Area Development Q2 Issue 2018 by Area Development

Construction Industry Labor Shortage

LEADING METRO LOCATIONS FOR 2018

Demand for Urban Warehouses

AREADEVELOPMENT THE RIGHT S I T E

A N D

FA C I L I T Y

P L A N N I N G

• U.S. Tax Reform: A Game-Changer • “Maker Tech” Crosses Facilities Lines • When “Green” Practices Turn to Gold • I ncreasing the Ranks of Women in Manufacturing

Q2/2018

DIRT FACILITY PLANNING > PLAYBOOK

• Assessing the Labor Market • Maximizing Incentives Benefits • Performing Due Diligence

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CONTENTS OTHER FEATURES 23 “Maker-Tech” Crosses Lines

FACILITY PLANNING > PLAYBOOK

of Industrial, Office & Retail Uses

14 Due Diligence:

A new niche is forming in the industrial sector which needs to be near existing “brain clusters” of the targeted industry and may require sites zoned for multiple uses.

Thoroughly Investigating the Technical Aspects of a Site

34 U.S. TAX REFORM: A Game-

By carefully examining site conditions/logistics, environmental regulations/risk, as well as the area surrounding the chosen site, companies can avoid delays and cost overruns.

Changer for Manufacturers

The new tax law will provide U.S. manufacturers with additional cash, but they must still align their investment decisions with corporate growth strategies. Return money to shareholders

Invest in capital expenditures

17 The Art and Science of Assessing the Labor Market Only through a combination of data analysis (the science) and labor interviews (the art) can a company be sure of choosing a location where its workforce needs are satisfied now and in the future.

20 Maximizing the Benefits of Incentives

Pay for acquisitions

Invest in human capital

36 When “Green” Turns to Gold

A process-driven approach to site selection and incentives — including a formal RFP, informed narrative, and economic impact analysis — produces optimal results.

Incentives can help companies improve the ROI of environmental sustainability initiatives.

60 Increasing the Ranks of

Women in Manufacturing

Through education and mentorship, women will be encouraged to pursue careers in today’s increasingly technological and innovative manufacturing industries.

NOW ONLINE...

Exclusive Online Content • IN FOCUS: How to Negotiate a Better Real Estate Contract • Rethinking How to Incorporate Technology into Design • The New Aluminum and Steel Tariffs: Implementation, Consequences, and Next Steps

www.areadevelopment.com

• Retaking the Rust Belt • The New EPA Rules: Opportunity and Risk • A “Marshall Plan” to Develop and Attract Talent • Will the Tax Cuts & Jobs Act Increase Inbound FDI? • Thinking Outside the Box to Fulfill Workforce Needs

Area Development® Site & Facility Planning (USPS 345-510) is published four times per year (Q1, Q2, Q3, and Q4) 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 53 | Number 2 Q2/2018

Quote:

It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy. Adam Smith (1723 – 1790), Scottish economist, philosopher, and author best known for “The Wealth of Nations,” a precursor to the modern academic discipline of economics.

SPECIAL REPORTS 27

DEPARTMENTS

Texas Today

The state of Texas continues to gain accolades for its pro-business environment, which is sustained by its skilled workforce, low taxes, favorable regulatory environment, and deal-closing funds among other attributes.

4 Editor’s note

6 Front Line

Deconstructing Legislative Outcomes

6 In Focus

Attracting Companies in Emerging Industries

2018 Gold & Silver Shovel Awards

States that drive significant job creation through innovative policies, infrastructure improvements, and other processes that attract new employers as well as investments in expanded facilities are recognized.

Leading Metro Locations for 2018

areadevelopment.com/newsletter

8 In Focus

E-Tail Creating Demand for Urban Warehouses

10 First Person

Jack Uldrich, Global Futurist

MSAs are ranked based on 21 economic and workforce indicators in the categories of “Prime Workforce,” “Economic Strength,” “Year-OverYear Growth,” and “Five-Year Economic Growth” to determine which ones are top performers.

Join Our Newsletter

Construction Industry Faces A Labor Shortage

75 Ad Index/Web Directory

Online Database Resources www.facilitylocations.com

www.fastfacility.com

POSTMASTER: Send address changes to Area Development, Circulation Department, 400 Post Ave., Westbury, NY 11590. Subscribers requesting address changes must provide both old and new addresses. © Copyright 2018 by Area Development® magazine. ISSN: 1048-6534. Printed in the U.S.A. Area Development® is a registered trademark of Halcyon Business Publications, Inc.

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EDITOR’SNOTE

Q2/2018

Deconstructing Legislative Outcomes Tax professionals agree that U.S. tax reform is a game-changer for manufacturers. It puts extra cash in their pockets, but their spending plans must align with their corporate growth strategies, says John Livingstone of PwC. Will they make capital investments in new and expanded facilities and create jobs – or raise wages? After all, the President had touted the Tax Cuts and Jobs Act (TCJA) as an impetus for economic growth and job creation. As of May, it seems that the corporate executives at some of America’s largest companies have returned much of their tax savings to shareholders. Howard Silverblatt, senior index analyst S&P Dow Jones Indices, told Money that companies are on track to plow a record $1 trillion into boosting dividends and buying back their own stock this year. This artificially increases a company’s earnings per share but does little to improve the economy and create jobs — especially in an economy that’s essentially at full employment. There’s also some concern that the TCJA could make investment outside of the U.S. financially appealing. For instance, a subsidiary of an American business could be subject to lower taxes than a business earning income in the U.S., explains CBRE’s Alex Frei. Also, businesses will not have to pay U.S. taxes on money earned from plants outside the country if those earnings amount to 10 percent or less of the total investment. While the TCJA is saving companies money, the just enacted aluminum and steel tariffs may add to U.S. companies’ supply chain costs, as well as to consumers’ costs. The products using imported steel and aluminum — autos, appliances, etc. — will become more expensive. “Changes to the existing tariff structure could negatively impact our current U.S. production and further expansion,” said Jim Trainor, a Hyundai spokesman, in an email to IndustryWeek. In addition, other nations are threatening to impose retaliatory tariffs, thereby making U.S. exports more expensive. Add to this quagmire a rollback of environmental regulations that may or may not be advantageous to business. Submitting to the lower environmental standards may save companies money upfront in site development and buildout but carry longer-term consequences in terms of higher long-range operating costs, employee wellness and retention, and negative press. All of these policy and legislative changes are giving companies a lot to think about as they make new facility and expansion plans and may, in fact, cause business leaders to hesitate before making their next move.

www.areadevelopment.com EDITORIAL E-mail: editor@areadevelopment.com Editor Geraldine Gambale Staff and Contributing Editors Dale D. Buss Tom Gresham Dave Claborn Cynthia Kincaid Mark Crawford Phillip Perry Dan Emerson Mark Schantz Tom Ewing Steve Kaelble Clare L. Goldsberry Karen Thuermer

DESIGN/PRODUCTION Art & Design Patricia Zedalis Production Manager Jessica Whitebook Production Assistant Talea Gormican EXECUTIVE Publisher Dennis J. Shea dshea@areadevelopment.com Sydney Russell, Publisher 1965-1986 ADVERTISING SALES William Bakewicz (ext. 202) billbake@areadevelopment.com Valerie Krpata (ext. 218) valerie@areadevelopment.com ONLINE SERVICES Digital Media Manager Justin Shea (ext. 220) jshea@areadevelopment.com Business Development Matthew Shea (ext. 231) mshea@fastfacility.com Web Designer Carmela Emerson Circulation circ@areadevelopment.com

Editor EXECUTIVE OFFICES Halcyon Business Publications, Inc.

2018 Editorial Advisory Board Aaron Ahlburn Managing Director, Industrial and Logistics Research, JLL

Stephen Gray CEO, Gray Construction

Josh Bays, Principal, Site Selection Group, LLC

Minah C. Hall Managing Director, True Partners Consulting LLC

Marc Beauchamp, Vice President and Partner, The CAI Global Group

Trula Hensler Senior Marketing Manager, Baker Tilly Virchow Krause, LLP

Christine Bustamante National Co-Leader, Global Location and Expansion Services, KPMG

Scott Kupperman Founder, Kupperman Location Solutions, LLC

Gregory Burkart Managing Director, Business Incentives Advisory, Duff & Phelps, LLC

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

Brian Corde Managing Partner, Atlas Insight, LLC

Bill Luttrell Senior Locations Strategist, Werner Global Logistics, Werner Enterprises, Inc.

Les Cranmer Senior Managing Director, Savills Studley

Bradley Migdal Senior Managing Director, Business Incentives Practice, Cushman & Wakefield, Inc.

Dennis Cuneo Partner, Fisher & Phillips LLP

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President Dennis J. Shea John Morris Leader of Industrial Services for the Americas, Cushman & Wakefield, Inc.

Finance Mary Paulsen finance@areadevelopment.com

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

Business/Finance Assistant Barbara Olsen (ext. 225) olsen@areadevelopment.com

Eric Stavriotis Senior Vice President, Advisory & Transaction Services, CBRE Thomas Stringer Esq., Managing Director & Practice Leader, Site Selection & Business Incentives, BDO Consulting Dean J. Uminski Executive, Site Selection Consulting, Crowe Horwath LLP Dan White Senior Economist, Moody’s Analytics

All correspondence to: Area Development Magazine 400 Post Avenue, Westbury, NY 11590 Phone: 516.338.0900 Toll Free: 800.735.2732 Fax: 516.338.0100

Joshua Wright Director of Economic Development, Emsi

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INFOCUS Attracting Companies in Emerging Industries By Donald F. Smith, Jr., Ph.D., President, RIDC of Southwestern Pennsylvania

Companies in emerging industries need to feel they are working in partnership with the developers/landlords who are trying to attract them to their properties. DONALD F. SMITH, JR., PH.D., has been

president of RIDC of Southwestern Pennsylvania since 2009. He is a nationally recognized expert in regional economic development, with experience at the local, regional, state, and national levels. With a unique blend of academic and practitioner experience, his work has focused on how regions can leverage and complement their innovation institutions. Many property owners develop sites with the idea of attracting fast-growing, early-stage companies in emerging industries like robotics or artificial intelligence. But are they really prepared? Have they really thought through what attracting companies like these means?

First, let’s look at some of the challenges: A company that has just spun off from a university has no independent financial history, may have little or no revenue from operations, and only a handful of employees, none of whom has ever run a business before. A company may have only a few employees at the outset but will grow dramatically over the course of even a relatively short-term lease. Its needs will change — perhaps it will require a larger space for employees, a larger

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lab and R&D facility, large amounts of outdoor space for test tracks, or airspace for testing drones. Such a company isn’t sure what its future holds, how fast it’s going to grow, and what its space needs are going to be. Some companies have predictions that turn out to be wrong, and some fail altogether.

Strong balance sheets and relationships are key. Developers working with such companies will need to have strong balance sheets, longer than usual time horizons, and a broad perspective to succeed. They must have the flexibility to take some risk, invest some of their resources, and be willing to bet on the future success of their tenants. A large and diverse portfolio is also an important asset. An earlystage company might want to start out in a small office in an urban location, close to its university sponsor and a pool of talented young people who represent its future workforce. A year later, it might receive a government contract that requires the company to have a large test track in a more remote location. Not only do developers need to maintain relationships with their tenants, they need to maintain relationships throughout the industry, so they can recognize future trends and anticipate the market’s future needs. If they build out lab space for a particular tenant and its business fails, how much of a challenge will it be to find another tenant for that space? Landlords should also build a reputation in the field for offering properties with the attributes these tenants desire. Will they be near other companies in their fields, with that critical mass creating a sense of energy and dynamism, as well as allowing for potential business synergies? If the property is being built out for a specific user, will the developer be sufficiently well-regarded in the community to be able to obtain whatever approvals are necessary? If it’s a major construction project, will the developer be able to deliver on time, and does the developer have a track record with projects of that nature? In a sense, it boils down to this:

Will tenants feel supported and understood? Will they feel the same way about their landlord as they do about other business relationships — like it’s a partnership, with a developer who “gets it,” and who can help them anticipate and meet their needs as they grow? That’s the mentality developers need to successfully market themselves and their properties as homes to an industry that is transforming so many aspects of our society.

FRONTLINE

Construction Industry Faces a Labor Shortage By Dan Emerson

As construction labor market tightens, will project deadlines slip? Construction contractors are accustomed to dealing with complications that can delay projects. Bad weather, material shortages, and union strikes, for example. Add to that list a relatively recent situation: a shortage of skilled workers that seems to be affecting most of the U.S. According to the USG + U.S. Chamber of Commerce Commercial Construction Index, about 65 percent of small contractors report they have trouble finding skilled workers.1 The employment opportunity ratio for construction jobs has risen in recent months, according to online employment marketplace ZipRecruiter, indicating that there are more construction job openings and not

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enough qualified workers. In February, the nationwide employment opportunity index for construction jobs was 0.16, meaning there were six applicants for one job opening. A year ago, one job listing would see twice as many applicants.2 Small metropolitan areas have seen a more serious shortage in workers than densely populated areas, according to ZipRecruiter. For example, in Hot Springs, Ariz., there were four job openings for every qualified applicant, according to ZipRecruiter data. In 12 other cities, more than half in the Midwest and the Southwest, there was more than one job opening for every applicant.

A Nationwide Situation Ken Simonson, chief economist for the Associated General Contractors of America (AGC), agrees that the labor crunch seems to be a nationwide situation, based on AGC’s annual industry surveys. According to Department of Labor data, construction employment has been on the rise in about twothirds of the states, and 35 states and the District of Columbia added construction jobs within the past year.3 “The industry has no problem finding people, but many of those people don’t have construction experience,” Simonson tells Area Development. “So, companies have had to spend much more on training to bring people up to speed.” On a more promising note, the high cost of a college education has led more young people to consider careers in the skilled trades, Simonson notes. “As more kids come out of college facing large debt and wind up working as baristas, they are finding college is not the right choice for everyone, and that the starting wage in construction is a lot higher.” Rich Jacobson, executive vice president at Kraus Anderson Construction in Minneapolis — one of the largest contractors in the Midwest — has seen “definitely a strained market when it comes to hiring.” But Kraus Anderson has ways to deal with the tight market. “We’re very strategic; we plan ahead and try not to ‘over-promise’ clients by taking on more work than we can handle.”

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The company has a full-time recruiter, a director of talent acquisition, who works to make sure that Kraus Anderson has “a pool of qualified candidates ready at all times,” Jacobson says. The firm doesn’t use many unskilled laborers, mainly focusing on recruiting carpenters, project managers, and site supervisors, he says. “We’re selective and make sure we are hiring people for the long term, which is a better fit for us and for them.”

Developing Talent Kraus Anderson’s recruiter works with the AGC’s local industry advocate to access the local labor pool, and to reach out to potential candidates through trade shows, job fairs, and visits to high schools and technical colleges in the area. The company also works with Dunwoody Institute, a local trade school, to support scholarship programs and help with curriculum development in construction-related areas. Developing talent is essential, since the industry is “more technologybased than ever, using computers, tablets, drones, and other things in our everyday operations,” Jacobson says. To improve productivity, the company also relies heavily on robots in demolition work, he notes. Construction companies have responded to the labor shortage by stepping up their recruiting and training efforts, and “engaging more with school districts, community colleges, and labor force development agencies to modernize their career and technical education programs,” Simonson further explains. Companies are also investing more in a variety of high-tech machinery, materials, and methods to improve productivity. For example, laser and GPS-guided road graders reduce the number of workers needed on road projects. Drones are being widely used for remotely inspecting and documenting project conditions, and computer modeling has improved coordination between architects and project supervisors, and aid in material ordering accuracy. Using prefabricated and modular building materials is another way to boost productivity. “But it’s still hard

to get enough volume of business in a given location to keep a (component) factory,” Simonson says. “Contractors have a lot of site conditions, local building codes, and union rules to contend with.” So far, most contractors report they are still able to deliver projects on time, Simonson says “but they are increasingly concerned that deadlines will start to slip” due to labor shortages. The industry also anticipates project costs will start rising more rapidly, as contractors face higher costs for wages and benefits, and also recruiting and training. 1

http://www.usg.com/content/dam/USG_Marketing_Communications/united_states/product_promotional_materials/finished_ assets/usg-united-states-chamber-of-commerce-commercialconstruction-index-en.PDF?region=united_states&lang=english 2 http://observer.com/2018/03/construction-labor-droughttrumps-infrastructure-plan/ 3 https://www.agc.org/news/2018/03/12/construction-employment-rises-35-states-and-dc-january-2017-january-2018-jobs

INFOCUS E-Tail Creating Demand for Urban Warehouses By Joseph A. Panepinto, President & CEO, Panepinto Properties

In order to be close to their target markets, e-retailers are locating warehouses in urban locations and taking advantage of these densely populated areas’ built-in employee bases. JOSEPH A. PANEPINTO

is founder and president of Panepinto Properties, Inc. in Jersey City. From the early 1980s to the present, the company has developed more than 4.2 million square feet of mixed-use office, residential, and commercial space. Prior to that, Panepinto served as Jersey City Planning Board attorney (1971–1973), and later as the Jersey City Redevelopment attorney (1973–1977). During these years, Panepinto was a part of the principal team drafting plans for the future redevelopment of Jersey City.

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Amazon launched the nation into the age of e-commerce in 1995 when it shipped its first book out of a garage in Seattle. Since then, consumers have grown to embrace the “e-tail” lifestyle. In particular, millennials, the first generation to grow up with e-retail in a “one-click world,” are driving the demand for goods and services to be delivered to their doorstep. As they have aged, and their purchasing power has grown, they have created demand for delivery of everything from toilet paper to groceries to makeup to home goods. This trend is not expected to stop, and e-retailers are quickly snapping up industrial-use buildings and land to be as close as possible to the consumer base they need to serve. Buildings in locations near dense population centers mean reduced delivery times, which directly equate to reduced delivery costs. As retailers continually seek cost-cutting ways to deliver packages, delivery services are testing and using a variety of different delivery methods, including use of smaller trucks, vans, and cars in urban locations, and the possibility of drones to make deliveries in some areas. The trend toward alternative transportation modes in urban locations closest to the customers is making access to the “last mile” even more critical for e-retailers.

The Physical Space As large e-commerce providers and online retailers fight for space in urban

areas, former industrial-use facilities and available land become more expensive. Warehouse users today — which include on- and off-line retailers — must find the correct size warehouse (or build one) that has access to a highway and/or waterway, zoning for commercial use, proximity to dense areas within the target market (millennials with disposable income), and an appropriate and ample employee base. Many are also looking for buildings with high ceilings, wide door frames for delivery trucks, small bays for egress/ingress of trucks, loading, and shipping areas. Land and buildings for this purpose can take several forms. These may include former “big box” stores; former industrial land in various stages of remediation or other “brownfield” sites; under-used office space, usually in Class B or C locations within urban hubs; and in one instance, in Chicago, conversion of an underutilized parking garage to warehouse space. As technology and consumer preferences change, the search for and re-utilization of space will also change to meet demand and exploit opportunities.

The Employee Base The reality, though, is that more often the physical dimensions of the space aren’t as important as location, quick access to transportation, and proximity to customers.

One of the factors often overlooked in these areas is a built-in employee base. Large industrial warehousing facilities constructed in Class B or C urban locations become a significant employer of the local population. This includes not only the pick-and-pack employees, but also higher skilled maintenance, logistics, supply, and office workers to support the location. Given the opportunity to create urban jobs in locations that have classically suffered from job loss, the one partner in any development or adaptive re-use that should be heavily considered is also the silver lining — government. Municipal governments in urban locales are always looking for large employers. By partnering with political institutions as well as with county, authority, state, and even federal entities in the target area, a developer or redeveloper not only creates a use that becomes part of the fabric of the neighborhood, it also has the potential to avail itself of everything from tax abatements and tax credits to potential grants or loans that may be available. While some may lament that we have lost manufacturing jobs that we may never gain back, the trend of industrial warehouses cropping up in urban locations creates a whole new level of employment that will only continue to grow as the urban environment changes and adapts to new technologies and consumer preferences.

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

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FIRSTPERSON JACK ULDRICH

GLOBAL FUTURIST

How do you define disruptive technology? I would define it as an innovation that creates an entirely new product, service, market or value proposition. What are examples of recent disruptive companies? Wikipedia is a wonderful example. The disruption was not just putting the encyclopedia on the Internet for free. The real disruption came in thinking differently about who could write entries. It could scale really fast and could grow, and it’s now available in 160 different languages, all written by people who don’t get paid. Another good one is WeWork, which is the Airbnb of office and commercial space. Many small businesses don’t need to rent or even own their own property. They just need to access office space — sometimes on a daily basis, sometimes on a weekly or monthly basis. WeWork now has an estimated value of $20 billion, making it arguably North America’s largest property company, and yet they own virtually no property. They’re just helping landlords to microlease space. That is a powerful disruption. Do disruptive technologies share certain characteristics that help explain their impact? They start out slowly, they’re not very productive, and they seem to appeal to only a small niche or fringe business, so they don’t warrant the incumbents’ attention. But what’s tricky about disruptive technologies is they scale and grow at a near exponential pace, so what is substandard and unaffordable suddenly gets better. By that time, the incumbents who weren’t paying attention have ceded the ground to startups. When the first desktop computer came out, it was really expensive, and you needed to be sort of a techno-nerd to play around with it. IBM saw that and thought, “Who would want that? We make these really big powerful mainframe computers and that’s what our customers want.” Because of continued advances in computer processing power, data storage, and graphics, desktop computers got better, and by the time IBM saw what was happening, Apple and others had blown by them. Has the accelerated speed of technological progress in recent years led to greater industry disruption than we’ve seen in the past? The greatest change in business today is the rate of change itself. It’s that these technologies — computer processing power, data storage, bandwidth, sequencing of genomes, nanotechnology, robotics, 3D printing, sensor technology, blockchain, quantum computing — are happening at this unique period in human history and converging in interesting, unexpected ways. Even the rate of disruption is accelerating. The past isn’t prelude. We’re going to continue to see more disruptions on a faster scale than anything we’ve seen in the past. Is there any way to adequately anticipate these disruptive developments? I call it the Big AHA. AHA is an acronym for awareness, humility, and action. First and foremost, you need to be aware of the technologies that are transforming the world. Do your homework. Secondly, we all need humility to understand that the way we do our business today might not be sufficient moving forward. Business models are changing; customer expectations are changing; new competitors are emerging. You have to open your mind; see the world from a different perspective; listen to different voices. And the final thing is you need to take action. Start looking for partners. Can you partner with some of these disruptive startups? Is there a pilot project you can start on your own? Start doing something with these technologies. Take some risks.

