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Author: Spencer Abrams
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State Economic Development Bulletin – October 2022
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State Economic Development Bulletin – August 2022
State Economic Development Bulletin
Headlines:
Economic Performance
U.S. Economy Shrinks for Second Straight Quarter, Igniting Recession Fears (Axios) National GDP growth fell at an annualized rate of 0.9% from April to June in 2022. This decline was driven by slowed inventory investment, declining consumption, and lower levels of housing consumption and business investment in equipment, software, and new buildings. Colloquially, two quarters of consecutive negative growth indicate a recession. However, the National Bureau of Economic Research (NBER), which officially labels recessions, has yet to make this designation—citing a strong labor market, among other factors.
U.S. Federal Reserve Delivers Second Rate Hike (Reuters) On July 27th, the Federal Reserve raised interest rates by another 75 basis points (0.75 percent) in an attempt to tame inflation. The Fed’s overnight rate is now between 2.25% and 2.50%– closer to a “neutral” rate, where monetary policy is no longer encouraging borrowing or investment. Chairman Powell indicated he would like to see “demand running below potential for a sustained period to create slack” and bring price rises down. “While jobs gains have remained ‘robust,’ […] ‘recent indicators of spending and production have softened,’ a nod to the fact that the aggressive rate hikes they have put in place since March are beginning to bite.”
Consumer Price Index Unchanged in July (Bureau of Labor Statistics) The BLS’s Consumer Price Index (CPI) did not change in July from June. The zero percent change is the result of price decreases in energy (largely fuel oil, gasoline, and energy commodities), transportation, and used vehicles netted with price increases in the rest of the basket. While month-over-month prices were flat, year-over-year prices in July were up 8.5%.
Economic Outlook
U.S. Economy Sending Mixed Signals: Here’s What it All Means (Associated Press) The U.S. economy is sending contradictory signals driven by a range of economic indicators. Overall, economic growth is down due to a widening trade deficit and decreasing company inventories, which do not necessarily reflect underlying economic decline. Inflation was at 9.1% in June (compared to June 2021), outpacing wage growth and eating into profit margins. Despite this, consumer spending remains high, and the job market remains strong, adding ~457,000 jobs per month. But a slight increase in initial unemployment claims suggest the labor market might weaken soon.
U.S. Treasury Yields Fall as Investors Weigh Fed Rate Hike Outlook (CNBC) U.S. 10- and 30-year Treasury yields fell in early August and the 2-to-10-year curve inversion deepened. In normal economic circumstances, the yield on the 10-year should be greater than the 2-year, creating a positive spread. The curve from 2 to 10-year Treasuries (called the 10-2 spread) is an oft-used economic indicator. When the curve inverts (yield spread goes negative meaning the 2-year yield is greater than the 10-year yield) it typically indicates an oncoming recession. This represents the market signaling lower growth and inflation prospects and greater likelihood that a bad credit event is more likely in the near-term (i.e., within two years) than over the long run. Yields may be moving in response to a good jobs report as early August economic data indicated a stronger than expected labor market. A strong labor market coupled with high inflation makes aggressive rate hikes from the Fed more likely. The threat of future rate hikes could help explain Treasury market behavior.
SEDE News
Andrew Deye
Vice President and Head of Strategy
JobsOhio
SEDE Spotlight: Andrew Deye is Vice President and Head of Strategy at JobsOhio, the state’s private economic development corporation. In this role, Andrew leads strategy, global business development, data and research functions. Since its creation in 2011, JobsOhio and its partners have supported over 3,000 investment projects – including over 500 foreign direct investment opportunities.
Prior to joining JobsOhio in 2015, Andrew was an investment banker in New York and Chicago, where he worked on public-private partnerships, privatizations, financings and acquisitions. Andrew graduated from Georgetown University with a bachelor’s degree in business administration and obtained a master’s degree from the Harvard Kennedy School of Government.
Trade
U.S. Goods Trade Deficit Narrows Sharply in June; Inventories Increase (Reuters) A surge in exports narrowed the U.S. goods trade deficit by 5.6% to $98.2 billion in June. “Goods exports increased by $4.4 billion to $181.5 billion. Imports of goods fell by $1.5 billion to $279.7 billion. The anticipated contribution to gross domestic product from the smaller trade gap is likely to offset an expected drag from inventories.”
How Tariffs and the Trade War Hurt U.S. Agriculture (Tax Foundation) U.S. tariffs on China and retaliatory tariffs from China have hurt U.S. agriculture and may impact future production. Import tariffs raise prices for consumers by adding a de facto tax on inbound goods. Export tariffs may raise prices for domestic consumers through a different mechanism. Export tariffs implicitly limit total exports by making goods relatively expensive compared to goods in the target economy’s domestic market. Thus, companies produce goods in excess (because they sell fewer goods abroad) and must sell excess production to the domestic market. This drives prices down in the short run which may incent producers to divest from future production. Less investment in future production means lower productive capacity and thus higher prices in the long run.
Industry Trends
U.S. Manufacturing Sector Slows Modestly in July (Al Jazeera) According to the Institute for Supply Management (ISM), U.S. manufacturing slowed in July as production and orders declined and inventories increased. The ISM’s factory activity measurement index declined to 52.8 from 53 a month earlier. Results above 50 indicate that the manufacturing sector is expanding and below 50 indicate it is contracting. The ISM index peaked in March 2021 and has come down nearly 11 points since. Concurrently, the New York Federal Reserve said its Empire State Manufacturing Survey plunged by 42 points in August to -31.3. That marks the second-largest monthly decline on record for this closely watched gauge of economic activity. The biggest drop was recorded in April 2020, when the economy was ravaged by the onset of the Covid-19 pandemic. (CNN)
Biden Signs Massive Climate and Healthcare Legislation (Associated Press) On Tuesday August 16th, President Biden signed the Inflation Reduction Act, the largest federal climate investment in U.S. history. The legislation allocates $375 billion over a decade to fight climate change. It also has substantial healthcare provisions, capping prescription drug costs at $2,000 out-of-pocket annually for Medicare recipients and helping 13 million people pay premiums over the next three years for privately bought health insurance under the Affordable Care Act. Despite its name, “nonpartisan analysts say [the IRA] will have a barely perceptible impact on prices.”
Congress Passes and Biden Signs the CHIPS Act (State Science and Technology Institute – SSTI) Congress approved (and President Biden signed) the $50+ billion CHIPS Act which is designed to incentivize semiconductor manufacturing facilities, create a Regional Technology Hubs program, and authorize funding for many science-related agencies including new clean energy programs and additional funding authorized for the Manufacturing Extension Partnership (MEP) to $550 million by FY 2025 and to $250 million by FY 2027 for Manufacturing USA. These funding levels are authorized but Congress will still need to appropriate actual funding.
(Chart Source: Van Scoyoc Associates)
Workforce
Long COVID is Sidelining Millions of Workers from Their Jobs (NPR) Brookings estimates that 4 million full-time equivalent workers (2.4% of the working population) are out of work because of long COVID. The Biden administration has tried to address the issue by indicating long COVID should be treated as a disability under the Americans with Disabilities Act. While some employers are trying to accommodate, not all can afford to do so. And because long COVID is so new, it is difficult to know when an employee is improving and ready to adopt more normal working conditions.
U.S. Settles Claims Against Poultry Producers Over Worker Treatment (Reuters) U.S. poultry processers Cargill, Sanderson Farms, and Wayne Farms have agreed to pay over $84 million in restitution to workers harmed by information sharing designed to drive down compensation. Cargill Meat Solutions will pay $15 million, Sanderson will pay $38.3 million, and Wayne $31.5 million. Cargill denies allegations of information sharing. The Justice Department also reached a settlement with Cargill and Continental Grain who recently made a deal to buy Sanderson Farms. Sanderson will be combined with Wayne Farms, a Continental Grain subsidiary. The Justice Department settlement prevents the companies from lowering the base pay of chicken growers and from retaliating against growers who raise antitrust concerns with the government.
US Department of Labor Awards $121m In Apprenticeship Building America Grants to Expand, Diversify, Modernize Registered Apprenticeship Programs (U.S. Department of Labor) The DOL announced an award of more than $121 million in Apprenticeship Building America grants to strengthen and modernize Registered Apprenticeship programs. The department awarded more than $58 million of the total funding to grantees focusing on equity partnerships and pre-apprenticeship activities. The Apprenticeship Building America grant program advances the department’s efforts to expand and modernize Registered Apprenticeship by increasing the number of programs and apprentices, diversifying the industries that use Registered Apprenticeship and improving the access to and performance of Registered Apprenticeship Programs for underrepresented and underserved communities.
Finance & Incentives
DOE Announces $2.6 Billion Funding Opportunities for Carbon Capture, Storage and Transport Projects (JDSUPRA) The Department of Energy announced they will begin soliciting applications for funding for two programs from the Bipartisan Infrastructure Bill: The Carbon Capture Demonstration Projects Program and the Carbon Dioxide Transport/Front-End Engineering Design Program. The Carbon Capture Demonstration Projects Program will focus on projects that demonstrate substantial improvements in the efficiency, effectiveness, cost, and environmental performance of carbon capture technologies for power, industrial, and other commercial applications. The Carbon Dioxide Transport/Front-End Engineering Design Program seeks to fund Front-End Engineering Design (FEED) studies for regional carbon dioxide pipeline systems to safely transport CO2 from key sources to centralized locations.
Lynchburg EDA Selected to Receive $500K from EPA for Brownfield Redevelopment (NewsAdvance) Lynchburg’s Economic Development Authority has been again slotted to receive $500,000 in assessment grants from the Environmental Protection Agency. According to a news release, funding dedicated to the assessment of sites potentially affected by hazardous substances and petroleum will be used to conduct Phase I and Phase II environmental site assessments, cleanup and redevelopment planning and community engagement activities.
Blockchain Technology Company Growing HQ In Utah (Business Facilities) Financial innovation and liquidity provider tZERO Group, Inc. will invest over $2 million and create 80 new jobs at its Utah headquarters over the next eight years. The company offers institutional-grade solutions for issuers looking to digitize their capitalization table through blockchain technology and trade on a regulated alternative trading system. In support of its expansion in Utah, tZERO Group has been awarded a temporary, marginal tax reduction by the Utah Governor’s Office of Economic Opportunity (Go Utah). The post-performance corporate incentive is part of the Economic Development Tax Increment Financing (EDTIF) program.
The Bank Of London To Create 350 Jobs In North Carolina (Business Facilities) The Bank of London plans to expand its United States footprint by opening its US Global Platform & Services headquarters in Charlotte, NC. The project will create 350 new jobs by 2026. The world’s first purpose-built global clearing, agency, and transaction bank, The Bank of London is headquartered in London and has offices in New York and Belfast. New positions at the US Global Platform and Services division will include software development, compliance and risk, technology operations, infrastructure engineering and business operations. Mecklenburg and surrounding counties can expect an annual payroll impact of nearly $33 million when fully staffed.
The State Economic Development Executives (SEDE) Network engages in regular events throughout the year. State Economic Development.org lists these activities and offers an interactive forum for discussion among peers. The website is currently undergoing some minor reorganization including adding resources on how state and local economic development districts can align strategies and collaborate on activities.
The SEDE Steering Committee includes: Sandra Watson (AZ), Chair; Mike Preston (AR); Kurt Foreman (DE); Don Pierson (LA); Kevin McKinnon (MN); Christopher Chung (NC); Alicia Keyes (NM); Michael Brown (NV); Andrew Deye (OH); Sophorn Cheang (OR); Adriana Cruz (TX); Joan Goldstein (VT); Lisa Brown (WA) and Mike Graney (WV).
Leif Olson led the development of this Bulletin; for further questions on the content in this Bulletin or for information on the SEDE Network contact Bob Isaacson, CREC Senior Vice President, at bisaacson@crec.net.
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State Economic Development Bulletin – July 2022
<!–State Economic Development Bulletin
<!–<!–Headlines:
<!–<!–Economic Performance
- U.S. Economy Contracts in Q1; Outlook Murky as Unsold Goods Accumulate (Reuters)
- Unprecedented Policy Stimulus: How the U.S. Recovered from the COVID-19 Shock (IMF)
- U.S. Labor Market Still Tight as Job Openings Remain Elevated (Reuters)
Economic Outlook
- Will the U.S. Economy Avoid a Recession? (Economist Intelligence Unit)
- Recession Isn’t ‘Inevitable’ But Inflation Remains ‘Unacceptably High’: Janet Yellen (ABC News)
SEDE News
- SEDE Spotlight, Michael Brown, Nevada Governor’s Office of Economic Development
- SEDE Network Meeting Invitation Incentives Compliance Network Roundtable
- Summary of the SEDE Network Meeting, June 25th and 26th
Trade
- Russia-Ukraine War: Perspectives U.S. Exporters Need to Know (International Trade Administration)
- U.S., China Talk Trade, Supply Chains as Biden Weighs Tariff Cuts (Al Jazeera)
- CBP Announces Launch of Green Trade Strategy (U.S. Customs and Boarder Protection)
Industry Trends
- Nuclear Power Gets New Push in U.S., Winning Converts (New York Times)
- Explainer: What Drives Gasoline Prices? (Visual Capitalist)
Workforce
- Maryland Eliminates 4-Year Degree Requirement for Thousands of Jobs (Pew Charitable Trusts)
Finance and Incentives
- Arizona Invests $1 Billion to Expand Water Finance Authority (Water World)
- EDA Announces up to $35 Million in Funding for Economic Recovery Corps and Equity Investments (SSTI – State Science & Technology Institute)
- U.S. Department of Labor Awards $121M In Apprenticeship Grants (U.S. Department of Labor)
- Mayor of St. Louis Uses Survey to Prioritize ARPA Funding (Saint Louis Public Radio)
<!–<!–<!–<!–Economic Performance
<!–<!–U.S. Economy Contracts in Q1; Outlook Murky as Unsold Goods Accumulate (Reuters) GDP fell at a 1.6% annualized rate last quarter, the first time GDP growth has gone negative since the brief pandemic recession two years ago. The contraction was caused by lowered consumer spending, from 3.1% last month to a rate of 1.8%. However, it is highly unlikely that the U.S. is currently in recession as job growth, capital investment, and private-sector balance sheets all remain very strong.
