to the Hawaii Clean Energy Initiative Memorandum of Understanding (MOU), which outlines a goal to

increase energy efficiencies and maximize use of Hawaii’s abundant renewable energy resources to meet and exceed Hawaii’s 70 percent clean energy targets by 2030. This

800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com

Alaska • California • Hawaii • Oregon • Washington

WASHINGTON — BASIC BUSINESS TAXES Washington State has no corporate or personal tax on income, and no capital gains tax 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 1.5 percent; other B&O tax rates vary 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

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includes reducing Hawaii’s dependency on petroleum, which encompasses two-thirds of the state’s energy use. In August, the Public Utilities Commission approved up to $150 million in state bonds to provide low-cost capital for a proposed loan program to expand access to solar photovoltaic systems and other clean energy improvements for Hawaii consumers. The financing order represents a significant milestone for the state’s Green Energy Market Securitization (GEMS) program. And renewable energy is also continuing its ascent in California, which presently ranks second nationwide in terms of wind energy capacity,

behind Texas and just ahead of Iowa, according to the U.S. Department of Energy. Much of that activity has occurred in Kern County, with some big projects in Solano, Contra Costa, and Riverside counties as well. Additionally, the American Solar Energy Industries Association reports that 19,200 MW of utility-scale solar projects are under construction or development in California as of August 2014. The state’s Renewable Portfolio Standard requires that 25 percent of its electricity come from renewable resources by 2016, and 33 percent by 2020. Much of that is expected to come from solar power. •••• — Karen E. Thuermer

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AREA DEVELOPMENT | 2015 Annual Directory 99

CANADA

ENERGY AND MANUFACTURING DRIVE CANADA’S ECONOMIC GROWTH INNOVATIVE MANUFACTURING, ENERGY EXPORTS, AND THE LIFE SCIENCES SECTOR AMONG OTHERS ARE PLAYING A LEADING ROLE. There are lots of reasons Canada is consistently a top G-7 performer — not only is its banking system one of the best in the world, it has a highly diversified economy, ranging from traditional industries like forestry and mining to knowledge-based sectors like information technology (IT), life sciences, and advanced manufacturing. Even with these impressive

ttember 2014, the Conference Board of Canada reported tthat more than 74,000 jobs were added in September, w driving the unemployment rate down to 6.8 percent — the lowest since December 2008. Canada’s overall economic growth in 2014 is about 2.4 percent; growth has, however, varied significantly among the provinces. Alberta’s economy is moving along at a 3.9 percent clip — driven largely by its energy sector. Agricultural revenues dropped in Saskatchewan and Manitoba by almost one third in 2014 compared to the previous year, but stronger manufacturing has helped offset these losses. British Columbia, Ontario, Quebec, Nova Scotia, and New Brunswick have also recorded increases in manufacturing exports. Most experts agree the Canadian economy will continue to gradually improve over the remainder of 2014 and into 2015, thanks in large part to increased exports of nonenergy goods, including metal products, motor vehicles and parts, and aircraft equipment.

assets, Canada is also dealing with the same uneven performance in economic growth and job creation that is impacting gross domestic product (GDP) in the U.S. and other industrialized nations. The rate of growth for the Canadian GDP slowed down in the summer of 2014, with a third-quarter gain closer to 1.8 percent than the 2.8 percent that many experts had predicted. This was, in large part, related to a reduction in manufacturing, especially automotive, as well as slight reductions in mineral and oil and gas extraction. On the positive side, significant gains were seen in real estate, wholesale trade, hospitality, and food services. Foreign trade is responsible for about 45 percent of the nation’s GDP. Therefore, Canada’s economic performance is closely tied to that of the U.S., its largest trading partner. Overall, the third-quarter upswing in the U.S. economy has had a positive effect on Canada. For example, in Sep-

Energy Exports and a Manufacturing Rebound The economy of western Canada has always been driven by mining, oil and gas, and other natural resources. British Columbia is exporting more minerals and energy, which has helped the province maintain a

2.8 percent growth rate. British Columbia is also developing several major liquefied natural gas (LNG) projects. Alberta continues to be an oil and gas powerhouse, with massive private-sector investments in energy. Capitalspending projects worth more than $55 billion in the oil sands alone are under way. Crude oil production is up by almost 10 percent. In contrast, Saskatchewan and Manitoba have experienced some reduced mining output, especially in potash. Crop production in these Prairie Provinces — especially wheat and canola — was also down about 30 percent compared to 2013, mostly due to bad weather. As a result, the provinces of Saskatchewan and Manitoba are seeing slower growth in the 1.5 –1.8 percent range. Fortunately, manufacturing is on the rebound. In Manitoba, for example, manufacturing grew about 3 percent. Key sectors are transportation equipment (Manitoba is the largest center in North America for bus manufacturing), food manufacturing, metal fabrication, heavy machinery, and chemicals. In October 2014, Winnipegbased New Flyer Industries announced plans to develop a zero-emission, 60-foot, batteryelectric/fuel cell bus that will be integrated into the transit-bus maker’s Xcelsior X60 heavyduty transit bus platform — a North American first.

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BRAMPTON, ONTARIO, CANADA. We are the people-powered economy. • 9th-largest city in Canada and 3rd-largest in the GTA • 2nd-fastest-growing city in Canada (Pop. 600,000) • Over 8,600 businesses • Young, multicultural and growing labor force • Low-risk and predictable cost environment - AAA Standard & Poor’s Credit Rating

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CANADA 2.5 2.0

Innovation and Technology

Real GDP Growth in G-7 Countries, 2004-2013 (%) 1.9

1.8

1.5

1.3 1.1

1.1

% 1.0

1.0 0.8

0.5 -0.2

0.0 Canada -0.5

U.S.

Germany

U.K.

E.U.