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What common mistakes do corporate leaders make in this area? The most common mistake is to think 10 percent instead of 10X. Most businesses are focused on incremental improvements to their existing products because that’s what their customers are asking for. Customers say, “I like your product but if you could get it to me a bit faster, a bit cheaper, that’d be great.” The problem is people don’t know what hasn’t been created yet. When some disruptive company arrives with an entirely new product or service, those customers are now thinking, “I didn’t even know I needed that. That’s great.” So my advice to business leaders is to shake yourself out of incremental thinking and think big. Ask how you would grow your market tenfold, even if that means eating into your existing profit. What emerging technologies seem poised to create the greatest impact in the future? I don’t care what business you’re in, have a strategy around artificial intelligence. Start figuring out how machines can make sense of the data we are collecting and see if there are new ways to slice and dice that data to gain new insight that might lead to new products. Artificial intelligence is going to touch every industry. Another one is blockchain. It’s very complicated but it’s a kind of distributed digital ledger and what it’s going to allow people to do is save money and deliver products and services better, faster, and more efficiently. 3D printing is going to change a lot of industries, as are continued advances in robotics technology. The transition from 4G to 5G technology is a big one. With bandwidth that is 100-fold faster, we’re going to be able to do just entirely different things. Any final thoughts? The printing press was a revolutionary device, but Johannes Gutenberg’s genius wasn’t that he created it out of thin air. His genius was he took a wine press, movable type, ink, and paper and played around with them to create an entirely new platform that first disrupted the Catholic Church and then disrupted society in a powerful way. The equivalent of the wine press, movable type, ink, and paper today is data, cloud computing, artificial intelligence, and 5G technology; and business leaders have to play around with these tools. Don’t just think of one technology; think about how they might converge in some really interesting ways. Convergence is the key.

THE ASSIGNMENT Area Development recently asked Jack Uldrich, a global futurist and author, about today’s disruptive technologies and what business leaders need to do to stay ahead of the curve. Uldrich frequently speaks about technology, change management, and leadership to Fortune 100 corporations, venture capital firms, associations, NGOs, and government bodies around the world.

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ITALY AND THE UNITED STATES ENJOY A ROBUST TRADE RELATIONSHIP, bolstered in part by ties that go back decades. The U.S. is Italy’s third-largest export market and a major trade partner related to intellectual property. Still, as Italy’s economic recovery gains momentum, experts say opportunities abound for increased collaboration between the countries’ companies and research centers, particularly in the area of advanced manufacturing.

THE U.S. AND ITALY: Natural Complementary Partners

The Italian Trade Agency’s innovative conferences help to illuminate the rich potential for new U.S.-Italy advanced manufacturing partnerships.

“For historical reasons, the relationship is strong, but it could be stronger,” says Luca Settineri, head of the Department of Management and Production Engineering at the Polytechnic University of Turin. “I think there is still a long way to go before the potential of the cooperation is fully exploited.” Settineri says Italian companies have “the right products and the right prices” for greater collaboration with the United States, but they need to gain better awareness about opportunities. In that spirit, the Italian Trade Agency has helped to organize innovative conferences that match potential partners from both countries and examine advanced manufacturing trends as they relate to the U.S. and Italian markets. The next 2018 Innovation Days event will be held in Detroit and Chicago the week of June 25th.

Untapped Potential for Collaboration Marco Saladini, trade commissioner for the Italian Trade Agency in Chicago, is adamant: “There is ground for cooperation for the two sides, both in terms of R&D and in terms of technologies used in manufacturing,” he says. “There is a great affinity and similarity in the level of the technologies in use. There is interest for programs of research to be done together and for industrial collaboration.” Settineri agrees. He has talked with both American and Italian industry and academic contacts, including at a conference the Italian Trade Agency hosted in Milan in February, and he says the road appears promising. “I have noticed that there is a strong interest on the USA side on the research and innovation activities carried out in Italy and great appreciation on the level of the engineering schools,” Settineri says. According to Dr. Maurizio Reggiani, Chief Technology Officer at Automobili Lamborghini S.p.A., "Research in Italian universities is at the forefront in many fields. We have even in Italy several collaborations with the universities of Bologna, Milano, Padova, and Napoli, to name just a few, on important topics such as research on advanced materials, vehicle dynamics, and electrification." Roberto Dolci, president of aizioOn USA Inc., an Italian-born technology consultancy, attended a 2017 conference organized by the Italian embassy in Washington, D.C., that helped connect industry, policy, and academic experts. He says the conference prompted him to work with researchers from three U.S. universities to put together a proposal to the National Science Foundation. Meanwhile, partners from three Italian universities are applying to Italian authorities for funding for a mirroring project. Dolci says Italy and the U.S. are natural complementary partners. Italy’s greatest strength, he adds, is thriving small and medium-sized businesses. “In Italy, you’ve got lots of entrepreneurs that are involved with manufacturing and supply chain type of operations — and lots of automation — but you don’t normally have the scale that we have [in the U.S.],” Dolci says. Educating Italian Firms About U.S. Practices & Policies The February conference in Milan emphasized U.S. advanced manufacturing

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trends and technology-transfer practices as part of a broader governmental program to educate Italian firms and to help encourage increased spending on research and development and innovation. The event attracted manufacturing-oriented firms focused on near-term market developments, as well as larger Italian companies — such as Comau, BLM Group, and Lamborghini — that already have long-term relationships in the U.S. In addition, the Polytechnic Universities of Turin and Milan helped to host the event and provided an Italian higher education perspective, while visitors from five U.S. universities and two government agencies shared their insights. Saladini says the conference helped detail the intricacies of industry-higher education collaborations and how they differ between the countries and also helped to demonstrate how successful partnerships can work; for instance, both General Electric and General Motors have invested in projects based at the Polytechnic University of Turin. According to Settineri, the conference sparked essential conversations. “Giving the opportunity to academics and to people of the business world to exchange ideas and present their most recent activities has helped to have a good representation of the interests and trends of manufacturing on the two sides of the Atlantic.” Dr. Maurizio Reggiani says, "The collaboration with strategic markets such as the United States is essential for us in order to maintain technological leadership in key fields." He cites specific research programs at MIT — one with the Chemical Department led by Professor Dinca and another with the Mechanosynthesis lab led Professor John Hart — which "investigate the potential of energy storage in composite body panels as well as high capacitors replacing conventional batteries."

Innovation Days When and Where: June 26, 2018, in Sterling Heights, Detroit, MI; June 29, 2018, in Rockford, IL Program and free registration: id.ice.it Detroit conference topics: • Advanced Manufacturing and Automotive Prospects and Policies • Automotive New Technologies, Trends and Challenges • Industry 4.0 • Invest in Italy Opportunities • Automotive Supply Chain • Research and Industry Partnerships Note: If you are interested in reserving time for one-on-

Upcoming Events one, business-to-business meetings in Sterling Heights, The Innovation Days conferences in MI (June 26) or Rockford, IL (June 29), please register on line by June 18. Detroit will build on the Milan conference to further explore critical issues and encourage fruitful collaborations between some of Italy’s leading companies and research centers and universities and their counterparts in the U.S. The thought leadership conference will feature panelists from the corporate, higher education, association, and governmental agency realms, as shown in the event’s website. Registered U.S. participants can schedule customized one-on-one meetings with potential Italian partners (also mentioned in the website) in Detroit or Rockford, IL, on June 26 and 29, respectively. “We will be giving the audience several ways to learn and profit from this event,” Saladini says. Settineri says additive manufacturing and automation offer the most potential for U.S.-Italy collaboration. Dolci is willing to bet on the same topics and notes that Italy has higher relative levels of investment in automation than the U.S. right now, and that “it’s actually much easier to do that in Italy than it is” in the U.S. in the current climate. Settineri says that programs such as the Innovation Days Conference help shine a spotlight on the high quality of research and innovation activities in the Italian manufacturing sector. He hopes the conference will promote Italy’s strengths in the field and encourage more partnerships to form and flourish. “I would like the participants to get the feeling that Italy is a key player in introducing innovation in the manufacturing world, due to its economic structure and to the quality of its schools,” Settineri says. For more information about the Innovation Days Conference and to register, visit www.id.ice.it

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THE

RIGHT

DIRT RT Due Diligence:

Thoroughly Investigating the Technical Aspects of a Site By carefully examining site conditions/ logistics, environmental regulations/risk, as well as the area surrounding the chosen site, companies can avoid delays and cost overr uns.

By Alexandra Segers, International Senior Account Executive and Program Manager, SSOE Group

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While every project is unique, selecting a location for an industrial facility requires a rigorous and complex process that examines a multitude of factors. It’s imperative to weigh operational, logistical, and ﬁnancial considerations during the decision-making process. Due diligence should address both qualitative and quantitative measures of a variety of site characteristics to assess whether the location meets the current and also future needs of the company. What To Evaluate Many details come into play in determining the suitability of a site. Here is a sampling of things to consider: S i t e c o n d i t i o n s — It’s important to take into account geological and topographical conditions in the area to determine its suitability for an industrial facility. An ideal site will

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fracking activity in the area? Are there heavy industries (e.g., chemical operations) close by? Is your production prone to salinity or radon?

have well-graded, compacted soil with high soil-bearing pressure. For a greenfield manufacturing plant, the type of operation and equipment installed will affect the soil requirements. For example, a heavy load production plant constructed on a site with low soil-bearing capacity will require a deep foundation, increasing construction costs. The evaluation should assess the level of the water table. A high water table creates drainage issues and makes construction more difficult, especially if the production requires pits. Other site characteristics that affect construction and operations include the size and shape of the parcel of land. The purchase of too much land will tie up capital, while a site that is too small can hinder growth of the company at that location. Will adjacent land be available for future expansion? Also take into account the shape of the land parcel, which can allow or prohibit the construction of additional buildings in the event of future expansion. E n v i r o n m e n t a l r i s k f a c t o r s — An environmental assessment report is critical in order to check for factors that can complicate and delay construction or operations. It’s also wise to undertake an archaeological study as well as an endangered species analysis. Risk factors can be measured by assessing the site’s seismic zone, wind zone, rainfall intensity, and the presence of wetlands, streams, and flood areas. What is the likelihood of an earthquake, hurricane, tornado, and/or hailstorm? Are shelters required? Nearby operations can also affect the site’s suitability. Check for contamination or pollution on or near the site. Is there

S i t e l o g i s t i c s — For most companies, executing key business strategies and ensuring convenient travel require easy access to infrastructure. The location and its accessibility by air, rail (rail line, intermodal facility), sea (ocean port, barge), and/or major highway will affect the ease and cost of the way raw materials are brought in and finished products/materials distributed. For ground transportation, check roads to determine if they can accommodate the required truck traffic and loads. If construction will require the transportation of large equipment pieces, logistics and accessibility are particularly important to review during the site selection process rather than at a later stage. Additional elements such as the height of bridges, width of roads, and necessity of coordinating with the Department of Transportation may come into play. U t i l i t i e s — Take into account the demand, cost, quality, and reliability of basic utilities. Their impact can be lasting, as these costs can represent a significant portion of annual operating expenses. Factor electric power, natural gas, fiber optics, water, and sewer services into the decision-making process. Look at the cost of starting up these services as well as recurring costs. Consider the potential need for expanded capacity with future growth of the company at the site. Permitting and regulatory environm e n t — Regulations vary by city/county/ state. Take into account zoning regulations, as well as the ease/difficulty of and lead time needed for various permitting processes. Check regulations applying to design and land use. Are there building height restrictions or covenants in place? Federal Aviation Administration (FAA) restrictions? AREA DEVELOPMENT | Q2/2018

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What planning and operating permits are required? What operating licenses are necessary? Are there any limitations on the plant’s hours of operation? O t h e r c h a l l e n g e s — How many current owners does the site have? When there are a large number of private owners, immediate availability is unlikely and protracted delays can derail the process. Are there any existing liens on the site? Do easements and/or underground utility lines cross the site?

A high water table creates drainage issues and makes construction more difficult, especially if the production requires pits.

Where Things Can Go Wrong When the due diligence process falls short, costly headaches are likely to result. Here are two examples of inadequate research and planning:

Example 1 — An international automaker opening a U.S. plant secured a site and developed a plan and project timeline. Its first site glitch occurred during construction — the discovery of a blue-line stream that had to be relocated and rerouted. The next obstruction — bulldozers encountered a rock bed that had to be blasted out of the way. The final blow was the discovery that the site was home to an endangered species — a turtle family that also had to be relocated. Example 2 — A company selected a site that was “certified” through a program that provided detailed information about factors such as utilities, access, environmental concerns, and potential development costs. Though the program assessed the risks associated with development generally, project-specific information was not gathered. In addition, only 300 of the 450 acres the company selected had been certified, and the remaining 150 acres were not assessed. During the design phase it became apparent that the site’s close proximity to an airport would present a major problem. While the flight path had been checked during site selection, the certification did not apply to or provide information about the approach and proximity to the airport’s systems and controls. The FAA took 16

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action due to concern about the heights of buildings and structures as well as the risk that a highly automated production would interfere with the airport’s technical system. It ultimately requested a review of every building and structure, including stacks and the substation. This type of review can cause extensive delays, as it can take up to nine months if questions and clarifications are requested. Certifications are often misunderstood. While they may be useful in the gathering of general reports, studies, and utility information, they frequently fail to uncover project-specific risks such as those presented by the nearby airport in this example.

Consult An Expert To avoid the types of difficulties outlined herein, make sure to conduct the appropriate studies of the site and its environment. Following are among the things on an engineer’s checklist: identifying wetlands, streams, and flood areas; testing soil composition; investigating the presence of endangered species and archaeological findings; evaluating weather conditions; and studying the site’s access by road, sea, air, and rail. An efficient due diligence process and successful site selection often require the input of a qualified site selection expert with deep knowledge of engineering principles, building codes, permitting requirements, and regional characteristics that affect operations. There is no shortage of businesses claiming to offer these services. But note that it’s best to hire someone with the client’s best interests at heart, rather than someone chasing a sales commission. An experienced consulting engineer will ensure no issue is overlooked and efficiently manage the process. This will help the company minimize headaches, delays, and cost overruns. n ALEXANDRA SEGERS, DIPL.-ING., is an international senior account executive and program manager with SSOE Group, a global project delivery firm for architecture, engineering, and construction management. She can be reached at ASegers@ssoe.com. for free site information, visit us online at www.areadevelopment.com

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FACILITY PLANNING > PLAYBOOK

The Art and Science of Assessing the Labor Market Only through a combination of data analysis (the science) and labor interviews (the art) can a company be sure of choosing a location where its workforce needs are satisfied now and in the future.

s a corporate executive team analyzing the right community in which to locate its next company investment, access to a deep labor pool with the appropriate skill base is one of the most important project drivers to thoroughly understand. More than any other site selection factor, evaluating the labor market accurately will enhance or inhibit

your company’s success and return on investment in a chosen community. Misreading the labor market reduces profitability due to high turnover, inability to fill positions, and/or the need to recruit from outside a labor shed area to find/ relocate workers. Labor markets are complex and inherently capricious, and potentially filled with unexpected

CAN-DO ATTITUDE Before your doors open or the ﬁrst product is produced, Mississippi and its community college system provide customized workforce training, giving you a skilled team of employees from Day 1. As new production techniques and processes develop, our team continues to train your team. Our eight universities – including four research institutions – are honing talent capable of giving your business a competitive edge.

Let Mississippi deliver job-ready employees for your business.

MISSISSIPPI WORKFORCE mississippi.org/workforce

By Doug Rasmussen, Director, Site Selection & Incentives Advisory, Duff & Phelps, LLC

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pitfalls even when one is seemingly doing the proper due diligence. Veering off course — and making wrong inferences and conclusions — is easy to do without the right framework to guide one’s decisions. So how does one go about reading the market accurately? In short, it comes down to analysis and executing a plan around two broad but related questions: 1. Do enough workers with the skills I need exist in this location now and likely for the full anticipated lifecycle of the investment? 2. Can I regularly access these workers for the full investment cycle, or could local competition for them increase or labor pools change, thus limiting the long-term success of the project?

Making a Comprehensive Study

A WORKER HAVING A SKILL SET ON PAPER IS DIFFERENT THAN THE HUMAN EXPERIENCE OF HOW THAT SKILL SET IS DEPLOYED.

To answer these questions accurately and affirmatively and reduce the risk of a poor site selection decision, a comprehensive study of an area’s established labor pool and talent pipeline is critical. This analysis includes several interrelated components. The first is a demographic analysis of workers in the marketplace by occupation and skill. This usually involves mapping standard occupational codes anticipated to be hired at the project against the public and privately produced data sets that analyze worker data down to the regional, sub-regional, county, and municipal level. Although it rarely happens, ideally one will find a community to have a concentration of workers well above the national average for all key occupational codes. Locations that are at or below the national average for key occupational codes should be flagged for further analysis, with the potential for elimination absent other supporting data that indicate a pipeline of potential workers. To make up for shortcomings in the number of workers in targeted occupational codes, look for efficiencies and availability in the labor supply in related occupational codes that can be “cross walked”

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relatively easily to the preferred occupational classifications using on-the job training and retraining provided by local training providers and subsidized through a state or local economic incentives package. It is also important to think about worker data in the context of historical and projected population trends. All other things being equal, a location with high population growth or in-migration, higher labor force participation, and a younger demographic profile generally will ensure a better chance of long-term success than one that has workers who are aging out and not being replaced by in-migration or organic population growth from younger generations. Additionally, locations that have a clear plan to create and train needed workers (with a proven track record of success that can be verified) can also be critical to overcoming inherent data deficiencies in the labor market. A thorough analysis of the area’s training providers and educational institutions — and types of graduates/skills they produce as well as the placement and success of their graduates — is key to understanding whether these gaps can be overcome. Do local educational institutions have a track record of placing their pipeline into local employers, and if so with what success? Do educational institutions regularly meet with industry to tailor programs to the needs of the job market, or is education isolated from market demand?

Performing a Series of Interviews While the above are strategies to set you on the right path, data itself can only tell so much, and a purely datadriven analysis will overlook important subtleties in the labor market that can torpedo a project if not uncovered upfront. The most effective way to uncover the story behind the data is an in-market series of labor interviews with like employers. In these interviews one can discover important subtleties not picked up in the data, such as competition for labor supply among employers. On a site selection assignment a few years ago, I was

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representing a not-for-profit headquarters that had shortlisted four finalist markets. We were working in one of the finalist locations which otherwise had all the right labor characteristics and demographic trendline characteristics to be an excellent long-term location for our client. As we performed several interviews, a major theme began to emerge among our client’s peer group: talent recruitment was a major challenge, even with a seemingly large number of people (including a large in-migration of people moving to this community). The not-for-profit executives we interviewed stated that even when the economy was average, major for-profit headquarters (which are plentiful in this metro area and growing) can and do hire at better salaries. Not-for-profit executives in this market frequently leave for for-profit employers. In this case, the labor market isn’t so much about access to talent, but retention of talent once accessed and hired. This type of labor churn trend was not evident in the data and would have been highly disruptive to our client had we selected this community. Each client assignment is loaded with these types of subtleties based on the specific employment profile of a client’s project that only private confidential interviews can fully reveal. Other important items often picked up in the interview setting include geographic subtleties within metro areas — i.e., on which side of the river, highway, airport, etc. can I find these types of workers, and what are their commuting patterns? Subtleties of employer experiences in recruiting and retaining talent are also revealed — i.e., where does the employer recruit locally for talent and how long does it take to fill an open position? Even thoughts on whether people tend to be loyal to their employer and stay in their jobs or leave them more frequently can be revealed in the interview process, as can the ease or difficulty of recruiting key executives from out of town and any resistance to the community and why. These face-to-face conversations are a treasure trove of information critical to a deeper understanding of a community’s labor market.

The Art & Science The study of a labor market is both an art and a science, with one informing the other and each being important to an accurate evaluation as it concerns both near-term and long-term implications of a successful site selection decision. A deep and thorough data analysis of the market (the science) is the critical underpinning; however, only by seeing through, inferring, and parsing the data with qualitative real-life experience via labor interviews (the art) can one confirm the science is good science and the data is good data. A worker having a skill set on paper as a data point is different than the human experience of how that skill set is deployed within the context of the emotional and capricious nature of human behavior in a workplace. Although no labor market and its workforce are like any other, with thorough preparation from a quantitative and qualitative perspective, labor markets can be understood and expectations managed, resulting in a location decision that is both logical and arrives at a successful conclusion. ≈ ≈ ≈

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Maximizing the Benefits of Incentives A process-driven approach to site selection and incentives — including a formal RFP, informed narrative, and economic impact analysis — produces optimal results.

elocation and expansion activities are exciting, rewarding, and risky undertakings for any business. And arriving at a final site location decision is not always easy. But proceeding diligently, by following a thoughtful and analytical road map, should put you on the right path. There are many factors to consider as you make your site selection decision. Some are common to most projects, such as labor availability and wage levels, the local cost of real estate, utility costs, and access to markets. The relative level of importance of other factors — for example, proximity to existing customers and suppliers — can vary significantly by project. As site alternatives are identified, each will present advantages and disadvantages with respect to your decision criteria. And where there are disadvantages, there is incremental cost that can erode your project’s return on investment (ROI). Fortunately, federal agencies, states, and localities offer financial incentives to support your project objectives as well as help address and offset the cost of disadvantages inherent to a given location option. Throughout the decision process, it is a leading practice to not only identify these advantages and disadvantages along the way, but also to quantify them. Qualitative and quantitative information will inform the narrative, or story, you ultimately convey about your project.

