Area Development Magazine Directory 2016 by Area Development

LESSENING THE TAX BITE: LOCATION MATTERS

CLOUD COMPUTING’S EFFECT ON MANUFACTURING

CURRENT TRENDS IN WORK ENVIRONMENTS

AREADEVELOPMENT S I T E

A N D

F A C I L I T Y

P L A N N I N G

www.areadevelopment.com

www.facilitylocations.com

Directory/2016

HIGH - SPEED NETWORK LOCATIONS Why W hy ffast ast ffiber-optics i b e r - op t i c s a are re attracting ggrowth rowth ccompanies ompanies attracting

ANNUAL DIRECTORY STATE & SELECT SITES CONTACTS

OHIO IS REVOLUTIONIZING THE TECHNOLOGY INDUSTRY. DISCOVER HOW AT JOBS-OHIO.COM/OHIODATA

BIG DATA KNOWS WHAT WILL HAPPEN IN THE FUTURE.

THAT’S WHY IT’S MOVING TO OH1O. IBM. Alliance Data. Teradata. JPMorgan Chase. The list of best-in-class data-driven companies thriving in Ohio is growing by the day. Hmmm. What do they know that you don’t? THE FUTURE IS HAPPENING IN OHIO. GET THERE FIRST.

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CONTENTS 28

FEATURES 16 Cloud Computing’s

COVER STORY

Effect on Manufacturing

Initially used for accessing and sharing data, cloud computing now allows manufacturers to connect machines, materials, and people in real time.

Cloud Computing In Manufacturing

20 Why Location Matters

to Manufacturers in Lessening the Tax Bite

HIGH-SPEED NETWORK LOCATIONS

A manufacturing company must carefully assess the type of taxes imposed and the methodology in computing these taxes in each location under consideration.

Cities across the nation are installing high-speed fiber-optic networks for their own institutional purposes, with the added benefit of attracting growing companies.

30 Logistics Industry

Continues to Evolve

Expansion of the Panama Canal, increasing use of intermodal facilities, and siting of new mega distribution facilities are among the latest logistics trends.

2016 ANNUAL DIRECTORY

An index to state information appears on page 45. State information is grouped by region. Listings of all state contacts and Select Sites contacts follow all regional sections and begin on page 100. 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.

Exclusive Online Content

www.areadevelopment.com

NOW ONLINE... In Focus: How 3-D Printing Will Impact the Supply Chain and Commercial Real Estate Corporate Real Estate’s Battle for Tech Talent: The CRE function is waging a battle for tech talent against a host of competitors. Location Notebook: Well-Connected Tennessee Innovating to Distribute Success Location Notebook: Jackson, Tennessee, Takes a Regional Approach Area Development® Site & Facility Planning (USPS 345-510) is published five times per year (Q1, Q2, Q3, and Q4 — 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 50 | Number 5 ANNUAL DIRECTORY

Quote:

The 20th century was about getting around. The 21st century will be about staying in a place worth staying in. Jim Kunstler (1948–

), American author, social critic, and public speaker

32 Current Trends in Employee

42 Planning For Plant

Work Environments

Expansion: A “How-To” on Electrical Substations

Companies are redesigning their facilities to reflect how each generation of employees works, with the result being greater collaboration and improved productivity.

Expanding an electrical substation can present challenges, but careful planning, collaboration with the utility, and choosing the right equipment will ensure a successful outcome.

38 Adopting BIM for

Facility Management: Handle With Care

36 Gold & Silver Shovel Awards Governors and economic development leaders in 11 states proudly display their Gold & Silver Shovel awards.

BIM can deliver tangible value and enable efficiencies for facility managers, but it’s a process that should be well planned and prioritized, with an eye for the challenges that lie ahead.

DEPARTMENTS 4 Editor’s note The “Digital Thread” Connecting Your Firm to the Future

6 In Focus Why the NLRB’s Browning-Ferris Decision Will be a Bad Deal for Manufacturers

8 In The Know

• Business Location Tracker • Consumer Demand to Drive Job Growth and Manufacturing Production • Agreement Reached on Bill to Fix Nation’s Aging Infrastructure, Congested Highways

10 First Person Daron Gifford, Management Consulting Partner, Plante Moran

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

12 Front Line IQ Orlando Brings High-Tech Life Science Innovation to Central Florida

14 Front Line Drones Redefine the Use of Commercial Airspace

104 Ad Index/

Web Directory

Online Database Resources www.facilitylocations.com Follow Us On www.fastfacility.com

POSTMASTER: Send address changes to Area Development, Circulation Department, 400 Post Ave., Westbury, NY 11590. Subscribers requesting address changes must provide both old and new addresses. © Copyright 2015 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 | 2016 Annual Directory

EDITOR’SNOTE

ANNUAL DIRECTORY/2016

The “Digital Thread” Connecting Your Firm to the Future Although it’s been six years since the official start of the economic recovery, the road to prosperity has been bumpy for manufacturers. Unemployment stands at 5 percent — the lowest level since April 2008 — and there has been a rebound in consumer spending. However, a stronger U.S. dollar, lower crude oil prices, and weaker growth in foreign markets have been challenges for the manufacturing sector. Despite this, the Manufacturers Alliance for Productivity and Innovation predicts the sector will register 1.8 percent growth for 2015, 2.6 percent in 2016, and 3 percent the following year. “Innovation” seems to be the key word if manufacturing is to fulfill these growth projections.

www.areadevelopment.com EDITORIAL E-mail: editor@areadevelopment.com Editor Geraldine Gambale Staff and Contributing Editors Lisa Bastian Cynthia Kincaid James Berger Beth Mattson-Teig Dale D. Buss Phillip Perry Dave Claborn Mali R. Schantz-Feld Mark Crawford Steve Stackhouse -Kaelble Dan Emerson Karen Thuermer Clare L. Goldsberry Craig Guillot DESIGN/PRODUCTION

According to an August 2015 report from McKinsey & Company, “the explosion in data and new computing capabilities” is leading to “innovations that will change the nature of manufacturing itself.” Over the next 10 years, says the report, “digital manufacturing technologies will allow companies to connect physical assets by a ‘digital thread’ — unleashing a seamless flow of data across the value chain,” linking everything from product design and testing to production and sales. All these activities generate data that will prove invaluable to companies that know how to harness, analyze, and share the data. Cloud computing allows them to do this, connecting machines, materials, and people in real time (see article on page 16.) In order to attract the companies taking part in this digital revolution, communities across the nation are placing bets on “fast fiber,” as described in our cover story this month (beginning on page 24). These metro areas are positioning themselves as “smart cities” that offer forward-thinking companies robust connectivity. “The digitization of physical assets” is the future of manufacturing,” says Jim Joyce, a specialist leader for new technologies at Deloitte.

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

Additional articles in this issue discuss facility expansion and management — concerns for any growing company. And finally we present our Annual Directory of state-level and Select Sites contacts (organized regionally beginning on page 45), as well as information on each state’s demographics, industries, taxes, and manufacturing employment. More information on all of the Select Sites and contact information for thousands of other economic development organizations can be accessed on www.FacilityLocations.com. These resources can help your company as it continues to navigate the digital revolution to grow and prosper.

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

2016 Editorial Advisory Board Christine Bustamante National Co-Leader, Global Location and Expansion Services, KPMG

Scott Kupperman Founder, Kupperman Location Solutions, LLC

Gregory Burkart Managing Director, Specialty Tax Practice Leader, Duff & Phelps, LLC

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., Managing Director Michael McDermott Consulting Manager, & Practice Leader, Site Selection & Business Global Business Consulting, Incentives, BDO Consulting Cushman & Wakefield Dean J. Uminski Executive, Bradley Migdal Executive Managing Director, Site Selection Consulting, Crowe Horwath LLP Business Incentives Advisory Services, Dan White Senior Economist, Transwestern Moody’s Analytics John Morris Leader of Industrial Services for the Americas, Cushman & Wakefield, Inc.

Les Cranmer Senior Managing Director, Savills Studley Dennis Cuneo Partner, Fisher & Phillips LLP Tim Feemster Managing Principal, Foremost Quality Logistics Larry Gigerich Managing Director, Ginovus Stephen Gray CEO, Gray Construction Minah C. Hall Managing Director, True Partners Consulting LLC

AREA DEVELOPMENT

Kathy Mussio Managing Partner, Atlas Insight

EXECUTIVE OFFICES 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:

516.338.0900 800.735.2732 516.338.0100

MEMBER of

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The road to your company’s proﬁtability and success may run right though central and southern Indiana or southeastern Illinois. And in fact that road may look a lot like a highway, runway, railway or river port. That’s because Hoosier Energy has some of the best sites for distribution and logistical operations that the Midwest has to offer. If you’re building, expanding or relocating, you should make it a point to talk with us. Because while supplying you the power you need is job one, getting your product from point A to point B comes second nature. Let’s talk. You’ll ﬁnd Hoosier hospitality also means Hoosier accessibility. HOOSIERSITES.COM

812-876-0294

Hoosier Energy Rural Electric Cooperative is an equal opportunity employer.

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INFOCUS

Why the NLRB’s Browning-Ferris Decision Will be a Bad Deal for Manufacturers By David C. Burton and Patrick O. Gottschalk, Williams Mullen

Over the past 30 years many manufacturing companies have seen a decline in union representation at new and existing plants. At the same time, many manufacturers have moved to different staffing models, either using staffing agencies to provide temporary employees to perform discrete low-level tasks or to provide entry-level workers who may end up being hired by the company once they have satisfactorily completed a probationary period. One distinct advantage of these arrangements is that these workers were the employees of the temp agency or outside contractor and, therefore, could not obtain a union bargaining status with the manufacturer. However, the world is changing rapidly, and employers need to be ready for new union inroads into the manufacturing sector courtesy of the National Labor Relations Board (NLRB). David C. Burton is the Head of the Labor and Employment Section at the law firm of Williams Mullen.

The outside contractor and temporary labor model worked for manufacturing employers when it came to union organizing activities because it was very difficult for unions to gain a foothold with employees who were assigned to work in a plant on a temporary basis; additionally, it was difficult for a union to assert that the manufacturer was a joint employer. All of this changed with the NLRB’s recent decision in Browning-Ferris Industries, which significantly changed the test for determining whether two employers are actually joint employers. In the Browning-Ferris case, the company used a temporary staffing agency for personnel to do menial floor tasks at its Newby Island recycling facility. A local Teamster’s union organized the temporary workers and filed an election petition seeking to represent them and, more importantly, asserted that Browning-Ferris was a joint employer with the temporary staffing agency. The NLRB agreed with the Teamster’s position finding that, going forward, the test for joint employer status will focus not on the direct control of the employees, but on whether each or both employers either directly or indirectly “codetermine those matters governing the essential terms and conditions of employment.” Such essential terms include wages, hours, number of workers to be supplied, scheduling, assignment of work, and determining the manner and method of work performance.

Patrick O. Gottschalk is the Chair of the Economic Development Team at Williams Mullen. He also served as Virginia Secretary of Commerce and Trade for Governor (now U.S. Senator) Tim Kaine from 2006–2010.

Given this new standard, there are precious few temporary staffing situations in the manufacturing industry that will not meet the joint employer status. When the new joint employer test is coupled with the current NLRB’s penchant for approving union organized micro-units, most observers believe the Browning-Ferris decision will be used by labor unions to get a foot into the door of many manufacturing employers by simply going after the small group of temporary employees in a plant and then asserting that the manufacturer is a joint employer with the staffing company. Not surprisingly, those temporary workers are likely to be paid less and receive less in the way of benefits, if any, than the primary employees. A new battleground has been staked in the manufacturing world that may well result in heightened union activity. It will be important for all employers who use staffing agencies to examine the relationship with the temporary employees to ascertain if it can armor itself against arguments that it is a joint employer, and, if it is at risk, to determine if the temporary employee model is still viable in the long run.

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Where did scientists print a fully functioning Shelby Cobra in just six weeks? Knoxville.

Where some of the smartest people in the world choose to live and work. Cherokee Farm is a research and development park that gives businesses access to the most powerful tools available, along with the internationally renowned researchers at the University of Tennessee and Oak Ridge National Laboratory. Parcels are available for immediate development and plans are underway for suite leasing. *President Obama said he wanted to drive it.

Come experiment with us. Visit CherokeeFarm.org

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BUSINESS LOCATION TRACKER Daimler Trucks Investing $375 Million in Its Michigan Facilities

Service Provider to Fueling Industry Locates in Reno Franzen-Hill, a company that serves the fueling industry, has opened a new operations center in Reno, Nevada. The company plans to hire up to 50 employees.

Production of the Daimler Trucks’ new DD5 and DD8 medium-duty engines at its “Detroit” (Redford) manufacturing facility will create some 160 jobs and will be powering vehicles by the end of 2016.

Ford Plans $1.3 Billion Expansion in Louisville, Kentucky Ford Motor Company’s investment will create 2,000 new jobs at its Louisville truck plant in support of the launch of the all-new 2017 Ford F-Series Super Duty truck.

Japanese Pharma Company Opens Research Center in New Jersey Chugai Pharma USA Inc. has opened its new office dedicated to translational clinical research in Berkeley Heights, New Jersey, with the ultimate goal of commercializing innovative pharmaceuticals.

Home Improvement Chain Spending $25 Million in Kansas Midwest Manufacturing, a division of Menard, Inc., plans to be the first company to establish its production plant on 90 acres in Lawrence’s VenturePark, creating 100 jobs.

Plastics Manufacturer to Invest $115 Million in Tennessee Lifetime Products, Inc., a leader in blow-molded plastic products, will locate new manufacturing and distribution operations in Knox County, Tennessee, resulting in the creation of 500 jobs.

Mary Kay Plans Texas Manufacturing/R&D Center Mary Kay Inc., a top beauty brand and direct seller, will establish its $100 million global manufacturing and R&D hub in Lewisville, Texas, with completion set for 2018. Its global headquarters is in nearby Addison.

Dassault Falcon Jet Expands Its Little Rock Completion Center Dassault Falcon Jet has expanded its Little Rock, Arkansas, facility. The $60 million project includes a 250,000-square-foot hangar for the Falcon 8X and 5X jets.

Consumer Demand to Drive Job Growth and Manufacturing Production In late November, the MAPI Foundation — the research affiliate of the Manufacturers Alliance for Productivity and Innovation — predicted that inflationadjusted GDP would expand 2.9 percent in 2016, 2.7 percent in 2017, and 2.5 percent in 2018. All estimates exceed the 2.4 percent GDP growth expected for 2015. Manufacturing production over the next several years is also projected to exceed the 1.8 percent growth expected in 2015. Predictions are for manufacturing output to grow 2.6 percent in 2016, 3 percent in 2017, and 2.8 percent in 2018, according to MAPI. “Consistently strong job growth is driving the economy,” says MAPI Foundation Chief Economist Daniel J. Meckstroth. “New workers mean more income, which translates into more spending.” It’s expected that 46,000 manufacturing jobs will have been added in 2015, with 100,000 more in 2016, and an additional 110,000 in 2017. Track business relocations and expansions on Area Development Online.

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A global leader in the manufacture of aluminum products and solutions for a broad scope of markets, Constellium, will invest $32 million to establish a production facility in Bartow County, Georgia.

Agreement Reached on Bill to Fix Nation’s Aging Infrastructure, Congested Highways The House and Senate reached an agreement in early December 2015 on a five-year, $305 billion transportation bill, ending a seven-year cycle of temporary extensions and threatened shutdowns of transportation programs. The bill increases highway spending by 15 percent and transit spending by 18 percent, authorizing more than $200 billion for highway projects as well as $10 billion over five years for Amtrak, $12 billion for mass transit, and $1 billion for vehicle safety programs. However, it falls short of the $478 billion, six-year bill President Obama had proposed. “You are not going to build a major road if you are worried about the funding. What we have done is extraordinary,” said Sen. Barbara Boxer (D-CA), a key negotiator on the final bill. “I predict that this bill is going to give the economy a real boost because of the certainty it is bringing and because of the fact that millions of jobs will be created.” Studies/Research/Papers on Area Development Online.

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

Aluminum Manufacturer to Create 150 Jobs in Georgia

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

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

FIRSTPERSON DARON GIFFORD

MANAGEMENT CONSULTING PARTNER

What are the major trends you see impacting the automotive OEMs’ supply chain given the complexity of that chain? Gifford: There are several trends that we’re seeing impact the automotive supply chain. First, there’s the geographic move toward a regional supply base. Automakers who operate large assembly plants want their suppliers near these plants. It’s obviously selfserving; they want access to components and fast response from their suppliers. Secondly, they’re reassessing the cost equation. What is the total cost to get the parts on the vehicle, which includes labor plus transportation? There’s also the quality factor: being responsive to engineering changes and problems that arise has driven the OEMs and suppliers to have the plants as close as possible. Many of the foreign domestics are encouraging their suppliers from Japan and Europe to locate in the U.S. Has that been successful? Gifford: The suppliers are trying to follow their customer to maintain that close relationship benefiting both the OEM and the supplier. The European suppliers are close to their OEMs, and have built long-term relationships and trust that they want to maintain. BMW, for example, encourages their suppliers to come to the U.S. There are also the cultural aspects, particularly with domestic U.S. suppliers. The Japanese and European suppliers, as part of their OEM network, are closer to, and more aligned with, their customers. Because the cultures are different, it takes time to bring production standards here. The Europeans are trying to move engineering to the U.S. so there’s not that huge distance between U.S. management and the “home office” in Europe. An interesting example of multiple cultures is Volvo, with a plant being built in South Carolina, managed by the Swedish, and being Chinese owned. It appears that the Southeast U.S. has fast become the new automotive region. Can you speak to that geographic movement? What are some of the benefits? Gifford: It’s the need to be close to their U.S. customer base that is driving a lot of the movement. There is a large influx of automotive production from every major OEM, except for the domestic automakers. The Southeast has been attractive because those states have been aggressive in their

AREA DEVELOPMENT

PLANTE MORAN

willingness to make it attractive to locate OEM and supplier plants there. And the challenges? Gifford: When the evaluation process is taking place, worker education and training is a key factor. That’s one of the challenges. The Southeast doesn’t have the same level of skills for the automotive industry as the Upper Midwest; while the skills may not be as high, the opportunity is good for the Southeast to provide jobs for their people. Historically employee development was thought of as soft money, but now it’s a direct investment. The automotive companies know they’ll have to spend the money to get the workers up to par. Southern States, such as Georgia, South Carolina and Alabama, have thrown a lot of dollars on the table, as well as provided funding for training and skills development. Many skills are disappearing from the industry as older workers retire, particularly in the Upper Midwest, as that region has been slow to respond. Some workers may stay on longer, because of the economy, but over the next 10 years, these skilled workers will be retiring. What about the fact that the Southeast was attractive because these states are right-to-work states rather than unionized? Gifford: The first wave of thinking was that this is a non-union region, but that’s becoming less of a differentiator. The unions understand the labor competition, but they struggle with an effective strategy to compete in the South. Mexico’s automotive industry is booming. Can you speak a bit about that trend and how it might be affecting U.S. automakers? Gifford: That will be challenging to the supply base. We’re seeing the OEMs expanding and establishing new plants in Mexico for vehicle production, which has the Tier 1 suppliers evaluating how much it will cost to serve these

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OEMs, and how do they expand effectively? There’s a skills shortage in Mexico as well. There’s only so much expertise to go around, so we’re seeing a lot more plant automation. The suppliers already in Mexico are challenged, as they’re not always located where their OEM customers are putting in new plants. They’re trying to figure out whether to import parts from the U.S., ship from other plants in Mexico, or site a plant near the assembly plant. To do that, they need enough assurance they’ll get a return on their investment. What do you see as a major challenge of the future? Gifford: Keeping up with change! The architecture of the vehicle will change drastically and will revolutionize the way the vehicle is structured and built. There will be 10 times the electronics in the car of the future than we have today; more electrification, electronics for safety, greater fuel efficiency — the overall structure of the car will be reformed. Artificial intelligence (AI) will change it as well. Toyota is talking about investing a billion dollars in AI so that the computer in the car can do what the human can do. The technology is out there,

but the question is how long will it take to develop? And how smart will the car need to be? Another challenge is people. The industry is growing so rapidly, and it’s so lean on expertise and skills that there’s a need to transfer production methodology, as well as management structure, from plant to plant, enabling these transitions. We’re definitely seeing more joint ventures with a supplier that already has a local operation. Suppliers will partner up rather than create their own greenfield facility.

THE ASSIGNMENT

One of Area Development’s staff editors recently interviewed Daron Gifford, the partner leading automotive industry strategy consulting at accounting firm and consultancy Plante Moran in Detroit. Gifford provides us with some deep insights into how the comeback in the auto industry has given new opportunities to the hundreds of Tier 1 suppliers that provide millions of parts to the OEM assembly plants, what’s driving this supply chain, and the new competitive issues facing the U.S. automotive industry.

When it comes to successfully expanding or relocating your business,

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AREA DEVELOPMENT | 2016 Annual Directory 11 09/12/13 10:10 PM

IQ Orlando Brings High-Tech Life Science Innovation to Central Florida

n 2014, the University of Central Florida, Tavistock Group, Florida Hospital, and AHG Group looked at ways to expand Orlando’s life science and healthcare sectors into a nationally recognized healthcare cluster. This work included benchmarking national and international healthcare and high-tech clusters and innovation ecosystems to review and compare best practices. They also evaluated how their combined existing resources could be leveraged to grow these capabilities and support Florida’s life science and healthcare ecosystem. Resources include: • University of Central Florida, the nation’s second-largest university with over 60,000 students • Lake Nona Medical City (Tavistock Group), the nation’s largest greenfield medical city development • Health Village (Florida Hospital), a 172-acre urban medical development focused on advancing early-stage life sciences and healthcare innovation • The Florida Advanced Manufacturing Research Center (University of Central Florida), which develops smart sensor technologies • AHG Group’s expertise at sourcing and vetting early to mid-stage foreign life science companies that want to enter the U.S. healthcare market Encouraged by the positive impacts they could achieve together, the four founding partners established IQ Orlando LLC in late 2014. The company (IQ stands for “innovation quotient”) has three primary strategic goals: 1. Identify life science and healthcare intellectual property across the state of Florida that resides in research centers, academic institutions, incubators, and accelerators and within the venture community 2. Recruit early to mid-stage life science and healthcare companies that are outside Florida, as well as international companies, that are seeking an innovation ecosystem to locate, launch, and accelerate their activities 3. Invest in a capital network that will benefit companies in need of various sources of funding, including angel funding,

AREA DEVELOPMENT

By Mark Crawford

venture capital, private equity, corporate venture and/or non-dilutive sources, including state and federal funding

Target Industries IQ Orlando is focused on five key life science and healthcare sectors: software and information and communications technologies (ICT), medical devices, healthcare services, biotech, and pharma. The group is especially eager to partner with disruptive early and mid-stage companies. Currently IQ Orlando is working with companies from three countries and 17 states that comprise all five sectors: software and ICT (44 percent), medical devices (36 percent), healthcare services (8 percent), biotech (6 percent), and pharma (6 percent). They represent various stages of growth, ranging from the earliest stages of research and development through validation, regulatory registration, and commercialization. “These companies are seeking to leverage the collective strength of our assets, which include research and development resources, facilities, access to capital, clinical validation, training and education, and economic development support,” states Rick Wassel, managing director for IQ Orlando. “Currently, 58 percent of the initial IQ Orlando companies represent potential for recruitment from outside of Florida and 90 percent have immediate capital requirements.” One of these companies is SMRxT, which recently moved its corporate headquarters and smart pill-bottle manufacturing operations from New York and Virginia to the Orlando area. It is conducting product validation studies, hiring new staff, building its product pipeline, and establishing strategic partnerships with both Florida-based and national organizations.

Moving Forward Where does Wassel see Orlando as an innovative healthcare destination cluster two to three years from now? “I am confident IQ Orlando will be an important catalyst that accelerates Florida’s life science and healthcare cluster activities,” he says. “We expect to attract significant sources of capital to support the growth and development of disruptive companies in these markets.”

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

From An Edge On Competition To The Edge Of Your Seat.

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FRONTLINE

Drones Redefine the Use of Commercial Airspace

t’s not easy creating new airspace rules for drones. The Federal Aviation Administration (FAA) is under heavy pressure to come up with comprehensive regulations for the commercial use of unmanned aerial vehicles (UAVs). Although these laws have yet to be written, the FAA has granted more than 2,000 permits for drone testing or use. For example, the FAA has given Amazon permission to test drones for package delivery. Wal-Mart has requested permission to test drones for home delivery, curbside pickup, and inventory management. Google, too, wants in on the drone action — for package delivery as well as data collection and providing Internet access.

Guidelines The FAA is struggling to keep up — the administration had targeted September 2015 for establishing regulations for commercial use of drones, but that date has now been pushed back to 2016. It has, however, issued a draft proposal that discusses operational limitations, operator certification and responsibilities, aircraft requirements, and model-aircraft operator responsibilities. And, in November 2015, the FAA released new guidance for the monitoring of recreational drones, including creating a database for privately owned drones. Amazon has proposed two low-altitude layers of airspace for drones — a “slow lane” for local traffic below 200 feet and a “fast lane” between 200 and 400 feet. The 400–500-foot layer would be a no-fly zone. The FAA is working with NASA and the private sector to work out a myriad of operational and technical details, including tracking technology and crash prevention. For example, Verizon, Google, and Amazon are collaborating with NASA to explore the possibility of using cell towers to help moni-

AREA DEVELOPMENT

By Mark Crawford

tor drones and exchange critical information between UAVs and operators. The drone business is expected to skyrocket when the FAA does establish its guidelines, whenever that may be. Private-sector companies across a wide range of industries are expected to invest heavily in drones to increase their operational efficiencies and reduce risk.

Impact on Telecommunications Experts project that the use of drones will create more than 100,000 jobs and generate nearly half a billion dollars in tax revenue by 2025. Drones are also expected to be a huge boon to the telecommunications industry, especially wireless companies that invest in advanced technologies such as LTE (long-term evolution), a wide-area wireless technology that makes it possible for drones to transmit vast amounts of data at fast speeds across long distances. “One of the most promising commercial aspects of UAVs remains their capacity to collect, store, analyze, and transmit vast amounts of valuable data,” says David Famolari, director for Verizon Ventures, a division of Verizon that invests in disruptive, cutting-edge technologies. “UAV devices use LTE networks to deliver sensor data for processing, analysis, and decision-making mid-flight, as well as for receiving command-and-control inputs in real time. Flight coordinates could be delivered over the network to dynamically update flight plans, reroute missions, and clear airspace when necessary. LTE connectivity gives UAV operators real-time visibility beyond the line of sight, allowing them to better manage their fleets, track aircraft, and run more efficient operations. Simply put, UAVs connected to an LTE network will be safer, more reliable stewards of shared airspace.”

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Made in Mississippi – A Stamp of Quality and Innovation Success in today’s economy requires a strong competitive advantage, and companies from around the world are finding that advantage in Mississippi. Economic development professionals at all levels collaborate to ensure companies have the tools and resources to be successful in Mississippi well into the future. Low energy rates and competitive operating costs combine with the state’s one-stop permitting process to strengthen the friendly business climate. A major factor in Mississippi’s strong business climate is its dedicated, productive workforce. Working with the state’s 15 community colleges and four research universities, Mississippi offers customized workforce training programs to guarantee the state’s workers are prepared to exceed companies’ expectations. In 2015, leading companies across a variety of industries realized the advantages of a Mississippi location and chose to

Gov. Phil Bryant, Hikomitsu Noji, president of Yokohama Rubber Company, Ltd., and ofﬁcials from Yokohama Corporation celebrate the grand opening of the ﬁrst phase of the company’s new commercial truck tire manufacturing plant in West Point, Miss.

invest in the state. These include companies in the furniture

the company’s investment and employment levels up to four times

manufacturing industry, which experienced significant growth

in accordance with future growth.

throughout the year. For nearly two decades, upholstered furniture

In November, Nissan once again placed Mississippi on the

manufacturer H.M. Richards has been a valued member of

global stage with the launch of the newly redesigned 2016 Nissan

Northeast Mississippi’s business community, employing nearly

Titan XD pickup truck. The Titan, assembled exclusively at the

1,000 at its Guntown, Miss., location. With its distribution through

Canton facility, came into production in 2004. The launch of the

major furniture and department stores in the U.S. and Canada,

Titan, which now offers a diesel model, marks a major body style

the company announced in June it was expanding in Guntown by

redesign to the full-size pickup. Nissan Canton employs more than

constructing a new facility and creating 500 new jobs.

6,000 team members engaged in the production of Nissan’s Titan,

Other furniture manufacturers that announced expansions or locations in 2015 include United Furniture, Southern Motion, VIP Cinema Seating, Kellex Seating, Emerald Home Furnishings,

Altima, Armada, Murano and Frontier models, as well as the NV cargo and passenger vans. Mississippi welcomed many new industries in 2015, as well –

Fusion Furniture and Ashley Furniture. Combined, these companies

including silicon metal production. In October, Mississippi Silicon

are generating nearly 1,300 new jobs in the Northeast Mississippi

officially opened its $200 million plant in Burnsville, the first of

region. Additionally, Ashley Furniture’s expansion announcement in

its kind to be built in the U.S. in 40 years. The facility, which will

October increases the company’s footprint in Ecru, Miss., to nearly

employ 200, is expected to be one of the most efficient and cost-

2 million square feet, making it the largest upholstery production

competitive silicon metal production facilities in the world.

plant in the world. Mississippi’s thriving automotive industry celebrated several

These great companies join industry leaders such as RollsRoyce, GE Aviation, Chevron, Ingalls Shipbuilding, Northrop

milestones in 2015, including the opening of the first phase of

Grumman, BorgWarner and Toyota – all of whom call Mississippi

Yokohama’s commercial truck tire plant and the launch of the

home. The long list of industries choosing Mississippi is a testament

2016 Nissan Titan XD at Nissan’s Canton, Miss., plant. In October,

to the pride Mississippi takes in offering companies a supportive

Yokohama opened the first phase of company’s newest commercial

business environment.

truck tire manufacturing plant in West Point, Miss. Phase I of the

Opportunities are abundant in Mississippi. To learn more,

project represents a $300 million corporate investment and the

visit www.mississippi.org or call the Locate in Mississippi team at

creation of 500 jobs. Potential expansions are expected to increase

1.800.360.3323. AREA DEVELOPMENT | 2016 Annual Directory

FACILITY MANAGEMENT

Cloud Computing’s Effect on Manufacturing Initially used for accessing and sharing data, cloud computing now allows manufacturers to connect machines, materials, and people in real time. By Dan Emerson

efore introducing cloud-based computing in 2013 and 2014, Evansville, Ind.-based Accuride Corp. managed its multifacility manufacturing operation with a system that seems in retrospect primitive and cumbersome. At each plant, “the people on the lines were writing down things like how many parts they made, how many were scrap, what problems they had with the machines, etc.,” says Paul Wright, director of IT for Accuride, which makes wheels, wheel-end components, and other products for commercial vehicles. Those pieces of paper were then used to write numbers on a board every hour, and then entered once a day into an Excel spreadsheet, which was then used on a daily basis to create reports for management; these were then transposed on a monthly basis into PowerPoint. “We now are able to get that information directly from the machines, taking out three layers of wasted time,” Wright says. The machines, and the rest of Accuride’s operations, are linked using applications developed by Troy, Mich.-based Plex Systems. Accuride’s experience is one example of the impact cloud computing — using the Internet to remotely host software, data, and related infrastructure — is having on manufacturing. At earlier stages of the cloud’s evolution as a business tool, manufacturers mainly used it for the same kinds of functions as other industries — accessing and sharing data. But, as software developers have created more, industry-specific applications, one of its most important capabilities for manufacturers has become real-time connectivity among machines, materials, peoples, tools, and systems on the shop floor.