France

Japan

Italy

Source: World Bank: World Development Indicators database, November 2014

Tillsonburg s Ontario Building Business Better Tillsonburg is located in the heart of a globally competitive advanced manufacturing region evidenced by low business costs, a knowledge based economy and a strategic location between Toronto and Detroit as well as 3 major border crossings. Offering key access to Canada’s largest market as well as the US northeast and midwest, Tillsonburg offers investors the necessary ingredients for success! Find out why global companies like Lebcorp, Martinrea, Siemens, etc, are choosing our community by contacting Cephas Panschow, Development Commissioner, at 519.842.6428, x3250 or cpanschow@tillsonburg.ca

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Ontario, with its highly diverse economy including advanced manufacturing, automotive, IT, software, and life sciences, has always been the economic engine for the Canadian economy. Improved export numbers, led by manufacturing sales that grew by 5 percent in the first half of 2014, have driven Ontario’s GDP growth of about 2.1 percent in 2014. Toronto and the Kitchener-WaterlooCambridge region, about 90 minutes west of Toronto, are top-performing MSAs for economic growth, especially information and communications technology (ICT). Canada’s Technology Triangle (CTT), a partnership among the cities of Cambridge, Kitchener, and Waterloo, is a vibrant ICT research and development cluster with over $20 billion in revenues annually. Toronto, home to 35 percent of Canada’s technology businesses, generates about $19 billion in revenues annually. Instead of competing directly for business, Toronto and the CTT may join forces to create a technology corridor on the Silicon-Valley scale. Both regions have unique strengths that, when combined, extend their capabilities as partners. The dynamic between Toronto and Waterloo could result in a super-cluster, similar to Silicon Valley and San Francisco. “The Toronto-Waterloo tech corridor is Canada’s most significant economic development opportunity,” comments Bilal Khan, managing director for OneEleven, a Toronto-based big data incubator. “The prosperity, innovation, and productivity that exists within this corridor, if properly nurtured, has the potential to make Canada a leader in the global innovation economy.” IT is also one of the province of New Brunswick’s strong suits. Home to Xerox, Thomson Reuters, CGI, Genesys, and Xplornet, New Brunswick was named the lowest business cost location in North America in KPMG’s 2014 Competitive Alternatives study.

800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com 11/12/14 1:04 AM

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Life Sciences and Aerospace Clusters Key Quebec industries are mining, lumber, paper, pharmaceuticals, life sciences, heavy machinery, electronics, food processing, and advanced manufacturing including aerospace. Quebec ranks among the largest life-sciences clusters in North America. Ten leading global pharmaceutical companies maintain operations in the province, especially for research and development or manufacturing. Increased exports in pharmaceutical products, as well as aircraft and parts, aluminum, iron ore, newsprint, and heavy trucks, have supported Quebec’s 1.7 percent GDP growth rate in 2014. The recovery of Quebec’s aerospace sector has also helped the provincial economy. More than half of the nearly $25 billion in national aerospace sales last year came from Quebec aerospace companies. Aerospace activity in Montreal continues to expand — for example, the

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Mahindra Group, an Indian company, will open an office in Montreal to manage its North American customers. In July, U.S.-based LTA Aerostructures, a designer of airships that deliver heavy or oversized loads, announced it would invest $90 million in a new facility in Greater Montreal, hiring about 180 workers. “Quebec, in particular, represents a major market for transportation by airships in remote northern areas where there is an abundance of natural resources,” says Michael Dyment, president and CEO of LTA. “We have received superb support and encouragement from the aerospace community and look forward to collaborating with numerous Quebec companies.”

Natural Resources, Agriculture Canada’s Atlantic provinces — Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland/Labrador — depend on natural resources to drive

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their economies. Strong energy exports from New Brunswick, Nova Scotia, and Newfoundland/Labrador contribute significantly to their economies. Development continues on Newfoundland’s $14 billion Hebron offshore oil project. BP Canada and Shell plan on spending $2 billion in exploration in coming years off the Nova Scotia coast. Nova Scotia’s economy will also get a boost from increased natural gas production from the new Deep Panuke offshore natural gas field. Nova Scotia is also investing in innovative forestry technology that will transform the planting of new forests. A combined federal-state investment of $1.5 million will enable J.D. Irving Ltd. to complete a new facility that will produce up to four million improved seedlings per year through a process known as somatic embryogenesis. “Over the past 20 years, we have invested more than $20 million in forest research and tree improvement,” says

800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com

13/05/14 6:06 PM

Jim Irving, co-chief executive officer of the company. â&#x20AC;&#x153;This new research facility will increase our research capability and contribute to other areas of scientific discovery in the years ahead.â&#x20AC;? Nova Scotia also has well-established manufacturing industries that produce consumer goods, tires, chemicals, electronics, and aircraft. Its shipbuilding industry, recently buoyed by a $25 billion contract to build combat ships for the Canadian Navy, is expected to create hundreds of jobs in the future. The Conference Board of Canada predicts the project will boost overall real GDP in the province by 2.5 percent. Food processing is another proven component to the economy of the Atlantic Provinces. Both Oxford Frozen Foods and Ocean Spray are expanding their food-processing facilities in New Brunswick, which is home to one of the worldâ&#x20AC;&#x2122;s largest processors of frozen foods, McCain Foods. â&#x20AC;˘â&#x20AC;˘â&#x20AC;˘â&#x20AC;˘ â&#x20AC;&#x201D; Mark Crawford

Strategically Located for Business Success t .FUSP QPQ 3FHJPOBM .BSLFU . t 4LJMMFE MBCPVS GPSDF BOE USBJOJOH TVQQPSU t $POWFOJFOU BJS SPBE BOE SBJMSPBE JOGSBTUSVDUVSF t $MPTF UP NBKPS VODPOHFTUFE CPSEFS DSPTTJOHT

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TRI-MODAL TRANSPORTATION CentrePort offers unparalleled access to world class truck, rail and air cargo operations, with three class I railways, international highways and a 24/7 international airport.

GATEWAY TO CANADA & MIDWESTERN UNITED STATES CentrePortâ&#x20AC;&#x2122;s 20,000 acres are prime industrial land strategically located one hour north of the United States border, and a consumer population of 100 million living within a 24-hour drive.