Leave no stone unturned. As you identify financial incentives opportunities, leave no stone unturned. Look for tax and non-tax benefits at the federal, state, and local levels as well as By Brandon M. Pyers, Ernst & Young LLP Northeast Location Investment, Credits & Incentives Leader; Paul A. Naumoff, EY Global/Americas, Location Investment, Credits & Incentives Leader; and Brian R. Smith, EY Global Inbound Investments Leader

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within private-sector utilities and public/private partnerships. And as you familiarize yourself with both the discretionary and statutory programs available, be aware that there are several considerations to keep in mind. Discretionary incentives, for example, are generally applicable to expansion projects, such as those that will create new jobs and/or incur capital investment. For projects that qualify, discretionary incentives commonly come in the form of cash grants, or above-the-line savings, such as the abatement or rebate of personal income, sales, or property taxes. You will want to plan for the type of approvals that are required. The size of these projects and their importance to the community may necessitate executive office or board approvals through a public process. And, as ever, timing is everything. If you have proceeded with

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your project before seeking discretionary incentives, you may lose the ability to qualify for them. Discretionary incentives are generally not available once the project has been publicly announced or the investment and/or hiring are under way. Considerations related to discretionary incentives vary — they may specify particular types of investments or a certain level of job creation. Sometimes the criteria go beyond the project activity itself. California’s criteria, for instance, include the prevalence of unemployment or poverty in the area.1 Statutory tax credits are available to any taxpayer who meets the legal criteria. Statutory tax credits serve to reduce the overall state tax burden and are, in some cases, refundable. They can be claimed upon filing of the relevant federal, state, or local tax return, after the investment or qualifying business activity has occurred.

Issue a formal RFP. Once you have a good grasp of your site location evaluation criteria and the landscape of financial incentives, it is a good idea to use a formal request for proposal (RFP) to make your project parameters, needs, and expectations clear — in writing — to each of the contending jurisdictions. Your RFP should establish the project facts, as well as highlight the key decision-making criteria. This process enables state and local policymakers to provide a response that best fits the needs of the project. The RFP also serves to initiate a dialogue that can lead to benefits that might not have otherwise been achievable. It opens the discussion to possibilities such as special legislation and creative alternatives for “off-menu” benefits (for example, discounted rent or free land). Another important process step is translating your business plan into a long-term cost model that evaluates both up-front capital cost and ongoing operational costs. The various responses to the RFP, including the proposed incentives, will help complete your integrated cost model and enhance your understanding of the project’s true economic picture. Additionally, this exercise will often reveal key financial gaps between location options and allow for a more meaningful dialogue with the respondents about the value of the proposed incentives packages.

Determine which benefits have the greatest impact. It is important to be able to discern which, among the many possible benefits, will have the greatest impact on your operations. Begin by knowing the tax code. Understand whether you can actually use the benefits that are offered. Is it possible that certain nonrefundable tax credits will be “trapped” for an extended period of time due to your forecast tax position in the given state? Among the key provisions requiring consideration are the credit-delivery period, the carryforward period, and the ability to monetize or refund the credits that are available to you. Additionally, determine if the incentive is transferable between entities and how it will be treated on your corporate

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FACILITY PLANNING > PLAYBOOK tax return. Also, certain incentives may be taxable for federal purposes, which could greatly reduce the effective value of a benefit that initially might have looked more significant. Remember, the value you negotiate is only as good as the value that you are ultimately able to realize and retain. It is also important to remember that your proposed business activity is of great benefit to the state, the region, and the community. Therefore, don’t limit yourself solely to that which is “on-menu.” If your project is significant enough, economic development officials will usually be open to creative ideas that may be of value to the project, such as favorable procedural or administrative fixes and even special legislation. Compile your wish list and evaluate the pros and cons of asking for it within the negotiation process. Understanding the project cost through modeling, as well as the company’s current and future tax positions, makes it possible to identify a list of creative alternatives. Perhaps existing legislation could be changed to broaden qualification criteria, or to extend qualification periods or allow for monetization of benefit streams. Incentives are not the only way your project can benefit. For example, tax provisions such as classification of the business as a manufacturer or R&D corporation, or income apportionment rules, have at times been amended to help attract and support strategic economic development projects. These changes can be taxpayer-specific, applying to your project alone, or they can be so broad as to apply to all taxpayers.

Demonstrate the state and local ROI . Once you have selected a location or subset of locations that present the greatest opportunity, begin looking at your project from the state and local government perspective. What benefits would it bring to the state, the locality, and its citizens? You must communicate your position clearly and succinctly, using quantitative information that supports your assertions about the impacts your project will have on the region and the industry. Know the economic impact of your proposed operations, and present it to effectively describe your project. Build on this quantitative narrative with data from an economic impact study. Such data can help advance your project in several ways. Powerful insights can be found, for example, in data that projects the economic “ripple effect” of the proposed operations themselves,

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new construction, and the presence of nearby suppliers and customers — the direct, indirect, and induced impacts. Illustrating the new taxes to be realized from these impacts will help you demonstrate the state and local communities’ ROI for the proposed project. Quantifiable metrics can also be effective not just as a financial tool, but as a public relations tool, as well. For example, the public officials involved can use this data in internal and external discussions to build support for your project.

Take precautions and make smart use of technology. Even the best public relations function, however, will not protect against every pitfall that may present itself. Be aware of the common areas where problems can arise. If you are not proactive in your planning and communications, misunderstandings about reporting requirements or the entities involved can occur. Additionally, follow leading practices and take every precaution to provide as accurate a picture of the proposed project as possible. Incorrect headcount and investment projections can diminish your ability to optimize financial incentives. It is also not uncommon for employers to misstate wage levels by not including all appropriate types of compensation. Smart use of technology and integrated support can keep many such problems at bay. For example, utilize technology to track and monitor reporting requirements related to maintaining incentives benefit streams. Webbased tracking is now prominent in the industry and allows for all agreements to be stored in a centralized, accessible format. Internal to your organization, technology-enabled incentives compliance reduces risk while also helping promote the importance of the incentives function, the value received, and project successes. A process-driven approach to site selection and location investment incentives that involves data analytics, cost modeling, tax technical insights, a formal RFP, economic impact analysis, an informed narrative, and technology enablement is a leading practice in today’s business environment and one that is likely to produce optimal results. ≈ ≈ ≈ 1

“California Competes Tax Credit Evaluation Factors,” Legislative Analyst’s Office, 31 October 2017 (accessed via http://www.lao.ca.gov/Publications/Report/3709, 18 March 2017). The views expressed are those of the authors and do not necessarily reflect the views of Ernst & Young LLP or any member firm of the Global EY organization. The authors do not bear any responsibility whatsoever for the content, accuracy, or security of any websites that are linked (by way of hyperlink or otherwise) within the article.

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ADVANCED MANUFACTURING/ SITE SELECTION

“Maker-Tech” Crosses Lines of Industrial, Office & Retail Uses A new niche is forming in the industrial sector which needs to be near existing “brain clusters” of the targeted industry and may require sites zoned for multiple uses. By Ed Del Beccaro, Senior Managing Director, Transwestern

n emerging type of advanced manufacturers, or “maker-tech” firms, is blurring the lines between design, fabrication, and small-batch production facilities to quickly turn ideas into finished products. Sharing many characteristics of the hacker or maker culture, these companies may employ engineers, scientists, and skilled trade workers as well as production line operators to fuel innovation. These highly flexible, technologically advanced shops are small by industrial real estate standards, seldom occupying more than 10,000 square feet. Nonetheless, their presence is partially responsible for the resurgence of U.S. manufacturing output over the past decade, providing a necessary link in the development of electric sports cars, military-grade drones, consumer electronics. and other cutting-edge products. To understand maker-tech companies and the real estate that best serves them, it helps to have an appreciation for the way high-speed data connectivity and additive manufacturing or 3-D printing have slashed time-to-market expectations and disrupted traditional product-development practices.

Fewer People, More Output U.S. factories reached peak employment at 19.4 million jobs in 1979 before a gradual decline that accelerated after 2000. Manufacturing as a share of the overall workforce, however, had been dropping since the end of the Korean War. Almost one in three Americans, or 32.1 percent of the working population, held manufacturing jobs in 1953, compared with 8.5 percent of workers today, according to the Bureau of Labor Statistics.1 However, manufacturers are hiring. The sector’s job count of 12.6 million in

February 2018 was up by more than one million from early 2010, when manufacturing employment reached a historic low following the Great Recession. But the percentage of factory jobs relative to the overall economy has remained static in recent years, and job growth in other sectors has far overshadowed manufacturing employment gains in the past decade. Productivity is a different story. While manufacturing output in some industries including textiles, apparel, and leather goods has declined precipitously since the late 20th century, output has shown healthy growth in aerospace, fabricated metal products, machinery, motor vehicles and parts, and computers and electronics. Overall manufacturing output increased 42 percent from 1987 to 2008, when it contracted during the Great Recession. By the end of 2017, output had recovered the ground lost in the recession, and it continues to increase.

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Maker-Tech Uses Defy Labels Advanced manufacturing, or “maker-tech,” isn’t defined by a particular set of activities. Its defining feature is most often the variety of uses it brings together in an industrial setting. Software designers and electrical engineers may work together to fine-tune the next smartphone, for

example. Or an advanced manufacturing operation may involve specialists in regulatory compliance, petrochemical engineering, and equipment fabrication, all collaborating to produce an oil-field valve that stands up to new government regulations. One example is the former Sun Chemical building at

In other words, U.S. factories are relying on automation and robots to produce more and higher-value goods. While they are accomplishing this with fewer workers, they now must seek out labor possessing the necessary education and skills to maintain and repair automated equipment. The emphasis for many U.S. manufacturers today is generating profits through responsiveness to ever-shifting consumer preferences or industrial requirements, and speed-tomarket with new or modified items catering to those needs. This runs contrary to the idea of competing for sales and profit by achieving the lowest cost, which was the principal force behind offshoring the manufacture of many household and personal goods in years past.

Harnessing Maker-Tech for Strategic Advantage In many industries, the time-tested model of rolling out a product, collecting user feedback, and introducing a few improvements in the next year’s model has become too slow and cumbersome to retain a company’s market share. The faster a manufacturer can incorporate improvements, the better its chances to capture sales while the iron is hot. A manufacturer of limited-production automobiles, for example, may surround its assembly plant with suppliers within a half-day’s drive, and many of those providers will fall under the maker-tech umbrella. When the central company’s engineers want to improve a car part such as a motor bracket, they may transmit their design to an advanced manufacturing firm capable of producing the part. After working out details of the new component with engineers, the supplier may use a form of 3-D printing to mock up a plastic version of the bracket and have it delivered to the client on the same day. Once the automaker confirms that the design fits its requirements, a metal fabrication shop — which may be part of the same firm that produced the plastic mock-up

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1577–1599 Factor Avenue in San Leandro, California. Tenants include Atlantic Specialty Coffee, which makes decaffeinated green coffee and tests coffee samples in a laboratory setting for an international clientele; component painting company Reliable Powder Coating; and Sun Chemical, a high-end printing firm

that once occupied the entire building but has compressed its footprint using advancements in printing technology. The building has been upgraded to meet the new users’ requirements. Property enhancements included a new fire alarm system, elevators, regraded parking lot, landscaping, and lobby.

— can machine a working version of the bracket out of steel, aluminum, or even an advanced composite and ship that to the customer for testing. After testing, the same producer can make necessary adjustments and either transmit the design and a finished sample to a small-batch manufacturer or produce the new parts in volume on a flexible manufacturing line. This example shows that multidisciplinary industrial providers help speed the innovation process to deliver a final product in a matter of weeks or even days. Compare that to the months that were once required to ship designs and prototypes to distant manufacturers, design and outfit production lines, and make and then ship a final product. Even if the end goal is mass production at a dedicated manufacturing site, a dynamic maker-tech shop can reduce the time required to begin production.

Site Selection Maker-tech firms often work as problem-solvers for larger organizations, and therefore must be accessible to the clients and potential clients they plan to service. They may form clusters or ecosystems around a major employer, such as an automaker, or around a regionally dominant industry, such as oil and gas. A good rule of thumb is to focus site selection in submarkets within a four-hour drive of suppliers and clients or prospects. Potential sites should offer easy highway access and proximity to an airport within a one-hour drive, if not closer. Labor is a critical factor in site selection and a challenge in many markets. Like a software provider or electronics designer, maker-tech firms need a ready supply of skilled labor. But unlike more siloed employers, a single advanced manufacturer may require experts in software, hardware, machining, welding, and assorted fabrication methods, as well as a reliable source of new workers to replace those who for free site information, visit us online at www.areadevelopment.com

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HIGH-PROFILE URBAN MANUFACTURING INCUBATORS INCUBATOR

CITY

YEAR STARTED

AFFILIATION

FEATURES

Atlanta

1980

Georgia Tech University

Education workshops, R&D labs, prototype facilities

Menlo Park (Silicon Valley)

1998

None

Los Angeles

2011, 2016

City of Los Angeles

Electronics lab, chemistry lab, cell lab, CNC center, water jet center, welding shop, 3D printing, laser cutting, wood shop

Somerville (Boston)

2011

None

Shared workspaces, educational workshops, shared equipment, prototype manufacturing space, wet lab

Atlanta

2012

Georgia Tech University, T3 Labs

R&D lab, prototype and testing facilities

San Francisco

2013

PCH International

Educational workshops, hardware prototyping lab, shop space, 3D printing

Park Lane Conscious Manufacturing Facility

Tempe (Phoenix)

2013

MAC6 & Arizona State University

AlphaLab Gear

Pittsburgh

2013

Innovation Works

Seattle

2015

None

Los Angeles

2015

NEO Tech, Hexlab

Brooklyn Navy Yard New Lab

Brooklyn

2016

New York City Economic Development Corp.

JLabs @ TMC

Houston

2016

Johnson & Johnson, Texas Medical Center

Futureworks NYC Incubator

Brooklyn

2016

New York City Economic Development Corp., SecondMuse

Shared workspaces; workshop and fabrication studio providing tools, equipment, software, events, classes, and community programming

mHUB

Chicago

2017

World Business Chicago

Co-working, 3D printing, electronics, laser cutting, metal fabrication, plastic molding, testing, textiles, welding and grinding, wet lab, wood shop

The Hatchery

Chicago

2018

Accion Chicago, ICNC, IFF

Shared kitchen, cold and dry storage, co-working space, private food-grade production spaces

Indianapolis

2018

Indy Chamber/ Indiana University â&#x20AC;&#x201C; Purdue University

Advanced Technology Development Center (ATDC) The Foundry Los Angeles Cleantech Incubator & La Kretz Innovation Campus Greentown Labs

Global Center for Medical Innovation Highway1

Industry Space Seattle

Make in LA

16 Tech

R&D lab, prototype and testing facilities, wet lab, machine shop, clean rooms

Manufacturing co-op workspace, prototype testing lab, incubator space Collaborative workspace, prototype testing, shop space Shared workspaces and equipment, overhead crane systems, compressed air system, industrial paint booth, 3D printing Electronics lab, wood and metal workshops, plastics and mold machines, 3D printing, laser cutting Hardware-focused shared workspace, prototyping shops, R&D Lab, 3D printing Co-working, R&D labs, wet labs, 3D printing

Maker space, co-working space, research and wet labs, greenspace, event space

Manufacturing incubators provide space and equipment to help entrepreneurs develop new products, including software labs, machine shops, computer-aided design systems, and other features that are also commonly included in advanced manufacturing facilities. The number and distribution of these incubators throughout the United States underscores the strengthening foothold of maker-tech in driving innovation in manufacturing. SOURCE: Transwestern

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move on. Even if the company doesn’t employ those specialists directly, it may need working relationships with nearby firms that can provide those skills. Hence, the site search must identify skilled labor pools continually replenished by area universities and trade schools. This will narrow the list of options to communities with existing brain clusters serving the targeted industry. These thriving hubs exist in only a handful of major U.S. markets, with examples including the San Francisco Bay Area, Boston, New York, and Atlanta. Buildings must offer excellent power and gas service and a robust shell. Advanced manufacturers are unlikely to choose low-cost locations off the beaten path because the disadvantages of accessing a remote facility will outweigh any benefits to be gained in the form of below-market rent. Standard ethernet broadband access may be inadequate for firms that need to rapidly transmit massive design files and supporting data. For those users, properties with access to dark fiber may offer a solution. Dark fiber is unused fiberoptic cabling that many telecommunications providers now install alongside their lines for future use, which can sometimes be leased or purchased for exclusive use as part of a fast and secure wide area network. At a minimum, maker-tech firms will seek the highest commercially available bandwidth to the site. Building out a space for an advanced manufacturer may cost $50 to $100 per square foot, compared to about $20 per

square foot for more traditional manufacturing. This reflects the variety of activities it may expect to perform in the building, from computer-aided design in an office setting to welding and machining in the next room or a building nearby. The particular use may require advanced mechanicals to heat and cool the space as well as equipment. Some operations will require specific fire-suppression systems or elaborate plumbing work. Office, industrial, and even retail activities taking place at the same property are not only unusual by traditional real estate standards, they may also clash with longstanding zoning rules in some communities. In-place zoning may preclude some usage combinations and require rezoning or a special designation to serve the manufacturer’s needs. A few progressive municipalities have recognized the importance of maker-tech space and accommodate its existence through local ordinances. Options can include building-bybuilding zoning or sub-zoning areas within a single structure for various uses. Special zoning may become less of a concern over time, however, as more communities come to recognize the vital role that maker-tech plays in product development and manufacturing. n ED DEL BECCARO is senior managing director of the Walnut Creek, East Bay, and Silicon Valley offices of Transwestern, a full-service commercial real estate firm. 1

http://www.pewresearch.org/fact-tank/2017/07/25/most-americans-unaware-that-as-u-s-manufacturing-jobs-have-disappeared-output-has-grown/

Location Economics T H E N E W S C I E N C E F O R A DVA N C E D S I T E S E L E C T I O N

Industry-leading labor data and customized indices to navigate complex real estate decisions • Software • Interactive apps • Consulting National to neighborhood analyses

Economicmodeling.com/cre 26

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for free site information, visit us online at www.areadevelopment.com 15/11/17 3:34 AM

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TEXAS TODAY WHERE BUSINESSES SUCCEED

It’s

certainly not every day that a state gets an opportunity to attract a $10 billion economic development investment, and many states aren’t really prepared to respond to such a massive possibility. The proposed ExxonMobil-SABIC Gulf Coast Ventures deal, however, was right up Texas’ alley. Certainly, Texas has plenty of experience in petrochemicals, but it also has the wherewithal to make big deals happen — and it did about a year ago. The Gulf Coast Ventures project, a joint venture between ExxonMobil and Saudi Arabia-based SABIC, is to include the largest ethane cracker in the world. It’s in the works near Corpus Christi and could be completed as early as 2021. It promises as many as 6,000 construction jobs plus permanent work for 600, along with some 3,500 indirect or induced jobs once it’s up and running. According to a company news release, “The project will create value not only for both of our companies, but for the surrounding communities through the creation of jobs and economic growth,” said John Verity, who heads ExxonMobil Chemical Co.1

Making

this kind of big thing happen requires piecing together countless puzzle pieces and facilitating the collaboration of many different parties. It’s everything from navigating the environmental permitting pro-

cess to negotiating tax breaks from local schools to arranging state incentives such as grants from the Texas Enterprise Fund, and a whole lot more. Texas keeps moving the ball forward on these and numerous other fronts. WINS OF MANY KINDS Texas, of course, has a long history in petrochemicals and a famous reputation for taking on the world in a supersized way. That’s why it’s important to observe that the state’s economic development successes include wins of all sizes, not just massive-scale projects such as the Gulf Coast Ventures deal. Even more important, they go far beyond such sectors as energy. Booming industries in the Lone Star State also include advanced manufacturing, aerospace, life sciences, and information/computer technology, to name a few.

