2019 CEO Guide to Site Selection

2019 CEO GUIDE TO

SITE SELECTION

THE LABOR MARKET IS CHANGING: IS YOUR COMPANY READY? JOEL KOTKIN AND MARK SCHILL

61 2019 CEO GUIDE TO SITE SELECTION

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A CEO’S GUIDE TO SITE SELEC TION 2019

N

THANK YOU, MR. BEZOS

o matter what you think of Amazon’s HQ2 safari, you’ve got to admit it’s one of the all-time greatest publicity stunts in the history of corporate America. A quick HQ2 search of Google News returns a stunning 3.5 million entries and 17 pages of links to stories from just late October through mid-November. If any press is good press, it’s hard to imagine a better result.

A lot of the press, of course, has not been so hot. As you’d expect, Amazon has been blasted from both the right and left for “crony capitalism,”“corporate welfare,” etc. That’s silly.

State EcDev folks are a pretty savvy bunch. They get what’s at stake here—even if the blathering class does not.

There’s an understandable hangover from the whole exhausting bake-off. But if you think about it, simple math dictates that the fix was in from the start. You need a truly massive local population to fill 25,000 new jobs of any kind, let alone the most-difficult-to-fill high-tech jobs (the national unemployment rate for those with a college degree is hovering at around 2 percent as I’m writing this).

Amazon admitted as much by splitting the project in two and then situating it in two of the largest, best-educated cities in the nation. In retrospect, it’s hard to imagine them going anywhere else, isn’t it?

Rather than lament lost opportunity, here’s another way to see things: In ginning up the Great Amazonian Headquarters Hunt, Jeff Bezos did the rest of the CEOs in America—and their counterparts in state and local govern-

ment—a huge service. He provided an impetus for EcDev departments all over the country to really focus on helping business. Not just tax breaks, but more important stuff like education of their workforce, road congestion, housing, airports, energy, infrastructure, crime, quality of life—all the things that government should be thinking about when it comes to building the economy.

So while any CEO reading this would, of course, love to find the same kind of people Amazon is searching for, the truth is that almost none of you need to find 50,000 of them in the next couple years. But 25 or 250—or maybe even 2,500—great people? That’s a different story. Why not just follow the trail laid down by Amazon—the hundreds of locales around the nation that may not be right for HQ2 (or even an HQ for you), but would be a great place for a satellite office or expansion site. Chances are the local governments in a hundred places are more prepared to talk with you than ever before.

In the pages that follow, we’ve tried to make it even simpler with an easy-to-digest, state-by-state, economy-by-economy catalog of places for 2019. It starts with a provocative and contrarian take by demographer Joel Kotkin about the places to find the best labor, some of which may not be top of mind. We hope you’ll find it useful as you build whatever it is you’re building—even if it never makes the news.

—Dan Bigman, Editor, Chief Executive

2019 CEO GUIDE TO SITE SELECTION 1

T H O U G H T LE A D E R S H I P PR OV I D E D BY T H E ECO N O M I C D E V E LO PM 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

NORTH CAROLINA’S

TALENT EDGE Home to the Research Triangle, the university-rich Tar Heel State attracts businesses seeking skilled tech workers.

FOR TECHNOLOGY COMPANIES HIRING in Silicon Valley, it’s not just a war for talent—it’s a bloodbath. “That’s literally how some of them will describe it,” says Chris Chung, CEO of the Economic Development Partnership of North Carolina (EDPNC). These smaller companies continue to lose their best tech talent to behemoths like Google and Facebook, “and for not that much more money,” says Chung. “So a lot of them are looking at where else in the U.S. they can expand where they won’t be locked into this mortal combat for talent.”

Those leaving legacy tech hubs—citing high taxes, exhorbitant cost of living and cut-throat competition for a shrinking talent pool—are finding homes in other states offering business-friendly regulations, affordable living and an appealing quality of life. North Carolina is one such state. It offers a 2.5 percent corporate tax rate—the lowest among all states with the levy—and a cost of living below the national average.

Boasting the second-fastest-growing IT industry in the U.S. and a sizable pipeline of skilled tech talent, North Carolina already houses heavy-hitters such as Cisco, SAS and Red Hat, as well as thriving startups such as Pendo and AvidXchange. Two Fortune 500 companies—Honeywell and Advance Auto Parts—recently announced plans to move their corporate headquarters to Charlotte and Raleigh, respectively, citing available tech talent as a major draw. And last summer, when India-based Infosys opened its Raleigh technology and innovation hub, CEO Salil Perekh praised the advantages of North Carolina’s “highly skilled technology workforce and strong higher-education ecosystem.”

That ecosystem boasts 53 universities—including

Duke, UNC-Chapel Hill, North Carolina State University and North Carolina A&T University—and 58 community colleges, which together produce more than 22,000 STEM graduates annually. The new Infosys tech hub just opened in August of 2018, but with its goal of hiring 2,000 new tech workers by 2021, the company hasn’t wasted any time making strategic connections with that educational infrastructure. “Our partnerships with institutions of higher education have already helped to create a pipeline of talent for us,” says Ravi Kumar, president of Infosys.

To accommodate the growing population of tech companies seeking talent in North Carolina and its Research Triangle region—with software development, financial technology and health IT leading the pack—Wake Technical Community College, already one of the largest community colleges in the country, added a sixth campus in 2018 to cater exclusively to tech employers. “[Wake Tech] is working closely with those companies to under-

stand what hard skills they’re going to need, whether it’s analytics, cloud, software development, A.I., machine learning,” says Chung. Among those helping to develop course curricula are IBM, Lenovo and Cisco, which has its second-largest presence, outside of California, in the Research Triangle, Chung adds. “Wake Tech has aligned their direction with what they’re hearing from the industry about their needs today, five years from now and even 10 years from now, so they’re ahead of the curve in making sure graduates leave school with the right credentials, the right training and right education.”

In addition to filling the pipeline with new graduates, North Carolina is also bringing tech companies and military veterans together. The state has more than 100,000 members in active military duty and about one-fifth re-entering civilian life each year, says Chung. “They have a lot of the soft skills, the intangibles, and some even have the relevant hard skills and technical training. So, as a company, how do you tap into that?”

Those seeking to hire the best, particularly in a low unemployment climate, know they have to broaden their outreach in order to appeal to every possible segment of the talent pool. North Carolina claims the No. 1 spot for women in technology, who account for 36.3 percent of IT jobs, according to the North Carolina State of Technology 2018 Industry Report. That is, in large part, owed to women in technology initiatives supported by companies like Red Hat. “The more that we have scarcity of tech talent, the more we are going to be looking to recruit women in and make them feel welcome and included,” says DeLisa Alexander, Red Hat’s

North Carolina boasts the second-fastestgrowing IT industry in the U.S. and a sizable pipeline of skilled tech talent. chief people officer. “And the more innovation and problem-solving we’re going to have because greater diversity leads to all of those things.”

Leading PC manufacturer Lenovo, which has dual headquarters in Beijing and Morrisville, North Carolina, places a premium on the strong startup ecosystem and culture of collaboration the company has found in the state. “We have partnerships with other North Carolina companies, including IBM, SAS, Red Hat and more,” says Ajit Sivadasan, VP/GM global ecommerce, digital marketing and platform at Lenovo.

“We collaborate, and we know employees in each of these companies where we’re working together. That collaboration definitely helps us solve some problems—and without that proximity to one another, that can be difficult.”

Of course, in addition to a strong pipeline locally, companies in North Carolina need to be able to recruit the best from around the country. The draws there are the state’s affordability, culture and quality of life, says Chung, citing picturesque mountains, 300 miles of coastline and the temperate climate as additional draws. “A lot of employees want work-life balance, to be able to afford a home for their families and still be able to save money for the future,” he adds. “North Carolina offers all that and more.”

A CEO’S GUIDE TO SITE SELEC TION 2019 EDITOR-IN-CHIEF

TABLE OF CONTENTS 10 MEET THE NEW GOVERNORS

The election swept 18 new state chief executives into office. A field guide to who's who—and what they promised. By Jennifer Pellet

14 HOW THE LABOR MARKET IS CHANGING Far from the headlines, radical changes are reshaping the nation's economy. An exclusive study gets you ready for what's to come.

By Joel Kotkin and Mark Schill

27 THE STATE OF THE STATES

Snapshot reports, in alphabetical order, detail workforce quality, regulatory environment, business climate, tax policy, incentive programs and more for each of the contiguous states and D.C.

By Craig Guillot

Dan Bigman

EDITOR-AT-LARGE

Jennifer Pellet Jeffrey Sonnenfeld Jeffrey Cunningham MANAGING EDITOR

Patrick Gorman DIGITAL EDITOR

Gabe Perna

PRODUCTION DIRECTOR

Rose Sullivan

CHIEF COPYEDITOR

Rebecca M. Cooper ART DIRECTORS

Carole Erger-Fass Gayle Erickson Alli Lankford RESEARCH EDITOR

Melanie C. Nolen

CONTRIBUTING EDITORS

Dale Buss Craig Guillot Joel Kotkin C.J. Prince Mark Schill

EDITOR EMERITUS

J.P. Donlon PUBLISHER

Christopher J. Chalk 847-730-3662 | cchalk@chiefexecutive.net PUBLISHER, CORPORATE BOARD MEMBER/ DIRECTOR OF EVENTS, CHIEF EXECUTIVE GROUP

Jamie Tassa 615-592-1506 | jtassa@chiefexecutive.net VICE PRESIDENT

Phillip Wren 203-930-2708 | pwren@chiefexecutive.net DIRECTOR, BUSINESS DEVELOPMENT

Lisa Cooper 203-889-4983 | lcooper@chiefexecutive.net DIRECTOR, BUSINESS DEVELOPMENT

Liz Irving 203-889-4976 | lirving@chiefexecutive.net DIRECTOR, BUSINESS DEVELOPMENT

Gabriella Kallay 203-930-2918 | gkallay@chiefexecutive.net DIRECTOR, BUSINESS DEVELOPMENT

Marc Richards 203-930-2705 | mrichards@chiefexecutive.net MANAGER, STRATEGIC PARTNERSHIPS

Rachel O’Rourke 615-592-1198 | rorourke@chiefexecutive.net CLIENT SUCCESS MANAGER

Ashley Gabriele 203-889-4989 | agabriele@chiefexecutive.net

CHIEF EXECUTIVE GROUP EXECUTIVE CHAIRMAN

Wayne Cooper

CHIEF EXECUTIVE OFFICER

Marshall Cooper

A NOTE ON SOURCES All state-page information was compiled from a variety of sources, including state and local economic development agencies (incentives, deals, big company listings); state and local press reports (deals, governors’ and governor-elect quotes, C-Suite testimonials); company press releases (deals, C-Suite testimonials); state governor’s offices and press releases (quotes, deals, C-Suite testimonials); campaign websites and press releases (quotes and related information); The Fortune 500 (headquarters locations); The Tax Foundation (tax ranking); The National Center for Education Statistics (high-school graduation rates); The U.S. Census Bureau (college degrees); The Bureau of Labor Statistics (unemployment, as of Oct-Nov, 2018); and Chief Executive’s Best and Worst States for Business database (quality of life).

CHIEF CONTENT OFFICER

Dan Bigman

MANAGING DIRECTOR

Scott Budd

MARKETING DIRECTOR

Debra Menter

VICE PRESIDENT, HUMAN RESOURCES

Melanie Haniph CONTROLLER

Steve Hallem

CAN WE FIND A SHOVEL-READY SITE IN A BUSINESS-FRIENDLY STATE?

In WisconsinŽ, we can. Minnesota’s Diversified Manufacturing Corporation wanted to consolidate its expanding operations under one roof. WEDC helped them look one state over to make it happen.

Using our Certified Sites Program to find a development-ready site, they were able to cost-effectively move their entire company to Prescott, Wisconsin. Just think what we could make happen for your business.

See the whole story at WEDC.org/success-stories-dmc.

THO UG HT L E A D ER S HIP P ROV I DE D BY DE LO I T T E C ONS U LT I NG LL P

Understanding the Social Impacts of Corporate Investment

BY DARIN BUELOW

T

The idea that a company’s mission can transcend profit is becoming more mainstream. More businesses are realizing that by reorienting around a purpose-driven culture, they can attract and energize employees, delight and retain customers and achieve better business outcomes for shareholders.1 As companies transform into purpose-driven businesses, the need to articulate impact beyond financial measures has become more acute, especially as shareholders are increasingly evaluating potential long-term value creation through the lens of anticipated social and environmental impact.

Companies and communities have traditionally relied on economic impact tools to measure the benefits of a business operation on a community. States and cities seek to attract and retain business investment to help achieve their mission to create jobs, elevate the standard of living for residents (grow income), increase the tax base and diversify the economy. Companies, on the other hand, will portray the value of their corporate investments (existing and future) in terms of job creation and capital investment. Governments and businesses typically utilize economic impact modeling techniques to express the value of job creation and capital investment in terms of direct, indirect and induced effects on the economy.

The problem is that economic impact tools result in somewhat esoteric jobs, output, and income figures that are often difficult to comprehend by stakeholders, the press, and the public. Many cities believe that new and existing business activity is beneficial for the community, such as reduction in poverty, increases in average income or educational outcomes, but have had no ability to estimate these social impacts. Purpose-driven companies, in turn, want the ability to demonstrate how their business activities enable positive social outcomes in each community that hosts them. Once equipped with social impact measures, senior executives can make changes to their existing supply chain, manufacturing operations and footprint to optimize social outcomes.

DARIN BUELOW (dbuelow@deloitte.com) is a principal at Deloitte Consulting LLP and leads the Real Estate & Location Strategy practice.

Deloitte has been working to address this need by researching and developing new tools that estimate social impacts. By combining newly available geospatial data on community statistics and corporate investment projects with sophisticated statistical analysis, we can now forecast the likely social consequences of a business investment in a specific location along defined community metrics. Deloitte’s Social Impact Measurement Model (SIMM) estimates the social impacts that are likely to arise from corporate investment projects. This machine-learning model estimates the social impact of investments at the U.S. county level for the four years following the investment, analyzing 142 social measures ranging from child poverty and reading proficiency to carpooling and population migration. While the SIMM does not isolate an investment as the sole cause of a change to a social measure, the model forecasts with a very high degree of accuracy how social outcomes will change as a result of the size and type of capital investments in a geography.

How the Social Impact Measurement Model Works Knowing that communities are undergoing constant change, Deloitte’s approach to estimating social impacts of corporate investments needed to control for natural growth, economic cycles and other ambient effects cities experience. To accomplish this control, Deloitte used a “matched pair” design, wherein we found similar counties, one of which experienced a corporate deployment project, while the other did not. This approach is similar to NASA’s Twins Study2, in which one of the twins (Scott Kelly) went into space for one year while the other twin (Mark Kelly) remained on Earth as a control subject. NASA has been observing and reporting on the differences in the twins’ physiology since Scott Kelly’s return. In Deloitte’s SIMM, by observing how the twin counties changed over time, we found causal inferences across a multitude of social outcomes.

Quantifying the estimated social impacts of a capital investment allows CEOs, government relations teams, economic development entities, and other interested parties to bring data to discussions about the community benefits of proposed or existing corporate investments. Understanding what a specific investment’s impact might be, as well as why certain locations would see greater or lesser improvements than others, can support more informed decision-making by companies, community leaders and policymakers.

The SIMM gives corporate leaders more data that can help guide business decisions, enabling them to ask more sophisticated questions about the social and community impact of their location footprint choices, such as: • Where should we consider making capital investments? For which communities would the positive social benefits of a corporate deployment be the greatest?

• Are our company’s capital investments consistent with our social impact goals and expressed mission?

• For community-specific project investments we have made over the past five years, what has been the social “payoff”?

• What might we do to amplify the good social impact and to ameliorate possible adverse social impacts?

For example, applying the SIMM can shed light on the ways investments of the same amount in the same industry can have different impacts in different locations. For instance, population density often matters: the SIMM forecasts that a $500 million investment in a rural, wealthy county will have less overall social impact than the same level of investment in a more densely populated, wealthy county. Similarly, investments can create more meaningful change in childhood poverty levels in urban poorer counties; the poorest children in these counties also benefit in educational attainment for reading and math scores.

Differences between Economic Impact vs. Social Impact models Economic Impact Model Results (Direct, Indirect, and Induced)



Jobs Output (Gross Local Product) Income

Social Impact Model Results (up to 142 variables)



Education (Attainment, Proficiency, Increase in Scores, etc.)

Socio-Economic (% Living in Poverty, etc.)

Family and Migration (% Single Parent Households, etc.)

Housing (Value Appreciation, % Owner-Occupied, etc.)

Income and Employment (Median Household Income, Reduction in Unemployment, etc.)

Case Study: New manufacturing investment in the Midwest A leading process manufacturer sought to better understand the potential social benefits arising from its proposed $250M, 300-job investment in a smaller Midwestern community. Deloitte leveraged the Social Impact Measurement Model to estimate the social impacts (both with and without the investment) on the county across several dimensions: 1

3

2

4

TO BE CLEAR, THE SIMM ESTIMATE IS JUST THAT—an estimate. It is meant to supplement established methods of gathering information, conducting analyses and bringing the derived insights into the capital allocation and planning process.

What it offers is a quantitative and statistically rigorous way of linking financial inputs to social outcomes in a way that has not been done before. By estimating the social impacts of operations, CEOs are better equipped to support the transformation to a purpose-driven business and drive engagement with employees, customers, and stakeholders.

Harvard Business Review, 2018, https://hbr.org/2018/07/creating-a-purpose-driven-organization NASA, 2018, https://www.nasa.gov/twins-study

[1 ] [2]

ABOUT DELOITTE Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (DTTL), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the U.S. member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.

Are you looking beyond the obvious?

A sound location strategy is a critical component of a company’s overall business strategy. As such, careful consideration of site selection up front can help ensure that your organization’s real estate footprint will serve future generations for years to come and, ultimately, help drive profits. From country analysis to detailed labor market and site due diligence, Deloitte’s Location Strategy practice brings rigor, objectivity, and multi-disciplinary analytics to corporate location decisions.

Learn more: www.deloitte.com/us/locationstrategy

Copyright © 2018 Deloitte Development LLC, All rights reserved

Copyright © 2018 Deloitte Development LLC. All rights reserved.

MEET AMERICA’S

NEW GOVERNORS Brad Little (ID-R) A third-generation Idahoan who was formerly the state’s lieutenant governor, Little plans to focus on lowering taxes, creating great jobs for Idaho’s next generation and low-cost healthcare.

Mark Gordon (WY-R) A rancher and former state treasurer, Gordon won over voters in November with a pledge to rein in spending, push back against federal overreach and defend conservative values.

Kristi Noem (SD-R) Born and raised on a farm, Noem is a small business owner who served four terms as a representative in the U.S. House, where she was a member of the Ways and Means Committee.

Gavin Newsom (CA-D) Formerly mayor of San Francisco and then California’s lieutenant governor, Newsom has been a vocal advocate for marriage equality, universal healthcare and universal pre-K and gun safety.

Steve Sisolak (NV-D) A business owner who served as chairman of the state’s Clark County Commission, Sisolak pledged to invest in education and recruit job-creating companies to his state.

Jared Polis (CO-D) An entrepreneur and former U.S. representative, Polis pledged support for raising the minimum wage, addressing income inequality and closing tax loopholes.

Michelle Lujan Grisham (NM-D) The state’s U.S. representative since 2012, Grisham pledged to create jobs and make New Mexico a leader in methane mitigation and renewable energy.

Laura Kelly (KS-D) Formerly a U.S. senator, Kelly pledged to expand Medicaid and reverse the fiscal and educational policies put in place by her predecessor.

10 2019 CEO GUIDE TO SITE SELECTION

Kevin Stitt (OK-R) An entrepreneur and fourth-generation Oklahoman, Stitt plans to capitalize on President Trump’s tax cuts and aggressively recruit businesses to create jobs.

The 2018 election ushered in a sweeping change in leadership at the state level, with 18 new state chief executives.

Tony Evers (WI-D) Formerly Wisconsin’s state superintendent of schools, Evers plans to invest in quality education and childcare, stabilizing the state’s health insurance market and addressing Wisconsin’s transportation crisis.

Janet Mills (ME-D) Mills, who served as a U.S. representative and then Maine’s attorney general, pledged to focus on economic growth, ensuring access to healthcare, creating jobs and addressing the opiod epidemic.

Ned Lamont (CT-D) An entrepreneur who ran for the Senate against Joe Lieberman in 2006, Lamont plans to cut property taxes for the middleclass, revitalize Connecticut’s economy and push toward universal healthcare.

Gretchen Whitmer (MI-D) Whitmer, who served as a U.S. representative from 2001 to 2006 and U.S. senator from 2006 to 2015, pledged to improve the state’s schools, roads and water systems.

Mike DeWine (OH-R) Formerly U.S. senator and then Ohio’s state attorney general, DeWine seeks to create and retain jobs in the state by curbing excessive business taxation and regulation.

Bill Lee (TN-R) A businessman who served as CEO of his family’s construction company from 1992 to 2016, Lee pledged to reduce the tax burden on job creators and invest in educating the state’s workers.

Brian Kemp (GA-R) Formerly Georgia’s secretary of state, Kemp pledged to oppose Medicaid expansion, cut burdensome regulations, streamline state government and deliver tax reform.

Mike Parson (MO-R) A farmer and small business owner, Parson replaces Gov. Eric Greitens, who stepped down while under investigation. Parson is a former U.S. representative and state senator who supports tax cuts and deregulation.

Ron DeSantis (FL-R) A former U.S. representative, DeSantis pledged to restore the Everglades, stop illegal immigration, accelerate business growth and defend the right to life.

2019 CEO GUIDE TO SITE SELECTION 11

KPMG’s learning, development and innovation center In Orlando, Florida

SITE SELECTION: IT’S ALL ABOUT STRATEGY W

HEN HOLIDAY RETIREMENT CHOSE WINTER PARK, Florida for the company’s new home, CEO Lilly Donohue knew it was nearly the farthest possible location within the contiguous U.S. from the company’s previous headquarters location in Lake Oswego, Oregon. Only a small percentage of corporate employees made the move east, she says, but bringing in new, Orlando-based talent with roots in hospitality was part of a much larger strategic plan to further evolve the 47-year-old company.

“We had to remember why we do what we do. That had gotten lost over the previous couple of decades,” says Donohue, who took the top post in January 2016.

As the country’s largest provider of independent senior living, Holiday Retirement manages more than 260 retirement communities, which makes real estate expenditures a sizable line item in the budget. Because of that, the company’s focus over time had shifted, emphasizing real estate valuation and selection over service. Donohue sought to reorient the company’s priorities, putting service back on top. “That’s what ultimately drives people to live in our communities, hence creating real estate value—not the other way around. It’s not, ‘build the real estate and then they will come.‘ It’s ’provide great experiences and then they will come, and then your real estate is worth something.’”

Access to Talent Service starts with people, of course, and access to top talent became priority No. 1 for Donohue. In a climate where unemployment figures are at historical lows, companies across the country are seeking ways to make jobs look more attractive to top prospects. That’s why, although reducing operating costs is an important goal, site selection should be a strategic decision and not just a financial one, says Michael Brown, CEO of Wyndham Destinations. In 2018, when Wyndham Worldwide split in two, Wyndham Destinations became the world’s largest publicly traded timeshare provider.

Brown had to consider whether the existing headquarters in Parsippany, New Jersey, made sense now that Wyndham was a conglomerate operating both hotel and timeshare business lines. “When you look at the overall goal for a separation, it’s always to create clarity in the market for what that business is all about.

Investors today want to invest in a business with a singular vision, and now we have that around vacation ownership.”

But New Jersey, with its cold winters bracketed by long rainy seasons, wasn’t all that suggestive of warm vacations, as sunny Florida was. “The heart of the industry is here [in Orlando] and it always has been,” he says. “If you

“One of the key factors in choosing Orlando was the innovation we see here.”

—Lynne Doughtie, Chairman and CEO, KPMG

T H O U G H T LE AD E R S H I P PR OV I D E D BY O R L AN D O ECO N O M I C PAR T N E R S H I P

Orlando’s strong business climate appeals to companies looking for accessibility, a strong climate for business and a skilled talent pool. were to draw a five-mile radius around our office, you’re going to hit every major timeshare brand in the world.”

Being adjacent to the competition would give Wyndham access to the best of the hospitality talent pool and make it easier to stay abreast of the industry’s challenges.

The site selection decision wasn’t as intuitive for KPMG LLP, the professional services firm, when it was looking for a home for what Lynne Doughtie, Chairman and CEO, calls the firm’s largest capital investment ever: a $450 million, 800,000-square-foot, state-of-the-art training facility, designed to be a magnet for talent. “It’s an investment in our people,” she says. “We’re creating a world-class environment that inspires our professionals to achieve their fullest potential and helps enable us to attract the best talent.”

KPMG conducted a comprehensive search of potential U.S. cities, ultimately whittling down a list of 50 to four finalists that could potentially meet its long list of criteria.

These included the right culture, business climate, community partnerships and easy access to a major airport, given plans to bring in 800 employees each week for training. Finally, KPMG wanted to build in a city that appeared to have a “future-forward vision” that would resonate with its own strategy.

Ultimately, that led to Lake Nona, a 10,000-acre community in Orlando that features futuristic amenities such as an underground uber-high-speed fiber-optic network, intelligent buildings, smart work centers and Bluetooth door entry. While there were many positives about the location, “one of the key factors in choosing Orlando was the innovation we see here,” says Doughtie.

partnerships with local colleges that have strong hospitality programs, such as Rollins College, Valencia College and Rosen College at the University of Central Florida.

“That excites me because it allows me to touch [students] earlier in their career cycles,” she says, noting that, like manufacturing, her industry hasn’t had an easy time attracting the younger set.

“I’m trying to get people to think about aging differently. It’s a pretty awesome job, frankly, something that I found late in my life, but I really feel I found my life’s work. There are so many wonderful reasons to be doing this, and we think it’s important to attract a diverse talent pool.”

She hopes that recent accolades—a Best Place to Work certification from the Great Place to Work Institute and inclusion in Fortune’s first annual “Best Workplaces for Aging Services” list—will help Holiday stand out to upcoming graduating classes. The move across the country, which brought the sort of cultural growing pains associated with staffing up by 150 people, wasn’t easy. It helped to have the Orlando Economic Partnership making quick connections with other businesses in the area that were able to share information and best practices, says Donohue.

All in all, the hard work was worth it. “If you have a really clear mission and you’re transparent and value your people, you’d be amazed at the kind of energy, work creativity and effectiveness that really comes together,” she says. “Scary as it was going through the change, we couldn’t be happier about where we are today.”

“The heart of the industry is here [in Orlando] and it always has been.”

—Michael Brown, CEO, Wyndham Destinations

Appealing to Next-Gen Workers The new KPMG learning center will be similarly futuristic, intended to appeal to the next generation of workers by reflecting the company’s commitment to learning and innovation. “We want to ensure that each stay at the facility provides our professionals at all levels the opportunity to learn, innovate, connect and immerse themselves in KPMG’s unique culture,” says Laura Newinski, vice chair of operations, KPMG. Donohue is similarly enthusiastic about potential

THE LABOR MARKET IS CHANGING:

IS YOUR COMPANY

READY? Las Vegas

3.0%

Nashville

3.4%

Austin

3.2%

AMERICA’S NEW HOT JOB HUBS

Sunbelt cities, such as Nashville, Atlanta and Las Vegas, dominated U.S. job growth from 2016-2017.

Nashville, TN

3.4%

Austin, TX

3.2%

Orlando, FL

3.2%

Riverside, CA

3.0%

Las Vegas, NV

3.0%

Jacksonville, FL

3.0%

Charlotte, NC

2.8%

Phoenix, AZ

2.7%

Atlanta, GA

2.7%

Portland, OR

2.6%

Source for all statistical data: EMSI, March, 2018

14 2019 CEO GUIDE TO SITE SELECTION

Forget HQ2. The real U.S. economic story right now is the radical shift in the types of jobs being created and where employment growth is happening. Here’s what the data tells us.

BY JOEL KOTKIN AND MARK SCHILL EVER SINCE THE ECONOMY BEGAN TO BOUNCE BACK, with unemployment at an all-time low, the familiar refrain from pundits has been that growth, particularly of the higher wage variety, would head to the tech-oriented elite cities along the coasts. Yet, today, despite the headlines about Amazon’s expansions in New York and Washington, D.C., the real story is the aggressive growth taking place on a changing stage, both in terms of geography and changing labor demands.

While tech is still among the fastest-growing job categories, up 29 percent since 2010, that’s not where the biggest shortfalls are now. Instead, jobs in food preparation, personal service, production and construction have the highest job-opening rates. In skilled blue-collar fields, there’s also the issue of a substantially older workforce—average age 45—than the general level.

An exclusive analysis of job trends for Chief Executive finds serious changes in the locale of economic growth.

Although the Silicon Valley, and, to a lesser extent, its urban annex of San Francisco, continues to create higher-wage jobs, the momentum there has shifted primarily to lower-cost, less-heavily-regulated economies. Similarly, some of the “super-star cities,” such as New York, Los Angeles, Chicago and Boston, are seeing only modest job growth, often at or below the national average.

This can be seen most clearly by comparing job growth over the past seven years to growth over the last year. Metropolitan job growth from 2010 to 2017 looks like a hip, high-tech central casting. Top five metros include Austin, San Jose-Sunnyvale and San Francisco. Last year’s numbers, however, show a distinct trend towards sunbelt cities, which accounted for all eight top-growing economies, including Nashville, Las Vegas, Jacksonville, Atlanta, Phoenix and Riverside-San Bernardino, an exurb east of Los Angeles.

THE LEAKING OF HIGH TECH The Bay Area metro area job picture remains robust, growing well above the national average, yet no longer outperforming all comers in tech growth. San Jose-Sunnyvale ranked second, with 25 percent growth

THAT WAS THEN

In contrast to the recent Sunbelt state-centric job growth, high-tech metro areas, such as Austin, San Jose and San Francisco, were the centers of expansion from 2010-2017.

JOB GROWTH 2010-2017

Austin, TX

28.7%

San Jose, CA

25.7%

Orlando, FL

25.1%

Grand Rapids, MI

24.9%

San Francisco, CA

23.2%

Raleigh, NC

23.0%

Charlotte, NC

22.9%

Riverside, CA

22.4%

Nashville, TN

22.3%

Salt Lake City, UT

22.3%

2019 CEO GUIDE TO SITE SELECTION 15

% WORKERS OVER 44 YEARS OLD

THE OLDER GUARD The occupations most dominated by Baby Boomers are beginning to turn over. Already, more than half of all managers, architects and engineers and manufacturing workers are over age 44, according to 2017 data.