NEW RAIL PARK The CentrePort Canada Rail Park is being developed on 700 acres, connecting to three class I rail carriers (Canadian National, Canadian Pacific and BNSF Railway) and providing industrial space for rail-intensive business.

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AREA DEVELOPMENT | 2015 Annual Directory 105 09/12/14 3:58 PM

MEXICO

MEXICAN ECONOMY ON THE UPSWING ONE OF THE BIGGEST RECIPIENTS OF FDI, MEXICO HAS ATTRACTED A RANGE OF INDUSTRIAL INVESTMENTS IN RECENT YEARS, WITH ITS EXPORTS REBOUNDING STRONGLY. A solid recovery is well under way in Mexico, according to analysis from the Organization for Economic Cooperation and Development (OECD). The OECD’s November 2014 forecast summary notes that “a strong rebound of exports, improved confidence, and fiscal stimulus have driven a recovery, with manufacturing leading other sectors.” GDP growth was expected to be 2.6 percent in 2014, and the expectation is that it’ll hit 3.9 percent in 2015 and 4.2 percent in 2016. That kind of growth would add a bit of downward pressure to an already-low unemployment rate — after peaking at 5.4 percent in 2009, joblessness

in Mexico slid to 4.9 percent by 2014, and is expected to drop further to 4.7 percent by 2016, according to OECD forecasters. Inflation picked up a bit in 2014 in Mexico, hitting 4.0 percent, but the OECD expects it’ll be back down to 3.5 percent in 2015 and 3.1 percent in 2016. Both the OECD and the U.S. State Department expect activity in the Mexican energy and telecommunications sectors in the foreseeable future. Those expectations are driven by recent constitutional reforms, as the State Department explains in its 2014 investment climate statement. Prior to the reforms, the state-controlled oil company enjoyed a monopoly, but it’s now being allowed to partner with private firms, and Mexico will open up some oil fields to outside development. “In telecommunications, reforms are intended to improve competition and diminish concentration in the sector through the creation of a new, constitutionally autonomous regulator,” the State Department report notes. That regulatory body will be able to impose sanctions on companies that it decides are too dominant, and order divestitures if it seems necessary.

Open to FDI The World Bank Group

ranks Mexico 39th in terms of the ease of doing business. Mexico is quite open to t foreign direct investment, and among emerging markets has been among the biggest recipients in recent years. The most recent full-year FDI figures are from 2013, when the tally was $35.2 billion, accordt ing to Mexico’s Secretariat of the t Economy. About a third of that was from U.S. investors. t Generally speaking, U.S. and Canadian investors are given “most favored nation” treatment, although the vast majority of foreign investments don’t require governmental approval. “Foreign investment in Mexico has largely been concentrated in the northern states close to the U.S. border where most maquiladoras are located, and in the Federal District (Mexico City) and surrounding states, where most corporate headquarters are located,” according to the State Department. What kinds of investments are landing in Mexico? Aerospace manufacturing investments are high on the list, according to the Mexican government, which claims the country has been the world leader in that kind of investment for the past four years. Mexico is the eighth-largest motor vehicle producer, and as of the first quarter of 2014, its auto industry moved into second place among vehicle exporters to the U.S. (Japan had held that No. 2

spot previously). Beyond automotive investments, Mexico has enjoyed significant FDI activity in financial services and electronics.

Recent Headlines Mexico has benefited from a steady stream of economic development headlines throughout the past year. Examples include the $110 million expansion announced in October by off-road vehicle maker Polaris Industries, growing the capacity of its plant in Nuevo León; a $600 million solar power plant that Chinese solar module maker Risen Energy is planning in Durango; and Kellogg’s plans to invest $52 million over the next three years at its cereal manufacturing plant in Querétaro. The state of Querétaro also was the site of an October announcement by Huawei, a Chinese information technology equipment and services provider. Its $1.5 billion plan includes R&D and training facilities as well as a network operations center. And Kia made big headlines in August when it announced a billiondollar plan to build a factory in Monterrey to produce small cars for markets including the U.S. Word in the industry is that Toyota is scouting locations for a major Mexican operation, too, though the news in September was that the Japanese automaker was being extra cautious in its plans. ••••

GDP Growth

Mexico

10 5 0 -5 -10 2008

2010

2012

2014 014

Source: OECD, November 2014

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OECD

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20 2016

New York

STATE CONTACTS & SELECT SITES

Select Sites

J Janiszewski Jeff Senior Vice President of S Strategic Business Development S Empire State Development 518-292-5200

Select Sites S Kenneth Adams, President & CEO Empire State Development 518-292-5100 www.empire.state.ny.us sstartup.ny.gov

Pennsylvania

NEW ENGLAND Connecticut

Tricia Paesani, Manager, Business Development Connecticut Department of Economic and Community Development 505 Hudson Street Hartford, CT 06106 860-270-8215

Select Sites Gerald Sitko, Economic Development Coordinator Cheshire Economic Development Corporation 84 South Main Street Cheshire, CT 06410 203-271-6670 Fax: 203-271-6688 jsitko@cheshirect.org www.cheshirect.org

Rhode Island

Marcel A. Valois Executive Director Rhode Island Commerce Corporation 315 Iron Horse Way, Suite 101 Providence, RI 02908 401-278-9100 Fax: 401-273-8270

Vermont

Vermont Department of Economic Development National Life Building 1 National Life Drive Montpelier, VT 05620-5001 802-828-5236 Fax: 802-828-3258

MID-ATLANTIC Delaware

Alan B. Levin Cabinet Secretary Delaware Economic Development Office 99 Kings Highway Dover, DE 19901 302-739-4271

C. Alan Walker, Sec. Pennsylvania Dept. of Community & Economic Development Commonwealth Keystone Bldg. 400 North St. 4 Harrisburg, PA 17120-0225 717-787-3003 Fax: 717-787-6866

George C. Gervais, Commissioner Maine Department of Economic and Community Development 59 State House Station Augusta, ME 04333-0059 207-624-9800 Fax: 207-287-2861

