Issue 5 2017

2017 Issue 5

D e ve l o p , I n n ov a t e , P r o s p e r

Developing Oklahoma’s Southeast Region Q&A with Glenn Glass, Regional Development Specialist for Southeast Okla. p. 3 OKcommerce.gov

THE STATE OF DEVELOPMENT Regional Development Team

Laying the building blocks for success.

The Oklahoma Department of Commerce is dedicated to providing the support and tools necessary for Oklahoma companies to grow and thrive in our state. The Regional Development Specialist (RDS) Team offers hands-on assistance as well as referrals to resource and program providers to help support businesses in every part of Oklahoma.

Whether you need to respond to a Request for Proposal (RFP), find potential funding resources for municipal projects, learn how to attract retail to your community, or TX develop a workforce, your RDS can connect you directly to the tools and resources your community needs to succeed and grow.

Our Services

The RDS Team provides hands-on assistance to communities and businesses.

• Business Retention & Expansion • Business Attraction Programs • RFP Response Assistance • One-on-One Visits • Development Workshops • Trade Assistance • Community Grant Programs • Strategic Planning

80%

of all new jobs are created by existing companies.

• Regional Development Partnerships • Main Street Revitalization • Workforce Development Support Contact our team today. To locate the Regional Development Specialist who serves your community, call 800-879-6552 or visit okcommerce.gov/development

Developing Oklahoma’s Southeast Region Q&A with Glenn Glass, Regional Development Specialist for Southeast Okla.

I work closely with our partners at Oklahoma Southeast, a regional economic development organization, to bring in-state and out-of-state guests to our region to showcase the area and hopefully bring industrial and retail growth to the area.

Glenn Glass, ODOC Regional Development Specialist Glenn Glass is the Regional Development Specialist (RDS) for the Oklahoma Department of Commerce (ODOC) in Southeast Oklahoma. Glass lives and offices in the 14-county region he serves.

Glenn has worked for ODOC for about 14 years and has been an integral part of development of the Southeast region.Glass recently assisted Central Metal and the City of Holdenville in obtaining a $600,000 CDBG-EDIF grant to rehab a 60,000-square-foot building (owned by the city) that allowed Central Metal Finishing to move into the building and expand services and employees; one of many examples of his work in the region.

What are your major priorities in the Southeast area?

I assist existing businesses with issues that they may encounter and deliver ODOC programs such as grants and incentives analysis.

I work closely with our partners at Oklahoma Southeast (OKSE), a regional economic development organization, to bring in-state and out-of-state guests to our region to showcase the area and hopefully bring industrial and retail growth to the area.

Most importantly, I let the region know that there is an ODOC representative in the Southeast region that is available to assist and work with existing business, startup businesses, recruiting, regional economic development and more.

Basically I am the person on the ground in the Southeast region that communities, businesses or individuals tell about their needs and I attempt to find answers for them.

What are some of the biggest assets to your area?

One of the biggest assets the Southeast region has is a large amount of available water that could be used for industry. This region also has a tremendous amount of natural resources such as timber, limestone, coal and rock. We also have a lot of natural beauty with the lakes, timber, rivers and scenery that make hunting, fishing, trail riding, boating and camping huge in this area, bringing in a large amount of tourism dollars to the area. Our close proximity to the Dallas/Fort Worth metro is also a great asset and is a key selling point when working to recruit new businesses to the area.

What are the main industries in your area?

The timber industry is very large in the Southeast area with Huber Engineered Woods, Pan Pacific Products, Teal-Jones Lumber and Weyerhaeuser operating in the area. We also have several metal fabricators and trailer manufacturers such as Atoka Trailer Heavybilt, Nuttall MFG, Expanded Solutions and others that do metal fabrication.

What are some of the largest companies in your area?

Big Lots Distribution Center, Durant Cardinal Glass, Durant Commercial Metals Company, Durant Huber Engineered Woods, Broken Bow Bar-S Foods, Seminole Legalshield, locations and offices in Ada, Antlers and Duncan What are some of the newest companies in your area?

