REGIONAL REPORT NORTHEAST & SOUTHEAST

REGIONAL REPORT

NORTHEAST & SOUTHEAST

While employment still lags in some states, much of the country is on an economic rebound. BY CRAIG GUILLOT

*State’s rank in the 2021 Chief Executive Best & Worst States for Business (ChiefExecutive.net/ the-best-worst-states-forbusiness2021) FROM NEW YORK TO FLORIDA, states in the Northeast and Southeast are rebuilding their economies and landing exciting projects in tech, manufacturing and logistics.

2 FLORIDA* WHERE THE SUN IS STILL SHINING

While Gov. Ron DeSantis’ moves last year often went against CDC guidelines, it helped the state weather the storm. “Florida’s economy was blindsided by a sudden recession and prolonged disruptions to supply chains because of Covid-19,” said Florida Secretary of Commerce and CEO of Enterprise Florida Jamal Sowell. “But jobs are coming back, commerce is on the uptick, and Enterprise Florida is in lockstep with Gov. DeSantis’s bold mission to retake the high ground of prosperity for all corners of Florida.”

The Sunshine State, which ranked #2 in Chief Executive’s 2021 Best & Worst States for Business, landed several notable projects in the past year. Aviation manufacturer Aerion announced a $300 million capital investment that will create 675 jobs by 2025. IT consulting firm Synergy Technologies is adding 300 jobs in Jacksonville. And Scotlynn USA, a logistics subsidiary of Canada-based Scotlynn Commodities, opened a new headquarters in Fort Myers.

3 TENNESSEE ELECTRIC GROWTH

The Volunteer State maintained a spirit of resiliency in working to rebuild the economy, says Bob Rolfe, commissioner of the Tennessee Department of Economic and Community Development. One promising area is electric vehicles. The state is now home to three OEMs and over 900 suppliers in an automotive industry that employs more than 123,000 residents. Tennessee produces more than 16,000 electric vehicles annually. GM announced in October 2020 a $2 billion facility in Spring Hill to build electric cars. “Tennessee’s central location, skilled workforce and pro-business climate are a few of the advantages we offer companies,” says Rolfe.

4 NORTH CAROLINA CONTINUING MOMENTUM IN TECH

With tech assets in the Research Triangle

FLORIDA

Bucking CDC guidance seems to have paid off for the Sunshine State, which landed a $300 million capital investment by Aerion.

and the growing life sciences sector, the Tar Heel State has been on a roll in the past year. Thermo Fisher Scientific announced in December 2020 a $500 million investment and 500 new jobs in Greenville. Fintech company Robinhood added in March nearly 400 jobs in Mecklenburg County. And in April 2021, Apple announced a $1 billion R&D campus in Wake County that will create 3,000 jobs by 2032. “As a North Carolina native, I’m thrilled Apple is expanding and creating new long-term job opportunities in the community I grew up with,” said Jeff Williams, Apple’s chief operating officer. “We’re proud that this new investment will also be supporting education and critical infrastructure projects across the state.”

6 SOUTH CAROLINA PROSPERITY IN THE PALMETTO STATE

The Palmetto State won 126 economic development products, accounting for more than $4 billion in capital and more than 11,100 new jobs. “To increase our year-overyear recruitment totals while navigating the impacts of Covid underscores the adaptability and resiliency of our team across the state,” says Alex Clark, CMP, director of marketing and communications at the South Carolina Department of Commerce.

Life sciences, logistics and agribusiness performed exceptionally well. The pandemic underscored the importance of the life sciences sector and led to a surge in distribution activity through e-commerce. In July 2020, Walmart announced 1,000 new jobs at a $220 million distribution center in Dorchester County. Agriculture Technology Campus announced a $314 million technology campus in Hampton County, and Mark Anthony Brewing announced 300 new jobs at a $400 million facility in Richland County.

9 GEORGIA FORWARD MOMENTUM IN THE PEACH STATE

Georgia experienced substantial growth in the past year with economic development projects yielding 24,000 new jobs and $8.43 billion in new investments. Many companies took advantage of the state’s “rapid and rational” approach to the pandemic, says Brittany Young, COO at the Georgia Department of Economic Development.

Both Microsoft and Airbnb recently committed to making Atlanta one of their biggest national tech hubs. Georgia is also positioning itself in the electric vehicle supply chain. In November 2020, Turkish company TEKLAS announced its first North American facility and headquarters in the state. Germany’s GEDIA Automotive Group also announced an advanced manufacturing facility. “This industry segment is really growing in Georgia, and from R&D to location, to the workforce, we are positioned to capitalize on this growing trend,” Young says.