Catalyst for Revolution in Manufacturing Jim Joyce, a specialist leader for new technologies with Deloitte, says cloud technology has been the catalyst for “a revolution that is going on in manufacturing; there is this substitution of information for assets, and inventory for knowledge of where certain manufacturing capabilities, which you can access, may be…Increasingly, supply chains are designed to move information, and not physical products. As that digitization of manufacturing and the supply chain evolves, one of the key elements is going to be the cloud.” For manufacturing managers, Joyce says, the cloud triggers “a mind-shift to ‘How do I get full value?’ It’s part of a very general trend — using information to get better utilization of investments.” For manufacturers, the cloud “opens up endless possibilities” for networking and sharing resources, says Gavin Davidson, Industry Lead for Manufacturing for cloud software developer NetSuite, Inc. Davidson says the cloud has introduced the concept of “location irrelevance” to manufacturing. It’s the concept that “it should not matter where the product stays, whether you make it or somebody makes it for you. You should be able to expect the same amount of information from the supplier and the manufacturing process as if you were making it yourself. You can get daily or hourly feedback on how many (units) are made, how many are scrapped, how efficient the machinery is...” The cloud has equal value as a quality-improvement tool, Davidson notes, enabling the user to “take your

Cloud Computing In Manufacturing

AREA DEVELOPMENT

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best practices established in your own facility and share them with your suppliers, so you end up with the same quality.” Davidson cites a couple of examples drawn from NetSuite’s customer base. One is a Dallas-based manufacturer of fasteners who can monitor and control operation of manufacturing facilities in Cleveland and Los Angeles. “The guy in Dallas has complete control to run the two facilities and never has to visit there,” he says. Another company, a large carpet manufacturer, remotely operates and monitors a large production facility in China from its location in the U.S.

Using Tech Solutions Across the Enterprise The cloud’s present and future impact was a prime topic of discussion at a recent National Association of Manufacturers board meeting, says Brian Raymond, NAM’s director of Technology and Domestic Economic Policy. “It’s become a transformative technology, bringing about transformative opportunities. The Internet of things has become almost ubiquitous, says Raymond, “and part of the business strategy of all manufacturers is figuring out how the Internet of Things is going to change competition, and change your company.” Raymond says other questions being asked across the industry include “how we can use tech solutions across the enterprise, the shop floor or embedded in products, to deliver better products, reduce costs, and increase safety — all the things technology has brought to other industries. The cloud is enabling manufacturers to take more advantage of technology.” Adoption is growing rapidly. Earlier this year, market research firm International Data Corp. predicted that public cloud computing would reach almost $70 billion worldwide in 2015, with the top five verticals (“discrete” manufacturing, banking, professional services, process manufacturing, and retail) accounting for approximately 45 percent of the total spent. Take the example of Accuride: The company launched cloud ERP (enterprise resource management) at its corporate office in January 2013 and began rolling out its cloud manufacturing system in January 2014, according to Paul Wright. Accuride initially used the cloud to link with its Henderson, Ky., plant and subsequently its manufacturing facilities in Erie, Pa.; London. Ont.; Monterrey, Mexico; Batavia, Ill.; Rockford, Ill.; and Camden, S.C.

The apps have replaced seven different ERPs, Wright notes. “Using web-based tools, we’re able to understand manufacturing performance in real time, directly connected to the machines…The level of visibility we have is almost like being on the factory floor. Every time one of our machines cycles to produce a part, that signals across our ERP system that raw material has been consumed, and sends that signal through the cloud. We have full visibility, so we can measure operational performance based on that data.” The system also extends to Accuride’s supply chain, with online portals the company’s suppliers can use to see and fulfill their material orders. “We can ‘see’ the product when they

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Vital. Useful. Updated Daily. The best information on site selection and facility planning available online • Current News: Real estate & industry news, and economic indicator reports updated throughout the day • Valuable Resources: Tax and incentive information, development contacts, and insightful surveys • Latest Studies, Research,

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Aggregated from the top consultants, think tanks and institutions, and distilled into usable information • Reviewable Archives: Search the Area Development archives for content, opinion, and reports spanning the last five years from the top industry minds

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Providing What Others Don’t

are preparing to ship it, and see it in transit,” Wright says. The real-time visibility is very valuable for lean and just-intime supply chain logistics, “when you have extended lead time in bringing a product from overseas,” he explains. Of course, data security is also a key concern, and — especially in the earlier stages of server-based data-sharing — kept many companies from going all-in. But manufacturers and vendors say today’s cloud systems have proven their ability to safeguard data. “When we’re connecting to the cloud, all we have to do is maintain our firewall integrity; we’re not responsible for management of all that data,” Wright says. “We’ve put it in the hands of people who do that professionally, which is even safer than hosting our own system.”

agement strategies and location decisions. What those will be remains to be seen, since the cloud’s ramifications are only just beginning to play out. One possibility would be “pop-up” or mobile manufacturing facilities, which companies could deploy to gain proximity to customers — especially those in foreign markets — or suppliers. Joyce’s advice for manufacturing companies: “This is the future; the digitization of physical assets, taking advantage of underused assets to lower your costs. This is something everyone should, at the very least, keep an eye on, and possibly even run a couple of experiments to teach their organizations about it.” ■

Small Companies Also Benefit Relatively small manufacturing companies are also using the cloud. Bozeman, Mont.-based Mystery Ranch, a manufacturer of high-end backpacks and backpacking accessories, uses cloud software to run every part of its operations: design and engineering, production, quality control, research and testing, manufacturing, inventory management, employee management, financials, vendor relations, e-commerce, sales and marketing. The cloud-based function that has helped Mystery Ranch the most enables the company to manage operations at five contract manufacturing locations in the U.S., Vietnam, and the Philippines, says Kendra Clark, Mystery Ranch’s IT project manager. The cloud-based system “provides visibility of consumption of raw materials, also time-stamps what products have been completed, and either ships products direct to customers or transfers them here for direct sales. Overseas manufacturing operations can be challenging for a number of reasons,” she notes, citing a typical lead-time of six to nine weeks for ordering materials. But “having the cloud has enabled us to work smarter, not harder.” According to Jim Joyce at Deloitte, “Smaller companies tend to get involved in cloud manufacturing out of economic necessity; they may not have the capital to purchase certain equipment. Large companies are motivated by fairly sophisticated financial calculations on return on assets.” Obviously, the remote-management capability enabled by cloud computing should have major implications for companies’ real estate and facility man-

MADE IN MISSISSIPPI IS A STAMP OF QUALITY WORLDWIDE. Dan Bednarzyk, Nissan V.P. for Total Delivered Cost

MISSISSIPPIANS WORK Mississippi’s highly 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. Visit mississippi.org/workforce.

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TAXES and INCENTIVES

Why Location Matters to Manufacturers in Lessening the Tax Bite A manufacturing company must carefully assess the type of taxes imposed and the methodology in computing these taxes in each location under consideration. By Hartley Powell, Principal; and David Padykula, Associate; Global Location and Expansion Services, KPMG LLP

hen corporate executives are contemplating their next facility location, taxes and incentives are often key considerations in the location-decision process. State and local taxes represent a significant business cost for corporations operating in the United States and often have a material impact on net operating margins. Consequently, business location decisions for new manufacturing facilities, corporate headquarters relocations, and the like are often influenced by assessments of relative tax burdens across multiple states. Statutory tax rates only tell part of the story. While topline rates are important, and high rates may provide “sticker shock” for companies considering locating within a given state, they are just one component of an enterprise’s effective tax burden. Tax incentives, apportionment, throwback rules, and other factors often have a dramatic effect on effective tax burdens. In some cases, states with low statutory tax rates often impose high effective tax burdens, and vice versa.

A Recent Study

The recent study Location Matters – The State Tax Costs of Doing Business1 by the Tax Foundation in collaboration with KPMG LLP highlights state differences in tax costs (measured as Total Effective Tax Rate) for a variety of hypothetical operations. It compares tax burdens in the 50 states (plus the District of Columbia) considering

AREA DEVELOPMENT

seven different types of businesses: corporate headquarters, R&D facilities, retail, capital-intensive manufacturing, labor-intensive manufacturing, call centers, and distribution/warehouse operations. The study ranks states by tax costs for newly established operations (potentially triggering incentives) and mature operations (older than 10 years) in a Tier 1 city (major metro) and Tier 2 city (less than 500,000 in population) in each state. For each different model, the study assesses the tax costs borne by a mature operation — one that is at least 10 years old — versus those borne by a new facility. The study assumes that mature operations are typically no longer eligible for tax incentive programs, while new facilities are generally eli-

gible for most incentives. The study also focuses on firm types that are also very mobile, with the assumption that the owners and investors have considerable flexibility in where to locate or relocate based on factors ranging from taxes to labor force, making them frequent recipients of economic development subsidies and tax incentives. Each of these companies is assumed to have out-of-state customers or clients. Thus, how each state apportions a company’s income is a critical factor in determining a state’s effective tax rate for that industry.

Manufacturing Still Highly Coveted Manufacturing in the United States has generally been on the decline since

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the 1970s, when it accounted for one fifth of the labor force, with nearly 18 million manufacturing employees in 1977, according to the U.S. Census Bureauâ&#x20AC;&#x2122;s Census of Manufacturers. Intense foreign competition likely contributed to a reduction in U.S. jobs as companies expanded overseas. The decline of U.S. manufacturing hit its lowest point in 2010, in the aftermath of the Great Recession. Today, U.S. manufacturing appears to be rebounding due to factors such as increasing overseas wages (particularly in China, where manufacturing wages are considered to be higher than ever before), transportation costs and complexity, and relatively inexpensive investment costs available in the United States, perhaps due in part to state incentives. Manufacturing is still a highly coveted industry, and its positive effect on a community is well understood. Manufacturing jobs are generally considered good jobs, and the income they generate for workers can, in turn, help bring revitalization to the local economy through a multiplier effect, including appreciating property values, increased revenue for school districts, and increased discretionary income and consumption. Many states offer generous incentive packages to win these jobs and the large capital investment that these projects bring. Two of the seven business scenarios studied in the Location Matters study are a capital-intensive manufacturer, such as a steel company, and a labor-intensive manufacturer, such as an auto or truck manufacturer. All manufacturing facilities are located in a Tier 2 city.

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Income, Unemployment, & Property Taxes The study indicates that while often substantial, business income tax burdens are just one part of the actual burden for new companies. Unemployment insurance tax burdens, particularly for labor-intensive manufacturing, are shown to be a significant cost. As an incentive for manufacturers, the majority of states offer some degree of sales tax exemption on manufacturing equipment, including five states that do not have a state sales tax at all and three that do not impose a sales tax on any equipment. While manufacturing equipment generally receives favorable sales tax treatment, property tax burdens vary considerably. Property taxes are shown to be a significant factor for capital-intensive manufacturing operations, as they have a substantial amount of equipment potentially subject to tax. States that limit their property tax base to land and buildings, rather than taxing equipment and inventory, offer a lower tax environment for both capital-intensive and laborintensive manufacturing firm types. Thirty-nine states offer some degree of property tax abatement for new capital-intensive manufacturers, and a few states go so far as to practically eliminate property tax liability over a 10-year period. One interesting finding for new manufacturing companies is the positive impact of favorable apportionment factors and the absence of a throwback rule in computing the overall tax burden. In many cases, these two factors may be more important to a firm than considering a lower corporate income

09/12/15 10:43 PM AREA DEVELOPMENT | 2016 Annual Directory 21

Total Effective Tax Rate (TETR) For New Capital-Intensive Manufacturer 10% 0%

0% 2% 2% 2% 2% 3% 5% 5% 5% 5% 5% 5% 6% 6% 6% 6% 7% 7% 7% 7%

KS NE NJ NY OH WV IA MN DE OK PA AK ND GA RI

tax rate. For example, Colorado’s income tax rate is one of the lowest at 4.63 percent, yet Colorado’s income tax burden is one of the highest due to single sales factor apportionment and a throwback rule which exposes “nowhere income” attributable to states with which a firm lacks nexus to in-state taxation.

Credits & Incentives In our work with companies, we have often found that credits and incentives are one of the most important considerations for new companies and frequently prove to be a deciding factor to locate in a particular place. Substantial credits and incentives may often transform traditionally heavy tax burden states, such as New York and New Jersey, into attractive business climates for new manufacturing companies. Generally, however, the actual benefit from credits and incentives depends on a firm’s business needs. States with withholding tax rebates and jobs tax credits are likely more beneficial for new labor-intensive manufacturers, while investment tax credits and property tax abatements are generally more beneficial for new capital-intensive manufacturers.

Incentives for Capital-Intensive Manufacturers: Louisiana and Kansas rank 1 and 2, respectively, among U.S. states for new capital-intensive manufacturers due to generous incentives such as the Quality Jobs withholding tax rebate program, industrial tax exemption, and inventory tax credit for Louisiana; and the High Performance Incentive Program, Promoting Employment Across Kansas (PEAK) program, and a sizeable property tax abatement for Kansas. Louisiana also benefits from having the lowest corporate income tax burden due to favorable apportionment factors and the absence of a throwback rule, as well as the second-lowest unemployment insurance tax burden. Kansas does not have favorable apportionment factors or the absence of a throwback rule, but it ranks well due to a low property tax burden, important to capital-intensive manufacturing companies, as well as a low corporate income tax burden, thanks to the High Performance Incentive Program, one of the most substantial investment tax credits. Not surprisingly, states that lack property tax abatements have a higher tax burden, and several of these also impose a tax on inventory. Yet, among those that impose an inventory tax, Louisiana, Oklahoma, and Georgia offer generous credits and incentives that more than compensate for this specific tax burden.

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IL AL MA ME

10 11 12 13 14 15 16 17 18 19

Incentives for Labor-Intensive Manufacturers: Louisiana again ranks number 1 for new labor-intensive manufacturers due to generous incentives such as the Quality Jobs withholding tax rebate program, industrial tax exemption, and inventory tax credit, as well as having the lowest corporate income tax burden due to favorable apportionment factors and the absence of a throwback rule, as well as the some of the lowest unemployment insurance and property tax burdens. Generally, the states that perform well for labor-intensive manufacturing offset the costs associated with labor through substantial withholding tax rebates, such as the Nebraska Advantage Act Wage Credit, or generous jobs tax credits, such as the Grow New Jersey Assistance Program. Sixteen states offer withholding tax rebates, 24 states offer investment tax credits, and 24 states offer jobs tax credits to new labor-intensive manufacturers, which in some cases completely eliminate income tax burdens, at least for the first few years of operations. Fighting to win back manufacturing jobs to the Garden and Empire states, New Jersey and New York have introduced the Grow New Jersey Assistance Program and the New York Excelsior Program, two of the most significant incentive programs currently available in the U.S. Effective beginning with the 2014 tax year, New York also applies a zero percent business income tax rate on qualifying manufacturers. These improvements have led New Jersey to move from 28 to 3 and New York to move from 26 to 8 for new labor-intensive manufacturing companies, since the previous Location Matters study.

In Sum Manufacturing companies are starting to expand in the United States, thanks in part to competitive labor rates, reasonable business costs, and substantial state and local incentives. But just as manufacturing companies differ in their composition, such as labor-intensive or capital-intensive, states also differ in the types of taxes they impose and methodology in computing these taxes. In addition, each state applies different types of credits and incentives to help lower business costs and entice companies to invest in its state. A state with a low corporate income rate may create a substantial tax burden for a new firm, while a state with a high corporate income rate may, in actuality, impose only a minimal tax burden on the new investing firm. States are also constantly changing their tax policies, as they compete for new jobs and investment. The decision to

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Total Effective Tax Rate (TETR) For New Labor-Intensive Manufacturer 10%

-2% 2% 2% 3% 3% 4% 4% 4% 5% 7% 7% 7% 7% 7% 8% 8% 8% 8% 8% 8%

5% 0% -5%

LA NE NJ GA MO KS OK NY OH KY NC AL AR WV DE IN WI WY SC MI 1

establish a manufacturing plant is a serious and costly one, generally requiring significant capital and a long-term commitment. It is critical that new manufacturing companies carefully assess all state and local costs of doing business before making a final decision. ■ Hartley Powell (whpowell@kpmg.com) is a Principal in the State and Local Tax practice of KPMG LLP in the Global Location and Expansion Services group; he is based in Charlotte, NC. David Padykula is an Associate in the State and Local Tax practice of KPMG LLP in the Global Location and Expansion Services group; he is currently based in Montreal,

10 11 12

13 14 15 16 17 18 19 20

Canada. The GLES group provides U.S. and global site selection services. This article represents the views of the authors 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 advisor. KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is the U.S. member firm of KPMG International Cooperative (“KPMG International”). KPMG International’s member firms have 162,000 professionals, including more than 9,000 partners, in 155 countries. Notes 1 http://www.kpmg-institutes.com/institutes/taxwatch/articles/2015/08/location-matters-2015.html

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11:08 AM AREA DEVELOPMENT | 2016 Annual5/3/13 Directory 23

HIGH - SPEED NE T WOR K LO C AT IONS ore metro areas are luring tech companies and jobs by positioning themselves as “smart cities.” Their own digital capabilities and attitudes toward cutting-edge technologies make them ideal locales for forward-thinking entrepreneurs and expanding companies looking for the robust connectivity that will help them succeed and grow. Cities like Chattanooga, Tenn., and 24

AREA DEVELOPMENT

Dublin, Ohio, have ranked among the early winners from their multimillion-dollar investments in Internet networks that provide the blazing 1-gigabit fiber-optic speeds required by bandwidth-hungry businesses — delivering 1,000 megabits of data transferred per second. Other cities, such as San Francisco, are focusing on deploying Internet-connected devices that control citywide systems such as

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COVER STORY

CITIES ACROSS THE N AT I O N A R E I N S TA L L I N G HIGH-SPEED FIBER-OPTIC NETWORKS FOR THEIR OWN INSTITUTIONAL PURPOSES, WITH THE ADDED BENEFIT OF AT T R A C T I N G G R O W I N G C O M PA N I E S . BY DALE BUSS

transit and lighting, and collect data to make the entire city perform better as a support to business. And cities including Chicago and Pittsburgh are attempting to establish leading positions in building out networks of sensors that could make them meccas for the “Internet of Things” (IoT), connecting places as disparate as a college mess hall and a cross-river bridge into one nearly organic digital nexus that facilitates business and civic needs across an entire region.

HIGH STAKES Many engaged in smart-city development say that the immediate economic benefits of such efforts are real and that, even more important, these data-friendly networks may become table stakes in the intra-

city competition of the future for companies that, across most industries, will become increasingly dependent on digital-technology infrastructures. “You’ll see a lot of cities be able to go with more than 1 gigabit once they have the infrastructure,” says Marc Hudson, co-founder of Rocket Fiber, which is laying high-speed fiber in Detroit. “But, for a while, it will still be a differentiator. It still puts us on the leading edge because only a handful of cities are even doing this now.” Dana McDaniel, now city manager of Dublin, a northwest suburb of Columbus, Ohio, remembers that “everyone thought we were crazy” when the economic development department he ran more than a decade ago began laying high-capacity fiber. “Now, they’d all like to do it. We AREA DEVELOPMENT | 2016 Annual Directory

recognized early on and deployed it relatively inexpensively, and now we’re leveraging the value of that.”

Small Cities Add Fiber Optics to Their Assets One community that modeled itself on Chattanooga’s high-speed fiber optic network is Opelika, Alabama. Through a comprehensive broadband fiber optic system deployment by the local power company — Opelika Power Services (OPS) — Opelika has built its own “on-ramp” to the global information highway, thus creating a new local, digital communications asset that puts the city on the high-speed Internet map. It also breaks new ground for the region. With the roll out of fiber-to-the-home services able to reach 100 percent of its citizens, Opelika became the first city in Alabama to have fiber to the user, a smart grid telecommunications deployment that includes video (cable TV), ultra-high speed Internet, and telephone service. And through a new joint collaboration with Information Transport Solutions, Inc. (ITS), OPS now provides one gigabit of Internet access to Opelika City schools. According to Opelika’s Mayor Gary Fuller, “Opelika’s school system does an outstanding job of providing our children with advanced learning technology.” Additionally, community leaders are hoping Opelika’s fiber installation will draw business as well. Working in partnership with Opelika Power Services, and technology partners like Alcatel-Lucent, in October 2014 local government, business, and economic development officials put plans in place to roll out ultra–high-speed fiber services, including phone, data, and video conferencing services to Opelika’s business, corporate, and industrial customers. To date, more than 425 miles of fiber connect Opelika customers to the network. “It’s cutting-edge technology and world-class, and some folks might be surprised it’s here in a community of only 28,000 people,” proudly boasts Mayor Fuller. “It’s a big investment and a lot of money, and we believe it’s paying off,” the Mayor says, noting that approximately 300 businesses are already using the service. Opelika is also home of the Round House, with 22,000 square feet of space for co-working, incubation and acceleration, user meetings, seminars, and mentoring. In an effort to promote business growth in Opelika, the City of Opelika and Opelika Economic Development have partnered with Round House, providing the symmetric gigabit service. 26

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INVESTMENT THAT PAID OFF For such reasons, urges Danna Bailey, “Do whatever you need to do to get this infrastructure for your community.” Bailey is the vice president of corporate communications for EPB — the Tennessee electric utility that laid the local fiber-optic network that arguably has powered Chattanooga to the No. 1 position among America’s fast-fiber cities. “We get calls from folks all the time, and we’re happy to share our expertise because we believe strongly that this is something cities across the country need,” Bailey adds. In fact, suggests Charles Wood, vice president of Economic Development for the Chattanooga Area Chamber of Commerce, “the best thing would be to have interconnectivity with other 1-gig cities. It would be to their and our benefit to be connected. It would open up the population that can work on it.” But nearly every other city would have a long way to go to catch up with Chattanooga, which now has a $370 million, fast fiber-optic network that has generated an estimated $1 billion in economic and social benefits, including as many as 5,200 new jobs, as well as an outsized reputation as one of the digital vanguards of American cities. hattanooga’s success is a result of foresight that now is a decade old. EPB began planning in 2005 to build out a new fast-fiber-optic infrastructure for both business and residential purposes, and the city council approved the plan in 2007. The entire network takes in 600 square miles that includes not only Chattanooga proper, but also most of the surrounding county and parts of eight additional counties in Tennessee and Georgia. “One of our main goals in laying a pretty sophisticated and comprehensive automation network was to modernize our electric grid; most of the country hadn’t been modernized,” says Bailey of EPB. “We wanted to be able to add smart devices and sensors to have more insight into the health and performance of our grid, so that it could actually ‘self-heal’ by routing power around a problem and identifying things before we can fix them. We’ve seen a 50to 60-percent reduction in the duration of power outages because of this.” By 2009, roughly six years ahead of schedule, EPB also was taking advantage of hooking up customers to its network as a telecommunications and economic development player, and by late 2010, the utility was making available residential symmetrical interconnection speeds of up to 1 gigabit per second — the fastest Internet in the Western Hemisphere. By 2010, the utility saw a 150 percent increase in Internet customers. And by 2011, existing and startup companies that needed a lot of bandwidth discovered the 1-gig network in droves. The city, EPB, and their allies added to Chattanooga’s allure with efforts like a summer-long accelerator program called GIGTANK that focused on companies exploring uses for high bandwidth. Citing or relying on the fast-fiber network as a major lure for their decisions, Claris Networks, a data-center company, set up an operation in Chattanooga; HomeServe, a home-

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WINSTON-SALEM

FORSYTH COUNTY

THE CITY OF ARTS A N D I N N O VAT I O N • Located within 650 miles of more than half the U.S. population • Ranked #4 in the U.S. for cost effective data centers by the Boyd Company • 240 acre urban-based research park • Regional workforce of over 800,000 • Cost of living well below the national average

www.wsbusinessinc.com

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warranty company, established a call center that now employs about 300 people. And adding to Chattanooga’s heritage and growth as a manufacturing capital have been bandwidth-hungry startups including Branch Technologies and two 3-D printing companies, Feetz, a “digital cobbler,” and 3D Models, which constructs digital copies of human hearts for practice before surgery.

A MODEL TO FOLLOW This impressive track record has attracted admirers and wannabes from across the country. For example, Marc Hudson, co-founder of the high-gigabit Rocket Fiber in downtown Detroit, has attended a couple of Chattanooga’s GIGTANK competitions and notes how “that entire city has been transformed. Chattanooga has been a phenomenal visionary with what they’ve done.” Hudson co-founded Rocket Fiber with backing by companies owned by Dan Gilbert, the billionaire who is funding so much of the renaissance of close-in Detroit. And Hudson believes that bringing fast fiber to a city the size of Detroit (which Rocket Fiber planned to begin before the end of 2015) could create a much greater overall economic impact than it has in Chattanooga. “It will be massive and somewhat difficult to measure,” Hudson says. “But I think it will translate into something bigger here because Detroit is bigger, and our manufacturing footprint is bigger. And whereas Chattanooga started the fire, I think Rocket Fiber will pour fuel on the fire.” Specifically, Rocket Fiber has initially been laying highcapacity fiber — which will provide Internet access and cable television at speeds up to 100 times faster than the nation’s current average residential speed — in the Central Business District of Detroit. It plans quick expansion to the city’s “Midtown” district and other business- and residentdense areas. This not only will boost productivity in basic tasks such as downloading files and sending e-mail but, more importantly, “will be a platform of innovation,” Hudson explains. “Big thinkers and entrepreneurs who want to create the next generation of web-based products will be able to utilize some of the fastest Internet in the world right here in Detroit to tinker and build,” Hudson told Crain’s Detroit Business. “We’ve always had a history of innovation here in Detroit, and now we’ll have more cutting-edge digital infrastructure [that] we need to continue that tradition.”

LEVERAGING INFRASTRUCTURE While Detroit and some other cities are looking at fastfiber networks as ways to provide an economic development jolt, McDaniel of Dublin, Ohio, says his city built its success in this arena by taking another approach: laying cable at first simply to improve municipal services. The idea of leveraging this new infrastructure to lure expanding and new companies came later. ublin initially deployed about 20 miles of conduit underground, beginning nearly two decades ago, as a way of protecting its right of way in the “wild-west” era of building telecom infrastructure that was unfolding. 28

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Soon it began connecting city facilities with fiber optics and reaping the value of productivity boosts. When the telecom bust of 2000 made adjacent digital pathways available, Dublin added ownership of another 100 miles that wended throughout adjacent Columbus and some of its other suburbs. Soon Dublin was working with the Ohio Academic Resources Network to connect the state’s colleges, universities, and research institutions to one another, and in 2004 hooked up a Dublin satellite office of the prestigious Battelle Memorial Institute with the mother ship in Columbus. “That’s when we realized we could have some value for the business community,” McDaniel notes. Over the last decade, Dublin has worked to hand off “dark-fiber” lengths of its network to eager companies for them to develop and utilize as they wish, and the economic development benefits have flowed. One of the first major deals was the siting of 300 back-office jobs in Dublin by OhioHealth, a major healthcare provider. “We were competing with other places and had pitched them all sorts of traditional incentives, but we weren’t getting out ahead, and so and I finally pitched them one more time,” McDaniel recalled. “So I went to them and had this map of our network, with all their hospitals and back-office operations plotted out, and their surgical centers, and headquarters building. And I said that I didn’t have any other monetary offerings, but I did have this fiber-optics system and two pairs of fiber that I could provide them at no expense.” According to McDaniel, that sealed the deal. n fact, McDaniel says about 10,000 jobs overall have come to Dublin that have been specifically attached to deals in which its fast fiber was the most important, or a major, factor. In addition, the arrival of those companies and projects has yielded $31 million in direct tax revenues to the city, even as Dublin has been able to reap nearly $5 million in savings and cost avoidance for its own operations. And now, Dublin is adding to its edge by installing fiberoptic laterals into office buildings and allowing for up to 100 gigabits of high-speed broadband capacity within the city. This will be especially helpful, McDaniel says, to small- and medium-sized companies with limited IT operations.

WALK BEFORE YOU RUN But McDaniel advises other cities with fast-fiber dreams to walk before they run. Yet, such has become the documented effectiveness of a fast-fiber play for more cities that, fewer than 150 miles to the northeast of Dublin, the city of Hudson, Ohio, seems ready to take the plunge. Marketed under the name Velocity Broadband, a new city-owned entity offering 1-gigabit service is opening this month. Without mentioning any way in which Velocity Broadband would streamline municipal operations, the city called it “a key economic development initiative that will position [Hudson] for future expansion, while advancing local businesses.” So the question remains, “If you build it, will they come?”

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DISTRIBUTION/LOGISTICS

Logistics Industry Continues to Evolve Expansion of the Panama Canal, increasing use of intermodal facilities, and siting of new mega distribution facilities are among the latest logistics trends. By Grant Miller, Vice President; and Don Moss, Vice President; Colliers International

n the warehouse and distribution sector, a quote from Ben Franklin resonates so true today: “When you are finished changing, you are finished.” It is imperative that you stay current with trends and projections in your industry or as Ben Franklin stated, you will be “finished” or left behind. Logistics modeling, alternative delivery systems, and new methods of order picking are driving changes in the size, ceiling heights, and types of employees needed for the modern warehouse. These new trends will continue to influence the transportation and logistics of how consumers receive goods. The widening of the Panama Canal, investment into rail intermodals, and the development of industrial distribution centers for solely e-commerce purposes are additional developments the industrial real estate landscape is experiencing.

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In April 2016, the much anticipated expansion of the Panama Canal is scheduled for completion. This is a serious game-changer, particularly for the ports located on the East Coast. According to the America Association of Port Authorities, $46 billion will be spent through 2016 in deepening harbors and constructing larger terminals in order to accommodate the new, more massive freight ships that will now be able to move through the canal. These ships will be able to accommodate up to 14,000 containers and have historically called upon the ports of the West Coast. With the recent labor strife the West Coast has experienced, this access and utilization of the East Coast ports will definitely be a hedge should other disputes or disagreements arise in the future. Those ports that are unable to deepen their harbors or do not upgrade their facilities will have an increasingly difficult

time competing for container traffic.

Intermodal Trends As port traffic increases due to the expansion of the Panama Canal, there are new and expanding rail intermodal facilities being constructed throughout the United States. The Association of American Railroads defines rail intermodal as the long-haul movement of shipping containers and truck trailers by rail, combined with a truck movement at one or both ends. Intermodal allows railroads, ocean carriers, trucking companies, and intermodal customers to take advantage of the best attributes of various transportation modes to yield an efficient and cost-effective overall freight movement. A report completed by the Association of American Railroads in May of 20151 states that in 2014 rail intermodal volume was 13.5 million containers, and trailers and intermodal

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accounted for 22 percent of revenue for major U.S. railroads, more than any other single commodity. According to a recent report by Colliers International titled “From First Mile to Last Mile – Global Industrial & Logistics Trends,”2 intermodal freight has been the fastestgrowing transportation mode for the U.S. for the past decade, with U.S. rail volumes growing over 400 percent since 1980. With railroads investing in new intermodal terminals, track upgrades, and other infrastructure, the intermodal service has become more reliable and cost-effective. The growth in intermodal is attributed to several key changes taking place. Those include truck-driver shortages, new tighter restrictions and regulations being placed on the trucking industry, increased congestion, and the condition of the interstate highway system. The shortage of qualified truck drivers is an issue for trucking companies and it appears that this problem will persist in the foreseeable future. In addition to finding qualified drivers, recent restrictions mandate shortening the hours a truck driver may spend behind the wheel, which will definitely reshape the supply chain. The critical infrastructure (highways, bridges, etc.) needed to deliver goods by trucks has been deteriorating and is in vast need of repair throughout the U.S. These conditions lead to increased costs, which include repair to damaged vehicles from the poor road conditions and additional miles traveled or time spent to avoid unusable roadways or congested areas. The increased congested areas, in turn, creature an issue in making sure freight is delivered on time. A few key examples of successful intermodal hubs include BNSF Alliance Global Logistics Hub – Dallas/Fort Worth, BNSF Logistics Park – Chicago, and South Carolina Inland Port – Greer, S.C.