Commercial Metals Company, Durant Teal-Jones Lumber, Antlers Pervasive Slots, LLC, Holdenville

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Brucepac, Durant Bell Lumber and Pole, Broken Bow TLC Rail Services, Wright City Oldcastle Enclosure Solutions, Poteau What businesses would be a good fit for the region and how does ODOC work to attract those types of businesses?

I would like to see more outdoor-type companies locate – companies that manufacture guns, ammunition, fourwheelers, camping equipment, game calls, boats, or anything associated with outdoor activities. OKSE has identified outdoor industry as a target for the area. ODOC provides support to the group. Earlier this year we attended the SHOT (Shooting, Hunting, Outdoor Trade) Show in Las Vegas in order to work to recruit companies to Oklahoma.

This tradeshow is the biggest show for the shooting, hunting and firearms industry. From the show, we have identified several qualified business leads.

Craft breweries are another industry that has been targeted by some communities in the Southeast region. With the abundance of water in the region this seems to be a natural fit. Krebs has a craft brewery that is doing very well and has recently expanded. Commerce is assisting with research on this industry and we are currently working a project for a craft brewery interested in locating in the Southeast region.

How do you work to provide workforce solutions for companies?

I work directly with the Southern Workforce Board to assist with workforce issues that companies have. The region holds manufacturing summits to identify the types of issues manufactures in the region have. I call on companies to find out what type of issues they may have and offer assistance for the company. I also report findings back to the Southern Workforce Board so they can be aware of company issues.

What partnerships are vital to the area?

OKSE is a vital partnership. The group is made up of cities, tribes, utilities, universities, and workforce and agency representatives from the region. Together, they host business representatives to the region in an attempt to get industry and retail to locate in the Southeast Region. OKSE hosts three events each year including the Lt. Governor’s Turkey Hunt in Hugo, Golf/Striper event in the Durant and the Golf/Trout event in Broken Bow. Members of the group also attend the

retail show in Dallas and the SHOT Show in Las Vegas. This regional group receives no state, federal or grant funds.

The Choctaw Nation and Chickasaw Nation are critical partnerships that are have been essential to getting projects completed in Southeast Oklahoma. The tribes have been great partners for the communities, ODOC and OKSE. For me personally, the relationships that I have developed with the partners in the region such as the Oklahoma Manufacturing Alliance, Rural Enterprises, U.S. Department of Agriculture (USDA), Choctaw and Chickasaw Nations, CareerTech institutions, universities, workforce and others are the most critical for me to help the region.

How have community and economic development grants helped the region?

Without these grants many communities and businesses would not have been able to expand, do necessary repairs or purchase equipment. These grants are distributed by ODOC’s Community Development team and allow companies to grow and adds more jobs, help cities to improve infrastructure and purchase equipment to improve their city.

What services do you provide that communities should be more aware of?

Assist existing businesses with making them aware of the State incentives that can be available to them, that Commerce has a global division that helps companies with export, that Commerce can perform research and provide analysis for communities and make them aware of programs such as the CDBG-EDIF grant program. Making the companies aware that I can connect them to Rural Enterprises, USDA, The Oklahoma Manufacturing Alliance, Small Business Administration, OCAST, OSU Extension and other agencies or individuals that could assist them with business plans, funding, grants, import/export or other needs that they may have.

For more information contact Glenn Glass, Development Specialist 108 South Dwight, Coalgate, OK 74538 405-596-1640, glenn.glass@okcommerce.gov

Regional

GrowOK Venture Assessment Program Set to Debut Designed especially for rural communities and Native American entrepreneurs.

I’m so pleased that i2E is taking this creative program to Oklahoma’s rural and Native American population. It will offer rural entrepreneurs access to services that will help them find new markets and new customers for products developed in their communities.

Mary Fallin, Governor i2E, Inc., a nonprofit that assists Oklahoma’s emerging small businesses, and seven state partners, with the assistance of a $200,000 matching federal grant, are taking a popular venture assessment program to rural Oklahoma and Native American entrepreneurs.