<!–<!–How the U.S. Recovered from the COVID-19 Shock and Futures Challenges (IMF) Just over two years after the COVID-19 shock, the unemployment rate and other measures of labor force utilization have returned to end-2019 levels and output is close to its pre-pandemic trend. Rapid wage increases for lower income workers have helped family income levels as poverty fell to 9.1 percent in 2020 (from 11.8 percent in 2019), and there were even larger reductions in poverty for female-headed households, children, African Americans, and Hispanics. A total of 8.5 million net new jobs have been created since the end of 2020. However, inflation is taking its toll on consumers and higher prices are erasing nominal income gains. The U.S. will need to make long-run investments in productive capacity to eventually tame price rises.
<!–<!–U.S. Labor Market Still Tight as Job Openings Remain Elevated (Reuters) U.S. job openings dropped by 427,000 to 11.3 million in May, which was less than expected and points to a still tight labor market. This labor market could keep the Federal Reserve on an aggressive monetary policy path as it battles high inflation.
<!–<!–Economic Outlook
<!–<!–Will the U.S. Economy Avoid a Recession? (Economist Intelligence Unit) The Economist Intelligence Unit (EIU) predicts the U.S. will narrowly avoid a recession in 2023-2024. While inflation is high and the Federal Reserve has begun targeting higher rates, U.S. households maintain strong savings, the labor market remains tight, and nominal wages continue to increase. These indicators signal strong underlying economic activity, despite increased borrowing costs. The EIU notes three events which could force the U.S. into a recession: 1) another, more pronounced, jump in inflation, 2) an overly aggressive tightening by the Federal Reserve, and 3) a pronounced collapse in asset prices.
<!–<!–Recession Isn’t ‘Inevitable’ But Inflation Remains ‘Unacceptably High’: Janet Yellen (ABC News) President Biden’s Treasury Secretary, Janet Yellen explained that a recession is not inevitable. Despite historic inflation—exacerbated by Russia’s invasion of Ukraine—household balance sheets remain strong. The administration is working to reduce energy costs, specifically, by releasing oil from the strategic reserve and calling on major oil companies to lower prices. So far, these measures have done little to reduce energy price rises.
<!–<!–<!–<!–SEDE News
<!–<!–Michael Brown
Executive Director
Nevada Governor’s Office of Economic Development
<!–<!–SEDE Spotlight: Michael Brown is the Executive Director of the Nevada Governor’s Office of Economic Development, appointed by Governor Steve Sisolak on November 4, 2019. This is Mr. Brown’s second cabinet-level appointment in the Sisolak Administration as he previously served as the Director of the Department of Business & Industry. Previously, he led Barrick Gold of North America, the world’s largest gold mining company, as President and Vice President of U.S. Public Affairs. He also served in the Reagan Administration as Special Assistant to the Director of the United States Mint and the U.S. Mint’s Citizens Coinage Advisory Committee under U.S. Senator Harry Reid. Mr. Brown started his career in the Ohio House of Representatives, working for Representative William Batchelder. His dedication and passion have been recognized in many forms. In 2015, he received the Civitas Laurel award from the Foundation for an Independent Tomorrow and in 2016, the Latin Chamber of Commerce recognized him as a Señores of Distinction. In 2017, the Public Education Foundation recognized Mr. Brown as an Education Hero and in 2018 Lorain County Community College named him a Distinguished Alumnus. Currently, Mr. Brown serves as a board member for the Las Vegas Global Economic Alliance, Public Education Foundation, and Nevada Ballet Theatre.
<!–<!–Incentives Compliance Network Roundtable (SEDE Network) SEDE is excited to announce a webinar for economic development leaders and professionals engaged in incentive compliance and reporting. Participants will engage with each other about their work and have an open discussion about challenges and opportunities for the field. Ellen Harpel (Smart Incentives and CREC Senior Research Fellow) will facilitate the conversation. We expect this roundtable to be informal as we discuss topics that are top of mind for attendees, challenges you are facing, and future meeting topics. Registration is now open.
<!–<!–Summary of the SEDE Network Meeting: On June 25th and 26th, the SEDE network gathered in Washington D.C. to discuss current challenges and opportunities in their respective states and to share strategies to promote economic development. The meeting began with a conversation of hot topics including ARPA, labor shortages, supply chain challenges, and mega-site development. The network also discussed state and federal collaboration with Jasjit Singh (Executive Director of SelectUSA), Jessica Milano (Chief Program Officer of the Office of Recovery Programs with the U.S. Treasury), Alejandra Castillo (Assistant Secretary, Economic Development Administration), and Brent Parton (Acting Assistant Secretary of the Employment and Training Administration). The network also discussed workforce challenges, flexibility in changing times, infrastructure investment, and legislature relations. A more detailed summary of the SEDE Network meeting is available to members who log in to the SEDE website.
<!–<!–<!–<!–Trade
<!–<!–Russia-Ukraine War: Perspectives U.S. Exporters Need to Know (International Trade Administration) After Russia began its invasion of Ukraine, the U.S. imposed heavy, broad-based sanctions on the country. Although some companies have chosen to stay in Russia while suspending operations, others have found that the already challenging business environment in Russia has become increasingly unstable and unpredictable virtually overnight. Complicating matters further, Russia has threatened Western companies with retaliatory measures, including proposals to seize the assets of Western companies that decide to leave Russia. U.S. companies rethinking investment positions in Russia may want to consider industries ripe for growth in Central Asia. Kazakhstan and Uzbekistan are currently courting U.S. companies in the extractive industries, including engineering, mining, oil and gas, construction, and infrastructure sectors.
<!–<!–U.S., China Talk Trade, Supply Chains as Biden Weighs Tariff Cuts (Al Jazeera) In talks with Chinese Vice Premier Liu He, Treasury Secretary Janet Yellen raised concerns about China’s “unfair, non-market” economic policies and Russia’s war against Ukraine. China expressed concerns about US tariffs and sanctions against Chinese firms, the ministry said, adding that both sides had agreed to continue dialogue. The talks come as U.S. President Joe Biden weighs the possibility of easing tariffs on Chinese imports as part of efforts to control soaring prices.
<!–<!–CBP Announces Launch of Green Trade Strategy (U.S. Customs and Border Protection) The Green Trade Strategy is a framework to incentivize green trade, strengthen CBP’s environmental enforcement posture, accelerate green innovation, and improve climate resilience and resource efficiency. The Strategy presents four strategic goals to guide CBP’s trade-related environmental activities:
- Incentivize Green Trade – provide facilitation benefits and other incentives to promote environmentally-friendly trade practices and supply chains
- Strengthen Environmental Enforcement Posture – enforce against environmental bad actors to drive meaningful changes in trade practices
- Accelerate Green Innovation – promote and invest in the deployment of innovative, sustainable trade practices by government and private industry
- Improve Climate Resilience and Resource Efficiency – decrease the greenhouse gas emissions associated with CBP operations and strengthen the resilience and sustainability of trade infrastructure and assets.
<!–<!–<!–<!–Industry Trends
<!–<!–Nuclear Power Gets New Push in U.S., Winning Converts (New York Times) President Biden, who wants to eliminate greenhouse gas emissions from the power industry by 2035, said a Supreme Court ruling last week limiting federal regulatory authority would not halt such efforts. But the supply chain issues that have hurt wind and solar power development have presented the latest hurdle to reaching that goal. As a stopgap, the Biden administration has established a $6 billion fund to help troubled nuclear plant operators keep their reactors running and make them more economically competitive against cheaper resources like solar and wind power. A separate bipartisan measure introduced last year is aimed at preserving and expanding nuclear energy in the United States including the provision of financial assistance like tax credits. Industry leaders recognize that the age of new large-scale nuclear plants in the United States has passed, chiefly because of runaway costs. But many in the industry say smaller reactors that can be expanded over time offer promise of avoiding long delays and high cost. These reactors can be built in factories and delivered to approved sites. And the reactors’ high-temperature steam could also yield significant amounts of hydrogen, a carbon-free alternative fuel to natural gas.
<!–<!–Explainer: What Drives Gasoline Prices? (Visual Capitalist) Four factors determine the price of gasoline at the pump, with the cost of crude oil being the largest determinate:
- Cost of crude oil: 54%
- Taxes: 16%
- Distribution and marketing: 16%
- Refining costs: 14%
Despite being the world’s largest oil producer, the United States is a net importer of crude oil. Thus, the cost of gas in the U.S. is largely determined by how much the Organization of the Petroleum Exporting Countries (OPEC) decides to produce. OPEC was originally conceived to combat U.S. dominance in international oil markets.
<!–<!–<!–<!–Workforce
<!–<!–Maryland Eliminates Four Year Degree Requirement for Thousands of Government Jobs (Pew Charitable Trusts) Maryland has been unable to fill state jobs since the peak of the COVID-19 pandemic. So, officials decided to eliminate the four-year degree requirement for thousands of state jobs—from parole agents to information technology specialists to nursing assistants. Applicants will be able to substitute relevant work experience, military training or community college or other educational courses. This method has worked in other locations like Boulder, Colorado, where the County hired 13% more non-degreed people in 2021 compared with 2019 and saw a 10.2% increase in the number of employees of color hired in the same period.
<!–<!–<!–<!–Finance & Incentives
<!–<!–Arizona Invests $1 Billion to Expand Water Finance Authority (Water World) Arizona Governor Doug Ducey has signed legislation that makes an unprecedented $1 billion investment in water conservation, efficiency, reuse, and importing through the Water Infrastructure Finance Authority (WIFA). This bill will allow the state to make significant investments in water conservation and technologies such as desalination, as well as identify and develop new innovative long-term water sources. WIFA will administer additional funds for water augmentation, supply development, conservation projects, and more. Through the funds, WIFA will have the ability to acquire, store and sell new imported water as well as engage in private-public partnerships to help enable these projects.
<!–<!–EDA Announces up to $35 Million in Funding for Economic Recovery Corps and Equity Investments (SSTI – State Science & Technology Institute) In June, the Economic Development Administration announced new funding that includes two programs to strengthen equitable economic development: the Economic Recovery Corps and the Equity Impact Investments Program. The Economic Recovery Corps program will award one five-year grant between $20 million and $25 million to a network operator to build, launch and operate an economic development fellowship program in cooperation with EDA. The program would recruit and place at least 50-75 fellows in economic development organizations in underserved communities throughout the nation. The deadline to apply is Aug. 5, 2022. The Equity Impact Investments Program aims to provide capacity, knowledge and technical assistance to organizations that serve underrepresented populations. The deadline to apply is Aug. 5, 2022, with the award expected to be made by Sept. 30, 2022.
<!–<!–U.S. Department of Labor Awards $121M In Apprenticeship Grants (U.S. Department of Labor) “The funding of $121.7 million in Apprenticeship Building America grants reaffirms and advances the Biden-Harris administration’s commitment to strengthening and expanding Registered Apprenticeships,” said Secretary of Labor Marty Walsh. “The Apprenticeship Building America grants will develop new pathways to good-quality jobs and provide America’s workers with opportunities to access and succeed in those pathways; and the intentional focus on equity partnerships and pre-apprenticeship activities will create opportunities for underrepresented and underserved communities.” The Apprenticeship Building America grant program advances the department’s efforts to expand and modernize Registered Apprenticeship by increasing the number of programs and apprentices, diversifying the industries that use Registered Apprenticeship and improving the access to and performance of Registered Apprenticeship Programs for underrepresented and underserved communities.
<!–<!–Mayor of St. Louis Uses Survey to Prioritize ARPA Funding (St. Louis Public Radio) The City of St. Louis conducted a survey to gauge local priorities on spending ARPA funds. The “ARPA Needs Survey” drew 4,215 responses, more than 77% of them from city residents. Respondents were asked to indicate their top three priorities and then drill down on how they would spend the money in each of seven broad categories. The mayor acknowledged the survey respondents were more likely to be white (67% self-identified as such) and female (58%) than the city as a whole. But the Mayor said she feels confident she’s not getting a skewed perspective. “We also did town halls and round tables,” she noted. The town halls alone drew more than 200 people.
<!–<!–<!–<!–The State Economic Development Executives (SEDE) Network engages in regular events throughout the year. State Economic Development.org lists these activities and offers an interactive forum for discussion among peers. The website is currently undergoing some minor reorganization including adding resources on how state and local economic development districts can align strategies and collaborate on activities.