Illinois

Adam Pollet, Director Illinois Department of Commerce & Economic Opportunity James R. Thompson Center 100 W. Randolph Chicago, IL 60601 Phone: 312-814-7179 Fax: 312-814-1843

Select Sites 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

Massachusetts

Massachusetts Office of Business Development 10 Park Plaza, Suite 3730 Boston, MA 02116 617-973-8600 Fax: 617-973-8554

Dominick E. Murray, Secretary Maryland Department of Business & Economic Development World Trade Center Baltimore 401 E. Pratt Street Baltimore, MD 21202 410-767-6300 888-CHOOSE MD

Select Sites John Henry King, Economic Development Director City of Bowie 15901 Excalibur Road Bowie, MD 20716 301-809-3042 Fax: 301-809-2315 jhking@cityofbowie.org www.cityofbowie.org

New Hampshire

Michael Bergeron Senior Business Development Manager Department of Resources and Economic Development New Hampshire Business Resource Center P.O. Box 1856 Concord, NH 03301-1856 603-271-2591 Cell: 603-419-91633 Fax: 603-271-6784

Select Sites Karen Pollard, CEcD, EDP Economic Development Manager City of Rochester 31 Wakefield Street Rochester, NH 03867 603-335-7522 Cell: 603-833-9194 Fax: 603-335-7597 Karen.Pollard@rochesternh.net www.thinkrochester.biz

Mark Wickersham, Executive Director Huntington County Economic Development 8 W. Market Street Huntington, IN 46750 260-356-5688 Fax: 260-358-5692 mark@hcued.com www.hcued.com

MIDWEST

Maryland

Maine

Harold Gutzwiller Hoosier Energy P.O. Box 908 Bloomington, IN 47402 812-876-0294 Cell: 812-360-4796 Fax: 812-876-5030 hgutzwiller@HEPN.com www.HoosierSites.com

Iowa

Debi V. Durham, Director Iowa Economic Development Authority 200 East Grand Avenue Des Moines, IA 50309 515-725-3000 Fax: 515-725-3010

Select Sites Debi V. Durham, Director Iowa Economic Development Authority 200 E. Grand Ave. Des Moines, IA 50309 515-725-3000 or 515-725-3010 business@iowa.gov www.iowaeconomicdevelopment.com

Michigan

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

Harold Gutzwiller Hoosier Energy P.O. Box 908 Bloomington, IN 47402 812-876-0294 Cell: 812-360-4796 Fax: 812-876-5030 hgutzwiller@HEPN.com www.HoosierSites.com

Minnesota

John Shoffner, Director, Business and Community Development Minnesota Department of Employment and Economic Development First National Bank Building 332 Minnesota Street, E200 St. Paul, MN 55101-13561 651-259-7445 Fax: 651-296-3900

Missouri Karen L. Holt, Director Harford County Office of Economic Development 2021 Pulaski Highway Havre de Grace, MD 21078 410-879-3059 klholt@harfordcountymd.gov www.harfordbusiness.org

The Missouri Partnership 120 South Central Ave. Ste. 1150 Clayton, MO 63105 314-725-0949 Fax: 314-725-0743

Indiana

Select Sites

Indiana Economic Development Corporation One North Capitol, Ste. 700 Indianapolis, IN 46204 Toll-Free: 800-463-8081 317-232-8800 Fax: 317-232-4146

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

New Jersey

Choose New Jersey 200 Rockingham Row Princeton Forrestal Village Princeton, NJ 08540 609-292-2200 Fax: 609-297-2201

AREA DEVELOPMENT | 2015 Annual Directory 107

STATE CONTACTS & SELECT SITES Kevin Welch, Director Joplin Regional Partnership 320 East 4th Street Joplin, MO 64801 417-624-4150 Fax: 417-624-4303 kwelch@joplincc.com www.joplinregionalpartnership.com

Susan E. Crotty, CEcD Manager, Industrial and Community Development City of St. Marys 101 E. Spring Street St. Marys, OH 45885 419-394-3303, Ext. 1-3117 Fax: 419-394-2452 scrotty@cityofstmarys.net www.stmarysdevelops.com

Ohio

John Minor, President & Chief Investment Officer JobsOhio 41 S. High Street, 15th Floor Columbus, Ohio 43215 614-224-6446

Select Sites John Minor President & Chief Investment Officer JobsOhio 41 S. High Street, 15th Floor Columbus, Ohio 43215 614-224-6446 contact@jobs-ohio.com www.jobs-ohio.com

Dennis Mingyar Director, Economic Development Buckeye Power 6677 Busch Blvd. Columbus, OH 43229 614-430-7876 800-282-6929 Fax: 614-846-7108 dmingyar@buckeyepower.com www.BuckeyePowerSites.com

Kevin Welch, Director Joplin Regional Partnership 320 East 4th Street Joplin, MO 64801 417-624-4150 Fax: 417-624-4303 kwelch@joplincc.com www.joplinregionalpartnership.com

Wisconsin

Wisconsin Economic Development Corp. 201 W. Washington Ave. P.O. Box 7970 Madison, WI 53703-7970 608-210-6700

Select Sites Wade Goodsell, Business Attraction Account Manager Wisconsin Economic Development Corporation 201 West Washington Avenue P.O. Box 1687 Madison, Wisconsin 53701 1-855-INWIBIZ (855-469-4249) 608.210.6813 wade.goodsell@wedc.org http://InWisconsin.com

Dacia Kruse, Acting Director Nebraska Department of Economic Development P.O. Box 94666 Lincoln, NE 68509-4666 800-426-6505 Fax: 402-471-3378

Select Sites 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.econdev.nppd.com

North Dakota

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

Al Anderson, Commissioner Paul J. Lucy, Director Economic Development & Finance Division North Dakota Department of Commerce 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 800-952-3625

Alabama

PLAINS

Greg Canfield, Secretary Alabama Department of Commerce 401 Adams Avenue, 6th Floor Montgomery, AL 36130 Phone: 334-242-0400 Fax: 800-242-5669