Distribution Center Requirements Retailers are determining what best suits their needs. Should they operate a multi-channel distribution center (combination of store orders and individual orders) or a dedicated e-commerce facility? Therefore, the design of the modern distribution center or e-commerce facility is another evolving change taking place. This evolving change relates to the process and delivery of goods in which e-commerce is playing a major role. E-commerce-centric distribution centers have come to be known as mega distribution centers. Mega distribution centers are loosely defined as greater than one million square feet. In the United States, Amazon appears to be leading the way in constructing these so-called mega distribution centers. Close to a third of Amazon’s distribution centers are one million square feet or larger. This recent trend in larger and larger building size has been taking place just over the past 10 years. Previously, a mega distribution center was considered to be a facility measuring around 500,000 square feet. Taller ceiling heights are also a new design feature taken into consideration for modern distribution centers. A 40-foot clear ceiling height is not uncommon for buildings currently under construction or that have been completed for e-commerce purposes. The increase in ceiling height is required as the building will feature a combination of some type of au-

tomation, racking, robotics, and pick-and-pack services situated on one or multiple mezzanines within the structure. Even though less than 5 percent of operating costs are attributed to real estate, careful planning and consideration is being given to where a distribution center is located and what functions it will serve. The location of a dedicated e-commerce facility is pertinent as it pertains to the occupant’s ability to deliver on service commitments (i.e., same-day, next-day delivery). It truly is a consumer-driven location decision. Access to major population centers is critical for its success.

EXISTING PUBLIC INFRASTRUCTURE WITH IMMEDIATE ACCESS TO UTILITIES IS ALSO VERY CRITICAL. With the larger distribution centers comes a need for a larger site or acreage requirement on which to site the facility. Critical to the siting requirement is close proximity to interstate highways, intermodal facilities, and ports. Multiple means of transporting products to the facility is an advantage. The ability for the local road system to handle both truck and automobile traffic is also taken into consideration, as these facilities will need to continue to move trucks while shift changes are taking place. Existing public infrastructure with immediate access to utilities is also very critical. Projects are becoming extremely time-sensitive and there’s little or no time to wait for infrastructure to be brought to the site. Communities that are successful in recruiting modern distribution facilities are working with employment offices and community and technical colleges to identify and pretrain prospective employees with basic skill sets. Today’s highly automated distribution centers require a semi-skilled workforce. Many of these operations need to draw from a seasonal employment pool. Qualified temporary employees are often needed during seasonal peaks such as Christmas and the holidays. While we have just covered a few of the many changes taking place within the industry, these appear to have the greatest impact right now. But, as Ben Franklin said, “When you are finished changing, you are finished.” The industry and communities need to continue to evolve to be successful. ■ 1 2

https://www.aar.org/BackgroundPapers/Economic%20Impact%20of%20US%20Freight%20Railroads. pdf http://www.colliers.com/-/media/Files/Global/ResearchReports/Colliers-From-First-Mile-to-LastMile-Global-Logistics

AREA DEVELOPMENT | 2016 Annual Directory

FACILITY PLANNING

Current Trends in Employee Work Environments Companies are redesigning their facilities to reflect how each generation of employees works, with the result being greater collaboration and improved productivity. By Carol Ebeling, Director of Interior Design, BRPH

ith four generations currently in the work environment — traditionalists, baby-boomers, Gen X, and millennials — never have designers of these environments been forced to look at so many different variables to create an effective workplace that meets the needs of every potential end-user. Each of these four generations of stakeholders has different ideas on what is important in order to accomplish its work. How do designers create spaces that are successful for each of these variables? By rethinking the way people work in a space and how they interact with each other, we can start to develop new ways for the generations to work together.

Knowledge-Based Work Environments Hierarchical organizational structures are becoming less and less appropriate. Such environments are likely to be inefficient, inflexible, and costly. As the majority of work carried out in facilities moves away from hierarchical organizational structures and toward a knowledge transaction, we shift focus from tangible assets to human capital and intangible assets such as R&D, marketing, HR, and innovation management. Work is becoming increasingly knowledge-based because the speed and volume of work required cannot reasonably be accommodated in traditional, sequentially

Workplaces are moving away from an overabundance of traditional conference rooms and toward flexible ‘think tank’ spaces that bear names like idea room or collaboration space.

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managed work applications. This has implications for the workplace. Work environments are designed to support knowledge transfer and connect communities of people and independent workers. Technology will play an even greater role, supporting mobility and virtual working, while the individual office building becomes just one part of an organization’s overall working platform.

Communication — Improving Performance Think of an office not as real estate but as a communication tool. Strategy, features, and value become more important than cost and efficiency. Technology is becoming the cheapest component of work and people the most expensive. Human beings are social, needing contacts to provide a sense of purpose and worth. Face-toface interactions are by far the most important activity in an office. Chance encounters and unplanned interactions between knowledge workers, both inside and outside the organization, improve performance. We’ve learned that spaces can be designed to produce specific performance outcomes — productivity in one space and increased innovation in another, or both in the same space but at different times. By referencing company strategic goals such as total sales or number of new-product launches, we can demonstrate a workspace’s effect on the bottom line and then design that space to improve it. This will lead to profound changes in how we build our future workspaces.

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

THERE’S NO DENYING IT: NORTH CAROLINA IS A GREAT PLACE TO DO BUSINESS. In fact, Site Selection magazine ranked North Carolina 2nd in its annual Top Business Climate survey for 2013. The state also came in at #4 on Forbes Best States for Business 2013 rankings. Safe to say that when it comes to business, North Carolina is where it’s at!

team illuminate the way. We represent more than 70 NC Public Power communities across the Tar Heel state. Plus, we’re well-heeled with homegrown information, industry expertise and economic incentives to help you reach your goals.

So if you’re looking at NC (and you should be), let ElectriCities of North Carolina’s Economic Development

Got your sights set on NC? We’ve not only got the vision—we’ve got the sites, too. 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

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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

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

CONCORD

SHELBY

electricities.com/ecodev

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

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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Educational Work Environments

ties are trying to achieve (higher productivity? more creativity?) before changing a space. Given the choice, people will Creating spaces that can be choose workspaces that support flexible for both collaboration their digital style while giving and focus allows for less real esthem access to new knowledge, tate to be utilized. If certain ameexposing them to different nities and adaptive technology kinds of expertise, and accelerare located close to areas of colating their learning. Three key laboration, it allows these spaces elements of successful comto shift in use. Variety in location, munication are exploration (inas well as amenities, provides teracting with people in many users with a choice in ways to other social groups), engageDesign is literally breaking down the walls to traditional office space by incorporating more glass and transparent materials collaborate and what they need ment (interacting with people into conference or meeting spaces. Letting in more light into to interact with others. After all, within your social group), and areas meant for thought and action helps employees concentrate and stay alert. the true value of a collaboraenergy (interacting with more tion space is in the connections people overall). Spaces can be between humans. The space itself should serve as a conduit for designed to favor exploration or engagement or energy to these conversations. achieve certain outcomes. The challenge is balancing a facilities requirement for both communication and concentration, and devising spaces that can respond to and encourage the Contemporary Office Environments highly complex process of social interaction at work. Office space is not just an amortized asset but also a straManagers might be tempted to simply build big social spactegic tool for growth. Office utilization may peak at 42 peres and expect great results, but it’s not that simple. Business cent on any given day. By past logic, the best way to manage strategies provide business priorities, and office design concost per square foot is to remove “wasted” square feet. But cepts based on these priorities can have a dynamic impact on experience reveals that investments in redesigning space for performance. One must have an understanding of what faciliinteractions over efficiency can increase communication and collaboration, resulting in increased business performance. New space standards and planning principles reduce the number of enclosed offices, increase open office areas, and accommodate easy reconfiguration for evolving workplace needs. Typical floors have interior offices and meeting rooms with glass fronts, providing access to daylight for all occupants.

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Recruiting & Retaining the Best of the Best Staff turnover is costly. Replacing a mid-level manager costs an estimated 50 percent of salary. Employee well-being isn’t simply about work environments with better ergonomics or more comfort. Today’s workplace can and should be a place where people actually leave healthier. This has become challenging as knowledge work has evolved. Thanks to new technology and a global marketplace, work is more project-based, much faster paced, and often a 24/7 endeavor. High stress levels are prevalent and associated with knowledge work today. We communicate and collaborate constantly. It’s hard to unplug. Well-being actually involves many aspects of organizational culture, from making sure people understand what their job is and have sense of purpose, to providing the right space, tools, and resources to be successful. Research shows that successful organizations support their employees with a holistic approach to mental, physical, and emotional wellbeing. It lowers absenteeism and results in fewer medical claims providing substantial cost savings. It will also pay off in terms of organizational performance; well-being is now woven into the culture of organizations through multiple activities led by both management and employees.

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LEED — Doing What’s Right for Employees and the Planet LEED strategies also play an important part in employee wellness. Sustainable attributes, such as harvesting natural light, play a key role in today’s interior design space planning efforts. Additional measures that balance a company’s environmental footprint include low-flow plumbing fixtures, occupancy sensors, and high-efficiency light sources, all of which reduce a company’s power consumption. Sustainable design features include an emphasis on durable, environmentally friendly furniture and finishes. Current strategies in office design support an organization’s mission of understanding and predicting changes in the earth’s environment. Current trends reduce office impact on the environment as well as physically embodying man’s relationship to nature. Conscientious clients and employees are known to seek out and support corporate policies promoting sustainable strategies targeting net-zero energy use. These policies help to define the corporate culture and, in turn, the corporate brand.

Corporate Branding — More Important Now than Ever Before Technology has not only slashed the costs of the production of goods, but also expanded the scope for innovation, leading to an explosion in the choices open to consumers. Value increasingly lies not in the product itself but in innovation, design, marketing, responsiveness, and after-sales support. Today, due to the effects of globalization and improvements in manufacturing, it has become harder for firms to differentiate their offerings on these terms alone. Companies now must have a corporate brand. When a large proportion of the value of a company depends on branding, it becomes necessary to take every opportunity to communicate messages about values. This is what not only attracts and retains loyal customers but loyal employees as well. Interior design can communicate this global branding through showcasing corporate identity and culture. A company’s brand and culture can be found throughout a facility, whether through the color of the walls or the style of furniture. Through design, we can apply subtle elements that might not scream company branding but, when combined, all of these small touch-points create a cohesive environment that is all about the brand.

Future Work Environments Office buildings are no longer the sole locations for knowledge work. In fact, it has been suggested that two thirds of knowledge work now happens outside the office. Consequently, no matter how precisely we design office space to create opportunities for communication, the design is incomplete if it doesn’t take into account digital work and collaboration that is independent of space and time. The office of the future will most likely include highly networked, shared, multipurpose spaces that redefine boundaries between companies and improve everyone’s performance. This will require new design and management principles. It will also transform HR, IT, and facilities management from support functions to facilitators. But if companies can change their spaces to reflect how people work, performance improvement will follow. Every generation is affected by the evolving workplace. While each generation has different needs and opinions of what matters, each generation can agree that workplace design and functionality is an important factor. Employers are dealing with an increasingly hard task of implementing workplace innovations that meet the needs of all four generations while still maintaining an effective and profitable workplace. With employees likely being the largest investment by business owners, many are willing to incorporate changes to maintain morale and provide a workplace that helps develop an innovative and engaged group of employees. These innovations can also bridge the gap between generations by creating an environment that allows workers to share experiences and concepts to develop ideas. ■ AREA DEVELOPMENT | 2016 Annual Directory AREA0213.indd 1

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GOLD & SILVER SHOVEL AWARDS

SHOWN HERE ARE 11 OF THE RECIPIENTS OF

2015

Area Development’s 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.

21 states were recognized

All told, for their efforts.

Tennessee’s Gold Shovel award is raised by Governor Bill Haslam.

South Carolina Governor Nikki Haley poses with the Gold Shovel award.

Empire State Development Commissioner Howard Zemsky holds New York’s Silver Shovel award.

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Kansas Governor Sam Brownback (left) and Interim Kansas Commerce Secretary Michael Copeland pose with the state’s Silver Shovel award.

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

Georgia Governor Nathan Deal holds the state’s Gold Shovel award.

Kentucky’s Governor Steve Beshear puts his state’s Silver Shovel award to good use.

Jonas Peterson, CEO of the Las Vegas Global Economic Alliance; Governor Brian Sandoval; GOED Director Steve Hill; and Assemblywoman Irene Bustamante-Adams shown with Nevada’s first-ever Gold Shovel award.

Wisconsin’s Silver Shovel award is held by Governor Scott Walker.

Utah Governor Gary Herbert with the Silver Shovel award his state received this year.

Bobby Jindal, Governor of Louisiana, displays the state’s Silver Shovel.

Phil Bryant, Governor of Mississippi, holds his state’s Silver Shovel award.

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 | 2016 Annual Directory

ASSET MANAGEMENT

Adopting BIM for Facility Management: Handle With Care BIM can deliver tangible value and enable efficiencies for facility managers, but it’s a process that should be well planned and prioritized, with an eye for the challenges that lie ahead. By Erik Jaspers, Product Strategy & Innovation, Planon

he acronym BIM is used for a variety of different but related definitions: building information modeling, building information model, and building information management are well known examples. The tools we use around BIM are often referred to as BIM tools, BIM-modeling tools or, in short, BIM systems. BIM systems provide a virtual platform for real-time collaboration; architects and engineers can share design and construction aspects of the building, allowing them to work in parallel instead of sequentially, thus significantly reducing time spent on a project. By sharing their designs, problems are identified early, dramatically reducing cost of quality. In view of this, BIM systems are not merely producing a model of a building, but also providing a platform for real-time collaboration, logistics, and quality management.

In short, the main value points of BIM (systems and practices) are: • Providing means for collaboration, shortening the project time span • Allowing for early detection of quality issues, lowering cost of quality • Supporting lean logistics for construction

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This drives BIM adoption in design and construction, producing rich BIMs describing the facilities (to be) built. The sensible question to ask is, can these models provide value during the use phase as well?

What Is in It For FM? To answer that question in a practical way, we need to look into typical problems facility managers encounter during the life cycle of buildings and identify new opportunities that FM can leverage when adopting BIM models and systems. FM professionals are concerned with operating and maintaining buildings for their life cycle, which can span 30 years or even more. During the life cycle, we typically see periods of operations alternated with periods in which reconstructions take place. Commissioning — Perhaps one of the most significant events is the handover from construction to use: commissioning. Many articles and conversations on facility management have been dedicated to this subject, where comments vary from “if they only had involved us in the design, the building would have been so much cheaper and simpler to operate and maintain” to “it is hard to commission a building, chasing after all relevant information we need.” One of the major problems we see around managing buildings is the loss of building-related information

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that typically occurs during handovers between the various stages. Using BIM models, this data Opportunities Afforded drop is diminished. FMs By BM In his book BIM for Facility ManagCommissioning ers, Paul Teicholz states: “An inordinate Early-Involvement amount of time is spent locating and (Daily) Operations verifying specific facility and project Reconstructions, information from preFM Projects vious activities.” The use of BIM systems and models can add significant value to solve this problem in a number of ways: early-involvement with design, commissioning assessments, and asset data extraction for operations from the model.

important characteristics: the bill-ofmaterials and the geometry of the building and its rePitfalls to Avoid When lated assets. It is the Using BIM geometry that can add specific value to What System facility management Does What? operations. The most tangible advantage is “Hype Cycle” probably the use of the 3D geometrical Information model in maintaining Inconsistency the building and its assets as installed. Model-Versioning By using BIM viewers, professionals can assess aspects like the impacts and access prior to executing the work using the BIM. Questions like, “What happens when I close this water valve? Where will tabs or systems be cut off?” can easily and safely be assessed when preparing the actual work to be done. Likewise, the need for special tools can be established, and hazardous situations can be anticipated as well. In support of these types of use cases, we see adoption of various BIM model viewers among CAFM/IWMS vendors.

ADOPTING BIM

Early-involvement — BIM platforms allow for collaboration in real time. Facility managers typically are absent during design stages, when they can add real value to this process and result by adding their experience to the team. Addressing questions like, “Which design elements are particularly expensive to maintain and operate and why?” and “ Is this an affordable price to pay?” are questions where FMs can add unique value by virtue of their experience. And the good thing is access comes for free: the only BIM-related tool an FM needs during design is a model viewer. Early-engagement does require a proactive attitude from the facility manager him/herself. Now that BIM-connection tools for facility management are entering the market, facility managers can leverage them to earn a seat at the table during design using financial arguments: FMs can take (parts of) the designs of buildings, run their bill-of-materials in the CAFM/IWMS system, and report to the project team on projected cost of operations and maintenance even before the design is completed. The earlier FMs participate, the more influence they can have on the design of the building. (A good representation of this opportunity for facility managers was drawn by CABE — Commission for Architecture and the Built Environment — in the book Creating Excellent Buildings; see accompanying diagram.) (Daily) operations — Thus far, we have been addressing the use of BIM platforms and models in view of their potential role in the handover between the construction and use phases. The majority of time is, however, spent in normal use and operations cycles. What role can BIM platforms and models play here? What problems can they assist in addressing or what new opportunity can they help create for facility management? For use in FM- related processes, BIM provides two

Reconstructions, FM projects — A typical life cycle of a building is made up of a number of rebuilds during its use. In general, we see rebuilds occur to adapt the building to new types of use or to bring it up to modern standards. As in the initial design and construction stages, these reconstruction projects are quite suited to be BIM projects. The same principles, strengths, and benefits of BIM processes apply here: collaboration, early detection, and lean logistics. With a well maintained BIM at hand, these types of projects can run easier, faster, and cheaper. Using BIM systems and processes for reconstruction represents a significant opportunity for financial return on investment. The key here is to develop the BIM processes needed to execute them and engage the suppliers involved with them. The consequence of reconstruction projects is that new versions of the BIM model emerge, describing the building in its new quality. Typically, a new BIM model version will show different geometries next to alterations of (part of) the bill-of-materials.

Pitfalls to Avoid One could argue that BIM models may become the “digital twins” of the physical buildings in future: the models that describe not only geometry and bill-of-materials but also depict the actual condition and state of all its assets. The key prerequisite to effectively use BIM models in the future is that they are well integrated into the information infrastructure as well as connected to the FM operating processes. In short: BIM adoption for facility management is primarAREA DEVELOPMENT | 2016 Annual Directory

ily an information management exercise. So, what challenges lie ahead when considering to include BIM in FM operations?

Following are a few of the dominant pitfalls and considerations: What system does what? — The world-leading IT watcher Gartner often uses its “hype cycle” approach to describe the state of adoption of technologies. Typically, every new technology goes through the stages of the hype cycle, meaning that in its early stages — the “peak of inflated expectations” — we expect too much too soon. Over time, not only do the technologies improve, but also the way in which users deal with them changes. Facility managers should be aware of this principle in relation to BIM inclusion for FM. This starts with the view of what BIM can do. BIM systems are great for modeling and supporting processes of design and construction. They do not, however, offer the typical capabilities that CAFM/ IWMS systems provide in terms of financial support (budget formation and depletion) and demand management (supplier management, work order management, and so on). This implies that BIM adoption calls for a well-designed integration approach between BIM systems and the CAFM/ IWMS type of business systems. “I can do all my FM operation from the BIM” is probably a statement that reflects an elevated expectation toward BIM capabilities regarding FM operations. On the other side, we will not see CAFM/IWMS systems altering the geometry of buildings in BIM models directly. In this domain BIM systems show great strength. Moreover, changing building geometry is a privileged function. Typically (construction) engineers can do that in a reliable and safe way. (Re)designing buildings is not a typical FM job. This is why CAFM/IWMS suppliers generally rely on BIM systems to do that type of work. Information consistency — BIM models can be seen as databases on their own: data describing the geometry as well as data describing the bill-of-materials of the building in alphanumeric ways. Many FM-related procedures inherently alter data related to the bill-of-materials. Predominantly maintenance activities are involved where sometime replacements of existing assets are performed. When these types of activities take place, and the data is represented in the BIM model as well, then a process of data synchronization has to be in place. Note that these processes can be initiated in many ways, not necessarily involving BIM. For example, the temperature in a certain space is too low, so the occupant puts in a complaint to the FM department. Typically, these types of complaints are registered in the CAFM/IWMS system to be followed up from there. The incident is dispatched to one of the facility’s maintenance engineers, who analyzes the problem and finds out that the root cause is a failing pump. The existing pump is replaced by a similar one, but of a different make: the Siemens pump is replaced by a Hitachi model with the same specifications. On completion of the job, the

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data is probably altered in the CAFM/IWMS system but not represented in the BIM model if we do not arrange for that to happen. If we leave data to diversify over time between the BIM model and the CAFM/IWMS, the inconsistency between them will be quite harmful: “What is the truth? Which system describes the actual situation?” Restoring a source of truth can be quite tedious, difficult, time-consuming, and expensive. It is clear that one should never be found in this situation. The consequence of this is that one needs two-way data synchronizations. In processes where the initial change takes place in the BIM (during reconstructions, for instance), the altered data has to be shared with the CAFM/IWMS system. In processes where the CAFM/IWMS takes the lead, the altered data has to flow into the BIM. This way we create a single source of truth, which will save time and money. There are numerous ways to implement data exchange, e.g., web services, file transfer, etc. Typically, CAFM/IWMS vendors will provide the means to implement. Model versioning — As explained earlier, a building will typically go through a number of reconstructions during its life cycle. Every significant reconstruction typically involves remodeling of its geometry and changes to its bill-of-materials. In fact, a new version of the building model emerges. One will need a strategy to manage those versions to effectively use them for FM operations. In fact, over time, we will have multiple models that describe the building: one as it was in the past, another describing the building in its current state, and potentially another model describing the building in its future state. For facility managers all these models are relevant. For example, in space management new spaces (dis)appear over time as result of reconstruction, impacting space footprint and space types. With that, cost profiles (leases) that the FM department is managing change over time. To effectively analyze future change or to understand cost profiles in the past, FM managers need to be able to connect to past, current, and future models. In fact, one needs to be able to “travel through time,” making sure that the BIM attached to each life cycle phase describes the building as it actually was at that time or how it will be in future.

Opportunity Is There BIM holds real promise for facility management. The technology is available today and adoption has started. Some governments do require BIM to be used currently or in the near future for construction projects, so the number of BIM models available will grow quickly. In other words, the opportunity is there. At the same time, facility managers are advised to approach BIM adoption as an information management exercise. Start small whenever possible and prioritize: think about the biggest problem to address first or the most appealing opportunity to materialize. Seek collaboration with the local IT staff and information management. When you do, the chances of success will rise exponentially. ■

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

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ENERGY/FACILITY PLANNING

Planning For Plant Expansion: A “How-To” on Electrical Substations Expanding an electrical substation can present challenges, but careful planning, collaboration with the utility, and choosing the right equipment will ensure a successful outcome. By John Wharton, P.E.; Senior Vice President, Gresham, Smith and Partners

ately, the name of the game in manufacturing has been modest growth, with most executives feeling cautiously optimistic about the industry’s outlook. The U.S. Industrial Production Annual Average Index was up 4.2 percent as we entered 2015, and similar increases are expected in 2016 and even 2017. In fact, a recent report indicated that manufacturers had elevated their revenue forecast for the next 12 months to 5.3 percent. And six in 10 industry leaders indicate that they are positive about the domestic economy. Opportunities are growing as the market continues to improve in the United States. And that growth means companies are considering new lines of products or simply ramping up production of existing lines. Expansion of manufacturing facilities is often the best way — or the only way — to achieve those business objectives. But

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even with the many benefits of expansion, it can be more complicated than starting fresh with a new facility. A particular challenge is the expansion of an electrical substation in order to support a larger manufacturing facility. Substations transform voltage levels coming from a utility to provide appropriate levels of power to a facility. When expanding a substation instead of building a brand-new one, many companies run into challenges. Often, plans were not made (or insufficient plans were made) for a future substation expansion during design and construction of the original facility. Therefore, it is often discovered that the available space indoors and outdoors may be limited and constrained, and companies may be forced to expand the switchgear building and transformer yard, or even build a completely new substation in another part of the plant. I ran into such a situation when providing engineering services for a steel manufacturing company. The company had been in operation for several years, and decided to install a new, larger electric arc furnace, which required the addition of a new transformer, new outdoor switchgear, and new indoor switchgear. The outdoor substation was completely full, so it was necessary to expand the substation area to accommodate the new equipment. This expansion required the relocation of a road and utilities, additional grading and fill material, and extensive coordination with the

electric utility. The project required careful planning in design and construction to allow the plant to continue operation, while keeping personnel safe during the construction activity.

In order to get started on the right path toward a successful substation expansion, I have learned there are six preliminary steps to follow:

1. Estimate necessary capacity — Assess the processes and equipment required for an expanded plant and use that information to help determine how much additional power will be needed. That data will then help determine what additional substation equipment, like switchgear and transformers, will be needed, and will serve as the basis for your initial discussions with the utility. 2. Identify the reliability requirements — Evaluate your manufacturing processes and decide how an electrical outage would impact your operation. If there are critical process areas, you may decide to provide redundant power service (like a double-ended substation), back-up engine-generators, or uninterruptible power supplies for that area. Some manufacturing companies request the utility to provide two independent services to provide an increased level of reliability. 3. Collaborate with the utility — The next step is to work with the local utility to make sure that sufficient power is available to support a larger substa-

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

tion. It is essential for the utility to know about the details of the project and be fully on board with supplying additional electricity. The utility may have to increase the wire size of its service or even add a new transformer off-property to increase the available capacity. But a solution can almost always be identified by proactively working together. 4. Evaluate the space — Most substations at industrial facilities have an exterior section that includes transformers and other equipment that connects to the utility, as well as an interior section that includes switchgear that supplies power to the plant. Before any further plans can be made, it is essential to evaluate the physical space available for expanding both indoors and outdoors. Finding adequate space may initially seem like an impossibility, but there is usually a way. I am familiar with projects that required the purchase of land across a street to accommodate the expanded substation. Sometimes finding a solution just takes a bit of creativity. Also, consider whether the original substation and its expanded counterpart will be tied together or kept separate. There are advantages and disadvantages associated with both scenarios, and each substation’s unique needs will help determine the answer. But remember that if one of the substations were to shut down or malfunction, a good design will ensure the other could keep running — that is a distinct advantage. 5. Conduct a power study — This fifth step may be the most important. A power study should be performed to determine how the additional equipment and power system protection devices would interact with the utility. The utility’s capacity for things like short-circuit current, voltage stiffness, and harmonic content must be taken into account. Cables and transformers must be able to withstand short circuits and maintain the current and voltage within a target range when applying load. And if the plant generates a lot of harmonics, it is imperative to make sure it does not exceed the utility’s limit on harmonic content. All equipment

specified should work within the operating parameters. 6. Choose the appropriate technologies and equipment — Now is the time to choose the right equipment to accommodate load and operating conditions, as well as the right technologies to go inside the substation. Some questions to ask to help steer you toward the right equipment are: • Does the plant require arc-resistant switchgear? Are there other ways to mitigate the arc-flash hazard? • Will it be necessary to interface the new equipment with existing equipment in the substation? For example, some older types of switchgear are no longer made, meaning modifications may be necessary to accommodate both new and legacy equipment. • Will the transformers used be dry-type, oil-filled, or less flammable fluid-filled? Each technology has its plusses and minuses. • What type of relays will be used? Commonly used digital relays are sufficient, but there are new types available that meet IEC 61850 standards and are compatible with smart grid technology being implemented at some utilities. Of primary importance, safety and reliability should define any electrical substation and be kept in mind throughout the planning and design process. Sizing things appropriately in order to operate well within equipment ratings creates the ability to back-feed critical loads in the case of transformer or equipment failure. Such projects are certainly not easy, but they will become increasingly common as the economy rebounds and manufacturing companies become more competitive. By following the six steps outlined above and working with a qualified engineering firm for proper guidance, industrial manufacturers should be on their way to a successfully expanded plant and the profit gains that go along with it. ■ JOHN WHARTON, P.E., is a senior vice president in the Knoxville, Tenn., office of multi-disciplinary design and consulting firm Gresham, Smith and Partners. He can be reached at john_wharton@gspnet.com.

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NEW ENGLAND Connecticut Maine Massachusetts New Hampshire Rhode Island Vermont pg.

MID-ATLANTIC Delaware Maryland New Jersey New York Pennsylvania pg.

SOUTH

2016

ANNUAL DIRECTORY of STATE & SELECT SITES CONTACTS

MIDWEST

SOUTH ATLANTIC Florida Georgia North Carolina South Carolina Virginia West Virginia

SOUTHWEST Index To Regional Reviews and State Information

PACIFIC

CANADA

Alaska California Hawaii Oregon Washington

PLAINS Kansas Nebraska North Dakota South Dakota pg.

pg.

Illinois Indiana Iowa Michigan Minnesota Missouri Ohio Wisconsin pg.

Alabama Arkansas Kentucky Louisiana Mississippi Tennessee

pg.

For STATE CONTACTS and contact information on all SELECT SITES, see the listings beginning on page 100 after the Regional Reviews and state-by-state information.

This directory is organized by region and states within each region. Information on each state’s demographics, right-to-work status, traditional/expanding industries, and basic business taxes — plus a chart containing detailed manufacturing employment data — can be found on the pages that follow. Following all the regional/state information are the listings for the state-level contacts and for all of the SELECT SITES — also organized regionally. These are the organizations that are 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

pg.

MOUNTAIN

MEXICO pg.

Arizona New Mexico Oklahoma Texas

Colorado Idaho Montana Nevada Utah Wyoming pg.

detailed information on all of the SELECT SITES — as well as contacts for thousands of 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.

Visit

for SELECT SITES profiles and links. AREA DEVELOPMENT | 2016 Annual Directory

NEW England

Connecticut Maine Massachusetts New Hampshire Rhode Island Vermont

JOINING THE ECONOMICRECOVERY BANDWAGON

AS A PRIME RECIPIENT OF VENTURE-CAPITAL INVESTMENT, THE NEW ENGLAND REGION IS CONTINUING TO ATTRACT ENTREPRENEURS AND GROW JOBS.

New England finally joined other regions of the United States on the economic-recovery bandwagon in 2015, gaining traction that the states collectively hadn’t been able to gain since long before the Great Recession. The region’s job-growth performance was the latest encouraging sign in New England’s ongoing but painful evolution into a bastion of the services and technology economy and grudgingly away from its traditional manufacturing acumen. New England remains a vibrant economy with solid market fundamentals and some expansion decisions driven by a variety of industry sectors, including life sciences, technology, and insurance. The rapt attention being paid to whether General Electric STATE POPULATION LABOR FORCE would actually move its headquarters out of Connecticut underConnecticut 3,590,347 1,851,700 scored the region’s dislocation as a manufacturing stronghold. Maine 1,330,100 698,900 But New England still can celebrate the occasional triumph of Massachusetts 6,745,408 3,569,800 manufacturing expansion, such as the decision by the maker of New Lincoln Logs to return some of the manufacture of the toys to Hampshire 1,326,813 660,200 Maine. Rhode Island 1,051,471 435,000 In fact, one of the signature economic development achieveVermont 626,562 347,200 ments of 2015 for the region came when Pride Manufacturing announced that production of the toy logs already had started at its Burnham, Maine, plant. Lincoln Logs have been used by children around the world for STATE RIGHT TO WORK nearly a century. Pride already produced wooden golf accessories such as tees and cleats as Connecticut No well as wooden cigar tips at the factory. The company’s contract to produce Lincoln Logs is one Maine No example of a growing trend toward manufacturing finished wood products in Maine, a market Massachusetts No that has been increasing as a number of companies redirect production from overseas to the U.S., according to analysts. New Hampshire No Rhode Island No Venture-Capital Investment Vermont No One of the most significant indicators of a brightening picture for New England is the fact that the region received the third-highest level of venture-capital investment of any U.S. region, Connecticut 36.5% after the Silicon Valley and New York metro areas, according to the latest Money Tree survey by PricewaterhouseCoopers. New England venture funding in the second quarter of 2015 regisMaine 27.9% tered $1.5 billion going into 139 companies. Massachusetts 39.4% A big part of the reason for more venture-capital interest in New England resides in BurNew Hampshire 33.7% lington, Vermont. The company is the birthplace of Ben & Jerry’s, the progressive-minded Rhode Island 31.3% and highly successful ice-cream brand now owned by Unilever, which helped create a local Vermont 34.8% orientation toward entrepreneurship. *Bachelor's degree or higher, percent of persons A Burlington entrepreneur created the ad-free, social-media site Ello, for instance, which exage 25+, 2009–2013 Source: U.S. Census Bureau, ACS, revised Oct. 2015 ploded in popularity in 2014. Two Middlebury College graduates designed IrisVR, virtual-reality

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CONNECTICUT

NEW HAMPSHIRE

transportation, machine tools, jet engines, submarines, helicopters, financial services, health services, biotechnology, pharmaceuticals, telecommunications, software, tourism, precision manufacturing

electronic and electrical equipment, software, financial services

TRADITIONAL INDUSTRIES: Manufacturing, insurance, shipbuilding,

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

MAINE

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

TRADITIONAL INDUSTRIES: Industrial and commercial machinery, EXPANDING INDUSTRIES: Aerospace composites, software

development, biotechnology, medical devices, financial services, logistics, food manufacturing, healthcare services

RHODE ISLAND

TRADITIONAL INDUSTRIES: Finance, defense, insurance, health

services, educational services, boat and shipbuilding, fabricated metal products, machinery, jewelry

EXPANDING INDUSTRIES: Healthcare, life sciences, digital media,

financial services, high-tech electronic manufacturing, marine science technology, information technology, environmental technology

renewable energy, defense technology, financial services, industrial products and infrastructure services, consumer products and design, professional and educational services, information technology, marine trades

MASSACHUSETTS

VERMONT

security, financial services, information technology, life sciences, manufacturing, maritime commerce, renewable energy

captive insurance

EXPANDING INDUSTRIES: Biotechnology, composite materials,

TRADITIONAL INDUSTRIES: Creative industries, defense and homeland

TRADITIONAL INDUSTRIES: Manufacturing, tourism, agriculture,

EXPANDING INDUSTRIES: Management, scientific, and technical

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

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

software geared toward engineers and architects. And a pair of Green Mountain College graduates opened Blu-Bin, one of the first commercial 3D-printing shops. Thus, Vermontâ&#x20AC;&#x2122;s largest city made the list of NerdWalletâ&#x20AC;&#x2122;s most innovative tech hubs in 2015 at No. 9, right after highly acknowledged digital hot spots Provo, Utah, and Austin, Texas. Burlington, which also is a tourist mecca, made the list because it ranked third-highest in the number of tech-related patents per 1,000 residents and because Burlington enjoys a slightly above-average density of tech startups.