56% 52% 51% 51% 50% 49% 49% 48% 48% 48% 47% 46% 45% 45% 44% 44% 44% 41% 41% 41% 39% 37% 25% 4%

Management Building and Grounds Cleaning and Maintenance Legal Architecture and Engineering Production Community and Social Service Installation, Maintenance and Repair Education, Training and Library Transportation and Material Moving Office and Administrative Support Business and Financial Operations Healthcare Practitioners and Technical Farming, Fishing and Forestry All Occupations Construction and Extraction Personal Care and Service Life, Physical and Social Science Arts, Design, Entertainment, Sports and Media Protective Service Sales and Related Healthcare Support Occupations Computer and Mathematical Food Preparation and Serving-Related Military-only

since 2010, but last year notched a respectable, but not overwhelming 15th, with San Francisco right behind at 16th. This reflects an ongoing shift of work in technology and business services to other markets.

We looked at the growth in computer and math-related jobs. Since 2010, the field, which includes 4.6 million workers, has been led by the Bay Area, which took two of the three fastest expansions of this critical sector. Last year, the San Jose area still ranked No. 2, but San Francisco, third since 2010, fell below 25 and slightly below the national average. The big gainers were first place Orlando, which added 7.3 percent to its employment in this field.

Other rising Sunbelt upstarts include Las Vegas and Atlanta. Perhaps more surprising, places like Cleveland and Kansas City are growing up to twice the national average in this critical field and far more than self-described “tech hubs” Washington, Los Angeles, Boston and San Diego, all of which are producing new tech jobs at or below the national average.

Much of the geographic widening of tech work is made possible by the growth of hightech business services, which tends to be more integrated with the economy and works often with non-high-tech sectors. The professional,

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scientific and technical services sector employs 1.7 million (36 percent) of computer and math workers, compared to just under 600,000 employed by the more celebrated software and Internet industries. More importantly, business services sectors generated 2.5 times more jobs for computer and mathematics workers than IT sector businesses since 2010.

The big issue behind this change may be costs, notably housing, as is widely admitted by tech industry leaders. Once wages are normalized, Bay Area workers’ relative salary plummets.

Overall, the average salary in San Jose turns out to be less, in real terms, than places like Minneapolis, Washington D.C., Raleigh, Kansas City or Austin. Migration patterns from the Bay Area have changed radically over the past five years, with more people leaving than coming.

Nearly half of millennials and more than half of all current residents say they are considering a move out.

THE BUSINESS OF BUSINESS SERVICES Employing more than 10 million workers, the biggest sector of high-wage jobs—paying $87,000 on average—comes from the business services sector. The dynamics here differ from what is traditionally considered high-tech in

WHERE THE GEEKS GO Tech firms may attract the headlines, but when it comes to actually hiring workers with backgrounds in computers and mathematics, business services firms dominate, creating 431,000 new high-tech jobs between 2010 and 2017.

MATH AND SCIENCE JOBS BY INDUSTRY 431K 171K 99K 88K 73K 38K 38K 25K 15K 12K 10K 10K 7K 4K

Professional, Scientific and Technical Services Information Finance and Insurance Administrative and Support and Waste Management and Remediation Management of Companies and Enterprises Government Healthcare and Social Assistance Manufacturing Educational Services Wholesale Trade Construction Other Services (except Public Administration) Utilities Real Estate, Rental and Leasing

that this is a field that may not be as amenable to the urban phenomena of single, young people sharing small, overpriced apartments. Along with its 1.7 million IT workers, the professional and technical services sector employs more than 900,000 in management occupations.

We took a deep dive into management occupations—including top executives and managers of all types of employees—to get a sense of where these higher-wage jobs (paying $43 an hour, $4 above computer and math-related jobs) are heading. The picture shows considerable change. Taking the pulse since 2010 shows San Francisco and San Jose ranking first and third, respectively, in growth.

But if we look at 2016-2017, the picture changes, with again the momentum weakening, particularly in San Francisco, which dropped from first in growth to a still-respectable 12th.

Who’s gaining? For the most part, it’s smaller, less-costly Sunbelt locations. Nashville and Las Vegas topped our list, but Phoenix, Atlanta, Salt Lake City and Jacksonville all made the top 10. Tech region standbys like Portland and Seattle are also increasingly outperforming other elite economies such as New York, Los Angeles and Boston by a wide margin.

These patterns are, if anything, more pronounced when we turn to financial management and general business operations services, as opposed to top management. Here it’s Orlando in fourth place since 2010, in first last year, with other Sunbelt cities, including Jacksonville, Raleigh, Las Vegas, Austin and

Charlotte, in the top 10. Although it placed second, Silicon Valley retained an impressive five percent growth. San Francisco fell from fifth to 22nd, while most other superstars are actually falling below the national average.

THE BLUE-COLLAR BOOM Whether due, at least partially, to President Trump’s policies, blue-collar America faces its most enviable situation in years. Wages are rising for lower-income workers for the first time in decades. Manufacturing employment, which flattened in the last year of President Obama’s term, has picked up, adding 1.2 million jobs since 2010 and 400,000 since November 2016, enjoying its best growth since the mid-1990s. Even retail, a big employer of blue-collar workers, has expanded. Critically, incomes are up for the lower deciles of the labor force, including youth.

One sign of a blue-collar resurgence: the most serious labor shortages tend to be in fields that suffered heavily in the recession, such as personal service, transportation, production and construction. We zeroed in on production workers like welders, machinists, fabricators and plant managers. This part of the economy has been traditionally concentrated in the “Rust Belt” along the Great Lakes but is now spreading to other parts of the country. Grand Rapids, the leader in this category since 2010, still held a respectable 11th place. Detroit, the epicenter of industrial America, did better, securing a strong sixth-

2019 CEO GUIDE TO SITE SELECTION 17

WHERE WAGES GO THE FARTHEST After adjusting median wages for cost of living, places like Minneapolis, Kansas City, Detroit, Columbus and Houston become much more competitive.

HOURLY WAGES, ADJUSTED FOR COST OF LIVING Washington, D.C./Arlington/Alexandria, VA

$21.19

Minneapolis/St. Paul/Bloomington, MN

$20.14

Kansas City, MO/KS

$19.50

Detroit/Warren/Dearborn, MI

$19.33

Columbus, OH

$19.21

Houston/The Woodlands/Sugar Land, TX

$19.18

Austin/Round Rock, TX

$19.11

Seattle/Tacoma/Bellevue, WA

$18.97

Raleigh, NC

$18.96

Cleveland/Elyria, OH

$18.79

Atlanta/Sandy Springs/Roswell, GA

$18.53

Cincinnati, OH

$18.44

Chicago/Naperville/Elgin, IL

$18.37

Nashville-Davidson/Murfreesboro/Franklin, TN

$18.31

Dallas/Fort Worth/Arlington, TX

$18.26

St. Louis, MO

$18.24

San Jose/Sunnyvale/Santa Clara, CA

$18.23

Birmingham/Hoover, AL

$18.16

Grand Rapids/Wyoming, MI

$18.13

Oklahoma City, OK

$18.02

Denver/Aurora/Lakewood, CO

$17.97

place finish, adding 2.3 percent to its already large manufacturing work force.

The biggest growth, however, is now largely in the sunbelt, as evidenced by the presence of No. 1-ranked Nashville, which added 3.9 percent to its industrial workforce last year.

Other sunbelt cities in the top 10 include Las Vegas, Jacksonville, Orlando and San Antonio, all emerging industrial powers. In contrast, many Northeast and West Coast areas saw a loss of jobs for production workers in the last year, including Seattle, Chicago, Los Angeles, San Diego, Philadelphia, New York and Boston.

Rustbelt cities may benefit from these trends. Although many places are declining, some are seeing millennial migration, as well as the greatest growth in seniors. Since 2010, notes demographer Wendell Cox, Indianapolis, Des Moines, Kansas City and Columbus have all enjoyed higher rates of millennial population growth than New York, Chicago, Boston, San Jose, San Francisco or Los Angeles.

WHAT THE FUTURE PORTENDS Given uncertainty around interest rates, the stock market, high-tech regulation and trade policy, it is not easy to predict the exact shape of the future. But the data seems to indicate a shift in the basic economic structure. Places like Silicon Valley, Seattle and Portland will

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continue to dominate in the high tech and some business service fields, but their growth rates appear to be slowing while new players emerge in both the less costly sunbelt and a select Midwestern markets like Columbus, Kansas City and Cleveland.

At the same time, there are big increases in fields that pay wages that will allow a middle-class lifestyle in a less expensive areas but would leave a family near poverty levels in New York, Los Angeles or the Bay Area. After adjusting for cost-of-living using the C2ER index, places like Minneapolis, Kansas City, Detroit, Columbus, Raleigh and Cleveland move into the top 10 for median wage.

Ultimately, this pattern is being reflected in migration out of California and the Northeast towards the sunbelt and a few Midwestern cities. These are also the areas that are showing the slowest decline in fertility, an issue that impacts both family migration and, in the long-term, the future of the job market.

The talent challenge may be shifting from luring workers from elite colleges toward developing local resources that emphasize the kind of specialized technical training needed locally.

In many places, these programs—both in the high schools and community colleges—were scrapped in favor of a concentration on fouryear degrees. But some areas are now taking

steps to correct these deficiencies by linking local high schools and technical colleges using a career academy model. Close to 30 percent of all computer-oriented jobs, what could be called “new collar” jobs, do not require a fouryear degree, notes a recent Brookings study.

For companies, this may mean rethinking the best places to profitably access human capital. Impossibly expensive regions, such as the Bay Area, may remain magnets only for the highest-end professionals, or those with family money, but not for those who earn more modest wages. Some of the slowest labor force growth, notes economist Jed Kolko, is precisely in markets that on the surface might be most attractive to workers. In some sense, elite markets like Boulder, Silicon Valley, Boston and Boston now have the same problem some rustbelt markets have had for years— even when there are jobs, it’s increasingly hard to attract people to the area to do them.

In contrast, lower cost areas like Greeley, Colorado, Provo, Boise, Austin, Orlando and Fayetteville, says Kolko, still have tight labor markets, but are still growing their labor forces. Yet, there’s also an important message for millennials and future generations: a college degree may not be as valuable as you have been told. The returns for college degrees have been in decline for at least a decade.

Perhaps the biggest opportunity, or challenge, may be in meeting growing needs for personal care, much of it to care for our rapidly aging population. This sector grew by 33 percent since 2010 and 5 percent in 2016-2017.

Many workers in the field would benefit from basic training in healthcare and gerontology, as opposed to a four-year or master’s degree.

The rapid movement of seniors to lower cost, mainly sunbelt regions and smaller cities, including in the Intermountain West, could help create a natural market for such work.

Overall the new trends provide an enormous opportunity for many areas of the country that can both accommodate blue collar and high-paid sectors, including big cities like Houston and Dallas, which are projected to lead the nation in new “mid-skilled jobs,” as well as many smaller communities. Their big challenge may lie in training workers in fields with the largest number of openings, such as construction and manufacturing.

THE ‘MIDDLE-SKILL’ BOOM While lower-paying jobs, such as personal care, transportation and food preparation grew fastest, higher-paying, middle-skill occupations also saw significant increases from 2016-2017, a sign of growing economic strength.

JOBS CREATED BY INDUSTRY Personal Care and Service 346K Transportation and Material Moving 297K Business and Financial Operations 216K Food Preparation and Serving Related 207K Management 205K Healthcare Practitioners and Technical 176K Construction and Extraction 160K Education, Training and Library 117K Computer and Mathematical 105K Installation, Maintenance, and Repair 84K Community and Social Service 56K Arts, Design, Entertainment, Sports and Media 44K Architecture and Engineering 41K Protective Service 21K Building and Grounds Cleaning and Maintenance 20K Legal 18K Production 15K Farming, Fishing and Forestry 8K Sales and Related 7K Healthcare Support 7K Life, Physical, and Social Science 6K Military-only -5K Office and Administrative Support -7K

Blue bar = $19/hour+

This means there needs to be a strong emphasis on bringing young people into many tactile fields that pundits have claimed are “gone forever” but have now come back with a vengeance. In fact, despite all the information age banter, significant opportunities lie in the “middle skill” jobs. In the last year, nearly 250,000 new jobs were created in the construction and extraction and installation and maintenance job categories, paying roughly $20 per hour. Another 600,000 new business operations specialists, managers and healthcare practitioners joined the economy at pay rates above $30 per hour.

Critically, regions also know that new arrivals are not likely to solve their shortages; the current rate of job-related moves is roughly half to one-third what it was as recently as the 1990s. This provides an excellent opportunity for regions that did not shine earlier in the decade but are making a marked comeback now.

For scores of towns and cities, the looming labor shortage represents a golden opportunity—if they can take advantage of it.

JOEL KOTKIN is the presidential fellow in urban futures at Chapman University and executive director of the Center for Opportunity Urbanism.

His most recent book is The Human City: Urbanism for the Rest of Us. MARK SCHILL is the Vice President of Research and a community and economic development planner at Praxis Strategy Group.

2019 CEO GUIDE TO SITE SELECTION 19

T H O U G H T L E A D E R S H I P P R O V I D E D B Y T H E I N D I A N A E CO N O M I C D E V E L O P M E N T CO R P O R AT I O N

Indiana’s

Innovation Engine Already ranking among the best states for business, the Hoosier State’s high-tech workforce is ramping up—fast.

I

NDIANA IS KNOWN AS A LOW-COST, businessfriendly state near the logistical center of the country. It’s also a State that Works for business, the citizens who call it home and the future generations being nurtured there.

Yet Indiana is so much more than that, especially when it comes to the kind of calculations CEOs must make about where to grow and expand their businesses.

It’s No. 5 in the 2018 ranking of “Best States for Business”

by Chief Executive magazine. Indiana rates No. 2 in infrastructure, according to CNBC. It’s one of the top states for regulatory freedom and has a high-ranking tax climate with a corporate income tax rate that is steadily decreasing.

Many innovations in products and services, including digital transformation, are occurring at five companies that exemplify the state’s business backbone: Cummins Engine, Elanco, Infosys, Thor Industries and Toyota Motor. These are by no means the only instances of highly successful companies innovating, growing and staying in Indiana, but they are a fantastic cross section of a state that continues to produce success stories such as these.

Indeed, Indiana continues exceeding the expectations of these business leaders, as well as counterparts at both home-grown and newcomer companies.

“Everyone is personally committed to the state’s success,” says Rick Cardwell, regional head–Midwest for Infosys, the India-based company with its American training campus based in Indiana. “Part of that is that so many business and government leaders are home-grown, native Hoosiers.

Because of their passion, they see the state as truly unique.”

Or, as Elanco CEO Jeff Simmons puts it, “Indiana offers a lot to attract business. Some people need to see it first, and it can be hard to get them here. But once they do, it’s easy to keep them.”

Another reason it’s easy to keep CEOs engaged with Indiana is that the state places a priority on transparency and accessibility.

“CEOs are often surprised at how accessible the state’s decision-makers are throughout the process of discuss-

ing site locations or jobs,” says Larry Gigerich, managing director of Ginovus, a national economic-development consulting firm with headquarters in Fishers, Indiana.

“Clients are amazed that they can actually talk with the governor live when Indiana is on a short list, as well as talk to other key people involved in the process, about incentives, permitting, regulatory matters and infrastructure.

CEOs really like that.”

Gigerich added that CEOs find that Indiana can move quickly to get things done—not just financial incentives, but implementing infrastructure projects and training programs that meet companies’ needs. The state’s concierge approach to business and economic development is a key to its success. “Speed surprises, especially when it’s people coming from the coasts who are used to these processes taking a lot of time.”

Meanwhile, state leaders continue to build on some of the bedrock factors in the Indiana advantage. Under Gov. Eric Holcomb, Indiana has introduced a program called Next Level Jobs to enhance the state’s talent pool by beefing up the crucial network of two-year colleges that grant associate degrees, as well as higher education across the board.

The effort also includes revitalizing what used to be called “vocational education” in every high school in Indiana, an initiative that can be expected to provide businesses in the state with even more job-ready Hoosiers. Prestigious state universities, including Purdue University in Lafayette, are frequent collaborators with local economic developers and the business community in creating customized employee training and skill-development programs. The key to this collaboration is the state’s focus on the business customer and creating lasting results.

Here’s how five companies and their leaders are helping to elevate their companies’ business performance in Indiana by leveraging access to technology and a capable workforce, and adding to the state’s economic legacy at the same time.

THOR: TRANSFORMING FOR TOMORROW Bob Martin, CEO, Thor Industries

IF THERE’S ONE COMPANY OPERATING TODAY THAT embodies the unique characteristics of a native Indiana business, it is Thor Industries. Based in Elkhart, Indiana, the company owns many brands of recreational vehicles and is one of the main reasons the northern tier of the state is economically vital today and looking forward to the future.

Thor and the RV industry faced challenges only a decade ago, during the Great Recession and days of $4 per gallon gasoline. But as the U.S. economy recovered, Thor’s strategy wasn’t just to rely on traditional market sector momentum but to transform its product development, factories, work processes, brands, marketing and other facets of the business to build a juggernaut that would be prosperous now and much more resilient the next time a downturn materialized.

“We’re trying not to look at today but at tomorrow and 10 years down the road,” says Thor CEO Bob Martin, whose company owns major RV brands, including Airstream, Crossroads, Dutchmen, Entegra, Jayco and Starcraft, and whose products encompass little haul-behinds that cost a few thousand dollars up to luxuriously equipped, bus-sized cruisers that are priced at $1 million and up.

Thor forsakes some manufacturing economies of scale in favor of discreet production of each type of RV and by each brand, so the company actually has 170 separate production facilities across Northern Indiana.

“Many people wonder why we don’t have more robots, but we’re building homes on wheels,” Martin explains.

“Things move a centimeter and can throw everything off.

We actually are craftsmen who can build cabinets and adjust things. The vast majority of what we do requires a human touch.”

Thor has been strategically modernizing its operations, improving work space, streamlining the flow of work and

providing more amenities and a better facility environment overall. With the importance of the kinds of skills Thor employs, it’s a given that workforce retention is crucial.

Many families in Northern Indiana count on a legacy of employment in the RV plants that goes back two or three generations. This history built loyalty that helped sustain the company in lean times while retaining institutional knowledge and craftsmanship.

But as the economy has recovered robustly around Thor, the company has been innovating to ensure that it has enough of the right people to keep its plants on top.

One such innovation is called LEAP (for Learn, Engage, Achieve, Perform), which Thor founded in 2017 as a way to build familiarization with the RV industry by kids and, down the road, perhaps enough of an appreciation to want to go to work designing, making, transporting and selling the vehicles.

“We actually start contacting kids in fifth grade, and in eighth grade and high school,” Martin explains. “We have the young kids build an RV with Legos, for instance, and tell them about the industry. We hired a local news anchor to make phenomenal presentations to gyms full of kids, and they get to go through the RVs we bring.”

“The older ones—we let them know that we have line people and salespeople, and engineers and accountants, in our company. And that they don’t have to leave Elkhart to build a living or a career. It’s pretty powerful.”

All of this effort is in service of one goal: making sure Northern Indiana remains the RV-making capital of the world.

“The industry has always had its ups and downs but we’re one of the stronger companies, and we can withstand it. We’ve been around for 30 years, and we’re looking to the next 10 or 20.”

DRIVING INTO DATA

Tom Linebarger, CEO, Cummins CUMMINS HAS BEEN A TECHNOLOGY LEADER for a century, and it essentially created and grew the diesel-engine industry in the city it still calls home, Columbus, Indiana. Now Cummins has been reinventing itself, leveraging its deep foundation in engineering and a growing digital expertise to confront the challenges and opportunities of a new era in which high-mileage, clean-diesel powertrains will co-exist with battery-powered trucks to reshape the global transportation network.

In the coming years, Cummins will launch a new family of diesel engines that will be 50 percent more fuel-efficient than its engines of just five to 10 years ago, says Cummins CEO Tom Linebarger.

“You could be surprised that we’re 100 years old and yet improving the efficiency of our main products by half,” Linebarger says. “It also might surprise people that, as we grow internationally, we add jobs—more technological, high-paying jobs—in Indiana.”

Cummins has been the undisputed pioneer in heavy-duty diesel engines all along, launching innovations such as the first four-valve, intercooled engine as well as after-treatment systems for diesel emissions that have helped the industry prosper in the clean-air age.

“Then we took the technology that we developed in the U.S. to meet EPA standards, to China, Brazil and elsewhere,” he says. “We’ve helped the world get cleaner but brought the jobs back home.”

Linebarger says that, true to its heritage of innovation, Cummins also is a leader in battery-electric powertrains for big vehicles, including a plan to begin output of platforms for urban buses by late 2019. “We’re a tech leader in commercial vehicles, and we don’t care if it’s diesel or electric or hydrogen fuel cells or hybrids, we’re going to lead in that,” he says.

In the process, like most companies, Cummins also is

undergoing a digital transformation.

This effort includes tapping into the data being generated by “the very sophisticated computers inside our engines” to help customers operate their equipment more efficiently. This groundbreaking technology will allow Cummins to design engines that perform even better in the real-world situations in which they’re being relied upon.

“This is an opportunity for us to help our customers love our products more, rather than just to grow a bunch of new sales,” Linebarger says.

Cummins has a good start on digital transformation “but we still have work to do,” Linebarger says. About half of Cummins employees are engineers, and the company has been adding IT capabilities all along, so it’s “reasonably sophisticated” overall.

The major new area of digital emphasis for Cummins, however, is in large-scale data analytics. It is tapping into big data to make major improvements in product development and other disciplines, including a recently completed pilot program in the Cummins heavy-duty engine group and plans for more test programs in several other engine groups over the next three to five years.

Among other things, Cummins is counting on Indiana’s university system to continue to provide the company with the high-quality job candidates in engineering and other disciplines that it needs to keep growing in the state. Combine that advantage with a cost of living that is substantially lower than in tech havens on the coasts, and Linebarger believes Indiana has a strong competitive advantage.

“We can recruit people here, and we have a good name,” Linebarger says. “We’re not competing with everyone for the same people. And we can provide an affordable lifestyle for the people who work for us.”

GOING SOLO

Jeff Simmons, CEO, Elanco ELANCO IS FRESH OFF A $1.5 BILLION INITIAL public offering of stock that separated the animal-health leader from its former parent, pharmaceutical giant Eli Lilly, and allowed Elanco to determine a course for further expansion.

That’s good news for Greenfield, Indiana, and the rest of the state where Elanco has been headquartered since its origin in 1954. “The culture of Indiana is embedded in Elanco in a lot of ways,” says Elanco CEO Simmons. “And now we’re using Indiana to chase a bigger cause: food security for the world, and health for companion pets.”

“What’s exciting is that we’ve got a 64-year history and one of the most known brands in the business. And we keep coming with a portfolio of innovations. We have been introducing three significant new products a year since 2015. Not many IPOs come out with that kind of portfolio.”

Elanco’s prospects are “based on the premise that society, globally, never has been as in tune about the care and wellbeing of animals—cats, cows, chickens,” Simmons says. “And that is what connects pets and lifestock.”

On that side of its business, Elanco’s digital transformation is accelerating, as the company probes its troves of big data for connections among disease, productivity and animal-health optimization. The company is harnessing artificial intelligence to develop new antibiotics for pigs, for instance; acquiring IP for probiotic feed for chickens; and leveraging the Internet of

Things for tighter connections to customers ranging from Brazilian cattle farmers to American veterinarians.

In pet health, Elanco is a leader in dealing with scourges such as canine osteoarthritis and parasites, including developing collars and microchips that can help diagnose conditions in dogs and cats. “An animal can’t tell you how it’s feeling as a human can,” Simmons acknowledges. “We have to get over the bridge in some other way.”

Elanco appreciates the endemic characteristics of Indiana such as the low cost of doing business. And there are some advantages particular to Elanco as well. For example, its base in the agricultural legacy of Indiana is “a tremendous asset,” Simmons says. “We get a front seat in innovation because of all the patents and knowledge and awareness here around the importance of agriculture.”

The company also enjoys access to graduates of Indiana colleges and universities who understand animal health, including many of whom were raised on farms.

“We need to be able to blend those college graduates who come out with a love for the space, and basic knowledge of the space, and those who are agile enough to know that in two years all of that knowledge will be outdated,” he says. “Indiana gives us those people.”

INFOSYS: SKILLING FOR EXPANSION Rick Cardwell, Regional Head–Midwest, Infosys US WHEN INFOSYS BROKE GROUND ON ITS $245-million investment in Indiana in November, a new education center at the former Indianapolis International Airport, Mayor Joe Hogsett called it the “largest commitment to job creation in the history of our state.” Governor Eric J. Holcomb said, “it will help prepare more current and future Hoosiers for success in our rapidly evolving, global economy.”

Indiana has been on the map of Infosys, the Bengaluru, India-based information technology giant, for a few years already. The company opened an office in Indianapolis in 2017 as part of a strategic shift for the important U.S. market.

Indianapolis was selected to be the home of the first Infosys tech and innovation hub as part of the company’s strategy to increase U.S. operations. Subsequently, and in addition to this tech and innovation hub, Infosys selected Indiana to be the home of its U.S. Education Center.

“Our new Indianapolis facility will prepare our American employees—and those of our clients—to master the kinds of advanced skills that are now required to succeed in our digital future,” Ravi Kumar, president of Infosys, said in announcing the project.

Infosys also boosted its hiring commitment in Indiana to 3,000 new jobs by the end of 2023 from its initial target of 2,000 jobs. That hiring wave is part of Infosys’s strategy to “future-proof” its business for an expected expansion as the company continues to gain U.S. clients and as the digital

transformation of most industries in America places ever-increasing demands on companies such as Infosys.

“This really represents our first office in the U.S. that is client-facing,” says Cardwell, regional head–Midwest, and an Indiana native who’s based in Indianapolis. “It will be built for that purpose around agility and co-collaboration.

“It’ll be an open-office concept where it’s meant to invite clients in to spend days, if not weeks, on projects. Nothing will be nailed down to the floor.”

To staff the U.S. Education Center, Infosys is “bringing our own educators and curriculum to Indianapolis and, in boot-camp fashion, recruiting right out of college, hiring people to go through an eight to twelve week training course, or three to four weeks for experienced hires.” Cardwell cites the “rich academic ecosystem” of Indiana as fertile territory for recruitment.

Infosys also cited the advantage of low costs for both business and living expenses, contributing to greater employee satisfaction and workforce stability. “Our people are only with us eight hours a day, so the other 16 hours a day is very important, when they’re buying houses and renting apartments and driving cars,” Cardwell says. “Commuting ability and affordability of housing are important.

“If you can grow up and get educated and have a career all in the same state, the stickiness of being able to stay in Indiana and work for Infosys is all to our advantage.”

A conceptual rendering of the U.S. Education and Training Center adjacent to the Indiana International Airport

TOYOTA: ROBOT-HUMAN COLLABORATION

Millie Marshall, President, Toyota Motor Manufacturing, Indiana THE AUTOMOTIVE INDUSTRY IN INDIANA has grown right along with the American car buyer’s shift toward sport-utility vehicles and crossovers, and Toyota Motors has been at the forefront of these industry developments. All of these trends are coming together strategically in a $600-million expansion of the Toyota assembly plant in Princeton, Indiana, that is expected to add 400 positions to the existing 3,000 employees.

Toyota is reconfiguring and retooling the plant so that it can produce another 40,000 Highlander SUVs and minivans each year, beginning in the fall of 2019. This development is part of Toyota’s broader plan to invest $10 billion in the United States over five years.

Millie Marshall, president of Toyota Motor Manufacturing, Indiana, says that the strength of Indiana’s commitment to job creation and the top-level capabilities of its workforce are the biggest reasons that Toyota is so confident about growing its footprint in Indiana.

“Indiana’s business climate is the strongest of any state I’ve ever worked in,” says Marshall, who has been plant manager for the Princeton operation since 2017, and is a 27-year veteran of the company, having helped manage plants in Kentucky, Alabama and West Virginia.

The Princeton operation is being remade with the Toyota New Global Architecture for its products, which Marshall explains is “about more commonization in both parts and automation.” There will be a new weld shop and paint shop at the plant, for example.

Some of the new method is pure automation. “But of course, we’re hiring 400 more people, so the object isn’t to eliminate jobs but to make them more efficient.”

One cutting-edge technology that Toyota will be install-

ing in the plant is a broader use of so-called “collaborative robots,” which are flexible and interact with human employees—instead of being in the traditional, fixed stance of an assembly-line robot.

Toyota will be installing several dozen of the collaborative robots, each of which costs tens of thousands of dollars. “How we move parts right now has a very defined path, and that doesn’t give you a whole lot of flexibility to change things,” Marshall says. “Collaborative robots work directly with our people to make changes, and they’re much quicker.”

Another technology innovation at the plant is the use of a digitized exoskeleton, which uses robot-like mechanical and electronic systems, and digital controls, to provide strength to the human wearer for jobs such as attaching components over their heads on the assembly line.

The automotive industry is transforming digitally in other ways as well, which makes the continuous training of Toyota’s Princeton workers paramount.

“We’ll be doing a lot of additional training for our new models, but training is something that is ongoing every day,” Marshall says. “We want people to be ‘industrial athletes,’ not just to do something but to be able to think their way through or even improve the process.”

In Indiana’s workers, she says, Toyota has found the kind of people who are capable of doing just that.

“The workers are where we have our strength. It’s all about the team members, and, for us, that helps us build, safely, high-quality products every single day. That’s our competitive advantage.”

RURAL FLORIDA IS A 28-MILLION-ACRE BLANK CANVAS. WHICH PAINTS A PRETTY NICE PICTURE FOR YOUR BUSINESS. Florida’s rural areas truly are the heart of the state. Close to big cities, yet far enough away for the open space you need.

And with a robust talent pool, plenty of training opportunities and community leaders who will welcome you with open arms, you’ll see why it’s a pleasure doing business here. Discover what a future in Florida means for your business at floridathefutureishere.com/opportunities, or call 877-YES-FLORIDA.

A CEO’S GUIDE TO SITE SELEC TION

Alabama "I’m committed to facilitating the creation of good jobs across Alabama and expanding opportunities for the state’s hard-working citizens.... Our efforts have produced a lot of success lately, and we’re going to keep moving forward at full speed on this mission.”

—Gov. Kay Ivey

AIMING HIGH IN MANUFACTURING

BIG DEALS

Alabama continues to thrive as one of the top states for manufacturing. The state’s auto sector saw more than $4 billion in investments in the past two years.