State partners include the Cherokee Nation, Choctaw Nation, Chickasaw Nation, Muscogee (Creek) Nation, Oklahoma Business Roundtable and the Oklahoma Center for the Advancement of Science & Technology (OCAST). Rural Enterprises of Oklahoma, Inc., is also a supporting partner.

The U.S. Economic Development Association (EDA) awarded the grant in November.

Known as GrowOK, the program will debut this spring with a curriculum designed especially for rural communities and Native American entrepreneurs.

The governor said the initiative is an innovative step in diversifying the state’s economy in rural areas as well as its urban centers.

“I’m so pleased that i2E is taking this creative program to Oklahoma’s rural and Native American population,” said Fallin. “It will offer rural entrepreneurs access to services that will help them find new markets and new customers for products developed in their communities.”

“The GrowOK curriculum will challenge rural and Native American entrepreneurs to identify their customers and determine whether their concept solves a true market need,” said Scott Meacham, i2E’s president and chief executive officer. i2E provides business advisory services and investment capital to high-growth startups across Oklahoma.

“Thanks to the federal Economic Development Administration and our great partners here in Oklahoma, this program will allow i2E to take our services to the state’s Native American and rural entrepreneurs in areas where they live and work,” Meacham said. “Our mission with GrowOK will be to help grow successful ventures in rural communities across the state.” i2E has provided its Venture Assessment Program as an intensive three-week course at its Tulsa and Oklahoma City offices since 2015, helping scores of entrepreneurs validate their business concepts and reach out to potential first customers.

The first GrowOK class is expected to launch this month in Ada. For i2E’s tribal partners, the GrowOK program provides another tool for their small business development organization to bring in outside expertise and as a business growth opportunity for their members. i2E was one of 35 nonprofits, institutions of higher education and entrepreneur-focused organizations from 19 states across the nation that were awarded a total of $15 million to create and expand initiatives to support entrepreneurship.

The $199,749 grant awarded to i2E was from among a pool of more than 215 applicants nationwide as part of the EDA’s Regional Innovation Strategies Program (RIS).

For more information, go to www.i2E.org

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New and Expanding Companies Report Q1 2017 We are pleased that our new location in Kingfisher will broaden the area in which we can provide field and measurement services to oil and gas clients. By strengthening our network and expanding our coverage area, we continue our efforts to provide best practices and excellence to the industry.

Ian Milne, CEO, SPL, Inc.

In Q1 2017, there were 19 announcements made statewide, totaling more than $614 million in new investment. Of the 19 announcements made statewide, three of these companies were new to Oklahoma. More than 1,100 jobs are expected to be created from this quarter’s growth.

SPL, an industry leader in hydrocarbon measurement, analysis, reporting, and management services, continues its expansion in Oklahoma with a second location in Kingfisher. The new location will service the oil and gas production companies, midstream operations, plants, and pipelines in the region. As a compliment to the full suite of services available from the SPL network, the Kingfisher facility will offer field sampling and measurement, reporting, consulting, and measurement parts sales.

With the addition of this new location, SPL continues its focus on ensuring hydrocarbon data integrity from wellhead to the point of sale.

“We are pleased that our new location in Kingfisher will broaden the area in which we can provide field and measurement services to oil and gas clients,” said Ian Milne, CEO. “By strengthening our network and expanding our coverage area, we continue our efforts to provide best practices and excellence to the industry.”

Golden Mesa Casino, to be built southwest of Guymon, would create about 175 jobs and produce an annual payroll of about $3.7 million, according to Shawnee tribal officials. The proposed casino is seen as an entertainment and destination point.

One of the largest expansions of the first quarter was Vallourec which will add 130 jobs in Muskogee.

“We’ve seen signs of improvement in the U.S. oil and gas market for the first time since the end of 2014. This progressive market recovery is anticipated for 2017,” explained Mike Wild, General Manager for Vallourec Star Muskogee. “We’ve also experienced significant business successes in the region and have seen our market share grow. The increased demand has resulted in increased production volumes.”