Job Growth But overall job growth is perhaps the best indicator that New England is regaining some of its erstwhile economic footing. In fact, in the second half of 2015, New England experienced the fastest rate of year-over-year job gains since 2001 as well as persistent declines in unemployment rates. Home-price growth continued at a modest but consistent pace in the first half of the year, while single-family permits accelerated following a slow start to the year.

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CONNECTICUT

Specifically, payroll employment in the third quarter grew by 2.1 perTRANSPORTATION EQUIPMENT 25.5% cent both in New England FABRICATED METAL PRODUCTS 17.7% and for the United States MACHINERY 8.8% COMPUTER & ELECTRONIC as a whole. And while the PRODUCTS 7.9% nation posted 14 consecuCHEMICALS 6.9% tive months of year-overOTHER MANUFACTURING 33.3% INDUSTRIES year job gains in excess of 2 percent, it was the first time that New England MAINE had recorded growth Principal Manufacturing Industries (As % of Total Manufacturing Employment) above 2 percent since February 2001. The leader in TRANSPORTATION EQUIPMENT 17.0% New England’s improving PAPER PRODUCTS 12.0% FOOD MANUFACTURING 10.0% performance was MasFABRICATED METAL PRODUCTS 10.0% sachusetts, whose growth WOOD PRODUCTS 9.0% actually exceeded national COMPUTER & ELECTRICAL PRODUCTS 5.0% and regional rates, with 5.0% MACHINERY MANUFACTURING 2.6 percent job growth CHEMICAL MANUFACTURING 4.0% between August 2014 and PLASTICS & RUBBER PRODUCTS 4.0% August 2015. OTHER MANUFACTURING INDUSTRIES 24.0% With a wealth of universities and teaching hospitals in the region, MASSACHUSETTS job growth in MassachuPrincipal Manufacturing Industries (As % of Total Manufacturing Employment) setts was bolstered over the last several years by COMPUTER & ELECTRONICPRODUCTS 22.8% the education and health FABRICATED METAL PRODUCTS 12.7% services sectors. They have FOOD 9.3% been “bright spots” for MACHINERY 7.1% the state as it rebounds CHEMICALS 6.6% from the nationwide recesTRANSPORTATION EQUIPMENT 5.2% 4.8% PLASTICS & RUBBER PRODUCTS sion, employing a higher PRINTING & RELATED percentage of the state’s SUPPORT ACTIVITIES 4.7% workforce than these ELECTRICAL EQUIPMENT & APPLIANCES 3.8% sectors do more broadly OTHER MANUFACTURING across the country, says INDUSTRIES 22.9% Robert Triest, an economist with the Federal Reserve NEW HAMPSHIRE Bank of Boston. “This is an Principal Manufacturing Industries (As % of Total Manufacturing Employment) area where Massachusetts really excels.” ELECTRICAL MACHINERY The spillover effect of & ELECTRONICS EQUIPMENT 20.2% MACHINERY (EXCEPT ELECTRICAL) 16.2% all the brainpower in metro PROFESSIONAL, SCIENTIFIC, Boston also is boosting & CONTROLLING INSTRUMENTS 9.8% economic development FABRICATED METAL PRODUCTS 7.6% RUBBER & MISCELLANEOUS in New Hampshire, which 7.4% PLASTIC PRODUCTS offers its own strong talent PRINTING, PUBLISHING, & ALLIED INDUSTRIES 6.8% pool as well as easy comPRIMARY METAL INDUSTRIES 4.8% muting and other lifestyle OTHER MANUFACTURING advantages. As a state, it INDUSTRIES 27.2% has focused on attracting and retaining technology companies. The city of Nashua, for instance, has offered financial incentives to tech startups. One of them is Plexxi, which offers a line of switches used in data centers and enterprise information technology networks. The company currently has about 90 Principal Manufacturing Industries (As % of Total Manufacturing Employment)

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RHODE ISLAND employees, most of whom Principal Manufacturing Industries (As % of Total Manufacturing Employment) are working at the Nashua headquarters. Last fall the FABRICATED METAL PRODUCTS 18.6% firm entered expansion COMPUTER & ELECTRONIC PRODUCTS 7.9% mode again with $35 million CHEMICALS 7.1% in new investor funding, PLASTIC & RUBBER PRODUCTS 7.0% which was added to the PLASTIC PRODUCTS 6.7% $48 million in funding since MACHINERY 5.9% NAVIGATIONAL, MEASURING, Plexxi was founded in 2011 ELECTROMEDICAL & by David Husak, an MIT CONTROL INSTRUMENTS 5.6% FOOD 5.4% graduate. PRINTING & RELATED And Rhode Island is welSUPPORT ACTIVITIES 4.8% coming new businesses to MEDICAL EQPT. & SUPPLIES 4.7% the state that have been atMACHINE SHOP PRODUCTS 3.9% TEXTILES 3.5% tracted by its export-friendly FURNITURE & RELATED PRODUCTS 3.3% infrastructure as well as OTHER MANUFACTURING by Rhode Island officials’ INDUSTRIES 15.6% trade missions abroad. For example, Monaghan Bros., which makes furniture for bars and restaurants in Ireland, plans to open a showroom in Rhode Island and eventually a factory. Meanwhile, the experience of the state’s workforce is helping it secure economic traction even against places with much

CONNECTICUT — Basic Business Taxes Corporation Business Tax: 7.5 percent of net income of corporations; 100 percent exemption on data-processing equipment; R&D carryforward tax credit; R&D tax credit exchange for cash Sales and Use Tax: Retail sales or leases of tangible personal property and certain services are subject to sales and use taxes at a 6.35 percent rate with some exceptions Property Tax: Rates vary among local jurisdictions and are based on actual value of real and personal property; in practice, property is assessed at 70 percent of value

MAINE — Basic Business Taxes Corporate Income Tax: 3.5 percent of net income applies to the first $25,000; 7.93 percent applies to the next $50,000; 8.33 percent applies to the following $175,000; and 8.93 percent applies to Maine net income in excess of $250,000 Corporate Filing Fees: $145 minimum filing fee for domestic corporations; $250 application fee for foreign corporations Sales and Use Tax: 5.5 percent of the sales price on retail sales of tangible property and certain services Property Tax: Real and personal property is taxed locally at varying rates

MASSACHUSETTS

— Basic Business Taxes

Single Sales Factor: Yes (for manufacturing companies) Corporate Income Tax Rate: 8 percent Sales and Use Tax: 6.25 (machinery and equipment is exempt) Personal Property/Real Estate Tax: Levied by local authorities across the state (average rate of $16.97 per $1,000 assessed property value)

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

NEW HAMPSHIRE — Basic Business Taxes

RHODE ISLAND

Corporate Income Tax: 8.2 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) Telecommunications Tax: 7 percent Machinery Tax: None Inventory Tax: None Estate Tax: None Capital Gains Tax: None Real Estate Transfer Tax: 0.75 percent per $100 of price Rooms & Meals Tax: 9 percent Business Enterprise Tax: 0.75 percent on the enterprise value tax base; this is a dollar-for-dollar credit against business profits

Corporate Income Tax: 7 percent (down from 9 percent per RIGL 44-11-2) Sales and Use Tax: 7 percent Municipal Property Tax: Rates vary per community County Tax: None

stronger reputations for job expansion. Okonite, for example, a cable manufacturer, decided to stay in Cumberland, Rhode Island, and double the square footage of its facility rather than expand in the oil patch, even though the utility power lines it makes are used mainly on drilling platforms in the Gulf of Mexico region. “There was a strong argument being made that we could’ve and should’ve moved to Texas because that’s where our product is consumed,” an Okonite executive said. “But when we looked at it closely, we didn’t want to lose our [100] employees.” The region will continue to grow more robustly through 2018, according to the New England Economic Project, which projects an average annual economic growth rate for the region of 2.4 percent through 2018, a rate slightly below the projected national average of 2.7 percent for the same period. That outlook reflects an expected peak of 2.9 percent growth in 2015 and then a leveling off to 2.7 percent in 2016.

Year-End Challenges As noted, much of the discussion of the New England economy as 2016 breaks has been around whether General Electric, one of the world’s pre-eminent industrial giants, would actually leave Connecticut, the state where it had been headquartered for 40 years, over what GE CEO Jeffrey Immelt alleged was the lack of a “pro-business environment.” Immelt complained publicly about Connecticut’s taxes last summer and said GE would seriously have to consider whether

— Basic Business Taxes

VERMONT — Basic Business Taxes Corporate Income Tax: $0-$10,000: 6 percent; $10,001-$25,000: $600 plus 7 percent of the excess over $10,000; $25,001 and over: $1,650 plus 8.5 percent of the excess over $25,000; minimum tax for corporations is based on Vermont gross receipts: $2 million or less = $300 tax; >$2 million to $5 million = $500 tax; >$5 million = $750 tax. Pass through entities pay a minimum annual tax of $250 Corporate Organization and Qualification Fees: Department of Taxes does not collect corporate organizing fees (although the Secretary of State website states that the corporate organizing fee for domestic corporations is $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, 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: The nonresidential statewide education property tax rate is $1.59 per $100; other rates vary by municipality

it made any sense to continue to be headquartered in Connecticut, whereupon the company was courted by about a dozen governors of other states. But Connecticut Governor Dan Malloy wasn’t giving up easily, offering a package of new incentives to GE to stay. “We would like them to remain in the state,” he said. And legislators including Senate Republican leader Len Fasano wanted to reconsider corporate taxes, including the “combined reporting” method of calculating the corporate income tax that GE sharply criticized. In the meantime, Connecticut has continued to add some jobs in the financial-services sector. Synchrony Financial, the spinoff of GE and GE Capital, plans to add at least 200 jobs in Stamford to its existing workforce of 350 people. The company will be eligible for grants of up to $20 million based on hiring targets, including $10 million for the first 200 jobs it creates. “Fueling growth in our core industries is one of the keys to our state’s long-term economic success, and Connecticut has the right mix of financial services know-how and resources,” says Governor Malloy. — Dale Buss

AREA DEVELOPMENT | 2016 Annual Directory

Delaware

MiD-Atlantic RETAINING & GROWING JOBS THROUGH DIVERSIFICATION

Maryland New Jersey New York Pennsylvania

THE MID-ATLANTIC STATES ARE PUTTING MEASURES IN PLACE TO RETAIN THEIR TRADITIONAL MANUFACTURING JOBS, WHILE ALSO SECURING INVESTMENTS IN PHARMA, WELLNESS-BASED FOOD, AND OTHER EMERGING SECTORS.

Companies and employment in the Mid-Atlantic region are getting roiled by everything from the plunging prices of oil and other commodities to changes in manufacturing technology and the impact of the strong dollar on exports. Development efforts in the Mid-Atlantic States have been focusing not only on battling these headwinds but also on securing new investments in facilities and jobs in the economy’s fast-growing areas ranging from pharmaceuticals to bioengineering to all-natural foods to digital technologies.

Job Retention, Diversification

STATE Delaware Maryland New Jersey New York Pennsylvania STATE Delaware Maryland New Jersey New York Pennsylvania

Delaware Maryland New Jersey New York Pennsylvania

935,614 5,976,407 8,792,000 19,746,227 12,787,209

RIGHT TO WORK No No No No No

28.9% 36.8% 35.8% 33.2% 27.5%

*Bachelor's degree or higher, percent of persons age 25+, 2009–2013 Source: U.S. Census Bureau, ACS, revised Oct. 2015

But occasionally, attempting to ensure the economic future of the region is as simple as going to the mat to help com466,696 panies and preserve jobs that are already there. That’s exactly 3,111,329 what happened in November after New York Gov. Andrew 4,518,000 Cuomo and U.S. Sen. Charles Schumer came up with an incen9,615,300 tive package that lured Alcoa into keeping open two plants in the Syracuse area. 6,372,000 The aluminum giant had been planning to close two smelting plants in Massena, N.Y., in response to changes in the aluminum market, especially falling aluminum prices. But the politicians were able to assemble $68.8 million of state government assistance over 3-1/2 years to keep the plants open and preserve the jobs of nearly 600 workers, in exchange for Alcoa’s commitments, including a workforce development training program to prepare workers for the high-tech jobs of the future, and with a provision for the state to take a lighter hit if prices of the metal improve. Yet New York also has been battling to leverage the legacy diversity of its economy into advances in a variety of products and services beyond the heavy manufacturing that traditionally anchored its economy. SolarCity, for example, the solar-panel maker that is owned by Elon Musk of Tesla fame, pledged in October to hire another 1,500 workers in the next decade for its South Buffalo complex in addition to the 3,000 people that the company already hoped to hire. Officials hope the plant will produce about 30,000 solar panels a week once it is fully operational in five years. The first phase of the one-million-square-foot plant may be production-ready by the end of 2016. Another growing opportunity for New York is distribution, particularly taking advantage of the state’s location on the Eastern Seaboard as a point of departure for growing exports from manufacturers across the United States. For example, Purolator International, the

POPULATION

AREA DEVELOPMENT

LABOR FORCE

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

Canada-based shipping company, renovated and outfitted a 21,000-square-foot facility in Jericho, N.Y., where it is consolidating and expanding its operations and expects to create 40 jobs that will help it respond to rising exports by its clients. And Ferguson Enterprises, the nation’s largest distributor of residential and commercial plumbing supplies, opened its new $40.5 million distribution facility in Coxsackie, N.Y., planning to create 95 jobs there and preserving 319 retail jobs across the state with the completion of the project.

A Manufacturing Stronghold Elsewhere in the region, states and companies continue to work together to buttress and expand the Mid-Atlantic’s historic strengths in various types of manufacturing. In Delaware, for instance, AB Group Packaging, a 30-year-old paper bag and flexible packaging producer with plants in Ireland, Spain, and

STATES AND COMPANIES CONTINUE TO WORK TOGETHER TO BUTTRESS AND EXPAND THE MID-ATLANTIC’S HISTORIC STRENGTHS IN VARIOUS TYPES OF MANUFACTURING.

DELAWARE

TRADITIONAL INDUSTRIES: Manufacturing, agriculture, finance, chemistry EXPANDING INDUSTRIES: Professional and business services,

transportation and utilities, education and healthcare, leisure and hospitality, financial activities

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

NEW JERSEY

TRADITIONAL INDUSTRIES: Agriculture, life sciences, manufacturing, distribution, services, financial activities

EXPANDING INDUSTRIES: International trade, biotechnology, food

production, healthcare, research and development, business services, travel and tourism

NEW YORK

TRADITIONAL INDUSTRIES: Manufacturing, transportation, agriculture,

tourism

EXPANDING INDUSTRIES: Biomedical/biotech; green/clean tech;

communications and media services; distribution; fashion, apparel, and textiles; food processing; industrial machinery and systems; information hardware and software; materials processing; optics and imaging; wood products

PENNSYLVANIA

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

the United Kingdom, opened its first U.S. plant in 2015, creating 87 new full-time jobs. Gov. Jack Markell says the arrival of AB Group Packaging — which makes products for commercial retailers such as T.J. Maxx, Nike, and Hard Rock Café; and industrial customers like Ball Packaging, Crown Cork, and Weber Charcoal — represented a win for Delaware on two fronts. “The kind of manufacturing jobs they create will help support long-term economic growth in a key industry,” Gov. Markell notes. “With this plant, AB also joins a number of international companies that are expanding in or moving operations to our state — an important trend in today’s global economy.” AB Group Packaging’s largest customer is Primark, which recently acquired several well-performing, recently shuttered Sears department

DELAWARE Principal Manufacturing Industries (As % of Total Manufacturing Employment)

FOOD COMPUTER & ELECTRONIC PRODUCTS CHEMICALS FABRICATED METAL PRODUCTS PLASTICS & RUBBER PRODUCTS PAPER OTHER MANUFACTURING INDUSTRIES

36.4% 11.3% 10.4% 6.2% 6.9% 2.7% 26.1%

MARYLAND Principal Manufacturing Industries (As % of Total Manufacturing Employment)

COMPUTER & ELECTRONIC PRODUCTS FOOD CHEMICALS FABRICATED METALS PRODUCTS PRINTING & RELATED SUPPORT ACTIVITIES MACHINERY PLASTICS & RUBBER PRODUCTS TRANSPORTATION EQUIPMENT NONMETALLIC MINERAL PRODUCTS FURNITURE & RELATED PRODUCTS OTHER MANUFACTURING INDUSTRIES

17.2% 14.3% 11.4% 7.9% 7.2% 6.4% 5.9% 4.8% 3.9% 3.4% 17.6%

NEW JERSEY Principal Manufacturing Industries (As % of Total Manufacturing Employment)

CHEMICALS FOOD COMPUTER & ELECTRONIC PRODUCTS FABRICATED METAL PRODUCTS PRINTING & RELATED SUPPORT ACTIVITIES MACHINERY PLASTICS & RUBBER PRODUCTS OTHER MANUFACTURING INDUSTRIES

20.3% 12.7% 9.5% 8.2% 6.1% 5.9% 6.0% 31.3%

NEW YORK Principal Manufacturing Industries (As % of Total Manufacturing Employment)

COMPUTER & ELECTRONIC PRODUCTS FOOD FABRICATED METAL PRODUCTS MACHINERY CHEMICALS PRINTING & RELATED SUPPORT ACTIVITIES PLASTICS & RUBBER PRODUCTS TRANSPORTATION EQUIPMENT APPAREL OTHER MANUFACTURING INDUSTRIES

15.4% 11.8% 11.1% 9.8% 8.9% 4.7% 4.5% 4.4% 4.1% 25.4%

AREA DEVELOPMENT | 2016 Annual Directory

PENNSYLVANIA

stores in the Northeast. Primarkâ&#x20AC;&#x2122;s acquisition boosted AB Group PackFABRICATED METAL PRODUCTS 14.4% agingâ&#x20AC;&#x2122;s need for a U.S. FOOD, BEVERAGE & TOBACCO PRODUCTS 13.2% operation. MACHINERY 8.6% Meanwhile, Solenis CHEMICAL PRODUCTS 7.2% LLC, a leading manufacPRIMARY METALS 7.0% turer of specialty chemiTRANSPORTATION EQUIPMENT 6.9% 6.2% PLASTICS & RUBBER PRODUCTS cals, has established COMPUTER & ELECTRONIC its global headquarters PRODUCTS 5.6% in Wilmington, Del., ELECTRICAL EQUIPMENT & APPLIANCES 4.6% where it has plans to PRINTING & RELATED add up to 122 new fullSUPPORT ACTIVITIES 4.3% PAPER PRODUCTS 4.2% time positions. Solenis, WOOD PRODUCTS 3.6% which transitioned from NONMETALLIC MINERAL a commercial unit of PRODUCTS 3.5% Ashland Inc. to a standOTHER MANUFACTURING INDUSTRIES 10.7% alone company in 2014, will be adding wellpaying IT, legal, sales, financial, and other positions at its new 40,000-square-foot headquarters. Principal Manufacturing Industries (As % of Total Manufacturing Employment)

DELAWARE â&#x20AC;&#x201D; Basic Business Taxes 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 â&#x20AC;&#x201D; Basic Business Taxes 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

Growth in Pharmaceuticals States in the region increasingly attempt to leverage their historic concentration of pharmaceutical companies into further development opportunities. For example, Chugai Pharma USA opened a new office dedicated to translational

clinical research in Berkeley Heights, N.J. The facility serves as the hub for Tokyo-based Chugai, which entered the U.S. market in 1982. â&#x20AC;&#x153;New Jerseyâ&#x20AC;&#x2122;s standing as a key market for pharmaceutical innovation will aid in the growth of our U.S. talent and operations, which will in turn support and further strengthen our pipeline of novel therapies designed to fulfill unmet Pocono Mountains Corporate Center East needs and improve patientsâ&#x20AC;&#x2122; lives across 250 KOZ/KIZ-approved acres ready for your business now! the world,â&#x20AC;? says Norihisa Onozawa, president and CEO of Chugai Pharmaŕ Ž 2L`Z[VUL 6WWVY[\UP[` AVUL ceutical USA. 26A (WWYV]LK Meanwhile, Bergen Medical Products ,SPTPUH[LZ :WLJPĂ&#x201E; J is the epitome of an emerging bio :[H[L HUK 3VJHS ;H_LZ technology company that successfully ŕ Ž 2L`Z[VUL 0UUV]H[PVU AVUL leverages state resources to sustain and 20A (WWYV]LK â&#x20AC;&#x153;Our cost to deliver 7YV]PKLZ [H_ JYLKP[Z MVY JVTWHUPLZ strengthen its position in the marketto our customers is SLZZ [OHU LPNO[ `LHYZ VSK place. The Cedar Knolls, N.J.-based busiidentical to what it would be in NJ, 7LYMLJ[ MVY LU[YLWYLUL\YZ ness, which creates products to reduce with many more post-surgical complications, attracted advantages.â&#x20AC;? ŕ Ž (KQHJLU[ [V 0 HUK 0 HUK VUS` more than $400,000 last year from Steve Somers H ZOVY[ KPZ[HUJL MYVT 0 HUK 0 Vigon International 3LZZ [OHU TPU\[LZ [V 5@* VY investors who benefited from the stateâ&#x20AC;&#x2122;s 7OPSHKLSWOPH Angel Investor Tax Credit Program. Adŕ Ž *HU IL JVUĂ&#x201E; N\YLK [V Z\P[ ministered by the New Jersey Economic Development Authority (EDA), the proŕ Ž (SS \[PSP[PLZ HYL YLHK` [V NV gram provides tax credits of 10 percent of a qualified investment in an emergâ&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s about a four percent tax advantage ing technology business that conducts being in Pennsylvania research, manufacturing, or technology instead of NJ. Itâ&#x20AC;&#x2122;s a big deal.â&#x20AC;? commercialization in the state. William Pote â&#x20AC;&#x153;As someone who has over 20 years MegaPhase Call us for an appointment today. of experience working for medical device PMEDC.com 877.736.7700 and pharmaceutical companies and lives

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AREA DEVELOPMENT

AREA0521.indd 1

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com 09/12/15 9:28 PM

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.)

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 6.5 percent. In 2015, corporations pay the highest tax computed on the following three alternative bases: (1) a tax of 6.5 percent on allocated business income (0 percent for qualified New York State manufacturers); (2) a tax of 0.125 percent (0.106 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 nonmanufacturers 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 $4,230 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

Susan Homberg Muia, 410.369.1297 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

Brent Prossner, 301.961.3079 1,000 sq. ft. to 88,000 sq. ft. Class A Oﬃce

16461 Excalibur Road in New Jersey, starting Bergen Medical Products in New Jersey was an easy choice,” John Bailye, Bergen Medical Products’ chairman, told the EDA. “We investigated other locations, but New Jersey consistently returned the highest value for readiness and talent for employees, centralization to transportation and logistics, as well as the specialized supplier network that has been optimized for serving New Jersey’s current large base of medical device, biomed, and pharmaceutical companies.” Pennsylvania is another Mid-Atlantic State that increasingly has been tapping into the growth of the pharmaceutical and bioengineering sectors. For example, Adaptimmune

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

Bowie is Bullish on Maryland! 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 | 2016 Annual Directory

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02/11/15 4:23 PM

STATES IN THE REGION INCREASINGLY ATTEMPT TO LEVERAGE THEIR HISTORIC CONCENTRATION OF PHARMACEUTICAL COMPANIES INTO FURTHER DEVELOPMENT OPPORTUNITIES.

Therapeutics, a clinical stage biopharmaceutical company focused on developing T-cell receptor cancer immunotherapy treatments, will create at least 110 new, high-paying jobs with an expansion project at the Philadelphia Navy Yard. The company will expand operations and relocate to a 46,000-square-foot site, investing more than $4 million.

Producing “Better-For-You” Food Products

The Mid-Atlantic States are increasingly pivoting toward a central role in the “better-for-you” food trend that favors startup and disruptive new ventures and penalizes traditional, large packaged-goods manufacturers that tend to be concentrated in the Northeast and Midwest. For instance, All Fresh Farms, an indoor hydroponic

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

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AREA DEVELOPMENT

AREA0515.indd 1

production and packaging operation that specializes in growing lettuce mixes, kales, and basil, is establishing a new facility in Pike County, Pa., that will create at least 200 new jobs. The company plans to invest more than $3.4 million at the new site, with plans to double the size of the facility within the first five years of operation. “Our leafy vegetables and other produce will be labeled ‘locally grown,’ as we deliver to markets within 400 miles, which will include Philadelphia; Washington, D.C.; and New York City. This is a great location with a great welcome to our company,” Steve Nelson, the company’s owner, told the Pocono Record in May. And Pinnacle Foods plans a new plant to produce its Gardein brand of plant-based proteins, which are at the center of the move by U.S. consumers toward more vegan sources of protein. Pinnacle’s new plant in Hagerstown, Md., will create 85 to 125 jobs by the end of 2018, giving Gardein its first East Coast manufacturing presence. — Dale Buss

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com 09/12/15 8:51 PM

MiDWesT

Illinois Indiana Iowa Michigan Minnesota Missouri Ohio Wisconsin

A STRONG AUTO SECTOR AS WELL AS INDUSTRIAL DIVERSIFICATION IS HELPING THE MIDWEST REGION TO MEET TODAY’S ECONOMIC CHALLENGES.

STILL A SOLID PLACE TO INVEST STATE Illinois Indiana Iowa Michigan Minnesota Missouri Ohio Wisconsin STATE Illinois Indiana Iowa Michigan Minnesota Missouri Ohio Wisconsin

Illinois Indiana Iowa Michigan Minnesota Missouri Ohio Wisconsin

POPULATION

LABOR FORCE

12,880,580 6,596,855 3,107,126 9,992,727 5,457,173 6,063,589 11,594,163 5,798,800

6,525,677 3,230,540 1,701,500 4,808,017 3,003,833 3,058,118 5,724,701 3,077,100

RIGHT TO WORK No Yes Yes Yes No No No Yes

31.4% 23.2% 25.7% 25.9% 32.6% 26.2% 25.2% 26.8%

*Bachelor's degree or higher, percent of persons age 25+, 2009–2013 Source: U.S. Census Bureau, ACS, revised Oct. 2015

The economy of the Midwest is being whipsawed

these days, as some robustly positive trends struggle to offset some negative ones, and the tensions manifest themselves in development as well as in the economy as a whole. The largely Midwest-based automotive industry, for example, is humming along, pushing almost unbelievably to new records in U.S. sales and hauling hundreds of companies in the region along with it. Manufacturing in general continues to benefit from the reshoring phenomenon. Call centers increasingly favor the Midwest over any other region of the country. And technology companies — native-born, as well as those headquartered on the coasts — have begun to warm up to the talent and work ethic that resides in America’s heartland. What’s more, the Midwest has been the capital of much of the innovation at the state level that directly benefits economic development, ranging from tax cuts and deregulatory thrusts put in place by Republican governors to the spread of right-to-work laws that threaten the traditional Rust Belt industrialized union ethos. Indiana, for instance, recently was named the third most business-friendly state in America according to a report released by Pollina Corporate Real Estate. The state’s business climate under Gov. Mike Pence rose in the Pollina ranking from No. 7 in 2014 and from No. 23 in 2010. Missouri legislators were able to pass a bill that would have made the Show Me State the nation’s 26th to join the right-to-work movement, but Gov. Jay Nixon vetoed it. Meanwhile, Republican Gov. Bruce Rauner is going head-to-head with the Democratic legislature in Illinois in an attempt to root out the public-union protection that Wisconsin Gov. Scott Walker successfully attacked across the northern border in Wisconsin.

Some Challenges But, meanwhile, a handful of formerly very positive factors for the Midwest have been mitigated somewhat. They include a stronger dollar and struggling economies overseas, which hurt manufacturing exports. The continued decline in oil prices has taken much of the spark out of the exploration and production boom in new energy fields. The eclipsing of traditional Midwestern consumer packaged goods giants by startup food and beverage companies has sapped the region of a long-time source of well-paying jobs. And declines in the prices of major agricultural commodities have shaken everything from rural stability to AREA DEVELOPMENT | 2016 Annual Directory

ILLINOIS

MISSOURI

advanced manufacturing (including auto, aerospace, heavy equipment), agriculture/food processing, supply chain/logistics/ warehousing, energy, business services (including finance, technology, real estate, and insurance), corporate headquarters relocation, foreign direct investment

service and trade

TRADITIONAL & EXPANDING INDUSTRIES: Biomedical/life sciences,

INDIANA

TRADITIONAL INDUSTRIES: Agriculture, manufacturing, tourism, 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

TRADITIONAL INDUSTRIES: Agriculture, steel, automotive, life

OHIO

EXPANDING INDUSTRIES: Aerospace, life sciences, advanced

aerospace and aviation, biohealth, energy, financial services, information technology, agribusiness and food processing, chemicals and polymers

sciences, motorsports, wood and wood products, electronics, plastics, food processing

manufacturing, automotive, distribution and logistics, information technology, national security and defense, motor sports, healthcare services, entrepreneurship and innovation, insurance and financial services

TARGET INDUSTRIES: Advanced manufacturing, automotive,

WISCONSIN:

TRADITIONAL INDUSTRIES: Manufacturing, agriculture, forestry,

tourism

IOWA

TRADITIONAL INDUSTRIES: Value-added agriculture, manufacturing EXPANDING INDUSTRIES: Renewable energy, information solutions,

EXPANDING INDUSTRIES: Finance; biotechnology; advanced

manufacturing; healthcare IT; biotechnology; water technology; energy, power, and control

financial services/ insurance, advanced manufacturing, biosciences

ILLINOIS

MICHIGAN

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, micro- and nanotechnology, pharmaceuticals, medical devices, instrumentation and diagnostics, research and ancillary services

MINNESOTA

TRADITIONAL INDUSTRIES: Healthcare, medical product manufacturing, computer and electronic product manufacturing, food processing, industrial machinery manufacturing

EXPANDING INDUSTRIES: Healthcare, administrative services, professional and technical services, clean energy

farmland prices to employment at agricultural-equipment giants such as John Deere and J.I. Case. Thus, toward the end of 2015, the Mid-America Business Conditions Index maintained by Creighton University continued to slump, indicating what the Omaha-based school called “contraction in manufacturing and point[ing] to slow negative economic growth over the next three to six months for the overall regional economy.” As has been true for at least a century, as goes manufacturing, so goes the Midwest economy. And lately, observed Ernie Goss, director of Creighton’s Institute for Economic Inquiry, “the strong U.S. dollar and global economic weakness are hav-

ing a negative impact on manufacturers and businesses linked to manufacturing in the region.” Double-digit-percentage declines in wholesale prices for farm products and energy, he said, have taken a huge toll on the Midwest, starting with its manufacturers. In fact, between late 2014 and late 2015, the region’s manufacturing sector lost almost 12,000 jobs, or about 1 percent of the total manufacturing jobs in the Midwest.