For

example, the “T” in Texas could just as easily stand for technology. On a recent trip by Gov. Greg Abbott to India, he dropped by Wipro’s Electronic City facility in Bengaluru and took part in that company’s announcement of a new Texas Technology Center in Plano. Wipro already has invested in Dallas and Houston in a big way, with some 1,400 people on the payroll. The Plano facility will be the company’s U.S. cyAREA DEVELOPMENT | Q2/2018

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GREETINGS: It is no secret Texans are enormously proud of our state. As Governor, I can attest we have a great deal to brag about. Our economy ranks as the 10th largest when compared to the nations of the world. We are the top state for job creation, with 1.84 million new jobs created over the last decade. The nation’s top CEOs again named Texas the Best State for Business for the 14th year in a row. And, as the No. 1 exporting state for the last 16 years, Texas consistently sets a pace no other state can match. Texans are also known for a pioneering spirit that drives us to do more, and for the belief that although bigger can be better, we know that is decidedly not the case for government regulation. Restrained government, lower taxes, smarter regulations, right-to-work laws, and litigation reform — these are the pro-growth economic policies that allow free enterprise to flourish and innovative entrepreneurs to thrive in Texas. In the Lone Star State, we do not settle for the status quo. We are always striving to ensure we remain the best state for business. Texas is committed to further investment in our diverse and growing job-ready workforce of 13.7 million, our well-connected robust infrastructure, and our best-in-class education as home to some of the nation’s leading research universities. And we will continue to enhance our already streamlined permitting processes and reasonable regulations to ensure companies are provided with the opportunity to grow here and to succeed here. Our business climate is not the sole reason Texas is growing faster than the rest of the nation. Executives who relocate to Texas cite the difference as “night and day” when it comes to the improved quality of life and good schools. Lower energy costs, together with lower land costs and fewer land-use restrictions, mean lower operating costs for businesses and a lower cost of living for their employees. Add to that no state income tax and vibrant recreational and cultural opportunities all across this great state — from our small towns to our biggest cities — it is no wonder both our population and our economy are booming. I am proud that Texas is home to 2.6 million small businesses, hundreds of publicly traded firms, and 50 Fortune 500 companies. But it is a big state. And there is always room for more. To find out why so many of the nation’s leading businesses and most recognized brands in the nation and in the world #GoBiglnTexas, I would like to personally invite you to come to Texas. Join us. Here in the Lone Star State, we want businesses to succeed. When you succeed, Texas succeeds. Greg Abbott

Governor State of Texas

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bersecurity center and advanced analytics hub, with 150 jobs at first and more in the future. Wipro eventually plans to employ 2,000 or more Texans in total. In making the latest announcement, Abidali Z. Neemuchwala, Wipro Limited CEO and executive director, said the technology center is “testament to the local talent pool and the robust support offered by the state to the technology sector.”2

The

steel manufacturing sector also was a topic of interest during that same India trip. The Governor and his team secured a memorandum of cooperation from JSW Group in Mumbai, outlining an expansion of the company’s JSW Steel (USA) Inc. operations in Baytown. The company suggested it could invest up to half a billion dollars there, the first $150 million of which is earmarked for a retrofit of the existing steel plate mill. A $3.4 million Texas Enterprise Fund grant helped pave the way for the company’s commitment, and “access to natural gas at extremely economical prices and the abundant availability of scrap steel in Texas make conditions very conducive for manufacturing through the electric arc furnace route,” according to the company’s Parth Jindal.3

Here

are just a few more recent examples of the diversity of the Lone Star State’s economic development successes: • Golden State Foods Corp. — Late last year, this company announced plans for a new manufacturing and distribution facility serving its Liquid Products Division in the Texas community of Burleson. Golden State Foods counts more than 125,000 restaurants and stores among its customers, and the new $70 million Texas project will create some 150 jobs. The company was enthusiastic about the local community’s investment in its workforce, and said it was pleased with the incentive support.4

• Gartner Inc. — This advisory firm knows technology, and it knew that the Texas community of Irving would be an ideal place to expand. North Texas has one of the largest technology labor pools in the country, and no one knows that better than Gartner, which was looking for the right place to add 800 tech jobs. The company acknowledged that its $12 million investment decision also was influenced by a $3.9 million grant from the Texas Enterprise Fund.5

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

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DALLAS

Building The Future Now

Dallas is the urban center of the countryâ&#x20AC;&#x2122;s most dynamic and diverse metropolitan economy, perfect for an increasingly connected world. DALLAS ECONOMIC DEVELOPMENT

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(214) 670-1685

WWW.DALLASECODEV.ORG

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• Ernst & Young — The global professional services firm already has enjoyed success in San Antonio, but plenty of places would have loved to land the firm’s newest client services delivery center. The deal, worth about $10 million in capital and 600 new jobs, went San Antonio’s way in November 2017. As Randy Cain, the firm’s vice chair and Southwest Region managing partner, observed at the time, “In reviewing other markets for this project, San Antonio’s workforce availability in cyber, tech, and financial services, plus the competitive cost of doing business, aligned with the project needs.”6 EARNING RECOGNITION With headlines such as those outlined above, no wonder the state keeps finding itself at or near the top of business rankings, pretty much year after year. Last year, for example, the state exported goods worth $264 billion to places all over the globe, led by Mexico, Canada, China, Brazil, and Korea. That made it America’s top exporter, but that distinction is nothing new — it’s been that way for 16 years in a row. Meanwhile, for 14 years in a row, Chief Executive has named Texas the “Best State for Business.”7

Forbes

chimed in recently with new distinctions, ranking Texas communities at the top of its “Best Cities for Jobs 2018.”8 The South as a whole is on the rise, the magazine reported, with the Dallas and Austin areas leading the way. The magazine reported that Dallas logged double-digit percentage job growth in just about every sector measured, “from information to construction, energy, ﬁnance, and professional and business services.” It summed up the Dallas metro area by calling it “a great value proposition, with affordable housing, a favorable regulatory climate, low taxes, and an increasing array of cultural amenities beyond the Dallas Cowboys.” The Forbes study observed that while most people recognize Austin as a technology capital, its job growth is a whole lot more diverse than one might expect. Professional and business services are especially strong there, according to Forbes, adding that population growth has been stellar: “The metro area last year had the stron30

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gest population increase and rate of domestic in-migration of any in the country with a population over a million.” ATTRACTING BUSINESS Economic development incentives are, of course, central to a lot of big deals. The companies that choose to expand in Texas are often pretty vocal about their appreciation for the assistance they receive. The Texas Enterprise Fund, in particular, is widely regarded as one of the nation’s most impactful deal-closing programs. Created in 2003, it’s an option for companies thinking of locating or expanding in Texas that also have at least one viable location option in another state. The project must promise at least 75 new jobs (or 25 if it’s in a rural area), with pay that’s at or above the local average. Through the years, the fund has supported roughly 150 projects and awarded well over $600 million in grants that have helped create more than 84,000 jobs. That’s just the start (or because it’s a deal-closing fund, maybe it’s more accurate to call it the ﬁnish). Other popular programs include the Texas Enterprise Zone Program, which offers refunds on the state sales and use tax to qualiﬁed projects, and the Skills Development Fund, which helps with workforce competitiveness.

Beyond

incentives, the tax climate in Texas has helped the state win business. To begin with, there’s no corporate or personal income tax. And although there’s a sales tax, there are generous exemptions for a lot of different business functions, from manufacturing machinery and R&D materials to software and equipment. The franchise tax was cut signiﬁcantly a few years ago, and there are exemptions for which some businesses may qualify. The state has in recent years also tackled another area of interest to business — the legal climate. In particular, a series of tort reforms have helped companies reduce their insurance premiums and save their funds for growing the business. Reforms aimed at healthcare liabilities, meanwhile, have attracted more physicians to Texas, which has a positive quality-of-life impact. THE WORKFORCE & QUALITY OF LIFE Texas has also earned positive attention for its skilled workforce and overall quality of life. For starters, the Texas workforce is big. At more than 13 million workers, it’s the nation’s secondlargest collection of civilian workers. There are

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

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Spirit

RESOURCEFUL

Spirit of Industry Wagner Noël Performing Arts Center

Odessa College

Oil and Gas

Standard Sales

University of Texas of the Permian Basin

Located in the largest single source of oil and gas deposits in the United States, Odessa has long been known for its rich resources. Odessa’s diversified economy is a focal point for product distribution for many national and international companies outside of the oil and gas industry. Odessa proudly boasts world-class cultural and recreational opportunities as well as healthcare facilities and transportation often associated with larger cities. Financial incentives, quality site selection and coordination, a qualified workforce, easy access to foreign markets, and our greatest resource, our community, make it easy to do business in Odessa, Texas. Odessa has proven to be ideal for business. Come and discover the return our resources can provide for you. If you’re looking to expand your business or need a new location, contact the Economic Development Department at 432-333-7880.

Economic Development | www.odessatex.com

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exceptional resources for ensuring that those workers bring with them the required skills to get the job done. There are more than three dozen public universities and upper-division centers plus 50 community college districts, and many of the institutions land near the top of the educational rankings. For companies with speciﬁc training needs, the Skills Development Fund supports customized workforce training.

Texas

universities are home to a highly regarded population of researchers, and the state is working to boost that resource, too. The Governor’s University Research Initiative, launched a couple of years ago, is a matching grant program intended to help the state’s institutions attract the world’s best researchers. The state, meanwhile, has identified a need to increase the percentage of its residents that earn college degrees. It’s a significant issue in many states and requires some lofty and out-ofthe-box thinking to make a difference. The Texas response, launched in 2015, is called 60x30TX, named for its target of ensuring that by 2030 at least 60 percent of the population ages 25 to 34 hold a postsecondary certificate or degree. And quality of life is much more than just icing on the cake when it comes to boosting businesses and prosperity in Texas. The state is known for both vibrant cities and friendly rural lifestyles, with more than 600 miles of coastline and more than 90 state parks. Sports fans cheer on multiple pro teams and college powerhouses.

Adding

to the lifestyle picture is healthy diversity, as Texas is one of the nation’s more racially and ethnically diverse places. More than 160 languages can be heard there, and a third of the state’s population speaks something other than English at home. What you ﬁnd a lot less of in Texas are costs. The high quality of life doesn’t carry a high price tag. Technology companies, in particular, notice the difference when they’re comparing options between Texas and Silicon Valley. Taxes are low in Texas, and affordable housing is within reach.

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http://news.exxonmobil.com/press-release/sabic-and-exxonmobil-advance-gulf-coast-projectcreation-new-joint-venture https://businessintexas.com/news/governor-abbott-announces-launch-new-wipro-technologycenter-plano 3 https://businessintexas.com/news/governor-abbott-closes-landmark-deal-jsw-steel-usa-incdevelop-local-steel-industry-baytown 4 http://www.fortworthbusiness.com/news/burleson-lands-golden-state-foods-facility-bringingjobs-million-investment/article_5017a21c-d9e9-11e7-b7d0-c772a998dfbc.html 5 https://gov.texas.gov/news/post/governor-abbott-announces-new-gartner-inc.-expansion-in-irving 6 https://businessintexas.com/news/governor-abbott-announces-selection-san-antonio-new-ernstyoung-client-service-delivery-center 7 https://chiefexecutive.net/best-worst-states-business-2018/ 8 https://www.forbes.com/sites/joelkotkin/2018/05/07/best-cities-for-jobs-2018-dallas-austinnashville/#4b67055a1f0c 2

Texas Today Sponsors City of Dallas The City of Dallas Office of Economic Development supports existing and prospective businesses and development opportunities via a wide range of policies and programs that sustain and grow Dallas. Courtney Pogue, Director City of Dallas Office of Economic Development 1500 Marilla Street, Room 5CS Dallas, TX 75201 214-670-1685 ecodevinfo@dallascityhall.com www.dallasecodev.org Odessa Development Corporation Odessa, Texas, is located on Interstate 20 in the heart of the Permian Basin of West Texas. Oil and gas are the backbone of its local economy, and the area is known as one of the major oilfields of the world. Wesley Burnett, Director of Economic Development Odessa Development Corporation 700 N Grant Avenue Odessa, TX 79761 432-333-7880 WBurnett@odessaecodev.com odessatex.com Texas Economic Development Corporation Low taxes, global access, and competitive incentives — these are just a few reasons companies like Boeing, Charles Schwab, Hulu, and Stanley Black & Decker choose to Go Big in Texas. Add to that world-class infrastructure and the second-largest workforce, and it’s no wonder Texas continues to lead the nation in job creation. Robert Allen, President and CEO Texas Economic Development Corporation 1005 Congress Ave., Ste. 910 Austin, TX 78701 512-981-6736 robert@businessintexas.com www.businessintexas.com www.GoBigInTexas.com

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GOVERNMENT POLICY/ BUSINESS CLIMATE

U.S. Tax Reform: A Game-Changer for Manufacturers The new tax law will provide U.S. manufacturers with additional cash, but they must still align their investment decisions with corporate growth strategies. By John Livingstone, U.S. Industrial Products Tax Leader; and Rajiv Jetli, U.S. Advisory Principal; PwC

How will companies spend their tax savings?

Return money to shareholders

Pay for acquisitions

Invest in capital expenditures

Invest in human capital

ever before in the last three decades has the United States been presented with a more significant piece of tax reform legislation promising to improve the business environment for manufacturing companies. After all the speculation of how this will affect the industry, the bottom line is that the new tax reform will, in fact, positively impact the U.S. manufacturing sector. This tax reform was intended to improve U.S. competitiveness and productivity through lower corporate tax rates, easier access to foreign cash with a modernized international tax system, and favorable expensing of capital acquisitions. In light of the new law, it is critical that manufacturing companies reassess their business models and look at how recent legislative changes may affect their operations. The next five years provide a unique opportunity for growth among manufacturing companies. Again, the key term here is growth. So, with the additional cash, how can manufacturers seize this opportunity? We recently published a report that tackles this very question. Our study takes

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a look at the business implications of this new tax reform,1 and we uncovered four growth opportunities for manufacturers to consider: 1. Return Money to Shareholders The drop in the corporate tax rate from 35 percent to 21 percent brings the U.S. corporate tax rate more in line with other industrial nations, increasing U.S. competitiveness in world markets. Manufacturers will also benefit from the move to a territorial system in which non-U.S. earnings are generally not taxed when repatriated to the United States. The ability to access foreign cash more tax efficiently in the future has created a stronger environment for investment in U.S. manufacturing activities. All of this adds up to stronger balance sheets, where management and boards alike will be faced with decisions to invest in R&D or return money to shareholders. 2. Invest in Capital Expenditures The new expense provision states that businesses which make capital investments can take a 100 percent deduction for the next five years, greatly reducing after-tax cost. This will benefit manufacturers, especially those that have not yet invested in new technologies in recent years. The expense provision provides them a unique opportunity to modernize operations over the next five years by buying state-of-the-art equipment, boosting IT infrastructure, and expanding digitization of manufacturing facilities and supply chains.

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However, we would like to raise caution for those companies that may rush to complete purchases to take advantage of the 100 percent depreciation rate. We understand that robots are the hot ticket items among manufacturers, but it may not be the best choice in terms of driving overall strategic goals or productivity growth. With so many possible options, it’s important to make choices within the context of your overall strategy to maximize impact. Supply chains will also be affected by several provisions in the tax bill. Previously, it was relatively simple to analyze the implications of supply chain options by factoring in the tax rates of various countries, but the following three new provisions are making the computation less straightforward: • The new tax on global intangible low-taxed income (GILTI) effectively imposes a minimum level of tax on the foreign profits of U.S. multinationals, which is intended to discourage U.S. companies from moving value-generating activities outside the United States, particularly to low-tax jurisdictions. It may also discourage some companies from moving future assets offshore. • Foreign derived intangible income (FDII) provides a tax benefit to companies in high-margin businesses that export goods, license intangibles, and provide services from the United States. There are some questions as to the future of the FDII provision, which may violate the terms of our treaty with the World Trade Organization and could cause retaliatory actions by the EU. Manufacturers will need to take these issues into consideration before making long-term supply chain decisions based on the FDII’s potential benefit. • The base erosion and anti-avoidance tax (BEAT) is a significant new cost for many non-U.S. companies with operations in the United States and also for many U.S.headquartered companies with foreign affiliates. The tax will reduce the ability of large multinationals to shift income to their affiliates in lower-tax countries through the use of cross-border payments. Industrial companies, especially those that are foreign-based, may look to offset the higher tax burden by improving their operations or changing their legal entity structure. The opportunity to expense 100 percent of all capital investments will create a surge in demand for manufacturers of capital equipment, but this higher demand has the potential to cause supply-demand imbalances and supply bottlenecks. Supply chain executives may need to reassess their value chains to ensure they do not lose revenue. 3. Pay for Acquisitions We expect that the tax reform will have a positive effect on deal activity across the manufacturing sector. The lower corporate tax rate and earnings repatriation provisions, coupled with companies being able to fully expense new depreciable assets and used property purchased from an unrelated buyer, will boost asset acquisitions. Companies may also be more inclined to divest non-core assets, as lower rates will ease the tax burden on disposals. One constraining factor to this positive deal-making envi-

ronment is the provision that limits the business debt interest deduction to 30 percent of EBITDA (earnings before interest, taxes, depreciation, and amortization) for the next five years and 30 percent of EBIT (earnings before interest and taxes) in the following years. Now, the limitations on corporate interest expense deductibility will stretch the ability of some companies to finance deals with U.S. debt, making it more likely they will consider non-U.S. borrowing to finance transactions. As companies look to foreign markets to raise debt to optimize their capital structures, global treasury will quickly rise to the top of the list of critical business functions. Overall, U.S. tax reform has provided the perfect catalyst for increasing M&A activity domestically as well as making the United States a more attractive market for other dominant global players, including Europe and China. 4. Invest in Human Capital Employers should begin to evaluate the impact of the tax reform and how the new law will reshape the landscape of employee compensation and benefit programs, such as the tax treatment of employee fringe benefits and the deductibility of certain compensation. The Tax Cuts and Jobs Act is allowing U.S. companies until mid-September to take advantage of the higher corporate tax rate when deducting their defined benefit pension plan contributions. This can include, but is not limited to, cash from operations, a borrow-to-fund strategy, or contributions of employer treasury stock, company debt, or company real property. It may also be an optimal time for those manufacturing companies that repatriate offshore cash reserves and have partially unfunded pensions to close the funding gap. The new law is also providing an opportunity for companies to consider creating deduction opportunities in ways such as expanding pension plans to fund retiree medical expenses. Another significant change from the tax bill is executive compensation. Getting away from longstanding rules, compensation based on performance will now be subject to a deduction cap of $1 million, which may result in the use of other incentives such as stock options and deferred compensation for covered employees as well as higher base salaries.

In Sum Tax reform is a catalyst for change where manufacturers can now shift their focus from cost reduction to growth. While not all companies will benefit equally, most manufacturers will benefit substantially from the tax reform bill. But just because the bill lowers corporate tax rates, provides easier access to foreign cash, and allows for the favorable expensing of capital acquisitions, manufacturers should not hastily make investment decisions just to take advantage of these elements. Investment considerations should align with corporate growth strategies and consider all facets of the business. n

https://www.pwc.com/us/en/industries/industrial-products/library/manufacturing-tax-reform.html

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SUSTAINABILITY

When “Green” Turns to Gold Incentives can help companies improve the ROI of environmental sustainability initiatives. By Dominick Brook, Senior Manager, Tax/Indirect Tax and Global Sustainability Tax Leader; and Akshay Honnatti, Senior Manager, Sustainability Tax; Ernst & Young LLP

ompanies are setting increasingly ambitious goals in their environmental efforts. It is a shift driven by investor and stakeholder demands for environmental sustainability and social responsibility, as well as governmental regulations and environmental taxes. Conventional wisdom has been that environmental efforts increase the cost of doing business. In reality, the sources of funding are increasing, along with diverse types of financial incentives, giving organizations worldwide opportunities to offset the cost and increase the ROI of sustainability strategies. Incentives are varied. Depending on the nature of the investment, they may take the form of grants; tax abatements or deductions; or utility discounts or rebates. Governments are taking a strong interest in environmentally sustainable economic development. Increasingly, agencies and tax authorities are offering incentives for organizations to invest in sustainable projects and technologies. Similarly, utility providers offer energy efficiency incentives to lower production demand and alleviate stress on the grid.

Federal Tax Incentives Recent congressional action has extended a wide range of energy efficiency tax credits and deductions. One such incentive is the Internal Revenue Code (IRC) Section 179D deduction for energy-efficient commercial buildings. The Bipartisan Budget Act of 2018 (signed Feb. 9, 2018) extended the law to apply to eligible property placed in service from Jan. 1, 2006, through Dec. 31, 2017. Under Section 179D, owners of commercial buildings can take a deduction for the cost of making certain energy-saving improvements. These may involve interior lighting; heating, ventilation, and cooling systems; hot water systems; or the building envelope (the “shell” separating indoors from outdoors). The deduction varies, from $0.30 to $1.80 per square foot of the building, up to the total cost of the property placed in service. The Bipartisan Budget Act also extended many of the tax credits provided by IRC Section 48. Section 48 provides a tax credit of either 30 percent or 10 percent of the eligible basis in a project’s first year for investment in qualifying renewable energy projects. Qualifying facilities include solar, geothermal, fuel cells, biomass, microturbines, combined heat and power systems, small wind, large wind, and geothermal heat pumps. These tax credits have been extended to qualifying property that is under construction before Jan, 1, 2022. The Section 48 investment tax credit presents taxpayers with an opportunity for significant up-front cost savings on capital-intensive projects that lead to reduced expenses in future years as a result of energy reduction and/or renewable energy generation.