The Oklahoma Department of Commerce publishes a quarterly report of publicly announced new and expanding businesses.

Information in this report is collected from a variety of sources including internal Department of Commerce reports, statewide and nationwide newspapers, and company websites. Only companies making public announcements of expansions are included in this report. The Oklahoma Department of Commerce does not release individual company investment amounts.

Retail-only companies, bank branch offices and hospitals are not included.

Quarterly and annual online versions of this report and more are available at: http://okcommerce.gov/data/employers For more information, questions or a detailed list of companies contact Scott Mauldin: scott.mauldin@okcommerce.gov

$

614M

INVESTMENT

In Q1 2017, there were 19 announcements made statewide, totaling more than $614 million in new investment.

1,100 +

JOBS

More than 1,100 jobs are expected to eventually be created from the Q1 2017 announcements.

COUNTIES WITH NEW AND EXPANDING COMPANIES IN QUARTER 1 2017 Bryan Cleveland Garfield Johnston Murray Pontotoc Kingfisher Muskogee Oklahoma Texas Tulsa

Download a full copy of the report: okcommerce.gov/data/employers

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Community Development Block Grant and Rural Economic Action Plan Program Director Retires After 25 years Community Development Block Grant (CDBG) and Rural Economic Action Plan (REAP) Program Director retires after 25 years.

Scott Myers shares incite on the importance of investing in rural Oklahoma. Scott Myers has worked in the Community Development Services Division for just over 25 years.

In his time with ODOC, Scott has overseen 25,000 basic CDBG infrastructure projects and 150 economic development projects, totaling more than $300 million dollars and benefiting hundreds of thousands of rural Oklahomans. Myers also administered the CDBG-Disaster Recovery program which allocated $93.7 million in funds to meet unmet needs from the presidentially-declared disasters from 2011-2013.

“Scott has a passion for community development that is second to none,” said Vaughn Clark, Division Director, Office of Community Development. “With his retirement, we are losing more than two decades of experience and commitment to the Community Development Block Grant (CDBG) program in particular, which will definitely be hard to replace. Our community development family will miss his leadership and guidance in the planning and implementation of programs which have allowed cities, towns and counties throughout Oklahoma to address vital public infrastructure needs.”

The New Pioneer asked Myers to tell our readers about the importance of investing in rural Oklahoma: Many of Oklahoma’s rural communities face serious community and economic development challenges: outdated water and wastewater systems are prevalent; many streets, sidewalks, community centers and fire protection services are in poor condition; dilapidated housing and out-migration is a serious concern.

For those rural Oklahoma communities striving to improve their quality of life, investing dollars in infrastructure help make a big difference. The federal CDBG program and the state appropriated Rural Economic Action Plan (REAP) grant program help provide a solid foundation for communities to be in a better position to attract, develop, and retain diverse and higherpaying jobs while improving the quality of life of local residents.

The CDBG program’s primary national objective is the development of communities by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for low-income persons. The Small Cities CDBG program administered by ODOC focuses on rural

Oklahoma, as no projects can be funded in communities with populations greater than 50,000. Cities with populations greater than 50,000 receive their CDBG funding directly from the US Department of Housing and Urban Development. Funds under the REAP program are allocated to the 11 Regional Councils of Government (COGS). The purpose of this program is to provide funding to rural communities with a population of 7,000 or less.

Both programs provide funding for infrastructure such as water, sewer, streets, drainage, fire protection and a whole host of infrastructure-related activities.

For many rural communities, the CDBG and REAP programs are steady sources of funding dedicated to benefiting the state’s poorer rural communities. However, both programs face considerable challenges and real dollar funding for the core programs has shrunk tremendously over their lifetimes. A recent article in Governing magazine by the Urban Institute noted that, when adjusted for inflation, the total CDBG program in 2000 equated to $6 billion a year to local governments. Today, the amount hovers around $3 billion. Utilizing this adjusted inflation figure on the State of Oklahoma’s 2015 allocation of $12.7 means that the state’s CDBG allocation would have to be increased to roughly $25 million to have the same impact that it did in 2000.