Mazda and Toyota are currently building a $1.6 billion plant in Huntsville, and Honda announced a $54 million expansion at its Talladega facility. Aerospace is also thriving. In 2017 alone, there were announced investments of nearly $700 million and 1,750 jobs in the sector. Continental Motors recently broke ground on a $75 million facility to construct piston and turbine engines for aircrafts. The state is now trying to ensure it can continually cultivate the talent to keep the momentum. The Success Plus workforce initiative developed in May 2018 focuses on promoting post-high school certifications, defined pathways to jobs and an assessment of continuous improvement.

• Toyota and Mazda announced in January 2018 that they would construct a $1.6 billion plant in Huntsville and create 4,000 new jobs. It is projected to open by 2021 and will produce 300,000 vehicles per year.

• International Paper announced in February 2018 it would increase its investment in its mill in Dallas County to $552.7 million, up from the $300 million it announced in September 2017.

• Honda announced in June 2018 a $54.8 million expansion at its operations in Talladega County and opened new logistics buildings in August 2018.

• Walmart opened a $135 million distribution center in Mobile in August 2018 and created 750 new jobs.

• Continental Motors broke ground in August 2018 on a $75 million, 275,000-square-foot facility in Mobile to construct piston and turbine engines for aircrafts.

KEY INCENTIVES TAXES 6.5% top corporate income tax rate

Investment Credit: Offers a tax credit of up to 1.5% of the capital investments for qualifying projects for up to 10 years. The credit can be carried forward for five years.

#39 on the Tax Foundation’s State Business Tax Climate Index ranking

Jobs Credit: Offers a refund or credit of 3% annually on the previous year’s wages paid to eligible employees.

There’s also an additional 0.5% on wages of vets for companies whose workforces are comprised of at least 12% veterans.

EDUCATION

90% of students

graduated high school in 2017

Alabama Reinvestment and Abatements Act: Offers a property tax abatement for up to 20 years and a sales and use tax abatement on construction materials, equipment and other capitalized costs.

24% of adults age 25+

have a bachelor’s degree or higher

EDCs

UNEMPLOYMENT RATE 4.1%, greater than the national average of 3.7%

Economic Development Partnership of Alabama edpa.org

RIGHT TO WORK STATE

Yes

QUALITY OF LIFE

6.56 out of 10, 2018

Chief Executive Best & Worst States for Business POPULATION GROWTH

2.0% increase between

2010 and 2017

Economic Development Association of Alabama edaa.org

Alabama Department of Commerce madeinalabama.com Birmingham Business Alliance birminghambusinessalliance.com Montgomery Area Chamber of Commerce choosemontgomery.com

HIGHLIGHTED PROGRAM OR INITIATIVE Alabama’s Success Plus initiative aims to add 500,000 high-skilled employees to the workforce by 2025 in response to increasing employer demand for high-level talent needed in modern workplaces. The initiative aims to improve access to educational opportunities and to create pathways to demonstrate how people can advance in their careers.

BIG COMPANIES Regions Financial (Fortune 500 headquarters) Honda Toyota Hyundai Boeing Airbus Georgia-Pacific Walmart

C-SUITE TESTIMONIALS “We’re already enhancing two of our existing plants in Auburn, Alabama and Statesboro, Georgia to bring production of our commercial Vanguard V-Twin engines back to the U.S., and we’re continuously investing in our research and development efforts to create products that help make work easier and lives better. it’s an exciting time to be at Briggs & Stratton.”

—Dave Rodgers, Senior Vice President and President, Engines and Power, Briggs & Stratton “Mazda makes cars with a clear vision of how we want to inspire people, contribute to society and help preserve the beauty of earth. By making such cars here in Alabama, we hope that, over time, our plant will come to occupy a special place in the hearts of our employees and the local community. By making this plant a vibrant part of that community, we hope to work, learn and grow together with the people of Alabama and Huntsville.”

—Masamichi Kogai, Representative Director and Chairman of the Board, Mazda “Our investment to establish a new vehicle assembly plant with Mazda builds on the strong success we have enjoyed in Alabama, where we produce engines for the North American market.”

—Akio Toyoda, President, Toyota Motor

2019 CEO GUIDE TO SITE SELECTION 27

A CEO’S GUIDE TO SITE SELEC TION

Arizona

GRAND GROWTH IN THE GRAND CANYON STATE

“Arizona’s unparalleled business environment continues to result in more jobs and more opportunities for the citizens of our state.... A prospering economy directly benefits the people of Arizona. We remain focused on ensuring Arizona is the best state in the nation to develop new ideas and launch or scale a business."

—Gov. Doug Doucey

TAXES 4.9% top corporate income tax rate

#27 on the Tax

Foundation’s State Business Tax Climate Index ranking

Business is booming in Arizona, and a recent report from the Office of Economic Opportunity estimates the Grand Canyon State will add nearly 543,000 jobs through 2026. Amazon, Acronis, Valor Global and TEKsystems have announced expansions here in the past year, and Infosys will soon create an innovation hub in Phoenix that will hire 1,000 workers by 2023.

KEY INCENTIVES Qualified Facility Tax Credit: Offers a refundable tax credit of the lesser of: 10% of qualified capital investment, $20,000 per net new job or $30 million per taxpayer per year, for location of manufacturing or R&D headquarter facilities.

Quality Jobs Tax Credit: Offers a state income tax of up to $9,000 over a three-year period for each net new quality job.

R&D Tax Credit: Offers a nonrefundable income tax credit for basic research payments made to universities under the jurisdiction of the Arizona Board of Regents.

Arizona Job Training Program: Offers job specific reimbursement of up to 75% of eligible training expense for net new jobs.

EDCs

EDUCATION

Arizona Association for Economic Development aaed.com

graduated high school in 2016

Arizona Commerce Authority azcommerce.com

28% of adults age 25+

Greater Phoenix Economic Council gpec.org

80% of students

have a bachelor’s degree or higher UNEMPLOYMENT RATE

4.7%, greater than the

national average of 3.7% RIGHT TO WORK STATE

Yes

QUALITY OF LIFE 8.24 out of 10, 2018 Chief Executive Best & Worst States for Business POPULATION GROWTH

9.8% increase between

2010 and 2017

28 2019 CEO GUIDE TO SITE SELECTION

Southeast Arizona Economic Development Group saedg.org Arizona Regional Economic Development Foundation aredf.org

HIGHLIGHTED PROGRAM OR INITIATIVE The Sustainable Economic Development Initiative of North Arizona aims to promote economic growth in the northern part of the state through business services, educational routine and policy.

BIG DEALS • Amazon announced in May 2018 it will open a fulfillment center in Tucson, creating more than 1,500 full-time jobs.

• Cognizant announced in August 2018 it will open a regional technology and services center in Mesa and create 500 new jobs.

• Infosys announced in September 2018 it will open a technology and innovation hub in Phoenix and hire 1,000 workers by 2023.

• Valor Global announced in September 2018 it will expand operations in Phoenix and create 1,000 new jobs over the next 12 months.

• SeaCa Packaging broke ground in October 2018 on a $17 million manufacturing plant in Surprise. It is expected to create 65 jobs.

• Technology services provider TEKsystems announced in October 2018 it will expand its office in Tempe and hire up to 300 new employees in the next five years.

BIG COMPANIES Six Fortune 500 companies are headquartered in the state: Avnet Freeport-McMoRan Republic Services Insight Enterprises Magellan Health ON Semiconductor

C-SUITE TESTIMONIALS “Since we first broke ground in Arizona over 10 years ago, we have found a network of support from community leaders to statewide officials, a dedicated workforce and fantastic customers.... We’re excited to open a new, state-of-the-art fulfillment center in Tucson and to continue innovating in a state committed to providing great opportunities for jobs and customer experience.”

—Mark Stewart, Vice President, Amazon’s North America Operations “We are strategically located in Arizona to take full advantage of all the resources the state has to offer. The expansion of our Tempe facility will bring hundreds of technical and nontechnical jobs to the community.”

—Pete Clavell, Regional Director of Recruiting, TEKsystems “Arizona is an attractive place to do business, with its strong infrastructure, emphasis on innovation, rich pool of talent and overall quality of life.”

—Karen McLoughlin, Chief Financial Officer, Cognizant

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A CEO’S GUIDE TO SITE SELEC TION

Arkansas “Arkansas has the tools in place to be a leader in entrepreneurism.... Our goal is to have a micro-hub of technology companies in the state. Whether we talk about coding, blockchain or cybersecurity, Arkansans want to be innovators. We want to be on the cutting edge of this and continue investing in it.”

—Gov. Asa Hutchinson

TAXES 6.5% top corporate income tax rate

#46 on the Tax Foundation’s State Business Tax Climate Index ranking

METALS AND MANUFACTURING

BIG DEALS

The Natural State continues to elevate its profile as a growing hub for tech and manufacturing. Arkansas has seen considerable investments from Chinese companies in recent years, as well as from domestic manufacturers.

Gränges announced a $26 million investment in its Newport operations; Aerojet Rocketdyne is investing $50 million in an expansion of its facility near Camden; and Calstrip Industries is preparing to break ground on a steel processing plant in Mississippi County, one of the top steel-producing areas in the nation.

• Packaging manufacturer Silgan broke ground in January 2018 on a new manufacturing facility in Fort Smith.

KEY INCENTIVES Advantage Arkansas: Offers a state income tax credit for the creation of jobs with wages equal to or above the lowest county average hourly wage. Credit can be earned each tax year for five years.

ArkPlus: Offers state income tax credits of up to 10% of the total investment of a new location or expansion for projects that meet the threshold.

Tax Back: Provides sales and use tax refunds on the purchase of building materials, machinery and equipment for businesses that sign a job-creation agreement and invest at least $100,000.

EDUCATION

Equity Investment Tax Credit: Discretionary income tax credit of up to 33.3% of amount invested for techbased businesses offering wages above state or county averages.

graduated high school in 2017

Targeted Business Incentives: Offers specialized incentives, including tax refunds and credits to help knowledge-based startup businesses.

88% of students

21.5% of adults age 25+ have a bachelor’s degree or higher

EDCS

UNEMPLOYMENT RATE

Arkansas Economic Development Commission arkansasedc.com

national average of 3.7%

Arkansas Economic Developers Chamber Executives aedce.org

RIGHT TO WORK STATE

Association of Arkansas Development Organizations arkansaseconomicregions.org

3.5%, less than the

Yes

QUALITY OF LIFE

5.25 out of 10, 2018

Chief Executive Best & Worst States for Business POPULATION GROWTH

3.0% increase between

2010 and 2017

30 2019 CEO GUIDE TO SITE SELECTION

HIGHLIGHTED PROGRAM OR INITIAIVE The state announced in March 2018 the Competitive Communities Initiative, which identifies ways communities can be more competitive with their economic development organizational structure, funding, workforce and product readiness.

• Applied Process announced in February 2018 it will construct a multimillion-dollar heat treatment plan in Fort Smith and add at least 30 new jobs.

• Calstrip Industries announced in May 2018 the creation of 45 new jobs and a $15 million, 100,000-square-foot steel processing plant in Blytheville.

• Gränges announced in May 2018 the creation of 100 new full-time jobs and a $26 million investment in its Newport operations.

• Aerojet Rocketdyne announced in August it will invest $50 million in an expansion of its facility near Camden, adding 140 jobs over the next three years and bringing the total facility size to over 300,000 square feet.

BIG COMPANIES Six Fortune 500 companies are headquartered in the state: Walmart Tyson Foods Murphy USA J.B. Hunt Transport Services Dillard’s Windstream Holdings

C-SUITE TESTIMONIALS “We greatly value our longstanding partnership with Arkansas and its support for our continued growth in Camden.... This expansion enables us to increase the volume of solid rocket motors we produce for tactical and missile defense systems used by America’s warfighters.”

—Eileen Drake, CEO and President, Aerojet Rocketdyne “Silgan is excited about our expansion in Fort Smith. The warm welcome from both state and local authorities makes us confident we have chosen the right location to serve our customers. We look forward to extending the Silgan family in the Fort Smith community.”

—Robert Lewis, Executive Vice President and CFO, Silgan

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A CEO’S GUIDE TO SITE SELEC TION

California

GDP GROWTH IN THE GOLDEN STATE

"California is a rocket-fueled engine of human industry and innovation, the nation’s greatest job creator and the fifth-largest economy in the world."

—Gov. Gavin Newsom

TAXES

8.84% top corporate

income tax rate

#49 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

83% of students

graduated high school in 2016

32% of adults age 25+

have a bachelor’s degree or higher

The Golden State may not always place highly in business-friendly and tax rankings, but officials say the perception doesn’t correlate with reality. Nearly 50 Fortune 500 companies are located in California, and there’s no shortage of companies willing to expand here. From the Bay Area to San Diego, tech and manufacturing remain strong drivers. The Gap, Chipotle, Amazon, DuPont and Facebook have made notable investments here in the past year.

KEY INCENTIVES California Competes Tax Credit: Offers a flexible income tax credit for businesses that come, stay and grow in the state.

California Research Credit: Offers a tax credit of up to 15% for taxpayers engaged in qualified research activities that are undertaken to discover new technology, develop a new business component or pursue a “process of experimentation.”

Sales and Use Tax Exemption for Manufacturing: Offers a partial exemption of sales and use tax on certain manufacturing and R&D equipment purchases and leases.

Advanced Transportation and Manufacturing Sales and Use Tax Exemption: The California Alternative Energy and Advanced Transportation Financing Authority offers a full sales and use tax exclusion for manufacturers that promote alternative energy and advanced transportation.

is offered to manufacturers, along with networking, technical advising and additional marketing through the Made in California partnership.

BIG DEALS • Gap announced in March 2018 it will open an e-commerce center in Fresno and create 515 jobs over the next two years.

• Samsung Electronics opened a design innovation center in San Francisco in April 2018.

• Chipotle Mexican Grill announced in May 2018 it will relocate its headquarters from Denver to Newport Beach.

• Katerra announced in July 2018 it will invest nearly $56 million in a manufacturing facility in San Joaquin County and create more than 648 jobs.

• Amazon opened a new tech hub office in San Diego and a second distribution center in Stockton.

• DuPont opened its Silicon Valley Technology Innovation Center in September 2018.

• Facebook continued to expand in Freemont, Sunnyvale and Menlo Park with three new work hubs for a nearly 4 million-square-foot expansion.

BIG COMPANIES 49 Fortune 500 companies are headquartered in the state, including:

QUALITY OF LIFE

California Association for Local Economic Development caled.org

6.17 out of 10, 2018

Chief Executive Best & Worst States for Business

California Governor’s Office of Business and Economic Development business.ca.gov

Apple Chevron Wells Fargo Intel Disney Hewlett Packard Enterprise Cisco Systems HP Oracle Facebook

POPULATION GROWTH 6.1% increase between 2010 and 2017

Greater Sacramento Economic Council selectsacramento.com

C-SUITE TESTIMONIALS

UNEMPLOYMENT RATE

4.1%, greater than the

national average of 3.7%

EDCs

Los Angeles Economic Development Corp. laedc.org San Diego Regional Economic Development Corp. sandiegobusiness.org San Francisco Center for Economic Development sfced

HIGHLIGHTED PROGRAM OR INITIATIVES The California Made program encourages consumer product awareness and promotes the purchase of goods manufactured in the state. The CA Made label

32 2019 CEO GUIDE TO SITE SELECTION

“We’ve had phenomenal growth for the past several years and in order to keep the momentum, we chose to add a location in Roseville.... With teams in the Bay Area and Southern California, the Sacramento area was the natural next step and the region presents a great opportunity for talent and customer acquisition.”

—Chris Burnley, Founder and CEO, Corefact "We’ll always be proud of our Denver roots where we opened our first restaurant 25 years ago. The consolidation of offices and the move to California will help us drive sustainable growth while continuing to position us well in the competition for top talent.”

—Brian Niccol, CEO, Chipotle

A CEO’S GUIDE TO SITE SELEC TION

Colorado

AEROSPACE PROPELLING ECONOMY TO NEW HEIGHTS

"We will give shut-down factories and mines a new mission and create jobs by bringing local governments and business together to bring new industries to rural Colorado."

—Gov. Jared Polis

The Centennial State is literally propelling its economy to new heights. Colorado is growing as an aerospace hub, with more than 180 aerospace companies and 500 companies and suppliers offering space-related products and services. Space professionals gathered at the annual Space Symposium in Colorado Springs in April determined that the aerospace industry now generates a $15.4 billion economic impact in the state.

The Denver airport is also growing as a domestic and international hub and recently reached a new milestone as one of four U.S. airports with more than 200 nonstop connections.

KEY INCENTIVES TAXES

4.6% top corporate

income tax rate

#18 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION

Job Growth Incentive Tax Credit: Offers a state income tax credit for businesses that create at least 20 jobs with annual wages of at least 100% of the county average where they are located.

Colorado First Customized Job Training Program: Offers up to $1,200 per employee in training by either one of the state’s community colleges, a provider of the company’s choosing or an in-house trainer.

79% of students

Enterprise Zone Tax Credits: Offers a variety of investment and workforce tax credits for companies operating in economically distressed areas.

38.7% of adults age 25+

Strategic Fund: Offers incentives of up to $5,000 for each job created with an annual salary of at least 140% the average county wage.

UNEMPLOYMENT RATE

EDCs

national average of 3.7%

Colorado Office of Economic Development and International Trade choosecolorado.com

graduated high school in 2017

have a bachelor’s degree or higher

3.1%, less than the

QUALITY OF LIFE 8.61 out of 10, 2018 Chief Executive Best & Worst States for Business POPULATION GROWTH

11.5% increase between

2010 and 2017

Economic Development Council of Colorado edcconline.org Upstate Colorado Economic Development upstatecolorado.org Northern Colorado Economic Alliance northerncolorado.com Metro Denver Economic Development Corp. metrodenver.org

HIGHLIGHTED PROGRAM OR INITIATIVE The Blueprint 2.0 program continues to address economic development goals in rural parts of the state.

New initiatives announced in 2018 include helping communities address everything from co-working and branding to entrepreneurship.

BIG DEALS • GPS tracking app producer Strava announced in January 2018 that it will open a new office in Denver and add 89 net new jobs over the next eight years.

• Maxar Technologies moved its headquarters from San Francisco to Westminster in April 2018.

• Defense solution provider Polaris Alpha announced a major expansion of its Colorado offices and the addition of 450 jobs in Denver and Colorado Springs in April 2018.

• Lending platform Funding Circle announced in April 2018 an expansion of its U.S. operations with a second office in Denver and more than 290 new jobs in the next two years.

• Personal genomics company Helix announced in June 2018 a new office in Denver and the acquisition of Denver-based HumanCode.

• Apparel company VF Corp., owner of The North Face and Jansport, announced in August 2018 that it will move its headquarters to Denver, bringing 800 jobs.

BIG COMPANIES 10 Fortune 500 Companies are headquartered in the state: DaVista Western Union DISH Network Arrow Electronics Molson Coors Brewery Ball Corp.

Qurate Retail DCP Midstream Liberty Media Newmont Mining

C-SUITE TESTIMONIALS “Colorado is an area with an unrivaled heritage and culture of outdoor and activity-based lifestyles, as well as a thriving business environment.... It is a great strategic fit for our business, and we are excited to be relocating our headquarters and several brands to the metro Denver area next year.”

—Steve Rendle, Chairman, President and CEO, VF “We are grateful for the continued support of the Colorado Economic Development Commission, Gov. Hickenlooper and the state of Colorado for job growthbased incentives, as well as for the significant support offered by the cty of Westminster and Adams County.”

—Howard L. Lance, President and CEO, Maxar Technologies “With the abundance of talent in Denver, we know it’s a perfect fit for our mission and team.... Colorado is a magnet for tech companies and active people because of its progressive approach to city planning and the outdoors.”—James Quarles, CEO, Strava

2019 CEO GUIDE TO SITE SELECTION 33

A CEO’S GUIDE TO SITE SELEC TION

Connecticut "We have top-notch universities, incredibly talented workers, proximity to Boston and New York and leading industry clusters in insurance, biotech, fintech and defense."

—Gov. Ned Lamont

TOWARD TECH

BIG DEALS

Connecticut is leveraging its position as an insurance hub to further expand into the tech sector. The Computing Technology Industry Association said in its annual report in March that the tech industry contributed 6.5% of the state's economy ($16 billion) in 2017. Infosys announced in March 2018 an innovation hub in Hartford, and Seven Stars Cloud Group announced in July that it will create a global headquarters for tech and innovation in West Hartford.

• Infosys announced in March 2018 a $20.6 million innovation hub in Hartford that will create more than 1,000 high-tech jobs in the state by 2022.

KEY INCENTIVES

• General Dynamics Electric Boat (EB) announced it will invest more than $800 million in the state over the next 17 years and add nearly 1,900 employees.

8.3% top corporate

Manufacturing Assistance Act: Offers low-interest and forgivable loans for business expansion initiatives. Funds may be used to purchase machinery and equipment, make infrastructure improvements, expand the employee base and provide training.

#47 on the Tax Foundation’s State Business Tax Climate Index ranking

Urban and Industrial Site Reinvestment Tax Credit Program: Offers a dollar-for-dollar tax credit of up to 100% of capital investment on projects with a minimum of $5 million in distressed communities and $50 million in all other communities.

TAXES

income tax rate

EDUCATION

88% of students

graduated high school in 2016

38% of adults age 25+

have a bachelor’s degree or higher UNEMPLOYMENT RATE

4.2%, greater than the

national average of 3.7% QUALITY OF LIFE

4.78 out of 10, 2018

Chief Executive Best & Worst States for Business POPULATION GROWTH

0.4% increase between

2010 and 2017

Connecticut Bioscience Innovation Fund: The $200 million, 10-year program offers focused financial assistance to startups, early-stage businesses, nonprofits and accredited colleges and universities.

Manufacturing Innovation Fund: The $75 million fund invests in matching grants for businesses, as well as industry and competitive initiatives to support manufacturers operating in the state.

EDCs Department of Economic and Community Development ct.gov/ecd Connecticut Economic Development Association cedas.org Connecticut Economic Resource Center cerc.com Metro Hartford Alliance metrohartford.com/economic-development

HIGHLIGHTED PROGRAM OR INITIATIVE The Technology Talent Fund helps execute strategies to grow and fill IT jobs in the state. Initiatives include tech boot camps with short-term, accelerated programs, the Technology Talent Bridge Internship Program, K-12 STEM education and university curriculums designed to meet the tech industry's talent needs.

34 2019 CEO GUIDE TO SITE SELECTION

• Sema4, a Mount Sinai venture offering genomic testing, announced in April 2018 it will add 408 jobs in the state over the next five years.

• ITV America and Wheelhouse Entertainment announced a new entertainment production hub in Stamford that will create roughly 450 jobs.

• PwC announced a $20 million expansion that will create 400 jobs in the state over the next five years.

• Seven Stars Cloud Group announced it will establish its global headquarters in West Hartford. The $283 million project will create more than 330 jobs over five years.

BIG COMPANIES 17 Fortune 500 companies are headquartered in the state, including: Aetna United Technologies Charter Communications Cigna Synchrony Financial The Hartford Stanley Black & Decker XPO Logistics Xerox United Rentals

C-SUITE TESTIMONIALS “The region’s position as the insurance capital of the world, paired with Connecticut’s world-renowned academic institutions, will place Infosys in close proximity to valued clients and accelerate the recruitment of highly skilled local talent.”

—Ravi Kumar, President, Infosys “This fantastic location provides access to a highly skilled workforce, as well as more than 40 institutions of higher learning and several major metropolitan areas, all in proximity of this site.”

—Bruno Wu, Executive Chairman and CEO, Seven Stars Cloud Group “Connecticut offers a very attractive environment for our company to grow along the talent-rich biotech corridor running from New York City to New Haven, with a stellar pool of qualified candidates, plus competitively priced commercial real estate and the presence of leading universities and medical centers.”

—Eric Schadt, Ph.D., Founder and CEO, Sema4

A CEO’S GUIDE TO SITE SELEC TION

Delaware “Delaware’s economy remains in a period of significant transition, and we’re focused on making sure our economy works for all Delawareans....

That starts with improving access to good-paying jobs across our state. [In August], I signed into law pieces of legislation that will help revitalize Delaware’s abandoned industrial sites and restructure our economic development efforts to support small business owners, innovators and entrepreneurs.”

—Gov. John Carney

TAXES

8.7% top corporate

GROWING INTEREST IN THE FIRST STATE

BIG DEALS

While many organizations still file their articles of incorporation in The First State for its business-friendly laws, they’re also looking at the state for new operations.

Adesis announced it will construct a state-of-the-art lab in New Castle, and Ashland and Belchim Crop Protection have both announced headquarters here in in the past year.

• Adesis, a subsidiary of Universal Display, announced in December 2017 it will open a state-of-the art lab in New Castle.

KEY INCENTIVES Delaware Strategic Fund: Offers low-interest loans and grants to businesses for job creation, relocation, expansion or brownfield development.

New Economy Jobs Tax Credit: Offers a state tax credit based on the portion of total payroll for companies that contribute high-paying jobs to the state economy.

Job Creation Tax Credit: Offers credits against corporate or personal income taxes, gross receipts tax and public utility tax for businesses that hire five or more employees and invest at least $200,000 in a qualified facility.

Delaware New Jobs Infrastructure Fund: Offers economic assistance for renovation, construction and improvements to roads, utilities or infrastructure to support new business projects.

income tax rate

#11 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

86% of students

graduated high school in 2016

30.5% of adults age 25+ have a bachelor’s degree or higher UNEMPLOYMENT RATE

4.0%, greater than the

national average of 3.7% QUALITY OF LIFE

7.78 out of 10, 2018

Chief Executive Best & Worst States for Business

EDCs Delaware Prosperity Partnership deprosperitypartnership.com Wilmington Economic Development Corp. wedco.org Delawareans for Environmental and Economic Development deedworks.org

HIGHLIGHTED PROGRAM OR INITIATIVE In March 2018, Gov. John Carney announced an agreement to lease and significantly expand the Port of Wilmington and create a new container shipping facility on the Delaware River. GT USA Wilmington, a subsidiary of Gulftainer, will invest up to $600 million in the port over the next nine years, something state officials say will expand capacity and economic opportunity in the region.

• DowDuPont announced in January 2017 a $200 million upgrade of its Experimental Station research facility in Alapocas.

• Belchim Crop Protection opened its U.S. headquarters in Wilmington in July 2018.

• Ashland announced in August 2018 it will move its headquarters from Covington, Kentucky to Brandywine Springs and create 1,000 jobs in the area by 2020.

BIG COMPANIES Mountaire Farms Amazon Perdue Farms AztraZeneca US M&T Bank Two Fortune 500 companies are headquartered in the state: Navient Chemours

C-SUITE TESTIMONIALS “We are pleased to announce our expanding footprint and increased investment to further boost research, innovation and job opportunities in Delaware....

Furthermore, by co-locating in our New Castle headquarters and the Experimental Station, we believe that we are building a world-class technology and manufacturing hub to support our customers from innovation to commercialization.”

—Andrew Cottone, President, Adesis “This area provides access to an outstanding workforce, easy access for our corporate partners and interaction with a thriving economic and scientific community.”

—Richard Birkmeyer, CEO, CD Diagnostics

POPULATION GROWTH

7.1% increase between

2010 and 2017

2019 CEO GUIDE TO SITE SELECTION 35

A CEO’S GUIDE TO SITE SELEC TION

Florida "We will have what I think is record investment into Florida and these will be industries like manufacturing, financial services, technology—those are good jobs, which in a tight labor market means rising salaries and rising wages."

—Gov. Ron DeSantis

TAXES 5.5% top corporate income tax rate

#4 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION

82.3% of students

graduated high school in 2017

REACHING THE TRILLION DOLLAR MARK

BIG DEALS

The Sunshine State’s GDP surpassed $1 trillion in July 2018 and has been growing by roughly $2.74 billion daily, according to the Florida Chamber of Commerce. If it were its own country, Florida would rank as the 17th-largest economy in the world. The state continues to capitalize on its low taxes, growing talent base and relatively affordable land with port access. Aerospace and life sciences are strong drivers. Lockheed Martin and Pratt & Whitney both announced major expansions in 2018.

• Lockheed Martin announced in February 2018 that it will be expanding in Orlando and creating 500 new jobs. The security and aerospace company now employs more than 14,000 Floridians at 73 locations in the state.

KEY INCENTIVES Qualified Target Industry (QTI) Tax Refund: Offers refunds on corporate income, sales, property, insurance premium and other taxes of up to $3,000 per new job equivalent, with higher refunds for rural community jobs or jobs that pay higher-than-average annual wages.

Quick Response Training (QRT): Employer-driven training program that offers reimbursement for training expenses such as instructor wages, curriculum development and manuals.

Special Opportunity Incentives: Offers special incentives for development in rural areas, in economically depressed inner-city areas and in brownfield sites. The Brownfield Redevelopment Bonus Refund also offers an additional $2,500 tax refund for each job created in a brownfield site.

27.9% of adults age 25+ have a bachelor’s degree or higher

EDCs

UNEMPLOYMENT RATE

Greater Ft. Lauderdale Alliance gfalliance.org

3.5%, less than the

national average of 3.7% RIGHT TO WORK STATE

Enterprise Florida enterpriseflorida.com

Miami-Dade Beacon Council beaconcouncil.com

Yes

Tampa Hillsborough Economic Development tampaedc.com

QUALITY OF LIFE

Orlando Economic Partnership orlando.org

8.16 out of 10, 2018

Chief Executive Best & Worst States for Business

POPULATION GROWTH 11.6% increase between 2010 and 2017

36 2019 CEO GUIDE TO SITE SELECTION

HIGHLIGHTED PROGRAM OR INITIATIVE Venture Bridge Florida is one of the first programs of its kind in the nation to help foreign investors prepare to enter the state's market. As a partnership between several Florida and national organizations, it offers a “soft landing” with virtual training in marketing, partnerships and sales, as well as access to vetted, top Florida-based service providers in legal, accounting and marketing.

• Aircraft engine and power unit manufacturer Pratt & Whitney announced in May 2018 that it will expand its operations in Palm Beach County and add 215 new jobs.

• LignoTech Florida, a joint venture between Norwegian biochemical company Borregaard and specialty pump manufacturer Rayonier Advanced Materials, started production of lignin products at a $110 million mill in June 2018.

• VT Mobile Aerospace Engineering added 400 jobs and opened a new aerospace engineering hangar at the Pensacola Airport in June 2018.