Utility Incentives In recent years, many utilities have been required to offer expansive energy efficiency or renewable energy incentives with each rate increase negotiation. Incentives may be negotiated, prescriptive, or performance-based, depending on the utility provider and state. Certain utilities allow customers to negotiate utility rates surrounding energy-efficient installations, construction, or building upgrades. For example, a customer may negotiate for a reduced set cost for the natural gas used by a cogenera-

AREA DEVELOPMENT

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ings. The LEED rating system is a voluntary, consensustion (combined heat and power) system within a facility. In based national standard for high-performance, sustainable addition, utilities may provide incentives-related demand buildings. LEED-related sustainability efforts help reduce response, whereby reduced rates or cash payments may be energy consumption with new construction and retrofits provided to customers who are willing to curtail their usage of existing buildings to meet certification standards. Orgaof electricity when there is particularly high demand. nizations can use various incentives at the local, state, and Under a prescriptive incentive program, a utility company offers rebates to customers for the use of specified energy-efficient equipment (e.g., efficient lighting, retro-commissioning, refrigeration, HVAC units, compressed air systems, data center equipment, lab equipment, and food service equipment). For example, AEP Ohio offers rebates of $0.31 per watt reduced when upgrading an area with Energy Star or LED lighting. Also, Savings by Design, a program offered by VIRGINIAâ&#x20AC;&#x2122;S ï¿½ND OF OPPORTUNITY several California utilities â&#x20AC;&#x201D; PG&E, SCE, SDG&E, SoCal Gas, and the Sacramento Municipal Utility District France-based OVH selected Fauquier County as its North (SMUD) â&#x20AC;&#x201D; authorizes building own$PHULFDQ KHDGTXDUWHUV DQG Ã&#x20AC; UVW 8 6 GDWD FHQWHU VLWH 9LUJLQLD ers with financial incentives to offer RIÃ&#x20AC; FLDOV SLFNHG 9LQW +LOO %XVLQHVV 3DUN IRU D VWDWH RI WKH DUW incentives to business owners (up to $150,000 per project) and professional YHWHUDQV FDUH FHQWHU design assistance. Fauquier offers a business climate that combines natural beauA performance-based program ty, historic towns, and UHDG\ GHYHORSPHQW VLWHV with access to requires the utility company to reimburse or credit a customer for meet:DVKLQJWRQ ' & 1RUWKHUQ 9LUJLQLD DQG 'XOOHV $LUSRUW 7KH ing certain energy-efficiency or reCounty is â&#x20AC;&#x153;Technology Forward Âµ \HW UHVSOHQGHQW ZLWK KLVWRU\ newable-energy targets. For example, ORYHO\ YLVWDV ZLQH DQG KRUVHV under its solar program, New Mexico energy provider PNM will purchase 2QH RI WKH UHDVRQV FRPSDQLHV DQG JRYHUQPHQW DJHQFLHV Ã&#x20AC; QG Renewable Energy Credits (RECs) Fauquier attractive is the quality of life and the commitment produced by a customerâ&#x20AC;&#x2122;s PV system WR HQYLURQPHQWDOO\ UHVSRQVLEOH GHYHORSPHQW )DXTXLHU &RXQ at a rate of $0.0025 per kilowatt hour ty created incentive-rich Green Development Zones in 2017, (kWh). The REC payment is credited against the customerâ&#x20AC;&#x2122;s utility bill. WKH Ã&#x20AC; UVW 9LUJLQLD FRXQW\ WR GR VR &RPH WDNH DGYDQWDJH RI Generally, utility incentives are our EXVLQHVV IULHQGO\ JRYHUQPHQW, diverse investment inprospective and must be secured FHQWLYHV VWURQJ FRPPLWPHQW WR RXU H[LVWLQJ EXVLQHVVHV DQG before a project begins. It is imORFDOO\ EDVHG ZRUNIRUFH GHYHORSPHQW VHUYLFHV You could not portant to identify and evaluate Ã&#x20AC; QG D EHWWHU ODQGLQJ VSRW IRU \RXU EXVLQHVV available incentives and submit the necessary applications in advance CONTACT DEPARTMENT OF ECONOMIC DEVELOPMENT of the project.

FAUQUIER COUNTY

Miles Friedman, Director

Green Buildings In addition to government and utility incentives, businesses can make use of the framework provided by Leadership in Energy and Environmental Design (LEED) to achieve specific environmental sustainability metrics in the construction of build-

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Green is Good for Economic Development

By Miles Friedman, Director of Economic Development, Fauquier County, Virginia Last year, Virginia’s state government passed a law that permits communities to provide incentives for green and sustainable development. Fauquier County was among the first to adopt its own plan based on the law. Why? Simply put, backing businesses that support sustainability is sound economic development. The concept of so-called “green incentives” is not new. Local development strategies in the western U.S. embrace and even rely upon “green” development practices. Many communities find that one fuels the other. Can this approach work in the East? Why not? Backing environmentally mindful business development, as demonstrated in environmentally conscious states, presents real opportunities for new investment and can generate jobs and tax revenues. Moreover, public policies that favor good stewardship of the environment have proven attractive to all kinds of firms as they assess their location options. One impediment to the adoption of progressive environmental practices is the perception that the initial costs of green practices are high. Even though the startup costs can seem daunting, recent data tend to suggest that such practices are financially advantageous long-term. Virginia’s green incentives aren’t just for companies focused 100 percent on sustainability, such as solar panel manufacturers. They’re available to any company that incorporates green practices into their business processes. Incentives might include regulatory flexibility, fee waivers, and select tax reimbursements. For the firms that are not strictly in the environment business, state and local government can help soften the cost of investing in practices such as harvesting rainwater, tapping solar energy, or constructing energy-efficient buildings. Thus, for example, storm water management — often a challenge in site development — can be turned around to “feed” the harvested rainwater supply and lessen dependence on groundwater. This same approach can be used to help “seed” and promote the growth of the environmental industry itself, by offering financial incentives to companies that are inventing and selling practices and products that Pretium at Vint Hill, class A office space built contribute to environmentally friendly business developon a decommissioned army base, is located in New Baltimore — one of Fauquier County’s ment. This encourages both economic activity and good nine service districts in which green developstewardship of our beautiful country’s natural assets. ment incentives are now offered.

federal levels to help offset the costs of obtaining LEED certification. These benefits can significantly decrease the cost of financing a project and can yield tax savings. The Nevada Governor’s Office of Energy administers the Green Building Tax Abatement Program, offering abatements of 25 percent –35 percent with terms from 5–10 years for buildings with LEED or Green Globes certifications. The amount and duration of the abatement is dependent on the level of certification achieved as well as the energy efficiency of the building. Local jurisdictions also offer significant property tax incentives for green buildings. For example, Cincinnati offers 75 percent tax abatements for 8–15 years for commercial new construction and renovations. Similarly, Baltimore, Carroll, Howard, and Montgomery counties in Maryland offer property tax credits for investments in LEED-certified buildings. For instance, Montgomery County grants a tax credit of up to 75 percent of the property tax assessed on a LEED-certified platinum building for up to five years.

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Collaboration Is Key With sustainability as well as cost-reduction strategies being such an important issue for company stakeholders, financial incentives must be well integrated into a company’s sustainability blueprint. By stacking incentives offered by utilities and federal, state, and local governments, companies can drive down the upfront costs of sustainable building strategies and improve the overall return on investment. To secure these valuable financial incentives, companies must coordinate across finance, tax, real estate, and sustainability departments when considering sustainability initiatives or large-scale capital projects. For any organization, “going green” can make strong business sense in terms of the financial benefits. n

The views expressed are those of the authors and do not necessarily reflect the views of Ernst & Young LLP or any member firm of the global EY organization. for free site information, visit us online at www.areadevelopment.com

6/5/18 3:00 PM

2018

GOLD& SILVER SHOVEL AWARDS

By Steve Kaelble

IT WAS A YEAR for some of the BIGGEST DEALS ever done. In terms of JOBS CREATED ,

few single projects in history can match the 13,000 promised by the electronics manufacturer Foxconn Technology Group, which in July announced plans to make LCD screens at a greenfield site in southeastern Wisconsin. It’s a HEFTY JOB COUNT , and an IMPRESSIVE INVESTMENT in dollars, too — $10 billion.

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special

TEXAS Company

report

GOLD SHOVEL WINNER City/County

N/E

# Jobs

Inv. Amt.

NTT Data Corp. Plano E 6,377 $28.8 million Nutri Biotech USA

$100 million

Supplements

USAA San Antonio E 1,500 $70 million

Insurance/ Financial Services

United Parcel Services Arlington N 1,400 $22.7 million

Logistics/ Distribution

C3 McGregor E 1,200 $1.35 million

Customer Care Center

ExxonMobil - SABIC

Garland

1,600

Industry IT Services/ Hdqtrs.

Portland

600

$10 billion

Pasadena

$820 million

$720 million

Fertilizer

100

$450 million

Refinery

Finisar Corp. Sherman N 500 $390 million

Lasers (VCSELs)

Valero Energy Corp. and Magellan Midstream Partners JV Agrium

Borger

MMEX Resources Corp. Fort Stockton

Represents a state/local sponsor

(pop. 28.30 million) States with populations 12+ million

CALIFORNIA Company General Motors

Ethylene Distribution

SILVER SHOVEL WINNER City/County San Francisco

N/E # Jobs E

1,163

Inv. Amt.

Industry

$14 million

Automotive

Proterra

Burlingame

432

$85 million

Automotive

Meggitt, Inc.

San Diego

188

$17 million

Aerospace

NuVasive, Inc. San Diego E 245 $36 million

Medical Devices

Motor Vehicle Sacramento E 100 $17.8 million Software Software Corp. Development Boehringer Ingelheim Fremont, Inc.

Fremont

258

$122 million Biotechnology

York, 2,000 in Ohio, and several other projects with job counts between 1,000 and 2,000. There was a promise of nearly 2,500 Pluralsight online education IT jobs in Utah, and a 2,000 computer programming jobs at DXC in New Orleans. And India-based Infosys plans for more than 2,000 jobs each in Indianapolis and North Carolina. In terms of big-dollar deals, the Foxconn project was not the only $10 billion deal. That distinction was shared by the ExxonMobil SABIC project in Texas. To be sure, energy-related projects often carry large price tags. Another example is the nation’s biggest wind farm, announced by Invenergy LLC, General Electric, and American Electric Power. Worth $4.5 billion, it’s under construction in the Oklahoma panhandle and could provide power for more than a million utility customers. In all, there were a dozen projects last year with investments exceeding a billion dollars.

POPULATION: 12+ Million Gold Shovel — Texas

The latest list of Gold Shovel Award accomplishments is filled with Texas-size headlines announced last year. Leading Hulu, LLC Santa E 410 $109 million Sales Monica Management the way was the potential for more than Food Service Partners Richmond E 222 $8.5 million Food 6,000 new jobs as Japanese-owned NTT Processing Data Services makes a move to a new Schlosser Forge Co. Rancho E 86 $20 million Aircraft Cucamonga headquarters location in Plano. Another 1,600 jobs will be created through expan(pop. 39.54 million) sion at the R&D and production facilities States with populations 12+ million that Korea-based Nutribiotech USA maintains in Garland. Add to that a total of 4,000 more jobs at three diverse developments: USAA’s financial services growth in San Antonio, That’s a grand prize, to be sure, but there were dozens a new UPS shipping hub in Arlington, and expansion at a of announcements across multiple states that brought C3 customer contact center in with them the promise of a McGregor. four-figure increase in jobs. NTT To be sure, there were Data Corp. says nearly 6,400 also projects related to the jobs are on the way in Texas. traditional Texan strengths Amazon said there would be in petroleum and chemical 2,700 created in Kentucky, more production. These tend to than 4,000 at two sites in New Initiative Foods Sanger E 150 $25 million

Food Processing

GOLD& SILVER SHOVEL AWARDS

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Best State for Business

Governorâ&#x20AC;&#x2122;s Cup Winner For the 6th Year in a Row Site Selection Magazine 2017

#1 for Job Creation By Foreign and Domestic Investment IBM Global Location Trends Report 2017

2nd largest civilian workforce in America 10 Texas universities are top-ranked by U.S. News & World Report 2018 public universities and upper-division centers keep Texas on top

50 community college districts fuel Texasâ&#x20AC;&#x2122; talent pipeline

No corporate income income tax tax No Personal income income tax tax No statewide property tax property tax

32 Miles of coastline

@GoBigInTexas AREA0801.indd 1

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FLORIDA Company

SILVER SHOVEL WINNER City/County

N/E

# Jobs

Inv. Amt.

Industry

KPMG Orlando N 330 $400 million

Financial/ Professional Services

Chewy.com Ocala N 600 $30 million

Logistics/ Distribution

Modernizing Medicine Boca Raton E 838 $15 million

Information Technology

Sixt Maverick Boat Group Cosentino

Ft. Lauderdale

300

$10 million

Headquarters

Ft. Pierce

100

$7 million

Boatbuilding

Coral Gables

$1 million

Headquarters

MetLife Tampa E 430 $25 million

Insurance/ Professional Services

Gartner Ft. Meyers E 600 $20 million

Information Technology

Brown & Brown Daytona E 600 $25 million Beach

Financial/ Professional Services

Cross City Lumber, LLC

Cross City

Represents a state/local sponsor

$10 million

Lumber Mill

(pop. 20.9 million) States with populations 12+ million

be very big-ticket items, such as the $10 billion Exxon-Mobil SABIC venture in Portland, an MMEX Resources Corp. refinery in Fort Stockton, and an expansion of the Agrium Inc. fertilizer facility in Borger. But there was also room for technologyrelated news, including the plan for Finisar Corp. to expand by 500 jobs in optical communications components manufacturing in Sherman.

Silver Shovel — California ILLINOIS Company

SILVER SHOVEL WINNER City/County

N/E

# Jobs

Inv. Amt.

Industry

Koch Foods Franklin Park E 200 $20 million

Food Processing

Fresenius Kabi

Melrose Park

250

$250 million

Pharmaceuticals

Amazon

Waukegan & Crest Hill

900

$45 million

E-Commerce Fulfillment

Nucor Steel

Bourbonnais

$180 million

Steel

Joliet

600

$36 million

Telecom

University Park

400

$40 million

Paper

General Mills Wilmington N 200 $55 million

Food Processing

Communication Test Design, Inc. Georgia Pacific

Flex-N-Gate

Chicago

286

$30 million

Automotive

Julian Electric

Lockport

290

$16 million

Electric Parts

Bolingbrook

250

$24 million

Distribution

Best Buy

(pop. 12.83 million) States with populations 12+ million

NEW YORK

SILVER SHOVEL WINNER

Company

City/County

N/E

# Jobs

Inv. Amt.

Amazon

Staten Island, NYC

2,250

$100 million

E-Commerce Fulfillment

Industry

Amazon

Manhattan, NYC

2,000

$55 million

E-Commerce Offices

Strategic Financial Amherst N 1,547 $2.1 million Solutions Tesla - Solar City Mastercard

Buffalo

1,460

N/A

Solar Cells

Manhattan, E 473 N/A NYC

Financial Services

EY Manhattan, N 1,152 $279.8 million NYC Spotify

Financial Services

Manhattan, NYC

1,050

Batavia

230

HP Hood

$200 million

Financial/ Professional Services Music Services

$206 million Dairy Products

The Nature’s Bounty Co. Islip E 157 $142 million

Vitamins/ Supplements

Imperium3 Endicott N 232 $130 million

Lithium Ion Batteries

(pop. 19.85 million) States with populations 12+ million

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Companies are expanding all over the Golden State, at a rate worthy of a Silver Shovel honor. The biggest project, and one of the most futuristic, involves General Motors in San Francisco. The company is beefing up its Cruise Automation operation, which is focused on self-driving vehicle design, and the expansion is projected to add approximately 1,100 new jobs. Also, on the topic of forward-thinking automotive, Proterra is expanding its electric bus operations in Burlingame. Other traditionally prominent California industries were well represented on the list of last year’s expansions, too. Two deals were in the aerospace sector, composite engine component maker Meggitt in San Diego and component maker Schlosser Forge Co. in Rancho Cucamonga. The state’s massive foodrelated industry grabbed some of the headlines, including expansion at babyfood-maker Initiative Foods in Sanger, which has been rebuilding after a fire, and growth in Richmond at Food Service Partners, which runs central production kitchens for healthcare providers. The state also boasted projects in biotech, medical devices, and software. And not to leave out entertainment, streaming service Hulu is growing at its Santa Monica base.

Silver Shovel — Florida Florida’s Silver Shovel performance was driven by a solid series of expansions and

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

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special

NORTH CAROLINA

report

GOLD SHOVEL WINNER

Company

City/County

N/E

# Jobs

Inv. Amt.

Allstate

Mecklenburg Cty.

2,250

$22.6 million

Insurance

Industry

Infosys Wake Cty. N 2,000 $8.7 million

Information Technology

Credit Suisse Wake Cty. N 1,200 $65 million

Financial Services

Triangle Tyre Co.

Edgecombe Cty.

$580 million

Automotive

AXA

Mecklenburg E 550 $18 million Cty.

Financial Services

Fresenius Kabi EGGER

Wilson Cty.

800

445

$150 million Pharmaceuticals

Davidson N 770 $700 million Cty.

Wood Products

Pilgrim’s Pride Lee Cty. E 350 $117 million

Food Processing

Corning Durham Cty. E 317 $189 million

Pharmaceutical Packaging

of development covering a number of other industries, too. Communications Test Design — which tests and repairs electronics — is growing in Joliet. In paper products, Georgia Pacific will create 400 jobs in University Park. In the food processing sector, Koch Foods is growing its Franklin Park presence. Fresenius Kabi announced plans to significantly grow its pharmaceutical manufacturing operation in Melrose Park. Other projects ranged from steel to automotive components to electric parts.

Silver Shovel — New York

Keeping up with the expanding and evolving shopping needs of New Yorkers (pop. 10.27 million) puts Amazon into a near-constant growth Represents a state/local sponsor States with populations 8+ to 12 million mode, which helped contribute to the state’s Silver Shovel accomplishments. Two Amazon projects announced in 2017 led the list with 2,000 or more jobs each, including a Staten a few new location decisions. Leading the way was ModIsland fulfillment center and a major office on West 33rd ernizing Medicine, a medical records company whose Street in Manhattan. expansion will bring more than 800 new jobs to Boca Several other projects also carried four-figure job proRaton. A trio of projects promised 600 jobs each: Chewy. jections. Spotify’s headquarters’ move to the World Trade com’s new pet products fulfillment center in Ocala, GartCenter makes room for more hires, as does the move of ner’s expanding IT consulting presence in Fort Myers, Ernst & Young’s U.S. headquarters from Times Square to and Brown & Brown’s new insurance headquarters facility Manhattan’s west side. At Strategic Financial Solutions’ in Daytona Beach. Amherst office in the Buffalo area, more than 1,500 comThe state added more headquarters projects in Fort pany reps will help consumers get a handle on their debt. Lauderdale (Sixt Rent a Car) and Coral Gables (CosenAlso, in the Buffalo area, Tesla’s SolarCity is now protino, which serves the architecture and design indusducing its solar roof tiles. Other significant manufacturing try). KPMG will add jobs in professional services, and announcements last year involved lithium ion batteries, MetLife in insurance. And it wouldn’t be Florida without nutritional supplements and dairy products. a boat-related project — the expansion at Maverick Boat Group’s manufacturing operation in Fort Pierce. Clearwater Paper Corp.

Cleveland E 180 $330 million Cty.

Paper Products

Silver Shovel — Illinois

POPULATION: 8+ Million to 12 Million Gold Shovel — North Carolina

As in many states, Amazon led the way in Illinois’ route to a Silver Shovel, with separate projects in Waukegan and Crest Hill. Best Buy, meanwhile, also had a distribution announcement in Bolingbrook, while General Mills announced plans to distribute its cereals and other products from a distribution center in Wilmington. The state enjoyed a diversity

The job market in Charlotte is in good hands with Allstate, thanks to the insurer’s announcement that it plans to expand its operations center. The plan would add 2,250 jobs to the 1,400 already there and is one of the reasons North Carolina landed a Gold Shovel recognition. Credit Suisse, meanwhile, will expand its financial services operations in the Research

GOLD& SILVER SHOVEL AWARDS

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EMBRACE THE THRILL North Carolina is home to 22,000 STEM graduates RGT|[GCT CPF VJG NCTIGUV TGUGCTEJ RCTM KP 0QTVJ #OGTKEC 6JKU KU YJGTG C PGY MKPF QH GPGTI[ ICKPU HQTEG CPF FKUEQXGT[ OQXGU DWUKPGUU HQTYCTF HCUVGT

E C O N O M I C D E V E L O P M E N T PA R T N E R S H I P O F N O R T H C A R O L I N A

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special

GEORGIA Company ASOS Luxottica Group NA

report

SILVER SHOVEL WINNER City/County

N/E # Jobs

Inv. Amt.

Industry

Union City

1,620

$42 million

E-Commerce Fulfillment

McDonough

1,000

$78 million

Eyewear

Pratt and Whitney Columbus E 510 $386 million

Aircraft Engines

Accenture

$2 million

Shared Services Data Center

Switch

Atlanta

888

Lithia Springs

$1 billion

Macon

211

$400 million

Amazon

Jefferson

1,000

Computer Generated Solutions Inc.

Norcross

850

$1.3 million

Call Center

OneTrust

Atlanta

500

$20 million

Software Development

Nestle-Purina

Hartwell

240

$320 million

Pet Foods

Irving Consumer Products Ltd.

N/A

Consumer Paper Products E-Commerce Fulfillment

(pop. 10.43 million) States with populations 8+ to 12 million

MICHIGAN Company Amazon Centria Healthcare Amazon

SILVER SHOVEL WINNER City/County

N/E

# Jobs

Romulus

1,600

$140 million

Inv. Amt.

E-Commerce Fulfillment

Industry

Farmington Hills

1,200

$10 million

Healthcare Hdqtrs.

Shelby N 1,025 $40 million Charter Twp.

E-Commerce Fulfillment

Ford Motor Co.

Flat Rock

700

$1.2 billion

Automotive

Ford Motor Co.

Livonia

300

$350 million

Automotive

Williams International

Pontiac

400

$304.5 million

Aerospace

Penske Logistics

Romulus

403

$98.5 million

Distribution

Credit Acceptance Southfield E 532 $32.9 million Corp.

Financial Services/ Hdqtrs.

Lear Corp.

Flint

435

$29.3 million

Automotive

Autoliv ASP

Southfield

384

$22.9 million

Automotive

maceutical packaging, and in both wood and paper products.

Silver Shovel — Georgia E-commerce is delivering prosperity to Silver Shovel winner Georgia. Online fashion and beauty retailer ASOS picked Union City for a 1,600-job fulfillment center, while Amazon added to its list of distribution centers in Georgia, adding 1,000 jobs. Meanwhile, Luxottica Group’s eyewear distribution center also announced a 1,000-job expansion plan. Business and consumer services are part of the good news, too. Computer Generated Solutions said it would create about 850 call center jobs in a Norcross expansion. Switch unveiled a data center plan in the Atlanta area with a few dozen jobs but a $1 billion price tag. Accenture’s investment in Atlanta is much smaller from a dollar perspective, but will yield nearly 900 jobs. Manufacturing announcements include aircraft engine building at Pratt and Whitney, expanding in Columbus, plus the manufacture of pet foods and paper products elsewhere.