Automotive Comeback It was a good thing, then, that auto sales continued their remarkable seven-year arc into record territory by pushing the 2015 total in the United States to more than 17 million, an accomplishment

Principal Manufacturing Industries (As % of Total Manufacturing Employment)

FABRICATED METAL PRODUCTS MACHINERY FOOD CHEMICALS TRANSPORTATION EQUIPMENT PLASTIC AND RUBBER PRODUCTS COMPUTERS AND ELECTRONIC PRODUCTS OTHER MANUFACTURING INDUSTRIES

16.0% 13.9% 13.4% 7.8% 7.2% 7.0% 5.5% 29.2%

INDIANA Principal Manufacturing Industries (As % of Total Manufacturing Employment)

TRANSPORTATION EQUIPMENT 24.0% FABRICATED METAL PRODUCTS 12.0% PRIMARY METAL INDUSTRIES 8.2% RUBBER & PLASTIC PRODUCTS 8.2% MACHINERY 7.7% FOOD MFG. 7.2% 4.3% CHEMICALS FURNITURE & RELATED PRODUCTS 4.1% COMPUTER & ELECTRONIC PRODUCTS 3.1% PRINTING 3.0% OTHER MANUFACTURING INDUSTRIES 18.2%

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IOWA Principal Manufacturing Industries (As % of Total Manufacturing Employment)

FOOD & BEVERAGES MACHINERY FABRICATED METALS TRANSPORTATION EQUIPMENT COMPUTERS & ELECTRONICS PLASTICS & RUBBER PRODUCTS CHEMICALS WOOD PRODUCTS OTHER MANUFACTURING INDUSTRIES

24.1% 19.0% 9.5% 7.6% 5.6% 4.9% 4.6% 4.0% 20.8

MICHIGAN Principal Manufacturing Industries (As % of Total Manufacturing Employment)

TRANSPORTATION EQUIPMENT FABRICATED METAL PRODUCTS MACHINERY FOOD PLASTICS & RUBBER PRODUCTS CHEMICALS PRIMARY METALS FURNITURE & RELATED PRODUCTS OTHER MANUFACTURING INDUSTRIES

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27.7% 13.9% 12.1% 6.7% 6.6% 5.3% 3.8% 3.7% 20.2%

last seen a decade ago — and reasoned by many experts since then as a level that domestic sales in the American auto industry never again would achieve. One huge indicator of the industry’s accomplishments of the last seven years was that the United Auto Workers was able to obtain very lucrative settlements for its members who work at the strongly profitable Detroit Three automakers, in new contracts concluded in late 2015 after the rank-andfile had gone without a raise since 2009. The new pacts include not only significant raises in base wages for veteran workers but also, significantly, the gradual phasing out of the significantly lower “Tier 2” wages that had enabled

General Motors, Ford, and Fiat Chrysler to make small cars profitably in the U.S. Another factor that will hugely affect the Detroit Three automakers is the future of the “selfdriving” car, which will be propelled by advances in an array of digital technologies. Carmakers are staking more and more of their own investments on autonomous driving. Ford, for example, became the first automaker to test autonomous vehicles at M City, a new, 32-acre facility designed to replicate a city environment located at the University of Michigan in Ann Arbor. “The goal of M City is that we get a scaling factor,” says Ryan Eustice, a principal collaborator for the university with Ford. “Every mile

MINNESOTA Principal Manufacturing Industries (As % of Total Manufacturing Employment)

FOOD PRODUCTS COMPUTER & ELECTRONIC PRODUCTS FABRICATED METAL PRODUCTS MACHINERY PRINTING & RELATED SUPPORT ACTIVITIES MISC. PRODUCTS (MOSTLY MEDICAL DEVICES) OTHER MANUFACTURING INDUSTRIES

15.0% 14.0% 14.0% 10.0% 8.0% 7.0% 32.0%

MISSOURI Principal Manufacturing Industries (As % of Total Manufacturing Employment)

TRANSPORTATION EQUIPMENT FOOD PRODUCTS FABRICATED METAL PRODUCTS MACHINERY CHEMICALS PLASTICS & RUBBER PRODUCTS PRINTING & RELATED SUPPORT ACTIVITIES ELECTRICAL EQUIPMENT, APPLIANCES, & COMPONENTS COMPUTER AND ELECTRONIC PRODUCTS OTHER MANUFACTURING INDUSTRIES

16.3% 14.9% 11.3% 9.9% 7.3% 6.0% 4.9% 4.1% 3.8% 21.5%

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OHIO Principal Manufacturing Industries (As % of Total Manufacturing Employment)

TRANSPORTATION EQUIPMENT FABRICATED METAL PRODUCTS MACHINERY FOOD PLASTICS & RUBBER PRODUCTS CHEMICALS PRIMARY METALS ELECTRICAL EQUIPMENT, APPLIANCES & COMPONENTS NONMETALLIC MINERAL PRODUCTS OTHER MANUFACTURING INDUSTRIES

18.4% 15.8% 12.2% 8.8% 8.6% 6.6% 6.0% 4.2% 3.9% 15.5%

WISCONSIN Principal Manufacturing Industries (As % of Total Manufacturing Employment)

FABRICATED METAL PRODUCTS 16.1% MACHINERY 14.7% 14.3% FOOD PLASTICS AND RUBBER PRODUCTS 6.7% 6.4% PAPER PRINTING AND RELATED SUPPORT ACTIVITIES 6.2% 5.7% TRANSPORTATION EQUIPMENT ELECTRICAL EQUIPMENT, 5.0% APPLIANCES, AND COMPONENTS COMPUTER AND ELECTRONIC PRODUCTS 3.8% 3.8% WOOD PRODUCTS 3.7% CHEMICALS 3.6% PRIMARY METALS FURNITURE & RELATED PRODUCTS 3.4% OTHER MANUFACTURING 6.6% INDUSTRIES

driven there can represent 10, 100 or 1,000 miles of on-road driving in terms of our ability to pack in the occurrences of difficult events.” In the meantime, it’s not just the traditional American Big Three that are pumping more money into the Midwest’s auto manufacturing sector. Honda, for example, has continued to expend hundreds of millions of dollars building up its huge car-manufacturing complex in central Ohio, and Toyota continues to invest heavily in its plant in Indiana. In fact, Indiana is benefiting from an overall aggressiveness in landing new companies and new plants that goes a long way in explaining its rising reputation. “Since day one of this administration,” Pence said, “we have made job creation job one by cutting costs and taxes for families and job creators, reducing regulations that and investing in our growing

make it hard to do business, workforce.” And solidifying Missouri’s position as a leader in the automotive sector, auto-parts maker LMV Automotive Systems completed a $90 million manufacturing facility and Innovation and Training Center in Liberty, Mo., in September. The new center, located in the company’s recently completed 469,600-square-foot facility, is expected to train hundreds of employees in its first year in skilled trades and world-class manufacturing best practices. The training center will also be a focal point in LMV’s new partnership with Northland CAPS, an organization that provides high school students with opportunities to gain

ILLINOIS — Basic Business Taxes Corporate Income Tax: 5.25 percent on net income apportioned to Illinois, plus an additional 2.5 percent for corporate personal property replacement (Exception: partnerships, trusts, and “S” corporations pay 1.5 percent in personal property replacement tax) Sales Tax: State rate of 6.25 percent on retail purchases of tangible personal property plus an optional additional tax ranging from 0.0-3.5 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 8.95 percent (exception: Cook County property is assessed at 25 percent for commercial/industrial property and 10 percent for residential property)

INDIANA — Basic Business Taxes Corporate Adjusted Gross Income Tax: 6.5 percent in 2015 and reducing to 4.9 percent by 2021 Individual Income Tax: Flat rate of 3.3 percent for 2015 and 2016, reducing to 3.23 percent by 2017; 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

IOWA — 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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MICHIGAN â&#x20AC;&#x201D; Basic Business Taxes

MINNESOTA 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 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 is 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

Corporate Income Tax: Corporationsâ&#x20AC;&#x2122; 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 exempts capital equipment (machinery and equipment) used in the manufacturing process from the sales tax. 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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09/12/15 PM AREA DEVELOPMENT | 2016 Annual10:32 Directory

MISSOURI — Basic Business Taxes

WISCONSIN — 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)

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

OHIO — Basic Business Taxes Commercial Activities Tax: 0.26 percent of taxable gross receipts of more than $1 million per calendar year is subject to this tax. Taxpayers with gross receipts between $150,000 and $1 million 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

exposure and skills related to high-demand/high-skill professions such as engineering, computer software development, and advanced manufacturing.

Diversification Significantly, the Midwest overall is developing more and more pockets of company expansion and job growth tied to healthcare, digital technology, and other verticals not

AREA DEVELOPMENT

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always associated with an area so dependent historically on manufacturing and agriculture. This includes a burgeoning medical-equipment manufacturing business in Minnesota, for example. Iowa also exemplifies the diversification of business in the Midwest. It has built an environment that fosters success for insurance and financial services, with Principal Financial, Wells Fargo Mortgage, John Deere Financial, and nearly 6,400 other financial and insurance companies locating in the state, including nearly 140 insurers. State officials note that Iowa has built an environment that fosters success for insurance and financial services. There is no state corporate income tax on out-of-state sales, federal tax deductibility on in-state sales, and a premium tax of just 1 percent. And both Drake University and the University of Iowa have highly ranked actuarial science programs; Drake’s Kelley Insurance Center provides tailor-made programs to mold industry leaders. In a home-grown example, Alorica, a financial services firm in West Des Moines, announced in 2015 that it plans to hire another 150 people, a huge multiplication of its existing workforce of 40 in the Des Moines suburb. Iowa also retains a primary place in the crucial Midwest

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food processing industry. In fact, three days after Tyson Foods closed its beef plant in Denison, Iowa, axing 400 jobs, another Denison company picked up the slack and announced plans to bring new jobs to the community. Quality Food Processors says it plans to add 200 jobs after a $20 million expansion of its plant that makes bacon products and ready-to-eat smoked meats. Wisconsin’s economic performance has been in the spotlight for a few years as it climbed various rankings of business performance under Gov. Scott Walker. And while Walker wasn’t able to generate as much job growth as he promised, Wisconsin’s increasingly diversified economy keeps notching some impressive wins, mixing both companies new to the state and existing corporate citizens in the process. Fast-growing Dollar General, for example, selected Janesville, Wis., for its one-million-square-foot Midwest distribution center — its first operational www.stmarysdevelops.com outpost in the region — and the hiring Phone: 419-300-3117 of 552 full-time employees by 2019. info@stmarysdevelops.com And few companies in the Midwest can match the expansiveness of Epic Systems, a company that makes AREA0519.indd 1 09/12/15 the software on which about 50 percent of Americans’ medical records are stored; the company hit revenues of $1.7 billion in 2013. Epic already employs about 8,000 people at its fast-expanding campus in Verona, Wis., in suburban Madison, and continues to expand. Campus Five, now under construction — even though Campus Four isn’t finished yet — would add a half-million square feet of office space. Finally, in western Michigan, a Las Vegas company plans to build a highThe Madison Region is constantly setting new standards for tech data center in a pyramid-shaped the global marketplace with game-changing technologies, building formerly owned by businessa skilled workforce and ﬁrst-class academics. From our furniture giant Steelcase, which moved leadership in advanced manufacturing and agriculture to a new facility. The company, Switch, to our innovative solutions in bioscience and information said that at two million square feet, technology, our discoveries are pioneering change around it would be the largest data center in the world. Be in the company of leaders as you expand the eastern United States. Part of the or relocate your business. Call 608.571.0420 or visit appeal of Michigan, a Switch spokesmadisonregion.org. person says, is that the state is far from traditional earthquake zones and other natural risks on the coasts. It’s always COLUMBIA | DANE | DODGE | GREEN | IOWA | JEFFERSON | ROCK | SAUK been said that the Midwest is solid. And that’s not just a metaphor. — Dale Buss

10:26 PM

THE MADISON REGION CONNECTS TALENT WITH TECHNOLOGY TO IMPACT GLOBAL INDUSTRY.

AREA DEVELOPMENT | 2016 Annual Directory AREA0522.indd 1

09/12/15 10:30 PM

PL AiNS RANKING HIGH FOR BUSINESS FRIENDLINESS

Kansas Kansas Nebraska Nebraska North North Dakota Dakota South South Dakota Dakota

ALREADY A POWERFUL REGION FOR ENERGY PRODUCTION, THE PLAINS STATES ARE LURING TECHNOLOGY FIRMS WITH THEIR LOW TAXES AND OTHER PRO-BUSINESS POLICIES.

From a policy perspective, the Plains States have a particularly friendly approach to business, according to a recent ranking by Chicago-based Pollina Corporate Real Estate. Its top 10 list of the most business-friendly states for 2015 had Nebraska in second place, Kansas fifth, and North Dakota sixth, with South Dakota in the 16th slot. Nebraska and Kansas, in particular, demonstrated a “winning combination of labor, taxes, and low-cost business environment as well as outstanding economic development programs,” according to the firm’s report. Forbes is also high on the region. Its 2015 Best and Worst STATE POPULATION LABOR FORCE States for Business evaluation puts Nebraska as third-best, North Dakota fourth, and South Dakota ninth. And Kansas Kansas 2,900,000 1,481,000 was a top-10 performer in Thumbtack’s 2015 Small Business Nebraska 1,826,341 1,022,152 Friendliness Survey. The state boasted an A ranking, up from North Dakota 739,482 416,367 a B the year before, and its tax code pulled in an A+. South Dakota 853,175 448,205 Driving these kinds of rankings are business-friendly incentive programs and tax structures. Kansas, for example, enacted STATE RIGHT TO WORK a series of business tax reforms in the past couple of years that have dramatically cut the tax Kansas Yes burden. The reforms reduced the number of tax brackets, while also lowering the rates. Nebraska Yes Technology and E-Commerce North Dakota Yes The region’s welcoming environment has spurred the growth of a variety of sectors, not South Dakota Yes the least of which is technology and e-commerce. Some might expect more densely populated areas to have a tech advantage, but the Plains States are working diligently to counKansas 30.3% ter that impression. For example, North Dakota has one of the nation’s lowest population densities, yet 95 percent of that population can plug into broadband services, and there’s one Nebraska 28.5% region of the state that boasts 100 percent fiber. South Dakota, meanwhile, offers a Certified North Dakota 27.2% Technology Park program to drive tech-focused business development. South Dakota 26.2% Tech sectors are growing across Nebraska, too. In Lincoln, for example, recent expansion *Bachelor's degree or higher, percent of persons announcements include the e-commerce firm Spreetail, moving into space at the Nebraska age 25+, 2009–2013 Source: U.S. Census Bureau, ACS, revised Oct. 2015 Innovation Campus, and Hudl, a sports video software firm that’s building a new headquarters and adding as many as 300 new high-tech jobs. North Dakota is putting propellers on its technology sector, working hard to become a leader in the high-growth drone business. The 217-acre Grand Sky business park at Grand Forks Air Force Base claims to be the nation’s first operations-ready business and aviation park focused on unmanned aerial systems, or UAS. Northrop Grumman recently broke ground on a UAS facility there, while General Atomics Aeronautical Systems broke ground for a training academy. Meanwhile, Kansas played host to a UAS industry summit at the National Center for Aviation Training in Wichita, a logical choice given its strong cluster of aircraft manufacturers and suppliers — it’s an area that refers to itself as the “Air Capital of the

AREA DEVELOPMENT

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Come take advantage of all Kansas has to offer... •

A central point for distribution

•

A highly educated, productive workforce

•

A business-friendly government

•

A right-to-work environment

•

Outstanding highway and rail infrastructure

•

Diverse group of industries

•

Low operating costs

•

Excellent system of educational and research institutions

•

Generous sales tax exemptions & no property tax on equipment

•

Targeted incentives to assist new and expanding businesses

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NEBRASKA

KANSAS

TRADITIONAL INDUSTRIES: Aviation, agriculture/food processing, fabricated metal products, equipment and machinery, oil and gas

TRADITIONAL INDUSTRIES: Agriculture, manufacturing

EXPANDING INDUSTRIES: Professional services, bioscience/animal

telecommunications, machinery manufacturing

health, logistics/distribution, customer service centers, food manufacturing, back office, alternative energy, general manufacturing

EXPANDING INDUSTRIES: Food processing, healthcare,

NORTH DAKOTA

TRADITIONAL INDUSTRIES: Agricultural production, mining

World.” The state’s overall aerospace cluster continues to grow, too. Figeac-Aéro recently broke ground for new North American headquarters and a manufacturing KANSAS expansion in Wichita. It’s Principal Manufacturing Industries (As % of Total Manufacturing Employment) a French company that supplies the likes of Airbus, TRANSPORTATION EQUIPMENT 24.5% FOOD PRODUCTS 19.5% Bombardier, Embraer, and MACHINERY 11.8% others. Its manufacturFABRICATED METAL PRODUCTS 9.6% ing expansion is worth OTHER MANUFACTURING $20 million and about INDUSTRIES 34.6% 200 new jobs. The state also announced a reNEBRASKA stated Workforce Services Principal Manufacturing Industries (As % of Total Manufacturing Employment) Training Agreement with Textron Aviation. The comFOOD PROCESSING 35.1% pany employs more than INDUSTRIAL MACHINERY 10.6% 9,000 Kansans, and the FABRICATED METAL PRODUCTS 9.0% TRANSPORTATION EQUIPMENT 8.7% agreement is intended to RUBBER & PLASTIC PRODUCTS 5.4% support hundreds of milCOMPUTER & ELECTRONIC lions of dollars in product PRODUCTS 4.5% development and producPRINTING & RELATED ACTIVITIES 3.4% OTHER MANUFACTURING tion investments. INDUSTRIES 23.3% It’s not all aviation in Kansas, though. Closer to the ground, turf care NORTH DAKOTA Principal Manufacturing Industries product manufacturer (As % of Total Manufacturing Employment) Excel Industries recently MACHINERY 22.7% announced plans for a FOOD & BEVERAGES 19.8% facility in Edgerton, with WOOD PRODUCT/PRINTING 10.4% 200 jobs in the works. And TRANSPORTATION EQUIPMENT 10.2% Lawrence is the site of a FABRICATED METAL PRODUCTS 8.6% new call and support cenNONMETALLIC MINERAL PRODUCTS 6.8% COMPUTER & ELECTRONIC ter planned by USA 800; it PRODUCTS 5.4% promises 333 new jobs. PLASTICS & RUBBER PRODUCTS 5.3% South Dakota has been FURNITURE & RELATED PRODUCTS 3.2% chalking up wins for its OTHER MANUFACTURING INDUSTRIES 7.7% manufacturing sector in recent months. For example, Glacial Lakes Rubber and SOUTH DAKOTA Plastics is expanding in WaPrincipal Manufacturing Industries (As % of Total Manufacturing Employment) tertown and adding jobs; Lehigh Defense picked FOOD 19.9% MACHINERY 16.2% Rapid City for a firearms FABRICATED METAL PRODUCTS 10.3% components facility; and TRANSPORTATION EQUIPMENT 7.0% Polaris Industries will be FURNITURE & RELATED PRODUCTS 5.7% painting motorcycles and COMPUTER & ELECTRONIC PRODUCTS 5.3% hiring workers in Spearfish. WOOD PRODUCTS OTHER MANUFACTURING INDUSTRIES

5.0%

30.6%

Renewable Energy

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

SOUTH DAKOTA

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

KANSAS — Basic Business Taxes Corporate Income Tax: 4 percent of net income; in addition, net income in excess of $50,000 is subject to a 3 percent surtax for 2011 and thereafter. Effective tax year 2013, the non-wage business income for subchapter S corporations, limited liability corporations, limited liability partnerships, and sole proprietorships will be exempt from income tax in Kansas. Individual income tax rates are reduced as well to 4.6 percent as the top rate. Sales and Use Tax: 6.50 percent state rate on gross receipts from sales or leases of tangible personal property and certain services; cities and counties may collect an additional maximum of 1 percent Property Tax: Commercial and industrial machinery and equipment are exempt from property tax by state law; for real property, counties assess and administer the property tax; each taxing district makes its own levy within the limits set by state statute; residential property is taxed at 11.5 percent of fair market value and commercial and industrial property is taxed at 25 percent

NEBRASKA — Basic Business Taxes 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 Organization Filing Fees: Based on firm's paid-up capital stock; rate ranges from $60 for $10,000 or less of authorized capital stock to $300 for more than $100,000 plus $3 per $1,000 in excess of $100,000; annual occupation tax also assessed Sales Tax: 5.5 percent sales tax on gross receipts from retail sales and rental of tangible personal property; certain utilities; admissions; producing, fabricating, processing, printing, or imprinting; and lodging rentals for short periods Use Tax: Tax on storage, use, or consumption of tangible personal property purchased at retail when the sales tax has not been paid Property Tax: Levied by county and municipal subdivisions, including school districts; all property assessed at 100 percent of actual value; industrial sites located outside Nebraska cities normally taxed at a lower rate than property within city limits

The Plains States con-

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NORTH DAKOTA — Basic Business Taxes

SOUTH DAKOTA — Basic Business Taxes

Corporate Income Tax: The current corporate income tax rate range is 1.41 to 4.31 percent with exemptions. For taxable years after Dec. 31, 2014, taxpayers can elect to use a phased-in single sales factor to apportion business income for a five-year period Sales Tax: 5 percent on retail sales of tangible personal property and certain services; more than 100 cities levy local tax, ranging between 1 and 2.5 percent Property Tax: Administered, levied (at different levels), collected, and expended at the local level to support schools, counties, cities, townships, and other local government units; state does not levy a property tax for general government operations (with exemptions); five-year property tax exemption for new and expanding businesses with two extensions available Unemployment Tax: 1.12 percent of the first $35,600 of wages per employee for new businesses, nonconstruction Workers' Compensation Tax: Rates apply to only the first $35,600 of wages per employee. Employers may be eligible for a discount on their premium

Corporate Income Tax: None Bank and Financial Corporation Excise Tax: Varies from 0.25 to 6 percent depending on net income Retail Occupational Sales and Use Tax: 4 percent on retail sales of tangible personal property and certain services; cities may option a local sales tax of up to 2 percent on the gross receipts of all sales Contractors' Excise Tax: 2 percent tax imposed on the gross receipts of contractors who are engaged in construction services or realty improvements in South Dakota Property Tax: Local real property taxes vary from 1 percent to 3 percent of the taxable value of the structure; no personal property tax and no business inventory tax

tinue to be well suited for renewable energy installation. New wind generation capacity has vaulted Kansas to sixth place nationally, up from ninth, according to the American Wind Energy Association’s latest market report, and North Dakota comes in 11th. South Dakota and Nebraska are also high on the list of wind-power producers. By a different measure,

North Dakota claims national leadership in the field of wind power, with more than 17 percent of its electricity generated last year coming from wind. Beyond wind, it’s a powerful region for energy production in general. North Dakota, for example, has grown to become the nation’s No. 2 oil producer. The energy sector is among the drivers keeping jobless rates low in this region — 2.8 percent in North Dakota in September 2015, 2.9 percent in Nebraska, 3.5 percent in South Dakota, and 4.4 percent in Kansas. — Steve Stackhouse-Kaelble

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AREA DEVELOPMENT | 2016 Annual Directory

SoutH

Alabama Arkansas Kentucky Louisiana Mississippi Tennessee

MANUFACTURING LEADS THE WAY

WITH STRONG AUTOMOTIVE AND AEROSPACE SECTORS, AS WELL AS HIGHLY DEVELOPED WORKFORCE TRAINING PROGRAMS, THE SOUTH CONTINUES TO ATTRACT BUSINESS INVESTMENT.

Economic growth has been steady in the South in 2015, as the economy continues to rebound from the Great Recession. Projected job growth among the Southern States is in the 1 to 2 percent range. States known for their energy production (such as Kentucky for coal and Louisiana for oil and gas) are experiencing less demand, which is leading to job layoffs in these industries. However, the surplus that is causing low oil and gas prices isn’t all bad news — it actually helps chemical producers. For example, Taiwan-based Formosa Petrochemical Corporation plans to develop a $9.4 billion industrial complex of ethane crackers in St. James Parish in Louisiana. There are also multiple projects under way STATE POPULATION LABOR FORCE in southwest Louisiana to liquefy and export domestically proAlabama 4,849,377 2,146,100 duced natural gas for use in energy generation overseas. Arkansas 2,966,369 1,300,508 State governments continue to improve their business climates through new legislation, tax credits, and incentives. Kentucky 4,413,457 2,005,252 Alabama recently revamped its incentive programs, including Louisiana 4,649,676 2,180,800 the Alabama Jobs Act, which allows eligible companies that Mississippi 3,000,000 1,300,000 create at least 50 new jobs to receive a 3 percent jobs credit Tennessee 6,495,978 3,070,456 from the new employee wages after the first year, for a period up to 10 years. Kentucky’s Angel Investment Tax Credit allows STATE RIGHT TO WORK qualified investors to receive a tax credit of up to 50 percent of their investment in counties Alabama Yes with high unemployment rates, or “enhanced counties,” and 40 percent in all other counties. Arkansas Yes “Tennessee is also on a roll,” states Larry Gigerich, managing director for Ginovus, an Kentucky No Indianapolis-based site location firm. “Governor Haslam has done an excellent job of restructuring the state’s incentive programs, launching a free community college program, investing Louisiana Yes heavily in infrastructure, and making changes to the state’s tax code.” Mississippi Yes Another big attraction for employers is a state’s right-to-work status. With the excepTennessee Yes tion of Kentucky, all Southern States are right-to-work — although that may change soon. One of the most-watched gubernatorial races this year was in Kentucky. Republican busiAlabama 22.6% nessman Matt Bevin, who won the election with more than 50 percent of the vote, made right-to-work a major part of his campaign in an appeal to job-creators. “Following the latest Arkansas 20.1% converts of Indiana, Michigan, and Wisconsin, Kentucky could be next,” states John Boyd, Kentucky 21.5% principal with The Boyd Company, a location-consulting firm based in Princeton, N.J. Louisiana 21.8% Mississippi 20.1% Automotive Tennessee 23.8% The key driver to the South’s economy is manufacturing — especially automotive. The South *Bachelor's degree or higher, percent of persons continues to grow its number of auto assembly plants and supplier facilities. For example, Tenage 25+, 2009–2013 Source: U.S. Census Bureau, ACS, revised Oct. 2015 nessee’s automotive manufacturing industry includes three major assembly plants and automo-

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ALABAMA

MISSISSIPPI

chemicals, machinery

forest products, furniture, lumber and wood, shipbuilding

TRADITIONAL INDUSTRIES: Agriculture, chemicals, food processing,

TRADITIONAL INDUSTRIES: Agriculture, forestry, metalworking, EXPANDING INDUSTRIES: Transportation industries, information and

EXPANDING INDUSTRIES: Automotive, aerospace, advanced manufac-

ARKANSAS

TENNESSEE

paper, rubber/plastics, timber, transportation, agriculture EXPANDING INDUSTRIES: Business services/telecommunications, health services/infotechnology, transportation equipment, biotechnology, aerospace, steel

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

biotechnology, research and development, aerospace, distribution and logistics, services, tourism

turing, data centers and information technology, energy, distribution centers, healthcare, plastics and polymers, steel and metal fabrication

KEY SECTORS: Aerospace and defense; automotive; chemicals,

TRADITIONAL INDUSTRIES: Food and kindred products, metals,

KENTUCKY

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

LOUISIANA

TRADITIONAL INDUSTRIES: Oil and gas, petrochemicals, agriculture, timber, processed foods

EXPANDING INDUSTRIES: Advanced manufacturing, aerospace, agribusiness, clean tech, digital media and software, energy, entertainment, specialty healthcare, water management

tive facilities in 80 of 95 counties. The state continues to invest in training for its automotive workers, who comprise one of the largest populations of automotive workers in the South. For 2015, Alabama is on target to produce one million vehicles and nearly two million engines. Exports of Alabamamade vehicles and parts were valued at $7.3 billion in 2014, an all-time high. Expansions in the state continue, with Mercedes announcing a $1.3 billion, 300-job expansion to upgrade its Alabama facility for the production of next-generation SUVs. Kentucky is another automotive stronghold. Through the third quarter of 2015, automotive-related businesses announced 41 expansions or new locations in Kentucky, accounting for more than 1,000 new jobs and $770 million in

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09/12/15 8:46 PM AREA DEVELOPMENT | 2016 Annual Directory

ALABAMA Principal Manufacturing Industries (As % of Total Manufacturing Employment)

TRANSPORTATION EQUIPMENT FOOD FABRICATED METAL PRODUCTS PRIMARY METALS TEXTILE MILLS & PRODUCTS & APPAREL PLASTICS & RUBBER PRODUCTS WOOD PRODUCTS PAPER MACHINERY CHEMICALS COMPUTER & ELECTRONIC PRODUCTS FURNITURE AND RELATED PRODUCTS OTHER MANUFACTURING INDUSTRIES

20.4% 13.3% 9.9% 7.7% 6.2% 5.8% 5.4% 5.1% 4.5% 4.1% 4.1% 3.4% 10.1%

ARKANSAS Principal Manufacturing Industries (As % of Total Manufacturing Employment)

FOOD PRODUCTS FABRICATED METALS TRANSPORTATION EQUIPMENT MACHINERY RUBBER & PLASTICS PAPER PRIMARY METALS WOOD PRODUCTS ELECTRICAL EQUIPMENT & APPLIANCES CHEMICALS FURNITURE COMPUTERS & ELECTRONICS OTHER MANUFACTURING INDUSTRIES

28.6% 9.6% 8.4% 7.3% 7.0% 6.4% 6.4% 5.9% 3.5% 3.3% 2.2% 1.6% 9.7%

KENTUCKY Principal Manufacturing Industries (As % of Total Manufacturing Employment)

TRANSPORTATION EQUIPMENT FOOD FABRICATED METAL PRODUCTS MACHINERY PLASTIC & RUBBER PRODUCTS CHEMICALS PRIMARY METALS ELECTRICAL EQUIPMENT, APPLIANCES & COMPONENTS WOOD PRODUCTS PRINTING & RELATED SUPPORT ACTIVITIES PAPER OTHER MANUFACTURING INDUSTRIES

24.2% 11.1% 8.8% 8.2% 6.9% 5.1% 5.1% 4.6% 4.2% 4.1% 3.7% 14.0%

projected investment. For example, General Motors is investing $439 million in facility upgrades at its Corvette plant in Bowling Green — following up an investment of $135 million over the last four years at the plant. Of course, where auto manufacturers go, suppliers follow. Kamtek is investing $530 million in an expansion of its Alabama operation and SMP plans to build a $150 million, 700,000-square-foot facility to support Mercedes. In July 2015, Yanfeng Automotive Interiors announced plans to establish new $55 million automotive manufacturing operations in Chattanooga to provide interior components for Volkswagen. The South is also a booming center for tire manufacturing. One of the most recent projects is Yokohama Tire Company’s new production facility in West Point, Mississippi — the $300 million project will create 500 jobs, with future expansions expected.