Kansas

Arkansas

Steve Kelly, Deputy Secretary Kansas Department of Commerce 1000 SW Jackson, Suite 100 Topeka, KS 66612-1354 785-296-5298

Select Sites Steve Kelly, Deputy Secretary Kansas Department of Commerce 1000 SW Jackson, Suite 100 Topeka, KS 66612 785-296-5298 Fax: 785-296-3490 Skelly@kansascommerce.com KansasCommerce.com/KBIZ

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METRO LITTLE ROCK ALLIANCE MEMBERS Joey Dean, Executive Director Metro Little Rock Alliance One Chamber Plaza Little Rock, AR 72201 501-377-6006 1-800-905-6577 jdean@littlerockchamber.com www.littlerockchamber.com

Nebraska

SOUTH Matthew McCollister Vice President, Economic Development Columbus Region/Columbus 2020 150 S. Front Street, Ste. 200 Columbus, OH 43215 614-225-6953 Fax: 614-221-1408 mm@columbusregion.com www.columbusregion.com

Select Sites

FOR FREE SITE INFORMATION, CALL

Grant Tennille, Executive Director Arkansas Economic Development Commission 900 W. Capitol Avenue, Ste. 400 Little Rock, AR 72201 1-800-ARKANSAS Fax: 501-682-7394

Stephen Bell, President/CEO Arkadelphia Regional Economic Development Alliance 2401 Pine Street, Suite B P.O. Box 400 Arkadelphia, AR 71923 870-246-1460 Fax: 870-246-1462 Stephen@arkadelphiaalliance.com www.arkadelphiaalliance.com Jerry L. Smith, President & CEO Conway County Economic Development Corporation 115 E. Broadway Street P.O. Box 589 Morrilton, AR 72110 501-354-2442 Cell: 870-897-5134 Fax: 501-354-8642 jerrysmith@morrilton.com www.morrilton.com Brad Lacy, President & CEO Conway Development Corporation 900 Oak Street Conway, AR 72032 501-329-7788 Fax: 501-327-7790 Brad.Lacy@conwayarkansas.org www.developconway.org www.conwayarkansas.org Mike Maulden, Director Business & Economic Development Entergy Arkansas 425 West Capitol Ave., Suite 2700 Little Rock, AR 72201 501-377-4474 mmaulde@entergy.com www.EntergyArkansas.com Jim Lancaster, President Grant County Industrial Development Corporation P. O. Box 557 Sheridan, AR 72150 870-942-3481 jimlancaster@windstream.net www.grantcountychamber.com Jim Fram, President & CEO Hot Springs Metro Partnership 659 Ouachita Ave. Hot Springs, AR 71901 501-321-1700 Fax: 501-321-3551 jim.fram@growinghotsprings.com info@growinghotsprings.com www.hotspringsmetropartnership.com www.growinghotsprings.com Amy Mattison, CEO Jacksonville Chamber of Commerce 200 Dupree Drive Jacksonville, AR 72076 501-982-1511 Fax: 501-982-1464 chamber@jacksonville-arkansas.com www.jacksonville-arkansas.com

800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com

Lou Ann Nisbett, President & CEO Economic Development Alliance for Jefferson County 510 S. Main Street Pine Bluff, AR 71601 870-535-0110 Fax: 870- 535-1643 lanisbett@sbcglobal.net. www.jeffersoncountyalliance.com Bryan Day, Executive Director Little Rock Port Authority 10600 Industrial Harbor Drive Little Rock, AR 72206 501-490-1468 Cell: 501-519-1950 Bday7500@comcast.net www.LittleRockPortAuthority.com Nikki Launius, Executive Director Malvern/Hot Spring County Economic Development Corporation 213 W. 3rd Street Malvern, AR 72104 501-332-2721 Fax: 501-332-8558 president@malvernchamber.com www.malvernchamber.com Judy Keller, Director Community & Economic Development City of Maumelle 550 Edgewood Drive, Suite 590 Maumelle, AR 72113 501-851-2500 Cell: 501-240-9888 Fax: 501-803-4673 judy@maumelle.org ced@maumelle.org www.maumelle.org Lamont Cornwell, Executive Director Saline County EDC 607 North Market Street Benton, AR 72015 501-860-4007 Fax: 501-860-4007 director@scedc.org www.scedc.org Buck Layne, President Searcy Regional Chamber of Commerce 2323 South Main Street Searcy, AR 72143 501-268-2458 Fax: 501-268-9530 blayne@searcychamber.com www.searcychamber.com Barry Sellers, Director, Economic Development Sherwood Chamber of Commerce 295 W. Kiehl Avenue Sherwood, AR 72120 501-835-7600 Cell: 870-323-2424 bsellers@sherwoodchamber.net www.sherwoodchamber.net

Kentucky

Larry Hayes, Secretary Kentucky Cabinet for Economic Development Old Capitol Annex 300 West Broadway Frankfort, KY 40601 800-626-2930 Fax: 502-564-1535

Gina Greathouse, Senior Vice President, Economic Development Commerce Lexington Inc. 330 East Main Street, Suite 205 Lexington, KY 40507 859-225-5005 ggreathouse@commercelexington.com www.locateinlexington.com

SOUTH ATLANTIC

Select Sites

Florida

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 bdaniels@electricities.org www.electricities.com

Gray Swoope, Secretary of Commerce President/CEO Enterprise Florida, Inc. 800 North Magnolia Avenue, Suite 1100 Orlando, FL 32803 407-956-5600 Fax: 407-956-5599

Select Sites Louisiana

Stephen Moret, Secretary Louisiana Economic Development 1051 North Third Street Baton Rouge, LA 70802-5239 225-342-3000 800-450-8115 Fax: 225-342-5389

Gregory J. Weiner, CEcD Senior Director, Business Development Economic Development Commission of Floridaâ&#x20AC;&#x2122;s Space Coast 597 Haverty Court, Suite 40 Rockledge, FL 32955 321-638-200 Fax: 321-633-4200 www.SpaceCoastEDC.org gweiner@SpaceCoastEDC.org