• Wyndham Destinations announced in June 2018 that it will invest $7.5 million in a global headquarters in Orlando and will create 200 jobs.

• United Technologies opened its 224,000-square-foot UTC Center for Intelligent Buildings in Palm Beach county, adding 380 jobs with a commitment to add another 100 soon.

BIG COMPANIES 17 Fortune 500 companies are headquartered in the state, including: Publix World Fuel Services Tech Data AutoNation Hertz Global Holdings CSX Office Depot NextEra Energy Darden Ryder System

C-SUITE TESTIMONIALS “We are thankful for the tremendous support from the State of Florida and Pensacola City governments, which have enabled us to set up the new facility on schedule and commence operations quickly.”

—Lim Serh Ghee, President, ST Aerospace “We are thankful for the support we receive from the state of Florida and Palm Beach County as we add 215 positions to our employee base of 1,300 and $100 million in capital investment, in addition to over $88 million we’ve invested in manufacturing and technology improvements to this site since 2012.”

—David Carter, SVP of Engineering, Pratt & Whitney

A CEO’S GUIDE TO SITE SELEC TION

Georgia "Through regulatory reform, targeted economic development and enhanced connectivity, we can ensure that businesses on Main Street can compete, grow and thrive."

—Gov. Brian Kemp

TAXES 6% top corporate income tax rate

#33 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 81.6% of students graduated high school in 2016

29.4% of adults age 25+ have a bachelor’s degree or higher UNEMPLOYMENT RATE

3.7%, equal to the

GLOBAL GROWTH

BIG DEALS

Georgia is continuing to grow not just as a destination for U.S. companies but also for site selectors across the globe. The Georgia Department of Economic Development’s Global Commerce Division recorded 419 expansions or relocation projects throughout the state that added 27,000 jobs and more than $5.5 billion in investments in FY 2018. Of the 89 international projects, some of the top companies were from the United Kingdom, France, Germany, Korea and Japan. 2017 was also a record-breaking year for international trade, with more than $128 billion in trade between the state and 225 countries.

• French auto manufacturer Groupe PSA opened a new North American headquarters in Fulton County.

KEY INCENTIVES

• Inspire Brands announced in August 2018 that it will invest approximately $32 million and add more than 1,100 jobs at a new headquarters in Fulton County.

Job Tax Credit: Offers up to $4,000 in annual tax savings for each job created for up to five years. In addition, the Quality Jobs Tax Credit offers a tax credit of up to $5,000 for companies that create at least 50 jobs in a 24-month period with wages 10% higher than the county average.

Port Tax Credit Bonus: Offers a $1,250 tax credit bonus to companies that increase imports or exports through a state port by at least 10% over the previous or base year.

Mega Project Tax Credit: Offers a tax credit of $5,250 per new job annually for five years for companies that hire at least 1,800 full-time employees and invest either a minimum of $450 million or have an annual payroll of at least $150 million.

Research and Development Tax Credit: Offers a tax credit based on a portion of the increase in R&D spending. The credit can be used to offset up to 50% of state income tax liability.

national average of 3.7% RIGHT TO WORK STATE

EDCs

Yes

Georgia Department of Economic Development georgia.org

QUALITY OF LIFE

Savannah Economic Development Authority seda.org

Chief Executive Best & Worst States for Business

Northwest Georgia Joint Development Authority northwestgeorgia.us

8 out of 10, 2018

POPULATION GROWTH 7.6% increase between 2010 and 2017

Augusta Economic Development Authority augustaeda.org

HIGHLIGHTED PROGRAM OR INITIATIVE The Georgia Centers of Innovation (COI) offer technical industry expertise, collaborative research and business partnerships to help the state’s industries compete and grow. The COI consists of five centers that specialize in aerospace, energy technology, information technology, logistics and manufacturing.

• Facebook announced in March that it will invest $750 million and create at least 100 jobs at a new data center in Stanton Springs.

• Thyssenkrupp Elevator Americas announced in July 2018 a $200 million headquarters and innovation complex in Cobb County that will create more than 650 new jobs.

• Starbucks announced in August 2018 it will add up to 500 new jobs at a new East Coast satellite office in Fulton County that will serve as an extension of the Starbucks Support Center in Seattle.

• Brake pad manufacturer Nisshinbo Automotive Manufacturing announced in September 2018 a $72 million expansion at its Covington facility and the addition of 100 jobs.

BIG COMPANIES 21 Fortune 500 companies are headquartered in the state, including: Home Depot Delta Air Lines UPS Coca-Cola Southern Aflac SunTrust Banks Mohawk Industries

C-SUITE TESTIMONIALS “We are proud to call Atlanta the home of Inspire Brands.... Our vision is to invigorate great brands and supercharge their long-term growth.” —Paul Brown, Co-founder and CEO, Inspire Brands “Atlanta is synonymous with mobility and innovation, and this move gives us one complex in a national hotbed of innovation that will allow us to serve our customers better than anyone in the industry while providing a high quality of life for our employees.”

—Rich Hussey, President and CEO, Thyssenkrupp Elevator Americas “We looked at every aspect of the Atlanta community and found it to be the most suitable location for us....

While the overall business environment, standard of living and university system played an important part in our decision, our unique needs in terms of technology, mobility innovation and car culture ultimately identified Atlanta as our perfect choice.” —Larry Dominique, President, PSA North America

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A CEO’S GUIDE TO SITE SELEC TION

Idaho “Idaho has been fairly successful but we have more to do in taking back the authority that the federal government over the years has taken, whether it’s in the area of education, transportation, healthcare, public lands management and all the areas of regulation.”

—Gov. Brad Little

TAXES 7.4% top corporate income tax rate

#21 on the Tax Foundation’s State Business Tax Climate Index ranking

RAPID GROWTH IN THE GEM STATE

BIG DEALS

Idaho is now the fastest-growing state in the nation and is noted for its quality of life and expanding economic opportunities. Residents are flocking to the Boise area and so are companies. Boise State University recently broke ground on the Micron Center for Materials Research, and Japanese company Sakae Casting chose Idaho Falls for its first U.S. location.

• Sakae Casting of Tokyo, Japan, opened in its first U.S. location in Idaho Falls in April 2017.

KEY INCENTIVES Idaho Tax Reimbursement Incentive: Performancebased incentive offers a tax credit of up to 30% for 15 years for companies that add new qualified jobs.

Idaho Business Advantage: Offers a wide package of incentives, including tax credits, sales tax rebates and property tax exemptions for businesses that invest at least $500,000 in new facilities and create at least 10 jobs that pay $40,000 per year.

Idaho Opportunity Fund: Offers discretionary funding for infrastructure improvements to attract new commercial or industrial facilities.

Property Tax Exemption: Offers a partial or full property tax exemption for up to five years for companies that invest at least $500,000 in new or existing non-retail commercial or industrial facilities.

graduated high school in 2016

26.2% of adults age 25+ have a bachelor’s degree or higher UNEMPLOYMENT RATE 2.7%, less than the national average of 3.7% RIGHT TO WORK STATE

Yes

QUALITY OF LIFE

6.67 out of 10, 2018

Chief Executive Best & Worst States for Business POPULATION GROWTH

9.5% increase between

2010 and 2017

38 2019 CEO GUIDE TO SITE SELECTION

• Boise State University broke ground in April 2018 on the $50 million Micron Center for Materials Research.

• Dutch deep frozen storage and logistics specialist NewCold announced in July 2018 it will open a second mechanized facility in Burley, which will be the largest of its kind in the country.

• Clearwater Analytics announced in July 2018 a 26,000-square-foot expansion of its building in downtown Boise. The company now employs more than 650 people in the area.

BIG COMPANIES Albertson’s Micron Technology J.R. Simplot Winco Foods Lamb Weston Paylocity

C-SUITE TESTIMONIALS

EDUCATION

80% of students

• Syngenta broke ground in April 2018 on a $30 million expansion of its seed facility in Nampa.

EDCs Idaho Economic Development Association iedassociation.com Idaho Commerce commerce.idaho.gov Boise Valley Economic Partnership bvep.org Southern Idaho Economic Development Organization southernidaho.org Eastern Idaho Economic Development easternidaho.org

HIGHLIGHTED PROGRAM OR INITIATIVE The Idaho LEADER Initiative aims to increase engagement between education and employers with workbased learning opportunities.

“Investments in world-class research capabilities are essential to both Micron and Boise State University. And, this facility continues to demonstrate Micron and Boise State’s longstanding partnership in pursuit of building strong science and technology centers of excellence for the Boise area.”

—Scott DeBoer, Executive Vice President, Micron Technology “Government leaders at all levels are here to assist, not hinder, the growth of business and jobs. You’re wanted here.”

—Bill Whitacre, CEO, J.R. Simplot “With an expanding tech presence and a flourishing community and culture, Boise was the ideal choice for Paylocity’s newest location.”

—Mark Kinsey, Senior Vice President of Operations, Paylocity

A CEO’S GUIDE TO SITE SELEC TION

Illinois

BIG IN BIOTECH

“Upgrading our state’s infrastructure and supporting policies that enable research and innovation will allow Illinois to continue growing its manufacturing businesses.”

—Gov. J.B. Pritzker

TAXES

9.5% top corporate

income tax rate

#36 on the Tax

Foundation’s State Business Tax Climate Index ranking

Despite its debt problems, Illinois’s economy continues to expand with biotech a bright spot in Chicago. Swiss drug maker Novartis entered a deal in April to acquire Chicago-based AveXis for $8.7 billion, and the state has seen more than $2 billion in other new investments in pharmaceuticals and life sciences in the past year.

graduated high school in 2016

32.9% of adults age 25+

have a bachelor’s degree or higher

UNEMPLOYMENT RATE

4.1%, greater than the

national average of 3.7% QUALITY OF LIFE

KEY INCENTIVES Edge Tax Credit: Offers credits to companies that have another location option out of state and agree to invest at least $5 million and create 25 new jobs in Illinois.

• German global healthcare company Fresenius Kabi broke ground in September 2018 on a $250 million facility in Melrose Park.

Exemptions: Eliminates state tax on personal property.

Property and payroll are also not apportioned to corporate income tax.

BIG COMPANIES

Enterprise Zone: Offers sales tax exemption on building materials and equipment, a utility tax exemption, investment tax credit and jobs tax credit for businesses operating in an established Enterprise Zone.

High Impact Business Benefits: Offers various incentives for companies that invest at least $12 million and create 500 or more full-time jobs.

EDCs Illinois Department of Commerce and Economic Opportunity illinois.gov/dceo Illinois Economic Development Association ileda.org Intersect Illinois intersectillinois.org World Business Chicago worldbusinesschicago.com

4.94 out of 10, 2018

Chief Executive Best & Worst States for Business POPULATION GROWTH

0.2% decrease between

2010 and 2017

• Organic meal service company Sun Basket opened an expansion of its distribution center in Valmeyer in May 2018.

• German company Faber-Castell announced in September 2018 it will open its first North American manufacturing facility in Elgin.

EDUCATION

86% of students

• II-VI EpiWorks expanded its manufacturing facility in May 2018 to quadruple production of high-performance compound semiconductor materials.

BIG DEALS • IAm Bank, which located its headquarters in Chicago in 2017, announced in April it would grow to 300 employees.

• Aspen Dental Management announced in March 2018 it will locate its new headquarters in Chicago and create 250 new jobs.

• Swiss drug maker Novartis entered a deal in April 2018 to acquire Chicago-based AveXis for $8.7 billion.

• Biopharmaceutical company CSL Behring announced in April 2018 a 1.8-million-square-foot expansion in Kankakee County.

32 Fortune 500 companies are headquartered in the state, including: Walgreens Boots Alliance Boeing State Farm Archer Daniels Midland Caterpillar United Continental Holdings Allstate Exelon Deere

C-SUITE TESTIMONIALS “Chicago is a wonderful city with a diverse culture....

Chicago provides us with a great opportunity to grow our business and find the best and most talented employees.”

—Lee Travers, CEO, IAm Bank “The strategic location in between the coasts, along with the exceptional workforce Illinois boasts, made it a natural choice for our next facility.”

—Christina Zech, Managing Director, Faber-Castell Cosmetics “The Montgomery facility is our fourth manufacturing facility in Illinois, and we look forward to starting production there this spring.”

—Bob Buddig, CEO, Carl Buddig and Co. “With support from Illinois, we expect to continue to invest in this Champaign facility by adding state-ofthe-art manufacturing capacity, improving processes capabilities, broadening the product portfolio and recreating and developing a lot of talent to fill the anticipated growth in jobs and opportunities for career development.”

—Dr. Chuck Mattera, President and CEO, II-VI Inc.

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A CEO’S GUIDE TO SITE SELEC TION

Indiana “From home-grown businesses to international Fortune 500 companies, organizations of all sizes are choosing to invest in Indiana because of our best-in-theMidwest job climate and a Hoosier workforce that’s second to none.”

—Gov. Eric J. Holcomb

TAXES

6% top corporate

income tax rate

#10 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

87% of students

graduated high school in 2016

24.6% of adults age 25+ have a bachelor’s degree or higher UNEMPLOYMENT RATE 3.5%, less than the national average of 3.7% RIGHT TO WORK STATE

THE STATE THAT WORKS

BIG DEALS

While Indiana remains a top state for manufacturing, agriculture and logistics. it’s also expanding into new sectors. The Hoosier State recently forged partnerships with Israeli businesses through the Israeli Innovation Authority. And in October, Indianapolis hosted the Cybertech Midwest week, partly to help propel the state further into the cybersecurity industry. Infosys, a global leader in consulting, technology and next-generation services, recently announced it will establish a U.S. Education Center in Indianapolis to train its U.S. workers.

And Geico said in February an expansion of its customer service center will add more than 1,350 new jobs.

• Geico announced in February it will invest more than $16 million and add more than 1,350 jobs at an expansion of its customer service center in Indianapolis.

KEY INCENTIVES

Hoosier Business Investment Tax Credit (HBI): Offers nonrefundable income tax credits as a variable percentage of capital investments that support job creation in the state.

BIG COMPANIES

Economic Development for a Growing Economy (EDGE) Tax Credit: Offers a refundable corporate income tax credit of up to 100% of the expected increased tax withholdings generated from the creation of new jobs.

Research and Development Incentives: Offers research expense tax credits and a R&D sales tax exemption for qualifying R&D transactions.

EDCs Indiana Economic Development Corp. iedc.in.gov Indiana Economic Development Association ieda.org

QUALITY OF LIFE

Growth Alliance for Greater Evansville growthallianceevv.com

POPULATION GROWTH 2.8% increase between 2010 and 2017

40 2019 CEO GUIDE TO SITE SELECTION

• Niagara Bottling announced in July it will invest $56 million and add 49 new jobs at a 469,000-square-foot manufacturing and bottling facility in Jeffersonville.

• Rockwell Automation announced in June it will invest $16.4 million to renovate a 369,000-square-foot facility and will create 231 jobs by 2023.

Greater Fort Wayne Inc. Economic Development greaterfortwayneinc.com/economic-development

Chief Executive Best & Worst States for Business

• Jasper Group announced in April it will open a 1.2 million-square-foot manufacturing facility in Orleans and will create an additional 300 jobs by 2021.

Headquarters Relocation Tax Credit (HQRTC): Offers a tax credit of up to 50% of approved costs of relocating a headquarters to Indiana. Eligible businesses must have annual revenues of at least $50 million.

Yes

7.78 out of 10, 2018

• Infosys announced in April it will establish a U.S. Education Center in Indianapolis to train its workers.

With the growth, the company said it plans to expand its workforce in the state to 3,000 by the end of 2023.

HIGHLIGHTED PROGRAM OR INITIATIVE The Next Level Connections Program targets $1 billion in infrastructure projects, including more international flights, increased broadband access, new rail service and expansion of interstates.

Eight Fortune 500 companies are headquartered in the state: Eli Lilly and Co. Cummins Steel Dynamics Zimmer Biomet Holdings Berry Global Group Simon Property Group Elkhart Thor Industries

C-SUITE TESTIMONIALS “We are excited to partner with Indiana to grow our U.S. presence by building our U.S. Education Center here, which is dedicated to continuous learning and incubating the skills of the future.... Our new Indianapolis facility will prepare our American employees—and those of our clients—to master the kinds of advanced skills that are now required to succeed in our digital future.”

—Ravi Kumar, President, Infosys “Kokomo has a wealth of engineering talent.... So it made sense to expand here. Kokomo embraces new technology and emerging green technology. The ongoing development in Kokomo will attract skilled talent, so we will always have a deep talent pool to draw from.”

—Anthony Cooper, Vice President of Engineering, Green Cubes Technology

A CEO’S GUIDE TO SITE SELEC TION

Iowa “My top priority as governor is to build on our current success by bringing new resources and opportunities to every corner of our state.

Every Iowan contributes to the success of their community and our state, and we celebrate this honor knowing that our work to build a better Iowa will never be finished."

—Gov. Kim Reynolds

TAXES

12% top corporate income tax rate

#45 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION 91% of students graduated high school in 2016

27.2% of adults age 25+

have a bachelor’s degree or higher

UNEMPLOYMENT RATE

2.6%, less than the

national average of 3.7% RIGHT TO WORK STATE

Yes

NEW GROWTH IN THE HAWKEYE STATE

BIG DEALS

Iowa is driving its economy with what it says are low operational costs, a pro-business environment and an educated workforce. In addition to furthering its reliance on wind energy, the state has seen a number of notable investments in the past year by Archer Daniels Midland, Tyson Fresh Meats and Michael Foods.

• Tyson Fresh Meats, a wholly owned subsidiary of Tyson Foods, announced in May a $43 million upgrade at its facility in Perry.

KEY INCENTIVES High Quality Jobs: Offers loans, forgivable loans, tax credits, exemptions and refunds for projects that create jobs defined by the state as “high quality.”

Economic Development Set-Aside (EDSA): Offers direct and forgivable loans of up to $1 million for projects that create manufacturing jobs, add value to Iowa resources or increase exports. Preference is given to projects that create or retain the greatest number of jobs with the least amount of program dollars.

New Jobs Tax Credit: Offers up to $1,794 per new employee for businesses that enter into a New Jobs (260E) agreement and commit to expanding their Iowa employment base by at least 10%.

Research Activities Credit: Offers a refundable credit for expenditures related to R&D, including wages, supplies and improvements to land and depreciable property.

Iowa Innovation Acceleration Fund: Offers financing to eligible businesses through two programs.

PROPEL awards up to $300,000 to accelerate market development; INNOVATION EXPANSION awards up to $500,000 to encourage the expansion of product lines.

EDCs Iowa Economic Development Authority iowaeconomicdevelopment.com Professional Developers of Iowa pdiowa.com Iowa Area Development Group iadg.com Greater Des Moines Partnership dsmpartnership.com

QUALITY OF LIFE

7.33 out of 10, 2018

Chief Executive Best & Worst States for Business POPULATION GROWTH

3.2% increase between

2010 and 2017

• Archer Daniels Midland announced in February it will invest in a $196 million expansion of its facilities in Clinton.

• Michael Foods announced in February an $85 million, 150,000-square-foot manufacturing and distribution facility in Norwalk that will create 168 new jobs.

• Invenergy announced in August it will start construction next year on two wind farms with 80 turbines at each location that can generate a combined 400 MW. • MidAmerican Energy, which is owned by Berkshire Hathaway, announced in May a $922 million investment in a 591 MW wind farm.

BIG COMPANIES Archer Daniels Midland MetalCraft Accumold Tyson Workiva Three Fortune 500 companies are headquartered in the state: Principal Financial Casey’s General Stores Rockwell Collins

C-SUITE TESTIMONIALS “It has been a decade since we started our first distribution center operations in Oelwein, and we are extremely pleased that we became part of this community.”

—Bob Flicker, COO, East Penn Manufacturing “We looked at numerous locations in the Midwest, and Norwalk had many advantages. We look forward to Michael Foods becoming a preferred employer in the area and being a part of the community.”

—Steve Schonhoof, Senior Vice President of Integrated Supply Chain, Michael Foods

HIGHLIGHTED PROGRAM OR INITIATIVE The Future Ready Iowa Act was passed in early 2018 and outlines education, workforce and business collaboration strategies to encourage more residents to obtain training and education beyond high school.

The program will hold 17 summits across the state, each with tailored discussions about how strategies can best be applied to communities.

2019 CEO GUIDE TO SITE SELECTION 41

A CEO’S GUIDE TO SITE SELEC TION

Kansas

STRONG GROWTH IN THE SUNFLOWER STATE

"We will make sure our schools prepare our children for a changing economy… with modern classrooms with modern technology.

We owe that to our children, to their parents and to the future of our state."

—Gov. Laura Kelly

TAXES

7% top corporate

income tax rate

#28 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

86% of students

graduated high school in 2016

Growth in Kansas’s manufacturing and logistics sectors continues to be driven by strong access to talent and the state’s central location. General Motors announced a $265 million investment here in February to support production of a new SUV, and Spirit Aerosystems continues its $1 billion expansion in Wichita. Overstock announced in August it will construct a 500,000-squarefoot distribution center in Kansas City.

KEY INCENTIVES Workforce Development Assistance: Offsets training costs on new technology or production activities through the Kansas Industrial Retraining (KIR) and Kansas Industrial Training (KIT) programs.

Promoting Employment Across Kansas (PEAK): Offers ability to retain 95% of payroll tax withholding for several years for qualified companies.

Machinery & Equipment Expensing Deduction and Property Tax Exemption: Offers an expense deduction for business machinery and equipment and a tax exemption for commercial and industrial machinery and equipment.

High Performance Incentive Program (HPIP): Offers a 10% corporate income tax credit on qualified capital investments for companies that pay above-average wages.

31.6% of adults age 25+ have a bachelor’s degree or higher

EDCs

UNEMPLOYMENT RATE 3.3%, less than the national average of 3.7%

Greater Wichita Partnership greaterwichitapartnership.org

RIGHT TO WORK STATE

Yes

Kansas Economic Development Alliance kansaseda.com/pages/default.aspx

Go Topeka gotopeka.com Kansas Department of Commerce kansascommerce.gov

QUALITY OF LIFE

7.25 out of 10, 2018

HIGHLIGHTED PROGRAM OR INITIATIVE

POPULATION GROWTH

In July 2018, former governor Jeff Coyler announced in July 2018 Land in Kansas, an economic development initiative that takes a comprehensive, multi-agency approach to economic growth. Key components include a new state marketing plan, a top-down review of development programs and a pilot program that enables communities to target specific areas for growth.

Chief Executive Best & Worst States for Business

2.1% increase between

2010 and 2017

42 2019 CEO GUIDE TO SITE SELECTION

BIG DEALS • General Motors announced in February 2018 a $265 million investment in its Fairfax Assembly & Stamping Plant in Kansas City to support production of the new Cadillac Crossover SUV. • Andersons and ICM created a joint venture in May 2018 for a $175 million investment in an ethanol plant in southeast Kansas.

• Palmer Manufacturing and Tank announced in August 2018 a $16 million manufacturing facility in Garden City and plans to hire 201 workers within three years.

• Overstock announced in August 2018 it will construct a 517,000-square-foot distribution center in Kansas City and create more than 100 new jobs in the next two years.

• VNA proposed in September 2018 a $100 million biofuel plant in Sumner County that would create 225 jobs.

BIG COMPANIES Cerner YRC Worldwide General Motors Cessna Aircraft Learjet Sprint Lansing Trade Group Seaboard (Fortune 500 headquarters)

C-SUITE TESTIMONIALS “The Fairfax team earned this investment because of their commitment to built-in quality and their focus on the customer.”

—Gerald Johnson, Vice President of North American Manufacturing, GM “Selecting Kansas City as the home of Overstock’s newest fulfillment center allows us to offer over 99% of our U.S. customers two-day shipping options, improving shopping experiences by getting orders into the customer’s hands as soon as possible.”

—Carroll Morale, Vice President of Supply Chain, Overstock.com

A CEO’S GUIDE TO SITE SELEC TION

Kentucky “My vision for this state is simple, and that is that we will be the center for engineering and manufacturing excellence in the United States of America.”

—Gov. Matt Bevin

TAXES

6% top corporate

income tax rate

#23 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION

89% of students

graduated high school in 2016

22.6% of adults age 25+

have a bachelor’s degree or higher

UNEMPLOYMENT RATE 4.5%, greater than the national average of 3.7% RIGHT TO WORK STATE

REDUCING RED TAPE

BIG DEALS

Kentucky continues to expand on its manufacturing assets while also pursuing new sectors in urban areas and trying to encourage more opportunity in rural communities. Gov. Bevin’s Red Tape Reduction Initiative aims to identify and review costly, ineffective or outdated regulations. Walmart, AgTech Scientific, Takigawa and Novelis have all made notable investments in Kentucky in the past year.

• AgTech Scientific announced in January 2018 it will create 271 jobs at a new hemp products manufacturing center in Paris.

KEY INCENTIVES Commonwealth Seed Capital: Offers debt or equity investments in early-stage business entities to facilitate the commercialization of innovation ideas or technologies.

Kentucky Business Investment (KBI) Program: Offers income tax credits and wage assessments to new and existing businesses in multiple industries.

Kentucky Enterprise Initiative Act: Offers a refund on Kentucky sales and use tax for building and construction materials permanently incorporated as an improvement in property.

Kentucky Reinvestment Act: Offers tax credits to existing companies engaged in manufacturing or related functions that invest at least $2.5 million in eligible equipment or related costs.

Kentucky New Energy Ventures Fund: Offers seed stage capital to support development and commercialization of renewable energy products, processes and services.

EDCs Kentucky Cabinet for Economic Development thinkkentucky.com

Yes

Kentucky Association for Economic Development kaedonline.org

QUALITY OF LIFE

Commerce Lexington locateinlexington.com

7.3 out of 10, 2018

Chief Executive Best & Worst States for Business

Louisville Forward louisvilleky.gov/government/louisville-forward

POPULATION GROWTH

2.6% increase between

2010 and 2017

HIGHLIGHTED PROGRAM OR INITIATIVE The Regional Innovation for Startups and Entrepreneurs is a new initiative to attract companies and support entrepreneurs through partnerships with universities, companies, accelerators and incubators.

• Takigawa broke ground in April 2018 on its first factory in the U.S. The $46 million flexible packaging and highperformance films plant is expected to create 180 jobs.

• Novelis broke ground in May 2018 on a $305 million automotive steel processing plant in Todd County. It will create 125 full-time jobs.

• Sunroof supplier Webasto Roof Systems announced in August 2018 a $15 million investment and 183 jobs.

• Walmart announced in August 2018 a $41 million e-commerce facility in Bullitt County that will create 400 jobs.

• Nucor announced in September 2018 a $650 million expansion at its steel mill near Ghent and the creation of 70 jobs.

BIG COMPANIES Ashland Global Holdings Ford Amazon Computershare Alorica Diversified Consultants Three Fortune 500 companies are headquartered in the state: Humana Kindred Healthcare Yum! Brands

C-SUITE TESTIMONIALS “With a strong, highly skilled workforce in Kentucky, we believe our culture and commitment to building a sustainable world together will have a lasting and positive impact on this community.”

—Steve Fisher, President and CEO, Novelis “We have been targeting locations that will allow us to serve our existing customers, as well as expand our business in the Southeast, and Kentucky lets us do that.... The Lexington facility also made it possible to reach parts of the Midwest and East.”

—Greg Klemenswics, President, Tru-Tone

2019 CEO GUIDE TO SITE SELECTION 43

A CEO’S GUIDE TO SITE SELEC TION

Louisiana “With Louisiana’s highly skilled workforce, low-cost business environment and top-tier quality of life, it comes as no surprise that our state remains a leader in attracting significant economic development projects.”

—Gov. John Bel Edwards

TAXES

8% top corporate

CHEMICAL MANUFACTURING AND TECH

BIG DEALS

Louisiana has steadily improved is business climate over the years. While the Pelican State remains a hub for petrochemical and chemical manufacturing, it’s also continuing to break new ground in tech. CGI announced in May an expansion at its IT Center of Excellence in Lafayette, and Accruent announced in June it will establish a technology center in New Orleans with 350 new jobs.

• Formosa Petrochemical company announced in April it will construct a $9.4 billion chemical manufacturing complex on a 2,400-acre site in St. James Parish and create 1,200 jobs.

KEY INCENTIVES Angel Investor Tax Credit: Offers up to a 25% tax credit for individual investors in early-stage, wealth-creating businesses that seek startup and expansion capital.

Enterprise Zone: Offers a $1,000 or $3,500 tax credit for each certified new job created and either a sales/use tax rebate on capital expenses or a 1.5% investment tax credit for qualifying expenses.

#44 on the Tax

Industrial Tax Exemption: Offers a property tax abatement for up to eight years on a manufacturer’s new investment and annual capitalized additions.

EDUCATION

Quality Jobs: Offers up to a 6% rebate on annual payroll expenses for up to 10 years, and either a state sales/use tax rebate on capital expenses or a 1.5% project facility expense rebate.

graduated high school in 2016

Research and Development Tax Credit: Offers tax credit up to 30% to existing businesses that operate in the state and establish or continue R&D.

income tax rate

Foundation’s State Business Tax Climate Index ranking

79% of students

• Twistlock announced in April it will establish a software engineering office in Baton Rouge with 42 new jobs.

• CGI announced in May it will expand its Lafayette IT Center of Excellence and create 400 jobs with a total payroll that will exceed $480 million in the coming years.

• Accurent announced in June 2018 it will establish a technology center of excellence in New Orleans with 350 new jobs.

• Shintech Louisiana LLC announced in July 2018 a $1.49 billion chlor alkali and vinyl chloride monomer production facility in Plaquemine.

BIG COMPANIES Dow Chemical ExxonMobile BASF-Chemical Acme Truck Line Turner Industries Group Two Fortune 500 companies are headquartered in the state: CenturyLink Entergy

23% of adults age 25+

have a bachelor’s degree or higher

UNEMPLOYMENT RATE 5.0%, greater than the national average of 3.7% RIGHT TO WORK STATE

Yes

EDCs

C-SUITE TESTIMONIALS

Louisiana Economic Development opportunitylouisiana.com

“Given the vibrant corporate community, tremendous growth opportunities and Accruent’s existing base of 50 Louisiana customers, New Orleans became the clear choice for our next wave of expansion.”