<!–<!–The SEDE Steering Committee includes: Sandra Watson (AZ), Chair; Mike Preston (AR); Kurt Foreman (DE); Don Pierson (LA); Kevin McKinnon (MN); Christopher Chung (NC); Alicia Keyes (NM); Michael Brown (NV); Andrew Deye (OH); Sophorn Cheang (OR); Adriana Cruz (TX); Joan Goldstein (VT); Lisa Brown (WA) and Mike Graney (WV).
<!–<!–<!–<!–Leif Olson led the development of this Bulletin; for further questions on the content in this Bulletin or for information on the SEDE Network contact Bob Isaacson, CREC Senior Vice President, at bisaacson@crec.net.
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State Economic Development Bulletin – June 2022
<!–State Economic Development Bulletin
<!–<!–Headlines:
<!–<!–Economic Performance
- Dollar Higher After U.S. Job Growth Tops Expectations (Reuters)
- Federal Reserve Issues Economic Well-Being of U.S. Households 2021 Report (Federal Reserve)
- A 21-Year Case Study into Unemployment Trends (Bureau of Labor Statistics)
Economic Outlook
- The Budget and Economic Outlook: 2022 to 2032 (Congressional Budget Office)
SEDE News
Trade
- Taiwan Says to Hold More Trade Talks with United States (Reuters)
- U.S. ‘Actively Considering’ China Trade Tariffs Move (South China Post)
Industry Trends
- U.S. Manufacturing Sector Regains Speed in May (Reuters)
- $202.5 Billion Global Market for Solar Cells and Modules by 2026 (Cision)
- Automakers, Battery Companies, and Lithium Producers Unite in U.S. Battery Push (Axios)
- In Case You Missed It: Assessing the Competitiveness of North America’s States: The North American Subnational Innovation Competitiveness Index (ITIF)
Workforce
- Robot Orders Increase as Employers Seek Relief from Labor Shortage (Business Insider)
- Tyson Foods’ Workforce Program Lets Workers Earn While They Learn (National Association of Manufacturers)
- U.S. Workforce Adds 390,000 Jobs in May as Americans Get a Bump in Pay (WPTV)
- Pay Transparency Laws Raise Women’s Salaries (PEW Charitable Trusts)
Finance and Incentives
- Fiscal Road to Recovery Brief Series (National Conference of State Legislatures)
- Solar Energy Facility Investment in Whitefield County, GA Will Create 470 Jobs (Valdosta Today)
- Urban Parks Vie for Interior Department Construction, Renovation Funds (SmartCities Dive)
<!–<!–<!–<!–Economic Performance
<!–<!–Dollar Higher After U.S. Job Growth Tops Expectations (Reuters) The U.S. Dollar Currency Index tracked 0.4% higher against a basket of 6 other currencies. The Dollar’s rise seemed to be buoyed by strong nonfarm payroll numbers in May—which also implies additional interest rate hikes in the second half of the year. A stronger Dollar means American consumers benefit from relatively cheaper import-goods while American exporters suffer as their goods become relatively more expensive.
<!–<!–Federal Reserve Issues Economic Well-Being of U.S. Households 2021 Report (Federal Reserve) The Federal Reserve Board issued its Economic Well-Being of U.S. Households in 2021 report, which examines the financial lives of U.S. adults and their families. The report indicates that self-reported financial well-being reached its highest level since the report began in 2013. Seventy-eight percent of adults reported either doing okay or living comfortably, financially. Financial well-being also increased among all racial and ethnic groups measured in the survey, with a particularly large increase among Hispanic adults. The share of adults who reported that they would cover a $400 emergency expense using cash or its equivalent similarly increased to the highest level since the start of the survey—68 percent—and was up from 50 percent when the survey began in 2013. Eleven percent of adults could not pay the expense by any method.
<!–<!–A 21-Year Case Study into Unemployment Trends (Bureau of Labor Statistics) In this edition of Beyond the Numbers the BLS showcases its “unemployed people per job openings” ratio. In December 2021, job openings topped 11.4 million. This was the highest value recorded in a month since data collection on job openings began in December 2000 and was the sixth time in 2021 that the number of monthly job openings exceeded 10.0 million.
<!–<!–<!–<!–In contrast, the number of unemployed people numbered 6.3 million. At the national level, the unemployed people per job openings ratio was 0.6 in December 2021, compared with 1.6 a year earlier. A ratio of 1.0 means there is a job available for every unemployed person. Ratios less than 1.0 signal tighter labor markets.
<!–<!–Economic Outlook
<!–<!–The Budget and Economic Outlook: 2022 to 2032 (Congressional Budget Office) The CBO regularly publishes baseline projections of what the federal budget and the economy will look like in the current year and over the next 10 years if current laws governing taxes and spending remain unchanged. Here are the highlights:
- The deficit is set to shrink to $1 trillion in 2022 from $2.8 trillion last year
- Outlays are projected to average 23 percent of GDP, which is historically high and boosted by interest costs and higher spending on benefits for the elderly
- Real GDP is projected to grow by 3.1 percent in 2022, and the unemployment rate to average 3.8 percent. After 2022, GDP growth should slow to an average of 1.6 percent between 2023 and 2026, and inflationary pressures should ease to 2.3 percent (PCE) in 2023
<!–<!–<!–<!–SEDE News
<!–<!–Stefan Pryor Resigns to Run for State Treasurer After more than seven years as Rhode Island’s Secretary of Commerce, Stefan Pryor has announced that he is running to be Rhode Island’s State Treasurer! In a note to the SEDE Network, the incoming chair Sandra Watson (President & CEO, Arizona Commerce Authority) noted that SEDE has been very fortunate to benefit from Stefan’s leadership and his dedication to the effort to build our Network as the coalition for peer conversation among state economic development leaders nationwide. During the pandemic, Stefan did an exemplary job convening weekly SEDE calls and securing participation from Secretary Raimondo as well as other White House advisors to preview the presidential transition. We are all truly grateful for his strong leadership as our Chair over the past several years, and we wish him all the best as he runs his race for State Treasurer!
<!–<!–Sandra Watson
President & CEO
Arizona Commerce Authority
<!–<!–Sandra Watson Honored to Assume SEDE Chair Position With Stefan Pryor’s departure to run for State Treasurer of Rhode Island, Sandra Watson announced that she was honored to step into the role of Chair and continue to be a strong supporter of the SEDE Network. Ms. Watson brings more than 28 years of economic development leadership experience to SEDE. She and her teams have successfully attracted to Arizona more than 1,000 companies that have committed to invest nearly $45 billion in capital and create more than 160,000 jobs. During her tenure with the Arizona Department of Commerce, and now the Arizona Commerce Authority (ACA), Ms. Watson served in multiple positions with increasing responsibilities and results. She has led Business Attraction, Business Development, Innovation & Technology, Workforce and Marketing divisions. She served as the Executive Director on the Governor’s Council of Innovation & Technology in advancing the state’s Innovation and Technology roadmap. She currently is the CEO and President of the ACA. Ms. Watson is a collaborative leader who excels in strategic thinking and relationship building.
<!–<!–<!–<!–Trade
<!–<!–Taiwan Holds Trade Talks with United States (Reuters) John Deng, Taiwan’s chief trade negotiator held trade talks with the U.S. on June 1st after being excluded from a major new U.S. economic plan for the Asia Pacific region. Taiwan expressed its desire to join the Indo-Pacific Economic Framework or IPEF in talks with Sarah Bianchi, one of U.S. Trade Representative Katherine Tai’s deputies, on Taiwan-U.S. trade issues.
<!–<!–U.S. ‘Actively Considering’ China Trade Tariffs Move (South China Post) Deputy U.S. Treasury secretary Wally Adeyemo said the U.S. is considering reversing Trump-era tariffs on China to reduce domestic price pressures. The administration is weighing how tariff relief might affect U.S. firms’ export competitiveness. Further, the U.S. must balance short term price-relief against the long-term need to address China’s unfair trade practices.
<!–<!–<!–<!–Industry Trends
<!–<!–U.S. Manufacturing Sector Regains Speed in May (Reuters) The Institute for Supply Management (ISM) reported that their index of manufacturing activity increased to 56.1 in May from 55.4 in April. Any reading above 50 means the U.S. manufacturing sector is expanding. Despite its growth, manufacturing still faces major hurdles including an ongoing labor shortage and a demand structure shifting away from consumer goods, toward services.
<!–<!–$127.7 Billion Global Market for Solar Cells and Modules by 2026 (Cision) A new study published by Global Industry Analytics (GIA) predicts a $127.7 billion global market for solar by 2026. The study analyzes new opportunities and challenges to the solar sector in a marketplace which has been transformed by the COVID-19 pandemic.
<!–<!–Automakers, Battery Companies, and Lithium Producers Unite in U.S. Battery Push (Axios) Major auto and battery companies are joining together to advocate for stronger federal support to build a U.S. battery supply chain. The new group will be called the Coalition for American Battery Independence (CABI) and will be run through the lobbying firm Boundary Stone Partners. Today, China produces three-fourths of lithium-ion batteries and owns over half of all lithium, cobalt, and graphite processing and refining capacity.
<!–<!–Assessing the Competitiveness of North America’s States: The North American Subnational Innovation Competitiveness Index (ITIF) On June 21, 2022, the Information Technology and Innovation Foundation (ITIF) held a webinar discussing the results of their new report, the North American Subnational Innovation Competitiveness Index. The report found that Canada and the U.S. excelled in high-skill, capital-intense areas, where Mexico found its competitive advantage in relatively low labor costs. Further, Chihuahua, Baja California, and Tamaulipas lead all other North American states in exports of high-tech products relative to GDP while U.S. states dominated in R&D intensity, and British Columbia and Ontario led all other states in levels of Foreign Direct Investment as share of GDP. Ultimately, the report calls for higher R&D tax incentives, greater coordination of supply chains, harmonization of USMCA digital trade rules, and better aligned economic data availability between the North American states.
<!–<!–<!–<!–Workforce
<!–<!–Robot Orders Increase as Employers Seek Relief from Labor Shortage (Business Insider) Robot orders increased by 40% in the first quarter of 2022 and were up by 21% overall in 2021. Employers are looking for ways to meet demand with fewer workers in the tightest labor market since the second world war.
<!–<!–U.S. Workforce Adds 390,000 Jobs in May as Americans Get a Bump in Pay (WPTV) The U.S. economy added 390,000 jobs in May, despite high inflation and rising interest rates. Businesses in many industries are struggling to find enough workers to meet demand spurred on by rising pay and unprecedented household savings balances. Fed rate hikes are expected to eventually cool the economy, but the May numbers indicate increased rates have not yet had a dampening effect.
<!–<!–Pay Transparency Laws Raise Women’s Salaries (PEW Charitable Trusts) A West Virginia bill would require employers to publish salaries when advertising jobs and would prohibit companies from retaliating against workers who discuss their pay with colleagues. Studies show that salary transparency—coupled with laws prohibiting companies from asking an applicant about their current or previous pay—can narrow the gender pay gap. But research also shows that salary transparency tends to lower men’s salaries even as it raises those of women—and might lower salaries overall. A 2021 from Harvard Business School showed that making pay scales public reduces “the individual bargaining power of workers, leading to lower average wages.” The study found the wages went down by 2%, mostly by lowering men’s pay. The study used salary data from the American Community Survey and compared overall salaries in states where pay transparency exists to those where it doesn’t.
<!–<!–<!–<!–Finance & Incentives
<!–<!–Fiscal Road to Recovery Brief Series (National Conference of State Legislatures) The Fiscal Road to Recovery series examines the allocation priorities of the American Rescue Plan Act of 2021. Some highlights include:
- Thirty states and territories invested roughly $6.3 billion in Coronavirus State Fiscal Recovery Funds (CSFRF) towards economic relief and development
- Twenty-eight states and territories invested $7.3 billion of Coronavirus State Fiscal Recovery Funds (CSFRF) for education, including $4.4 billion for K-12 and $2.9 billion for higher education
- at least 40 states and territories have invested nearly $12.4 billion of state fiscal recovery funds towards health-related priorities
- Forty states and territories have invested roughly $31.6 billion in Coronavirus State Fiscal Recovery Funds (CSFRF) towards water, sewer, broadband and general infrastructure
<!–<!–Solar Energy Facility Investment in Whitefield County, GA Will Create 470 Jobs (Valdosta Today) Georgia Governor Brian Kemp announced that Qcells, a renewable energy company, will invest $171 million in a new solar module manufacturing facility in Dalton, Georgia — which is slated to create 470 new jobs. Construction of the Qcell facility is expected to begin in fall 2022 and it should be operational in early 2023.
<!–<!–Urban Parks Vie for Interior Department Construction, Renovation Funds (SmartCities Dive) In early May, the Secretary of the interior Deb Haaland announced that $61.1 million in grant funding was made newly available for 27 urban parks and trails projects in 26 cities across the U.S. The funding comes from the Outdoor Recreation Legacy Partnership, a National Park Service grant program that uses federal funds for underserved communities to create and improve outdoor recreation opportunities.
<!–<!–<!–<!–<!–<!–<!–<!–The State Economic Development Executives (SEDE) Network engages in regular events throughout the year. State Economic Development.org lists these activities and offers an interactive forum for discussion among peers. The website is currently undergoing some minor reorganization including adding resources on how state and local economic development districts can align strategies and collaborate on activities.