Aerospace and Aviation In addition to its automotive sector, Alabama has long been a leader in aerospace manufacturing — Huntsville is famous for its aerospace R&D and major players such as NASA and Boeing. And Airbus recently opened its first manufacturing plant in

LOUISIANA the U.S. in Mobile. Principal Manufacturing Industries (As % of Total Manufacturing Employment) “This $600-million, state-of-the-art facility is a CHEMICALS 42.0% game-changer project for PETROLEUM & COAL PRODUCTS 29.9% FOOD, BEVERAGE, TOBACCO 6.7% both Airbus and the state FABRICATED METAL PRODUCTS 5.8% of Alabama,” says Boyd. “It MACHINERY 4.5% gives Airbus a new platform PAPER PRODUCTS 4.2% to compete with arch-rival OTHER TRANSPORTATION EQUIPMENT 4.0% Boeing. For Alabama, it NONMETALLIC provides leverage to attract 1.5% MINERAL PRODUCTS new aerospace suppliers OTHER MANUFACTURING INDUSTRIES 1.4% to the state.” For example, France-based Safran, which builds engines for singleMISSISSIPPI aisle jets as well as landing Principal Manufacturing Industries (As % of Total Manufacturing Employment) gear, plans to build a facility near Mobile to serve the FURNITURE AND WOOD PRODUCTS 19.8% new Airbus plant. TRANSPORTATION EQUIPMENT MANUFACTURING 17.9% “We believe the expanFOOD AND BEVERAGE 16.6% sion of the aerospace cluster PETROLEUM, CHEMICALS in Mobile will be a powerAND PLASTICS 10.4% PRIMARY AND FABRICATED ful job creator,” comments 9.4% METALS Greg Canfield, secretary of MACHINERY 8.5% the Alabama Department COMPUTERS AND ELECTRICAL 6.5% OTHER MANUFACTURING of Commerce. “Airbus’ INDUSTRIES 10.9% Alabama workforce recently numbered around 280, which will rise to 1,000 over TENNESSEE the next three years. The Principal Manufacturing Industries (As % of Total Manufacturing Employment) initial wave of suppliers and service providers are starting TRANSPORTATION EQUIPMENT 20.7% FABRICATED METALS 11.0% out in Alabama with small FOOD PRODUCTS 10.4% operations, but we expect MACHINERY 8.7% those to grow over time as CHEMICALS 8.1% well. This growth fits in with RUBBER & PLASTIC PRODUCTS 6.5% the Southeast’s expanding OTHER MANUFACTURING INDUSTRIES 34.6% aerospace corridor.” Kentucky exports in aerospace products and parts increased 15 percent for the first eight months of 2015 compared to the previous year. In Louisiana, Bell Helicopter recently dedicated its new Lafayette Aircraft Assembly Center, which will manufacture the new Bell 505 Jet Ranger X helicopter in early 2016. The first modern-era aircraft assembly facility in Louisiana, the Bell Helicopter project will create more than 250 new direct and indirect jobs. Aerospace is the number-one export in Arkansas, accounting for more than $1.8 billion in annual sales. About 180 aviation and aerospace-related companies operate within the state, specializing in aircraft manufacturing, component manufac-

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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

ARKANSAS — Basic Business Taxes 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 46.69

turing, and maintenance, repair, and overhaul. Major players include Aerojet Rocketdyne, Aviation Repair Technologies, Dassault Falcon Jet, General Dynamics, Lockheed Martin, Pratt & Whitney, and Raytheon Missile Systems. One of the reasons aerospace companies locate in Arkansas is the highly educated workforce — technical colleges offer a variety of programs in aviation fields such as airframe and power plant technology, electronics/avionics technology, and aviation management. Notable aerospace development in Arkansas includes Gal-

AREA DEVELOPMENT

OVER THE LAST DECADE THE SOUTH’S ECONOMY HAS DIVERSIFIED INTO KNOWLEDGE-BASED SECTORS SUCH AS INFORMATION AND COMPUTER TECHNOLOGY.

KENTUCKY — Basic Business Taxes Corporate Income Tax: 4 percent of first $50,000 of taxable net income allocated to Kentucky; 5 percent on next $50,000; 6 percent on taxable income over $100,000 Corporation Franchise Tax: None Sales and Use Tax: 6 percent of retail sales price of property sold, including utilities, that is used, consumed, distributed, or stored; 6 percent of rental charges and cost of admissions; no local sales tax Property Tax: Real property is taxed at a state rate of $0.122 per $100 and is also taxed by local jurisdictions at varying rates; manufacturing machinery, telephone equipment, and pollutioncontrol equipment are taxed only by the state at $0.15 per $100 assessed valuation

ley Support Innovations’ expansion in Sherwood, which will produce interior components for the aviation industry. Dassault Falcon Jet has completed a 250,000-square-foot hangar at its Little Rock completion facility that will be dedicated to the Falcon 5X twin-jet and the ultra-long range Falcon 8X tri-jet. Also, in September 2015, aerospace and defense company Aerojet Rocketdyne started construction on an expansion of its Camden facility that will create 85 new jobs. The Federal Aviation Administration recently selected Mississippi State University as the location for its Unmanned Aircraft Systems (UAS) Center of Excellence. Mississippi State is also a member of the Alliance for System Safety of UAS through Research Excellence (ASSURE), along with more than 20 other member universities and more than 100 industry partners. Mississippi State will lead the way in R&D for UAS technology.

High Technology Over the last decade the South’s economy has diversified into knowledge-based sectors such as information and computer technology. Louisiana has been successful in attracting IT firms such as IBM, CSC, CGI, CenturyLink, EA, Gameloft, and GE Capital — creating more than 5,000 new direct jobs in the software and technology sector. In the Shreveport/Bossier City

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area, CSC’s 116,000-square-foot, next-generation IT and data center will employ 800 technology professionals at National Cyber Research Park. Google has announced plans to build a $600 million data center in Alabama that will be powered entirely by alternative energy, creating 100 new jobs. It will be the fourteenth data center in Google’s global network and the first new center in the U.S. since 2007. Tennessee is also developing a reputation as one of the fast-growing tech regions in the country. For example, Intermedix Corporation, a provider of analytics and technology-enabled solutions for global health, plans to build an innovation lab and executive offices in Nashville. The lab will further develop the company’s analytics capabilities by leveraging big data technologies to provide advanced statistical models and predictive analytics.

force services to both new and existing businesses within the state. In 2014 KSN provided training to 4,100 companies and 84,000 Kentuckians across a variety of industry sectors, including manufacturing, healthcare, information technology, energy, distribution, and research and development. Another leading program is Louisiana Economic Development’s FastStart program, which was established in 2008 to provide comprehensive, highly customized workforce solutions for eligible manufacturing and service sector employers in the state. “This job-training program has helped Louisiana attract new high-tech industry and expansions — for example, IBM in Baton Rouge, GE in New Orleans, and

Logistics and Distribution With its abundance of transportation infrastructure and one-day proximity to nearly half the U.S. population, the South is ideally suited for logistics and distribution. Expansion of distribution facilities is especially brisk in Kentucky, Mississippi, Alabama, and Arkansas. In Alabama, for example, Korea-based LogisAll plans to open a $4 million facility in Macon County to serve the bustling Interstate 85 automotive manufacturing corridor, anchored by the Hyundai and Kia assembly plants. Arkansas also has a diverse and growing distribution and logistics services sector. In fact, 20 percent of the 25 largest employers in Arkansas are in the transportation services sector, including J.B. Hunt, USA Truck, FedEx, Union Pacific Railroad, PAM Transportation Services, and Dillard’s. Recent announcements in Arkansas include FedEx Ground ($52.3 million expansion, 215 workers, Little Rock); ArcBest ($23.8 million expansion, 975 workers, Fort Smith); and Ben E. Keith Foods ($60 million expansion, 74 workers, North Little Rock).

Developing the Workforce of the Future A compelling site selection factor for businesses is a high-quality, available workforce. One reason the South attracts so much business investment is the commitment by state governments to invest in high-quality, innovative, customized workforce development programs. One of these is the Kentucky Skills Network (KSN), which delivers flexible, personalized workAREA DEVELOPMENT | 2016 Annual Directory AREA0500.indd 1

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startups like Gameloft in New Orleans,” says Boyd. FastStart has started to develop a more sophisticated understanding of the state’s workforce supply and demand needs, incorporating not only standard occupational forecasts, but also “measures and deep analyses of mastery and experience needed, migratory patterns, career pathways, and the characteristics of economic driver industries,” says Gary Perilloux, communications director for Louisiana Economic Development. “This information will be used to fuel a cycle of continuous growth and improvement in state education and workforce development programs.” — Mark Crawford

ONE REASON THE SOUTH ATTRACTS SO MUCH BUSINESS INVESTMENT IS THE COMMITMENT BY STATE GOVERNMENTS TO INVEST IN HIGH-QUALITY, INNOVATIVE, CUSTOMIZED WORKFORCE DEVELOPMENT PROGRAMS.

LOUISIANA — Basic Business Taxes Corporate Income Tax: 4 percent on first $25,000; 5 percent on second $25,000; 6 percent on next $50,000; 7 percent on next $100,000; 8 percent over $200,000 based on net income of domestic and foreign corporations derived from Louisiana sources; federal income taxes are deductible in computing Louisiana net taxable income; state tax credits allowable under certain incentive programs can be used to offset all or part of corporate income taxes Corporate Franchise Tax: $1.50 per $1,000 on first $300,000 of issued and outstanding capital stock, surplus, and undivided profits; $3.00 per $1,000 above $300,000; state tax credits allowable under certain incentive programs can be used to offset all or part of corporate franchise taxes Sales and Use Tax: 4 percent levied on sale of tangible personal property at retail, as well as the use, consumption, distribution, or storage of tangible personal property and the sale of certain services in the state; 0 to 7 percent local rate; several exemptions provided for sales tax; electricity, water, natural gas are only subject to a 1 percent sales and use tax; 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)

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MISSISSIPPI — Basic Business Taxes Corporate Income Tax: 3 percent on first $5,000; 4 percent on second $5,000; 5 percent for income over $10,000 (exemptions) Corporate Franchise Tax: $2.50 for each $1,000 of capital invested in the state General Retail Sales Tax: 7 percent Property Tax: No state tax; local rates vary on real and tangible personal property with assessment ratio for most property at 15 percent of true value

TENNESSEE — Basic Business Taxes Sales and Use Tax: 7 percent state (food 5 percent) and 1.5–2.75 percent local Property Tax: Local only; 2013 median rate per $100 of assessed value for counties was $2.31 (TN Comptroller of the Treasury) 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

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72 AREA0512.indd AREA DEVELOPMENT 1

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SoutH-Atlantic

Florida Georgia North Carolina South Carolina Virginia West Virginia

DIVERSE INDUSTRIES REFLECT ECONOMIC GAINS

A REGION THAT GETS ITS PRO-BUSINESS MESSAGE ACROSS, THE SOUTH ATLANTIC’S GROWTH IN MANUFACTURING, INFORMATION TECHNOLOGY, AND LIFE SCIENCES HAS MOVED BEYOND BIG CITIES TO ITS SMALLER METRO AREAS AS WELL.

One of the best-performing regional economies in the U.S. in 2015 has been the South Atlantic. This region has experienced overall improvement in manufacturing, construction, technology, healthcare, and tourism. Infrastructure upgrades have also brought businesses to the region — e.g., Port of Charleston expansions are attracting distribution and logistics investment in South Carolina. As a result, commercial/industrial construction is on the rise. These economic gains are moving beyond big cities into smaller metro areas, creating manufacturing and tech-services growth and reducing unemployment rates. Employment growth in the South Atlantic has outpaced the STATE POPULATION LABOR FORCE U.S. average for the past two years and is about 2 to 3 percent for most states in 2015. The exception is West Virginia, where Florida 19,815,183 9,638,000 employment growth is essentially flat, thanks to reduced coal Georgia 10,097,343 4,756,708 and mining activity; this is, however, somewhat countered by North Carolina 9,943,964 4,752,391 activity in the productive Utica and Marcellus oil shale fields. South Carolina 4,832,482 2,113,743 Reduced federal spending — especially for defense contracts — Virginia 8,326,289 4,261,175 is also having negative impacts on some regional economies. West Virginia 1,850,326 790,000 A Diverse Mix STATE RIGHT TO WORK Florida Yes Georgia Yes North Carolina Yes South Carolina Yes Virginia Yes West Virginia No

Florida Georgia North Carolina South Carolina Virginia West Virginia

26.4% 28.0% 27.3% 25.1% 35.2% 18.3%

*Bachelor's degree or higher, percent of persons age 25+, 2009–2013 Source: U.S. Census Bureau, ACS, revised Oct. 2015

The South Atlantic economy reflects a diverse mix of traditional and knowledge-based industries, anchored by an historic manufacturing base that produces a wide range of goods, ranging from steel beams to semiconductors. Natural resources-based industries such as agriculture, timber, and energy are still strong. High-tech sectors — including aerospace, life sciences, biotechnology, pharmaceuticals, computers and information technology, electronics, and advanced manufacturing — continue to grow and diversify the regional economy. The South Atlantic States have done a good job of leveraging their assets to win significant business investment. For example, in fiscal year 2014–2015, Florida announced over 200 projects totaling $2.7 billion, which will create or retain more than 33,000 jobs. For the same FY, Georgia announced a total investment of $4.75 billion by 329 companies, creating about 27,000 new jobs — many of them in the software and technology, aerospace, and food processing sectors. These states are also continuing to pass legislation that reduces the cost of doing business. For example, North Carolina has strengthened its grant programs, making the state more competitive with others in the region. In Florida, the state legislature increased the total value of the R&D tax credit from $9 million to $23 million. The program is also no longer first-come, first-served — all applications will now be received and reviewed. If more than $23 million in credits are requested, credits will be distributed on a pro-rated basis. AREA DEVELOPMENT | 2016 Annual Directory

FLORIDA 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

GEORGIA

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

NORTH CAROLINA

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

SOUTH CAROLINA

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, biotechnology and life sciences

VIRGINIA 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

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

Robust Manufacturing The key driver of the South Atlantic’s economy is manufacturing. Manufacturers are attracted to the region because of the overall low corporate tax rates, skilled workforce, competitive wages, and right-to-work status. Transportation infrastructure is another key factor — manufacturers can get their products from here to the marketplace quickly via highway, rail, air, and port. Automotive is one of the most important manufacturing industries in the South Atlantic. South Carolina, with more than

AREA DEVELOPMENT

FLORIDA 250 automotive-related Principal Manufacturing Industries (As % of Total Manufacturing Employment) companies and suppliers, continues to attract auCOMPUTER & ELECTRONIC PRODUCTS 12.6% tomotive investment. For TRANSPORTATION EQUIPMENT 11.4% example, Volvo Cars plans to FABRICATED METAL PRODUCTS 9.9% invest $500 million in its first MISC. DURABLE GOODS 9.3% American manufacturing FOOD 8.7% facility in Berkeley County, CHEMICALS 5.5% PRINTING & RELATED creating 4,000 new jobs. SUPPORT ACTIVITIES 5.1% In Georgia, the automo2.9% BEVERAGE & TOBACCO tive sector has experienced PAPER 2.6% OTHER MANUFACTURING a 149 percent increase in INDUSTRIES 32.0% investment and 11 percent increase in jobs during FY 2014. Atlanta is becoming a GEORGIA leading city for auto technolPrincipal Manufacturing Industries (As % of Total Manufacturing Employment) ogy, with the GM Innovation Center and Panasonic AuFOOD 17.1% tomotive Innovation Center. TRANSPORTATION EQUIPMENT 12.9% TEXTILE PRODUCT MILLS 7.4% Mercedes-Benz USA recently FABRICATED METAL PRODUCTS 7.3% announced it would relocate MACHINERY 5.6% its headquarters from New PLASTICS AND RUBBER PRODUCTS 5.6% Jersey to Atlanta, creating 5.4% CHEMICALS 800 jobs and investing apTEXTILE MILLS 5.2% OTHER MANUFACTURING proximately $74 million. INDUSTRIES 33.5% Some of the South’s most robust aerospace clusters are in Virginia and NORTH CAROLINA Principal Manufacturing Industries Florida. Florida ranked first (As % of Total Manufacturing Employment) in the U.S. for aviation FOOD, BEVERAGE & manufacturing attractiveTOBACCO PRODUCTS 14.1% ness according to PricewaTEXTILES & APPAREL 9.5% terhouseCoopers. More CHEMICALS 9.5% than 2,000 aerospace and FABRICATED METAL PRODUCTS 8.1% FURNITURE & RELATED PRODUCTS 7.6% aviation companies have opCOMPUTER & ELECTRONIC erations in Florida, including 7.1% PRODUCTS Embraer, Northrop GrumRUBBER & PLASTIC PRODUCTS 7.1% TRANSPORTATION EQUIPMENT 7.1% man, Boeing, and Lockheed MACHINERY 7.0% Martin. In September 2015 ELECTRICAL EQUIPMENT Blue Origin — a space trans& APPLIANCES 4.8% portation company founded WOOD PRODUCTS 3.8% OTHER MANUFACTURING by Jeff Bezos, CEO of INDUSTRIES 14.3% Amazon.com — announced it would locate its $200 million orbital launch vehicle facility in Florida. Aerospace has also been a key industry in Virginia, where aerospace projects over the last decade represent a total capital investment of about $1.8 billion and about 7,300 new jobs. More than 265 aerospace firms operate in Virginia, including Boeing, General Dynamics, Lockheed Martin, and Ball Corporation. Rolls-Royce’s Crosspointe facility in Prince George County is a center of excellence for the manufacture of jet engine components and research collaboration. West Virginia has one of the highest concentrations of chemical manufacturers and polymer producers in the world — more than 150 chemical and polymer manufacturing companies employ about 12,800 workers throughout the state. Nearly 25 percent of the state’s $4.8 billion in international exports is comprised of chemicals and polymers. West

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

SOUTH CAROLINA

Virginia is also home to the Mid-Atlantic Technology, Research, and Innovation VEHICLES 34.0% Center (MATRIC), a center MACHINERY 18.0% RUBBER 7.0% of excellence for research ELECTRICAL MACHINERY 6.0% and innovation for chemisAIRCRAFT/SPACECRAFT 5.0% try and chemical products. PLASTICS 4.0% South Carolina also has 3.0% PAPER/PAPERBOARD a well-developed chemicals OPTICAL/MEDICAL INSTRUMENTS 3.0% ORGANIC CHEMICALS 2.0% and plastics industry. Major WOOD PULP, ETC. 2.0% manufacturers and procesOTHER MANUFACTURING sors include Fujifilm, 3M, INDUSTRIES 16.0% DuPont, and DAK Americas, whose South Carolina VIRGINIA polyethylene terephthalate Principal Manufacturing Industries (PET) polymer manufac(As % of Total Manufacturing Employment) turing plant is one of the TRANSPORTATION EQUIPMENT 21.5% largest in the U.S. Sealed FOOD PRODUCTS 12.1% Air’s Cryovac has multiple FABRICATED METAL PRODUCTS 7.5% facilities in South Carolina, MACHINERY 6.5% PLASTIC & RUBBER PRODUCTS 6.5% including a package design WOOD PRODUCTS 5.7% and development center 5.5% CHEMICALS and global production facilCOMPUTER & ELECTRONIC ity for medical containers PRODUCTS 5.2% PRINTING & RELATED and delivery systems. Re4.3% SUPPORT ACTIVITIES cent investment announceFURNITURE & RELATED PRODUCTS 3.9% ments by other companies OTHER MANUFACTURING 21.4% INDUSTRIES include Auriga Polymers ($35 million expansion, Spartanburg County) and Poly-America ($100 million facility, Chester County). Principal Manufacturing Industries (As % of Total Manufacturing Employment)

Coming to

Information Technology

WEST VIRGINIA Principal Manufacturing Industries (As % of Total Manufacturing Employment)

Georgia is a leader in CHEMICALS & PLASTICS 27.6% software and information WOOD PRODUCTS/FURNITURE/ technology development — PAPER/PRINTING 17.0% MACHINERY & TRANSPORTATION companies headquartered in EQUIPMENT 14.6% the state saw a 110 percent FABRICATED METAL PRODUCTS 10.9% increase in job growth and PRIMARY METALS 9.5% increased investment by 7.7% FOOD & BEVERAGES NONMETALLIC MINERAL PRODUCTS 5.8% 374 percent. Virginia is also COMPUTER EQUIPMENT & showing rapid growth, esELECTRICAL COMPONENTS 3.9% pecially in Internet technolOTHER MANUFACTURING INDUSTRIES 3.0% ogy, software development, fiber optics, and advanced communications. Microsoft Corporation recently announced it would invest $402 million to expand its data center site in Mecklenburg County — its fourth major expansion in five years. The Raleigh/Durham area in North Carolina continues to expand its IT reputation. “With a corporate roster including SAS, the world’s largest privately held software company, and Allscripts, a leading healthcare IT firm, Raleigh/Durham is emerging as a hotbed for software development,” states John Boyd, principal with The Boyd Company, a location consulting firm based in Princeton, N.J. “The area’s critical mass of technical talent is now attracting companies in leading-edge areas of cloud computing and cybersecurity.” West Virginia has developed a reputation for advanced identification technology, including biometrics. Research facilities include the U.S. Coast Guard’s Information Technology Center of Excellence, the FBI’s fingerprint identification center,

GREATER OSCEOLA, FL

20,000

* The smart sensor and photonics research project could create 20,000 high tech jobs over 10 years in the region.

HIGH WAGE, HIGH TECH JOBS*

$200 MILLION

INVESTMENT IN FLORIDA ADVANCED MANUFACTURING RESEARCH CENTER**

200 ACRES

** Osceola County has provided a 20-acre, pad-ready site and cash for construction of the 100,000 square foot facility with Class 10,000 cleanrooms. Other partners in the $200 million project include the University of Central Florida, The Corridor and the State of Florida. *** Contact Bill Martin for information on relocating your ﬁrm to or starting your company in Greater Osceola.

JUST WAITING FOR YOU.***

All we’re missing is you.

Partnership for Economic Prosperity 3 Courthouse Square, 2nd Floor Kissimmee, Florida 34741 (407) 742-4251 // bmartin@greaterosceola.com www.greaterosceola.com

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AREA DEVELOPMENT | 2016 Annual Directory

FLORIDA — Basic Business Taxes

SOUTH CAROLINA — Basic Business Taxes

Corporate Income Tax: 5.5 percent on apportioned income basis; $50,000 exemption subtracted to compare net Florida taxable income; S-corporations (with exemptions) and partnerships pay no state corporate income tax on earnings Sales Tax: 6 percent plus county option (current highest is 1.5 percent) Property Tax: Locally fixed rates at fair market value on real and tangible personal property; no state levy on real and tangible property

Corporate Income Tax: 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 used in business of repairing or reconditioning aircraft; 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 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

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 2-4 percent local sales tax Property Tax: No state millage rate as of Jan. 1, 2016. Local millage rates vary by county and city

NORTH CAROLINA — Basic Business Taxes Corporate Income Tax: 5 percent in 2015; rate will drop to 4 percent in 2016 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 Eligible businesses may receive tax exemptions, refunds and/or discounts on purchases from select property and services, such as manufacturing machinery and equipment, electricity used for manufacturing, water or raw materials 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

and NASA’s Independent Verification and Validation Facility. The Center for Identification Technology Research at West Virginia University focuses on biometric identification technology. The university also offers one of the few biometrics degree programs in the country.

Life Sciences Life sciences is a broad field that includes laboratory testing, pharmaceuticals, biotechnology, and medical devices and equipment. Considerable R&D is accomplished through collaborations with private-sector companies, research universities, government agencies, and renowned research institutes. Examples include the Centers for Disease Control and Preven-

AREA DEVELOPMENT

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

tion in Atlanta and the Hussman Institute for Human Genomics in Miami. In North Carolina, Research Triangle Park and the North Carolina Biotechnology Center have helped the state build a global reputation for research and development. This is reflected by diabetes drug manufacturer Novo Nordisk’s recent decision to build a $1.2 billion manufacturing facility in Johnston County. Georgia is home to more than 400 life science companies and numerous industry partnerships. An indication of the

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

WEST VIRGINIA â&#x20AC;&#x201D; Basic Business Taxes Corporation Net Income Tax: The corporation net income tax is imposed annually at a rate of 6.5 percent of federal taxable income allocated and apportioned to West Virginia Consumersâ&#x20AC;&#x2122; Sales and Service Tax (CSST) and Use Tax: West Virginia has a 6 percent consumersâ&#x20AC;&#x2122; 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

stateâ&#x20AC;&#x2122;s commitment to collaboration is the new $14 million Georgia BioScience Training Center in Newton County. Owned by the state of Georgia and operated by Georgia QuickStart, the stateâ&#x20AC;&#x2122;s workforce development program, the center will be used to train employees in the life sciences industry. One of the worldâ&#x20AC;&#x2122;s leading Alzheimerâ&#x20AC;&#x2122;s disease research facilities is located at West Virginia University in Morgantown. Researchers at the Blanchette Rockefeller Neurosciences

Institute have discovered how certain genes interfere with cellular function and communication in the brains of Alzheimerâ&#x20AC;&#x2122;s patients. It is hoped these results will lead to new ways to prevent and treat the disease, including developing drugs that can enhance molecular signaling in the brain.

Open for Business Having the technical know-how, expertise, workforce, incentives, infrastructure, and government support is one thing â&#x20AC;&#x201D; getting the message out is something else. The South Atlantic States have been very proactive in committing the necessary resources and in delivering their economic messages outside state borders at trade shows and on trade missions. For example, Virginia Governor Terry McAuliffe was one of the first governors to visit and reach out to the new Cuba. One metric of a stateâ&#x20AC;&#x2122;s economic development success is how much foreign investment it generates. In September 2015, for the third time in the last four years, IBM-Plant Location International (IBM-PLI) ranked South Carolina first in attracting jobs through foreign investment. â&#x20AC;&#x153;With more than 1,200 international establishments currently operating within our borders, South Carolina is enjoying tremendous success in foreign investment,â&#x20AC;? says South Carolina Secretary of Commerce Bobby Hitt. â&#x20AC;&#x153;Moving forward, the recruitment of international companies will remain a critical component of our economic development strategy as we seek to cultivate a dynamic, globally connected economy.â&#x20AC;? â&#x20AC;&#x201D; Mark Crawford

Cape Coral, Florida Come Grow With Us

Strategically located between Tampa and Miami, Cape Coral is Southwest Floridaâ&#x20AC;&#x2122;s largest city, with consistently high rankings as the best area to live and for job growth. At less than 50 percent built out, Cape Coral has room to grow. Let our Economic Development team help you find the ideal business site.

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Cape Coral Economic Development Office t ecodev@capecoral.net www.bizcapecoral.com

AREA DEVELOPMENT | 2016 Annual Directory 77 07/12/15 7:12 PM

SoutHWesT

POPULATION

Arizona New Mexico Oklahoma Texas STATE Arizona New Mexico Oklahoma Texas

Arizona New Mexico Oklahoma Texas

6,667,241 2,085,572 3,878,051 26,956,958

RIGHT TO WORK Yes No Yes Yes

26.9% 25.8% 23.5% 26.7%

*Bachelor's degree or higher, percent of persons age 25+, 2009–2013 Source: U.S. Census Bureau, ACS, revised Oct. 2015

New Mexico Oklahoma Texas

A PRO-BUSINESS ENVIRONMENT, DIVERSE ECONOMIC BASE, AND INFRASTRUCTURE INVESTMENTS ARE FUELING GROWTH IN THE U.S. SOUTHWEST.

A PROSPEROUS YEAR AHEAD STATE

Arizona

LABOR FORCE

The American Southwest is a land of economic con-

trasts. Although its prosperity has long depended on natural resources such as energy, minerals, agriculture, and livestock, the states in this region also have vibrant high-tech and advanced manufacturing industries. According to the Bureau of Economic Analysis (BEA), the Southwest was the fastest-growing BEA region for GDP in 2014 at 4.3 percent (U.S. real GDP grew 2.2 percent). The rate of GDP growth varied within the region. Texas is still the economic heavyweight, with its GDP growing by 5.2 percent. Its diverse mix of industries, pro-business climate, and available funding for projects are helping Texas to weather the current slump in oil prices. In September, Texas added 26,600 jobs across the state. Oklahoma and Arizona are also experiencing strong job growth. Arizona has added over 58,000 jobs to its employment base, making it one of the top 10 fastest-growing states for jobs. In fact, Forbes has named Arizona as having one of the highest job-growth rates, with Moody’s Analytics predicting 3.1 percent job growth annually. Oklahoma’s jobless rate was the 18th-lowest unemployment rate among all states in August. It’s been tougher for New Mexico. Employment levels are still below its pre-recession peak, with an unemployment rate about 6.8 percent. A big part of the problem is that New Mexico is more dependent on federal spending than any other state in the country. With tight budgets at virtually every level of government, for example, major defense contractors are competing for limited funding. 3,145,769 927,297 1,784,000 13,029,500

REVIEW SPONSORED BY: Opportunities abound in Conroe Conroe offers a skilled workforce, pad-ready sites with international access, great quality of place, and competitive incentives.

gcedc.org 78

AREA DEVELOPMENT

(936) 538-7118 for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

Pro-Business Climate

THE PROSPERITY OF THE SOUTHWEST STATES HAS LONG DEPENDED ON THEIR NATURAL RESOURCES, BUT THE REGION ALSO HAS VIBRANT HIGH-TECH AND ADVANCED MANUFACTURING INDUSTRIES.

Texas is well known for its lack of corporate tax and individual income tax. The Tax Foundation ranks Texas as one of the top states for overall business tax climate. Texas continues to invest in transportation infrastructure, implement tax-reduction measures, and fund its deal-closing Texas Enterprise Fund. Other states also continue to make themselves more business-friendly. Arizona Gov. Doug Ducey signed several bills this year that decrease regulatory burdens and streamline government functions. “In addition,” says Larry Gigerich, managing director for Ginovus, a site location firm in Indianapolis, Indiana, “changes made to Arizona’s job creation tax credit program have made the state more competitive.” An estimated $450 million in federal and state funding is being used to upgrade Arizona’s border gateways — improvements include a new commercial-only port in San Luis matched by Mexico with a new facility just south. A $244 million makeover of Arizona’s largest port, Nogales III, has doubled the commercial and passenger throughput. Historically, New Mexico has been the most liberal, labororiented state in the Southwest. Now, however, it is likely to be one of the next states in the country to adopt right-to-work

legislation in order to better compete with the neighboring right-to-work states of Arizona, Oklahoma, and Texas. “Gov. Susana Martinez has made the state more competitive with a series of business-friendly tax cuts and new workforce training programs,” says John Boyd, principal with The Boyd Company, a location consulting firm in Princeton, New Jersey. “A right-to-work law would be the crowning achievement of her administration.”

Key Industries

Oil and gas is the major industry in the Southwest. The prolonged slump in oil prices has been especially hard on Texas. Oil exploration and production companies are cutting budgets as they try to adjust to the lower prices. Wells Fargo indicates that it “expects to see significant consolidation in the energy business during the next couple of years, with a significant loss of jobs in the industry as the operating environment tightens considerably.”

EXPANDING OPPORTUNITIES FOR NEW BUSINESS IN CONROE, TEXAS

Skilled labor and excellent schools Just north of Houston and The Woodlands Near Bush Intercontinental Airport & Port of Houston

Regional airport with U.S. Customs facility Two business parks with pad-ready sites Incentives to qualifed projects

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AREA DEVELOPMENT | 2016 Annual Directory 79 07/12/15 7:01 PM

Fortunately, the Southwest has a diverse mix of industries. These include aerospace, defense, biotechnology, life sciences, ICT, semiconductors, alternative energy, and chemical products. “The Phoenix and Tucson regions have experienced growth in financial services, defense, information technology, manufacturing, distribution, and shared services,” says Gigerich. Texas is seeing success in automotive, energy, financial services, manufacturing, distribution, customer service, and shared services. Arizona’s business climate and strategic location have made it an attractive location for growth opportunities in bioscience and

AEROSPACE HAS A SOLID PRESENCE THROUGHOUT THE SOUTHWEST, WHICH IS ALSO ATTRACTIVE TO CYBERSECURITY COMPANIES.