Mississippi

David Ramsey, Director, Global Business Division Mississippi Development Authority P.O. Box 849 501 N. West Street Jackson, MS 39205 601-359-3155

Select Sites David Ramsey Global Business Division Director Mississippi Development Authority P.O. Box 849, Jackson, MS 39205 601-359-3155 dramsey@mississippi.org www.mississippi.org

South 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

Jennifer Noel South Carolina Department of Commerce 1201 Main Street, Suite 1600 Columbia, SC 29201 800-868-7232 803-737-0400 Fax: 803-737-0894 Josh Kay, Director, Economic Development Santee Cooper One Riverwood Drive Moncks Corner, SC 29461 800-833-7797 josh.kay@santeecooper.com www.scprimesite.com

Georgia Tennessee

Bill Hagerty, Commissioner Tennessee Department of Economic and Community Development Business Development Division William Snodgrass/TN Tower, 27th Fl. 312 Rosa L. Parks Ave. Nashville, TN 37243-0405 615-741-1888 Fax: 615-741-7306

Select Sites Charles Wood, VP Economic Development Chattanooga Area Chamber of Commerce 811 Broad St. Chattanooga, TN 37402 423-763-4335 cwood@chattanoogachamber.com www.ChattanoogaCanDo.com

Georgia Department of Economic Development 75 Fifth Street NW, Suite 1200 Atlanta, Georgia 30308 404-962-4000

Virginia

Select Sites Jonathan Sangster, General Manager Economic Development Georgia Power 75 Fifth Street NW, Ste. 175 Atlanta, GA 30308 404-506-7502 Fax: 404-506-2216 econdevga@southernco.com www.SelectGeorgia.com

Select Sites Mandy Lambert, Commissioner, Department for Business Development Kentucky Cabinet for Economic Development Old Capital Annex 300 W. Broadway Frankfort, KY 40601 800-626-2930 Mandy.Lambert@ky.gov www.ThinkKentucky.com

Robert E. Leak, Jr., President Winston-Salem Business Inc. 1080 W. Fourth Street Winston-Salem, NC 27101 336-723-8955 Fax: 336-761-1069 rleak@wsbusinessinc.com www.wsbusinessinc.com

Martin Briley, President/CEO Virginia Economic Development Partnership 901 East Byrd Street P.O. Box 798 Richmond, VA 23218-0798 804-545-5612 Fax: 804-644-1607

Select Sites Mike Davidson, Director Campbell County Economic Development Department 47 Courthouse Lane, P.O. Box 100 Rustburg, VA 24588 434-592-9595 Fax: 434-332-9617 EconDev@campbellcountyva.gov www.campbellvirginia.com

North Carolina

Tiffany McNeill, Client Services Manager Economic Development Partnership of North Carolina 15000 Weston Parkway Cary, NC 27513-2118 919-447-7741

West Virginia

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

AREA DEVELOPMENT | 2015 Annual Directory 109

STATE CONTACTS & SELECT SITES SOUTHWEST Arizona

Sandra Watson, President & CEO Arizona Commerce Authority 333 N. Central Ave. Suite 1900 Phoenix, AZ 85004 602-845-1200 800-542-5684 Fax: 602-845-1201

Texas

Jonathan Taylor Executive Director Texas Economic Development Corp. Office of the Governor P. O. Box 12428 Austin, TX 78711-2728 512-936-0501 Fax: 512-936-0303

Select Sites

Ed Grant and Caryn Sanchez, Senior Project Managers, Economic Development Salt River Project 602-236-2396 or 602-236-2192 Ed Grant@srpnet.com Caryn.Sanchez@srpnet.com www.powertogrowphx.com

Richard (Buzz) David, President & CEO Amarillo Economic Development Corporation 801 S. Fillmore, Suite 205 Amarillo, TX 79101 806-379-6411 Fax: 806-371-0112 buzz@amarilloedc.com www.amarilloedc.com

James Gandy CEcD, CCIM, President Dave Quinn, Vice President Frisco Economic Development Corporation 6801 Gaylord Parkway, Suite 400 Frisco, TX 75034 972-292-5150 Fax: 972-292-5166 jgandy@friscoedc.com www.FriscoEDC.com www.FriscoTXEB5.com

Mike Hatley, Director of Business Recruitment Lubbock Economic Development Alliance (LEDA) 1500 Broadway, 6th Floor Lubbock, TX 79401 806-749-4500 • 800-687-5330 mike.hatley@lubbockeda.org www.LubbockEDA.org

Kelly Violette, Executive Director Tomball Economic Development Corporation 29201 Quinn Rd., Suite B Tomball, TX 77375 281-401-4086 kviolette@tomballtxedc.org www.tomballtxedc.org

MOUNTAIN Colorado

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

Idaho New Mexico

Steve Vierck, CEcD President/CEO New Mexico Partnership 110 Second Street SW, Ste. 602 Albuquerque, NM 87112 505-247-8500 Fax: 505-338-1117

Oklahoma

Jennifer May, Director of Economic Development City of Sugar Land 2700 Town Center Blvd. North Sugar Land, TX 77479 281-275-2229 Fax: 281-275-2217 ecodev@sugarlandtx.gov www.sugarlandecodev.com

Kristin Downes, Communications Director Oklahoma Department of Commerce 900 N. Stiles Oklahoma City, OK 73104 405-815-6552

Select Sites Kevin Welch, Director Joplin Regional Partnership 320 East 4th Street Joplin, MO 64801 417-624-4150 Fax: 417-624-4303 kwelch@joplincc.com www.joplinregionalpartnership.com

Kurt Foreman, Executive Vice President, Economic Development Greater Oklahoma City Chamber 123 Park Avenue Oklahoma City, OK 73102 405-297-8945 kforeman@okcchamber.com www.greateroklahomacity.com www.greaterokc.tv