<!–<!–The SEDE Steering Committee includes: Sandra Watson (AZ), Chair; Mike Preston (AR); Kurt Foreman (DE); Don Pierson (LA); Kevin McKinnon (MN); Chris Chung (NC); Alicia Keyes (NM); Michael Brown (NV); Andrew Deye (OH); Adriana Cruz (TX); Joan Goldstein (VT); Mike Graney (WV). Leif Olson led the development of this Bulletin; for questions on the content in this Bulletin or for information on the SEDE Network contact Bob Isaacson, CREC Senior Vice President.
<!–<!–For further questions on the content in this Bulletin or for information on the SEDE Network contact Bob Isaacson, CREC Senior Vice President, at bisaacson@crec.net.
<!– -
State Economic Development Bulletin – May 2022
<!–State Economic Development Bulletin
<!–<!–Headlines:
<!–<!–SEDE News
- SEDE Hosts June Meeting for Top Executives
- Spotlight: Sophorn Cheang, Director of Business Oregon
Economic Performance
- The U.S. Economy Shrank in the First Quarter (CNN Business)
- U.S. Economy Still ‘Very, Very Strong’ (Reuters)
- Inflation Persistence: How Much Is There and Where Is It Coming From? (New York Fed)
Economic Outlook
- As Stocks Fall, Economic Fears Rise, Along With Inflation (New York Times)
- The Global Stagflation Shock of 2022: How Bad Could it Get? (Financial Times, subscription required)
Trade
- U.S. Trade Deficit in Goods Jumps to Record $125.3 Billion Due to Imports and Inflation (MarketWatch)
- U.S. Trade Chief Signals China Tariff Relief an Option as Prices Soar (South China Morning Post)
- EXIM To Provide Competitive Financing for U.S. Manufacturers (Mondaq)
Industry Trends
- E-Commerce Sales Surged During the Pandemic (Census Bureau)
- Competing for Manufacturing Talent (Deloitte)
Workforce
- How the “Amazon Way” is Transforming the Future of Work (Vox)
- A Decline of Women in the Workforce (U.S. Chamber of Commerce)
- Nebraska Factory Gets Influx of Workers by Offering Flexible Hours, High Wages (CNN)
Finance and Incentives
- States Risk Leaving Broadband Money on the Table (Pew Charitable Trusts)
- Rivian Gets $1.5B in Incentives to Build Northeast Georgia Plant (Online Athens)
- Connecticut Lawmakers OK $75M in Tax Incentives for Sikorsky (U.S. News)
<!–<!–<!–<!–SEDE News
<!–<!–SEDE Hosts June Meeting for Top Executives. After nearly three years, the State Economic Development Executives (SEDE) Network is hosting an in-person meeting in conjunction with the SelectUSA Investment Summit at National Harbor near Washington, DC. The SEDE meetings will begin the afternoon of Saturday, June 25th and conclude at 3 pm on Sunday June 26th, in time for participants to fully engage in the Summit’s opening events. The agenda will include presentations by federal partners, discussions of hot issues facing states and many opportunities for networking among the state economic development commissioners, secretaries and executive directors or their top deputy. Invitations have been sent to the SEDE Network!
<!–<!–Sophorn Cheang
Director
Business Oregon
<!–<!–Spotlight: Sophorn Cheang, Director of Business Oregon Sophorn Cheang (so-POHRN j-ay-ng) took the reins as Director of Business Oregon in March 2021. Prior to that, Cheang served as the Director of the Office of Diversity, Equity, and Inclusion for Governor Kate Brown since 2018. In this role she oversaw the development of state business policies to eliminate bias and barriers and provided economic opportunities for all Oregon businesses through equity practices in state procurement and community economic development. Cheang also co-coordinated the Governor’s Racial Justice Council. Prior to her work with the Governor’s Office, Cheang served as Senior Community Development Manager and Director of the Asian Family Center for the Immigrant and Refugee Community Organization, where she developed and directed culturally specific programs and services for immigrants and refugees; mobilized diverse community leaders across the state to address social and racial injustices; and performed other strategic planning and advocacy work. Cheang has an MBA from Willamette University and a bachelor’s degree in finance from Portland State University.
<!–<!–<!–<!–Economic Performance
<!–<!–The U.S. Economy Shrank in the First Quarter (CNN Business) The US Bureau of Economic Analysis estimates GDP decreased at an annualized rate of 1.4% between January and March. This is the “advanced estimate” and a more complete estimate including additional data will be available at the end of May. The GDP contraction was driven by inventory draw-down, the increased trade deficit, and receding federal funds. In times of uncertainty, inventories increase (called inventory investment) as firms seek to forestall future delays. When supply chain issues resolve, firms allow their stock of inventory to shrink by slowing inventory purchases. The federal government also slowed purchases, specifically of defense-related intermediate goods and services. A decrease in government consumption decreases overall GDP.
<!–<!–U.S. Economy Still ‘Very, Very Strong’ (Reuters) Despite an annualized GDP contraction of 1.4% in the first quarter, underlying economic conditions remain strong. Household balance sheets, household consumption, and business investment (other than inventory) are all quite robust. Further, the unemployment rate remains quite low at 3.6% and PCE or “core” inflation is expected to slow to 5.3% from 5.4% in February.
<!–<!–Inflation Persistence: How Much Is There and Where Is It Coming From? (New York Fed) When inflation first reemerged in 2020, the Federal Reserve seemed confident it would quickly subside. Instead, inflation has remained and even expanded into the wider economy. The New York Federal Reserve distinguishes between two types of inflation: “Transitory” inflation, which is inflation caused by idiosyncratic changes or shocks and “trend” inflation, which is common across multiple sectors, and which reflects macro-level effects. The New York Fed found that “transitory” and “trend” inflation have both contributed to higher prices, but that “trend” inflation took over in the fall of 2021 and drives current price growth.
<!–<!–<!–<!–Economic Outlook
<!–<!–As Stocks Fall, Economic Fears Rise, Along With Inflation (New York Times) April was the worst month for Wall Street since the March 2020 coronavirus shock. The S&P 500 fell 8.8% in April, indicating a wide belief that the “economy is about to take a hit.” Investors are concerned about high inflation, war in Europe, and looming rate hikes by the Federal Reserve.
<!–<!–The Global Stagflation Shock of 2022: How Bad Could it Get? (Financial Times, subscription required) Initial predictions of post-COVID economic growth were optimistic. Now, hope for the new “roaring twenties” is dwindling as expansion fails to meet expectations. Further, the Russian attack on Ukraine has thrown fuel on the already blazing fire of commodity prices — particularly oil. For many, price rises, oil shocks, and middling economic growth trigger sour memories of the 1970s. However, inflation is not as high as it was following the 1973 OPEC embargo and growth is stronger overall.
Perhaps most importantly, central banks around the world are far more independent than they were 50 years ago, allowing them to fight inflation without political influence. While growth predictions may have been quixotic, nations have better tools to fight inflation than they did when stagflation first appeared.
<!–<!–<!–<!–Trade
<!–<!–U.S. Trade Deficit in Goods Jumps to Record $125.3 Billion Due to Imports and Inflation (MarketWatch) The US trade deficit in goods (the difference between total import and total exports) rose by 17.8% in March, according to an initial estimate by the Census Bureau. The deficit indicates deferred-consumption pressure and healthy consumer demand for goods. It also indicates that the congestion at America’s ports may be easing slightly. Further, because inflation is decreasing the value of the dollar relative to foreign currency, many imported goods are now more expensive for Americans to buy—which contributes to the widening deficit.
<!–<!–U.S. Trade Chief Signals China Tariff Relief an Option as Prices Soar (South China Morning Post) Biden’s Trade Representative Katherine Tai explained that, while “all tools are on the table,” tariff relief would need to be viewed in the wider context of available tools to combat inflation. Tai said that “…the US needs to make sure that the tools it deploys to meet the short-term challenge of inflation are effective and do not undermine the medium-term goal of changing the relationship with China.” Tai also dismissed a Peterson Institute study which estimated that eliminating a wide selection of tariffs “could reduce inflation by 1.3 percentage points.”
<!–<!–EXIM To Provide Competitive Financing for U.S. Manufacturers (Mondaq) The Export-Import Bank of the United States (EXIM) assists American exporters using loans, loan guarantees, and insurance. For the first time, the EXIM will make its financing programs available to export-oriented manufacturers. Financing will be subject to EXIM’s due diligence standards and other financing requirements including environmental and social criteria, job numbers supported by financing, and a minimum “export nexus.” The “export nexus” is the percentage of a project’s production (i.e., goods produced at the facility) or capacity (i.e., percent of export traffic at a port) that is used for export.
<!–<!–<!–<!–Industry Trends
<!–<!–E-Commerce Sales Surged During the Pandemic (Census Bureau)
In 2020, e-commerce sales increased by $244.2 billion or 43%. The coronavirus pandemic shifted consumer behavior and firms responded by offering a broader range of online consumption options. While retail e-commerce grew, sales in some industries declined from 2019 to 2020 as pandemic-related lockdowns kept people at home, working, shopping, and even studying online.
<!–<!–For example:
- Sales at gasoline stations fell from $513.5 billion in 2019 to $428.1 billion in 2020.
- Sales at bookstores dropped from $8.9 billion in 2019 to $6.2 billion in 2020.
- Sales at clothing and clothing accessories stores slipped from $269.5 billion in 2019 to $201.4 billion in 2020.
<!–<!–<!–<!–Competing for Manufacturing Talent (Deloitte) There is good news to report in the Deloitte and The Manufacturing Institute 2022 Manufacturing Perception Study. Compared to the 2017 study, significantly more respondents believe that manufacturing jobs are innovative, and more respondents are likely to encourage their child to pursue a career in the industry. Further, the pandemic has led to a new awareness of the critical nature of manufacturing in the United States and beyond. Now, manufacturers have an opportunity in the wake of the pandemic to educate people unfamiliar with the benefits of a manufacturing career, while continuing to retain their post pandemic workforce.
<!–<!–<!–<!–Workforce
<!–<!–How the “Amazon Way” is Transforming the Future of Work (Vox) Amazon’s immense success is forcing entire industries to adopt leaner labor practices across the country. To compete with Amazon, firms seek to streamline worker performance and increase productivity. While this “consumer obsession” is good for patrons, it can harm workers. As Amazon forces a new national work culture, labor advocates are concerned about arduous physical demands and invasive surveillance practices. Workers are seeking their own solution. In April, an Amazon warehouse in New York became the first in the US to successfully vote to unionize. This may force the company to reevaluate its labor practices. In his last shareholder letter as CEO in 2021, Jeff Bezos wrote that the company needed “to do a better job for our employees.”
<!–<!–A Decline of Women in the Workforce (U.S. Chamber of Commerce) Both men and women suffered a 3% drop in labor force participation at the height of the pandemic. But more than two years later, men have returned to work at a higher rate than women. Today, women’s labor force participation is still a full percentage point lower than it was pre-pandemic, meaning an estimated one million women are missing from the labor force. Many women remain out of the workforce because their jobs were more vulnerable to layoffs during the pandemic and/or a lack of childcare forced them to resign. As the pandemic begins to recede, families are increasingly relying on one income.
<!–<!–Nebraska Factory Gets Influx of Workers by Offering Flexible Hours, High Wages (CNN) A Kawasaki manufacturing plant in Lincoln, Nebraska is offering 9am to 2pm shifts paying $19 per hour with a retirement package. The tight labor market is forcing companies like Kawasaki to rethink their labor practices. Kawasaki was struggling to hire workers, so they spoke with the local community and decided to post shifts that mirrored the school day—giving parents the ability to work and care for their children after school. Experts indicate that the low unemployment rate and strong consumer demand have given workers more power to demand better working conditions. The question now is: Will it last?
<!–<!–<!–<!–Finance & Incentives
<!–<!–States Risk Leaving Broadband Money on the Table (Pew Charitable Trusts) A year after Congress passed the American Rescue Plan Act (ARPA), only 24 states have confirmed plans to use billions in federal money for broadband expansion. State legislatures are opting not to use ARPA because they are waiting on other, potentially larger pots of federal money that may be months away. Namely, states are waiting for the Infrastructure Investment and Jobs Act (IIJA) which allocates more money directly to broadband. However, IIJA also has a more restrictive definition of “unserved households” which could make broadband expansion plodding and inefficient. On the other hand, ARPA, through the Capital Project Fund (CPF) institutes a 100 Mbps-up/20 Mbps-down wireline requirement, meaning more households are eligible for help. Technically, states have until 2024 to appropriate CPF funds. But with more than a dozen state legislatures already out of session for 2022 and some not even convening this year, states that have not yet elected to use CPF for broadband should look to do so in 2023.
<!–<!–Rivian Gets $1.5B in Incentives to Build Northeast Georgia Plant (Online Athens) Electric vehicle startup Rivian committed to a $5 billion manufacturing plant east of Atlanta in exchange for a $1.5 billion incentive package, a 25-year no-cost lease, and $198.1 million in site and road improvements on 1,978 acres. Georgia’s Commissioner of Economic Development, Pat Wilson, explained that the 7,500 jobs Rivian will create when the plant is fully built could generate an annual payroll of $420 million, or $10.5 billion over 25 years, more than justifying the $1.5 billion in incentives.