Silver Shovel — Michigan

No surprise that the automotive sector helped Michigan earn a Silver Shovel (pop. 9.93 million) designation. Four of its top 10 projects Represents a state/local sponsor States with populations 8+ to 12 million from 2017 related to auto manufacturing, including a Ford expansion at the Flat Rock assembly where Mustangs and Continentals are made, and an expansion at the Ford Triangle Park area, and that 1,200-job announcement was transmission plant in Livonia. Lear Corp. and Autoliv followed later in the year by a 2,000-job pledge from Inare auto suppliers expanding in Michigan. Credit Acfosys, with a tech hub plan that’s also in the Raleigh area. ceptance Corp. may be a financial services company, North Carolina boasts a solid and diverse manufacbut its headquarters expansion in Southfield owes its turing scene, too, which is reflected in its 2017 list of existence to automotive success stories. Triangle Tyre loans. Co. announced plans to create Plenty of activity can be 800 tire manufacturing jobs, found in other sectors, too. Pilgrim’s Pride is expanding in Amazon, in fact, landed two Lee County, and the state celannouncements on the top ebrated positive headlines in 10 list, including a 1,600-job both pharmaceuticals and phar-

GOLD& SILVER SHOVEL AWARDS

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OHIO Company Amazon Facebook

report

SILVER SHOVEL WINNER N/E

# Jobs

Inv. Amt.

North Randall

City/County

2,000

$100 million

E-Commerce Fulfillment

Industry

New Albany

100

$750 million

Data Center

Silver Shovel — Virginia

Headquarters moves and expansions helped Virginia earn its Silver Shovel. Pro-Tec Coating Co., Leipsic E 80 $410 million Steel Changes in the food industry led Nestle Inc. Processing USA to announce plans for a headquarEnsemble HP, LLC Blue Ash E 1,100 $34 million Biohealth ters move from the West Coast to ArNestle USA, Inc. Solon N 320 $16.8 million Food Sciences lington County, Va., closer to the bulk of Silfex, Inc. Springfield N 400 $214.4 million Silicon its U.S. factories and customers. Favor Components TechConsulting moved to larger quarIronUnits LLC Toledo N 130 $567 million Iron Processing ters in Fairfax County and in the process The Huntington Columbus N 386 $11.6 million Financial made room to add up to 1,200 new National Bank Services jobs over the next five years. Plumbing Pratt Paper, LLC Wapakoneta N 300 $270 million Paperboard wholesaler Ferguson is expanding its (pop. 11.66 million) Represents a state/local sponsor Newport News headquarters, and similar States with populations 8+ to 12 million plans were announced in Virginia Beach by LifeNet Health, involved in organ procurement and tissue processing. From a jobs perspective, the biggest news came from fulfillment center in Romulus and a thousand-job fulfillFrederick County, where Navy Federal Credit Union anment center in Shelby. Centria Healthcare, meanwhile, nounced it would grow its operations center and add picked Farmington Hills for a new headquarters facility approximately 1,400 new jobs. Two of the world’s bigwith room to hire 1,200 people. gest tech companies, Facebook and Google, both chose Virginia for new data centers. Virginia-based healthcare Silver Shovel — Ohio services company Owens & Minor shared plans for a new customer engagement center in Richmond, and Altec InSilver Shovel winner Ohio’s 2017 projects represent dustries — which makes aerial lift trucks for the utility and diverse economic sectors — from manufacturing to telecom industries — will add 180 jobs in an expansion in distribution to technology to financial services. TopBotetourt County. ping the list was a 2,000-job Amazon fulfillment center in North Randall, rising from the site of a closed shopping mall. Hundreds more jobs were promised in the POPULATION: 5+ Million to 8 Million financial services sector. Huntington National Bank’s Gold Shovel — Wisconsin growth in its hometown of Columbus brought a pledge of nearly 400 jobs, plus 900 new insurance jobs at a The biggest economic-development prize of 2017 Highland Heights project planned by Progressive Ca(and one of the very biggest ever) landed in Wisconsin sualty Insurance Co. last year and helped the state earn its Gold Shovel recAlso adding to Ohio’s Silver Shovel year was the anognition. Foxconn Technology Group picked the state for nouncement that Ensemble Health Partners would hire as an LCD manufacturing operation in Racine County worth many as 1,100 at a facility in Blue Ash involved in helping as much as $10 billion and 13,000 jobs. The company healthcare providers collect patient service revenue. Tech calls itself the world’s largest electronics manufacturer, manufacturer Silfex added plans for a Springfield develand it’s probably best known as the maker of Apple’s opment, while Nestle USA announced that as part of a iPhone. headquarters move from California to Virginia, it would It’s a state famous for cheese, so maybe it’s not a suralso move about 300 technical, supply chain, and proprise that food processing projects are high on its list of duction jobs to its Ohio operation in Solon. Other growth success stories — but they’re not entirely about cheese. came in such industries as paperboard, iron and steel, The gummy bear business is good for nearly 400 new plus 100 jobs at a $750 million Facebook data center in jobs in Pleasant Prairie, where Haribo of America is planNew Albany, near Columbus. ning not just a factory but a museum and gummy bear Progressive Casualty Insurance Co.

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VIRGINIA Company Navy Federal Credit Union Favor TechConsulting, LLC

report

SILVER SHOVEL WINNER City/County

N/E

# Jobs

Inv. Amt.

Industry

Frederick E 1,400 $100 million Cty. Fairfax Cty.

1,200

Nestlé USA, Inc.

Arlington Cty.

748

$39.8 million Headquarters

Ferguson

Newport News

434

$82.8 million Headquarters

Virginia Beach

321

$12.3 million Headquarters

LifeNet Health

$1.7 million

Financial Services

Headquarters

Owens & Minor Richmond N 300 $15 million Healthcare Client Services Phoenix Packaging Operations, LLC

Pulaski Cty.

145

$48.7 million

Packaging

Facebook

Henrico Cty.

100

$1 billion

Data Center

Google, Inc.

Loudoun Cty.

$250 million

Data Center

Altec Industries

Botetourt Cty.

180

$30.2 million

Aerial Trucks

Represents a state/local sponsor

(pop.8.40 million) States with populations 8+ to 12 million

store. The Brakebush Brothers facility in Westfield has to do with chicken processing. Dairy is part of the driving force behind the Kwik Trip food production expansion in La Crosse, along with bread and buns. And cheese is on the menu at the Masters Gallery Foods’ manufacturing project in Oostburg.

Silver Shovel — Arizona Arizona cashed in on financial and business services projects on its way to earning a Silver Shovel for 2017. Leading the way in jobs promised was the expansion at Concentrix in Tempe. The strategy and analytics provider plans to add more than 1,500 to the payroll. Bank of the West

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will add a thousand new jobs at its campus in Tempe. In total, more than 2,000 additional jobs were promised in the business/financial services sector by Northern Trust, Brightside Benefit, and DexCom. But the logistics sector was busy making announcements, too, led by the plan for 1,200 jobs at Chewy Inc., the online pet products retailer creating a distribution hub in Goodyear. United Parcel Service will also add jobs in Goodyear, as will packaging manufacturer Ball Corp., which unveiled plans for a metal beverage can plant. Meanwhile, Benchmark Electronics cited a strategic partnership with Arizona State University as one of the reasons it picked Tempe for its headquarters.

Silver Shovel â&#x20AC;&#x201D; Indiana The Hoosier state tapped into its traditional strength in logistics and its emerging strength in information tech-

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nology for its biggest 2017 prizes on the way to earning a Silver Shovel. XPO Logistics Supply Chain picked a site just northwest of Indianapolis for a 1,000+-employee distribution hub, taking over a giant building that had been a book distribution center. To the west of Indianapolis, United Parcel Service will invest more than $260 million in a major expansion. And to the south, Dia Styling Co. found a site for a clothing e-commerce distribution center in Greenwood. As for IT, India-based Infosys decided to land its new technology hub at the site of the former Indianapolis International Airport terminal. The company had already shared plans in 2017 to bring 2,000 jobs to Indianapolis, and when in April 2018 it decided precisely where, Infosys upped its potential employment total by another thousand jobs. Other Indiana projects built upon the stateâ&#x20AC;&#x2122;s long history in automotive manufacturing, healthcare, and pharmaceuticals.

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special

WISCONSIN

report

GOLD SHOVEL WINNER

Company

City/County

N/E

# Jobs

Inv. Amt.

Foxconn

Mount Pleasant

13,000

$10 billion

Haribo of America Pleasant N 385 $220 million Manufacturing LLC Prairie Generac Waukesha, Power Systems Jefferson, Whitewater

Hdqtrs. & R&D

Kwik Trip, Inc. La Crosse E 329 $139 million

Food Processing

Mills Fleet Farm Group, Chippewa LLC Falls

284

$69 million

Distribution

U.S. Venture, Inc.

214

$56 million

Headquarters

Brakebush Brothers, Inc. Westfield E 219 $48 million

Food Processing

Sigma-Aldrich Corp.

400

Food Processing

$73 million

Appleton

Industry Electronics

Sheboygan E 175 $64 million Falls

Pharmaceuticals/ Chemicals

Masters Gallery Foods, Oostburg N 150 $36 million Inc.

Food Processing

Dynamic Recycling, Inc.

Onalaska

153

$13 million

Recycling

(pop. 5.82 million) states with populations 5+ to 8 million

at the site, and BMW’s Spartanburg plans are good for as many as another thousand. Beyond the assembly plants, there’s healthy growth among suppliers, too, ranging from Robert Bosch to BorgWarner to Gestamp. But autos aren’t everything in South Carolina. Samsung Electronics America announced plans to make washing machines in Newberry, and just six months later started rolling appliances off the line. Trane announced an expansion of its Richland County operations that could ultimately more than double its job count. And orthopedic medical device maker Arthrex picked Anderson County for manufacturing operations that ultimately will provide work for a thousand.

Silver Shovel — Tennessee

In earning its Silver Shovel this year, Tennessee eagerly displayed the diversity of its manufacturing economy. Measured Company City/County N/E # Jobs Inv. Amt. Industry Ball Corp. Goodyear N 130 $240.9 million Beverage by number of jobs, the biggest deal was Packaging Tyson Foods’ choice of Humboldt for a United Parcel Service Goodyear N 105 $180 million Logistics chicken-processing plant that will eventuMonsanto Pima County N 30 $94.6 million Agribusiness ally employ as many as 1,500 people. By DexCom, Inc. Mesa N 896 $44.9 million Business/ Financial dollars invested, the top prize was the bil Services lion-dollar expansion of Denso ManufacBenchmark Electronics Tempe N 629 $35.5 million Headquarters turing Tennessee’s operation in Maryville, Chewy, Inc. Goodyear N 1,200 $30 million Warehouse/ Distribution where the company plans to add a thouBank of the West Tempe N 1,000 $25 million Business/ sand jobs making parts for electric cars. Financial Services Textile Corp. of America promised a thouBrightside Benefit, Inc. Chandler E 582 $16.7 million Business/ sand jobs at a headquarters and manufac Financial Services turing operation in Pikeville. Northern Trust - Tempe Tempe E 575 $24.7 million Business/ The diversity story continues the further Financial Services down the list you look. There’s electrical Concentrix Tempe E 1,538 $14.5 million Business/ appliance manufacturing in Clarksville, tire Financial manufacturing in Dayton, food processing Services in Nashville, aluminum in Huntingdon, and (pop. 7.02 million) Represents a state/local sponsor clay building materials in Dickson. Beyond states with populations 5+ to 8 million that, Philips North America relocated corporate offices to Nashville, and Amazon picked Memphis for another of its fulfillment operations.

ARIZONA

SILVER SHOVEL WINNER

Silver Shovel — South Carolina

The big news driving South Carolina’s Silver Shovel had largely to do with the state’s ever-growing automotive sector. Volvo’s expansion plans near Charleston are slated to bring in 1,900 more jobs than originally planned

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POPULATION: 3+ Million to 5 Million Gold Shovel — Kentucky It’s hard not to earn a Gold Shovel Award when your

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report

I N T RO D U C I N G M E SA , A R I ZO N A’ S P E CO S A DVA N C E D M A N U FAC T U R I N G ZO N E .

INDIANA Company

SILVER SHOVEL WINNER City/County

N/E

# Jobs

Inv. Amt.

Infosys Limited Indianapolis N 2,000 $8.7 million XPO Logistics Supply Lebanon N 1,160 $49.4 million Chain, Inc.

Information Technology

Concentrix Corp. Daleville E 750 $4.9 million

Business Services

$261.3 million

Logistics

Brightpoint Services, Jeffersonville N 550 $39.8 million LLC

Healthcare Services

Medline Industries, Inc. Jeffersonville E 500 $50 million

Healthcare Products

AstraZeneca Pharmaceuticals LP

578

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Logistics/ Distribution E-Commerce Distribution

Plainfield

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Industry

Dia Styling Co. Greenwood N 872 $2.7 million

United Parcel Service

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$249.9 million Pharmaceuticals

Mount Vernon

BWI Indiana Inc.

Greenfield

441

$81.7 million

Automotive

Subaru of Indiana Automotive, Inc.

Lafayette

200

$141.3 million

Automotive

(pop. 6.67 million) states with populations 5+ to 8 million

state lands a pair of billion-plus-dollar projects and multiple deals promising four-digit job growth. Toyota is investing $1.3 billion in its new, more nimble manufacturing system at its Georgetown assembly plant, said to be the company’s biggest manufacturing operation. The idea is to be able to make engineering and design changes more quickly. Another hefty automotive investment, at $900 million, comes from Ford Motor Co. in Louisville, where Ford Expeditions and Lincoln Navigators come off the line. Just south of Louisville in Shepherdsville, New Flyer of America is setting up a 550-employee bus and coach parts manufacturing facility. The state’s other billion-dollar deal is from Amazon — $1.5 billion, actually, bringing 2,700 jobs — represents a major air cargo facility at the Cincinnati/ Northern Kentucky International Airport. A thousand-job project involves a Diversified Consultants call center in Louisville, and Kentucky is benefiting from growth in steel, aluminum, and chemicals.

Consider Mesa’s Pecos Zone for your manufacturing expansion or relocation. Mesa is a global hub for aerospace, defense, medical device, and semiconductor manufacturing companies, including some of the world’s biggest players in technology and innovation (Boeing, Apple, Orbital ATK, Bridgestone, Inﬁneon).

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Silver Shovel — Alabama It was a good year for manufacturing in Silver Shovel recipient Alabama, with major investments in a diverse collection of projects, most of them brand-new. Additional jobs are driving in by way of logistics and distribution. For example, more than a thousand automotive-related jobs were tied to two announcements. Autocar is investing $120 million to turn a million-squarefoot complex in Center Point into a heavy-duty truck manufacturing plant, creating more than 700 jobs in the process. Hundreds more jobs are tied to the plans by Mercedes-Benz U.S. International to expand into the Bibb County part of the Birmingham area and build a Global Logistics Center and an after-sales hub. The $280 million projects represent just a quarter of Mercedes’ Alabama AREA0815.indd 1

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special

SOUTH CAROLINA Company

report

SILVER SHOVEL WINNER N/E

# Jobs

Inv. Amt.

Volvo Car USA, LLC

City/County Berkeley

1,910

$620 million

Automotive

BMW Manufacturing Co., LLC

Spartanburg

1,000

$600 million

Automotive

Samsung Electronics Newberry N 950 $380 million America

Consumer Electronics

Roseburg Forest Chester N 145 $200 million Products

Forestry Products

Gestamp South Carolina, LLC

$129 million

Automotive

Trane US, Inc. Richland E 700 $96 million

Metal & Fabricated Products

Arthrex, Inc.

Union

Anderson

130

Industry

$69 million

Life Sciences

Ruiz Food Products, Inc. Florence E 705 $79 million

1,000

Agricultural Processing

BorgWarner, Inc.

Oconee

160

$71.9 million

Automotive

Robert Bosch LLC

Anderson

130

$152 million

Automotive

(pop. 5.02 million) states with populations 5+ to 8 million

TENNESSEE Company

SILVER SHOVEL WINNER City/County

N/E

# Jobs

Inv. Amt.

Tyson Foods Inc. Humboldt N 1,500 $320 million Denso Manufacturing Tennessee, Inc.

Maryville

1,000

$1 billion

Textile Corp. of America Pikeville N 1,000 $27.1 million Philips North America, Nashville N 815 $17 million Inc. Amazon

Memphis

600

$35 million

LG Group Clarksville N 600 $250.6 million Nokian Tyres

Dayton

400

Industry Poultry Processing Automotive Textile/Fabric Finishing Corporate Offices E-Commerce Fulfillment Electrical Appliances

$360 million

Tires

Mohawk Industries, Inc. Dickson E 245 $142 million

Clay Building Material

Silver Shovel — Louisiana The largest Louisiana job-creating project arrived just in time for the winter holidays, when DXC Technology announced plans to create up to 2,000 jobs across the street from the Mercedes-Benz Superdome. The Governor called the project “one of the most significant in the history of our state.” Some of the other major initiatives were tied to the state’s prominent chemical and gas sectors, including a pair of billion-dollar deals involving a new plant from China’s Wanhua Chemical Group and a plan by Korean-owned Lotte Chemical USA to establish U.S. corporate offices alongside its new monoethylene glycol plant in Lake Charles. Among other wins that led to a Silver Shovel award, the state announced plans involving a fertilizer plant and an industrial gas operation, and deals involving prefabricated building manufacturing and paper milling.

Silver Shovel — Utah

Utah last year celebrated the growth and commitment of a homegrown techFive Star Custom Foods Nashville E 138 $146 million Food Products nology player. Pluralsight, an online Granges Americas, Inc. Huntingdon N 107 $110 million Aluminum education provider, will relocate and Products expand its headquarters south of Salt (pop. 6.65 million) Represents a state/local sponsor Lake City. The state further solidified its states with populations 5+ to 8 million “Silicon Slopes” technology credentials with several other noteworthy projects, such as Adobe’s 1,200+-job expansion in Lehi, a Collective Medical Technologies expansion investment plans. in Salt Lake City, and expansion plans by the fastHundreds of additional jobs are tied to the Huntsgrowing customer-interaction software provider Poville aerospace sector, including projects from rocket dium in Lehi. engine builder Aerojet Rocketdyne and Blue Origin, The Silver Shovel-winning state’s financial services the aerospace manufacturer and spaceflight sersector is growing nicely, too, with last year’s headlines vices firm that has ties to Amazon’s Jeff Bezos. More including projects from high-tech California-based loan manufacturing projects reflect growth in the food provider Earnest Inc. and mobile banking startup Varo and poultry, aluminum, paper, and fiber cement inMoney Inc. More Salt Lake City jobs were announced in dustries, and Walmart has promised delivery of 550 biotechnology, too, including at neurovascular tech prodistribution jobs.

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vider Stryker and cardiovascular medical device maker Biomerics.

POPULATION: Fewer Than 3 Million Gold Shovel — Nevada Much of the headline activity resulting in Nevada receiving a Gold Shovel award was focused on Boulevard Mall, an iconic half-century-old center that has been diversifying into the call center business. Leading the way from a jobs-promised perspective was the announcement that 24-7 Intouch, a contact center developer with campuses in multiple communities, would add the Las Vegas area to its list with a center slated to employ more than a thousand. The IT company manages customer contacts

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report

through multiple channels, from voice and live chat to social media and email. Just a stone’s throw away, TeleTech Holdings unveiled plans for another 450 jobs. In making the announcement, Martin DeGhetto, chief operating officer, noted that “Las Vegas provided an excellent market opportunity to create a new customer experience center, given its outstanding labor force, strong local partnerships, and availability of workforce training.” Health insurer Anthem, meanwhile, picked a spot that was a Macy’s store for a Las Vegas office. Nevada’s major developments were diverse in nature. More than 400 new jobs are on the way in a couple of logistics-related operations announced in 2017, the automotive sector made a dent in the jobs market, and a

4:18 PM AREA DEVELOPMENT28/04/16 | Q2/2018 55

6/5/18 3:08 PM

KENTUCKY Company

GOLD SHOVEL WINNER City/County

N/E

# Jobs

Inv. Amt.

Hebron

2,700

$1.5 billion

E-Commerce Fulfillment

Toyota Motor Manufacturing Kentucky

Georgetown

1,209

$1.3 billion

Automotive

Ford Motor Company KTP

Louisville

500

$900 million

Automotive

Grainger

Louisville

431

$273 million

Distribution

Ghent

$213.1 million

Amazon

Nucor Steel Gallatin

Industry

Steel

Logan Aluminum, Inc.

Russellville

$125 million

Aluminum

Cabot Corp.

Carrollton

$89 million

Chemicals

Mubea Precision. Springs, Inc

Florence

118

$73.3 million

Automotive

New Flyer of. Shepherdsville N 550 $40 million America, Inc Diversified Consultants Inc.

Louisville

Represents a state/local sponsor

$6.7 million

Call Center

(pop. 4.40 million) states with populations 3+ to 5 million

ALABAMA Company

1,000

Transit Bus/ Motorcoach Parts

SILVER SHOVEL WINNER City/County

N/E

Selma

Mercedes-Benz U.S. Int’l.

Bibb Cty.

502

$281.5 million

James Hardie Building Products

Prattville

205

$220 million

Fiber Cement Aerospace

International Paper Co.

# Jobs

Inv. Amt.