13 VIRGINIA FEDERAL SECURITY

The large portion of federal jobs that can be performed remotely helped Virginia’s economy weather the pandemic, says Stephen Moret, CEO of the Virginia Economic Development Partnership. Unemployment has remained comparatively low, and VEDP has several initiatives to accelerate economic recovery, including capitalizing on new supply chain opportunities and reskilling the unemployed workforce. “Virginia recently has been making historic investments in broadband access, which the pandemic has shown to be more important than ever,” Moret says. Driven by the growth in e-commerce, the logistics sector was a bright spot in 2020. The state also saw significant interest in capital investment projects in technology and remains the leading data center market in the world. Moog, CMA CGM and Crown Holdings all announced projects here in the past year.

GEORGIA

In February, Atlanta won tech hubs from Microsoft and Airbnb.

DELAWARE

Delmarva Corrugated is bringing 159 manufacturing jobs to Central Delaware.

14 DELAWARE PROMISING PROSPECTS AHEAD

Delaware is more optimistic than ever about its future, says Kurt Foreman, CEO of the Delaware Prosperity Partnership. “Our pipeline has never been stronger, with particularly strong activity among science and technology companies and in manufacturing and logistics,” Foreman says.

At the start of the pandemic, some of the state’s primary sectors, like financial services and professional services, transitioned to remote work. Trade and transportation also expanded due to the growth in e-commerce. Last year, Delaware attracted 10 new projects, including a 3.8 millionsquare-foot Amazon facility that will employ more than 1,000. Delmarva Corrugated Packaging also announced 159 new jobs at a $80 million manufacturing facility in Central Delaware, and Barclays is adding 323 jobs at its financial services hub in Wilmington.

19 LOUISIANA RIDING OUT CHALLENGES WITH RESILIENCY

The Bayou State never let the pandemic impede its economic development momentum. It secured 58 new projects representing more than $12.7 billion in new investment in the state, the second-highest since 2016. The investments will retain 8,600 jobs and create 11,600 new ones, says Louisiana Economic Development Secretary Don Pierson.

At the start of the pandemic, Gov. Edwards created the Resilient Louisiana Commission, an 18-member panel that includes a task force dedicated to strengthening certain sectors in the state. It recently published A Comprehensive Game Plan for a More Resilient Louisiana, which recommends positive changes in every sector of the economy. In addition to solid growth in chemical manufacturing, other areas of promise include renewable fuels, process industries, logistics and IT. Diamond Green, Mitsubishi Chemical and Shin-Etsu Chemical all made significant announcements in the past year.

23 KENTUCKY BOOMING IN LOGISTICS

Kentucky announced 223 new location and expansion projects in 2020 that will create more than 8,000 jobs and inject more than $2.28 billion into the commonwealth. The Bluegrass State is doubling down on its agricultural strengths. The Kentucky AgriTech Initiative brings the state’s advanced manufacturing sector and agricultural roots to the global stage. Last year, Kentucky signed an international agritech agreement with 16 other partner organizations, including the Dutch government.

The logistics and distribution sector is also growing and now includes more than 540 facilities that employ 75,000 people. The three global air-cargo hubs by UPS, DHL and Amazon all saw significant growth in 2020. “As Kentucky rebuilds its economy stronger than ever, ongoing logistics and distribution industry growth position the state for long-term success,” says Jack Mazurak, executive director of the office of marketing and public affairs for Team Kentucky.

24 NEW HAMPSHIRE LOOKING UP IN LIFE SCIENCES

Putting its pro-business economic growth strategy to work during the pandemic, New Hampshire dedicated nearly 40 percent of its relief programming toward keeping businesses open and liquid, says Taylor Caswell, commissioner of the NH Department of Business and Economic Affairs.

The state’s life sciences sector saw extensive growth in the past year. Lonza Biologics in Portsmouth is producing 100 million vaccine doses under an agreement with Moderna. Lydall began expanding its facility in Rochester last summer to meet the growing demand for N-95 masks, and MilliporeSigma added 160 jobs in Jaffrey to ramp up production of components for Covid-19 treatments and vaccines. The state also landed projects from companies like Integra Biosciences and LSNE.

30 ALABAMA MANUFACTURING RECOVERY

Alabama’s economic development initiatives helped it land more than 230 new projects in 2020, resulting in almost 9,500 new jobs and $4.8 billion in new capital investment. The state’s strength in manufacturing also keeps it on the international radar. Half of the investments came from 13 foreign countries.