<!–<!–Connecticut Lawmakers OK $75M in Tax Incentives for Sikorsky (U.S. News) Lawmakers in Connecticut approved a bill that will provide up to $75 million in tax incentives to Sikorsky, a helicopter company and subsidiary of Lockheed Martin. If the bill is signed into law, Sikorsky will keep its headquarters in Stratford, Connecticut for the next 20 years. The headquarters is estimated to generate $5 billion in tax revenue for the Connecticut economy.
<!–<!–<!–<!–<!–<!–<!–<!–The State Economic Development Executives (SEDE) Network engages in regular events throughout the year. State Economic Development.org lists these activities and offers an interactive forum for discussion among peers. The website is currently undergoing some minor reorganization including adding resources on how state and local economic development districts can align strategies and collaborate on activities.
<!–<!–The State Economic Development Executives (SEDE) Network Steering Committee includes: Stefan Pryor (RI), Chair; Sandra Watson (AZ), Vice Chair; Mike Preston (AR); Kurt Foreman (DE); Don Pierson (LA); Kevin McKinnon (MN); Chris Chung (NC); Alicia Keyes (NM); Michael Brown (NV); Andrew Deye (OH); Sophorn Cheang (OR); Adriana Cruz (TX); Joan Goldstein (VT); Lisa Brown (WA); Mike Graney (WV).
<!–<!–For further questions on the content in this Bulletin or for information on the SEDE Network contact Bob Isaacson, CREC Senior Vice President, at bisaacson@crec.net.
<!– -
State Economic Development Bulletin – April 2022
<!–State Economic Development Bulletin
<!–<!–Headlines:
<!–<!–Economic Performance
- U.S. Economy Not Letting War, Pandemic Get in the Way of a Good Time (Reuters)
- Widespread Growth in Gross Domestic Product (US Bureau of Economic Analysis)
- Businesses Hampered by Absenteeism (Federal Reserve Bank of New York)
Economic Outlook
SEDE News
- Incentives Roundtable: New Findings on Remote Worker Attraction Programs
- Diversity, Equity, and Inclusion in the Mfg. Sector: A Briefing From a Practitioner and Policy Lens
- SEDE Incentives Compliance Workshop
- SEDE Hosts Meeting for Top Executives
Trade
- U.S. Current-Account Deficit Widens in 2021 (US Bureau of Economic Analysis)
- North American Transborder Freight Value Nears $114 Billion (U.S. Bureau of Transportation Statistics)
Workforce
- Telework During the COVID-19 Pandemic (Bureau of Labor Statistics)
- The New Geography of Remote Work (Upwork)
- The Future of Work in 2022 and Beyond (Forbes)
Finance and Incentives
- Battery Manufacturer to Employ Thousands in Arizona Expansion (The Center Square)
- Indiana Announces $189 Million in Broadband Grants (IPB News)
<!–<!–<!–<!–Economic Performance
<!–<!–U.S. Economy Not Letting War, Pandemic Get in the Way of a Good Time (Reuters) Fear that the war in Ukraine would tilt the U.S. economy towards a 1970s-style bout of stagflation has given way to signs that Americans plan to keep traveling, returning to restaurants, and continuing a steady if still incomplete return to “normal.” The data below indicates that Americans are eating at home less and spending more on restaurants, travel, and recreation – despite the war in Europe and ongoing pandemic.
<!–<!–<!–<!–The job market provided similar news. The latest nonfarm payrolls report released Friday showed employers added 431,000 jobs in March and the unemployment rate fell to 3.6%, continuing a strong run of hiring that has left key aspects of the U.S. labor market “little different” from where they were before the pandemic, the Bureau of Labor Statistics reported.
<!–<!–Widespread Growth in Gross Domestic Product (US Bureau of Economic Analysis) Real gross domestic product (GDP) increased in 47 states and the District of Columbia in the fourth quarter of 2021, as real GDP for the nation increased at an annual rate of 6.9 percent. The percent change in real GDP in the fourth quarter ranged from 10.1 percent in Texas to –2.3 percent in Iowa. Information services; professional, scientific, and technical services; and real estate and rental and leasing were the leading contributors to the increase in real GDP nationally.
<!–<!–<!–<!–Businesses Hampered by Absenteeism (Federal Reserve Bank of New York) With the Omicron variant of COVID-19 surging across the region in December and into January, the Federal Reserve Bank of New York queried businesses on the degree of absenteeism they were seeing in January. Somewhat over half of service firms and more than three in five manufacturers characterized absenteeism as unusually high. When asked specifically what percentage of staff had at least one day of unscheduled absence this January, and what the comparable percentage was in a typical (pre-pandemic) January, both manufacturers and service firms reported the average incidence to be roughly 12 percent three months ago versus about 5 percent in a typical January.
<!–<!–<!–<!–Economic Outlook
<!–<!–U.S. Services Sector Regains Momentum; Inflation Clouds Outlook (Reuters) U.S. services industry activity picked up in March, boosted by the rollback of pandemic restrictions, but higher prices for fuel and other commodities because of Russia’s war against Ukraine are creating uncertainty for many businesses. The Institute for Supply Management’s survey on April 5th showed capacity constraints and inflation remained major challenges, though the labor crunch had eased. The improvement in labor supply was confirmed by March’s employment report on Friday, which showed nonfarm payrolls increased by 431,000 jobs last month.
<!–<!–<!–<!–SEDE News
<!–<!–Mike Graney
Deputy Secretary, West Virginia Department of Commerce
<!–<!–Spotlight: Mike Graney – Deputy Secretary, West Virginia Department of Commerce In 2021, Michael Graney was appointed to Deputy Secretary of Commerce. He continues his work and passion regarding economic development in West Virginia, with the mission of diversifying the state’s economy and job creation. Michael’s past work included an appointment to the post of Executive Director of the West Virginia Development Office by Governor Jim Justice in 2018. He earned his MBA from the University of Virginia Darden Graduate School of Business in 1990 which he used during much of his professional career in executive or co-founder positions with companies related to the petroleum industry. In those roles, he was responsible for managing different facets of business – acquisition, retail operations and environmental compliance – and included serving as president of One Stop, a chain of convenience stores based in West Virginia from 2001 to 2015. Michael has been a member of numerous oil industry professional organizations and has been active in many community and civic service groups.
<!–<!–- Incentives Roundtable: New Findings on Remote Worker Attraction Programs This April 5th roundtable featured state and local practitioners discussing two of the longest-standing remote worker attraction programs: the Vermont New Remote Workers Grant Program and Tulsa Remote, both launched in 2018. As early adopters of remote worker incentives, both places offer important lessons to communities that offer or are considering offering incentives to attract remote workers. Please use link above to access the full slide deck and recording.
- Diversity, Equity, and Inclusion in the Mfg. Sector: A Briefing From a Practitioner and Policy Lens This March 30th webinar featured representatives from the American Manufacturing Communities Collaborative, The Century Foundation, and the Urban Manufacturing Alliance during a panel discussion on infusing diversity, equity, and inclusion into the American manufacturing sector. Please use link above to access the recording and full slide deck, including information on accessing a DEI Toolkit produced by stakeholders in the Pittsburgh region.
<!–<!–SEDE Incentives Workshop The highly regarded workshop on managing business incentive compliance will be offered again for state agency staff on June 13, 2022, in conjunction with the C2ER Annual Conference in Columbus, OH. There is no fee for participants who are registered for the conference. This Incentives Compliance Workshop is designed for economic development staff and leaders engaged in incentive compliance management and reporting roles within their organizations. Our partner, Ellen Harpel of Smart Incentives, will be the lead instructor for the course. Past attendees have highlighted the interactive content and noted that they learned much from the course materials and their colleagues. Questions? Please contact Bob Isaacson.
<!–<!–SEDE Hosts Meeting for Top Executives After nearly three years, the State Economic Development Executives (SEDE) Network is hosting an in-person meeting in conjunction with the SelectUSA Investment Summit. The SEDE meetings will begin the afternoon of Saturday, June 25th and conclude at 3 pm on Sunday June 26th, in time for participants to fully engage in the Summit’s opening events. The agenda will include presentations by federal partners, discussions of hot issues facing states and many opportunities for networking among the state economic development commissioners, secretaries and executive directors or their top deputy. More information forthcoming.
<!–<!–<!–<!–Trade
<!–<!–U.S. Current-Account Deficit Widens in 2021 (US Bureau of Economic Analysis) Although the U.S. trade deficit widened by $169.4 billion in 2021, the U.S. maintained a services export surplus, although the surplus shrank by $15.3 billion. Overall, the U.S. current-account deficit, which reflects the combined balances on trade in goods and services and income flows between U.S. residents and residents of other countries, widened by $205.5 billion, or 33.4 percent, to $821.6 billion in 2021.
<!–<!–<!–<!–North American Transborder Freight Value Nears $114 Billion (U.S. Bureau of Transportation Statistics) Transborder freight between the U.S. and North American countries (Canada and Mexico) in January 2022:
- Total transborder freight: $113.7 billion of transborder freight moved by all modes of transportation, up 20.6% compared to January 2021. January 2022 transborder freight was up 17.1% compared to $97.1 billion in January 2020.
- Freight between the U.S. and Canada totaled $56.8B. Freight between the U.S. and Mexico totaled $56.9B.
- Trucks moved $69.0 billion of freight, up 12.9% compared to January 2021.
- Railways moved $15.5 billion of freight, up 11.8% compared to January 2021.
<!–<!–<!–<!–Workforce
<!–<!–Telework During the COVID-19 Pandemic (Bureau of Labor Statistics) Using new data, the 2021 Business Response Survey, a large, nationally representative survey of U.S. private sector businesses, generated unique estimates of telework patterns during the coronavirus disease 2019 (COVID-19) pandemic. Between July and September 2021, 13 percent of all U.S. private sector jobs involved teleworking full time and 9 percent involved teleworking some of the time. Telework was less common in establishments that increased base wages during the pandemic. The share of establishments that increased telework was larger among establishments that started offering flexible work hours or compressed work schedules after the pandemic hit. Telework was also associated with reductions in workplace square footage and relocation. Within each industry sector, low-paying establishments had a smaller share of jobs that involved telework.
<!–<!–The New Geography of Remote Work (Upwork) Using a new survey of over 23,000 people in the U.S., Upwork found that remote work continues to influence Americans’ plans to move. Furthermore, a review of the existing evidence on the geographical impact of remote work shows that change is already underway. Key Findings:
- Remote work has already sparked moves: 2.4% of people, or 4.9 million Americans, say that they have already moved because of remote work, since 2020.
- More moves to come: 9.3% of people, or 18.9 million Americans, are planning on moving because of remote work, compared to 6.1% in October 2020.
- People are moving outside commutable distances: 28% of people said they are moving more than 4 hours away. Another 13% said they are moving between two and four hours away.
- Cities most likely to see people move away will likely meet a few criteria: Areas with both high cost of living and many jobs that can be done remotely are the most likely to experience out-migration. This is likely to include superstar cities like San Francisco and New York City.
- The effects of remote work on geography are just beginning to unfold: The number of people who have relocated is likely just the start of a larger reshuffle, since our data suggests that there are strong reasons to suspect longer-term moves will rise.
<!–<!–The Future of Work in 2022 and Beyond (Forbes) A new report from Ivanti [an IT company] examines the trends of the “Everywhere Workplace” and its implications on the future of work. With the effects of COVID-19 finally starting to recede, businesses are considering the question, “What now?” What does “normal” look like going forward? The Ivanti survey found that nearly 9 out of 10 (87%) survey respondents do not want to work from the office full-time. Nearly half (45%) would be happy to never step foot in an office again, while 42% indicated that they prefer a hybrid model that splits time between home and office. One interesting stat is that 71% stated that they would choose to be able to work from anywhere over a job promotion or compensation increase.
<!–<!–<!–<!–Finance & Incentives
<!–<!–Battery Manufacturer to Employ Thousands in Arizona Expansion (The Center Square) Queen Creek, Arizona will soon be home to a large new battery manufacturing facility. LG Energy Solution (LGES) announced last month that it is investing $1.4 billion to build its first-ever cylindrical-type battery facility in North America. The company expects that this new facility will employ a few thousand people. Construction of the facility will begin this summer, and production is expected to commence in 2024. Cylindrical batteries offer “high-density, compact energy storage,” making them appropriate for use in electric vehicles.
<!–<!–Indiana Announces $189 Million in Broadband Grants (IPB News) More than 52,000 Hoosier homes and businesses will be able to connect to broadband through grants announced in April. The latest round of awards totals $189 million across 80 counties. This is the third round of funding through the state’s broadband grants program. The money goes to telecom companies and providers who then connect unserved communities. Governor Holcomb said while the focus so far is those who don’t have internet, the state is also expanding its focus as the program moves forward to include those with inadequate broadband coverage.
<!–<!–<!–<!–<!–<!–<!–<!–StateEconomicDevelopment.org The SEDE Network engages in regular activities throughout the year. The State Economic Development Executives (SEDE) Network Steering Committee includes: Stefan Pryor (RI), Chair; Sandra Watson (AZ), Vice Chair; Mike Preston (AR); Kurt Foreman (DE); Don Pierson (LA); Kevin McKinnon (MN); Chris Chung (NC); Alicia Keyes (NM); Michael Brown (NV); Andrew Deye (OH); Sophorn Cheang (OR); Adriana Cruz (TX); Joan Goldstein (VT); Lisa Brown (WA); Mike Graney (WV).