Susie Davidson, Manager, Business Development Idaho Department of Commerce 700 W. State Street P.O. Box 83720 Boise, ID 83720-0093 800-842-5858 208-334-2470 Fax: 208-334-2631

Ginger Watkins Economic Development Director Cameron Industrial Foundation 102 E. First Street P.O. Box 432 Cameron, TX 76520 254-697-4970 Fax: 254-697-2345 gwatkins@cameronindustrialfoundation.com www.cameronindustrialfoundation.com

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

Nevada

Steve Hill, Executive Director Governor’s Office of Economic Development Carson City Office 808 West Nye Lane Carson City, NV 89703 800-336-1600 775-687-9900 Fax: 775-687-9925

Fred Welch, Executive Director Conroe Industrial Development Corporation 505 West Davis Street Conroe, TX 77301 281-787-8091 welch@gcedc.org http://www.gcedc.org/

Utah

Eric Voyles Executive VP/CEDO TexAmericas Center 107 Chapel Lane New Boston, Texas 75570 903-223-9841 eric.voyles@texamericascenter.com www.texamericascenter.com

Katherine E. Silvas, Executive Director Converse Economic Development Corporation 403 S. Seguin Converse, Texas 78109 (210) 659-9163 Fax: (210) 659-0964 ksilvas@converseedc.com www.converseedc.com

Montana

Q. Val Hale, Executive Director Governor’s Office of Economic Development 60 East South Temple, 3rd Floor Salt Lake City, UT 84111 801-538-8680

Wyoming

Ben Avery, Director Business & Industry Division Wyoming Business Council 214 West 15th Street Cheyenne, WY 82002 307-777-2863 800-262-3425 Fax: 307-777-2838

PACIFIC Alaska

Joseph L. Jacobson, Director, Division of Economic Development Alaska Department of Commerce, Community & Economic Development 3032 Vintage Park Blvd, Suite 100 Juneau, AK 99801 907-465-2510

California

Governor’s Office of Economic Development (GO-BIZ) 1325 J Street, 18th Floor Sacramento, CA 95811 877-345-4633

110

AREADEVELOPMENT

FOR FREE SITE INFORMATION, CALL

800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com

Mather Kearney, Economic Development Coordinator Sacramento Municipal Utility District (SMUD) P.O. Box 15830 6201 “S” Street, MS B401 Sacramento, CA 95852-1830 916-732-5690; 877-768-3674 mather.kearney@smud.org www.smud.org/econdev

New Brunswick

Robert MacLeod President/CEO Invest NB HSBC Place P.O. Box 6000 Fredericton, NB E3B 5H1 506-453-5471 Fax: 506-444-4277

Cephas Panschow, Development Commissioner Town of Tillsonburg 200 Broadway Tillsonburg, ONT N4G 5A7 Canada 519-842-6428 Ext. 3250 cpanschow@tillsonburg.ca www.tillsonburg.ca

Coming in Q1 2015…. Survey Results

Newfoundland and Labrador Honourable Darin King Minster Newfoundland and Labrador Department of Innovation, Business and Rural Development P.O. Box 8700 West Block, Confederation Building S t. John’s, NL A1B 4J6 709-729-7000 Fax: 709- 729-0654

Nova Scotia

Hawaii State of Hawaii

Department of Business, Economic Development and Tourism P.O. Box 2359 Honolulu, HI 96804 808-586-2355

Oregon

Sean Robbins, Director Business Oregon 775 Summer Street N.E., Ste. 200 Salem, OR 97301-1280 503-986-0110 Fax: 503-945-8736

Washington

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

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

Northwest Territories

Honourable David Ramsay Minister, Industry, Tourism and Investment Northwest Territories P.O. Box 1320 Yellowknife, NT X1A 2L9 867- 873-7361

Nunavut

Prince Edward Island

CANADA

George Kuksuk, Minister Nunavut Economic Development & Transportation Building 1104A Inuksugait Plaza P.O. Box 1000 Station 1500 Iqaluit, NU X0A 0H0 867- 975-7800 Fax: 867- 975-7870

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

Alberta

Ontario

André Williot, Client Service Officer Investment Quebec 600, rue de La Gauchetière Ouest bureau 1500 Montréal, PQ H3B 4L8 1-866-870-0437

Washington State Department of Commerce Business Services Division 2001 6th Avenue, Suite 2600 Seattle, WA 98121 206-256-6100

Robert Fernandez, Executive Director Alberta Economic Development Authority John J. Bowlen Building, 9th Floor Suite 901, 620 7 Avenue SW Calgary, Alberta T2P 0Y8 403-297-3022

British Columbia

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

Manitoba

Honourable Kevin Chief Minister, Jobs and the Economy Manitoba Trade & Investment Corp. The Paris Building 259 Portage Avenue Winnipeg, Manitoba R3B 3P4 204-945-2466 Fax: 204-957-1793

Brad Duguid, MinIster Ontario Ministry of Economic Development, Employment and Infrastructure 8th Floor, Hearst Block 900 Bay Street Toronto, ON M7A 2E1 416-326-1234 1- 866-668-4249 Fax: 416-325-6688

Select Sites Sohail Saeed, Director of Economic Development and Tourism City of Brampton Economic Development Office 2 Wellington Street West Brampton, ON L6Y 4R2 Canada Toll-free: 1-888-381-BRAM edo@brampton.ca www.peoplepoweredeconomy.ca

Jérôme-Antoine Brunelle, Deputy Director Conférence Régionale Des Élus Vallée-Du-HautSaint-Laurent 88 Rue Saint Laurent Salaberry-de-Valleyfield, QC J6S 6J8 Canada 450-370-1881 Ext. 225 Jerome-Antoine.Brunelle@crevhsl.org www.hub-30.com

Saskatchewan

Select Sites Diane Gray, President & CEO CentrePort Canada Inc. Suite 100 – 259 Portage Avenue Winnipeg, MB R3B 2A9 Canada 204-784-1303 Fax: 204-784-1308 DGray@centreport.ca www.centreportcanada.ca