CDBG BY THE NUMBERS: $12.7 million awarded for infrastructure improvements 148 new jobs 328,000+ Oklahoma beneficiaries 103 new projects in rural Oklahoma Source: Program Performance Numbers for 2015 CDBG

REAP BY THE NUMBERS:

The negative real dollar impact can be applied to the REAP program as well.

Investing federal, state and private resources in community infrastructure is important to keep rural communities viable.

Infrastructure is a visible, tangible representation of how well government works and sometimes does not work. However, most Oklahomans interact with some form of government-funded infrastructure on a daily basis. Poor infrastructure undermines popular confidence in government and weakens economic growth. It also has a negative effect on the health, safety and welfare of rural communities.

The economic health of Oklahoma’s rural communities is a priority for the Oklahoma Department of Commerce (ODOC). Through programs like CDBG and REAP, ODOC helps communities position themselves for continued development, revitalization and new investment.

To find out more about CDBG and REAP or to learn how your community can apply for funds, contact:

$

10.8M

10.8 MILLION AWARDED FOR INFRASTRUCTURE IMPROVEMENTS BY REAP IN 2016

175

NEW PROJECTS IN RURAL OKLAHOMA FOR REAP IN 2016 Source: Program Performance Numbers for 2016 REAP

Steven Hoover, Senior Planner 405-815-5268, Steven.Hoover@okcommerce.gov

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Kodak Makes $15 Million Investment in Weatherford Plant Kodak’s differentiated flexo technology is helping our customers to drive growth, break new ground and transform flexographic printing ... we’re looking forward to using the expanding facility here in Weatherford to continue helping our customers realize the benefits of Kodak’s flexo technology and what its unique capabilities can do for their business.

Jeff Clarke, CEO of Kodak

Kodak is making a major capital investment in their Weatherford, Oklahoma plant. The expansion will add a new line of flexographic printing plates to serve customers in the United States, Canada, and Latin America. Flexographic printing is widely used in the production of food packaging such as cans, boxes and bags.

“Today’s celebration brings a focus on the ‘new face of flexo,’” said Jeff Clarke, CEO of Kodak. “Kodak’s differentiated flexo technology is helping our customers to drive growth, break new ground and transform flexographic printing and the packaging industry as a whole. The growth of KODAK FLEXCEL NX speaks to the strength and opportunity of the flexographic packaging market, and we’re looking forward to using the expanding facility here in Weatherford to continue helping our customers realize the benefits of Kodak’s flexo technology and what its unique capabilities can do for their business.”

The announcement coincides with the 50th anniversary of the Weatherford plant. Kodak says the location was chosen for its strong technical capabilities and existing skilled workforce.

The new line joins its sister operation in Yamanashi, Japan and will help meet an increase in demand of higher quality printed packaging.

A groundbreaking ceremony was held on April 20th at the facility and featured a ribbon cutting by Kodak CEO Jeff Clarke and Oklahoma Governor Mary Fallin. Also speaking were Representative Harold Wright and Weatherford Mayor Mike Brown.

“The last two days have been a fantastic opportunity to share our vision for flexo, our story of growth and the unique Kodak technology that enables it,” said Chris Payne, Flexographic Packaging Division President for Kodak. “It was a privilege to host elected officials, customers and the media to mark this occasion.”

The $15 million investment is one of the company’s largest since 2000 and the new line is expected to be in full production by early 2019.

Pavement Projects Proliferate Statewide ODOT wants motorists to be work zone aware Much like spring flowers, pavement resurfacing projects are about to bloom statewide thanks to more than $116 million worth of pavement contracts awarded by the Oklahoma Transportation Commission since November.

The 50 pavement projects awarded to-date cover every corner of the state and aim to improve drivability by resurfacing the cracks, bumps and intermittent patches on some of the most traveled highways.

These projects also include resurfacing programs in local communities where federal funds will be matched with local resources.