<!–<!–For further questions on the content in this Bulletin or for information on the SEDE Network contact Bob Isaacson, CREC Senior Vice President, at bisaacson@crec.net.
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State Economic Development Bulletin – March 2022
<!–State Economic Development Bulletin
<!–<!–Headlines:
<!–<!–Economic Performance
- Economic Growth Continues Despite Uncertainty (Federal Reserve System)
- Ukraine War Is Having Serious Human and Economic Impacts (International Monetary Fund)
SEDE News
- SEDE Webinars:
- DEI and Manufacturing
- Incentives Roundtable: New Findings on Remote Worker Attraction Programs
- National Leadership Needed on International Trade (U.S. Chamber of Commerce)
- DOD Reviews Supply Chain Vulnerabilities (U.S. Department of Defense)
- Innovation Emphasized in State of the Union Address (SSTI)
- Downward Trends in Worker Migration Continue (U.S. Census Bureau)
- Businesses Filling Vacancies With Workers With “Unique Abilities” (NIST)
- More Than $250 Million Awarded in Broadband Grants (NTIA)
- BMW Announces Major Expansion of South Carolina Facility (Upstate Business Journal)
- XNRGY Announces $300 Million Investment in Arizona (Area Development)
- AES Clean Technology Adds Pennsylvania Location (The Mercury)
<!–<!–<!–<!–Economic Performance
<!–<!–Economic Growth Continues Despite Uncertainty (Federal Reserve System) Economic activity is expanding at a modest to moderate pace since mid-January with many Districts reporting that the surge in COVID-19 cases temporarily disrupted business activity as firms faced heighted absenteeism. Some Districts cited severe winter weather as the cause of generally weaker consumer spending. Although manufacturing activity continued to grow at a modest pace, all Districts noted that supply chain issues and low inventories continued to restrain growth, particularly in the construction sector. Reports from banking contacts indicated some weakening of financial conditions, although loan demand was generally unchanged. The economic outlook over the next six months remained stable and generally optimistic, although reports highlighted an elevated degree of uncertainty. On the labor front, firms continued to increase compensation and introduce workplace flexibility to attract workers—especially in historically low wage positions—with mixed success. The report was based on information collected on or before February 18, 2022 and does not reflect any economic changes due to the events in the Ukraine.
<!–<!–<!–<!–Economic Outlook
<!–<!–Ukraine War Is Having Serious Human and Economic Impacts (International Monetary Fund) The IMF Executive Board noted that the war is resulting in tragic loss of life and human suffering, as well as causing massive damage to Ukraine’s physical infrastructure. Unprecedented sanctions have been announced on Russia and while the situation remains highly fluid and the outlook is subject to extraordinary uncertainty, the economic consequences are already very serious. Energy and commodity prices—including wheat and other grains—have surged, adding to inflationary pressures from supply chain disruptions and the rebound from the Covid‑19 pandemic. Price shocks will have an impact worldwide, especially on poor households for whom food and fuel are a higher proportion of expenses. Should the conflict escalate, the economic damage would be even more devastating. The sanctions on Russia will also have a substantial impact on the global economy and financial markets, with significant spillovers to other countries.
<!–<!–<!–<!–SEDE News
<!–<!–Alicia J. Keyes, Cabinet Secretary, New Mexico Economic Development
<!–<!–Spotlight: Alicia J. Keyes – Cabinet Secretary, New Mexico Economic Development Prior to joining Governor Michelle Lujan Grisham’s cabinet, Alicia J. Keyes was the Director of the Albuquerque Film, Television and Media Office under Mayor Tim Keller. During her time with Keller’s administration, Keyes was instrumental in initiating and closing the recent deal with Netflix in which the company purchased ABQ Studios and committed to spend $1 Billion in production. Before working with the City of Albuquerque, Keyes was the Executive Director of Worldwide Acquisitions and Co-production for the Walt Disney Company. She was responsible for the acquisition of theatrical motion pictures for distribution including domestic and international rights.
<!–<!–Keyes began in the entertainment business working for Joel Fields and Len Hill developing television movies. Keyes grew up in Albuquerque, New Mexico, graduated from the Albuquerque Academy in 1993 and then received her bachelor’s degree at Claremont McKenna College in Politics, Philosophy and Economics. She adopted twin boys, Charles and Alexander Touche, who followed in their mother’s footsteps and graduated from the Academy in 2017. They now attend Cornell and Penn State Universities.
<!–<!–SEDE Webinars: SEDE Network participants and staff are invited to attend.
- DEI and Manufacturing Please join the American Manufacturing Communities Collaborative, The Century Foundation, and the Urban Manufacturing Alliance for a 60-minute briefing and panel discussion on infusing diversity, equity, and inclusion into the American manufacturing sector.
- Incentives Roundtable: New Findings on Remote Worker Attraction Programs As more people work from – and live – anywhere, states and localities are increasingly offering incentives targeting remote workers. This roundtable will present findings from recent evaluations of two of the longest-standing remote worker attraction programs: the Vermont New Remote Workers Grant Program and Tulsa Remote, both launched in 2018. As early adopters of remote worker incentives, both places offer important lessons to communities that offer or are considering offering incentives to attract remote workers.
<!–<!–<!–<!–Trade
<!–<!–National Leadership Needed on International Trade (U.S. Chamber of Commerce) President and CEO Suzanne Clark highlighted some of key issues affecting trade in her State of American Business address earlier this year. She noted that understanding the global environment is imperative for the U.S. business community. For that reason, the U.S. Chamber tracks the biggest global trends which will have huge implications for global business in the year ahead. Here are some of the major trends the Chamber is tracking in 2022:
<!–<!–- Covid-19: Light at the end of the tunnel?
- Growth: Strong but slowing
- Inflation: Not just “transitory.”
- Trade: The boom continues
- Supply Chains: Slowly normalizing
<!–<!–- China: Business strong, but concerns mount
- Trade Agreements: Multiplying
- Digitalization: Accelerating.
- Direct Investment: On the rebound.
- Energy Transition: Charging ahead
<!–<!–This address was based on information collected prior to the events in the Ukraine.
<!–<!–<!–<!–Industry Trends
<!–<!–DOD Reviews Supply Chain Vulnerabilities (U.S. Department of Defense) DOD’s recent report, Securing Defense-Critical Supply Chains, reviews the nation’s supply chain and recognizes the need for bold action in support of supply chain security. DOD notes that supply chain resilience has become a top-of-mind issue in a way it has not been for decades and notes that companies are rapidly modernizing supply chains. The report adds that numerous Congressional proposals and laws have signaled an intent to build domestic industrial capabilities and work with allies and international partners to build resilience.
The report highlights four strategic enablers – workforce (see below), cyber posture, manufacturing, and small business – that create operational and strategic risk; addressing the challenges in each is critical to building overall supply chain resilience. The report also outlines certain foundational recommendations to enhance and grow the industrial base.
<!–<!–<!–<!–Innovation Emphasized in State of the Union Address (SSTI) In the State of the Union speech delivered on March 1, President Biden frequently addressed innovation. Semiconductor manufacturing incentives and supply chains for advanced industries were among the sectors that received particular attention. The message included a specific request that Congress pass the Senate’s U.S. Innovation and Competition Act (originally the Endless Frontier Act) and the House’s America COMPETES Act. In addition to funding for semiconductor incentives, this legislation would authorize a multi-billion-dollar Regional Technology Hubs program, expand the National Science Foundation to include an innovation-focused directorate, and several other related initiatives.
<!–<!–<!–<!–Workforce
<!–<!–Downward Trends in Worker Migration Continue (U.S. Census Bureau) The COVID-19 pandemic did not stop a decline in the nation’s mover rate which in 2021 was at a seven-decade low, according to the Current Population Survey Annual Social and Economic Supplement. The 2021 mover rate was less than half what it was in 1948. In 2021, 8.4% of people lived in a different residence one year ago, down from 9.3% in 2020. A falling mover rate is nothing new – over the past five years, both the annual mover rate and number of movers fell in most years. Nearly half of all movers in 2021 cited housing-related reasons for moving, which were also the most prevalent reasons given for moves from 2017 to 2021. The next most prevalent reasons for moving in those years were family-related reasons and job-related reasons.
<!–<!–<!–<!–Businesses Filling Vacancies With Workers With “Unique Abilities” (NIST) The Manufacturing Innovation Blog discussed how manufacturers can redefine inclusion outside of the traditional categories of marginalized people to help solve labor supply challenges. The article presented three keys for finding previously-overlooked workers:
- Change your perspective. Workers have unique abilities – and are not “disabled” or “special needs;” rather, they are “uniquely abled,” whose skills may include focus, attention to detail and patience with long and intricate processes.
- Understand that you’re not alone. There is a whole ecosystem of employment-focused organizations that want to place and support people with unique abilities in companies. These organizations can help employers make the case internally, prepare a culture and offer ideas for a successful inclusion effort.
- Reach out and have a conversation. It might take a little bit of searching, but there likely is a nearby nonprofit ready to support hiring efforts. These organizations work to remove the typical workplace obstacles and will also work with employers to help them understand how other people think, learn, and communicate so that the business can build internal supports for a diverse workforce.
<!–<!–<!–<!–Finance & Incentives
<!–<!–More Than $270 Million Awarded in Broadband Grants (National Telecommunications and Information Administration) The U.S. Department of Commerce announced that it awarded 13 grants as part of the Broadband Infrastructure Program. These grants, totaling more than $277 million, were awarded to 12 states and one territory: Georgia, Guam, Kentucky, Louisiana, Maine, Mississippi, Missouri, Nevada, North Carolina, Pennsylvania, Texas, Washington, and West Virginia. More information on each of these grant projects is provided in the table below.
The Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law, provides a historic $65 billion investment to expand broadband in communities across the U.S. NTIA is preparing to launch a series of new broadband grant programs funded by the law that will build broadband infrastructure across the country, create more low-cost broadband service options, and address the digital equity and inclusion needs in our communities. The Broadband Infrastructure Program was designed to support broadband infrastructure deployment in unserved areas, especially rural areas.
<!–<!–BMW Announces Major Expansion of South Carolina Facility (Upstate Business Journal) BMW will invest $200 million to expand its Spartanburg operation, a move that will bring an additional to 200 jobs to the area. The expansion comes in the form of a 219,000-square-foot body panel production facility expected to be online by summer 2024. Reports indicate that the facility will produce doors, fenders, exterior body panels and liftgates. Governor Henry McMaster is pursuing training incentives for BMW.
<!–<!–XNRGY Announces $300 Million Investment in Arizona (Area Development) XNERGY, one of the largest custom air handling manufacturers in North America, announced the planned construction of a new cutting-edge manufacturing facility in the Greater Phoenix area, which will be designated as their headquarters. XNRGY’s state-of-the-art 1 million-square-foot facility represents an estimated $300 million investment, creating more than 900 jobs for residents over time.
<!–<!–AES Clean Technology Adds Pennsylvania Location (The Mercury) AEC Clean Technology, a manufacturer and builder of cleanroom facilities, will invest $14.2 million to open a new manufacturing facility in Manheim Borough within Lancaster County. It will be the second Pennsylvania location for the company. The company received a proposal from the Department of Community and Economic Development for a $485,000 Pennsylvania First grant and a $97,000 workforce development grant to help the company train workers.
<!–<!–<!–<!–<!–<!–<!–<!–StateEconomicDevelopment.org The SEDE Network engages in regular activities throughout the year. The State Economic Development Executives (SEDE) Network Steering Committee includes: Stefan Pryor (RI), Chair; Sandra Watson (AZ), Vice Chair; Mike Preston (AR); Kurt Foreman (DE); Don Pierson (LA); Kevin McKinnon (MN); Chris Chung (NC); Alicia Keyes (NM); Michael Brown (NV); Andrew Deye (OH); Adriana Cruz (TX); Joan Goldstein (VT); Mike Graney (WV).
<!–<!–For further questions on the content in this Bulletin or for information on the SEDE Network contact Bob Isaacson, CREC Senior Vice President, at bisaacson@crec.net.
<!– -
State Economic Development Webinar
<!–Incentives Roundtable: New Findings on Remote Worker Attraction Programs
<!–<!–April 5, 2022
4:00 PM – 5:00 PM ET
<!–<!–As more people are able to work from – and live – anywhere, states and localities are increasingly offering incentives targeting remote workers. The move to remote and hybrid work in response to the COVID-19 pandemic has accelerated the trend, with dozens of new programs emerging in the last two years. Will these worker attraction efforts be effective?
This roundtable will present findings from recent evaluations of two of the longest-standing remote worker attraction programs: the Vermont New Remote Workers Grant Program and Tulsa Remote, both launched in 2018. As early adopters of remote worker incentives, both places offer important lessons to communities that offer or are considering offering incentives to attract remote workers.