ARIZONA

TRADITIONAL INDUSTRIES: High-tech manufacturing (semiconductor and aerospace), software and information, financial industries EXPANDING INDUSTRIES: Renewable energy, high-technology

manufacturing, bio-industry (medical devices, research, pharma), environmental technology, optics, plastics and advanced composites, financial services

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; emerging technology and digital media

OKLAHOMA

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

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, cybersecurity

healthcare, aerospace and defense, cybersecurity, manufacturing, and IT. For example, in February 2015 Apple announced that it would build a $2 billion international command center in Mesa. The project will create about 500 construction jobs and 150 full-time Apple jobs when it becomes operational. Aerospace has a solid presence throughout the Southwest. In New Mexico, aerospace and defense has been one of the best-performing sectors. In July 2015, ARCA Space Corporation announced it would build a testing and manufacturing facility at the Las Cruces Airport, creating 100 high-paying jobs over three years, with an average annual salary of $52,000. The aerospace company,

ARIZONA Principal Manufacturing Industries (As % of Total Manufacturing Employment)

COMPUTER & ELECTRONIC PRODUCTS TRANSPORTATION EQUIPMENT FOOD & BEVERAGE FABRICATED METAL PRODUCTS CHEMICAL PRODUCTS OTHER MANUFACTURING INDUSTRIES

38.3% 21.0% 7.1% 6.1% 3.9% 23.6%

NEW MEXICO Principal Manufacturing Industries (As % of Total Manufacturing Employment)

COMPUTER & ELECTRONIC PRODUCTS 22.3% FOOD PROCESSING 19.7% FABRICATED METAL PRODUCTS 9.3% NONMETALLIC MINERAL PRODUCTS 6.3% TRANSPORTATION EQUIPMENT 4.6% OTHER MANUFACTURING 37.8% INDUSTRIES

OKLAHOMA Principal Manufacturing Industries (As % of Total Manufacturing Employment)

MACHINERY PRIMARY METAL & FABRICATED METAL PRODUCTS AEROSPACE/TRANSPORTATION MACHINERY FOOD PROCESSING PETROLEUM, CHEMICAL & NONMETALLIC MINERAL PRODUCTS PLASTICS & RUBBER PRODUCTS ELECTRICAL & ELECTRONIC PRODUCTS WOOD & PAPER PRODUCTS OTHER MANUFACTURING INDUSTRIES

23.3% 21.2% 11.5% 10.5% 9.0% 7.3% 5.3% 3.3% 8.6%

TEXAS Principal Manufacturing Industries (As % of Total Manufacturing Employment)

FABRICATED METAL PRODUCTS MACHINERY (EXCEPT ELECTRICAL) COMPUTER & ELECTRONIC PRODUCTS TRANSPORTATION EQUIPMENT FOOD PRODUCTS CHEMICAL & ALLIED PRODUCTS PLASTIC & RUBBER PRODUCTS NONMETALLIC MINERAL PRODUCTS OTHER MANUFACTURING INDUSTRIES

15.7% 11.7% 10.7% 10.1% 9.6% 9.0% 4.4% 4.2% 24.6%

REVIEW SPONSORED BY:

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ARIZONA — Basic Business Taxes

NEW MEXICO — Basic Business Taxes

Corporate Income Tax 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 the second lowest unemployment insurance taxes in the country, 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

Corporate Income Tax: A single sales factor apportionment formula is provided for manufacturers. For all other operations the corporate tax income has been reduced to 5.9 percent over the next four years as follows: 2015–2018, 4.8 percent for income less than $500,000; 2015–2016, 6.4 percent for income between $500,00 and $1 million; 2015, 6.9 percent, and 2016, 6.6 percent for income greater than $1 million; 2017, 6.2 percent for income greater than $500,000; 2018, 5.9 percent for income greater than $500,00 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: New Mexico has the lowest per capita property tax in the nation. 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: None

originally started in Romania, located its headquarters to Las Cruces in 2014.

Future Plans Arizona, New Mexico, Oklahoma, and Texas are looking forward to a prosperous 2016. In fiscal year 2015, 120 companies made commitments to establish relocation or expansion projects in Arizona, which will generate about 18,000 jobs and $1.51 billion in capital investment over a three-year period. Those projects are also expected to generate 22,335 induced and indirect jobs, for a total of 40,649 projected new jobs

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The Odessa-Midland combined MSA represents the largest between DFW and El Paso - Texas Department of State Health Services #2 Metropolitan Statistical Area in America for Best Job Growth - Forbes Magazine #1 for Economic Strength Top 20 Small Cities - Area Development

Odessa, Texas Now more than ever, Odessa is the right place in Texas for your business. With abundant energy, Odessa has the infrastructure, skilled workforce and environment to assure your company succeeds. International trade, distribution opportunities and the proximity to major markets make doing business in Odessa a breeze. Use your imagination and make Odessa home. A vibrant, energetic city in West Texas where the sky, literally, is the only limit.

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

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AREA0518.indd 1

over a three-year period. A third-party analysis indicates that these projects will generate more than $21.12 billion in economic impact for the state of Arizona over a five-year period. New Mexico will continue to support entrepreneurs and high-tech start-up companies — many of them commercializing R&D discoveries made in the state’s national research laboratories, world-renowned research universities, and more specialized R&D facilities. These young companies are creating good-paying jobs as they expand. Oklahoma will continue to invest in its high-growth sectors, including aerospace. For example, L-3 AMI recently expanded its facility in Broken Arrow that designs and produces a wide range of hardware products for use in simulators, training devices, and other applications. L-3 AMI duplicates any type of cockpit, workstation, or control console to a high level of fidelity and then delivers it to prime government contractors for final system integration. “The support that L-3 AMI has received from both local and state entities has been invaluable in assisting our Broken Arrow facility to grow its workforce and gain the resources needed to continue to expand our business,” says Leonard Genna, president of Link Simulation and Training for L-3. “We recognize that the state supports our expansion efforts and is a key reason why we have been able to maintain and grow a stable workforce.” And Texas plans to invest heavily in workforce development programs, higher education, and transportation infrastructure. Its positive business and quality-of-life attributes attract more in-migration than any other state. As a result, Texas continues to win big investment projects. For example, in May 2015 Kubota Tractor and Credit corporations announced plans to relocate their

09/12/15 9:12 PM

Odessa — the center for commerce in West Texas. • International Airport • Lucrative Local and State • High Quality Cultural Incentive Packages and Recreational Facilities • Mild Climate

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AREA DEVELOPMENT

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OKLAHOMA — Basic Business Taxes

TEXAS — 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

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 million are also exempt. HB 32, which takes effect Jan. 1, 2016, will permanently reduce the business franchise tax by 25 percent. Also, SB 1049 relates to an exemption from the franchise tax and certain filing fees for certain businesses owned by veterans during an initial period of operation in the state 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, data center, and R&D 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

corporate headquarters from California to Grapevine, Texas, at a capital investment of $51 million. A Texas Enterprise Fund grant offer of $3.8 million will help finance the move. “Our decision to relocate our corporate headquarters to a more central part of the U.S. was a major part of our future business strategy, but which state we would ultimately choose was not,” says Masato Yoshikawa, president and CEO of Kubota Tractor Corporation. “Texas ultimately helped make that decision easier. Its business-friendly climate, state incentives, and geographical location were important factors in our final decision.” And in December 2015, Bostik, a leading global adhesive specialist for construction, consumer, and industrial manufacturing markets, opened its new manufacturing plant in Dallas.

The facility will produce ceramic tile adhesives and floor preparation products. According to company officials, the highly automated design of the facility will offer a positive impact on safety, quality, and productivity. In addition to production, the Dallas location also offers a state-of-the-art on-site training and demonstration facility. — Mark Crawford

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, SRP and Greater Phoenix 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 awardwinning 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.

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for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com 26/11/15 5:23 PM

Colorado

MOUnTAiN

Idaho Montana Nevada Utah Wyoming

GARNERING ACCOLADES FOR BUSINESS EXPANSION

THEIR ECONOMIES ARE FARING WELL, BUT THE MOUNTAIN STATES CONTINUE TO KEEP THEMSELVES BUSY BUILDING NEW INDUSTRIES AND SUPPORTING EXISTING EMPLOYERS.

There have been lots of headlines focused on one new Colorado industry the past few years — the legalized marijuana trade. But away from that spotlight, the state has been doing a lot of work to cultivate other industries, too. For example, its Advanced Industries Accelerator programs are entering their second grant cycle for fiscal year 2016. The programs were originally launched in 2013 to promote growth and sustainability across a number of advanced industries, including aerospace, advanced manufacturing, bioscience, electronics, energy and natural resources, infrastructure engineering, and technology and inSTATE POPULATION LABOR FORCE formation. Grants support pre-commercialization research and Colorado 5,355,866 2,804,659 commercialization preparation. For 2016, Colorado is also launching 14 new Enterprise Idaho 1,612,136 776,000 Zones. The idea is to encourage business development in disMontana 1,023,579 516,437 tressed areas, by offering companies state income tax credits Nevada 2,843,301 1,261,700 for doing such things as creating new jobs and investing in Utah 2,942,872 1,468,300 business property and job training. Wyoming 584,153 306,928 Utah’s business environment has been a headline-maker, but that’s not a new thing, really. Forbes recently called it the STATE RIGHT TO WORK No. 1 state for business, but it’s had that title five of the past six years. According to Forbes, Colorado Modified Utah has a business-friendly regulatory environment, and costs are competitive, especially Idaho Yes energy, which is 23 percent below the national average. Utah also topped the “pro-business” Montana No list from Pollina Corporate Real Estate. And the “Enterprising States: States Innovate” report prepared by Praxis Strategy Group for the U.S. Chamber of Commerce Foundation had Nevada Yes high praise for Utah. It ranked the state third overall in economic performance, and said it Utah Yes was “the most fundamentally sound state across all identified policy areas.” Wyoming Yes Idaho is a little more than a year into its new Tax Reimbursement Incentive program, and its impact is already exceeding expectations. In its first year the incentive was approved for 16 Colorado 37.0% business expansions promising 3,177 new jobs and $1.27 billion new payroll dollars. Idaho Governor Otter calls it a game-changer that is accelerating the state economy. Idaho 25.1% Montana may be known for spectacular scenery, but technology innovators there also get Montana 28.7% a good view of what can happen with the power of collaboration. Multiple initiatives target Nevada 22.4% sectors with a lot of promise, such as biosciences, optics, energy, and information technolUtah 30.3% ogy. The efforts to support innovation and innovators are paying off. For three years in a row Wyoming 24.7% the Kauffman Foundation has named Montana the top state for entrepreneurial activity. The *Bachelor's degree or higher, percent of persons most recent report counted 540 new entrepreneurs each month for every 100,000 adults, up age 25+, 2009–2013 Source: U.S. Census Bureau, ACS, revised Oct. 2015 from 490 the year before. AREA DEVELOPMENT | 2016 Annual Directory

COLORADO

TRADITIONAL & EXPANDING INDUSTRIES: Advanced manufacturing, aerospace, bioscience, creative industries, defense and homeland security, energy and natural resources, electronics, financial services, food and agriculture, health and wellness, infrastructure engineering, technology and information, tourism and outdoor recreation, transportation and logistics

IDAHO

TRADITIONAL INDUSTRIES: Agriculture and food processing, manufacturing, high-tech, wood products

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

MONTANA

NEVADA CONTINUES TO DRAW POWER FROM TESLA, THE MAKER OF ELECTRIC VEHICLES THAT CHOOSE THE STATE FOR ITS “GIGAFACTORY” BATTERY-MAKING FACILITY.

TRADITIONAL INDUSTRIES: Natural resources, agriculture, tourism,

manufacturing, energy

EXPANDING INDUSTRIES: Software, aerospace, value-added agricultural products, telecommunications, research and development, professional services, bioscience

Nevada wants to support advanced manufacturing and is reaching overseas to help make that happen. The state recently signed agreements with local and state governments in Germany that aim to enhance the high-skill workforce needed

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by advanced manufacturing operations. Nevada’s Governor Sandoval calls the partnerships a new chapter for advanced manufacturing in Nevada. The focus on workforce is vital and valuable, state leaders believe, and they point out that CNBC

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com 11/12/15 7:13 PM

NEVADA

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

UTAH

TRADITIONAL INDUSTRIES: Manufacturing, mining, government, agriculture

EXPANDING INDUSTRIES: Life sciences, software/IT, aerospace/

defense, financial services, energy, healthcare, outdoor products/ recreation, advanced composites

WYOMING

TRADITIONAL INDUSTRIES: Mining, tourism, transportation, agriculture EXPANDING INDUSTRIES: Renewable energy, natural resources and

mining, construction, wholesale trade, transportation, warehousing, utilities, data and information

COLORADO Principal Manufacturing Industries (As % of Total Manufacturing Employment)

FOOD MANUFACTURING COMPUTER AND ELECTRONICS PETROLEUM AND COAL PRODUCTS BEVERAGE & TOBACCO PRODUCTS MACHINERY MANUFACTURING CHEMICAL MANUFACTURING TRANSPORTATION EQUIPMENT FABRICATED METAL PRODUCTS OTHER MANUFACTURING INDUSTRIES

16.6% 13.2% 10.1% 9.9% 7.4% 7.4% 6.5% 5.6% 23.3%

IDAHO Principal Manufacturing Industries (As % of Total Manufacturing Employment)

FOOD PRODUCTS 28.6% COMPUTER & ELECTRONIC PRODUCTS 19.3% WOOD PRODUCTS 9.8% FABRICATED METAL PRODUCTS 9.6% TRANSPORTATION EQUIPMENT 5.2% MACHINERY 4.9% OTHER MANUFACTURING INDUSTRIES 22.6%

MONTANA Principal Manufacturing Industries (As % of Total Manufacturing Employment)

WOOD PRODUCTS & FURNITURE FOOD PRODUCTS FABRICATED METAL CHEMICALS, PETROLEUM & COAL MACHINERY, COMPUTERS & ELECTRONICS NONMETALLIC MINERAL & PRIMARY METALS OTHER MANUFACTURING INDUSTRIES

19.2% 13.0% 12.5% 9.2% 8.0% 7.2% 30.8%

recently hailed Nevada’s workforce as a major draw for economic success. Wyoming also is aiming to diversify its manufacturing base. Manufacturing pumps about $2.3 billion into the state economy, nearly half of which is tied to petroleum and coal, so there are state efforts to draw and boost firms involved in other types of manufacturing. Things are looking up, as manufacturing employment is nearly 14 percent higher than it was back in 2010.

Positive Headlines When it comes to positive headlines, Nevada continues to draw power from Tesla, the maker of electric vehicles that chose the state for its “Gigafactory” battery-making facility. It’s still under construction and won’t be producing until 2017, but the company already tripled land acquisition at the site. Utah’s collection of rankings and accolades has made plenty of headlines,

but so have the expansion projects that have inspired such accolades. For example, Boeing recently completed an expansion project that’ll allow the company to make a horizontal stabilizer for the 787-9 Dreamliner. Boeing Salt Lake has more than 760 people on the job at three locations. And the state’s outdoor products sector got recent boosts from Selle Royal group, which announced plans to open a bike components facility, and Cabela’s, which opened a giant new distribution center in Utah. Financial services companies are making solid investments in Colorado, Governor Hickenlooper’s office reports. Among the latest is Fidelity Investments, which initially built a regional center in Greenwood Village in 2013, hiring more than 500 people. That center is now expanding, with another 300 hires on the way. Among the industries on the move in Idaho is food processing. This year state officials put the spotlight on a number of wins, NEVADA including a new GoGo Principal Manufacturing Industries (As % of Total Manufacturing Employment) squeeZ plant from French parent company Materne FOOD 13.6% that turns out applesauce 13.5% FABRICATED METAL PRODUCTS and other fruit products PRINTING AND RELATED SUPPORT ACTIVITIES 8.2% and expects to have more COMPUTER AND ELECTRONIC than 250 on the payroll PRODUCTS 6.8% NONMETALLIC MINERAL PRODUCTS 6.6% by the time it’s up to full 6.4% PLASTICS & RUBBER PRODUCTS capacity in 2017. MeanTRANSPORTATION EQUIPMENT 3.3% while, a plant in Burley OTHER MANUFACTURING INDUSTRIES 41.6% is gearing up to produce containers made from alternative materials, UTAH Principal Manufacturing Industries such as wheat and soy (As % of Total Manufacturing Employment) straw, as opposed to peCOMPUTERS & ELECTRONIC PARTS 12.4% troleum. Fabri-Kal makes ATHLETIC GOODS & MISC. MFG. 7.8% containers for fast-food MEDICAL EQPT. & SUPPLIES 7.7% restaurants as well as the AEROSPACE PRODUCTS & PARTS 5.9% Chobani yogurt cup. The ARCHITECTURAL & STRUCTURAL METALS 4.7% first phase of that plant PHARMACEUTICALS & MEDICINE 4.6% could employ about 50. OTHER MANUFACTURING INDUSTRIES 56.9% Among the latest positive headlines from Wyoming is the plan to WYOMING move China-based tungPrincipal Manufacturing Industries (As % of Total Manufacturing Employment) sten components production to Laramie. Tungsten CHEMICAL PRODUCTS 18.2% FABRICATED METAL PRODUCTS 16.0% Heavy Powder & Parts is PETROLEUM & COAL PRODUCTS 13.8% the company involved, NONMETALLIC MINERAL PRODUCTS 8.4% and its Wyoming plant is FOOD 7.7% to make tungsten fragMACHINERY 7.1% ments and penetrators for 5.4% WOOD PRODUCTS BEVERAGE & TOBACCO PRODUCTS 3.5% military uses. PRINTING & RELATED ACTIVITIES 3.0% The positive economic COMPUTER & ELECTRONIC PRODUCTS 2.9% picture in the Mountain ELECTRICAL EQUIPMENT States translates into & APPLIANCES 2.8% OTHER MANUFACTURING a healthy employment INDUSTRIES 11.2% situation overall. The latest jobless rates from the federal government show the AREA DEVELOPMENT | 2016 Annual Directory

COLORADO — Basic Business Taxes

MONTANA — 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)

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

IDAHO — Basic Business Taxes Corporate Income Tax: 7.4 percent of taxable income with a $20 minimum Corporate Organization and Qualification Fees: $100 for articles of incorporation or certificate of authority Sales and Use Tax: (As of October 1, 2009) 6 percent of retail sales price of taxable property; use tax of 6 percent on value of property if not taxed at the point of sale Property Tax: No state property tax. However, counties and municipal jurisdictions have varying property tax rates; real property is assessed at 100 percent of market value; rates vary among county and municipal jurisdictions; 2012 average of approximately 1.339 percent

NEVADA — Basic Business Taxes Corporate Income Tax: None Business License Fee: $200 annually Gross Payroll Tax: 0-1.475 percent with deductibility of employer-paid health insurance premiums; financial institutions are taxed at 2 percent; As of July 1, 2015 the quarterly sum of all taxable wages over $50,000, minus healthcare deductions, times 1.475 percent. If an employer has less than $50,000 of taxable wages in the quarter, it still must file a return with $0 balance due Sales and Use Tax: 6.85 percent on retail sales plus local add-ons Property Tax: Levied at 35 percent of the property's full cash value

UTAH — Basic Business Taxes 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)

The Well-Rounded Life You can have one here, where high-tech manufacturing meets world-class recreation. Having it all...that’s how we roll.

WYOMING — Basic Business Taxes Corporate Tax: No state income tax; no inventory tax; no franchise tax; no gross sales tax Sales and Use Tax: 4 percent statewide retail sales tax; an additional 3 percent may be added on the local level Property Tax: 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

Pocatello, Idaho Your Gateway to Opportunity This really is a photo from Pocatello!

www.BannockDevelopment.org

nation as a whole in a decent place, but most of the Mountain region is in even better shape. Colorado’s unemployment rate as of September 2015 was 4.0 percent, and the rates were 4.2 percent in Idaho, 4.1 percent in Montana, 3.6 percent in Utah, and 4.0 percent in Wyoming. Only Nevada lagged behind, with a 6.7 percent jobless rate. — Steve Stackhouse-Kaelble

ISU Research and Business Park • 1651 Alvin Ricken Drive, Pocatello, ID 83201

Phone: (208) 233-3500 • Fax: (208) 2330268

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PACiFiC

Alaska California Hawaii Oregon Washington

TAX AND OTHER INCENTIVES HELP JOB-CREATION NUMBERS

IN RESPONSE TO THEIR SPECIFIC NEEDS, THE PACIFIC STATES HAVE INSTITUTED VARIED BUSINESS-SUPPORT TOOLS THAT ENHANCE THEIR COMPETITIVENESS.

Every state strives to earn the reputation of being “business-friendly,” through lower taxes, larger incentives, or less burdensome regulatory processes. The Pacific States have followed a variety of paths as they pursue that goal. California took a cue from the business community itself, sending more than two dozen state officials off to Lean 6 Sigma training, with the goal of making government and the permitting process more efficient. The state followed up with the launch of an online business portal sporting a set of tools to ease the process of doing business. Among Oregon’s latest ideas for helping businesses grow is its Small Business Expansion Program, a finance program targeting companies falling between an angel investment situation and more traditional financing. Recipients pay the funding back through a formula that takes sales into account. “By connecting small companies with the resources they need to thrive, Oregon is seeding job growth while supporting busiSTATE POPULATION LABOR FORCE nesses that might otherwise not have access to these kinds Alaska 736,732 366,300 of tools,” Gov. Kate Brown said in announcing the program California 37,690,000 18,668,100 in October. Hawaii 1,419,561 673,800 Oregon and Washington, meanwhile, are working to modOregon 3,930,065 1,972,660 ernize manufacturing, and together have received a federal Washington 7,061,400 3,526,300 designation under the Investing in Manufacturing Communities Partnership initiative. The two states created the Pacific Northwest Manufacturing Partnership to focus on, among other things, wood products. STATE RIGHT TO WORK Alaska No Business-Support Tools California No Business support tools vary significantly from one state to the next, and typically reflect Hawaii No state-specific needs and situations. Hawaii, for example, wanted to boost its film industry and Oregon No launched a public-private partnership to create new, more sophisticated broadband connecWashington No tivity. The move helps the state’s on-location production crews deliver their work to mainland Alaska California Hawaii Oregon Washington

27.5% 30.7% 30.1% 29.7% 31.9%

*Bachelor's degree or higher, percent of persons age 25+, 2009–2013 Source: U.S. Census Bureau, ACS, revised Oct. 2015

AREA DEVELOPMENT

studios more efficiently. And though the project initially targets film businesses, the state intends to make the technology available to others in the future. The state of Washington responded to the call for business-friendliness by reorganizing its economic development efforts over the past couple of years into the Office of Economic Development and Competitiveness — different approach, but similar aim: make the state more prosperous and competitive, particularly in such targeted sectors as aerospace, clean technologies, life sciences, maritime and military/defense. Among other initiatives, Alaska has joined other states in the pursuit of the unmanned aircraft systems business. The state’s strategy plays up Alaska’s wide-open spaces that are ideal for testing drones — it has multiple test ranges designated and has been exploring what for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

kinds of incentives would be most effective in helping grow the industry. Such programs are, of course, just the tip of the iceberg among economic development efforts. As the economy continues to recover, all of the Pacific States are finding reasons to be optimistic that their business-friendly efforts are paying off.

Success Stories California has a massive economy, so state officials tend to report their successes in the aggregate. Its most recent headline touted the 7,164 jobs created through $43.7 million in California Competes tax credits split among 89 growing companies. The California Competes Tax

JOBLESS RATES ACROSS THE PACIFIC STATES ARE ON THE WHOLE JUST A LITTLE HIGHER THAN THE NATIONAL AVERAGE.

CALIFORNIA Principal Manufacturing Industries (As % of Total Manufacturing Employment)

COMPUTERS & ELECTRONIC PRODUCTS 21.1% FOOD 12.6% FABRICATED METAL PRODUCTS 9.4% TRANSPORTATION EQUIPMENT 8.7% CHEMICALS 5.9% MACHINERY 5.4% 4.9% APPAREL PRINTING & RELATED SUPPORT ACTIVITIES 3.6% FURNITURE & RELATED PRODUCTS 2.7% NONMETALLIC MINERAL PRODUCTS 2.4% OTHER MANUFACTURING INDUSTRIES 23.3%

OREGON Principal Manufacturing Industries (As % of Total Manufacturing Employment)

ALASKA

TRADITIONAL INDUSTRIES: Oil and gas, mining, tourism, fishing, forest products

EXPANDING INDUSTRIES: Oil and gas, tourism, aerospace, seafood processing, mining, maritime industrial services

CALIFORNIA

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

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

OREGON

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

WASHINGTON

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

COMPUTERS & ELECTRONIC PRODUCTS FOOD WOOD PRODUCTS FABRICATED METAL PRODUCTS MACHINERY TRANSPORTATION EQPT. PRIMARY METALS PAPER OTHER MANUFACTURING INDUSTRIES

20.9% 14.8% 12.1% 8.9% 6.6% 6.2% 4.7% 2.7%

Credit was created by Gov. Brown and is focused on helping businesses grow 23.1% and stay in California. In keeping with the state’s high-tech reputation, WASHINGTON Principal Manufacturing Industries the list is peppered with (As % of Total Manufacturing Employment) technology companies, TRANSPORTATION EQUIPMENT 36.2% from such up-and-comers FOOD 12.6% as NerdWallet and Credit FABRICATED METAL PRODUCTS 6.7% Karma to established techMACHINERY 5.5% nology firms such as IBM WOOD PRODUCTS 4.7% NONMETALLIC MINERAL and Cerner. PRODUCTS 3.2% The recipient list also 2.2% CHEMICALS has its share of manufacOTHER MANUFACTURING INDUSTRIES 28.9% turers and biotech firms. The total investment sparked by California’s most recent awards is in excess of $600 million, according to the Governor’s Office of Business and Economic Development. Since 2014, $223 million has been awarded to 330 companies projected to create more than 42,000 jobs and $9.6 billion in investments. Washington continues to enjoy success as a major exporter, thanks in large part to its massive aerospace industry. The state recorded $48.8 billion in aviation exports last year, more than half of Washington’s overall exports. Some 95 percent of all commercial aircraft made in North America last year came from Washington. A major supplier to Boeing, Toray Composites America (TCA), recently completed its fifth production line at its plant in Frederickson, near Tacoma, Washington, representing a $100 million investment. Producing the carbon-fiber tape from which Boeing fabricates its composite structures on the 777 and 787, this additional line makes Frederickson’s TCA AREA DEVELOPMENT | 2016 Annual Directory

ALASKA — Basic Business Taxes

CALIFORNIA — 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 Biennial Report Taxes and Fees: Business corporation: domestic $100, foreign $200; limited liability companies/partnerships fee: domestic $100, foreign $200; cooperative corporation: domestic and foreign, $100 Sales and Use Tax: Alaska does not impose a statewide sales tax. Several boroughs and cities impose a bed tax, alcohol tax, and a sales tax of up to 7 percent on retail sales and certain locally provided personal services; neither Anchorage nor Fairbanks levies a general sales tax. There are no state sales, income, gross receipts, or inventory taxes Property Tax: Real and personal property is taxed by boroughs and cities; the tax is levied primarily on real estate, but some communities also tax personal property; property is required to be assessed at 100 percent of value, however, generally, property is assessed at between 90-96 percent valuation with tax rates ranging from 5 mills to 20.5 mills. Alaska levies a property tax on oil and gas properties

Corporate Income Tax: 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

facility the largest of its kind in the world. Hawaii’s economic recovery is picking up the pace, according to the Department of Business, Economic Development & Tourism. Growth is still far from the 5 to 6 percent rate that was typical during the last economic expansion, but state officials expect to come close to 2 percent for 2015 and higher in 2016. Jobless rates across the Pacific States are on the whole just a little higher than the national rate. The most recent numbers are from September 2015, when the rates were 6.4 percent in Alaska, 5.9 percent in California, 6.2 percent in Oregon, and 5.2 percent in Washington. The exception is Hawaii, which has been falling well below the national average unemployment, with a rate of 3.4 percent. — Steve Stackhouse - Kaelble

STRATEGICLOCATION & CONVENIENTACCESS Centrally located in southern California at the junction of SR-60 and I-215 with access to key markets Second largest City in Riverside County Lower commercial / industrial land and lease prices

PRO-BUSINESSPHILOSOPHY & ATTRACTIVEINCENTIVES Pro-business environment and concierge business service Fast track development services with unparalleled plan check turnaround time Electric rate discounts, Foreign Trade Zone designation, and Workforce Development incentives

MORENOVALLEYMARKET Home to Fortune 500 and International companies that include Amazon, Procter & Gamble, Skechers USA, Harbor Freight Tools, Aldi Foods, Deckers Outdoor, Philips Electronics, Harman Kardon, Serta Simmons Mattress, Walgreens, ResMed, Federal-Mogul, O’Reilly Automotive, Lowe’s, Ross Dress For Less, and Karma Automotive Approved World Logistics Center (WLC) – Largest industrial logistics business park in California history (40.6 million SF) Highly skilled and motivated workforce

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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) General Excise 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 2015 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; $8.10 per $1,000 valuation on land in Kauai County; and $6.83 per $1,000 valuation on land in Maui County; property assessed at 100 percent of fair market value; no tax on personal property

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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 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

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WASHINGTON — Basic Business Taxes Washington State has no corporate or personal tax on income 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 $12.25 per $1,000 of assessed value

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AREA DEVELOPMENT | 2016 Annual Directory

CANAda A SOLID FOUNDATION FOR ECONOMIC SUCCESS

FURTHER INVESTMENT IN JOB TRAINING, INNOVATION, AND INFRASTRUCTURE BY THE NEW GOVERNMENT IN OTTAWA WILL SERVE TO ENHANCE CANADA’S ECONOMIC STRENGTHS.

Canadians sent their federal government in a new direction this past fall, vaulting Justin Trudeau into the Prime Minister’s office. It may take some time for the dust to settle, but a look at his party’s platform offers some glimpse into what might be in store for businesses exploring Canadian locations. Among other things, the platform promises increased investment in job and skills training, much of it in provincial and territorial Labor Market Development Agreements, plus additional training funds for provinces and territories. The platform promises more investment to support clean technology producers and emerging cleantech manufacturing companies. It suggests a new Innovation Agenda supporting incubators and accelerators, plus more funding for the Industrial Research Assistance Program. And it proposes significant increases in infrastructure funding. Whatever changes may come, Canada builds upon a solid foundation for business success and an economy that appears to be on the upswing once again. The first five months of 2015 revealed an economy contracting, but things turned around for three straight months after that, giving economists hope that sustainable growth has returned. According to the Conference Board of Canada, the mild recession was tied mostly to the energy sector, a big part of the Canadian economy that was hit by the crash in oil prices and a cutback in capital investment. “The recession is now behind us, and the economy is expected to post solid growth for the second half of 2015,” the Conference Board reported in late October 2015. Looking ahead to 2016, “we expect economic growth to accelerate to a more respectable 2.3 percent, driven by a pickup in exports and steady consumer spending.” The province of Alberta felt the brunt of the oil collapse particularly harshly. Its economy is strongly tied to petroleum products, which had helped create economic growth rates of 4 percent or more in years when the industry was healthier. Energy is big business in British Columbia, too, but its economy is insulated by its diversity. In any case, energy’s woes were painful for some parts of Canada and dinged the collective economic statistics. Nonetheless, the slowdown in the oil sector in British Columbia has the potential to benefit other sectors — a report toward the end of 2015 suggested the potential for more growth in the liquefied natural gas sector, which offers great potential for exports to Asia. The AltaCorp Capital report suggests that as many as four LNG terminals could be built on or near the West Coast of Canada, in some cases with the help of labor that the oil industry has idled. Turbocharged Auto & Aero Sectors Although Canadian energy industry news was mixed, economic activity in other areas appeared turbocharged. In particular, the automotive sector experienced a strong rebound. And good automotive news is a blessing for Ontario, which is as much an automotive hub as its U.S. neighbor, Michigan. Five major automakers assemble cars in Ontario, supported by hundreds of parts suppliers. The province hosts significant automotive research and development, too. Beyond automotive, Ontario has a diverse and healthy business scene, including significant manufacturing presence in life sciences, aerospace, and food and beverages. It also is an information technology leader, and has one of the most thriving financial services sectors in the world. Even as the world’s economic picture continued to be cloudy, Ontario was adding jobs — 29,200 in

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Industry is at a Crossroads. It’s called Woodstock, Ontario, Canada.