—John Borgerding, CEO, Accruent

Baton Rouge Area Chamber brac.org/economic-development Greater New Orleans Regional Economic Development gnoinc.org

QUALITY OF LIFE

6.13 out of 10, 2018

Chief Executive Best & Worst States for Business

POPULATION GROWTH 3.3% increase between 2010 and 2017

44 2019 CEO GUIDE TO SITE SELECTION

HIGHLIGHTED PROGRAM OR INITIATIVE LED FastStart has been recognized as a top workforce training program for nearly a decade. It works with new and expanding companies in targeted industries to develop recruiting, screening and state-of-the-art training solutions. Through collaboration with industry, FastStart has helped develop training centers and certification programs across the state.

“CGI is proud to make this renewed commitment to job creation in Lafayette, where a skilled and highly motivated workforce continues to exceed expectations on behalf of our clients undertaking critical digital transformation projects in Acadiana and across the country.”

—Dave Henderson, President of U.S. Commercial and State Government Operations, CGI “We selected Baton Rouge and Louisiana for our engineering center because of the state’s growing cybersecurity industry base, the business-friendly climate and the opportunity to develop a talent pipeline with a major research university in LSU.” —Ben Bernstein, CEO and Co-founder, Twistlock

A CEO’S GUIDE TO SITE SELEC TION

Maine “It’s time for a new direction—with bold and forward-looking proposals that will jumpstart economic growth. My economic action plan [supports] small businesses, developing our workforce, welcoming home Mainers to live and work here again and rebuilding our rural communities."

—Gov. Janet Mills

TAXES

8.93% top corporate income tax rate #30 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

87% of students

graduated high school in 2016

29.3% of adults age 25+ have a bachelor’s degree or higher UNEMPLOYMENT RATE 3.3%, less than the national average of 3.7% QUALITY OF LIFE

4.8 out of 10, 2018

Chief Executive Best & Worst States for Business POPULATION GROWTH

0.6% increase between

2010 and 2017

46 2019 CEO GUIDE TO SITE SELECTION

PROGRESS IN THE PINE TREE STATE

HIGHLIGHTED PROGRAM OR INITIATIVE

The Pine Tree State has been trying to improve its economy by expanding its manufacturing sector and seeking new opportunities. Port activity has grown in the past several years in Portland since Icelandic shipping company Eimskip established operations here in 2013.

Vets First Choice, Tyler Technologies, IDEXX Laboratories and Nordic Aquafarms have established or expanded operations in the state in the past year.

FocusMaine aims to increase prosperity in the state by creating quality jobs in sectors with high-growth potential, including agriculture, aquaculture and biopharmaceuticals.

KEY INCENTIVES Major Business Headquarters Extension Program: Offers a credit against the tax due for the taxable year in an amount equal to 2% of the qualified investment for a period of up to 20 years.

Maine Seed Capital Tax Credit Program: Offers state income tax credits to investors for up to 50% of cash equity they invest in eligible Maine businesses.

Maine Technology Asset Fund (MTAF): Offers bond money to be distributed to qualified Maine projects focused on investments in R&D and commercialization for infrastructure, equipment and technology upgrades that enable organizations to grow.

Technology Tax Credits: Offers significant credits and tax exemptions for everything from electricity to specialized equipment purchases related to R&D.

EDCs Maine Department of Economic & Community Development maine.gov/decd Maine & Co. mainco.org Maine Development Foundation mdf.org Greater Portland Economic Development Corp. gpedc.org Choose Bangor, Maine choosebangor.com

BIG DEALS • Vets First Choice announced it will build a $20 million corporate facility in Portland in February 2018 with an automated fulfillment center, state-of-the-art specialty pharmacy and a STEM center.

• Tyler Technologies opened in February 2018 a $25 million, 95,000-square-foot campus expansion in Yarmouth.

• IDEXX Laboratories broke ground in May 2018 on a $62 million expansion of its facilities in Westbrook.

• Norwegian aquaculture company Nordic Aquafarms announced it will construct a $500 million salmon farm in Belfast.

BIG COMPANIES L.L. Bean TD Bank, N.A. Unum Provident Pratt & Whitney Aircraft Group Athenahealth Cianbro Bath Iron Works

C-SUITE TESTIMONIAL “I’ve been a part of the Portland business community for the past 30 years, and I’ve watched our great city evolve and grow. With this new building, we’re making it clear we plan to evolve and grow with the city.”

—David Shaw, Co-founder and Chairman, Vet First

H

A CEO’S GUIDE TO SITE SELEC TION

Maryland

A NEW CYBERSECURITY INCENTIVE AND MORE HEADQUARTERS RELOCATIONS

“We are incredibly proud that Maryland is home to worldclass universities and federal laboratories, as well as private companies, that are hard at work advancing technology from the spark of an idea all the way to the marketplace....

We must continue to cultivate Maryland’s talented workforce and strengthen our federal and university partnerships so that Maryland can reach its full potential in the innovation economy.”

—Gov. Larry Hogan

TAXES

8.25% top corporate

income tax rate

#40 on the Tax Foundation’s State Business Tax Climate Index ranking

The Free State recently announced one of the first statewide cybersecurity investment incentive tax credits of its kind. It’s also seeing a wave of headquarters relocations with Vision Technologies, Paul Fredrick and Datawatch Systems recently announcing moves to the state. Also, Bank of America is adding 600 new jobs and The Container Store is building a distribution center in Perryman.

KEY INCENTIVES Biotechnology Investment Incentive Tax Credit: Offers income tax credit equal to 50% of an eligible investment in a qualified Maryland Biotechnology Company (QMBC) supporting investment in seed and early-stage biotech companies.

Cybersecurity Investment Incentive Tax Credit: Offers a refundable tax credit of 33% of the investment for venture capitalists, angel investors and others investing at least $25,0000 in a Qualified Maryland Cybersecurity Company.

Job Creation Tax Credit: Offers state income tax credits of up to $3,000 per job or $5,000 per job in a revitalization area.

One Maryland Tax Credit: Offers a state income tax credit of up to $5 million for businesses that invest in a project in a Tier 1 county and create a minimum number of jobs.

EDUCATION

Research and Development Tax Credit: Offers two separate state income tax credits for companies that have qualified R&D expenditures in the state.

graduated high school in 2016

EDCs

38.4% of adults age 25+ have a bachelor’s degree or higher

Maryland Economic Development Commission commerce.maryland.gov/commerce/boards-andcommissions/economic-development-commission

88% of students

UNEMPLOYMENT RATE 4.2%, greater than the national average of 3.7% QUALITY OF LIFE

6.38 out of 10, 2018

Chief Executive Best & Worst States for Business

POPULATION GROWTH 4.8% increase between 2010 and 2017

Maryland Economic Development Association medamd.com Maryland Economic Development Corp. medco-corp.com Economic Alliance of Greater Baltimore greaterbaltimore.org

HIGHLIGHTED PROGRAM OR INITIATIVE More Jobs for Maryland incentivizes manufacturers to create new jobs in the state by offering income tax credits, a state property tax credit, a sales and use tax refund and a State Department of Assessment and Taxation fee waiver. As of August 2018, more than 124 companies had taken advantage of the program and created 2,000 jobs.

BIG DEALS • Global systems integrator Vision Technologies announced in February 2018 it is relocating its headquarters in Anne Arundel County and will add 100 new jobs over the next five years.

• Bank of America announced in March 2018 it will add 600 new jobs at its Hunt Valley Complex by 2020.

• Online menswear retailer Paul Fredrick announced in July 2018 it will move its corporate office from Pennsylvania to Baltimore County and add 70 new jobs in the next five years.

• Commercial office security provider Datawatch Systems announced in July 2018 it is relocating its headquarters to Montgomery County and adding 50 new jobs in the next four years.

• The Container Store announced in September a 600,000-square-foot distribution center in Perryman that will create 150 jobs by the end of 2019.

BIG COMPANIES Under Armour McCormick & Co. Host Hotels & Resorts T. Rowe Price Group Three Fortune 500 companies are headquartered in the state: Lockheed Martin Marriott International Discovery

C-SUITE TESTIMONIALS "We appreciate all of the support we have received from the Maryland Department of Commerce and Anne Arundel County as we continue to grow. Anne Arundel County has been a great place to start and grow our company, and we are proud of what we have achieved."

—John Shetrone, President and CEO, Vision Technologies “We are pleased to be moving our office to Baltimore County.... Our team is looking forward to being in the greater Baltimore area, which has a long history in the apparel manufacturing business, and where we have the ability to hire from the area’s rich talent pool and terrific local colleges and universities.”

—R. Neal Black, CEO, Paul Fredrick “Harford County is an ideal location for The Container Store to be able to better serve our customers on the East Coast, and we look forward to becoming a part of this strong and vibrant community.”

—Val Richardson, Vice President of Real Estate, The Container Store

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A CEO’S GUIDE TO SITE SELEC TION

Massachusetts “Reauthorizing the Mass Life Sciences Initiative will facilitate stronger publicprivate partnerships and strategic investments to train our workforce and attract world-class companies to the commonwealth....

In partnership with the legislature, our administration remains dedicated to generating economic growth and supplying researchers with the tools they need to create new advancements in medical care.”

—Gov. Charlie Baker

TAXES

8% top corporate

income tax rate

#29 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION 88% of students graduated high school in 2016

41.2% of adults age 25+

have a bachelor’s degree or higher

UNEMPLOYMENT RATE 3.6%, less than national average of 3.7% QUALITY OF LIFE

5.52 out of 10, 2018

Chief Executive Best & Worst States for Business POPULATION GROWTH

4.8% increase between

2010 and 2017

48 2019 CEO GUIDE TO SITE SELECTION

LOOMING LARGE IN LIFE SCIENCES

BIG DEALS

The Bay State retains one of the top-performing economies in the country and is expanding its life sciences sector. Danish pharmaceutical company Novo Nordisk and Japanese drug maker Takeda have both announced headquarters here in the past year, and Reebok recently opened its new headquarters in the Seaport District of Boston.

• Reebok opened its new 220,000-square-foot headquarters in the Seaport District of Boston in March 2018.

KEY INCENTIVES The Economic Development Incentive Program: Offers state and local tax incentives in exchange for full-time job creation, manufacturing job retention and private investment commitments.

Job Creation Incentive Program: Offers incentive payments for the creation of new jobs engaged in research and development, production or provisioning of biotech or medical device manufacturers.

• 99Degrees Custom announced in August 2018 a new expansion in Lawrence with the goal of employing 350 people by 2022.

• Danish pharmaceutical company Novo Nordisk announced in September 2018 plans to establish a new business development unit in Cambridge.

• Japanese drug maker Takeda announced in September 2018 it will move its U.S. headquarters from Chicago to the Boston Area.

• Swiss Biotech startup Sophia Genetics announced in September 2018 it will open a U.S. headquarters in Boston.

Research and Development Tax Credit: Offers a tax credit for research and development investment for manufacturers and R&D companies.

BIG COMPANIES

Investment Tax Credit: Offers a 3% tax credit for qualifying businesses to invest in the purchase or lease of qualified tangible property used in the course of business operations.

General Electric Liberty Mutual Insurance Group TJX Massachusetts Mutual Life Insurance Thermo Fisher Scientific Biogen State Street Boston Scientific Global Partners

EDCs MassEcon massecon.com Massachusetts Economic Development & Finance Agency massdevelopment.com Boston Office of Economic Development boston.gov/departments/economic-development DevelopSpringfield developspringfield.com

HIGHLIGHTED PROGRAM OR INITIATIVE State officials broke ground in September on the Berkshire Innovation Center to further growth in western Massachusetts. The 20,000-square-foot center will offer advanced capabilities to assist small and midsized manufacturers in the life sciences sector.

12 Fortune 500 companies are headquartered in the state, including:

C-SUITE TESTIMONIAL “No entrepreneur builds a business alone. I fully recognize how lucky I am to build 99Degrees in Massachusetts. In Lawrence, I have found a dream workforce and an inspiriting mill space.”

—Brenna Nan Schneider, Founder and CEO, 99Degree Custom

A CEO’S GUIDE TO SITE SELEC TION

Michigan

TRANSFORMING DETROIT

"Michigan must target, grow and recruit the strongest, fastest-growing industries of the future and offer the talent, place, education and infrastructure necessary to compete with the world."

—Gov. Gretchen Whitmer

TAXES

6% top corporate

income tax rate

#13 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION

While Michigan remains a leader in manufacturing, it’s aiming to transform the global perception of Detroit.

Several new investments in the metro area, including $2.15 billion in a multi-site, mixed-use development, aims to change the direction. Amazon, Stryker, Pfizer and WABCO have also recently announced investments in the state.

KEY INCENTIVES Brownfield Program: Offers tax increment financing to reimburse costs related to redeveloping contaminated, functionally obsolete, blighted or historic properties.

Good Jobs for Michigan: Offers state withhold tax capture revenues of up to 100% for up to five to 10 years, depending on the average annual wage and number of certified jobs created.

• Amazon announced in May a $150 million fulfillment center in Kent County that will create 1,000 new jobs.

• Stryker announced in June 2018 it will invest $109 million in its 79-acre industrial site in Portage and will add 260 jobs by the end of 2025.

• Pfizer announced in July 2018 a $465 million production facility in Portage that will create more than 450 new jobs over the next several years.

• Glanbia and Select Milk Producers partnered in August 2018 and announced a $425 million dairy processing facility in St. Johns that will create 259 new jobs.

BIG COMPANIES 19 Fortune 500 companies are headquartered in the state, including:

Michigan Community Revitalization Program: Offers a variety of economic incentives to accelerate private investment in declining areas.

General Motors Ford Motor DowDuPont Penske Automotive Group Whirlpool Lear Kellogg Stryker Ally Financial

EDCs

C-SUITE TESTIMONIALS

Michigan Economic Development Corp. michiganbusiness.org

“Downtown Sparta was the ideal location for our cybersecurity research lab.... West Michigan’s low cost of doing business, combined with its talented pool of technology workers, will make our company more competitive.”

—Brian DeMuth, CEO, GRIMM

Michigan Business Development Program: Offers grants, loans and other economic assistance to businesses for highly competitive projects that create jobs.

80% of students

graduated high school in 2016

27.4% of adults age 25+

have a bachelor’s degree or higher

UNEMPLOYMENT RATE

4.0%, greater than

national average of 3.7% RIGHT TO WORK STATE

Yes

Michigan Economic Developers Association medaweb.org Detroit Economic Growth Corp. degc.org Lansing Economic Development Corp. edc.lansingmi.gov Lansing Economic Area Partnership purelansing.com/About-LEAP

QUALITY OF LIFE

6 out of 10, 2018

Chief Executive Best & Worst States for Business POPULATION GROWTH

0.8% increase between

2010 and 2017

BIG DEALS • WABCO announced in April it will locate its headquarters in Auburn Hills and create 87 new jobs.

• Bedrock Management Services announced in May a $2.15 billion multi-site, mixed-use development in downtown Detroit that will support 7,738 full-time jobs.

“These landmark developments are a milestone representing Detroit’s credible new era of hope, optimism and growth.”

—Dan Gilbert, Founder and Chairman, Bedrock Management Services “The support of local and state agencies demonstrates why Michigan is such a great location to invest....

We are looking forward to getting up and running with our partners and farmers, providing world-class dairy products while bringing jobs and economic development to the state.”

—Brian Phelan, CEO, Glanbia Nutritionals

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Minnesota "Our state is strong because our investments pay off, whether it’s funding our children’s education, our communities’ services or our state’s infrastructure."

—Gov. Tim Walz

TAXES 9.8% top corporate income tax rate

#43 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION

82% of students

graduated high school in 2016

34.2% of adults age 25+

have a bachelor’s degree or higher

UNEMPLOYMENT RATE 2.8%, less than the national average of 3.7%

RENEWED RURAL GROWTH

BIG DEALS

Officials in the North Star State have been striving to expand some of the state’s development into rural areas. HVAC manufacturer Daikin announced in August an expansion of its operations in Faribault, and Digi-Key recently broke ground on a $300 million expansion in Thief River Falls where it now employs 3,000 people.

• Stars Hallow announced in February 2018 a $12.3 million aquaponics facility in Cambridge that will create 156 jobs.

KEY INCENTIVES Greater MN Job Expansion Program: Offers up to $2 million annually (up to $10 million over a seven-year certification period) in sales tax rebates for qualifying businesses that increase employment.

Data Center Tax Incentives: Offers equipment sales tax exemptions for 20 years for companies that invest at least $30 million in data or network operations centers.

R&D Tax Credit: Offers a tax credit of up to 10% of qualifying expenses up to $2 million, and an additional 2.5% for expenses for companies that engage in certain R&D activities.

Angel Tax Credit: Offers a 25% credit to investors or funds that put money into startups focused on high technology or proprietary products, processes or services in specialized fields.

EDCs Minnesota Department of Employment and Economic Development mn.gov/deed Minnesota Economic Development Foundation mnedf.org

QUALITY OF LIFE

Minneapolis St. Paul Regional Economic Development Partnership greatermsp.org

Chief Executive Best & Worst States for Business

University of Minnesota Duluth Center for Economic Development umdced.com

6.29 out of 10, 2018

POPULATION GROWTH

5.1% increase between

2010 and 2017

50 2019 CEO GUIDE TO SITE SELECTION

HIGHLIGHTED PROGRAM OR INITIATIVE The PIPELINE (Private Investment, Public Education, Labor and Industry Experience) Program helps employers create or enhance a competency based dual-training approach where workers receive instruction and on-thejob training. The Minnesota Office of Higher Education offers grants in the high-growth industries of advanced manufacturing, agriculture, healthcare services and information technology.

• Protolabs announced in April 2018 a $30 million expansion in Brooklyn Park that will add 139 jobs.

• Digi-Key broke ground in July 2018 on a $300 million, 2.2 million-square-foot expansion in Thief River Falls.

• HVAC manufacturer Daikin announced in August 2018 it will invest $40 million in an expansion of its operations in Faribault and will create 132 jobs.

BIG COMPANIES 19 Fortune 500 companies are headquartered in the state, including: Target United Health Group Best Buy CHS U.S. Bancorp 3M General Mills Supervalu C.H. Robinson Worldwide

C-SUITE TESTIMONIALS “We are excited about the growth we’ve experienced in machining.... Opening an additional facility in Brooklyn Park, along with investing in more machining and injection molding equipment around the world, demonstrates our ability to evolve and increase the services we provide to our customers as we capture share in this dynamic market."

—Rob Bodor, Vice President and General Manager, Protolabs “Our original commitment was to generate 100 new jobs in Thief River Falls per year over 10 years, above and beyond our 2017 base of 3,200, which was conservative, so we are exceeding our projected employment already.”

—Rick Trontvet, Vice President of Administration, Digi-Key

A CEO’S GUIDE TO SITE SELEC TION

Mississippi “The Golden Triangle region is a strong manufacturing hub with a skilled workforce, which provides companies with ample opportunities for growth.”

—Gov. Phil Bryant

TAXES

5% top corporate

income tax rate

#31 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 82% of students graduated high school in 2016

21% of adults age 25+

have a bachelor’s degree or higher

A NEW LEVEL IN MANUFACTURING

BIG DEALS

German tire manufacturing Continental Tire is on track to have its $1.45 billion plant in Clinton operational by 2020 and will have 2,500 workers within nine years.

But the 2016 deal was only the start of a wave of deals bringing new manufacturers to the state. General Atomics, Toyota, Sephora and Steel Dynamics have made recent investments. Raytheon also announced a $100 million expansion of its manufacturing operations in Forest.

• General Atomics announced in March 2018 its 10th expansion in 13 years in Shannon. The $20 million project will add 48 jobs.

KEY INCENTIVES

• Raytheon announced a $100 million expansion of its radar manufacturing capabilities in Forest with dozens of new jobs over the next five years.

Advantage Jobs Rebate Program: Offers a cash rebate equal to a percentage of payroll for up to 10 years for projects where the average wage meets requirements.

Income Tax Exemption for Aerospace Businesses: Offers an income tax exemption and additional tax incentives for aerospace businesses that invest at least $30 million and create 100 full-time jobs.

Jobs Tax Credit: Offers a tax credit of up to 10% of payroll for each newly created job.

Manufacturing Investment Tax Credit: Offers an investment tax credit against state income tax liability for manufacturers that have operated in the state for at least two years and invest an additional $1 million or more in buildings and equipment.

National or Regional Headquarters Tax Credit: Offers an income tax credit for companies that locate or transfer their headquarters operations to the state.

UNEMPLOYMENT RATE

EDCs

national average of 3.7%

Mississippi Development Authority mississippi.org

RIGHT TO WORK STATE

Mississippi Economic Development Council medc.ms

4.8%, greater than the

Yes

QUALITY OF LIFE 5.18 out of 10, 2018 Chief Executive Best & Worst States for Business

Mississippi Economic Council msmec.com Greater Jackson Alliance greaterjacksonms.com

POPULATION GROWTH

HIGHLIGHTED PROGRAM OR INITIATIVE

2010 and 2017

Mississippi State University’s CAVS Extension has worked with more than 150 companies in the past 12 years and can help launch new products, develop training programs, lead a lean transformation and assist in plant turnarounds.

0.5% increase between

• Toyota announced in April 2018 it will invest $170 million in new production lines at its Blue Springs facilities and create 400 jobs over the next 12 months.

• Steel Dynamics announced in June 2018 a $200 million expansion at its operations in Columbus that will create 45 jobs over the next three years.

• Global beauty retailer Sephora opened in August 2018 a 720,000-square-foot distribution center in Olive Branch with 220 workers.

BIG COMPANIES Toyota Nissan North America Sanderson Farms Continental Tire Ashley Furniture Peavey Electronics Milwaukee Tool

C-SUITE TESTIMONIALS “Mueller Industries has been supporting Northeast Mississippi since the late '60s. Our Fulton warehousing and distribution investments are the latest examples in our long history of working with local and state authorities to provide jobs, growth and new developments in the region.”

—Jeff Martin, CFO, Mueller Industries “The investment we are making here is indicative of the economic climate in the state, the great people of DeSoto County and the confidence we have in the future of our business. We are proud to be a new member of the community and look forward to redefining innovation in the retail industry.”

—Satish Malhotra, COO, Sephora Americas “Construction of a new radar production facility is the next step in our decades-long partnership with the state of Mississippi and its highly skilled workforce.... Together we will integrate, test and deliver the most technologically advanced military radar systems to our U.S. and international customers.”

—Wes Kramer, President, Raytheon’s Integrated Defense Systems business

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Missouri "By helping businesses train new and existing workers, we’re helping them stay competitive and remain here in Missouri.”

—Gov. Mike Parson

TAXES

6.25% top corporate income tax rate #14 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION 89% of students graduated high school in 2016

27.6% of adults age 25+

have a bachelor’s degree or higher

UNEMPLOYMENT RATE

3.2%, less than the

national average of 3.7%

QUALITY OF LIFE 6 out of 10, 2018 Chief Executive Best & Worst States for Business POPULATION GROWTH

2.1% increase between

2010 and 2017

BEST IN THE MIDWEST

BIG DEALS

The Show-Me State aims to elevate its national profile through its Best in Midwest initiative to rethink its economic development strategy. A number of major expansions and relocations have been made in the past year, including a new headquarters for Save-aLot, an Amazon fulfillment center and a CVS retail distribution center.

• Automotive technology company Faurecia announced in February 2018 a $60 million production facility and more than 300 new jobs in Blue Springs.

KEY INCENTIVES Missouri BUILD (Business Use Incentives for LargeScale Development): Offers financial incentives for the location or expansion of large business projects in the state that invest a minimum of $15 million ($10 million for an office industry project) and create at least 100 jobs.

Missouri Works: Offers multiple programs of achievable, flexible benefits and incentives for companies that create quality jobs in the state.

Manufacturer Sales Tax Exemption: Offers an exemption on state sales tax for qualifying expenditures ranging on things such as machinery, materials, energy and water.

EDCs Missouri Department of Economic Development ded.mo.gov Missouri Economic Development Council showme.org Missouri Partnership missouripartnership.com Economic Development Corporation of Kansas City edckc.com St. Louis Economic Development Partnership stlpartnership.com

HIGHLIGHTED PROGRAM OR INITIATIVE The Best in Midwest initiative was launched in April 2018 to create a new, statewide strategy for economic development led by the Department of Economic Development (DED). With the help of PwC, the DED will conduct a complete, top-to-bottom review of the economic development strategy, identify opportunities for growth and make recommendations for how the state can expand its potential.

• Nestlé announced in March 2018 it will purchase a line from Conagra Brand’s Trenton manufacturing facility and add 135 jobs.

• Amazon announced in March 2018 it will create more than 1,500 full-time jobs at a new fulfillment center in St. Peters.

• Save-A-Lot announced in April 2018 the start of construction of a165,000-square-foot headquarters in St. Ann. • Financial services company Square announced in May 2018 an expansion of its operations in St. Louis with 300 new jobs.

• CVS Health opened a new retail distribution center with 360 new jobs in Kansas City in August 2018.

BIG COMPANIES 10 Fortune 500 companies are headquartered in the state, including: Express Script Holdings Centene Emerson Electric Monsanto Reinsurance Group of America O’Reilly Automotive Jones Financial Graybar Electric Olin

C-SUITE TESTIMONIALS “We appreciate the leadership of Gov. Mike Parson and all of the state and local officials here who worked with us to make this project a success.... As our business continues to grow, this new facility is a critical part of our infrastructure to ensure we can best serve our customers throughout the Midwest region and beyond.”

—Thomas Moriarty, Chief Policy and External Affairs Officer, CVS Health “Kansas City Metro and the Blue Springs area are known for being a source of excellence in American manufacturing, and we’re looking forward to building on that expertise and skill set as we continued to provide the very best to our customers.”

—Donald Hampton Jr., President, Faurecia Interiors, North America “St. Louis has been home to Save-A-Lot for more than 40 years, and we are proud to continue our association with this great city.... Our desire to build for the future in state-ofthe-art facilities with continued access to great talent on our doorstep underpins this decision.”

—Kenneth McGrath, President and CEO, Save-A-Lot

52 2019 CEO GUIDE TO SITE SELECTION

A CEO’S GUIDE TO SITE SELEC TION

Montana “Montana is increasingly seen as an ideal choice for companies that not only value a strong business climate and an educated workforce but a place where quality of life matters."

—Gov. Steve Bullock

TAXES

6.75% top corporate income tax rate #5 on the Tax Foundation’s State Business Tax Climate Index ranking

BIG TECH IN BIG SKY COUNTRY

BIG DEALS

Montana is making a name for itself in tech as dozens of startups drive new growth in the cities of Missoula and Bozeman. According to a report by ACT | The App Association, more than 3,700 Montanans now work in the app economy, and that number is expected to grow by 18% by 2024. Israeli tech firm 4Cast recently selected Missoula as the location of a base office.

• Israeli company 4Cast announced in April 2018 it will open its U.S. office in Missoula and hire more than 100 employees over the next several years.

KEY INCENTIVES Big Sky Trust Fund: Offers projects in “high poverty counties” incentives of up to $7,500 per job for land, equipment, rehabilitation costs and employee training.

New or Expanding Industry Tax Abatement: Offers a tax abatement of up to 75% for the first five years of operation to businesses that earn half or more of their annual gross income from out-of-state sales.

New Markets Tax Credit: Offers credits that can be used or sold for projects that have a at least a $4 million investment.

Private Sector Workforce Training Grant: Offers up to $5,000 for training expenses per eligible job created.

EDUCATION

86% of students

graduated high school in 2016

29.9% of adults age 25+

have a bachelor’s degree or higher

UNEMPLOYMENT RATE

3.6%, less than the

national average of 3.7% QUALITY OF LIFE

7.58 out of 10, 2018

Chief Executive Best & Worst States for Business

POPULATION GROWTH 6.2% increase between 2010 and 2017

EDCs Montana Governor’s Office of Economic Development business.mt.gov Montana Economic Developers Association medamembers.org/meda Montana Business Assistance Connection mbac.biz Missoula Economic Partnership missoulapartnership.com

• Cognizant announced in September 2018 it would acquire Missoula-based Advanced Technology Group.

The company expects to add more employees in the coming years.

• Elemental Scientific Lasers announced in January 2018 it acquired a Bozeman-based photonics company and will relocate the company’s production facility from Singapore to Bozeman.

BIG COMPANIES Oracle OnXmaps Blackmore Sensors Proof Research Foundant Technologies CrossTx Iron Core Labs Open Source LumenAd

C-SUITE TESTIMONIAL “In our search for a U.S. base, we were particularly impressed with the enthusiasm, responsiveness and cooperation we received.... We believe that the support and cooperation offered, coupled with the availability of a talented and educated workforce in the area, offers an amazing opportunity to forge a strong and successful U.S. presence for 4Cast in the future.”

—Nissim Titan, CEO, 4Cast

Big Sky Economic Development bigskyeconomicdevelopment.com

HIGHLIGHTED PROGRAM OR INITIATIVE Gov. Steve Bullock and Lt. Gov. Mike Cooney announced in September 2018 Main Street Montana Rural Partners, an initiative to help build economic opportunities in small towns and tribal communities around the state.

2019 CEO GUIDE TO SITE SELECTION 53

A CEO’S GUIDE TO SITE SELEC TION

Nebraska

CREATING NEW OPPORTUNITY IN THE CORNHUSKER STATE

“You want to make sure every young person born in the state has the same opportunities you have had to pursue the American dream.... The vision for my administration is to grow Nebraska. And by that, I mean to create more and better-paying jobs, keep our kids and grandkids here [and] attract other people from around the country and the world.”

—Gov. Pete Ricketts

TAXES

7.81% top corporate income tax rate #24 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 89% of students graduated high school in 2016

30% of adults age 25+

have a bachelor’s degree or higher UNEMPLOYMENT RATE

2.8%, less than the

national average of 3.7% RIGHT TO WORK STATE

Yes

QUALITY OF LIFE 7.6 out of 10, 2018 Chief Executive Best & Worst States for Business POPULATION GROWTH

5.1% increase between

2010 and 2017

54 2019 CEO GUIDE TO SITE SELECTION

Nebraska has been spinning its agricultural assets into a thriving biotech sector and growing its manufacturing base. Veramaris, a joint venture of DSM and Evonik, is constructing a $200 million facility to make Omega-3 fatty acids from natural marine algae. Prairie Catalytic also opened in September 2018 a $50 million biobased ethyl acetate production facility in Columbus. And in Lincoln, Kawasaki Motors will fabricate and assemble more than 1,600 New York subway cars, starting in 2021.

KEY INCENTIVES Angel Investment Tax Credit: Offers a refundable state income tax credit for investors in early-stage companies based in Nebraska with more than 51% of their employees in the state.

Customized Job Training Advantage: Offers grants of $800 to $4,000 per qualified job for flexible and discretionary job training.

Nebraska Advantage Act: Offers multi-tiered benefits for companies that invest and create jobs in the state.