The auto industry remains a primary growth engine. Mazda Toyota Manufacturing announced an additional $830 million investment in its Huntsville assembly plant, and Mercedes-Benz is investing $54 million in a logistics center in Tuscaloosa. Canfield notes a total of eight Mazda Toyota suppliers have also announced sites in the state for a total investment of $750 million and 2,000 new jobs.

31 ARKANSAS SECURING AN ESSENTIAL ECONOMY

Taking the stance that “every business is essential” helped Arkansas entice several companies to expand or relocate there since the pandemic. Amazon announced a fulfillment center and 1,000 new jobs at the Port of Little Rock. Emerson announced a $35 million facility in Ash Flat that will create about 245 jobs, and Butterball announced more than 360 new jobs. Companies are coming to the state not only for the labor but following a national trend of migration to the South, says Arkansas Secretary of Commerce Mike Preston. “As business leaders reaped the benefits of the leadership in Arkansas, people around the country became more open to moving to a location that offers a lower cost of living and a higher quality of life.”

32 MISSISSIPPI WORKING THROUGH THE CHALLENGE

Mississippi generated more than $1.9 billion in capital investment in 2020, 45 percent more than the previous year, says John Rounsaville, executive director of the Mississippi Development Authority. “[Last year] was a home run for our state and reflective of our “theme” during this recovery—we never stopped working toward our mission of building stronger communities through economic development,” Rounsaville says.

One growth area is agribusiness and forestry. Biewer Lumber, Vicksburg Forest Products, Idaho Forest Group and Mission Forest products all announced new mills and expansions that will create jobs. Amazon announced it would locate its third fulfillment center in Madison County, creating more than 1,000 jobs. Associated Wholesale Grocers announced a $300 million distribution hub in Hernando. “Mississippi won approximately 40 economic development projects in 2020,” Rounsaville says.

34 WEST VIRGINIA OUTDOOR OPPORTUNITIES

The Mountain State is striving to attract remote workers through the Ascend WV program. It offers a generous incentive package that includes $12,000 and a year’s worth of free outdoor recreation activities through more than a dozen outfitters. It also offers free coworking space and networking events with business leaders, guided outdoor excursions and access to WVU’s entrepreneurship ecosystem. “Everything that makes West Virginia a great place to visit makes it an even better place to live and work,” said Secretary Chelsea Ruby of the Department of Tourism. “With remote work becoming a permanent option for more and more professionals, we’re excited to introduce them to the blend of adventure and serenity that makes life in West Virginia a permanent vacation.”

36 MAINE FEDERAL FUNDS FOR NEW HORIZONS

In May 2021, Maine Gov. Janet Mills unveiled a $1 billion economic recovery plan funded

ALABAMA

Mercedes-Benz’s $54 million investment in a Tuscaloosa logistics center will support electric vehicle production.

by the federal America Rescue Plan. The Governor’s Economic Recovery Committee and the State’s 10-Year Economic Development Strategy calls for investment in skills training, R&D and new worker attraction. Strategic investments include $80 million to jump-start innovation through public-private partnerships and $105 million to support infrastructure and equipment upgrades in higher education systems.

37 RHODE ISLAND NEW OPPORTUNITIES IN THE OCEAN STATE

Things are looking up in the Ocean State. Fidelity Investments announced in April 2021 the creation of 500 jobs at its campus in Smithfield as part of a new regional center for Fidelity’s personal investing business. “Expanding in Rhode Island gives us access to a talented and educated workforce in the Ocean State to fill these positions that are new to this market for us,” said Mark Barlow, SVP of personal investing at Fidelity Investments.

In September 2020, Infosys announced it would hire an additional 500 tech workers by 2023. The company opened its Digital Innovation and Design Center in Providence in 2019, something Infosys president Ravi Kumar credited to the state’s “strong leadership, positive business climate and innovative spirit.”

38 MARYLAND ONGOING RECOVERY IN THE OLD LINE STATE

With strong ties to federal employment and contracting, Maryland was fortunate that one part of its economy was less impacted by the pandemic. As a result, the state has added 2,700 professional, scientific and technical services jobs since February 2020. “Although government employment has seen an overall decline, the strong federal workforce means our growth rate in the industry over the past year has still been the fifth-best in the nation,” says Kelly Schulz, secretary of the Maryland Department of Commerce.

Maryland landed several significant projects in the past year. Aurinia Pharmaceuticals announced 500 new jobs at its new U.S. commercial operations in the state, and TCR Therapeutics added 175 new jobs in Montgomery County. Novavax, Qiagen and Vigene Biosciences all also announced new investments in the state.