On highways 401 and 403, at the junction NE "@M@CH@M /@BHƥB @MC "@M@CH@M -@SHNM@K Q@HK RDQUHBD Ŕ @S SGD KNFHRSHB@K BQNRRQN@CR NE -NQSG America – Woodstock sees enough business to know how much – and how rapidly – our world is changing. At the intersections of industry and agriculture, productivity and sustainability, and the last economy and the next one, here’s a place that doesn’t just support how business is done today – here’s a place that also supports how business will be done tomorrow. 519-539-2382 x2115 information@cityofwoodstock.ca cometothecrossroads.com

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October 2015 alone, and more than half a million since 2009. Manufacturing sales were up more than a percent in the first eight months of 2015, compared to a year before, and retail sales jumped more than 4 percent. Thousands of jobs have been sparked by the province’s investment in public infrastructure, with a planned total of more than $130 billion over a decade and spread across everything from roads, bridges, and transit systems to schools and hospitals. The provincial government is finding a variety of creative ways to unlock that kind of infrastructure funding. For example, an initial public offering of shares in the Hydro One electricity transmission and distribution utility will generate about $2 billion for infrastructure spending. Creative investment thinking also can be found in neighboring Quebec, where the provincial government recently announced a deal with aircraft-maker Bombardier to help finance its CSeries narrow-body jet program. Bombardier has been exploring options to fund development expenses, and the deal has the Quebec government taking on half of the cost. Bombardier is a significant part of the province’s aerospace sector; Quebec makes up about half of the Canadian aerospace industry’s sales. Other prominent industries in Quebec include life sciences, including significant pharmaceutical R&D and manufacturing operations involving many of the industry’s biggest names. Quebec is active in ground transportation, food and agribusiness, and there’s also a healthy technology sector focused on such specialties as microelectronics, information technology, and multimedia.

Significant Technology Investments British Columbia also lays claim to significant technology operations. The province has plenty of success stories to share, such as Mojio Inc., which has created a platform connecting cars to the Internet. Its hardware plugs into a car’s diagnostic port and ties in with GPS and its built-in cellular technology to share volumes of information with the car’s owner. Earlier this year, the company received a healthy investment from a finance group. British Columbia’s digital media sector is often making news, such as the decision by Japanese game developer gumi Inc. to open an office in Burnaby, B.C. Green technology, meanwhile, drives at least 20,000 jobs in the Vancouver area, and that tally is expected to rise by about 50 percent in the next five years. The provincial government actively works to boost the tech sector in many ways, including pro-

moting international connections. For example, the province and Shanghai have trade agreements in place that include a 2015 action plan to facilitate commercial partnerships in the technology sector. In Manitoba, the Winnipeg economy often records growth rates exceeding the national average, and the Conference Board of Canada predicted an annual GDP growth rate of 2.6 percent in 2015. Growth has been at or greater than 2 percent for the past four years, in fact. Winnipeg claims to have the most diversified advanced manufacturing sector in western Canada; it’s a hotbed for digital media and entertainment, the life sciences are growing, and IT innovators thrive there.

Natural Resources’ Role The resources of Saskatchewan and Alberta are major economic contributors to the Canadian economy. Alberta’s biggest resource is energy — $76 billion of its $121 billion in exports came from crude petroleum, according to the provincial government, and $14 billion came from gas and gas liquids. But the province also has more than 50 million acres of farmland, plus a whole lot of land devoted to forestry. Its agricultural output made up nearly a quarter of the nation’s ag activity, and meat production leads the way in Alberta’s value-added agricultural products sector. Saskatchewan, meanwhile, is known as the “Bread Basket of Canada,” because it works more than 40 percent of Canada’s farmland, grows half of the country’s wheat, and also has strong livestock and ag support sectors. But it’s also a global leader in potash and uranium exports, and produces a fair amount of oil. Both provinces maintain a strong focus on diversification. Both work hard to promote the manufacturing sector and invest in the tech sectors, through such initiatives as Alberta Innovates and the Saskatchewan Opportunities Corp. As just one example, the University of Alberta houses the National Institute for Nanotechnology, which has set its sights on becoming one of the world’s top five nanotechnology centers. Natural resources also play a strong role in Canada’s Atlantic Provinces of Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island. Oil, forestry products, and food drive the economies there. Resources also are the big features of the economies of Canada’s territories, including the Northwest Territories, Yukon, and Nunavut. These vast lands produce gold, diamonds, oil, and natural gas, while their natural beauty is a draw for tourism. — Steve Stackhouse - Kaelble

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MEXiCO MEXICO’S ECONOMY IS SETTING PRODUCTION RECORDS

MEXICO IS EXPERIENCING STRONG ECONOMIC GROWTH ACROSS A RANGE OF INDUSTRIAL SECTORS, WHICH SHOULD BE BUOYED BY FURTHER GOVERNMENT INVESTMENT IN EDUCATION AND INFRASTRUCTURE.

Mexico has long been one of the strongest trading partners with the U.S. and a preferred “nearshore” location for U.S. manufacturing operations. Manufacturing is at the core of the Mexican economy and represents a wide range of industries. Manufacturing investments are stimulating the economy, creating jobs, and making Mexico a top FDI location in Latin America. “Mexico has significant momentum right now in the area of manufacturing,” says Larry Gigerich, managing director for Ginovus, a site location firm in Indianapolis, Indiana. “Many global companies view Mexico as a favorable manufacturing and distribution location due to its lower costs, good incentive programs, and proximity to one of the largest economies in the world — the United States.” According to many experts, Mexico’s economic growth for 2015 is expected to be in the 2.5–2.9 percent range — very strong compared to the rest of Latin America, which is averaging about 0.5 percent. In June 2015, year-over-year business investment had increased by 8.6 percent. Mexico is expected to do even better in 2016 — a growth rate of about 3.2 to 3.5 percent.

Growth Across Industrial Sectors “Mexico is the seventh-largest vehicle manufacturer in the world and the sixth-biggest manufacturer of auto parts, with an estimated $81.5 billion in sales in 2014,” according to Doug Donahue, vice president of Business Development with Entrada Group, which helps manufacturers set up operations in Mexico. “Manufacturing also received the most FDI in 2014 — about $13 billion,” Donahue says. Foreign investment in factories in Mexico is on the rise, even for industries that have been China-bound in the past. At the top of that list are global automakers that are investing heavily in new assembly plants. Companies that have made recent announcements include Nissan, General Motors, Ford, and Fiat Chrysler. “In March VW indicated it would spend $1 billion expanding a Mexican plant to build a small SUV for the U.S. and some foreign markets,” says John Boyd, principal with The Boyd Company, a location consulting firm based in Princeton, New Jersey. “In Hermosillo, Ford Motor Corp. is doubling production and hiring 1,000 workers to build its new Fusion model. Combined, automakers and parts suppliers have earmarked more than $20 billion of new investments,” Boyd says. Rising labor cost in China and overly extended and risky supply chains to Asia are helping make Mexico the preferred nearshore location for many Boyd clients in other manufacturing sectors, such as medical devices, plastics, and food processing. Donahue agrees: “Even though automotive and aerospace are among the high-profile manufacturing industries of Mexico, we are seeing growth among our entire customer base, including electronics, consumer goods, and heavy transport, along with automotive and aerospace OEMs and Tier 1s,” he adds. “This growth is not only driven by the attractive Mexican manufacturing market as compared to the rest of the world, but also Mexico’s internal market growth.” Mexico’s many free trade agreements are also factors helping it to attract new industrial investment.

A Productive Workforce Mexico’s unemployment rate is about 4.3 percent — a reflection of reforms that were implemented by President Enrique Peña Nieto in 2012, including an improved minimum wage, women’s worker rights, and better labor union accountability. Some of his

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business-related reforms — for example, allowing foreign development of energy reserves and breaking up corporate monopolies — have also encouraged business investment. “Regarding job performance, once Mexican employees have been brought on and trained, we have seen them to be highly dedicated and productive employees and, in many cases, more productive than their U.S. or Canadian counterparts,” says Donohue. In the past, he notes, the major reason manufacturers set up operations in Mexico was to take advantage of lower labor costs. “Now, however, more training is required as suppliers are requiring higher competencies and skill sets. This is causing wage pressures and retention concerns, as more and more suppliers are coming into Mexico, and they all are competing for the same labor.”

RISING CHINESE LABOR COSTS AND OVERLY EXTENDED AND RISKY SUPPLY CHAINS TO ASIA ARE MAKING MEXICO THE PREFERRED NEARSHORE LOCATION.

Investing in the Future To maintain its economic momentum, Mexico plans to invest more than $100 billion through 2018 to improve its transportation infrastructure. “Mexico realizes that, in order to attract international OEMs, Tier 1s, and their suppliers, it must establish a solid transportation infrastructure throughout the country,” Donohue says. To keep up with the hiring needs of its manufacturers,

LOCATION.

the Mexican government is also investing heavily in further education and training of its workforce, creating more specialized programs with input from the commercial sector. Increasing funding, however, for such government education programs remains a challenge and may have to be gained through tax increases. A bright spot is the emergence of Mexico City as a global financial center. Mexico City currently houses the headquarters of the country’s largest banks, insurers, and many international financial service companies for Latin America. “Citigroup in Mexico City reportedly produces almost three times as much revenue than all 16 Citigroup branches in the rest of Latin America,” says Boyd. “Banco Santander Mexico’s $4.13 billion public stock offering in 2012 was Mexico’s largest ever in the financial sector, a strong sign of the revival of the nation’s financial services sector. After many years of economic missteps, these and other successes show Mexico is emerging as Latin America’s most promising relocation and investment market,” Boyd concludes. — Mark Crawford

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LOCATION. The best LOCATION on the web to help with your corporate LOCATION needs. The best LOCATION to start your site and facility search. The best LOCATION to stay on top of industry news. The best LOCATION for the freshest and most relevant industry produced studies and research papers.

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Select Sites

StatE-ContActS & SELECt SItES

Michelle Bisbing, Director of Marketing Pocono Mountains Economic Development Corporation (PMEDC) 300 Community Drive, Suite D Pocono Mountains Corporate Center East Tobyhanna, PA 18466 570-839-1992 • Toll Free: 877-736-7700 www.PMEDC.com MBisbing@pmedc.com Info@pmedc.com

MIDWEST Illinois

Jim Schultz, Director Illinois Department of Commerce & Economic Opportunity James R. Thompson Center 100 W. Randolph Chicago, IL 60601 312-814-2811

NEW ENGLAND

MID-ATLANTIC

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

Bernice Whaley, Cabinet Secretary Delaware Economic Development Office 99 Kings Highway Dover, DE 19901 302-739-4271

Connecticut

Connecticut Economic Resource Center, Inc. 1-800-392-2122

Maine

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

Massachusetts

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

New Hampshire

Michael Bergeron, Senior Business Development Manager, Department of Resources and Economic Development New Hampshire Business Resource Center 172 Pembroke Road Concord, NH 03302 603-271-2591 • Cell: 603-419-91633 Fax: 603-271-6784 Select Sites Karen Pollard, Economic Development Manager City of Rochester, New Hampshire 31 Wakefield Street Rochester, NH 03867 603-335-7522 • Fax: 603-335-7597 www.THINKROCHESTER.biz Karen.Pollard@rochesternh.net

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

Joan Goldstein, Commissioner Vermont Department of Economic Development National Life Building 1 National Life Drive Montpelier, VT 05620-5001 802-272-2399

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Delaware

Maryland

R. Michael Gill, Secretary Maryland Department of Commerce World Trade Center Baltimore 401 E. Pratt Street Baltimore, MD 21202 410-767-6300 • 888-246-6736 Select Sites John Henry King, Economic Development Director City of Bowie 15901 Excalibur Road Bowie, MD 20716 301-809-3042 • Fax: 301-809-2315 www.cityofbowie.org jhking@cityofbowie.org

New Jersey

Michele Brown, President/CEO Choose New Jersey 200 Rockingham Row Princeton Forrestal Village Princeton, NJ 08540 609-292-2200 • Fax: 609-297-2201 Select Sites Sandra Forosisky, Director of Economic Development City of Vineland Economic Development 640 E. Wood Street Vineland, NJ 08360 856-794-4100 • Fax: 856-405-4607 www.vinelandbusiness.com sforosisky@vinelandcity.org

New York

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

Pennsylvania

Dennis M. Davin, Secretary Pennsylvania Department of Community & Economic Development Commonwealth Keystone Building 400 North Street Harrisburg, PA 17120-0225 717-720-1387 • Fax: 717-787-6866

Select Sites Michael S. Kearney, Director, Economic Development Ameren P.O. Box 66149, MC 350 St. Louis, MO 63166-6149 800-981-9409 www.ameren.com/ecdev mkearney@ameren.com Michael Mertes, Business Development Coordinator, Department of Planning & Community Development Village of Arlington Heights 33 S. Arlington Heights Road Arlington Heights, IL 60005 847-368-5220 • Fax: 847-368-5988 www.vah.com mmertes@vah.com Harold Gutzwiller, Manager Economic Development/Key Accounts Hoosier Energy P.O. Box 908 Bloomington, IN 47402 812-876-0294 www.HoosierSites.com Hgutzwiller@hepn.com

Indiana

Indiana Economic Development Corporation One North Capitol, Ste. 700 Indianapolis, IN 46204 800-463-8081 • 317-232-8800 • Fax: 317-232-4146 Select Sites Harold Gutzwiller, Manager Economic Development/Key Accounts Hoosier Energy P.O. Box 908 Bloomington, IN 47402 812-876-0294 www.HoosierSites.com Hgutzwiller@hepn.com Mark Wickersham, Executive Director Huntington County Economic Development Corporation 8 West Market Street Huntington, IN 46750 260-356-5688 • Fax: 260-358-5692 www.hcued.com mark@hcued.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

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

Michigan

Steve Arwood, CEO Michigan Economic Development Corp. 300 N. Washington Square Lansing, MI 48913 888-522-0103

Minnesota

Jeff Rossate, Executive Director, Office of Business 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

Steve Johnson, CEO The Missouri Partnership 120 South Central Avenue, Ste. 1535 Clayton, MO 63105 314-725-0949 • Fax: 314-725-0743 Select Sites Michael S. Kearney, Director, Economic Development Ameren P.O. Box 66149, MC 350 St. Louis, MO 63166-6149 800-981-9409 www.ameren.com/ecdev mkearney@ameren.com Tim Hamilton, Community Development Director City of Cameron 205 N. Main Street Cameron, MO 64429 816-632-2177 www.cameronmo.com timh@cameronmo.com Kevin Welch, Director Joplin Regional Partnership 320 East 4th Street Joplin, MO 64801 417-624-4150 www.joplinregionalpartnership.com kwelch@joplinregionalpartnership.com

Ohio

John Minor, President & Chief Investment Officer JobsOhio 41 S. High Street, 15th Floor Columbus, Ohio 43215 614-224-6446 Select Sites Dennis Mingyar, Director, Economic Development Buckeye Power, Inc. 6677 Busch Blvd. Columbus, OH 43229 800-282-6962 • Fax: 614-430-7108 www.buckeyepower.com/economicdevelopment dmingyar@buckeyepower.com Susan Crotty, CEcD, Manager, Industrial and Community Development City of St. Marys Development Office 101 E. Spring Street St. Marys, OH 45885 419-300-3117 • Fax: 419-394-2452 www.stmarysdevelops.com scrotty@cityofstmarys.net JobsOhio 41 S. High Street, Suite 1500 Columbus, Ohio 43215 614-300-1151 jobs-ohio.com contact@jobs-ohio.com

Wisconsin

Wisconsin Economic Development Corp. 201 W. Washington Ave. P.O. Box 7970 Madison, WI 53703-7970 608-210-6700 • 855-INWIBIZ

Arkansas

Select Sites

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

Paul Jadin, President Madison Region Economic Partnership 455 Science Drive, Ste. 160 Madison, WI 53711 608-571-0420 www.madisonregion.org pjadin@madisonregion.org

Kentucky

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

PLAINS Kansas

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

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

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

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

Steve Kelly, Deputy Secretary Kansas Department of Commerce 1000 SW Jackson Street, Suite 100 Topeka, KS 66612-1354 785-296-5298 www.kansascommerce.com skelly@kansascommerce.com

Nebraksa

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 econdev@nppd.com

North Dakota

Al Anderson, Commissioner Paul J. Lucy, Director North Dakota Department of Commerce Economic Development & Finance Division P.O. Box 2057 Bismarck, ND 58502-2057 701-328-5300

South Dakota

J. Pat Costello, Commissioner Governor’s Office of Economic Development 711 E. Wells Avenue Pierre, SD 57501-3369 800-872-6190 • 605-773-3301

SOUTH Alabama

Greg Canfield, Secretary Alabama Department of Commerce 401 Adams Avenue, 6th Floor Montgomery, AL 36130 334-242-0400 • Fax: 800-242-5669 Select Sites Lori Huguley, Director Opelika Economic Development 204 Seventh Street South P.O. Box 390 Opelika, AL 36803-0390 334-705-5115 • Fax: 334-705-5113 www.opelikaeconomicdevelopment.org lhuguley@opelika-al.gov

Louisiana

Steven Grissom, Secretary Louisiana Economic Development 1051 North Third Street Baton Rouge, LA 70802-5239 225-342-3000 • 800-450-8115 • Fax: 225-342-9095

Mississippi

Becky Thompson, Interim Director, Global Business Division Mississippi Development Authority P.O. Box 849 501 N. West Street Jackson, MS 39205 601-359-3155 Select Sites Becky Thompson, Interim Director, Global Business Division Mississippi Development Authority P.O. Box 849 501 N. West Street Jackson, MS 39205 601-359-3855 • 800-360-3323 • Fax: 601-359-2832 www.mississippi.org bthompson@mississippi.org

Tennessee

Randy Boyd, Commissioner Tennessee Department of Economic and Community Development Tennessee Tower, 27th Fl. 312 Rosa L. Parks Avenue Nashville, TN 37243 615-741-8915 Select Sites Lindsay Hiatt, Project Manager Chattanooga Area Chamber of Commerce 811 Broad Street Chattanooga, TN 37402 423-756-2121 www.chattanoogacando.com lhiatt@chattanoogachamber.com

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Cliff Hawks, President and CEO Cherokee Farm 2450 E. J. Chapman Drive Knoxville, TN 37996 865-974-8210 • Fax: 865-974-8301 CherokeeFarm.org chawks@cherokeefarm.org Allen Hester, CEcD, CCE – President/CEO Dyersburg/Dyer County Chamber of Commerce 2000 Commerce Avenue Dyersburg, TN 38024 731-285-3433 • Fax: 731-286-4926 www.dyerchamber.com ahester@dyerchamber.com

Select Sites

Joseph Beasley, Economic Development Coordinator City of Concord 66 Union Street South Concord, NC 28026-0308 704-920-5128 • Fax: 704-920-6962 www.concordnc.gov beasleyj@concordnc.gov

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

SOUTH ATLANTIC

Brenda Daniels, Manager, Economic Development ElectriCities of North Carolina, Inc. 1427 Meadow Wood Blvd. P.O. Box 29513 Raleigh, NC 29513 919-760-6363 • Fax: 919-760-6060 www.electricities.com bdaniels@electricities.org

Bill Johnson, Secretary of Commerce, President/CEO Enterprise Florida, Inc. 800 North Magnolia Avenue, Suite 1100 Orlando, FL 32803 407-956-5600

Robert E. Leak, Jr., President Winston-Salem Business Inc. 108 W. Fourth Street Winston-Salem, NC 336-723-8955 • Fax: 336-761-1069 www.wsbusinessinc.com rleak@wsbusinessinc.com

Select Sites

South Carolina

Florida

Dana Brunett, Economic Development Manager City of Cape Coral, FL 1015 Cultural Park Blvd. Cape Coral, FL 33990 239-574-0444 www.bizcapecoral.com dbrunett@capecoral.net Bill Martin, Executive Director Greater Osceola Partnership for Economic Prosperity 3 Courthouse Square, 2nd Floor Kissimmee, FL 34741 407-742-4251 www.greaterosceola.com bmartin@greaterosceola.com

Georgia

Chris Carr, Commissioner Georgia Department of Economic Development 75 Fifth Street NW, Suite 1200 Atlanta, Georgia 30308 404-962-4000 Select Sites StacyWatson, General Manager Economic & Industrial Developmenet Georgia Ports Authority P.O. Box 2406 Savannah, GA 31402 912-964-3880 Fax: 912-964-3869 www.gaports.com swatson@gaports.com Kevin Johnson, VP, Economic Development Invest Atlanta 133 Peachtree Street, NE, Ste. 2900 Atlanta, GA 30300 404-614-8296 www.investatlanta.com kjohnson@investatlanta.com

North Carolina

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

Jennifer Noel, Deuty Secretary South Carolina Department of Commerce 1201 Main Street, Suite 1600 Columbia, SC 29201 800-868-7232 • 803-737-0400 • Fax: 803-737-0894

Virginia

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

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

SOUTHWEST Arizona

Sandra Watson, President & CEO Arizona Commerce Authority 333 N. Central Avenue, Suite 1900 Phoenix, AZ 85004 602-845-1200 • 800-542-5684 • Fax: 602-845-1201 Select Sites Ak-Chin Indian Community Industrial Park Board 42507 W. Peters & Nall Road Maricopa, AZ 85138 520-568-3246 www.leaseakchin.com leasing@leaseakchin.com marketing@leaseakchin.com Caryn Sanchez and Karla Moran, Senior Project Managers, Economic Development Salt River Project 602-236-2192 or 602-236-2396 www.PowerToGrowPHX.com Caryn.Sanchez@srpnet.com Karla.Moran@srpnet.com

New Mexico

New Mexico Partnership 1720 Louisiana Blvd NE, Suite 312 Albuquerque, NM 87110 505-247-8500 • Fax: 505-338-1117

Oklahoma

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

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AREA DEVELOPMENT

Texas

Bryan Daniel, Executive Director, Economic Development & Tourism Texas Office of the Governor P. O. Box 12428 Austin, TX 78711-2728 512-936-0100 • Fax: 512-936-0303 Select Sites Jennifer May, Director of Economic Development City of Sugar Land Office of Economic Development 2700 Town Center Blvd. North Sugar Land, TX 77479 281-275-2229 • Fax: 281-275-2217 www.sugarlandecodev.com jmay@sugarlandtx.gov ecodev@sugarlandtx.gov Kate Silvas, Executive Director Converse Economic Development Corporation 403 South Seguin Converse, TX 78109 210-659-9163 • Fax: 210-659-0964 www.ConverseEDC.com ksilvas@converseedc.com Fred Welch, Executive Director Danielle Scheiner, Deputy Director Greater Conroe Economic Development Council 505 W Davis Street Conroe, TX 77301 936-522-3014 • Fax: 936-756-6162 www.gcedc.org welch@gcedc.org scheiner@gcedc.org Carolyn Rowley, Director of Business Recruitment & Innovation Lubbock Economic Development Alliance 1500 Broadway, 6th Floor Lubbock, TX 79401 806-749-4500 • 800-687-5330 • Fax: 806-749-4501 www.lubbockeda.org Carolyn.rowley@lubbockeda.org Scott G. Jones, Director of Economic Development Odessa Development Corporation 700 N. Grant, Suite 200 Odessa, TX 79761 877-363-772 or 432-333-7880 • Fax: 432-333-7858 http://odessatex.com/ info@odessaecodev.com Kelly Violette, Executive Director Tomball Economic Development Corporation 29201 Quinn Road, Suite B Tomball, TX 77375 888-401-7322 • Fax: 281-351-7223 www.tomballtxedc.org kviolette@tomballtxedc.org

MOUNTAIN Colorado

Fiona Arnold, Executive Director Colorado Office of Economic Development & International Trade 1625 Broadway, Suite 2700 Denver, CO 80202 303-892-3840 • Fax: 303-892-3848

Idaho

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

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

Select Sites John Regetz, Executive Director Bannock Development Corporation 1651 Alvin Ricken Drive Pocatello, ID 83201 208-233-3500 • Fax: 208-282-5960 www.bannockdevelopment.org john@bannockdevelopment.org

Montana

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 808 West Nye Lane Carson City, NV 89703 800-336-1600 • 775-687-9900 • Fax: 775-687-9925

Oregon

Nunavut

Jill Miles, Business Development Business Oregon 775 Summer Street N.E., Ste. 200 Salem, OR 97301-1280 503-986-0110 • Fax: 503-945-8736

Honourable Monica Ell-Kanayuk, 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

Washington

Business Services Division Washington State Department of Commerce 2001 6th Avenue, Suite 2600 Seattle, WA 98121 206-256-6100 Select Sites Mike Schiller, Director of Business Development Port of Vancouver USA 3103 NW Lower River Road Vancouver, WA 98660 360-693-3611 • Fax: 360-735-1565 www.portvanusa.com mschiller@portvanusa.com

Utah

CANADA

Select Sites

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

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

Alberta

Theresa Foxley, Managing Director, Corporate Recruitment Utah Governor’s Office of Economic Development 60 E. South Temple, 3rd Fl. Salt Lake City, UT 84111 801-538-8850 www.Business.Utah.gov BusinessUtah@utah.gov

British Columbia

Wyoming

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

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

Britteny Cioni-Haywood, 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 Select Sites Jackie Melendez, Management Analyst, Economic Development City of Moreno Valley 14177 Frederick Street Moreno Valley, CA 92553 951-413-3454 www.moval.org jackiem@moval.org

Hawaii

Department of Business, Economic Development and Tourism No. 1 Capitol District Building 250 S. Hotel Street, 5th Floor P.O. Box 2359 Honolulu, HI 96804 808-586-2355 • Fax: 808-586-2377

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

New Brunswick

Stephen Lund, CEO Opportunities NB HSBC Place P.O. Box 6000 Fredericton, NB E3B 5H1 506-453-5471 • Fax: 506-444-4277

Newfoundland and Labrador Honourable Darin King, Minister Newfoundland and Labrador Department of Business, Tourism, Culture and Rural Development P.O. Box 8700 Confederation Building St. John’s, NL A1B 4J6 709-729-4728 • Fax: 709-729-0654

Nova Scotia

John Ludovice, Managing Director, Investment Attraction Nova Scotia Business Inc. World Trade & Convention Centre 1800 Argyle Street, Suite 701 Halifax, Nova Scotia B3J 3N8 902-424-7631 • Fax: 902-424-5739

Northwest Territories

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

Ontario

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 Nancy Johnston, Manager, Business Development and Marketing Brampton Economic Development Office 2 Wellington Street West Brampton, ON L6Y 4R2 905-874-2654 www.Peoplepoweredeconomy.ca edo@brampton.ca Len Magyar, Development Commissioner City of Woodstock Economic Development Department 500 Dundas Street P. O. Box 1539 Woodstock, ON N4S 0A7 519-539-2382 x 2112 • Fax: 519-539-3275 www.cometothecrossroads.com lmagyar@cityofwoodstock.ca

Prince Edward Island

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

Quebec

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

Saskatchewan

Bill Spring, Director, Investment and Industry Development Government of Saskatchewan 1000, 2103 11th Avenue Regina SK S4P 3Z8 306-787-0917 • Fax: 306-787-7559

Yukon Territory

Honourable Stacey Hassard, Minister of Economic Development Yukon Territory 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 | 2016 Annual Directory

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ADINDEXWEBDIRECTORY Advertiser

Page

ALABAMA

Opelika Economic Development www.opelikaeconomicdevelopment.org lhuguley@opelika-al.gov

ARIZONA

Ak-Chin Indian Community www.leaseakchin.com leasing@leaseakchin.com marketing@leaseakchin.com

80, 81

Salt River Project www.powertogrowphx.com Caryn.Sanchez@srpnet.com Karla.Moran@srpnet.com

CALIFORNIA

City of Moreno Valley www.moval.org edteam@moval.org jackiem@moval.org

CONNECTICUT

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

Greater Osceloa Partnership www.chooseosceola.com www.greaterosceola.com bmartin@greaterosceola.com

Bannock Development Corporation www.bannockdevelopmentcorp.org john@bannockdevelopmentcorp.org

ILLINOIS

Ameren Services www.ameren.com/ecdev mkearney@ameren.com Hoosier Energy Economic Development www.hoosiersites.com Hgutzwiller@hepn.com Village of Arlington Heights www.vah.com mmertes@vah.com

INDIANA

Hoosier Energy Economic Development www.hoosiersites.com Hgutzwiller@hepn.com Huntington County Economic Development www.hcued.com mark@hcued.com

KANSAS

Kansas Department of Commerce www.kansascommerce.com skelly@kansascommerce.com

AREA DEVELOPMENT

68, 69

MISSISSIPPI

Mississippi Development Authority www.mississippi.org/workforce bthompson@mississippi.org

15, 17, 19

MISSOURI

City of Cameron www.cameronmo.com timh@cameronmo.com

58, 59

Joplin Regionional Partnership 56, 57 www.joplinregionalpartnership.com kwelch@joplinregionalpartnership.com Nebraska Public Power District www.econdev.nppd.com econdev@nppd.com

NEW HAMPSHIRE

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

NEW JERSEY

City of Vineland Department of Economic Development www.vinelandbusiness.com sforosisky@vinelandcity.org

NORTH CAROLINA

City of Concord www.concordnc.gov beasleyj@concordnc.gov

ElectriCities of North Carolina Inc. www.electricities.com bdaniels@electricities.org

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

OHIO

Page

TENNESSEE

Chattanooga Chamber of Commerce www.chattanoogacando.com lhiatt@chattanoogachamber.com Cherokee Farm Innovation Campus www.cherokeefarm.org chawks@cherokeefarm.org Dyersburg/Dyer County Chamber of Commerce www.dyerchamber.com ahester@dyerchamber.com City of Sugar Land www.sugarlandecodev.com jmay@sugarlandtx.gov ecodev@sugarlandtx.gov Converse Economic Development Corporation www.converseEDC.com ksilvas@converseedc.com Greater Conroe Economic Development Council www.gcedc.org welch@gcedc.org scheiner@gcedc.org Lubbock Economic Development Alliance www.lubbockeda.org Carolyn.rowley@lubbockeda.org Odessa Development Corporation www.odessatex.com info@odessaecodev.com Tomball Economic Development Corporation www.tomballtxedc.org kviolette@tomballtxedc.org

78, 79

UTAH

Utah Governorâ&#x20AC;&#x2122;s Office of Economic Development www.business.utah.gov BusinessUtah@utah.gov

WASHINGTON

Port of Vancouver USA www.portvanusa.com mschiller@portvanusa.com

WISCONSIN 61

City of St. Maryâ&#x20AC;&#x2122;s Development Office www.stmarysdevelops.com info@stmarysdevelops.com scrotty@cityofstmarys.net

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

OKLAHOMA

Pocono Mountains Economic Development www.pmedc.com MBisbing@pmedc.com Info@pmedc.com

TEXAS

NEBRASKA

Joplin Regionional Partnership 56, 57 www.joplinregionalpartnership.com kwelch@joplinregionalpartnership.com

104

Kentucky Cabinet for Economic Development www.kentuckyskillsnetwork.com www.ThinkKentucky.com Mandy.Lambert@ky.gov

Advertiser PENNSYLVANIA

Commerce Lexington Economic Development www.locateinlexington.com ggreathouse@commercelexington.com

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

Georgia Ports Authority www.gaports.com swatson@gaports.com

IDAHO

KENTUCKY

City of Bowie Economic Development www.cityofbowie.org jhking@cityofbowie.org

GEORGIA

Invest Atlanta www.investatlanta.com kjohnson@investatlanta.com

Page

MARYLAND

FLORIDA

City of Cape Coral Economic Development Office www.bizcapecoral.com econdev@capecoral.net dbrunett@capecoral.net

Advertiser

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

CANADA

Joplin Regionional Partnership 56, 57 www.joplinregionalpartnership.com kwelch@joplinregionalpartnership.com

ONTARIO

Brampton Economic Development www.peoplepoweredeconomy.ca edo@brampton.ca City of Woodstock www.cometothecrossroads.com lmagyar@cityofwoodstock.ca

96, 97

for free site information, call 800-735-2732, ext. 225, or visit us online at www.areadevelopment.com

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

600 ACRES OF

AVAILABLE PROPERTY. MILES OF WIDE OPEN POSSIBILITY.

58 50 492 ACRES READYTO-BUILD

ACRES READY-TODEVELOP

ACRES FUTURE DEVELOPMENT

SEE WHY YOUR BUSINESS SHOULD LAND AT THE PORT OF POSSIBILITY. CONTACT MIKE SCHILLER AT 360-693-3611 OR MSCHILLER@PORTVANUSA.COM, OR VISIT PORTVANUSA.COM.

The Port of Vancouver USA is open for business. And open for opportunity. In addition to extensive operating facilities and warehouse space, we have acres of undeveloped and ready-to-build land. With infrastructure, access to river, road and rail, and development experience, it’s not your ordinary industrial location. And we’re not your ordinary landlord.

THE PORT OF

AREA0525.indd 1

Possibility

09/12/15 9:59 PM