Ranges from Tier 1 with $1 million new investment and 10 new full-time jobs to Super Tier 6 with $103 million investments and 50 new full-time jobs.

Nebraska Advantage Research and Development Credit: Offers a refundable tax credit of 15% to 35% for R&D expenditures in the state.

Rural Development Advantage: Offers refundable tax incentives for projects that invest and create jobs in rural areas.

EDCs Nebraska Department of Economic Development opportunity.nebraska.gov Southeast Nebraska Development District sendd.org Northeast Nebraska Economic Development District nenedd.org Lincoln Partnership for Economic Development selectlincoln.org

HIGHLIGHTED PROGRAM OR INITIATIVE In August 2018, Gov. Pete Ricketts announced the Nebraska Governor’s Council for International Relation’s strategic plan for international engagement. The long-term strategy for growing the state’s international investment and trade business profile identified several main areas targeted for concerted growth initiatives.

This includes a strategic, five-year trade mission schedule, new education and training opportunities to grow state exports, a network of goodwill ambassadors and partnerships with educational institutions.

BIG DEALS • Costco announced in January 2018 it will construct a $400 million chicken processing plant in Fremont.

• Kawasaki Motors announced in February 2018 it landed a $3.6 billion contract to manufacture 1,612 subway cars for the New York City Transit Authority. The cars will be fabricated and assembled in the Lincoln plant, with mass production beginning in 2021.

• Pacific Engineering opened in August 2018 a 20,000-square-foot expansion of its R&D and production facilities in Roca, adding 20 new jobs.

• Prairie Catalytic opened in September 2018 a $50 million biobased ethyl acetate production facility in Columbus. The project will create 20 jobs.

• Veramaris is nearing completion of a $200 million facility in Blair to make Omega-3 oil from natural marine algae.

BIG COMPANIES Five Fortune 500 companies are headquartered in the state: ConAgra Foods Berkshire Hathaway Union Pacific Kiewit Mutual of Omaha

C-SUITE TESTIMONIALS “With the state funds we’ve received through DED, PEI has been able to supplement the Navy’s SBIR investment into our company, allowing us to reduce risk and accelerate our technological innovation, producing a greater return on investment.... This has enabled us to create more jobs and boost our future production here in Nebraska.”

—Dexter Myers, Vice President, PEI “A contract of this magnitude is obviously an extremely positive circumstance for Kawasaki, its workforce and the surrounding communities.... The economic impact on the state of Nebraska could be felt for years to come.”

—Jason Hellbusch, Senior Manager, Kawasaki “A permitting process that can take months in other states can now be completed in a matter of days, right here, in Nebraska.... It’s because of this and the talented people in this great state that we are at home here and continue to grow our business in Nebraska.”

—Mike Coleman, Senior Director of Data Center Operations, Yahoo

A CEO’S GUIDE TO SITE SELEC TION

Nevada "The past eight years have shown that our state government can actively partner with the private sector to bring small businesses to Nevada and diversify our economy. As governor, I will build on that success and bring new ideas to Carson City to help small businesses grow and thrive."

—Gov. Steve Sisolak

TAXES No corporate income tax

#9 on the Tax Foundation’s State Business Tax Climate Index ranking

EDUCATION 74% of students graduated high school in 2016

23.2% of adults age 25+ have a bachelor’s degree or higher UNEMPLOYMENT RATE 4.5%, greater than the national average of 3.7% RIGHT TO WORK STATE

Yes

QUALITY OF LIFE 6.46 out of 10, 2018 Chief Executive Best & Worst States for Business POPULATION GROWTH

11% increase between 2010 and 2017

A NEW PLACE IN THE GLOBAL ECONOMY

BIG DEALS

Nevada is elevating its global profile. Former Gov. Brian Sandoval made recent trade missions to Africa and Spain and used the Nevada Global initiative to partner with economic development agencies abroad to identify businesses to connect with the state’s startup accelerator community. Sodifel, Cascade Financial Technology and Axion have all announced investments here in 2018. And Tesla’s Gigafactory continues to expand, with total investments in the project now nearing $4 billion.

• Sodifel America, one of the world’s largest tissue producers, announced in January 2018 it will expand operations in southern Nevada and create 67 jobs.

KEY INCENTIVES Data Center Abatement: Offers abatement of up to 75% of the taxes due for 10- to 20-year periods for personal property tax and sales and use tax.

Modified Business Tax Abatement: Offers a tax abatement of half of the 1.475% rate on quarterly wages exceeding $50,000.

Sales and Use Tax Abatement: Offers a tax abatement on quality capital equipment purchases, with reductions in the rate to as low as 2%.

Silver State Works Employee Hiring Incentive: Offers up to $2,000 per employee in incentive reimbursements and training allowances for new employees.

EDCs Nevada Governor’s Office of Economic Development diversifynevada.com Nevada Economic Development Conference nevadaeconomicdevelopmentconference.com Las Vegas Global Economic Alliance lvgea.org Economic Development Authority of Western Nevada (Reno/Sparks/Tahoe) edawn.org

HIGHLIGHTED PROGRAM OR INITIATIVE The Nevada Global Initiative aims to attract highgrowth international companies looking to establish footholds and expand in the U.S. The Governor’s Office of Economic Development has worked with foreign partners to identify companies with success in their domestic markets that are preparing to enter the U.S. market and are a good fit in targeted sectors. The first major Nevada Global recruiting and vetting event will take place in Poland later in 2018.

• Cascade Financial Technology announced in March 2018 an expansion in Clark County with the potential for 300 jobs over the next five years.

• Axion, a provider of satellite broadband-based entertainment, announced a $30 million investment in May 2018 in Washoe County that will create 205 jobs.

• In August 2018, Tesla’s Gigafactory surpassed capital investment benchmarks tied to state tax incentives.

It currently has 3,249 employees and total capital investments of $3.7 billion.

• Ryze Renewables Holdings announced in August 2018 it would build two diesel fuel plants in Nevada and create more than 750 jobs.

BIG COMPANIES Zappos Switch SolarCity BrightSource Four Fortune 500 companies are headquartered in the state: Las Vegas Sands MGM Resorts International Caesars Entertainment Wynn Resorts

C-SUITE TESTIMONIALS “Scientific Games is proud to call Las Vegas home for our global headquarters. The city and community are wonderful supporters of our industry and our customers and, of course, you can’t beat the weather.”

—Todd Clark, Vice President of Global Facilities, Scientific Games “Las Vegas remains the ideal place for us to continue growing our operations…. With a 24/7 call center, it is great to be in a 24/7 town that offers a well-trained workforce and convenient commuting options for employees.”

—Spencer Schmerling, Founder and CEO, Cascade “Nevada has been home to Allegiant’s headquarters since 2001, and the company’s ties to the Silver State go back even further to our first route between Frisco and Las Vegas. It’s an ideal base of operations in virtually every way—from the business-friendly environment to the incredible network of supportive partners and world-class academic institutions.”

—Scott Sheldon, COO, CFO, Vice President, Allegiant

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A CEO’S GUIDE TO SITE SELEC TION

New Hampshire “No income or sales tax, great schools, incredible natural beauty, ease of access to urban centers and a vibrant and dynamic workforce all contribute to there really being no better place to live, work and raise a family.”

—Gov. Chris Sununu

TAXES 8.2% top corporate income tax rate

#6 on the Tax Foundation’s State Business Tax Climate Index ranking

EDUCATION 88% of students graduated high school in 2016

35.5% of adults age 25+

have a bachelor’s degree or higher

UNEMPLOYMENT RATE

2.7%, less than the

GROWTH IN THE GRANITE STATE

BIG DEALS

An attractive business and tax environment coupled with a high quality of life is driving new investments in the Granite State. AutoStore Systems of Norway will locate its U.S. headquarters in Derry, and Revision Military is opening its center of excellence in Portsmouth. BAE Systems and Hitchiner have also announced new manufacturing facilities in the state.

• Revision Military announced in May 2018 it will expand operations and locate its center of excellence in Portsmouth.

KEY INCENTIVES No use tax, sales tax, inventory tax, capital gains tax, broad-based income tax or tax on professional services.

R&D Tax Credit: Offers a tax credit of up to 10% of a business’s qualified manufacturing R&D expenditures for up to $50,000 per year.

Economic Revitalization Zone Tax Credit: Offers a tax credit of up to $40,000 annually for a total of six years against business profits and enterprise taxes for those located in an unused or underutilized industry park, land or structure.

EDCs New Hampshire Economic Development nheconomy.com Business and Industry Association biaofnh.com New Hampshire Economic Development Association nhedaonline.org Manchester Development Corp. manchesterdevelopmentcorp.com

national average of 3.7%

HIGHLIGHTED PROGAM OR INITIATIVE

QUALITY OF LIFE 8.42 out of 10, 2018 Chief Executive Best & Worst States for Business

In June 2018, Gov. Chris Sununu signed into law SB 564, which offers a 10-year tax exemption from both the state business profits tax and enterprise tax for companies that have at least 75% of their taxable activities in the Advanced Regenerative Manufacturing Institute in Manchester.

POPULATION GROWTH

2% increase between

2010 and 2017

56 2019 CEO GUIDE TO SITE SELECTION

• BAE Systems announced in September 2018 it will expand its operations in Manchester and create 400 new jobs.

• Prudential Cleanroom Services opened a cleanroom laundry processing facility in Nashua in June 2018 with 85 new jobs. Two additional phases will add more than 60,000 square feet in the coming years.

• Hitchiner Manufacturing announced in April 2018 a $50 million factory and 85 new jobs in Milford.

• Norwegian cube storage company AutoStore System opened its U.S. headquarters in Derry in June 2018.

BIG COMPANIES Liberty Mutual Infosys Limited Universal Software Dataserv Fidelity Investments Akken Tata Consultancy Services Liberty Life Assurance

C-SUITE TESTIMONIALS “Expanding in New Hampshire would not have been possible without the support of state and local government. The high cost of energy in New Hampshire can be an especially high hurdle.... Fortunately, Hitchiner was able to work through these challenges with the governor’s office, the N.H. Department of Business & Economic Affairs and the town of Milford.”

—John H. Morison, CEO, Hitchiner “Revision's expansion to New Hampshire depends on the company’s already well-founded commitment to U.S.-based operations and manufacturing.”

—Jonathan Blanshay, CEO, Revision Military “From an entrepreneur’s standpoint, there’s an incredible vision with ARMI (Advanced Regenerative Manufacturing Institute) and what this could look like in the next several years. At its core value, if you think about what it could mean for this area, if you truly become the Silicon Valley for biofabrication, it is a course direction that will impact this area and region for many, many years to come.”

—Michael Golway, CEO, Advanced Solutions Life Sciences

A CEO’S GUIDE TO SITE SELEC TION

New Jersey “I am an optimist. I believe New Jersey’s best days are before us and that our future is unlimited.”

—Gov. Phil Murphy

TAXES

9% top corporate

income tax rate

#50 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 90% of students graduated high school in 2016

37.5% of adults age 25+ have a bachelor’s degree or higher UNEMPLOYMENT RATE 4.2%, greater than the national average of 3.7% QUALITY OF LIFE

4.31 out of 10, 2018

Chief Executive Best & Worst States for Business

POPULATION GROWTH 2.4% increase between 2010 and 2017

LEADING IN LIFE SCIENCES

BIG DEALS

New Jersey remains a leader in life sciences, with more than 3,000 facilities operating across the state and over 117,000 people employed in the sector. The state is home to headquarters or major facilities of 12 of the top 20 biopharmaceutical companies in the world. In 2018, Teva Pharmaceuticals announced it would locate its headquarters in Parsippany-Troy Hills and create 1,000 jobs.

• Celgene announced in February 2018 it will open a 135,000-square-foot CAR-T cell therapy facility at its Summit West Campus.

KEY INCENTIVES Grow NJ: Offers state income tax credits of up to $5,000 per job annually, with bonus credits of up to $3,000 per job for businesses that create or retain jobs in the state.

Manufacturing Equipment and Employment Investment Tax Credit: Offers a tax credit for the acquisition of manufacturing equipment and/or for an increase in employees resulting from the acquisition of such equipment.

NJ CoVest Fund: Offers capital to early-stage technology and life sciences companies where a funding gap exists and limited funds are available.

Technology Business Tax Certificate Transfer Program (NOL): Enables New Jersey-based companies to sell their net operating tax losses and R&D credits to unrelated profitable corporations.

EDCs New Jersey Economic Development Authority njeda.com Choose New Jersey choosenj.com Newark Community Economic Development Corp. newarkcedc.org Greater Trenton greatertrenton.org

HIGHLIGHTED PROGRAM OR INITIATIVE Research with NJ is a new portal that showcases the state’s experts in science, technology, engineering and mathematics. The database and collaborative effort offer access to New Jersey’s cutting-edge research assets with the goal of strengthening the ties between industry and academia.

• Three companies headquartered in India—Trioktekh System, DRP Buildcon, and Sharp Engineering Exports— opened their first offices in New Jersey in June 2018.

• Teva Pharmaceuticals announced in July 2018 it would locate its headquarters in Parsippany-Troy Hills and support more than 1,000 high-wage jobs.

• RWJBarnabas announced in July 2018 it will invest $100 million immediately, and more than $1 billion over the next 20 years, in a public-private partnership with Rutgers University.

• Telligent opened a $60 million expansion of its operations in August 2018 in Buena Vista Township and will double its employment to 225 jobs.

BIG COMPANIES 22 Fortune 500 companies are headquartered in the state, including: Johnson & Johnson Prudential Financial Honeywell Merck & Co. PBF Energy Cognizant Technology Solutions Newell Brands Celgene ADP Bed Bath and Beyond

C-SUITE TESTIMONIALS “This is a transformational partnership for RWJBarnabas Health and Rutgers University, but, more importantly, for the people of New Jersey and beyond.... Together, we are poised to develop a widely renowned academic health system, driving medical innovations and clinical research to influence outcomes across the nation.”

—Barry Ostrowsky, CEO, RWJBarnabas “We’re pleased to expand our presence in New Jersey, having closer proximity to a vibrant business hub and a dynamic life sciences environment—all while increasing jobs and preserving many existing roles.”

—Brendan O’Grady, Executive Vice President and Head of North America Commercial, Teva Pharmaceuticals

2019 CEO GUIDE TO SITE SELECTION 57

A CEO’S GUIDE TO SITE SELEC TION

New Mexico "Increasing access to a quality education will not only ensure that working professionals have every opportunity to succeed in today’s changing economy but also ensure that businesses have access to the workforce they need to grow the economy and create jobs.”

— Gov. Michelle Lujan Grisham

TAXES

5.9% top corporate

income tax rate

THE ATTRACTION OF ALBUQUERQUE

BIG DEALS

While there’s much work to be done to improve the Land of Enchantment’s economy, its capital city continues to be a bright spot for tech and STEM careers.

Vitality Works, 2NDGEAR, Corrugated Synergies and Indica Labs have all announced expansions or new developments here in the past year. Facebook has also announced more expansions at its data center in Las Lunas.

• Facebook announced in November 2017 another expansion of its data center in Las Lunas, bringing the company’s total investment to more than $1 billion.

KEY INCENTIVES

• Corrugated Synergies International opened a $31 million renovated facility in Santa Teresa in June 2018 and added 120 new jobs.

Angel Investment Credit: Offers a state income tax credit of 25% (up to $62,500) for an investment made in up to five state companies that are engaged in research or manufacturing.

Financial Management Tax Credit: Offers a state income tax credit for receipts from fees received for performing management or investment advisory services for a related fund.

#25 on the Tax

High Wage Jobs Tax Credit: Offers a tax credit of up to 10% of the wages and benefits paid for each new job that pays at least $40,000, or $60,000 in a community with more than 60,000 residents.

EDUCATION

Special Credit for Manufacturers: Offers a consumables gross receipts tax deduction and investment tax credit for manufacturers. Also offers special incentives in aerospace and aviation, including R&D and spaceport-related activities.

Foundation’s State Business Tax Climate Index ranking

71% of students

graduated high school in 2016

26.7% of adults age 25+ have a bachelor’s degree or higher

EDCs

UNEMPLOYMENT RATE

New Mexico IDEA nmidea.com/

national average of 3.7%

Santa Fe Office of Economic Development santafenm.gov/economic_development

4.6%, greater than the QUALITY OF LIFE

5.25 out of 10, 2018

Chief Executive Best & Worst States for Business

POPULATION GROWTH 1.4% increase between 2010 and 2017

58 2019 CEO GUIDE TO SITE SELECTION

New Mexico Economic Development Department gonm.biz

Albuquerque Economic Development abq.org

HIGHLIGHTED PROGRAM OR INITIATIVE The Innovation Voucher Program offers new rounds every year with small competitive grants that enable early-stage science or technology companies to overcome discrete barriers to reaching market potential.

Up to $4,000 is awarded each month and can offset costs for services offered by approved programs.

Vitality Works announced in March 2018 it would expand its operations in Albuquerque and create 80 new manufacturing jobs.

• 2NDGEAR announced in April 2018 it will create 100 new tech jobs in Albuquerque.

• Southwest Cheese announced in July 2018 a $140 million expansion of its operations in Clovis. The project is expected to create up to 50 new manufacturing jobs.

• Indica Labs announced in September 2018 it will invest $3 million and create 58 jobs at a new headquarters location in Albuquerque.

BIG COMPANIES General Mills Safelite Intel Honeywell Defense and Space Electronic Systems Lowe’s Union Pacific Thomas & Betts Unity BPO

C-SUITE TESTIMONIALS “Southwest Cheese is proud to be expanding operations in Clovis as we seek to capture further domestic and international cheese and whey market share.”

—George Chappell, President, Southwest Cheese “Thanks to New Mexico’s great workforce and improved business environment, we’re in a position to continue our growth and create more jobs.”

—Mitch Coven, CEO, Vitality Works “We are excited about expanding into Albuquerque....

2NDGEAR aims to double its business in the next five years, and New Mexico offers a strong workforce and opportunity for growth.”

—Richard Heard, President, 2NDGEAR

A CEO’S GUIDE TO SITE SELEC TION

New York “New York is proud to be at the forefront of the life sciences industry and the home of global biotech leaders like Regeneron....

The continued growth of Regeneron here in New York is yet another indication that we are leading the way in the life sciences and attracting the jobs of tomorrow.”

—Gov. Andrew Cuomo

TAXES 6.5% top corporate income tax rate

#48 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION 80% of students graduated high school in 2016

34.7% of adults age 25+ have a bachelor’s degree or higher

EXPANSION IN THE EMPIRE

BIG DEALS

As an Amazon H2Q victor, New York metro is expected to reap 25,000 jobs and several biliion in investment from the retail giant. The city's Economic Development Council announced in September 2018 that in the past year, New York startups closed more than 1,500 deals worth more than $12 billion. And there’s growth throughout the Empire State. Regeneron announced an $800 million investment and 1,500 new jobs in Rensselaer County and OFD Foods will invest $25 million in a manufacturing facility in Monroe County.

• In November, Amazon dubbed New York City one of two winners in its H2Q search, pledging to divvy a total of $5 billion between the two locations and create 25,000 jobs.

KEY INCENTIVES

• Regeneron announced in September 2018 an $800 million investment to expand its operations in Rensselaer County and create 1,500 new jobs.

Excelsior Jobs Program: Offers four fully refundable tax credits for up to 10 years. Includes a credit of 6.85% of wages per job, 2% of qualified investments, 50% of the federal R&D credit and a real property tax credit.

New Markets Tax Credit Program: Offers investment capital for companies and real estate development projects that foster job creation and development in low-income communities.

START-UP NY: Offers new and expanding businesses the opportunity to operate tax-free for up to 10 years on or nearby eligible universities or college campuses in New York.

EDCs Empire State Development esd.ny.gov New York State Economic Development Council nysedc.org New York City Economic Development Corp. nycedc.com

UNEMPLOYMENT RATE

Center for Economic Growth ceg.org

national average of 3.7%

Capitalize Albany Corp. capitalizealbany.com

4.1%, greater than the QUALITY OF LIFE

4.68 out of 10, 2018

Chief Executive Best & Worst States for Business POPULATION GROWTH

2.4% increase between

2010 and 2017

HIGHLIGHTED PROGRAM OR INITIATIVE The New York City Economic Development Corp. launched Cyber NYC, an innovative suite of publicprivate partnerships focused on growing startups in the city. The goals are to foster cross-sector engagement, connect and develop a homegrown workforce and commercialize and scale research to produce new companies and jobs.

• Discovery announced in January 2018 it will move its headquarters from Maryland to New York City in 2019.

• OFD Foods announced in April 2018 a $25 million manufacturing facility in Monroe County.

• Travel brand Away announced in May 2018 it would relocate and expand its headquarters in New York.

• Six unmanned aerial systems companies announced $39.5 million in investments September 2018.

BIG COMPANIES 52 Fortune 500 companies are headquartered in the state, including: Verizon Citigroup MetLife Pfizer AIG New York Life Insurance Morgan Stanley Goldman Sachs Group TIAA American Express

C-SUITE TESTIMONIALS “These state incentives, along with other state and federal policies, have helped Regeneron keep and expand our operations in New York State, which will benefit the local economy and help us achieve our mission of bringing new medicines to people with serious diseases.”

—Leonard Schleifer, M.D., Ph.D., President and CEO, Regeneron “New York state has been a key partner in our efforts to grow the UAS sector in the region, first through the investment in the 50-mile test corridor, its ongoing support of the GENIUS NY program and now the UAS Central Job Fund.”

—Robert Simpson, President and CEO, CenterState “As Plug Power continues to grow both its customer base and corporate family, opening the Clifton Park facility was an easy decision. We’re confident that our technology solutions—coupled with proven ingenuity, a deep pool of engineering talent and the unsurpassed work ethic of people in the Capital Region—will make this expansion a great success.”

—Andy Marsh, CEO, Plug Power 2019 CEO GUIDE TO SITE SELECTION 59

A CEO’S GUIDE TO SITE SELEC TION

North Carolina “Getting North Carolina job ready means helping people get the skills they need for better-paying jobs and then connecting businesses to those workers....

An educated, well-trained workforce will strengthen North Carolina companies, attract new businesses and ensure we can adapt to a changing economy.”

—Gov. Roy Cooper

TAXES

3% top corporate

income tax rate

#12 on the Tax

Foundation’s State Business Tax Climate Index ranking

MAINTAINING MOMENTUM

BIG DEALS

North Carolina ranked No. 3 in the nation in Chief Executive’s 2018 Best & Worst States for Business survey with a bright future in manufacturing and tech. GE Aviation, Egger Wood Products and Albaad have announced new plants or expansions in the past year. The state’s new NC Job Ready initiative aims to cultivate the state’s educational attainment and workforce development.

• Engineering firm Corvid announced in March it will invest $28.9 million in a new headquarters in Mooresville and create 367 jobs.

KEY INCENTIVES Job Development Investment Grant: A performancebased, discretionary incentive program that offers cash grants to new and expanding companies. Amount is based on a percentage of personal income tax withholdings associated with new jobs.

Manufacturing Tax Exemptions: Offers a variety of sales and use tax exemptions for machinery, equipment, electrical, fuel, raw materials, inventory and property.

One North Carolina Fund: Discretionary cash-grant program enables the governor to quickly respond to competitive job-creation projects based on number of jobs, level of investment and economic impact.

Transformative Project–Job Development Investment Grant: Performance-based, discretionary program that offers cash grants to help offset the cost of locating or expanding in the state. Any company that creates 3,000 jobs and invests $1 billion can receive up to 90% of personal income withholdings for up to 30 years.

EDUCATION

86% of students

graduated high school in 2016

29% of adults age 25+

have a bachelor’s degree or higher UNEMPLOYMENT RATE

3.8%, greater than the

national average of 3.7% RIGHT TO WORK STATE

EDCs Economic Development Partnership of North Carolina edpnc.com North Carolina Department of Commerce nccommerce.com Raleigh Economic Development raleigh4u.com Charlotte Regional Partnership charlotteusa.com

Yes

QUALITY OF LIFE 8.11 out of 10, 2018 Chief Executive Best & Worst States for Business POPULATION GROWTH

7.7% increase between

2010 and 2017

60 2019 CEO GUIDE TO SITE SELECTION

HIGHLIGHTED PROGRAM OR INITIATIVE Gov. Roy Cooper announced in February 2018 the NC Job Ready initiative with a focus on skills and educational attainment, employer leadership and local innovation. The $60 million fund offers financial assistance for job training in high-demand fields, grants for students nearing completion of degrees and an employer training fund to assist with workplace needs.

• Egger Wood Products from Austria announced in April a $700 million composite panel plant in Davidson County. It is expected to create 770 jobs.

• Ipreo U.S., a global provider of financial services, technology, data and analytics, announced it will add 250 jobs in Wake County over the next four years.

• Israeli manufacturer Albaad announced in April 2018 a $45 million expansion of its operations in Reidsville and 302 new jobs.

• AveXis announced in May 2018 a $55 million gene therapy factory in Durham County that will add 200 jobs.

• Amada North America announced in May 2018 a $87 million sheet metal fabricating equipment plant that will create 201 jobs.

• Publix announced in August 2018 a $300 million distribution center in Greensboro that will create up to 1,000 jobs.

BIG COMPANIES 12 Fortune 500 companies are headquartered in the state, including: Bank of America Lowe’s Duke Energy Nucor VF BB&T Laboratory Corp. of America Sonic Automotive IQVIA Holdings

C-SUITE TESTIMONIALS “Over the past five years, Ipreo’s operations in North Carolina have become an important element of our global business.... This region offers a talented and innovative workforce, a strong university system and a collaborative business environment.”

—O’Hara Macken, Executive Vice President of Global Infrastructure, Ipreo North Carolina “The business-friendly climate at the local, county and state level, combined with access to premier engineering talent coming out of the nearby university systems, were all major factors in our decision to locate the company headquarters in [North Carolina].”

—Dr. David Robinson, CEO, Corvid

A CEO’S GUIDE TO SITE SELEC TION

North Dakota “We’re committed to creating an environment that encourages entrepreneurship and innovation and helping communities reach their fullest potential to make our state an even more vibrant, healthy place to live.”

—Gov. Doug Burgum

TAXES

4.3% top corporate

income tax rate

#17 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION

UNMANNED DEVELOPMENT

BIG DEALS

The Peace Garden State is hitting new heights in manned and unmanned aviation. Northrop Grumman recently announced an expansion of its facilities at Grand Sky to support the Global Hawk UAS. General Atomics Aeronautical Systems is also expanding the size of its Flight Test and Training Center to support sensor testing, training and other development activities.

• Northrop Grumman announced in July 2017 a $3.2 million investment and 30 new jobs at an expansion of its operations in Grand Forks.

KEY INCENTIVES Workforce Recruitment Credit: Offers a credit of 5% of the compensation paid during the first 12 months to an employee placed in a “hard-to-fill” position where the salary is at least 125% of the state average wage.

New/Expanding Business Income Tax Exemption: Offers an income tax exemption for up to five years for a primary sector or tourism business that adds value to products or processes in the state.

Property Tax Exemption: Offers an exemption on property tax for up to five years for new or expanding businesses, agriculture or projects on property leased from a government entity.

Renaissance Zone Program: Offers state and local tax incentives for up to five years for businesses that purchase, rehabilitate or develop properties in designated areas.

88% of students

graduated high school in 2016

28.2% of adults age 25+

have a bachelor’s degree or higher

UNEMPLOYMENT RATE 2.7%, less than the national average of 3.7% RIGHT TO WORK STATE

Yes

QUALITY OF LIFE

7.83 out of 10, 2018

Chief Executive Best & Worst States for Business

POPULATION GROWTH 12.3% increase between 2010 and 2017

EDCs North Dakota Department of Commerce, Economic Development and Finance Division business.nd.gov Economic Development Association of North Dakota ednd.org Bismarck-Mandan Development Association bmda.org Williston Economic Development willistondevelopment.com

• Dakota Specialty Milling announced in June 2018 a $15 million expansion at its mill and the creation of 30 new jobs.

• BioMass Solution LLC broke ground in August 2018 on an 80,000-square-foot refinery in Grand Forks.

• Körber Medipak Systems moved its headquarters from Florida to Fargo in April 2018.

• General Atomics announced in August 2018 it will expand its Flight Test and Training Center at the Grand Sky Unmanned Aircraft Systems (UAS) aviation and business park.

BIG COMPANIES Amazon Bobcat John Deere Steffes ComDel Innovation Microsoft MBI Energy Services

C-SUITE TESTIMONIALS “The positive business climate and strong state support, including the programs within the North Dakota Department of Commerce, played a significant role in our decision to expand in Fargo.”

—Peter Matthaei, CEO, Dakota Specialty Milling “BioMass Solution chose Grand Forks for a number of reasons. It’s a great central hub with a lot of ag processing and great infrastructure that makes it ideal for transportation and logistics. There is a strong university and workforce reputation.”

—Keshav Rajpal, Principal, BioMass Solution

Greater Fargo/Moorhead Economic Development Corp. gfmedc.com

HIGHLIGHTED PROGRAM OR INITIATIVE Grand Sky, the first and only commercial Unmanned Aircraft Systems (UAS) research and development park in the U.S., recently announced federal approval for beyond visual line of sight (BVLOS) flight operations for large UAS. State officials and those in the industry say it’s already attracting interest from manufacturers that will further position the state as a leader in the UAS industry.

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Ohio "JobsOhio has revolutionized the way we create and retain jobs in Ohio, but creating jobs is not enough—we must prepare Ohioans to fill jobs that are in demand and in growing industries."

—Gov. Mike DeWine

TAXES No corporate income tax

#42 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 84% of students graduated high school in 2016

26.7% of adults age 25+ have a bachelor’s degree or higher UNEMPLOYMENT RATE

4.6%, greater than the

national average of 3.7%

QUALITY OF LIFE 6.88 out of 10, 2018 Chief Executive Best & Worst States for Business POPULATION GROWTH

1.1% increase between

2010 and 2017

BOOMING IN THE BUCKEYE STATE

BIG DEALS

The Buckeye State continues to see strong growth in several sectors, including finance, manufacturing and logistics. JPMorgan Chase announced it will further expand its presence in the state with an innovation center in Westerville, and Root Insurance will quintuple its workforce by 2021. Dollar Tree and McLane have also both announced distribution centers here in the past year.

• McLane opened in December 2017 a $119 million distribution center in Findlay that will create up to 425 jobs.

KEY INCENTIVES

• Dollar Tree announced in May 2018 it will build a $125 million distribution center in Bennington Township and create 400 jobs.