39 VERMONT JUMP-STARTING RECOVERY

In April 2021, Vermont Gov. Phil Scott unveiled a plan to strategically invest $1 billion in one-time federal money. The administration proposes using the funds in five key areas: broadband and wireless connectivity, housing, climate change mitigation measures and water infrastructure. The $143 million allocated for economic development would go to economic recovery grants and include $90 million in capital investments. Part of that would consist of a capital co-investment program to incentivize transformational projects that build new facilities in the state. “By investing in infrastructure, broadband and housing, we can increase economic equity from region to region, helping communities across the state attract more jobs, families and private investment,” said Scott in a press release.

41 PENNSYLVANIA BACK TO WORK

The Keystone State landed several notable projects in the past year. Sharp, a global leader in clinical supply chain services and pharmaceutical packaging, announced a third facility in the state that will create 335 full-time jobs. BNP Paribas also announced in February 2021 an expansion in the southeastern part of the state that will create 300 jobs.

Gov. Tom Wolf’s proposed 2021-2022 budget prioritized economic recovery and growth through business tax cuts and investments in workforce development. Department of Community and Economic Development Secretary Dennis Davin noted that the governor’s plan would lead to a tax cut of more than $240 million, with more than 400,000 business owners paying less in tax than they currently do. “These actions will create a more level playing field and lessen the burden on businesses to

RHODE ISLAND

Fidelity, which employs 3,200 in the state, is opening a new regional center in Smithfield.

operate in our commonwealth—a burden that has only become more increased and complicated due to the Covid-19 pandemic—and make our taxation system more equitable,” Davin said.

43 CONNECTICUT A SMALL STATE MANUFACTURING A BIG FUTURE

Connecticut’s economy grew 7 percent in Q4 of 2020 and, thanks to rising tax receipts and flat spending, the state now projects a general fund surplus for the year ending June 2021. “Connecticut has done a good job managing the pandemic, leading to rebounding growth and better-than-expected fiscal position as we approach the end of the state’s fiscal year,” says Peter Denious, CEO of AdvanceCT.

Electric Boat, one of the largest manufacturers in the state, recently secured a $9.5 billion contract to build submarines and announced 2,000 new jobs. The state has also seen several company relocations from New York, including the 500-employee headquarters of Nuvance Health Systems. In addition, Amazon opened three centers in the past year, and Infosys announced 1,000 new jobs. “There’s newfound energy and enthusiasm in both the public and private sectors to put Connecticut on a long-term growth plan,” Denious says.

45 MASSACHUSETTS BOOMING IN THE BAY STATE

In the first quarter of 2021, Massachusetts state economy grew by 11.3 percent, more than double the rate in the last quarter of 2020, according to MassBenchmarks. That’s well above the national average, something economic development officials credit to vaccine rollouts, small business support and good business policies. In February 2021, Gov. Charlie Baker signed off on House Bill No. 5250, An Act Enabling Partnerships for Growth. The law features more than $626 million in capital authorizations and a fiveyear roadmap to support economic growth and improve housing stability across the state. This includes money to support advanced manufacturing and new emerging opportunities to strengthen the state economy. There are also resources for micro-businesses and low-to-moderate income and minority entrepreneurs.

47 NEW JERSEY MAKING BIG BETS

The Garden State is climbing the ranks in the sports wagering and fintech industries. In the three years since legalizing sports betting, New Jersey has become one of the largest sports wagering markets in the U.S., with nearly $1 billion per month wagered toward the end of 2020. The New Jersey Economic Development Authority Board recently approved a memorandum of understanding with New Jersey City University to support the creation of a Sports Wagering and Financial Technology Workforce Development and Innovation Center. NJEDA CEO Tim Sullivan notes the state offers a highly talented technical workforce with proximity and connectivity to New York City and Philadelphia.

49 NEW YORK RECLAIMING THE EMPIRE

Hard hit at the start of the pandemic, the Empire State is experiencing a notable rebound, both in New York City and across the state. In February, Plug Power announced 68 new jobs at a $290 million hydrogen fuel production facility and electric substation in Genesee County. President Container Group broke ground in April 2021 on a $40 million expansion in Orange County to create 50 new jobs. Unite USA also announced plans to add at least 300 new jobs in New York City.

Beam Suntory announced in January 2021 it will relocate its global headquarters from Chicago to Manhattan, bringing more than 150 new jobs to New York City over the next five years. “As one of the world’s greatest global cities, New York provides a unique environment to help us accelerate our premiumization strategy and growth ambitions,” said Albert Baladi, CEO of Beam Suntory.

CE

CONNECTICUT

Electric Boat will be assembling two classes of submarines in a 200,000-squarefoot facility in Groton.