Quebec

Jeff Garrah, Chief Executive Officer Cyril Cooper, Director of Business Development Kingston Economic Development Corporation 945 Princess Street @ Innovation Park Kingston, ON K7L 3N6 Canada 866-665-3326 Fax: 613-546-2882 business@kingstoncanada.com www.kingstoncanada.com

Tony Baumgartner, Executive Director Investment and Industry Development Government of Saskatchewan 300 – 2103 11th Avenue Regina SK S4P 3Z8 306-787-3435 Fax: 306-787-7559

29th Annual Corporate Survey

& 11th Annual Consultants Survey

Yukon Territory

Currie Dixon Minister of Economic Development 212 Main Street, F-1, Suite 209 Whitehorse, Yukon Y1A 2A9 867-393-7191 Fax: 867-393-6412

MEXICO

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

AREA DEVELOPMENT | 2015 Annual Directory 111

ADINDEXWEBDIRECTORY Advertiser

Page

ARIZONA Salt River Project www.PowerToGrowPHX.com Ed Grant@srpnet.com Caryn.Sanchez@srpnet.com

70–73

Greater Fort Lauderdale Alliance www.LessTaxing.com pdoty@gflalliance.org

C3 Joplin Regional Partnership www.joplinregionalpartnership.com kwelch@joplincc.com

NEBRASKA 45

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

NEW HAMPSHIRE

FLORIDA Economic Development Commission of Florida’s Space Coast www.SpaceCoastEDC.org gweiner@SpaceCoastEDC.org

C2, 1

Ameren Services www.Ameren.com/EcDev mkearney@ameren.com

CONNECTICUT Cheshire Economic Development Corporation www.cheshirect.org jsitko@cheshirect.org

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

MISSOURI (& ILLINOIS)

CALIFORNIA Sacramento Municipal Utility District www.smud.org/econdev mather.kearney@smud.org

Page

MISSISSIPPI

ARKANSAS Metro Little Rock Alliance www.MetroLittleRockAlliance.com www.littlerockchamber.com jdean@littlerockchamber.com

Advertiser

Harford County Economic Development 54 www.harfordbusiness.org klholt@harfordcountymd.gov

City of Rochester www.ThinkRochester.biz Karen.Pollard@rochesternh.net

NEW YORK 41

Empire State Development www.Startup.NY.Gov www.Empire.State.ny.us

15, 51

NORTH CAROLINA

Georgia Power www.SelectGeorgia.com econdevga@southernco.com

Electricities www.electricities.com bdaniels@electricities.org

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

INDIANA (& ILLINOIS) Hoosier Energy Economic Development www.HoosierSites.com hgutzwiller@HEPN.com Huntington County Economic Development www.hcued.com mark@hcued.com

JobsOhio www.jobs-ohio.com contact@jobs-ohio.com

City of St. Mary’s Development Office www.stmarysdevelops.com scrotty@cityofstmarys.net

IOWA Iowa Economic Development Authority 56, 57 www.iowaeconomicdevelopment.com business@iowa.gov

Joplin Regional Partnership www.joplinregionalpartnership.com kwelch@joplincc.com

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

Joplin Regional Partnership www.joplinregionalpartnership.com kwelch@joplincc.com

Greater Oklahoma City Partnership www.greateroklahomacity.com www.greaterokc.tv kforeman@okcchamber.com

112

AREADEVELOPMENT

TexAmericas Center www.texamericascenter.com eric.voyles@texamericascenter.com

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

Campbell County Department of Economic Development www.CampbellVirginia.com econdev@campbellcountyva.gov

WISCONSIN

Wisconsin Economic Development Corporation InWisconsin.com wade.goodsell@wedc.org

58, 59

Centreport Canada, Inc. www.CentreportCanada.ca DGray@centreport.ca Brampton Economic Development Office www.PeoplePoweredEconomy.ca edo@brampton.ca

Town of Tillsonburg www.tillsonburg.ca cpanschow@tillsonburg.ca

TENNESSEE

TEXAS 87

105

100, 101

City of Woodstock Economic Development www.cometothecrossroads.com www.cityofwoodstock.ca lmagyar@cityofwoodstock.ca

105

102

103

QUEBEC

Cameron Industrial Foundation 89 www.CameronIndustrialFoundation.com gwatkins@cameronindustrialfoundation.com FOR FREE SITE INFORMATION, CALL 800-735-2732, EXT.

City of Sugar Land www.SugarLandEcoDev.com ecodev@sugarlandtx.gov

Kingston Economic Development Corporation www.KingstonCanada.com business@kingstoncanada.com

MARYLAND City of Bowie www.CityOfBowie.org jhking@cityofbowie.org

Lubbock Economic Development Alliance www.lubbockeda.org mike.hatley@lubbockeda.org

SOUTH CAROLINA

The Amarillo Economic Development Corporation www.amarilloedc.com buzz@amarilloedc.com

Frisco Economic Development Corporation www.FriscoEDC.com www.FriscoTXEB5.com jgandy@friscoedc.com

ONTARIO

Chattanooga Chamber of Commerce www.ChattanoogaCanDo.com cwood@chattanoogachamber.com C4

MANITOBA

OKLAHOMA

Santee Cooper www.scprimesite.com josh.kay@santeecooper.com

KENTUCKY

City of Converse Economic Development Corporation www.converseEDC.com ksilvas@converseedc.com

CANADA

KANSAS Kansas Department of Commerce www.KansasCommerce.com/KBIZ Skelly@kansascommerce.com

Madison Region Economic Partnership www.madisonregion.org info@madisonregion.org

OHIO 63

Page

VIRGINIA

GEORGIA 83

Advertiser Greater Conroe Economic Development Council www.gcedc.org welch@gcedc.org

CRE Vallee-du-Haut-Saint-Laurent www.hub-30.com info@hub-30.com Jerome-Antoine.Brunelle@crevhsl.org

225, OR VISIT US ONLINE AT www.areadevelopment.com

104

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