JobsOhio Economic Development Grant: Offers grants of varying amounts based on job creation, additional payroll, fixed-asset investment commitment, project return and location.

JobsOhio Growth Fund: Offers capital for expansion projects to companies that have limited access to funding from conventional private sources.

Job Creation Tax Credit: Offers a refundable, performance-based tax credit as a percentage of created payroll for companies creating at least 10 jobs with a minimum annual payroll of $660,000.

Research and Development Center Grant: Helps facilitate the creation of corporate R&D centers in the state that support the development and commercialization of emerging technologies and products.

• Cleveland-Cliffs broke ground in April 2018 on a $700 million hot briquetted iron (HBI) production plant. The project is expected to create 130 jobs.

• Root Insurance announced in June 2018 an expansion of its office in Columbus and a quintupling of its workforce from 88 to 463 by the end of 2021.

• RhinoSystems announced in July 2018 a 65,000-square-foot expansion of its facilities and 117 new jobs in Brooklyn Heights.

BIG COMPANIES 27 Fortune 500 companies are headquartered in the state, including:

JobsOhio jobsohio.com

Cardinal Health Kroger Procter & Gamble Marathon Nationwide Macy’s Progressive Sherwin-Williams Fifth Third Bancorp Goodyear Tire & Rubber

The Columbus Region columbusregion.com

C-SUITE TESTIMONIALS

EDCs Ohio Economic Development Association ohioeda.com

Greater Cleveland Partnership gcpartnership.com REDI Cincinnati redicincinnati.com

HIGHLIGHTED PROGRAM OR INITIATIVE Gov. John Kasich signed into law in August 2018 new legislation to help establish the state as a leading supporter of blockchain-based businesses. The law recognizes the use of blockchain technology to transmit and store electronic records in several industries, ranging from financial services and supply chain management to healthcare. Several initiatives, including Smart City in Columbus, the BlockLand initiative in Cleveland and the 10XTS venture in Cincinnati, are fostering blockchain development and research across the state.

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• JPMorgan Chase announced in September 2018 it will establish an innovation center at The Point in Westerville and create 100 jobs.

“Ohio has a sufficient number of higher education institutions that, from community colleges upward, are effectively training their students to meet the growing demand for skilled workers required by technology companies like MCPc.” —Peter Anagnostos, Vice President of Marketing, Communications and Community Outreach, MCPc “Root’s growth since we were founded in 2015 is due in no small part to the strong talent we continue to find in Columbus.... While this expansion will allow us to continue to grow Root’s offering nationally, it will also deepen our roots in Columbus with the resources and space to grow the business with the momentum it deserves.”

—Alex Timm, Co-founder and CEO, Root Insurance

A CEO’S GUIDE TO SITE SELEC TION

Oklahoma

STEADY DEVELOPMENT IN THE SOONER STATE

"With companies moving jobs back to the U.S. and repatriating dollars, Oklahoma is prime to attract this opportunity and diversify our economy with the right kind of leadership."

—Gov. Kevin Stitt

TAXES

6% top corporate

income tax rate

#26 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 82% of students graduated high school in 2016

24.5% of adults age 25+ have a bachelor’s degree or higher UNEMPLOYMENT RATE 3.7%, equal to the national average of 3.7% RIGHT TO WORK STATE

Yes

QUALITY OF LIFE 6.88 out of 10, 2018 Chief Executive Best & Worst States for Business

The Sooner State’s economy is slowly rebounding with new investments in several sectors and a state initiative to better align resources, education and training with workforce needs. Amazon announced it will open a new fulfillment center in Tulsa, Google will soon expand its data center in Pryor, and an Italian manufacturer recently broke ground on a $360 million plan that will support 300 jobs.

KEY INCENTIVES Quality Jobs Program: Offers a quarterly cash payment of up to 5% of new taxable payroll to qualifying manufacturers and certain service industries that have new payroll investments of at least $2.5 million.

21st Century Quality Jobs: Offers qualifying businesses cash back of up to 10% of payroll for up to 10 years for the creation of 10 jobs with wages of at least $94,000 per year.

Investment/New Jobs Tax Credit Package: Offers a significant tax credit based on either an investment in depreciable property or the addition of full-time equivalent employees in manufacturing, processing or aircraft maintenance.

Business Expansion Incentive: Offers cash payments for expansion for manufacturers who invest at least $5 million in an expansion.

EDCs Oklahoma Department of Commerce okcommerce.gov Oklahoma Economic Development Authority oeda.org Oklahoma Works oklahomaworks.gov Greater Oklahoma City Economic Development greateroklahomacity.com Grow Metro Tulsa growmetrotulsa.com

POPULATION GROWTH

HIGHLIGHTED PROGRAM OR INITIATIVE

2010 and 2017

Oklahoma Works creates new initiatives annually to continually align resources, education, training and job opportunities. The long-term goal is to better meet the workforce needs by 2025 in the state’s five wealth-generating sectors of aerospace, agriculture, energy, financial services and transportation.

4.8% increase between

BIG DEALS • Google announced in February 2018 a $600 million expansion of its data center in Pryor, which is now the company’s second-largest data center in the world.

• Commercial Metals opened its new milling operation in Durant in April 2018.

• Italian tissue paper manufacturer Sofidel Group broke ground in April 2018 on a $360 million facility that will support 300 new jobs.

• Amazon announced in July 2018 it will open a second fulfillment center in Tulsa and will create 1,500 jobs.

BIG COMPANIES Five Fortune 500 companies are headquartered in the state: Oneok Devon NGL Energy Partners Chesapeake Williams

C-SUITE TESTIMONIALS “Oklahoma has proven to be an important home for Google since opening our data center operations here in 2011.... We’ve been able to accelerate our growth here in part due to the incredible support from our Mayes County partners and the state of Oklahoma. We look forward to continuing our success in Oklahoma.”

—Andrew Silvestri, Head of External Affairs in Oklahoma, Google “We’re thrilled to bring this work into our McAlester site.... The collaboration we experienced with local, regional and national UAW leadership was critical to allowing that to happen.”

—Bill Brown, Vice President of Oklahoma Operations, Spirit Aerosystems “We are excited to bring a second fulfillment center to Oklahoma and work alongside the state’s incredible workforce.... Support from local leaders has been instrumental in our ability to come to Oklahoma, and we are grateful for their collaboration to bring thousands of new jobs with benefits starting on day one.”

—Mark Stewart, Vice President of North America Customer Fulfillment, Amazon

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Oregon “Oregon continues to show the world that our state is a great place to live, visit and do business. Oregon businesses and workers develop world-class products and ideas—and that’s something to celebrate.”

—Gov. Kate Brown

TAXES

7.6% top corporate

income tax rate

#7 on the Tax Foundation’s State Business Tax Climate Index ranking

EDUCATION 75% of students graduated high school in 2016

31.4% of adults age 25+

GROWING IN THE NORTHWEST

BIG DEALS

A high quality of life and a thriving economy have been spurring population growth in the Beaver State. Gov. Kate Brown recently announced a $300 million workforce initiative to help close the growing skills gap. Coinbase, designaffairs and Element Six have announced projects here in the past year.

• Boat manufacturer ReconCraft broke ground in October 2017 on a manufacturing facility in Estacada.

KEY INCENTIVES

• Coinbase announced in June 2018 it will break ground on a Portland office that will create as many as 100 jobs.

Enterprise Zone: Offers state tax exemptions on property and equipment for up to five years for companies that invest and hire in an enterprise zone.

• Designaffairs, a consultancy based in China and Germany, announced in June 2018 it will open a studio in Portland that will employ 30 people within three years.

Business Expansion Program: Offers a cash-based forgivable loan equivalent to the estimated increase in personal income tax revenue from hiring over two years.

BIG COMPANIES

Strategic Investment Program: Exempts a portion of large capital investments from property taxes for a period of up to 15 years.

Oregon Investment Advantage: Offers an income tax reduction over several years for new operations in the state.

EDCs Business Oregon oregon4biz.com Oregon Economic Development Association oeda.biz/index.php

64 2019 CEO GUIDE TO SITE SELECTION

C-SUITE TESTIMONIALS

“We selected the Portland region based on critical success factors such as competitive power distribution, access to a high-quality talent pool and strong support from the city of Gresham and other local partners.”

—Ken Sullivan, Operations Director, Element Six

Strategic Economic Development Corp. sedcor.com

2010 and 2017

Nike Lithia Motors

In September 2018, Gov. Kate Brown announced the Future Ready Oregon policy agenda to help close the skills gap, with an additional $300 million investment to expand technical education and career-connected learning to every high school student in Oregon.

UNEMPLOYMENT RATE 3.8%, greater than the national average of 3.7%

POPULATION GROWTH

Two Fortune 500 companies are headquartered in the state:

HIGHLIGHTED PROGRAM OR INITIATIVE

Prosper Portland prosperportland.us

8.1% increase between

Daimler Trucks North America Adidas America Precision Castparts Columbia Sportswear Greenbrier Intel

“We’re working to create an open financial system for the world, and best-in-class talent from across the Portland community will be critical to this mission.... One of the reasons we chose Portland is because of the city’s commitment to providing equal opportunities for all, which mirrors our values at Coinbase.”

—Tina Bhatnagar, Vice President of Operations and Technology, Coinbase

have a bachelor’s degree or higher

QUALITY OF LIFE 7.19 out of 10, 2018 Chief Executive Best & Worst States for Business

• Synthetic diamond manufacturer Element Six announced in May 2018 it will construct a $94 million advanced manufacturing facility in Gresham that will create 60 engineering and technician jobs.

A CEO’S GUIDE TO SITE SELEC TION

Pennsylvania MANUFACTURING A BRIGHT FUTURE IN THE KEYSTONE STATE

“I have worked hard to ensure that when the state is investing in our local communities, we are directing our resources toward projects that transform our cities, municipalities and counties into stronger communities where residents want to work and live.”

—Gov. Tom Wolf

Manufacturing is gaining ground as a critical contributor to the Keystone State’s economy. Spartan Motors is expanding operations and adding 200 new jobs in Harrisburg, Freshpet is expanding its processing operations in Hanover, and Air Liquide Advanced Materials is investing in a new facility in Upper Mount Bethel Township. Officials are driving the Manufacturing PA Initiative to ensure the state will have the talent it needs to support growth.

• Reliance Standard Life Insurance announced in September 2018 it will expand its headquarters in Philadelphia and create 127 new jobs in the next three years.

• Bell & Evans announced in April 2018 a $260 million expansion of its poultry processing operations in Bethel Township. The project will create more than 1,000 new jobs.

BIG COMPANIES 21 Fortune 500 companies are headquartered in the state, including:

9.99% top corporate income tax rate

Pittsburgh Regional Alliance pittsburghregion.org

AmerisourceBergen Comcast Kraft Heinz PNC Financial Services Group Dick’s Sporting Goods Aramark Hershey Toll Brothers United States Steel

#34 on the Tax Foundation’s State Business Tax Climate Index ranking

PIDC Philadelphia pidcphila.com

C-SUITE TESTIMONIALS

EDUCATION 86% of students graduated high school in 2016

Gov. Tom Wolf launched the Manufacturing PA Initiative in October 2017. It aims to enhance growth and competitiveness of manufacturing in Pennsylvania through grants, industrial resource centers and an innovation program.

TAXES

29.3% of adults age 25+ have a bachelor’s degree or higher UNEMPLOYMENT RATE 4.1%, greater than the national average of 3.7% QUALITY OF LIFE 6.46 out of 10, 2018 Chief Executive Best & Worst States for Business POPULATION GROWTH

0.8% increase between

2010 and 2017

EDCs Pennsylvania Department of Community & Economic Development dced.pa.gov Pennsylvania Economic Development Association peda.org

HIGHLIGHTED PROGRAM OR INITIATIVE

BIG DEALS • Assurant announced in January 2018 it will expand its two facilities in Manchester Township and create 307 new jobs.

• Spartan Motors announced in May 2018 it will expand its manufacturing facility in Harrisburg and create 200 new jobs.

• AmerisourceBergen announced in June 2018 it will expand its national headquarters in Harrisburg and create 550 new jobs in the next five years.

• Air Liquide Advanced Materials announced in July 2018 a $45 million facility in Upper Mount Bethel Township that will support 188 jobs and 80 more jobs over the next three years.

“We are pleased that our community ties and strong partnership with the Governor’s Action team have helped make this investment possible. We look forward to expanding our operations in Northampton County and are proud to contribute to the growing economic vitality in the area and strengthening the manufacturing industry in the state.”

—Paul Burlingame, President and CEO, Air Liquide Advanced Materials “We’re committed to this location, our workforce and to better serving our customers by having a larger presence on the Eastern seaboard.... Programs like the Pennsylvania First program and the corresponding tax credits offered by Gov. Wolf and the PA Department of Community and Economic Development made that expansion easier.”

—Daryl Adams, President and CEO, Spartan Motors “Reliance Standard has flourished since locating our headquarters in Philadelphia in 1982.... This is a city of champions—and by this I mean our employees.... I couldn’t be happier to continue our legacy as a Philadelphia success story and build our future here.”

—Chris Fazzini, CEO, Group Benefits, Reliance Standard

• Freshpet announced in August 2018 an expansion of its pet food production operations in Hanover Township and the creation of 100 new jobs in the next three years.

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Rhode Island A POTENTIAL GAME CHANGER IN THE OCEAN STATE

"Thanks to our investments in economic development and skills training, Rhode Island’s biotechnology industry is on the rise.”

—Gov. Gina M. Raimondo

TAXES

7% top corporate income

tax rate

#37 on the Tax

Rhode Island’s economy continues to expand, and unemployment is now at a 20-year low. A new action plan

by Brown University identified key areas where the institution can help strengthen the state’s development, and companies are taking notice. Wexford Science, Collette and Rubius Technologies have announced new projects here in the past year, and CVS Health’s acquisition of Aetna could be a big game changer for Providence.

KEY INCENTIVES Rebuild Rhode Island Tax Credit: Offers redeemable tax credits to cover up to 20%, and in some cases 30%, of project costs for commercial office, industrial, residential, mixed-used development and ground-up construction for projects with a minimum $5 million investment.

Foundation’s State Business Tax Climate Index ranking

Tax Increment Financing: Offers capital for eligible projects with a demonstrated “financing gap.” Tax revenue rebates must not exceed 30% of total project costs or 75% of incremental revenue generated.

EDUCATION

Qualified Jobs Incentive Tax Credit: Offers annual, redeemable tax credits for up to 10 years and up to $7,500 per job per year.

83% of students

graduated high school in 2016

32.5% of adults age 25+ have a bachelor’s degree or higher UNEMPLOYMENT RATE

3.9%, greater than the

national average of 3.7% QUALITY OF LIFE

7.09 out of 10, 2018

Chief Executive Best & Worst States for Business

POPULATION GROWTH 0.6% increase between 2010 and 2017

66 2019 CEO GUIDE TO SITE SELECTION

EDCs Rhode Island Commerce Corp. commerceri.com Grow Smart RI growsmartri.org/category/economic-development RI Economic Development Corp. ririvers.org/wsp/whoswho/EDC.htm Providence Economic Development providenceeconomicdevelopment.net

HIGHLIGHTED PROGRAM OR INITIATIVE In July 2018, Brown University released the Brown and the Innovation Economy strategic action plan identifying key economic areas where the university is positioned to make an immediate impact. It included action items in talent development and retention, industry/academic partnerships, building innovation capacity and infrastructure, support for entrepreneurs and deepening the state’s ties to regional economic hubs.

BIG DEALS • Wexford Science and Technology broke ground in September 2017 on a 191,000-square-foot innovation complex in Providence.

• Collette announced in August 2018 it will expand in Pawtucket and create 75 new jobs in IT, business development and professional services.

• Rubius Therapeutics broke ground in September 2018 on a $155 million manufacturing facility in Smithfield that will create 160 new jobs.

• After months of consideration, federal regulators approved in October 2018 the acquisition of Aetna by Woonsocket-headquartered CVS Health.

BIG COMPANIES Ocean State Lob Lot Virgin Pulse UNFI Electric Boat Four Fortune 500 companies are headquartered in the state: CVS Textron United Natural Foods Citizens Financial Group

C-SUITE TESTIMONIAL “The Rhode Island Commerce Corp. and Gov. Raimodo have an impressive and growing track record of attracting top biotechnology companies and creating high-paying jobs. I am happy to be able to say that Rubius Therapeutics is now a part of this booming ecosystem of biotechnology innovation.”

—Pablo J. Cagnoni, M.D., CEO, Rubius Therapeutics

A CEO’S GUIDE TO SITE SELEC TION

South Carolina BUILDING BUSINESS IN THE PALMETTO STATE

“Since 2017, tax rate cuts have saved businesses $102 million to reinvest in their workforce and in our state’s economy. ” —Gov. Henry McMaster

Manufacturing remains strong in the Palmetto State, and new growth in tech and financial services is also driving the economy. Google recently announced a $600 million expansion of its campus in Berkeley County, and RountPoint Mortgage Servicing Corp. will create more than 1,100 new jobs at its headquarters in the coming years. Keurig Green Mountain, JW Aluminum and Caterpillar have also announced new projects.

KEY INCENTIVES TAXES 5% top corporate income tax rate

#35 on the Tax Foundation’s State Business Tax Climate Index ranking

No state property tax, local income tax, inventory tax or wholesale tax. readySC: Offers training at no cost to the company at the state’s 16 technical colleges to develop a training curriculum to meet the company’s workforce requirements.

Job Tax Credit: Eliminates up to half of a company’s corporate income tax liability for a number of years.

EDUCATION 83% of students graduated high school in 2016

Corporate Headquarters Tax Credit: Offers a 20% tax credit based on the value of the actual portion of the facility dedicated to the headquarters operation or direct lease costs for the first five years of operation.

26.5% of adults age 25+

Governor’s Closing Fund: Offers grants at the discretion of the governor to recruit or retain high-impact economic development projects.

have a bachelor’s degree or higher

UNEMPLOYMENT RATE 3.3%, less than the national average of 3.7% RIGHT TO WORK STATE

Research and Development Tax Credit: Offers a credit equal to 5% of the taxpayer’s qualified research expenses.

EDCs

Yes

South Carolina Department of Commerce sccommerce.com

QUALITY OF LIFE

SC Power Team scpowerteam.com

8.11 out of 10, 2018

Chief Executive Best & Worst States for Business POPULATION GROWTH

8.6% increase between

Charleston Regional Development Alliance crda.org Columbia Development Corp. columbiasc.gov/cdc

2010 and 2017

HIGHLIGHTED PROGRAM OR INITIATIVE In September 2018, South Carolina's Department of Commerce’s Office of Innovation, in collaboration with Build Carolina, announced SC Codes, a statewide program with free access to code education for all residents. It is available to any resident with access to the Internet and offers beginner to advanced curriculums specifically designed with the state’s industries in mind.

The program also offers classroom-led sessions through local community partners.

BIG DEALS • RoundPoint Mortgage Servicing Corp. announced in May 2018 a $34 million investment in its York County headquarters and the creation of 1,100 new jobs.

• Keurig Green Mountain announced in May 2018 a $350 million roasting and packaging facility in Spartanburg County that will create 500 new jobs.

• Becton, Dickson and Co. announced in June 2018 a $150 million expansion in Sumter County that will create 125 new jobs over the next several years.

• JW Aluminum announced in June 2018 a $225 million expansion and 50 new jobs in Berkeley County.

• Google announced in August 2018 a $600 million expansion of its campus in Berkeley County, bringing its total investment in the region to $2.4 billion.

• Caterpillar announced in October 2018 it will locate a casting facility in Greenwood County and create 85 new jobs.

• MAHLE Behr Charleston announced in October 2018 a $36 million manufacturing facility and 115 new jobs in Columbia.

BIG COMPANIES Bank of America Lowe’s Duke Energy Nucor Reynolds American VS BB&T Corp.

Sonic Automotive Laboratory Corp of America Quintiles IMS Holdings

C-SUITE TESTIMONIALS “Establishing our new headquarters here is an important part of our vision and growth plan as we add new employees to transform our business and achieve our aggressive business goals.”

—Kevin Brungardt, CEO, RoundPoint Mortgage Servicing Corp.

“Our MAHLE Behr Charleston facility has long been a successful and important part of MAHLE’s heritage and global operations. As we continue to win new business opportunities with key original equipment manufacturers, our Charleston facility will continue to be a key production site for the company.”

—Uwe Krueger, Vice President of Thermal Management Systems, MAHLE

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South Dakota "We are home to an advantageous tax structure, an independent streak that helps keep regulations at a minimum and a legendary work ethic backed by top-performing universities and technical schools."

—Gov. Kristi Noem

TAXES No corporate income tax

#3 on the Tax Foundation’s State Business Tax Climate Index ranking

EDUCATION 84% of students graduated high school in 2016

27.5% of adults age 25+ have a bachelor’s degree or higher UNEMPLOYMENT RATE 3%, less than the national average of 3.7% RIGHT TO WORK STATE

Yes

QUALITY OF LIFE 7.42 out of 10, 2018 Chief Executive Best & Worst States for Business POPULATION GROWTH 6.8% increase between 2010 and 2017

MORE THAN AGRICULTURE

BIG DEALS

Diversifying beyond its agricultural heritage, South Dakota currently has one of the country’s fastest-growing economies. In Sioux Falls, SAB Biotherapeutics announced it will establish its corporate headquarters at the Discovery District and engineering firm ISM is expanding with a new office. At the Sanford Underground Research Facility in Lead, the Deep Underground Neutrino experiment is attracting global interest, with the potential for scientific breakthroughs.

• The Deep Underground Netrino experiment broke ground in 2017 at the Sanford Underground Research Facility in Lead.

KEY INCENTIVES No corporate income tax, personal income tax, personal property tax, business inventory tax or inheritance tax.

Workforce Development Program: Offers funds to cover up to 50% of the eligible technical training expenses for companies that create jobs paying at least $12 per hour.

Jobs Grant Program: Offers funds to help offset the costs associated with relocating or expanding operations or equipment. Offered for facility projects with costs of less than $20 million and equipment upgrades of less than $2 million.

Energy ONE Incentive: Offers a special, energy-only rate fixed for three years for new retail loads with an approximate demand of one megawatt or higher.

Ethanol Infrastructure Incentives: Offers funds to cover up to 90% of the cost of pump storage tank installation for companies involved in the development of the ethanol industry.

EDCs South Dakota Governor’s Office of Economic Development sdreadytowork.com Sioux Falls Development Foundation siouxfallsdevelopment.com Forward Sioux Falls forwardsiouxfalls.com Rushmore Region Economic Development Alliance rushmoreregion.com

HIGHLIGHTED PROGRAM OR INTITIATIVE Discovery District, an 80-acre planned corporate and academic research park at the University of South Dakota in Sioux Falls, aims to offer a new center for biotech research facilities and infrastructure in the region.

68 2019 CEO GUIDE TO SITE SELECTION

• Great Plains Processing (GPP) announced in November 2017 an expansion and 20 new jobs in Yankton.

• Engineering firm ISM announced in December 2017 it will locate an office in Sioux Falls.

• Agropur broke ground in February 2018 on an expansion of its cheese manufacturing facility in Lake Norden.

It is expected to be operational by early 2019 and will create 125 new jobs.

• Utility equipment manufacturer Terex Utilities announced in April 2018 it will consolidate its manufacturing operations into a new facility in Watertown.

• SAB Biotherapeutics announced in June 2018 it will establish its corporate headquarters at the Discovery District in Sioux Falls.

BIG COMPANIES Walmart Shaw Industries Hy-Vee Tyson Fresh Meats Citibank South Dakota NA Larson Manufacturing Co.

C-SUITE TESTIMONIALS “The Lake Norden project is an important part of our long-term business strategy, which targets continued expansion through acquisitions as well as organic growth.”

—Robert Coallier, CEO, Agropur “Having access to a pipeline of valuable, talented workers is extremely important for ISG to thrive and build employee ownership.... We look forward to building a relationship with regional schools and development leaders who share in our firm’s culture and values.”

—Chad Surprenant, PE, President and CEO, ISG “Working with everyone from the local to the state level has made this expansion as seamless as possible. We’re proud to manufacture a product with the highest quality standard around and excited to bring our process and company to South Dakota.”

—Quintin Honerman, President, GPP “The company chose to build our business in South Dakota because of the ability to get things done and move the business forward.”

—Eddie J. Sullivan, President and CEO, SAB Biotherapeutics

A CEO’S GUIDE TO SITE SELEC TION

Tennessee "We need real vocational, technical and agricultural education in our public schools, and we don’t need a massive, costly government project to do it. We have willing partners in the private sector."

—Gov. Bill Lee

TAXES

6.5% top corporate

income tax rate

#16 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION

89% of students

graduated high school in 2016

25.4% of adults age 25+

have a bachelor’s degree or higher

UNEMPLOYMENT RATE

3.6%, less than the

DRIVING DEVELOPMENT IN THE VOLUNTEER STATE

• Defense contractor Chemring Group announced in May 2018 a $40 million expansion and 11 new jobs in Toone.

Tennessee experienced strong economic growth in 2018, much of which was driven by the availability of talent and new workforce initiatives. DENSO, Chemring Group and RMC Advanced Technologies have announced new facilities here in the past year. Companies such as CKE Restaurants and Asurion are also expanding their headquarters in the state.

• South Korean company Dong-A Hwa Sung announced in May 2018 it will locate its first U.S. operations in Martin and will create approximately 220 jobs.

KEY INCENTIVES

• Stonepeak Ceramics announced in September 2018 a $70 million expansion of its facility in Crossville. The project is expected to increase production capacity by 20% and add 160 jobs in the next five years.

Job Tax Credit: Offers up to $4,500 per job to offset up to 50% of franchise and excise taxes on any given year.

Can be carried forward up to 15 years. Eligible companies must invest at least $500,000 and create at least 25 full-time jobs within three years.

BIG COMPANIES

EDCs Tennessee Department of Economic and Community Development tnecd.com Tennessee Valley Authority tva.com/Economic-Development Greater Chattanooga Economic Partnership greaterchatt.com Economic Development Growth Engine for Memphis and Shelby County growth-engine.org Nashville Area Chamber of Commerce nashvillechamber.com/economic-development

RIGHT TO WORK STATE

Knoxville-Oak Ridge Innovation Valley knoxvilleoakridge.com

QUALITY OF LIFE

HIGHLIGHTED PROGRAM OR INITIATIVE

Chief Executive Best & Worst States for Business

The Drive to 55 initiative aims to have 55% of state residents equipped with a college degree or post-high school certificate by the year 2025.

7.76 out of 10, 2018

POPULATION GROWTH

5.8% increase between

2010 and 2017

• Faurecia Interior Systems announced in August 2018 a $30 million production facility in Spring Hill that will create 143 new jobs.

FastTrack Economic Development Fund: Offers funds to offset things not covered by other grants for projects that offer significant new jobs and investment.

national average of 3.7%

Yes

• CKE Restaurants announced in June 2018 the creation of 145 jobs and an expansion at its headquarters in Franklin.

BIG DEALS • DENSO announced in February 2018 a $190 million expansion and 320 new jobs at its facility in Athens.

• Asurion announced in February 2018 it will consolidate operations to a new headquarters in Nashville and create 400 new IT jobs.

• RMC Advanced Technologies announced in May 2018 it will locate its U.S. headquarters and expand manufacturing operations in Hawkins County.

11 Fortune 500 companies are headquartered in the state, including: FedEx Dollar General HCA Holdings AutoZone Community Health Systems International Paper Unum Group Eastman Chemical LifePoint Health

C-SUITE TESTIMONIALS “For almost two decades, Asurion has been part of Nashville’s vibrant growth and is excited to continue building the city’s tech hub brand.... Our consolidation into a facility that will serve as the global product and technology hub for Asurion’s innovation and development in the heart of Nashville further cements our commitment to tech job growth and the city.”

—Tony Detter, CEO, Asurion “As we look back on our first year here in the Nashville area, we remain excited for the opportunities we see in both job creation within our surrounding communities, as well as the continued growth of our business.... We are thrilled to be part of the Middle Tennessee community and deeply value our partnership with the state of Tennessee—a partnership that has enabled us to invest heavily in both local talent and technology.”

—Jim Sullivan, Head of Development, CKE Restaurants “We are excited to expand our presence in North America to the Spring Hill community of Tennessee....

Exceptional partnerships with community leadership and the highly motivated and skilled workforce in this state made this opportunity possible.”

—Donald Hampton Jr., President, Faurecia Interior Systems

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Texas “While Texas will continue to cut taxes and burdensome red tape, it is the people of this state that businesses are continuing to invest in.”

—Gov. Greg Abbott

TAXES No corporate income tax

#15 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION

89% of students

graduated high school in 2016

28.1% of adults age 25+

have a bachelor’s degree or higher

UNEMPLOYMENT RATE

3.8%, greater than the

national average of 3.7% RIGHT TO WORK STATE

Yes

QUALITY OF LIFE

7.98 out of 10, 2018

Chief Executive Best & Worst States for Business POPULATION GROWTH

12.6% increase between

2010 and 2017

BIG STATE, BIG PROJECTS

BIG DEALS

In a state that prides itself on being big, economic development is also happening on a large scale. Liberty Mutual Insurance cut the ribbon in November 2017 on its Plano campus that will support 5,000 jobs. Gartner also announced 800 new jobs in Austin, and Cognizant’s new technology and service delivery center in Irving will eventually add 1,000 new jobs.

• Liberty Mutual Insurance cut the ribbon in November 2017 on a one-million-square-foot campus in Plano that will support nearly 5,000 jobs.

KEY INCENTIVES Texas Enterprise Fund: Offers a performance-based cash grant for projects that spur significant job creation and capital investment in cases where a Texas site is competing with an out-of-state option.

Skills Development Fund: Offers funds to help companies form partnerships with and train employees at local community colleges and technical schools.

Sales and Use Tax Exemption: Offers exemptions for manufacturing machinery and for equipment for natural gas and electricity and data centers that meet the minimum thresholds.

Texas Enterprise Zone Program: Offers a sales and use tax refund based on new and retained jobs associated with the qualified business site.

EDCs Texas Economic Development Council texasedc.org Texas Economic Development Corp. businessintexas.com Greater Houston Partnership houston.org San Antonio Economic Development Foundation sanantonioedf.com City of Dallas Office of Economic Development dallasecodev.org Austin Chamber of Commerce Economic Development austinchamber.com/economic-development

• Gartner announced in December 2017 it will invest $12 million in its operations in Austin and create 800 new jobs in the next several years.

• Golden State Foods announced in December 2017 a $70 million manufacturing and distribution facility in Burleson that will create 150 new jobs.