Moderator:
Ellen Harpel, Smart Incentives
Speakers:
Deanna Kimball, PFM Group Consulting
Joan Goldstein, Vermont Agency of Commerce and Community Development
Kenan Fikri, Economic Innovation Group
<!–<!–<!–<!–StateEconomicDevelopment.org The SEDE Network engage in regular activities throughout the year. The State Economic Development Executives (SEDE) Network Steering Committee includes: Stefan Pryor (RI), Chair; Sandra Watson (AZ), Vice Chair; Julie Anderson (AK); Mike Preston (AR); Kurt Foreman (DE); Don Pierson (LA); Kevin McKinnon (MN); Chris Chung (NC); Alicia Keyes (NM); Michael Brown (NV); Andrew Deye (OH); Adriana Cruz (TX); Joan Goldstein (VT); Mike Graney (WV).
<!–<!–For further questions on this content or for information on the SEDE Network contact Bob Isaacson, CREC Senior Vice President, at bisaacson@crec.net.
<!– -
State Economic Development Bulletin – February 2022
<!–State Economic Development Bulletin
<!–<!–Headlines:
<!–<!–Economic Performance
- Unemployment Continues To Ease (U.S. Bureau of Labor Statistics)
- Start-ups Slow but Still Drive Growth (U.S. Bureau of the Census)
Economic Outlook
- Impacts of the Ukraine Crisis (Bloomberg)
- Wind Farms in Ocean Waters Can Be an Economic Driver (Stateline)
SEDE News
- Spotlight: Michael Preston, Arkansas Secretary of Commerce & AEDC Executive Director
- Online Forums Now Available for SEDE Members
Trade
- No Relief Seen in Trade Deficits (U.S. Census Bureau and the U.S. Bureau of Economic Analysis)
Industry Trends
- Manufacturers Reshoring to Address Supply Chain Challenges (Manufacturing Innovation Blog, MEP)
- The Pandemic Has Influenced Site Selection (Site Selection Magazine)
Workforce
- DOL Announces $113M in Funding for Apprenticeship Programs (U.S. Department of Labor)
Finance and Incentives
- Wichita, KS Approves Redevelopment of Oil Refinery Site (The Wichita Eagle via MSN)
- Opportunity Zones Continue To Draw Investment (Novogradac)
<!–<!–<!–<!–Economic Performance
<!–<!–Unemployment Continues To Ease (U.S. Bureau of Labor Statistics) Unemployment rates were lower in December in 42 states and the District of Columbia and stable in 8 states, the U.S. Bureau of Labor Statistics reported. Forty- eight states and the District had jobless rate decreases from a year earlier and two states were little changed. The national unemployment rate, 3.9 percent, declined by 0.3 percentage point over the month and was 2.8 points lower than in December 2020.
Nonfarm payroll employment increased in 17 states and was essentially unchanged in 33 states and the District of Columbia in December 2021. Over the year, 48 states and the District added nonfarm payroll jobs and 2 states were essentially unchanged.
<!–<!–Meanwhile, job opening rates increased in 7 states, decreased in 4 states, and were little changed in 39 states and the District of Columbia as of December. Hires rates decreased in 6 states, increased in 1 state, and were little changed in 43 states and the District of Columbia. Total separations rates decreased in 15 states, increased in 2 states, and were little changed in 33 states and the District of Columbia.
<!–<!–Start-ups Slow but Still Drive Growth (U.S. Bureau of the Census) The evolution of job growth and employment in the U.S. economy over the past four decades has been characterized by two important but seemingly contradictory facts: Young start-up businesses have been a key driver of economic growth, yet more and more of the American workforce has become concentrated at older, more mature firms. After falling in the 1980s, the share of employment at more mature firms rose steadily, representing approximately 90% of all employees by 2019. However, young firms have much greater rates of net job creation and are the engine of economic growth. These seemingly contradictory facts require noting that there are fewer startups over time and in turn fewer young firms over time. The net growth rate differential between young and old has not changed much but there are fewer and fewer young firms over time.
<!–<!–<!–<!–<!–<!–Economic Outlook
<!–<!–Impacts of the Ukraine Crisis (Bloomberg) Russia’s invasion of Ukraine, seen as a risk scenario by economists just days ago, became the new reality as Russian troops entered the country. There’s been no mass rush — yet — to downgrade growth forecasts or ramp up consumer-price predictions. But policy makers and economic observers alike are scrambling to assess the potential knock-on effects of the worst security crisis in Europe since World War II. The most obvious channel of impact is via energy and other commodity prices, given Russia’s prominent role as an exporter. While there hasn’t been a disruption to flows, fears of an escalation sent prices of many products – from oil and gas to wheat, fertilizer and industrial metals soaring in recent weeks.
<!–<!–Wind Farms in Ocean Waters Can Be an Economic Driver (Stateline) The United States currently produces almost no electricity from wind farms in ocean waters. That’s about to change—fast. State leaders have spent years laying the groundwork: requiring their utilities to purchase set amounts of offshore power by certain dates, investing in ports and transmission infrastructure and setting up workforce training programs. As a quickly growing list of projects enters the permitting and construction phases, many states are betting on offshore wind to be a crucial source of renewable power—and an economic driver that will create thousands of manufacturing and maritime jobs. However, many seaports still lack the capacity to handle giant towers and turbines and others will need significant upgrades to their grids to bring electricity onshore. As states transition away from gas-powered cars and furnaces, they expect their need for electricity to increase with many noting that it will be impossible to meet their clean energy goals without significant offshore wind production.
<!–<!–<!–<!–SEDE News
<!–<!–Michael Preston, Arkansas Secretary of Commerce & AEDC Executive Director
<!–<!–Spotlight: Michael Preston, Arkansas Secretary of Commerce & AEDC Executive Director Governor Asa Hutchinson appointed Michael “Mike” Preston executive director of the Arkansas Economic Development Commission (AEDC) in March 2015 and Secretary of Commerce July 2019. Preston is highly regarded as a leading advocate in economic development. Over the years, Preston has made successful business recruitment trips to Japan, China, France, Germany, Israel, Cuba, Mexico, Italy, United Kingdom, New York City and Silicon Valley. The trips continue to play an important role in the state’s economic development efforts and have led to more than 451 projects with companies signing agreements with AEDC to locate or expand in Arkansas.
<!–<!–Before joining AEDC, he served six and a half years as the Vice President of Government Relations for Enterprise Florida, the state’s primary economic development organization. In 2018, Preston was selected to join The Wall Street Journal’s prestigious CEO Council. It is an invitation-only group that connects some of the world’s most ambitious and influential leaders to discuss the issues shaping the future. A 2005 graduate of the University of Florida, Mike and his wife Anne – along with their young son Pierce – are proud to call Arkansas home. They both volunteer in the community in a variety of ways, including the Children’s Advocacy Centers of Arkansas and the Cystic Fibrosis Foundation.
<!–<!–Online Forums Now Available for SEDE Members The SEDE Network recently launched online forums available to state economic development leaders to better collaborate, ask questions about specific policies, programs, or to generally bounce ideas off other state colleagues in a shared space. Go here, sign in using your SEDE website credentials, and start interacting with your peers! Feel free to contact Bob Isaacson with any questions.
<!–<!–<!–<!–Trade
<!–<!–No Relief Seen in Trade Deficits (U.S. Census Bureau and the U.S. Bureau of Economic Analysis) The goods and services deficit was $80.7 billion in December, up $1.4 billion from $79.3 billion in November, revised. December exports were $228.1 billion, $3.4 billion more than November exports. December imports were $308.9 billion, $4.8 billion more than November imports. The December increase in the goods and services deficit reflected an increase in the goods deficit of $3.2 billion to $101.4 billion and an increase in the services surplus of $1.8 billion to $20.7 billion. For 2021, the goods and services deficit increased $182.4 billion, or 27.0 percent, from 2020. Exports increased $394.1 billion or 18.5 percent. Imports increased $576.5 billion or 20.5 percent.
<!–<!–Industry Trends
<!–<!–Manufacturers Reshoring to Address Supply Chain Challenges (Manufacturing Innovation Blog, MEP) Disruptions in the global supply chain have led to a new dynamic for many small and medium-sized manufacturers (SMMs) – the need to be more strategic about “second sourcing” and reshoring. The biggest increase is in what’s referred to as second sourcing, which adds redundancies such as a second source of a supply to minimize risk while increasing options. But supply chain experts also are seeing an interest in relying long term on domestic supply sources. In one recent example, a manufacturer was paying $5,000 per roll for material and shipping from China, but delays in shipping forced it to use air freight instead of ocean freight, which raised the cost of just the shipping to $7,500. A traditional tactical approach of reducing shipping costs is not enough to address the potential risk for that manufacturer. The manufacturer is now using supplier scouting to reshore that base material and source it domestically.
<!–<!–The Pandemic Has Influenced Site Selection (Site Selection Magazine) From reshoring and supply-chain tightening to remote working and worker shortages, site selectors are telling us that the trends exacerbated by the global pandemic will become even more pronounced in 2022. In a Site Selection November 2021 survey, consultants reflected how entrenched the new realities of reshoring efforts, relocation of workplaces to satellite facilities, and remote working had become. The big takeaways from our annual Site Selectors Survey this time were as follows:
- Distribution and logistics projects will again dominate the headlines in 2022.
- Sunbelt states maintained their status as the most favored business climates in America.
- Most corporate clients are expected to expand their facilities sometime this year.
- Reshoring projects are here to stay for the foreseeable future.
- Suburban and rural communities will benefit as more employers look outside of large central cities to establish new workplace hubs.
- Remote working has become a permanent part of the new workplace landscape.
- Governmental mismanagement continues to be the main barrier to getting deals done.
<!–<!–Workforce
<!–<!–DOL Announces $113M in Funding for Apprenticeship Programs (U.S. Department of Labor) The U.S. Department of Labor announced the availability of $113 million for the Apprenticeship Building America (ABA) grant program to support the expansion, modernization and diversification of Registered Apprenticeship programs (RAPs). Of the $113,000,000 in grants funds available for ABA, the Department intends to fund up to $50,000,000, in aggregate across all grant categories, for projects primarily focused on equity partnerships and pre-apprenticeship activities. The Department expects to fund 20 to 30 grants, with varying funding ranges based on four grant categories:
- Category 1: State Apprenticeship System Building and Modernization: up to $4 million; Category 2: Expansion of RAP Opportunities for Youth: up to $5 million;
- Category 3: Ensuring Equitable RAP Pathways Through Pre-apprenticeship Leading to RAP Enrollment and Equity Partnerships: up to $3 million;
- Category 4: Registered Apprenticeship Hubs: up to $6 million for projects with a local/regional or statewide geographic scope; and up to $8 million for projects with a national geographic scope.
<!–<!–<!–<!–Finance & Incentives
<!–<!–Wichita, KS Approves Redevelopment of Oil Refinery Site (The Wichita Eagle via MSN) Wichita has approved a new tax district that will provide between $6 million and $7.8 million to help two prominent Wichita businessmen redevelop a heavily polluted former oil refinery site. The money from the city will help finance a 1 million-square-foot complex of warehouse, manufacturing, office and retail space at a 115-acre site of the abandoned refinery. The city’s contribution to the project will be funded with a tax increment finance district that will borrow $6 million and then pay it back by diverting future increases in property taxes generated by the new development. The city will also provide as much as $1.8 million in additional pay-as-you-go TIF funding, if it’s available after the debt is paid.
<!–<!–Opportunity Zones Continue To Draw Investment (Novogradac) Qualified opportunity funds (QOFs) tracked by Novogradac reported equity investment of $6.88 billion over the final six months and now total $24.40 billion in equity. The jump of nearly $7 billion in reported equity since June 30, 2021, is the largest increase in any reporting period since Novogradac began tracking QOF investment in May 2019. The semiannual report also includes data on the types of reported investment, the planned geographic focus of investment and the top 20 states and top 40 cities for targeted QOF investment. The list does not include proprietary or private funds owned and managed by their principal investors.
<!–<!–<!–<!–<!–<!–StateEconomicDevelopment.org The SEDE Network engage in regular activities throughout the year. The State Economic Development Executives (SEDE) Network Steering Committee includes: Stefan Pryor (RI), Chair; Sandra Watson (AZ), Vice Chair; Julie Anderson (AK); Mike Preston (AR); Kurt Foreman (DE); Don Pierson (LA); Kevin McKinnon (MN); Chris Chung (NC); Alicia Keyes (NM); Michael Brown (NV); Andrew Deye (OH); Adriana Cruz (TX); Joan Goldstein (VT); Mike Graney (WV).
<!–<!–For further questions on the content in this Bulletin or for information on the SEDE Network contact Bob Isaacson, CREC Senior Vice President, at bisaacson@crec.net.