Industry

$552.7 million Paper Products Automotive

Blue Origin

Huntsville

342

$200 million

Walmart

Irvington

550

$135 million

Distribution

Autocar

Center Point

746

$120 million

Automotive

Bocar Tanner N 305 $117.1 million Aluminum Die Casting John Soules Food

Valley

500

$110 million Food Products

Wayne Farms LLC Jack E 400 $105 million

Poultry Processing

Aerojet Rocketdyne

Aerospace

Huntsville

805

$46.5 million

(pop. 4.89 million) states with populations 3+ to 5 million

LOUISIANA Company Boeing

SILVER SHOVEL WINNER City/County

N/E

Orleans Parish

# Jobs

Inv. Amt.

Industry

200

$500,000

Aerospace

Champion Homes Vernon Parish E 200 $1.3 million

Prefab Wood Buildings

DHL/Graphic Ouachita Packaging Parish

Warehousing

$274 million

DXC Orleans Parish N 2,000 N/A

Computer Programming

Energy World Corp.

Industrial Gas

Lotte Chemical Louisiana PCS Nitrogen Fertilizer

Plaquemines Parish

$800 million

Calcasieu E 130 $1.13 billion Parish Ascension Parish

$290 million

Select Comfort Corp. Jefferson N 225 N/A Parish

Organic Chemicals Fertilizer Business Services

Wanhua Chemical T/B/D N 170 $1.12 billion Group

Organic Chemicals

WestRock

Paper Mills

Jackson Parish

$320 million

(pop. 4.68 million) states with populations 3+ to 5 million

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ShovelArticle2018.indd 56

city known for cashing in chips also landed jobs with a coin minting operation.

Silver Shovel — Kansas Lots of goods make their way across the Kansas landscape, so it’s no surprise that the state is good at landing logistics and distribution jobs. Three of the big projects that earned Kansas a Silver Shovel award fall into this category, all in the general vicinity of the Interstate 35 corridor. Spectrum Brands and Horizon Global both announced plans for the community of Edgerton, in the 1,700-acre Logistics Park Kansas City development. Up the road in Overland Park, Multi Service Technology Solutions is creating another 100+ logistics/distribution jobs. Dold Foods is big in the bacon business, and the past year saw an announcement that it’s cooking up an expansion that’ll add 384 jobs linked to precooked bacon production. Among other deals, there are nearly 300 construction/engineering jobs on the way at Kiewit in Lenexa, and hundreds of jobs in both banking and health facilities management at Leawood projects.

Silver Shovel — Mississippi Mississippi earned a Silver Shovel award for its big manufacturing news in 2017. Leading the way was an expansion plan by Milwaukee Tools to add 660 jobs in three locations in Greenwood, Jackson, and Olive Branch. The company is boosting its cordless power tool and accessory manufacturing along with distribution capacity. Also making headlines were aerospace related projects: Northrop Grumman in Pascagoula, Stark Aerospace in Columbus, and Precision Machining Services in Clinton. More jobs are growing in the automotive sector, as well as at a banking project in Hattiesburg. The past year also saw a 450-job promise from FedEx Supply Chain in Olive Branch. ^•^

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special UTAH Company

report

SILVER SHOVEL WINNER City/County

N/E

# Jobs

Inv. Amt.

Industry

Pluralsight South Jordan N 2,464 $371.8 million

Information Technology

Adobe Lehi E 1,260 $90 million

Information Technology

Collective Medical Salt Lake City E 587 $10 million Technologies Stryker Corp. Earnest

Salt Lake City

540

Information Technology

$100 million Biotechnology

Salt Lake N 500 $5.6 million County

Financial Services

Varo Money, Inc. Salt Lake City N 331 $2.8 million

Financial Services

Amazon Biomerics

Salt Lake County

130

$200 million

E-Commerce Fulfillment

Salt Lake City

380

$38.5 million Biotechnology

Podium Lehi E 426 $10 million

Information Technology

eShares, Inc. Salt Lake Ctiy N 464 $5.7 million

Financial Services

(pop. 3.10 million) states with populations 3+ to 5 million

NEVADA Company

GOLD SHOVEL WINNER City/County

N/E

# Jobs

Inv. Amt.

Industry

24/7 In Touch Clark Cty. N 1,200 $1.3 million Teletech

Clark Cty.

450

Information Technology

$1.8 million

IT Consulting

The Anthem Clark Cty. E 400 $5.4 million Companies, Inc.

Health Insurance

PODS Enterprises, Washoe Cty. N 308 $1.1 million Logistics LLC Operations Daehan Solution Nevada, LLC

Lyon Cty.

231

$26.8 million

Automotive

Xtreme Manufacturing, Clark Cty. E 204 $8 million LLC Sunshine Minting

Clark Cty.

170

Heavy Equipment

$5.5 million

Coin Minting

Levi Strauss Clark Cty. E 150 $16.2 million

Logistics Operations

Alchemy Washoe Cty N 160 $150,000 Technology Hdqtrs. Cardinal Paint

Clark Cty.

Represents a state/local sponsor

100

$10 million

Paint Products

(pop. 2.99 million) states with populations under 3 million

Kim Lofgreen, Marketing and Business Development Manager City of Mesa Office of Economic Development 20 E. Main St., Suite 200 P.O. Box 1466 Mesa, AZ 85211-1466 480-644-2398 Fax: 480-644-3458 kim.lofgreen@mesaaz.gov www.mesaaz.gov/economic

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FLORIDA

John R. Snider, Executive Director Bullitt County Economic Development Authority 162 South Buckman Street Shepherdsville, KY 40165 502-543-1200 jsnider@gobullittky.com www.gobullittky.com John Bevington, Commissioner Kentucky Cabinet for Economic Development Old Capitol Annex 300 W. Broadway Frankfort, KY 40601 502-564-7670 or 1-800-626-2930 John.Bevington@ky.gov www.ThinkKentucky.com

MICHIGAN

Nicole Whitehead, Director, Sales & Service Operations Michigan Economic Development Corporation 300 N. Washington Square Lansing, MI 48913 517-719-3157 whiteheadn@michigan.org www.michiganbusiness.org/AD

MISSISSIPPI

Billy Klauser, Chief Economic Development Officer Mississippi Development Authority P.O. Box 849 Jackson, MS 39205 800-360-3323 Fax: 601-359-4339 bklauser@mississippi.org www.mississippi.org

NEVADA

SHOVEL AWARDS SPONSORS ARIZONA

KENTUCKY

Greater Fort Lauderdale Alliance 110 E. Broward Blvd., Suite 1990 Fort Lauderdale, FL 33301 800-741-1420 or 954-524-3113 Fax: 954-524-3167 Fax info@gflalliance.org www.gflalliance.org

Stan Thomas, Exec. VP, Business Development Economic Development Authority of Western Nevada (EDAWN) 5190 Neil Road, Ste. 110 Reno, NV 89502 775-829-3731 SThomas@edawn.org www.edawn.org

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

6/5/18 3:09 PM

special

report

KANSAS

NORTH CAROLINA

Katy Parker, Coordinator, Business Recruitment Economic Development Partnership of North Carolina (EDPNC) 15000 Weston Parkway Cary, NC 27513 919-447-7744 katy.parker@edpnc.com www.edpnc.com

OHIO

Lee Crume, Director, Global Business Development JobsOhio 41 S. High St, Suite 1500 Columbus, OH 43215 614-300-1151 crume@jobs-ohio.com www.jobs-ohio.com

SOUTH CAROLINA

Bill McCall, Economic Development Specialist Santee Cooper One Riverwood Drive Moncks Corner, SC 29461 843-761-8000 ext. 5381 wmccall@santee cooper.com www.PoweringSC.com

Company

Bryan Daniels, President/CEO Blount Partnership 201 S. Washington St. Maryville, TN 37804 855-257-3964 bdaniels@blountpartnership.com www.blountindustry.com Allen Borden, Deputy Commissioner, Business, Community and Rural Development Tennessee Department of Economic & Community Development 312 Rosa L. Parks Ave. Nashville, TN 37243 615-741-1888 allen.borden@tn.gov TNECD.com

TEXAS

Robert Allen, President & CEO Texas Economic Development Corp. 1005 Congress Ave., Ste. 910 Austin, TX 78701 512-981-6736 robert@businessintexas.com www.businessintexas.com www.GoBigInTexas.com

City/County

N/E

# Jobs

Inv. Amt.

Industry

Nueterra Holdings, LLC Leawood N 389 $17.9 million Healthcare Facilities Mgmt. Spectrum Brands Edgerton N 511 $50.9 million CrossFirst Bank

Leawood

173

$46 million

Multi-Service Overland N 116 $13.7 million Technology Solutions Park Kiewit Corp. Lenexa N 268 $130 million Simmons Pet Food KS

Emporia

131

$101.3 million

Logistics/ Distribution Banking Logistics/ Distribution Construction/ Engineering Pet Foods

Horizon Global Edgerton N 122 $30 million

Logistics/ Distribution

Himoinsa Power Olathe N 75 $38 million

Portable Generators

Viega, LLC

McPherson

150

$73 million

Piping

Dold Foods

Wichita

384

$151 million

Food Products

(pop. 2.85 million) states with populations under 3 million

MISSISSIPPI Company Milwaukee Tool

SILVER SHOVEL WINNER City/County

N/E

# Jobs

Inv. Amt.

Jackson/ E 660 $33.4 million Greenwood Olive Branch

Industry Power Tools/ Saw Blades

FedEx Supply Chain Olive Branch N 450 $12 million

Distribution/ Logistics

Pearl River Foods Carthage N 150 $2 million

Poultry Processing

Calsonic Kansei Regions Bank

TENNESSEE

SILVER SHOVEL WINNER

Stark Aerospace BorgWarner

Madison

$16.3 million

Hattiesburg

$22.7 million

Banking

Columbus

$6.7 million

Aerospace

Water Valley

$20 million

Automotive

KeyTronicEMS

Automotive

Corinth E 75 $500,000 Electronics

Precision Machining Clinton N 70 $5 million Aerospace/ Services Defense & Medical Parts Northrop Grumman

Pascagoula

Represents a state/local sponsor

VIRGINIA

Kenneth McFadyen, Director of Economic Development Botetourt County 4 West Back Street Fincastle, VA 24090 540-928-2140 kmcfadyen@BOTETOURTVA.GOV www.co.botetourt.va.us Florence G. Kingston, Director of Development Newport News Economic Development Authority 2400 Washington Ave., 3rd Floor Newport News, VA 23607 1-800-274-8348 marketing@nn.gov newportnewsva.com

$3.7 million

Aerospace

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

David Couch, Coordinator, Business Development Strategy VABeachBio Virginia Beach Economic Development 4525 Main Street, Suite 700 Virginia Beach, VA 23462 757-385-6464 vabeachbio@vbgov.com VaBeachBio.com

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INCREASING THE RANKS OF WOMEN IN MANUFACTURING

Through education and mentorship, women will be encouraged to pursue careers in today’s increasingly technological and innovative manufacturing industries.

s a woman who runs a second-generation manufacturing and engineering company, I am a bit of an anomaly — a disruption to the normal pattern we tend to classify as “manufacturing.” One of my professional and personal goals is to change that notable distinction and, to that end, I talk with students, parents, educators, government officials, and colleagues to learn, brainstorm, and engage in efforts that will make a difference. It’s an exciting time to be in U.S. manufacturing as the industry is experiencing incredible growth, supports 17.6 million jobs, is considered the world’s eighth-largest economy, and provides above average salaries. Yet, the U.S. Bureau of Labor Statistics (2014)1 notes that while women represent nearly half of the total U.S. labor force (47 percent), they comprise less than a third (27 percent) of the manufacturing jobs. These low overall numbers translate to low numbers of women in leadership positions within the manufacturing industry. According to 2016 data (as cited by IndustryWeek2) from Catalyst, a leading nonprofit organization dedicated to expanding opportunities for women and business, women working in the U.S. manufacturing durable goods sector represent only 5 percent of CEOs, and 20 percent of executive officers. With such obvious perks for the overall economy and individuals, why are we looking at a lack of women in the manufacturing industry? And more importantly, what can we do now to see a significant change in these numbers? I believe the key areas of focus should be education in our schools, where we can dispel the persistent myths of manufacturing and create a cultural shift in the industry that encourages current women in the industry to step up and be the brand we want young women to emulate.

E d u c a t i o n Ta k e s t h e L e a d Pamela Kan is president of Bishop-Wisecarver, Pittsburg, Calif., a developer of innovative motion solutions.

How do we change this stagnation of women in manufacturing to adoption of manufacturing as

By Pamela Kan, President, Bishop-Wisecarver

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a strong, viable career? At the start of the pipeline, the education must start early. Increasing STEM (science, technology, engineering, and mathematics) education participation and proficiency for girls starting in elementary school is a critical first step. Manufacturers must come together to create positive exposure and experiences for women at a young age. When students have some knowledge of the opportunities in manufacturing, their interest in pursuing it as a career rises exponentially. One successful program is the FIRST Robotics Competition that provides hands-on learning using math and engineering to promote STEM-based learning. According to FIRST statistics3: • Those who have participated in FIRST are 2x as likely to major in science or engineering; • 33 percent of girls participating in FIRST plan to major in engineering; and • More than 75 percent of FIRST participants are in a STEM field as a student or professional. Mentors in the school are another important factor for success. According to “Why so Few? Women in Science, Technology, Engineering, and Mathematics”4 by the American Association of University Women in 2010, “Mentorship is often cited as a key strategy for exciting, supporting, and keeping students and young scientists and engineers in the fields of STEM. This is particularly true for individuals who haven’t historically participated in these areas — such as young women and underrepresented minorities.” The Million Women Mentor program was developed for “Advancing Women and Girls in STEM Careers Through Mentoring,” and they found that 20 percent of current female high school students interested in a STEM discipline say they would like to learn more about mentoring and motivational programs to help prepare them for the future. Another important aspect to this education component is having teachers and counselors discuss viable careers in the manufacturing industry with their students. There are literally hundreds of thousands of unfilled jobs that pay higher-than-average wages and require training that often takes less than two years. Manufacturing offers a strong career path and multiple benefits, but many schools focus only on four-year colleges. While these are clearly great learning institutions, they aren’t the only option. I meet so many students that would be a tremendous

asset to the manufacturing industry but didn’t realize it was even an opportunity. While most schools no longer have classes encouraging trade skills, they can — and should — still discuss these skills and how they are now technologically advanced to help in this industry. The STEM programs, mentors, and events such as National Manufacturing Day, Junior Achievement job-shadowing, career fairs, etc. all play a role in showcasing the benefits of manufacturing and providing hands-on, real insight that could change the minds and career paths of a significant number of young women. The statistics, and my own personal observations, are in total agreement — when young women are given hands-on STEM education, counseling that includes manufacturing options, and have the opportunity to be mentored, their interest in manufacturing is significant.

How to Dispel the Myths of Manufacturing We clearly have a branding problem when it comes to attracting women to manufacturing, and this problem affects all parts of the skills pipeline in channeling women into this industry. So many students (and adults) still see manufacturing as dark, dirty facilities where workers suffer through hours of rote motions with monstrously big, greasy equipment. That couldn’t be further from the current realities, and those of us in manufacturing need to showcase this in every way possible. • Technology — Manufacturing in 2018 means technologically advanced machinery, modern buildings designed to help teams of employees collaborate and communicate more easily, and includes the use of robotics, 3D printing, artificial intelligence, virtual reality, augmented reality, and the Internet of Things, just to name a few. Millennials have been raised with technology as part of every aspect of their lives, and understanding that it plays an important role in manufacturing will help them see this as a more viable career option. From hardware to software and everything in between, the technology advancements in manufacturing are constant and require workers who can keep adapting. • Innovation — Manufacturing isn’t a career where you check your brain at the door. It needs great problem-solvers who can work to meet cur-

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rent customers’ needs, while also developing new innovations for future concerns. A 2014 Deloitte/ The Manufacturing Institute report5 found that 78 percent of millennials said their decision to work at a company was influenced by how innovative they considered the company to be. Don’t miss that number or its importance. The majority of young workers are selecting their future employers based on perceived innovation. Manufacturing is all about innovation — it’s what we do all day, every day.

Be the Brand For women already working in manufacturing, we have to BE the brand we want others to see. We must support programs and efforts to promote careers in manufacturing for women. We are the ones who can show the next generations the full potential of the manufacturing industry — higher salaries, strong benefits, and challenging and rewarding work. What they see in us today will make a difference in their future and ours. Catalyst, mentioned above,

WOMEN ALREADY WORKING in manufacturing have to BE the brand we want others to see.

• Making a Difference — Millennials also value the chance to make a difference. Engineers at my company have all said — many times — that what they most love about the manufacturing industry is the ability to take their schooling and innate interests and make a difference by creating something new that can help a customer. This is what millennials want and manufacturing offers this opportunity. We need to be shouting this out a little louder!

A Culture Shift Increasing the number of women in our industry also means that manufacturers must look at themselves and their own cultures. We must change our male-dominated culture to focus on the attraction, recruitment, retention, and advancement of women through our organizations. Being open to flexible work schedules is a requirement to attract and retain women. Also, women want the ability to move up the ranks into roles of leadership and to enjoy challenging, meaningful work. Providing these benefits not only helps increase the number of women in the industry, but it makes positive financial sense to change. Research proves organizations with diverse leadership are more profitable. A 2004 study by Catalyst6 found that Fortune 500 companies with high percentages of women officers had a 35 percent higher return on equity and a 34 percent higher total return than companies with fewer women executives. Those numbers are significant.

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also noted a positive correlation between the percentage of women board directors in the past leading to a higher number of women corporate officers in the future. Women in leadership roles bring more women to the industry. We need to make the effort to reach out to younger women within the industry as role models, coaches, and mentors. Even more so, we need to be vocal advocates and enhance mentees and other women’s presence in the organization. There are so many groups focused on helping women in business and helping women in STEM fields and manufacturing. To name just a few, check out Women’s Business Enterprise Council-Pacific, Million Women Mentors, FIRST Robotics Competition, Women In Manufacturing, Women’s President Organization, and National Association of Manufacturers. When we focus on early STEM education, dispel the myths of manufacturing, change our corporate cultures, and have successful women manufacturing leaders helping other women, I am confident we will see women hit a true growth stage of impact and influence within the manufacturing sector.

www.themanufacturinginstitute.org/Research/Other-Institute-Reports/~/media/E2D87C9ED3854BD88A8ADB1B947F8A86.ashx http://www.industryweek.com/workforce/business-case-more-women-manufacturingleadership 3 https://www.firstinspires.org/sites/default/files/uploads/resource_library/impact/FIRSTimpact-infographic.pdf 4 https://www.aauw.org/research/why-so-few/ 5 https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/ gx-dttl-2014-millennial-survey-report.pdf 6 www.catalyst.org/system/files/why_diversity_matters_catalyst_0.pdf 2

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6/11/18 12:15 PM

By Karen E. Thuermer

THE U.S. ECONOMIC

OUTLOOK IS HEALTHY ACCORDING TO

the key economic

i n d i c a t o r s . W i t h t h e G D P g r o w t h rate expected t o remain between 2 and 3 percent, unemployment hovering just below 4 percent, and inflation or deflation in check for now, thereâ&#x20AC;&#x2122;s a general feeling of optimism sweeping much of the nation. As of May, the U.S. economy had expanded for 107 months, making it the second-longest expansion on record.

NOTE: Area Developmentâ&#x20AC;&#x2122;s research desk compiled the statistics for this report. Locations were ranked according to the methodology explained herein. Interactive report available at

www.areadevelopment.com/LeadingLocations2018

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LEADING

LOCATIONS

TOP 50 Leading Metro Locations Rank CITY/MSA

State

Region

San Jose-SunnyvaleSanta Clara

Pacific

San Francisco-Redwood City- South San Francisco

Oakland-Hayward-Berkeley

Rank CITY/MSA

State

Atlanta-Sandy Springs-Roswell GA

South Atlantic

Pacific

Hartford-West Hartford- CT East Hartford

New England

Pacific

Reno NV

Mountain

Chicago-Naperville- IL Arlington Heights

Midwest

Napa

Pacific

Urban Honolulu

Pacific

Columbus IN

Midwest

Kokomo IN

Midwest

Portland-Vancouver-Hillsboro OR-WA

Charlotte-Concord- NC-SC Gastonia Atlantic

Elkhart-Goshen IN

Midwest

Pacific

Region

Boston-Cambridge MA

New England

Carson City NV

Mountain

Denver-Aurora-Lakewood CO

Mountain

Seattle-Bellevue-Everett

Pacific

St. George UT

Salt Lake City UT

Mountain

Anaheim-Santa Ana-Irvine

Boulder CO

Mountain

Santa Rosa

Pacific

Grand Rapids-Wyoming MI

Midwest

Warren-Troy-Farmington Hills MI

Midwest

Bend-Redmond

New York-Jersey City- NY-NJ White Plains

Fort Collins CO

Mountain

Wausau WI

Midwest

Charleston-North Charleston SC

South Atlantic Southwest

21 22

Dallas-Plano-Irving TX

Santa Cruz-Watsonville

Cincinnati OH-KY-IN

San Diego-Carlsbad

Pacific MidAtlantic

Pacific Midwest

Pacific

Nashville-Davidson-- TN Murfreesboro--Franklin

South

Norwich-New London CT

Mountain

Pacific

Barnstable Town MA

New England

Indianapolis-Carmel-Anderson IN

Midwest

Camden NJ 40 Jacksonville FL 41 Portland-South Portland ME

MidAtlantic South Atlantic New England

Kalamazoo-Portage MI

Midwest

Detroit-Dearborn-Livonia MI

Midwest

Vallejo-Fairfield

Pacific

Fort Wayne IN

Midwest

Philadelphia PA

MidAtlantic

Orlando-Kissimmee-Sanford FL

South Atlantic

New England

Sacramento--Roseville-- Arden-Arcade

Worcester MA-CT

Austin-Round Rock TX

Southwest

“Tax cuts, low unemployment, and rising wages point

and reductions in regulations has been supporting economic

to more spending power to fuel economic growth,” says

growth and should support future growth. If economic growth

Dr. Christine Chmura, CEO and chief economist at Chmura

lasts 15 more months, it will hit record territory in July 2019,

Economics & Analytics. “Increased investment by businesses

when it would surpass the longest expansion on record at 121

in new plants and equipment resulting from corporate tax cuts

months.”