• Wipro announced in March 2018 it will construct a technology center in Plano that will create 150 new jobs and more in the coming years.

• JSW Steel announced in March 2018 it will invest $500 million in phases to develop its steel manufacturing infrastructure in Baytown.

• Cognizant opened in August 2018 a 50,000-squarefoot technology and service delivery center in Irving that will create 1,000 new jobs.

BIG COMPANIES 54 Fortune 500 companies are headquartered in the state, including: American Airlines ExxonMobil Kimberly-Clark Southwest GameStop Tenet Health AllianceData AT&T Waste Management Halliburton

C-SUITE TESTIMONIALS “Like so many other companies, we’ve found Texas to be an outstanding place for business. Texas is home to many of the Fortune 500 and 1000 clients we serve.

We’re particularly excited to be expanding in Irving, given the area’s access to a strong talent pool and an excellent system of colleges and universities with whom we hope to partner on jobs programs and training initiatives.”

—James Lennox, Chief People Officer, Cognizant “Our technology center in Plano is the latest milestone in our growing operations in Texas and is testament to the local talent pool and the robust support offered by the state to the technology center.”

—Abidali Z. Neemuchwala, CEO and Executive Director, Wipro Limited

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Utah

STEADY GROWTH IN THE SILICON SLOPES

"The U.S. Chamber of Commerce, in recognizing Utah as the best-performing economy in the country, identified our 'unique culture of collaboration as the foudnation of our job creation policy.'”

—Gov. Gary Herbert

TAXES

5% top corporate income

tax rate

#8 on the Tax Foundation’s State Business Tax Climate Index ranking

EDUCATION 85% of students graduated high school in 2016

31.7% of adults age 25+ have a bachelor’s degree or higher

The Silicon Slopes area continues to attract tech companies to the Beehive State. Cloud-based tech company Cornerstone and robotics innovator Sarcos announced major expansions in the summer of 2018. Israeli company 4Cast also announced in June that it will open an office in the state.

KEY INCENTIVES Economic Development Tax Increment Financing: Offers a refundable tax credit of up to 30% of new state revenues paid over the life of the project for companies that create at least 50 jobs that pay wages of 100% of the county average.

BIG COMPANIES

EDCs

C-SUITE TESTIMONIALS

Utah Governor’s Office of Economic Development business.utah.gov Economic Development Corp. of Utah edcutah.org Utah Valley Economic Development Partnership utahvalleyinformation.com/utahvalley

national average of 3.7%

Talent Ready Utah was founded in 2017 as an effort to design workforce solutions and training in the state to meet industry needs. The program has a goal of filling 40,000 new high-skill, high-demand jobs over the next four years.

RIGHT TO WORK STATE

• Cloud-based technology company Cornerstone announced in September 2018 an expansion and 350 new jobs in Salt Lake City.

Life Science and Technology Tax Credit: Offers post-performance tax credit for up to 35% of the investment over a period of three years.

Rural Fast Track (RFT): Offers up to $50,000 in grant and incremental funding for new jobs that pay greater than the county average wage.

HIGHLIGHTED PROGRAM OR INTITIATIVE

Yes

• Aerospace and defense company Moog announced in August it will expand and create up to 120 jobs in Salt Lake City.

SkyWest Airlines Alsco eBay Goldman Sachs JetBlue Delta Airlines C.R. England Adobe Vivint

UNEMPLOYMENT RATE

3.2%, less than the

• Robotics company Sarcos announced in August 2018 it will expand at the University of Utah Research Park and create up to 292 high-paying jobs.

“The support from the governor’s office for these high-tech manufacturing jobs was key to making the decision to grow in Utah.”

—Jon Liddle, Director of Defense Sector Operations and Supply Chain, Moog “Utah meets our goals of managing expansion in a cost-effective and thoughtfully planned manner. In addition, Utah has a robust technology presence, a highly educated and trained workforce, and offers tremendous amenities for our employees, including cost-of-living and housing affordability.”

—Brian Swarts, CFO, Cornerstone OnDemand

QUALITY OF LIFE

8.53 out of 10, 2018

Chief Executive Best & Worst States for Business POPULATION GROWTH

12.2% increase between

2010 and 2017

BIG DEALS • a2b Fulfillment announced in March 2018 it will expand operations and add up to 75 jobs in Ogden.

• Clarus announced in May 2018 a $40 million expansion and 147 new high-paying jobs.

• Israeli tech company 4Cast announced in June 2018 it will locate U.S. offices in the state and hire 100 employees over the next three years.

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Vermont “Homegrown businesses and entrepreneurs are the engine of Vermont’s economy, creating jobs and helping create more opportunity for Vermonters.”

—Gov. Phil Scott

TAXES

8.5% top corporate

income tax rate

#41 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION

88% of students

graduated high school in 2016

36.2% of adults age 25+ have a bachelor’s degree or higher UNEMPLOYMENT RATE

2.9%, less than the

national average of 3.7% QUALITY OF LIFE

5.9 out of 10, 2018

Chief Executive Best & Worst States for Business POPULATION GROWTH

0.3% decrease between

2010 and 2017

ENTREPRENEURSHIP AND INNOVATION

BIG DEALS

As one of the smallest states by population, Vermont doesn’t see many eight-figure locations or expansion.

But what it lacks in big projects, it makes up for with a culture of entrepreneurship and innovation. The Green Mountain State has seen strong growth in the brewing and distilling industry in recent years, and it remains home to a few large companies, including Dealer.com and Keurig. Vermont’s attractive insurance regulatory system also makes it the top state in the nation for captive insurance domiciles.

• LEDdynamics broke ground in June 2018 on a 27,600-square-foot facility and announced it will double its workforce in the state.

KEY INCENTIVES Vermont Employment Growth Incentive: Offers cash payments to companies that meet milestones for job creation, payroll and capital investments. Enhancements available for green businesses and those that create jobs in specific labor markets.

Vermont Training Program: Offers grants to cover up to half the cost of training for new hires and incumbent workers.

R&D Credit: Offers a state tax credit of up to 27% of the federal tax credit for research and development expenses.

Vermont Brownfield Revitalization Fund: Offers loans and grants to private developers, nonprofits and municipalities for the remediation of brownfield sites.

EDCs Vermont Agency of Commerce and Community Development accd.vermont.gov/economic-development Think Vermont thinkvermont.com Montpelier Development Corp. mdc-vermont.com Burlington Community & Economic Development Office burlingtonvt.gov/CEDO

HIGHLIGHTED PROGRAM OR INITIATIVE The Vermont Talent Pipeline Management (VTPM) is an employer-led systems model that aims to grow the economy by improving the employability of students and aligning education with employer needs. VTPM’s initiatives focus on the most critical jobs to be filled in the construction, healthcare and advanced manufacturing industries.

72 2019 CEO GUIDE TO SITE SELECTION

• Mack Molding announced in July 2018 an expansion of its three Vermont locations and expects to hire 50 more employees in the next year.

• Caledonia Spirits broke ground in August 2018 on a 26,000-square-foot distillery in Montpelier.

• GW Plastics completed an expansion and upgrade in the summer of 2018 of its Process Development and Training Center in Royalton. The Vermont-based company continues to grow and expand in the U.S. and abroad.

BIG COMPANIES Logic Supply Dealer.com Revision Military WyWebGrocer Keurig Green Mountain

C-SUITE TESTIMONIAL “Montpelier has made it clear that they have a vision for the Capital City, and we’re thrilled to be a part of it....

Our search for expansion space had us in contact with many towns, but Montpelier proved to be the greatest opportunity for our business.”

—Ryan Christiansen, President, Caledonia Spirits

A CEO’S GUIDE TO SITE SELEC TION

Virginia

TALENT AND TECH

“The commonwealth’s economy continues to grow as more Virginians join the workforce and more companies choose us for investment.... As the unemployment rate declines, we are remaining laser-focused on bringing quality, well-paying jobs to every corner of Virginia and ensuring our workforce has the 21st-century, in-demand skills employers are seeking.”

—Gov. Ralph Northam

TAXES 6% top corporate income tax rate

#22 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 87% of students graduated high school in 2016

36.9% of adults age 25+ have a bachelor’s degree or higher

After a lengthy contest, Amazon chose Arlington, Virginia as one of two new headquarters sites. Virginia's large talent pool and accessible location have also attractied investments from other tech companies. MicroStrategy recently added 300 new jobs and renewed its headquarters lease in Fairfax County, and Micron Technology is investing $3 billion to expand its operations in Manassas. Facebook also announced in September it will expand its data center in Henrico County.

KEY INCENTIVES Major Eligible Employer Grant Program (MEE): Offers discretionary incentives and cash grants of up to $25 million over five to seven years for companies that invest at least $100 million and create at least 1,000 new jobs.

Commonwealth’s Development Opportunity Fund (COF): Offers “deal closing” cash grants to offset qualifying costs such as site acquisition and development, utility extension, transportation access or construction required to secure an expansion or location in the state.

Virginia Jobs Investment Program (VJIP): Offers recruitment and training assistance for companies that create new jobs or experience technological change to reduce human resource development costs.

EDCs Virginia Economic Development Partnership vedp.org Virginia Economic Developers Association goveda.org Richmond Economic Development Authority richmondeda.org Greater Richmond Partnership grpva.com

UNEMPLOYMENT RATE

2.9%, less than the

national average of 3.7% RIGHT TO WORK STATE

Yes

QUALITY OF LIFE

7.28 out of 10, 2018

Chief Executive Best & Worst States for Business

HIGHLIGHTED PROGRAM OR INITIATIVE Virginia Leaders in Expert Trade (VALET) is a two-year international business acceleration program that offers a combination of capital resources and professional services including executive training, international sales plan development, educational events and customized research. VALET accepts up to 25 companies per year, and average participants increase their international sales by 54%.

POPULATION GROWTH

BIG DEALS

2010 and 2017

• Amazon announced in November plans to open a headquarters in Arlington, Virginia, creating 25,000 jobs.

5.9% increase between

• MicroStrategy announced in March 2018 it will renew its headquarters lease in Fairfax County and create 300 jobs.

• Gerber Products announced in April 2018 it will relocate its U.S. headquarters from New Jersey to the headquarters of its sister company, Nestlé USA, in Arlington County. The move is expected to create 150 jobs.

• Cascades announced in July 2018 a $275 million containerboard operation in Hanover County that will create 140 jobs.

• Micron Technology announced in August 2018 a $3 billion investment in its operations in the city of Manassas and the creation of 1,100 jobs by 2030.

• InterChange Cold Storage announced in August 2018 a $41.6 million cold storage and blast freezing facility and 88 new jobs in Rockingham County.

• Facebook announced in September 2018 a $750 million expansion of its data center in Henrico County.

BIG COMPANIES 21 Fortune 500 companies are headquartered in the state, including: Freddie Mac Capital One Financial Brink’s NewMarket Universal Altria Group Performance Food Group CarMax Genworth Financial Markel

C-SUITE TESTIMONIALS “Micron is grateful for the extensive engagement of state and local officials... to help bring our Manassas expansion to fruition. We are excited to increase our commitment to the community through the creation of new, highly skilled jobs, expanded facilities and education initiatives.”

—Sanjay Mehrotra, President and CEO, Micron Technology “We are pleased to establish Arconic’s global headquarters in Fairfax County, Virginia—an area that is home to several aerospace and defense customers, a world-class talent base and which offers a favorable quality of life for employees and a high level of connectivity to our key locations.”

—Chip Blankenship, CEO, Arconic “Closer proximity to Nestlé USA’s new headquarters in Arlington will provide efficiencies that will be reinvested in our people, products and production to fuel growth....

Northern Virginia also offers a great quality of life for our employees and provides access to strong talent for our current and future needs.”

—Bill Partyka, President and CEO, Gerber

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Washington “Built on over a century of innovation and leadership that began with the Boeing Airplane Co., Washington state’s aerospace industry today stands head and shoulders above any other. We intend to keep aiming higher by building on our strength.”

—Gov. Jay Inslee

TAXES No corporate income tax

#20 on the Tax

Foundation’s State Business Tax Climate Index ranking

AIMING HIGH

BIG DEALS

A recent study by PwC ranked Washington as the top state for aerospace manufacturing attractiveness, with high scores for industry, infrastructure and talent. The state remains a primary base of operations for Boeing, and rapidly expanding AIM Aerospace plans to grow its workforce by 30% by 2023.

• Katerra announced in September 2017 it will construct a new manufacturing facility and create 150 jobs in Spokane Valley.

KEY INCENTIVES B&O Credits: Offers tax credits of up to $4,000 per position for jobs in manufacturing, R&D laboratories and commercial testing facilities in rural counties that pay wages of $40,000-plus.

Committed Private Partner Program: Offers grants of up to $150,000 and loans of up to $2 million for the construction of public infrastructure to support business expansion.

Reduced B&O Rate for Aerospace Business: Offers a reduction in B&O tax liability for manufacturers and processors for hire in the aerospace sector.

B&O Tax Credit for Washington Customized Training Program: Offers a tax credit of up to 50% of the full cost of a training program with up to $500,000 in training allowances per year.

EDUCATION

80% of students

graduated high school in 2016

33.6% of adults age 25+ have a bachelor’s degree or higher UNEMPLOYMENT RATE 4.4%, greater than the national average of 3.7%

EDCs Washington State Department of Commerce commerce.wa.gov Choose Washington State choosewashingtonstate.com Seattle Economic Development Commission seattleedc.com Greater Spokane Inc. advantagespokane.com

QUALITY OF LIFE

6.69 out of 10, 2018

Chief Executive Best & Worst States for Business POPULATION GROWTH

10.1% increase between

2010 and 2017

74 2019 CEO GUIDE TO SITE SELECTION

HIGHLIGHTED PROGRAM OR INITIATIVE The Career Connected Washington Task Force released recommendations to bring career-connected learning to scale in the state. It has a goal of connecting 100,000 Washington youth during the next five years with career-connected opportunities that prepare them for high-demand, high-wage jobs. Ongoing initiatives include apprenticeships, internships and grant funding for education.

• Etailz announced in March 2018 it was moving its headquarters to Spokane Valley in part of an ongoing expansion.

• Serta Simmons Bedding announced in September 2018 the opening of a larger plant in Puyallup as part of a multi-year, $100 million investment to expand its operations.

• AIM Aerospace announced in October 2018 it was expanding operations in Sumner and Renton. The company expects to grow its workforce by 30% by 2023.

BIG COMPANIES 10 Fortune 500 companies are headquartered in the state: Amazon Costco Microsoft Starbucks Nordstrom Paccar Weyerhaeuser Expedia Expeditors International of Washington Alaska Air Group

C-SUITE TESTIMONIALS “We are excited to have the governor’s support as we are creating a better company that is more technologically advanced in the state of Washington, while adding more value to our customers, our employees and our shareholders.”

—Daniele Cagnatel, CEO, Aim Aerospace “I think the preponderance of technologists in the [Silicon] Valley causes them to lose sight of the real world. Seattle, on the other hand, has just the right mix; enough of us to feel part of the tribe, but in small enough measures that we don’t, inadvertently, create an echo chamber bubble of boredom.”

—Spencer Rascoff, CEO, Zillow “We are excited to open a new, larger manufacturing facility in Seattle, a city that is a known incubator for game-changing innovation in the U.S.” —Michael Traub, CEO, Serta Simmons Bedding

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West Virginia “Our message that West Virginia is a good place to do business is reaching around the world. West Virginia has a prime location close to business hubs in the East, a pro-growth business climate and world-quality workers.”

—Gov. Jim Justice

TAXES

6.5% top corporate

income tax rate

#19 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION 90% of students graduated high school in 2016

19.6% of adults age 25+ have a bachelor’s degree or higher UNEMPLOYMENT RATE 5.2%, greater than the national average of 3.7% RIGHT TO WORK STATE

Yes

QUALITY OF LIFE 4.67 out of 10, 2018 Chief Executive Best & Worst States for Business POPULATION GROWTH

2% decrease between

2010 and 2017

76 2019 CEO GUIDE TO SITE SELECTION

MOVING FORWARD

HIGHLIGHTED PROGRAM OR INITIATIVE

The Mountain State is slowly moving forward in its economic recovery with new initiatives to boost diversification beyond coal. The West Virginia Forward initiative aims to drive economic change in the state through collaborative partnerships between government, academia and private enterprise. Hino Motors, Armacell, Tema and Sparksoft have recently announced expansions in the state.

West Virginia Forward, a new collaborative partnership between government, academia and private enterprise, aims to drive economic change through strategic investments, education and human capital. The strategy is to maintain existing industries with growth potential while finding new sectors and long-term growth opportunities.

KEY INCENTIVES Corporate Headquarters Credit: Offers a credit of up to 100% of the business and occupation tax, corporate net income tax and personal income tax on certain pass-through income. Credit is good for up to 13 years for companies that relocate headquarters to the state and create 15 new jobs in the first year.

High-Tech Manufacturing Credit: Offers a tax credit of up to 100% on B&O, net income tax and personal income tax for 20 years for high-tech manufacturers that create 20 new jobs in the first year.

Economic Opportunity Credit: Offsets up to 80% of corporate net income tax and personal income tax for businesses that create at least 20 new jobs. Credit is expanded to 100% for jobs that pay a median wage higher that the state non-farm average payroll wage.

Workforce Innovation & Opportunity Act: Offers incumbent worker training and work-based training reimbursement rates of up to 75%.

EDCs West Virginia Economic Development Authority wveda.org West Virginia Department of Commerce westvirginia.gov Charleston Area Alliance charlestonareaalliance.org Huntington Area Development Council hadco.org

BIG DEALS • West Virginia Great Barrel announced in October 2017 it will construct a manufacturing facility in Charleston and create more than 100 jobs.

• Armacell announced in November 2017 an expansion of its manufacturing facilities in Spencer and the creation of 20 jobs.

• Italian company TeMa broke ground in April 2018 on a $10 million manufacturing plant in Charleston.

• Software company Sparksoft announced in May 2018 it will locate an office in Fairmont and create 30 jobs.

BIG COMPANIES Hino Motors Manufacturing USA Proctor & Gamble Toyota Mylan Pharmaceuticals Murray American Energy Amazon TeleTech ResCare

C-SUITE TESTIMONIAL “Expanding into West Virginia has been a goal of Sparksoft’s for some time.... This expansion provides us with unique resources to strengthen our teams, services and solutions. We are excited to be a part of the community and look forward to growing together.”

—Mike Finkel, CEO, Sparksoft

A CEO’S GUIDE TO SITE SELEC TION

Wisconsin “I am eager to begin work on... finding long-term bipartisan solutions to things that people care about, like roads, and make sure we have a good public education system and healthcare.”

—Gov. Tony Evers

TAXES 7.9% top corporate income tax rate

#32 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 88% of students graduated high school in 2016

28.4% of adults age 25+ have a bachelor’s degree or higher

KEEPING PACE

BIG DEALS

Foxconn broke ground in June on Phase I of what will ultimately become a $10 billion manufacturing facility supporting 13,000 jobs. Other investments in the state by such companies as Green Back Packaging, Oshkosh, Milwaukee Tool and Kwik Trip will add more than 2,000 jobs in the coming years. A new marketing campaign to attract more workers and candidates to the state strives to ensure the workforce can keep pace with the growing demand for talent.

• Kwik Trip announced in October 2017 a $309 million expansion project in La Cross that will create more than 300 jobs.

KEY INCENTIVES

Manufacturing and Agriculture Credit: Virtually eliminates the tax on income from manufacturing activity in Wisconsin, with a 7.5% credit that creates an effective corporate tax rate of .4%.

• Oshkosh announced in August 2018 it will construct a new, 190,000-square-foot global headquarters in Oshkosh.

Qualified New Business Venture: Helps drive investment to innovative, early-stage Wisconsin companies with a 25% tax credit on the amount they invest into a QNB-certified business.

BIG COMPANIES

History Preservation Tax Credit: Offers a state income tax credit of 20% for expenses related to the qualified rehabilitation of eligible buildings.

Brownfields Grant Program: Offers grants to local governments, businesses and individuals to develop commercial and industrial sites that have been impacted by environmental contamination.

national average of 3.7%

Wisconsin Economic Development Corp. wedc.org

RIGHT TO WORK STATE

Wisconsin Economic Development Association weda.org

QUALITY OF LIFE 7.52 out of 10, 2018 Chief Executive Best & Worst States for Business

Milwaukee 7 mke7.com Madison Region Economic Partnership madisonregion.org

POPULATION GROWTH

HIGHLIGHTED PROGRAM OR INITIATIVE

2010 and 2017

Wisconsin recently embarked on a $6.8 million multifaceted national marketing campaign to attract individuals from other markets and retain highly skilled workers.

The campaign is targeting Midwest millennials in 13 Midwest metro areas, Wisconsin alumni who are now living outside of the state and transitioning veterans.

1.9% increase between

• Milwaukee Tool announced in July 2018 it will build a $32 million R&D facility in Brookfield and create 350 jobs.

• Green Bay Packaging broke ground in August 2018 on a $500 million paper mill that is expected to create 200 jobs and retain 1,400 jobs statewide.

EDCs

Yes

• Allegheny Technologies announced in March 2018 a $95 million expansion in Cudahy that will create 125 jobs.

Business Development Tax Credits: Offers a refundable tax credit for companies remaining, expanding or relocating in Wisconsin.

UNEMPLOYMENT RATE

3.0%, less than the

• Brakebrush Brothers announced in November 2017 a $86 million expansion in Marquette County that will create more than 200 jobs.

Nine Fortune 500 companies are headquartered in the state: Northwestern Mutual Life Insurance Manpower Group Kohl’s Group American Family Insurance Group WEC Energy Group Oshkosh Rockwell Automation Fiserv Harley-Davidson

C-SUITE TESTIMONIALS “Wisconsin has a rich manufacturing history in industrial automation, healthcare and more, and a strong talent pool of engineers, technicians and craftsmen who are the backbone of America. We are looking forward to building on that history and tapping into that pool.”

—Terry Gou, Founder and Chairman, Foxconn Technology Group “As a global company based in the United Kingdom, 4imprint had several options for its expansion project, but chose to invest in Wisconsin because it was the best fit for the company’s growth strategy and because it enabled the company to continue providing outstanding customer service.”

—Kevin Lyons-Tarr, CEO, 4imprint “In the end, it became clear that Wisconsin was the best alternative for the long-term competitiveness of the company. It came down to Wisconsin because of the favorable business climate and better long-term economics.”

—Keith Smith, President, Vonco Products

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Wyoming "As an entrepreneur, I feel very strongly that Wyoming's future is based on small businesses having the best chances they can."

—Gov. Mark Gordon

TAXES No corporate income tax

#1 on the Tax Foundation’s State Business Tax Climate Index ranking

EDUCATION 80% of students graduated high school in 2016

26% of adults age 25+

have a bachelor’s degree or higher

WINNING IN WYOMING

HIGHLIGHTED PROGRAM OR INITIATIVE

Wyoming is slowly recovering after losing nearly 20,000 jobs in 2015 and 2016, largely due to a decline in the mineral extraction industries. The state is now developing a 20-year strategy that pieces together economic development, workforce and education to fuel tech growth. The Wyoming Department of Education announced in April the creation of Boot Up Wyoming 2022, an initiative to facilitate the extension of computer science into the K-12 curriculum.

The state legislature recently passed into law five bills that promote the advancement of blockchain technology and cryptocurrency. House Bill 70, the “Utility Token Bill,” is designed to exempt specific cryptocurrencies from state money transmission laws. Experts say it’s a significant move that could further the state’s position as a cryptocurrency capital.

KEY INCENTIVES Business Ready Community Grant and Loan Program: Offers awards of up to $3 million with a 10% to 30% match to finance publicly owned infrastructure upgrades to assist the startup, retention or expansion of a business in the state.

Wyoming Partnership Bridge Loan: Offers loans of up to 35% of the project (maximum of $1 million) in a shared collateral position with a local lender at an interest rate of 5% for the first five years.

Economic Development Large Project: Offers funds for the purchase, construction and installation of buildings or equipment. Minimum loan of $5 million with applicant contributing at least 25% of total cost.

EDCs

UNEMPLOYMENT RATE

Wyoming Business Council wyomingbusiness.org

national average of 3.7%

Wyoming Economic Development Association wyomingeda.org/weda

4.1%, greater than the

RIGHT TO WORK STATE

Yes

Cheyenne LEADS cheyenneleads.org

QUALITY OF LIFE

Greater Cheyenne Chamber of Commerce cheyennechamber.org

7.83 out of 10, 2018

Chief Executive Best & Worst States for Business POPULATION GROWTH

2.8% increase between

2010 and 2017

78 2019 CEO GUIDE TO SITE SELECTION

Casper Area Economic Development Alliance caeda.net

BIG DEALS • Truweigh announced in June 2017 it will locate a 27000-square-foot warehouse in Cheyenne.

• Weatherby announced in January 2018 it will relocate from Paso Robles, California to Sheridan and will create up to 90 jobs in the next five years.

• Kawasaki Heavy Industries announced in April 2018 it will test its solid sorbent capture technology at the Wyoming Integrated Test Center in Gillette.

• Precious Cat announced in August 2018 it will relocate its manufacturing and distribution facility to Cheyenne.

• Gunwerks announced in October 2018 it will expand with a new facility in Cody and create 52 jobs.

BIG COMPANIES Cloud Peak Energy Wyoming Machinery Ferrellgas Haliburton Walmart Distribution Sierra Trading Post

C-SUITE TESTIMONIAL “We chose Cheyenne because, in addition to the availability of rail and rail-served land, we appreciate the work ethic and values present in a town the size of Cheyenne.”

—Dr. Bruce Elsey, President, Precious Cat

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A CEO’S GUIDE TO SITE SELEC TION

Washington, D.C. “As Washington, D.C. continues to grow, we remain committed to exploring innovative approaches to mobility, connecting residents to job opportunities in our thriving technology scene and building a safer, stronger D.C." —Mayor Muriel Bowser

TAXES

8.25% top corporate

income tax rate

BIG GROWTH IN THE METRO AREA

BIG DEALS

The Washington, D.C. metro area continues to expand, with some surveys ranking it among the top in the nation. Tech remains a prime growth area. Ford announced it will test autonomous vehicles in the city, and cybersecurity company Excivity is expanding in Fairfax County. Betchtel and Arconic are both preparing to relocate their headquarters to the region.

• Fortune 500 company Arconic announced in April 2018 it will relocate its headquarters from New York City to Fairfax County.

KEY INCENTIVES Qualified High-Tech Companies (QHTC): Offers tax credits to high-tech companies for training and wages paid to disadvantaged employees. Also offers sales and use tax exemptions and a reduction of the corporate franchise tax rate.

Creative and Open Space Modernization Grant (DC): Offers a tax rebate of up to the lesser of 10% of the total value of qualified improvements or $1 million for QHTCs that renovate or improve their offices.

Foundation’s State Business Tax Climate Index ranking

Business/Professional/Occupational Licenses (BPOL) Tax Exemption (Fairfax County, Virginia): Offers exclusions and adjustments to BPOL taxes for software development companies and government computer hardware and software sellers.

EDUCATION 69% of students graduated high school in 2016

Virginia Jobs Investment Program: Offers variable incentives for job creation for manufacturers, distribution centers, headquarters, inbound call centers, business IT and R&D.

55.4% of adults age 25+ have a bachelor’s degree or higher

EDCs

#46 on the Tax

UNEMPLOYMENT RATE

Washington, D.C. Economic Partnership wdcep.com

5.7%, greater than the

national average of 3.7%

Fairfax County Economic Development Authority fairfaxcountyeda.org

POPULATION GROWTH

D.C. Economic Strategy dceconomicstrategy.com

15.3% increase between

2010 and 2017

Office of the Deputy Mayor for Planning and Economic Development dmped.dc.gov

HIGHLIGHTED PROGRAM OR INITIATIVE The Inclusive Innovation Fund invests in and supports early-stage businesses in D.C. represented by people of color, women, LGTBQ people and those with disabilities. It invests in pre-seed, seed and pre-series A stage companies with at least 51% ownership by the designated classes.

80 2019 CEO GUIDE TO SITE SELECTION

• Bechtel announced in June 2018 it will move its headquarters to Fairfax County by the end of 2018 and create 150 new jobs in the region.

• Cyberscurity technology firm Excivity announced in July 2018 an expansion that will create 45 new jobs in Fairfax County.

• Audit, tax and advisory firm KPMG announced in October 2018 a $30 million expansion in Fairfax County and 500 new jobs.

• Ford announced in October 2018 it will construct a base of operations to test self-driving vehicles in Washington, D.C. • BAE Systems announced in October 2018 it will move its headquarters and 350 jobs to Fairfax County.

BIG COMPANIES 15 Fortune 500 companies are headquartered in the Washington, D.C. region, including: Freddie Mac General Dynamics Capital One Financial Northrop Grumman Leidos Holdings Hilton Worldwide Holdings DXC Technologies NVR Booz Allen Hamilton

C-SUITE TESTIMONIALS “We’re committed to Fairfax County and are excited about the growth that we’re seeing here in world-class innovation and leading-edge technology—two areas that align with our own core services and strategic approach.”

—Jerry Carlson, Managing Partner, KPMG “Fairfax County is a world-class location for Arconic’s global headquarters.... We look forward to benefiting from the location’s proximity to customers, talent and transportation hubs.”

—Chip Blankenship, CEO, Arconic “Fairfax County and the surrounding areas are a hub for companies performing mission-centric work focused on cybersecurity and unique security technologies.... We maintain our footprint in this area because of the talent pool, along with easy access to the Dulles corridor and the airport for travel to support our clients.”

—Matthew Ramsey, President and CEO, Excivity

Realize tax incentives.

Build communities.

Put your capital gains to work.

Tax relief and community development. That’s a win-win.

Qualified Opportunity Zones unlock a series of tax incentives designed to direct funds into underdeveloped communities. Whether you’re an investor, a developer or a business owner, KPMG’s specialists can assist from qualification and site-selection through compliance.

Learn more at read.kpmg.us/opportunity-zones

Anticipate tomorrow. Deliver today.

©2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Some of the services or offerings provided by KPMG LLP are not permissible for its audit clients or affiliates or related entities. 181102

PURE BUSINESS

Whether you’re looking for a place to start, grow or expand your business, there’s one state that’s synonymous with business success. Michigan. Consistently ranked among the top 10 states for major new and expanding facilities, Michigan offers a top-ranked business climate, six percent corporate tax and a wide range of resources.

For global manufacturers, tech startups, innovators, entrepreneurs and more, Michigan is committed to business success.

michiganbusiness.org