<!– -
State Economic Development Bulletin – January 2022
<!–State Economic Development Bulletin
<!–<!–In This Issue:
<!–<!–Economic Performance
Nearly Every State Sees Employment Gains Over Past Year (Bureau of Labor Statistics)
Businesses Continue To See Challenges (U.S. Bureau of the Census)
SEDE Member ProfileDon Pierson, Secretary of Louisiana Economic Development
Economic OutlookSupply Chain Disruptions and Labor Shortages Temper Growth (Federal Reserve Bank)
Latino Population Is an Untapped Engine for Growth (McKinsey & Company)
SEDE WebinarsSBA is Helping the Nation Recover (SEDE Network)
International Trade as a Component of a State’s Economic Strategy (SEDE Network/EDA )
Industry Trends
Industry Trends to Watch as Manufacturers Eye Growth (Deloitte)
AI in Manufacturing Can Be a Game Changer (NIST)
WorkforceWorkers Not Skilled up for Digital Revolution (Information Technology and Innovation Foundation)
Desperate for State Workers, Governors Offer Raises to Keep Them (Stateline)
Finance and IncentivesBlockchain and Bonds in Berkeley (The Daily Californian)
New Funding Will Revitalize Maine Paper Mill (NewsCenter Maine)
EDA Awards Build Back Better Community of Practice Grant (Economic Development Administration)
TradeTrade Deficit Grew in Late 2022 (U.S. Bureau of the Census and U.S. Bureau of Economic Analysis)
SEDE Website
<!–<!–<!–<!–Economic Performance
<!–<!–Nearly Every State Sees Employment Gains Over Past Year (Bureau of Labor Statistics) For the 12 months ending in November 2021, nonfarm payroll employment increased in 49 states and the District of Columbia, and was essentially unchanged in 1 state (Wyoming). The largest job increases occurred in California (+821,800), Texas (+698,700), and Florida (+485,600). The largest percentage increases occurred in Hawaii (+8.4 percent), Nevada (+7.4 percent), and Massachusetts (+5.8 percent).
From October to November 2021, nonfarm payroll employment increased in 16 states and was essentially unchanged in 34 states and the District of Columbia in November 2021. The largest job gains occurred in Texas (+75,100), Florida (+51,100), and California (+45,700). The largest percentage increase occurred in North Dakota (+0.8 percent), followed by Florida, Montana, New Jersey, and Texas (+0.6 percent each).
<!–<!–Unemployment rates were lower in November in 40 states and the District of Columbia and stable in 10 states. Forty-eight states and the District had jobless rate decreases from a year earlier and two states were little changed. The national unemployment rate, 4.2 percent, fell by 0.4 percentage point over the month and was 2.5 points lower than in November 2020. These data are from the BLS Current Employment Statistics program and are seasonally adjusted.
<!–<!–Businesses Continue To See Challenges (U.S. Bureau of the Census) The latest data from the Small Business Pulse Survey and results were based on responses collected January 3 through January 9, 2022. The survey measured the effect of changing business conditions during the coronavirus pandemic, as well as other major events such as hurricanes on our nation’s small businesses. Key findings included:
- 21.7% of U.S small businesses experienced a moderate decrease in demand for their goods or services compared to what was normal pre-3/13/20. For responses collected 12/27/21-1/2/22, this statistic was 20.7%.
- 42.4% of U.S small businesses experienced domestic supplier delays and 17.4% experienced foreign supplier delays in the last week. For responses collected 12/27/21-1/2/22, these statistics were 43.3% and 18.4% respectively.
- 29.6% of U.S. manufacturing small businesses expect to make a capital expenditure in the next 6 months. The national average for all industries was 16.4%.
<!–<!–<!–<!–SEDE Member Profile
<!–<!–Don Pierson, Secretary, Louisiana Economic Development
<!–<!–In January 2016, Louisiana Gov. John Bel Edwards appointed Don Pierson, CEcD, to serve as Secretary of Louisiana Economic Development. Pierson had served as LED Assistant Secretary and Senior Director of Business Development since January 2005.
With executive-level leadership, his duties include the implementation of domestic and international economic development programs, and job retention and creation efforts for the State of Louisiana.
<!–<!–He is Gov. John Bel Edwards’ primary representative to governmental officials, local communities, and site selector consultants on all economic issues. Pierson possesses three decades of economic development experience and is a certified economic development professional. He is a member of the International Economic Development Council (IEDC) Board of Directors.
<!–<!–<!–<!–Economic Outlook
<!–<!–Supply Chain Disruptions and Labor Shortages Temper Growth (Board of Governors of the Federal Reserve Bank) The Federal Reserve “Beige Book” released January 12, 2022, compiles anecdotal information derived from business contacts nationwide. Reports indicated that economic activity across the country expanded at a modest pace in the final weeks of 2021. Contacts indicated growth continued to be constrained by ongoing supply chain disruptions and labor shortages. Tightness in labor markets drove robust wage growth nationwide, with some Districts highlighting additional growth in labor costs associated with non-wage benefits. Besides wage gains, many contacts indicated adjustments to job demands – such as accommodating part-time work or adjusting qualification requirements – to attract more applicants and retain workers.
<!–<!–<!–<!–Latino Population Is an Untapped Engine for Growth (McKinsey & Company) Entrepreneurship is a recurring theme in McKinsey’s first comprehensive study of Latino economic mobility—The economic state of Latinos in America: The American dream deferred. The study analyzed the roles of Latinos as workers, savers, business owners, and consumers in the US economy. Latinos are an economic engine for the US. They are the fastest growing minority: by 2030, 1 in 5 workers will be Latino. And they have the highest rate of entrepreneurship of any race: their businesses have grown by 12.5 percent over the past five years, compared to 5.3 percent for White-owned businesses.
But the report also surfaced the challenges Latino entrepreneurs face in securing the capital they need to grow. They rely more on family savings, credit cards, and personal assets to start businesses, and they are less likely to apply for funding because they don’t think they will receive approval. Their businesses also tend to be underrepresented in higher growth industries, and many need to invest in a stronger digital presence, which is critical to grow. One of the insights that surfaced in the research is the fact that any resources or programs focused on supporting economic mobility need to understand the many differences among Latino populations, bucking the common misperception that they are a monolithic group. Distinctions among the population include whether they are US or foreign born and their country of origin.
<!–<!–<!–<!–SEDE Webinars
<!–<!–SBA is Helping the Nation Recover (SEDE Network) The State Economic Development Executive (SEDE) Network hosted a virtual conversation with SBA Administrator Guzman on January 25, 2022. The Administrator touched on a number of topics including the importance of small business to the national economy, to our neighborhoods and to our country’s innovation. She also highlighted the recent small business growth has been supported by the entrepreneurship by women and people of color. She recognized the importance of states economic development efforts and noted that the new SBA Regional Administrators will be working to connect states and their businesses to SBA resources. A recording of the Administrator’s remarks and responses to questions can be found here.
<!–<!–International Trade as a Component of a State’s Economic Strategy. (SEDE Network/EDA ) The State Economic Development Executives (SEDE) network in cooperation with the State International Development Organizations (SIDO), National Association of Development Organizations (NADO), Center for Regional Economic Competitiveness (CREC) and the Commerce Department’s Economic Development Administration (EDA) hosted a January 11, 2022, joint webinar on international engagement between state trade offices and local development districts. Presenters from all organizations, Minnesota and Maine discussed state and local cooperation and alignment in international issues. The slides presented and the webinar video can be found here.
<!–<!–<!–<!–Industry Trends
<!–<!–Industry Trends to Watch as Manufacturers Eye Growth (Deloitte) The recovery gained momentum in 2021 on the heels of vaccine rollout and rising demand. As industrial production and capacity utilization surpassed pre-pandemic levels midyear, strong increases in new orders for all major subsectors signal growth continuing in 2022. However, optimism around revenue growth is held in check by caution from ongoing risks. Workforce shortages and supply chain instability are reducing operational efficiency and margins.
<!–<!–AI in Manufacturing Can Be a Game Changer (NIST) Artificial intelligence (AI) can have many benefits including greater efficiencies, lower costs, improved quality and reduced downtime. This technology is not only for large manufacturers. High-value, cost-effective AI solutions are more accessible than many smaller manufacturers realize. In the recent MEP National Network™/Modern Machine Shop webinar “Artificial Intelligence in Manufacturing: Real World Success Stories and Lessons Learned,” Andy Carr of the South Carolina Manufacturing Extension Partnership and Rick Oppedisano, founder and CEO of Delta Bravo discussed AI solutions that work best for small and medium-sized manufacturers (SMMs). Delta Bravo is a third-party vendor that works with SCMEP manufacturing clients on AI solutions to meet their needs. AI projects improved equipment uptime, increased quality and throughput, and reduced scrap. With the healthier bottom lines and increased profits came lessons learned.
<!–<!–<!–<!–Workforce
<!–<!–Workers Not Skilled Up for Digital Revolution (Information Technology and Innovation Foundation) Although the United States led the global digital revolution, the country is faltering now when it comes to digital skills possessed by the workforce. That is one of the findings of a recent report from the Information Technology and Innovation Foundation (ITIF), which goes on to say that such developments bode poorly for long-term U.S. competitiveness. The report notes that the broader quality of a workforce’s digital skills base is important to the economy as it becomes a key determinant of business and industry competitiveness and innovation capacity. The report also highlights several policy recommendations.
<!–<!–Desperate for State Workers, Governors Offer Raises to Keep Them (Stateline) Like private-sector employers, state agencies nationwide are struggling to find and keep workers amid a tight labor market and burnout because of the COVID-19 pandemic. And governors in both parties, like business owners, are proposing higher pay in a bid to recruit workers and convince them to stay, helped by federal aid and huge budget surpluses in most states. Nationally, pay increases should help attract and retain workers who provide vital public services, from caring for people in state hospitals to clearing snow from highways and managing state prisons.
<!–<!–<!–<!–Finance & Incentives
<!–<!–EDA Awards Build Back Better Community of Practice Grant (Economic Development Administration) To fuel the connection, communication and collaboration of the 60 Build Back Better finalists with a growing a shared body of knowledge to drive the future of American economic development, EDA has launched a Build Back Better Regional Challenge Community of Practice. This initiative is supported through a $3 million grant to the National League of Cities, with sub- awardees America Achieves, the Federation of American Scientists and the Nowak Metro Finance Lab at Drexel University. The grants will run January-September 2022, bringing together all 60 finalists with the goal of supporting the development of strong Phase 2 applications while creating a sense of community and the sharing of best practices.
In partnership with EDA headquarters and its six regional offices, the Community of Practice will work with the finalists to translate their concept proposals into comprehensive, actionable plans that leverage regional assets, build new local partnerships and accelerate their economic vision within their Phase 2 applications. Community of Practice members will each receive a variety of individualized and group technical assistance that includes regular group-wide convenings and peer-to-peer learning opportunities with other finalists. This coalition will bring a wealth of knowledge to the 60 finalists. Among these four partners, areas of expertise include workforce development, equitable economic growth, governance, coalition building, project formulation and planning, and technology-based economic development.
<!–<!–Blockchain and Bonds in Berkeley (The Daily Californian) Berkeley, California is set to become one of the first cities in the nation to incorporate blockchain technology in its municipal bond market, according to a Dec. 23 press release issued by the mayor’s office. This announcement came after a unanimous city council vote granting authorization for the city manager to work with a firm that will provide support to the city in developing a microbond financing program. The city of Berkeley has been working to develop the new blockchain market since 2019, according to the release. The new system will allow municipal bonds to be purchased for $100 or less, as opposed to the $5,000 purchasing minimum on traditional municipal bonds. The city anticipates that blockchain will increase access to municipal bonds.
<!–<!–New Funding Will Revitalize Maine Paper Mill (NewsCenter Maine) Paper mills provided economic boosts and job opportunities for communities for generations. However, as the industry changed over the years, many companies closed their mills around the country and in Maine. The paper mill in Madison, Maine employed residents for decades but closed its doors in 2016. But after Maine-based GO Lab closed on an $85M green bond sale and New Markets Tax Credit transaction, the lights will be turned back on. The money will now enable CIanbro, the lead contractor hired by GO Lab, to build three manufacturing lines that will produce wood fiber insulation. While the market in Europe is worth $700 million annually, according to the company release, this will be the first time the product will be made in North America. The company said it will employ more than 120 people when the site is fully operational, which they expect to happen in 2023. The company will use timber from Maine’s forests for its work in the mill which will also provide a boost to that industry in that part of the state.
<!–<!–<!–<!–Trade
<!–<!–Trade Deficit Grew in Late 2021 (U.S. Bureau of the Census and U.S. Bureau of Economic Analysis) The nation’s goods and services deficit was $80.2 billion in November, up $13.0 billion from $67.2 billion in October. November exports were $224.2 billion, $0.4 billion more than October exports. November imports were $304.4 billion, $13.4 billion more than October imports.
<!–<!–Exports of goods decreased $2.9 billion to $155.9 billion in November with telecommunications, industrial machines and civilian aircraft engines all slipping slightly. Crude, oil, travel, and transportation both increased modestly helping to boost exports. Regions where the U.S. held trade surpluses included Brazil ($1.0 billion), United Kingdom ($0.5), and Singapore ($0.3). Deficits were recorded with China ($28.4), European Union ($19.4), Mexico ($11.0), Germany ($6.1) and Canada ($5.4).
<!–<!–<!–<!–<!–<!–<!–<!–The SEDE Network Steering Committee includes: Stefan Pryor (RI), Chair; Sandra Watson (AZ), Vice Chair; Julie Anderson (AK); Mike Preston (AR); Kurt Foreman (DE); Don Pierson (LA); Kevin McKinnon (MN); Chris Chung (NC); Alicia Keyes (NM); Michael Brown (NV); Andrew Deye (OH); Dennis Davin (PA); Adriana Cruz (TX); Joan Goldstein (VT); Mike Graney (WV).
<!–<!–For further questions on the content in this Bulletin or for information on the SEDE Network contact Bob Isaacson, CREC Senior Vice President, at bisaacson@crec.net.
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