The Oklahoma Department of Transportation (ODOT) wants motorists to start preparing now for an increase in highway work zones this spring through fall. Paying attention and slowing down in work zones are key to preventing more loss of life, after 17 deaths in Oklahoma work zones in 2016. The majority of work zone deaths are motorists and the department is highlighting work zone safety with a month-long campaign this

year titled Your Life Matters: Drive Like It. While April 3-7 is National Work Zone Awareness Week, Oklahoma campaign events began April 10 with the department asking Oklahomans to wear orange that day in support of highway workers. To learn more about the campaign, see ok.gov/odot/WorkZoneAwareness.html For example, motorists may have noticed a significant resurfacing of I-40 in Oklahoma City between Meridian Ave. and May Ave. which began in April. Work will occur mostly at night for the next six months.

This nearly $10 million contract will also resurface just more than four miles of I-35 between N.E. 122nd St. in Oklahoma City to just north of Second St. in Edmond with that phase beginning in late summer.

“While this year’s resurfacing contracts will extend pavement life by up to 10 years in many locations, maintenance needs remain critical on Oklahoma’s 30,000 lane miles,” Terri Angier, ODOT spokeswoman, said. “The department recognizes that much work remains to be done after addressing structurally deficient bridges

since 2004. Pavement conditions have been waiting for funding and remain a top priority.”

In the past decade, the number of structurally deficient bridges went from 1,168 to 270 as of 2016. The department anticipates having the majority of state bridges on the structurally deficient list scheduled for construction by 2020, freeing up funding to address pavement conditions statewide.

“We want motorists to be prepared for these work zones statewide and to know that the department is doing all that it can to maintain and preserve pavement conditions even in tight budget years,” Angier said. “Maintenance needs will continue to accrue, but these projects will go a long way toward improving drivability statewide.”

For more informaiton visit: ok.gov/odot/Traffic_and_Travel

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Upcoming Events and Important Dates COMPLETING RFPS WITH CENSUS AND OTHER DATABASES Thursday, May 11, 2017, 10:00 AM - Noon Southwest Technology Center Altus, OK Costs: Free to attend, registration required

Filling out Requests for Proposal (RFPs) can be a daunting task, but it is critical in attracting businesses to your location. Learn how to find the data you need with a free two-hour interactive workshop with direct application for business recruitment and economic development in your community. The workshop will include an overview of major data sources such as Census, the Bureau of Labor Statistics, and the Bureau of Economic Analysis, followed by a handson session working with ODOC researchers to find the information that companies request about your own town, city, or county.

NEW PIONEER A PRODUCT OF THE OKLAHOMA DEPARTMENT OF COMMERCE EDITOR-IN-CHIEF: Kimberly Hickerson CONTRIBUTORS: Stefanie Appleton,Bryan Boone PHOTO CREDITS: Bryan Boone

Registration and additional details at: okcommerce.gov/data/workshops For questions, contact Jon Chiappe, Director, Research & Economic Analysis Services, at jon.chiappe@okcommerce.gov or 405-815-5210 EXPORTECH Spring ExporTech May 25; June 22, 2017 Meridian Technology Center, Stillwater

Fall ExporTech July 18; August 22; September 19, 2017

FOR NEW PIONEER SUBMISSIONS AND STORY IDEAS CONTACT: Kimberly Hickerson Editor-in-Chief - New Pioneer (405) 815-5240 kimberly.hickerson@okcommerce.gov Oklahoma Department of Commerce 900 N. Stiles Ave. Oklahoma City, OK 73104

The ExporTech program helps companies develop a customized international growth plan so they can enter or expand into global markets and begin selling quickly.

STEP will pay 75% of the $1,200 registration costs for up to two attendees for qualifying companies.

For questions, contact Jesse Garcia, Global Trade Manager 405-8155136 or jesse.garcia@okcommerce.gov Register at: www.okalliance.com/registration

facebook.com/OKcommerce @OKcommerce OKcommerce.gov issuu.com/newpioneerOK

MEMORIAL DAY Monday, May 29, 2017 State Offices Closed