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Elkhart County s y that’ m o n o c .”— An e ull tilt f “ t a ng s operati of America’ uture ke “The F ooks a Lot Li yL Econom , Indiana” rt Elkha /13/18 SJ 4 —W

Agdia, Inc.

# 1 — Economic strength #2 — Mid-size metros #7 — Year-over-year growth factors #8 — Overall ranking #12 — Five-year economic growth factors • The RV capital of the world • 1st in the U.S. for robots per 1,000 workers • 2nd in the U.S. for advanced manufacturing per business locations • 3 of top 5 U.S. IndustryWeek corporations located in Elkhart County • 10th in the U.S. for job growth factors

Mark A. Dobson, IOM, AE President & CEO The Economic Development Corporation of Elkhart County mark@elkhartcountybiz.com www.elkhartcountybiz.com

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300 NIBCO Parkway, Suite 201 Elkhart, IN 46516 574.293.5627 Cell: 574.536.9083 Fax: 574.343.2951

17/05/18 5:23 PM

LEADING

LOCATIONS

METHODOLOGY

variety of data and are culminated in its list of “Leading Metro

Area Development ranked 394 MSAs across 21 economic and workforce indicators. These 21 indicators were pulled from seven (7) data sets (sub-categories) originating from three sources: the Bureau of Labor Statistics, U.S. Census American Community Survey, and Emsi.

the top large, medium-size, and small metros.

Each MSA earned a ranking within each of the 21 indicators based on its statistical performance within that indicator. The MSA with the best performance in a certain indicator earned a ranking score of “1” and the MSA with the worst performance earned a ranking score of “394.” To calculate “Overall Ranking,” we added the total ranking across all indicators for each MSA and then divided by the total number of indicators to reach an average ranking. The MSA with the lowest average earned the #1 overall ranking, while the MSA with the highest average ranked #394 overall.

We also calculated overall ranking across four categories: “Prime Workforce,” “Economic Strength,” “FiveYear Growth,” and “Year-OverYear Growth.” To calculate the overall ranking within these four categories, we produced an average ranking across only certain indicators. An indicator did not have to be exclusive to our category rankings. For instance, the “Employment Growth Net 5-Year Change as Percentage of Population” is used within both the “Economic Strength” and “Five-Year Growth” categories. We have also produced a set of lists, using our overall results and category results, grouping the MSAs by region and size.

Locations.” The analysis also uses the same data to determine

We ranked the Top 5-20 MSAs in each region (defined by Area Development Online taxonomy), and we also ranked the top MSAs across three size groups: “Small” (population < 160,000), “Mid-Size” (population 160,000– 600,000), and “Big” (population > 600,000). We ranked the cities within each size group against our overall rankings and “Prime Workforce,” “Economic Strength,” “FiveYear Growth,” and “Year-OverYear Growth” categories. For a full explanation of the methodology behind our Leading Locations report, go to www. areadevelopment. com/Leading Locations2018/ methodology.

To help track growth trends, Area Development recently released its 8th annual “Leading Metro Locations” report that takes a multifaceted look at 394 metropolitan statistical

As was the case last year, northern California — especially the San Francisco Bay area — and the Pacific and Mountain regions made a good showing in this year’s report. In fact, 14 of the top 20 metros in the survey are in the Pacific or Mountain regions. The top three are San Jose-Sunnyvale-Santa Clara, San Francisco-Redwood CitySouth San Francisco, and Oakland-Hayward-Berkeley. These

TOP 20 Large Metros Rank CITY/MSA

State

Rank Within Leading Locations

San Jose-SunnyvaleSanta Clara

San Francisco-Redwood CitySouth San Francisco

Oakland-Hayward-Berkeley

Portland-Vancouver-Hillsboro

OR-WA

Denver-Aurora-Lakewood

Seattle-Bellevue-Everett

Salt Lake City

Grand Rapids-Wyoming

Warren-Troy-Farmington Hills

New York-Jersey CityWhite Plains

NY-NJ

Charleston-North Charleston

Dallas-Plano-Irving

Cincinnati

OH-KY-IN

San Diego-Carlsbad

15 Nashville-Davidson--

Murfreesboro--Franklin

Atlanta-Sandy Springs-Roswell

Hartford-West HartfordEast Hartford

18 Chicago-Naperville-

Arlington Heights

areas (MSAs) and ranks them based on “Prime Workforce,”

Urban Honolulu

“Economic Strength,” “Year-Over-Year Growth,” and “Five-Year

Charlotte-Concord-Gastonia

NC-SC

Economic Growth.” The results come from crunching a wide

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LEADING

TOP 20 Mid-Size Metros

LOCATIONS

Rank CITY/MSA

State

Rank Within Leading Locations

Reno

Elkhart-Goshen

3 4

TOP 20 Small Metros Rank CITY/MSA

State

Rank Within Leading Locations

Napa

Columbus

Boulder

Carson City

Santa Rosa

Bend-Redmond

Fort Collins

Wausau

Santa Cruz-Watsonville

Kokomo

Norwich-New London

St. George

Barnstable Town

Sheboygan

Portland-South Portland

Kankakee

Kalamazoo-Portage

Niles-Benton Harbor

Vallejo-Fairfield

Fond du Lac

Fort Wayne

Elizabethtown-Fort Knox

San Luis Obispo-Paso RoblesArroyo Grande

Glens Falls

Provo-Orem

Albany

Lansing-East Lansing

Winchester

VA-WV

Manchester-Nashua

New Bern

Salem

Jackson

Fayetteville-Springdale-Rogers

AR-MO

Idaho Falls

103

Oshkosh-Neenah

Sumter

107

Ann Arbor

Albany

108

locations benefit from clusters of high-tech and biotech

expansion,” comments Chmura. “The most profitable firms rely

companies and renowned institutions of higher education,

on a creative and productive workforce. Technology underpins

including UCSF, Stanford, and UC Berkeley, that provide a

a firm’s ability to be more productive, and education supports a

steady stream of skilled workers and R&D.

worker’s ability to perform at high levels.” Showing a particularly upward swing is Oakland-HaywardBerkeley, which rose from a 25th position in 2016 to 3rd in

San Jose-Sunnyvale-Santa Clara, once the world’s

both 2017 and 2018 based on improved economic strength

largest canning and dried-fruit packing center prior to World

and workforce. The location benefits from less expensive and

War II, has sustained high rankings largely because it is

more available real estate compared to San Francisco and

home to the world-renown Silicon Valley, one of the hottest

Silicon Valley locations.

addresses in the world. “High technology and an educated workforce will always be key factors that differentiate the leading locations for firm

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Other northern Pacific locations made overall strong showings. Most noteworthy, Portland-Vancouver-Hillsboro, OR-WA received its highest overall ranking (7th) in the

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CONGRATULATIONS S TAT E O F N E V A D A

FIND OUT WHY RENO IS THE MID-SIZE METRO

EDAWN.ORG

775.829.3700

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800.336.1600

05/06/18 5:14 PM

LEADING

TOP 30 Metros Economic Strength Rank CITY/MSA

State

LOCATIONS

Overall, the software industry is 2.5 times more concentrated in Oregon than other states. It doesn’t hurt Rank Within Leading Locations

that the commercial real estate market in Portland continues to be hot with tech companies, along with their supporting businesses, taking much of the space. Industrial space is also

Elkhart-Goshen

Napa

Carson City

San Jose-Sunnyvale-Santa Clara

Norwich-New London

San Francisco-Redwood CitySouth San Francisco

these regions lagged the nation in the first few years after the

Reno

recession as they worked through the imbalances.”

Hartford-West Hartford- East Hartford

Worcester

MA-CT

Kankakee

Boston-Cambridge

Kokomo

Oakland-Hayward-Berkeley

Fort Wayne

Portland-Vancouver-Hillsboro

OR-WA

Urban Honolulu

Sheboygan

Lake County-Kenosha County

IL-WI

Santa Rosa

Wausau

Boulder

Denver-Aurora-Lakewood

Grand Rapids-Wyoming

23T Barnstable Town

Vallejo-Fairfield

Warren-Troy-Farmington Hills

Santa Cruz-Watsonville

Fort Collins

Green Bay

Detroit-Dearborn-Livonia

breathing new life into the market. Chmura adds: “Many metro areas in the Pacific Northwest and Mountain regions were hit harder than other areas around the nation during the Great Recession. Home prices, for example, were down significantly. Economic growth in

Bucking Workforce Trends In recent years, there’s been plenty of news about the skilled labor shortage. The Leading Locations analysis shows that more attractive tax structures support employment growth in the first few years after taxes are lowered. “Other factors, such as quality of life and a strong public K-12 education system, are important as well,” says Chmura. According to the report, a number of cities are bucking the labor shortage trend and rising in their overall ranking. Among those showing significant upswings are Philadelphia and Salt Lake City. Philly ranked an overall 47th in 2018 up from 141st in 2017. Salt Lake jumped to 12th this year from 32 in 2017. Both cities attribute their improved marks to increasingly attracting educated workers. It doesn’t hurt that Philadelphia is home to University of Pennsylvania with its Wharton School of Business as well as Drexel University and Temple University. Stalwarts like Columbus, Ind., and San Jose, Calif., have consistently shown high rankings, although the two places could not be more different from one another. The point here is one does not have to be a tech haven or a large city to score well year after year. What keeps the small Midwest city of Columbus, Ind., among the top-10 MSAs year after year is its ability to attract an educated workforce — the MSA ranks fourth among the top metros for Prime Workforce.

eight years of the survey. Helping the area is its tech boom and desirable lifestyle. Here both hardware and software sectors are growing strongly.

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Also making Columbus attractive has been its ability to revitalize the city through architectural excellence,

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a task that began in the mid-20th century when the

TOP 30 Metros Prime Workforce

Cummins Foundation made it a mecca of modern

Rank CITY/MSA

State

Rank Within Leading Locations

San Francisco-Redwood CitySouth San Francisco

San Jose-Sunnyvale-Santa Clara

3 Nashville-Davidson Murfreesboro--Franklin

Columbus

architecture. Economic development efforts, widespread beautification innovations, various tax incentives, and increased law enforcement have helped Columbus overcome downward economies. Besides Columbus, other small cities that show noteworthy marks for their Prime Workforce include Bend-Redmond, Ore., Auburn-Opelika, Ala., and St. George, Utah. Mid-size metros scoring high for their Prime Workforce include Olympia-Turnwater in Washington State, Reno, Nev., and Gainesville, Fla.

Economic Growth While some locations are economically sound and offer many attributes, those that show both year-over-year and longerterm growth receive higher marks in this analysis. In the past, there have been numerous booming growth cities in the South and Southwest â&#x20AC;&#x201C; e.g. Austin, Texas, and Nashville, Tenn. But in recent years, overall rankings for these cities have slipped. The Nashville MSA fell to 26th from the No. 7 spot in 2017, and Austin dropped from a 10th place ranking in 2015 to 46th in 2016, 47th in 2017, and 50th for 2018.

Oakland-Hayward-Berkeley

Seattle-Bellevue-Everett

Bend-Redmond

Salt Lake City

Dallas-Plano-Irving

Philadelphia

Orlando-Kissimmee-Sanford

Charlotte-Concord-Gastonia

NC-SC

Denver-Aurora-Lakewood

Olympia-Tumwater

Portland-Vancouver-Hillsboro

OR-WA

Reno West Palm Beach-Boca Raton- Delray Beach

Many locations fair well due to industry clusters that set up shop in regions around the country. For example, the South Atlantic has over the years become a magnet for auto and advanced manufacturing, particularly along the Interstate 75 corridor. This location has been beneficial to Dalton, Ga., best known as being home to the carpet and floor covering industry. While ranked 196th overall as a Leading Metro Location, Dalton made a particular strong No. 3 showing for Five-Year Economic Growth, thanks to its innovation in cutting-edge technology, applied science, global marketing, and services. These have led to new high-tech products and patents. Year-Over-Year Growth rankings indicate some surprises. Kankakee, Ill., which ranked 54th overall, ranked first in

NV 4 FL 67

New York-Jersey City- NY-NJ 18 White Plains

Gainesville

229

Auburn-Opelika

178

Columbus

Atlanta-Sandy Springs-Roswell

Austin-Round Rock

St. George

Kalamazoo-Portage

Boulder

Tallahassee

192

Grand Rapids-Wyoming

San Luis Obispo-Paso RoblesArroyo Grande

30 Sacramento-Roseville-

Arden-Arcade

Year-Over-Year Growth. Kankakee County is regarded among the fastest-growing metros in Illinois and benefits from its geographic location 45 miles south of downtown

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LEADING

TOP 30 Metros Year-Over-Year Growth Rank CITY/MSA 1

Kankakee

State

LOCATIONS

Rank Within Leading Locations

TOP 30 Metros Five-Year Economic Growth Rank CITY/MSA

State

Rank Within Leading Locations

Napa

Carson City

Elkhart-Goshen

Reno

Dalton

196

Oakland-Hayward-Berkeley

Pine Bluff

299

San Francisco-Redwood CitySouth San Francisco

Norwich-New London

San Jose-Sunnyvale-Santa Clara

Elkhart-Goshen

Reno

Kokomo

Santa Cruz-Watsonville

Sheboygan

St. George

San Francisco-Redwood City- South San Francisco CA

Columbus

Bend-Redmond

Boulder

Detroit-Dearborn-Livonia

Santa Cruz-Watsonville

Gainesville

Sumter

107

Grand Rapids-Wyoming

Merced

166

Vallejo-Fairfield

Mansfield

211

Wausau

Glens Falls

Atlanta-Sandy Springs-Roswell

San Jose-SunnyvaleSanta Clara

Warren-Troy-Farmington Hills

Terre Haute

220

Charleston-North Charleston

Redding

Camden

150

22T Decatur 24

Barnstable Town

Salt Lake City

Springfield

Lake County-Kenosha County

IL-WI

Detroit-Dearborn-Livonia

Wheeling

WV-OH

231

Evansville

IN-KY

102

Kankakee

Provo-Orem

Riverside-San BernardinoOntario

112

Denver-Aurora-Lakewood

Santa Rosa

North Port-Sarasota-Bradenton

114

Cincinnati

OH-KY-IN

Sheboygan

Anaheim-Santa Ana-Irvine

Portland-Vancouver-Hillsboro

OR-WA

Oakland-Hayward-Berkeley

Fort Wayne

132

16T Fort Collins

29T Battle Creek

Chicago along the I-57 corridor. In 2014–2016 the total capital

utilities, fiber, and workforce” in a “diverse business

investment in Kankakee County exceeded $1.2 billion. Its

community, including Fortune and Global 500 companies.”

website emphasizes “ready access to the interstate, rail, all

Additionally, two Enterprise Zones provide property tax

AREA DEVELOPMENT

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

6/5/18 3:29 PM

Emsi is the industry leader in labor market data and expert analysis to professionals in economic development, workforce development, commercial real estate, higher education, and talent acquisition. Emsi provides regional workforce, economic, and location intelligence data to aid businesses and communities in site selection decisions, workforce advancement, regional comparisons, and retention and expansion efforts. Learn more at www.economicmodeling.com.

abatement, sales tax exemptions, and other growth incentives. Needless to say, “Creating a competitive position varies based

easy access to the Silver State’s multi-modal infrastructure, and close proximity to major U.S. markets and deep-sea

on the type of firm that is expanding,” Chmura says. “Some

ports also play a role in the growth of the area’s advanced

manufacturing plants might need proximity to rail or a large water

manufacturing, logistics, and construction industries.”

supply, while software providers need good Internet access.” Metro size also did not determine whether or not a

In essence, this is what is driving growth in many U.S. metros in today’s economy.

location showed economic strength or longer-range economic growth. Small metros like Elkhart-Goshen, Ind., and Napa, Calif., took the first two spots in these categories, with ElkhartGoshen ranked No. 1 for Economic Strength and No. 2 for Five-Year Economic Growth, while Napa was No.1 for Five-Year Economic Growth and No. 2 for Economic Strength. When asked about Elkhart-Goshen’s success, Mark A. Dobson, President/CEO of the Economic Development Corporation (EDC) of Elkhart County, told Area Development, “At the height of the Great Recession, we never lost our optimism. This amazing renaissance was led by our entrepreneurial spirit. Corporate leadership combined with a workforce that has an amazing work ethic to drive our recovery. No matter what we faced, we remained true to vision.” Carson City, Nev., also has experienced a remarkable trajectory. Once known for the Comstock Lode, today Carson City ranks third among the Top 20 Small Metros and ninth overall. In 2015, it ranked 308th overall; in 2016, 191st overall; and in 2017, 163rd overall. Part of the reason for its ascent is Year-Over-Year Growth.

˚˚˚

LEADING METRO LOCATIONS SPONSORS

NEVADA

Stan Thomas, Exec. VP, Business Development Economic Development Authority of Western Nevada (EDAWN) 5190 Neil Road, Ste. 110 Reno, NV 89502 775-829-3731 SThomas@edawn.org www.edawn.org

INDIANA

Mark A. Dobson, IOM, AE – President & CEO Economic Development Corporation of Elkhart County 300 NIBCO Parkway, Suite 201 Elkhart, IN 46516 574-293-5627 Cell: 574-536-9083 mark@elkhartcountybiz.com www.elkhartcountybiz.com Jason Hester, CEcD, Executive Director Great Columbus Economic Development Corporation 440 Fifth Street Columbus, IN 47201 812-378-7300 jhester@columbusin.org www.ColumbusIN.org

Robert Hooper, president and CEO of the Northern Nevada Development Authority, attributes the region’s growth to Nevada’s governor and state legislature putting in place “the right formula for recovery and job creation” during the Great Recession. “This allowed Carson City to leverage its streamlined building process, attractive tax structure and lowcost fees, economical industrial real estate, and competitive utility rates for commercial operations to stabilize and grow its economy,” he says. “The city’s geographic location,

RENO, NEVADA Leading Metro Locations 2018 #1 — Mountain Region #1 — Mid-Size Metros #3 — Year-Over-Year Growth #4 — Overall Rank #6 — Five-Year Economic Growth #7 — Economic Strength #16 — Prime Workforce

AREA DEVELOPMENT | Q2/2018

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ADINDEXWEBDIRECTORY Advertiser

Page Advertiser

ARIZONA

City of Mesa kim.lofgreen@mesaaz.gov www.MesaAZ.gov/economic

CONNECTICUT

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

FLORIDA

City of Cape Coral Economic Development 1 ecodev@capecoral.net www.capecoral.net www.BizCapeCoral.com Greater Fort Lauderdale info@gflalliance.org www.GFLAlliance.org

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

Emsi 26 www.EconomicModeling.com/cre 12, 13

Greater Columbus Indiana Economic Development Corporation jhester@columbusin.org www.GreaterColumbusIN.org

KENTUCKY

Bullitt County Economic Development Authority 57 jsnider@gobullittky.com www.GoBullittKY.com Kentucky Cabinet for Economic Development C4 John.Bevington@ky.gov www.ThinkKentucky.com

MICHIGAN

Michigan Economic Development Corporation 47 whiteheadn@michigan.org www.MichiganBusiness.org/AD

MISSISSIPPI

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

The industry’s most respected magazine since 1965

NORTH CAROLINA

Economic Development Partnership of North Carolina (EDPNC) katy.parker@edpnc.com www.edpnc.com

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

OHIO

JobsOhio 5 crume@jobs-ohio.com www.Jobs-Ohio.com Santee Cooper Economic Development wmccall@santeecooper.com www.PoweringSC.com

76, C3

Blount Partnership bdaniels@blountpartnership.com www.BlountIndustry.com Tennessee Department of Economic and Community Development allen.borden@tn.gov www.TNECD.com

TEXAS

INDIANA

The Economic Development Corporation of Elkhart County mark@elkhartcountybiz.com www.ElkhartCountyBiz.com

Economic Development Authority of Western Nevada (EDAWN) SThomas@edawn.org www.edawn.org

TENNESSEE

IDAHO

Italian Trade Agency www.ice.it www.id.ice.it

Print Media Area Development Magazine

NEVADA

SOUTH CAROLINA

GEORGIA

ILLINOIS

Page

Who we are. What we do.

17, 19, 21

Odessa Development Corporation WBurnett@odessaecodev.com www.OdessaTex.com

Fauquier County Economic Development miles.friedman@fauquiercounty.gov www.FauquierBusiness.com Newport News Economic Development Authority marketing@nn.gov www.NewportNewsVA.com Virginia Beach Department of Economic Development vabeachbio@vbgov.com VaBeachBio.com www.YesVirginiaBeach.com

Face to Face Consultants Forums The industry’s leading best practices conference events for economic developers

The world’s most viewed building and site database Custom GIS Applications Affordable cutting-edge GIS technology for your website

VIRGINIA

Botetourt County Department of Economic Development kmcfadyen@BOTETOURTVA.GOV www.co.botetourt.va.us

The leading website for corporate site and facility planning

Online Database Marketing C2

City of Dallas ecodevinfo@dallascityhall.com www.DallasEcoDev.org

Texas Economic Development Corporation robert@businessintexas.com www.BusinessInTexas.com www.GoBigInTexas.com

Online Media Area Development.com & Newsletters

Let us work with you. Add to your marketing success. Area Development Magazine 400 Post Ave., Westbury, NY 11590 516-338-0900 Fax: 516-338-0100 www.areadevelopment.com

AREA DEVELOPMENT | Q2/2018

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