March 25: Understand Power Generation for Business Needs Webinar (IED) IEDC and NASEO are hosting a virtual working group on Understanding Power Generation for Business Needs on Monday, March 25 from 2:00 – 3:15 pm (ET), featuring a presentation from the Clean Energy Buyers Association which represents corporate buyers of clean energy including Google, Amazon, McDonalds and others, as well as representatives of utilities. The 75-minute meeting will also include breakout sessions to share approaches and insights between economic developers, state energy offices, and presenters. The Zoom link for this meeting is here.

April 4: How CREC’s Issue Briefs Can Help Strategic Alignment (CREC) CREC has just published nine issue briefs to help states and EDDs see some real-life examples of how alignment has made a difference. Interested in an overview of these new publications? CREC will be hosting a webinar on April 4 at 4 pm (ET) to introduce the issue briefs and discuss how they can guide your alignment journey as you explore increased collaboration and co-investment. This webinar is funded by EDA. Register here.

April 18: Statewide Planning Grant Resiliency Webinar (CREC) Join EDA Statewide Planning Grant recipients for the final topical webinar surrounding grant activities, focused on projects related to economic recovery and resiliency. Virginia will share how they used the grant to help build economic resiliency in underserved areas via entrepreneurship ecosystems. The Federated States of Micronesia will share how the funds were used to address an ongoing health crisis. This webinar is funded by EDA. Register here.

News

Introducing the Economic Recovery Corps (EDA) EDA has introduced the inaugural cohort of EDA’s Economic Recovery Corps (ERC) and in the coming weeks, these 65 talented professionals will deploy to communities across the country for 2.5 years. The cohort will work to advance regional projects, enhancing economic development capacity of under-resourced communities through their host organizations, including local governments, Economic Development Organizations, Tribes, local nonprofits, community development financial institutions, and Economic Development Districts. This program is led by the International Economic Development Council.

Reauthorization of the U.S. Economic Development Organization (NADO) The U.S. Senate introduced bipartisan legislation in March to reauthorize the Economic Development Administration (EDA) for the first time in nearly 20 years. The Economic Development Reauthorization Act of 2024 makes key reforms to modernize EDA’s core programs and authorizes activities such as workforce development and disaster assistance. This bill would also authorize and update the laws pertaining to certain federal regional commissions, as well as establish two new regional commissions. The National Association of Development Organizations (NADO) has created a one-pager that summarizes the legislation.

Statewide Planning Grant Case Studies (SEDE) In 2022, EDA funded CREC to research the impacts of EDA’s State Planning Grant Program. CREC’s survey and interview research provided a more comprehensive view of the grants allowing the team to create a series of case studies of best practices in grant expenditure covering project creativity and state alignment with EDA-designated Economic Development Districts (EDDs). These six case studies and other resources related to state-local alignment can be found here.

*Economy 💰*

Another Burst of Hiring Shows Off the Resilience of the U.S. Jobs Market (Associated Press) February’s job growth of 275,000 jobs on top of the revised gain of 229,000 jobs in January reflects a strong labor market. At the same time, the unemployment rate ticked up two-tenths of a point in February to 3.9%. Though that was the highest rate in two years, it is still low by historic standards. And it marked the 25th straight month in which joblessness has remained below 4% — the longest such streak since the 1960s.

Who Still Works from Home? (The New York Times) The American workplace’s experiment with remote work happened, effectively, overnight: With the onset of the pandemic in March 2020, more than half of workers began working from home at least part of the time. But the shift to a permanent hybrid-work reality has been gradual, with periods of tension as workers across white-collar industries pushed against executives’ return-to-office directives. Workplaces have reached a new hybrid-work status quo with roughly one-tenth of workers cobbling together a combination of work in the office and from home, and a similar portion are working entirely remotely. This population of hybrid and remote workers in the United States doesn’t quite mirror the larger population of workers: Government data shows they tend to have more education and are more often white and Asian. This article reviews the trends on who is still working from home.

Unpacking ARPA’s “Revenue Loss’ Provision for Local Governments (Brookings) This month marks the third anniversary of the passage of the American Rescue Plan Act (ARPA) and its $350 billion Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program, administered by the U.S. Department of the Treasury. State, local, and tribal governments have had three years to appropriate, obligate, and spend SLFRF dollars to address the health, economic, and fiscal effects of the COVID-19 pandemic. Since the SLFRF program’s inception, Brookings Metro, the National League of Cities, and the National Association of Counties have monitored how the nation’s largest cities and counties (those with populations greater than 250,000) have used their $65 billion share of these funds through the Local Government ARPA Investment Tracker. This update provides new insights into how large local governments have used SLFRF dollars over the past three years to foster an equitable economic recovery from COVID-19, and their progress to date in obligating these funds in time for Treasury’s impending December 2024 deadline.

*Trade 📈*

U.S. is Committed to Deepening Trade Ties with South Africa (Daily Maverick) A little over one year ago, the U.S. hosted the US-Africa Leaders’ Summit and underscored that Africa will shape the future of the global economy. By 2050, Africa’s population is expected to grow from just over 1.4 billion people to over 2.5 billion people. Economic growth in Africa is good for the global economy, including the American economy which is why the United States is committed to deepening trade ties, investing in the South African economy, and fostering people-to-people relationships among our citizens, businesses, and universities. At the heart of this relationship is the African Growth and Opportunity Act (Agoa), the nation’s mutually beneficial economic partnership. South Africa has become America’s largest trading partner in Africa, with over $20 billion of two-way trade of goods. Deepening this relationship will be beneficial for both economies moving forward.

U.S. Says Falling Trade with China Could be Positive (BBC) The steep drop in trade with China could be a positive development. It comes amid deepening divisions in the global economy as trade between the two hit a record high in 2022 but has fallen as many big US companies move production outside of China. Both countries are trying to grow their economic influence in parts of Africa and Asia as they try to secure access to natural resources and build resilience into supply chains. It has led to growing concerns that the world is splitting into two trading blocs but could be positive for national security risks. It could also be a positive indication of diversification on both sides and expanding trade relations, as the amount of goods amount of goods the world’s two biggest economies sold to each other fell 17% last year.

U.S. Aims to be ‘Economic Partner of Choice’ for Indo-Pacific (Reuters) U.S. Commerce Secretary Gina Raimondo is leading a presidential trade and investment mission to the Philippines as the United States looks to fortify economic ties across the region. Raimondo plans to tout the Philippines as a key hub for regional supply chains and investment in support of the U.S. Indo-Pacific Strategy, followed by a visit to Thailand. Raimondo’s Thailand visit will focus on manufacturing, supply chain resiliency, artificial intelligence, and clean technology.

*Industry Trends 💡*

U.S. Manufacturing Outlook: Better Times Are Coming (MENAFN) U.S. manufacturing is a highly diversified sector that contributed more than $2 trillion to GDP in 2023, equivalent to just over 10% of all economic output. It also employed 13 million people, accounting for 8.3% of all US jobs. The January ISM manufacturing index was better than expected with its new orders rising above the break-even 50 level, the threshold indicating industry expansion, for the first time since August 2022. This may be tied to the decline in market borrowing costs in late 2023, receding recession fears and signs that banks are increasingly willing to lend to the sector. Manufacturing output is forecasted to increase 1.5% in 2024, with a 3% increase in 2025 before settling back to 2.5% growth in 2026. Nonetheless, there are risks – be it political, geopolitical or financial – that mean uncertainty over these projections are high, both to the downside and the upside.

Manufacturing’s Energy Tech Future is Here Already – And Women Will Be At The Heart of It (Forbes) While manufacturing employment remains male-dominated, emerging tech can play a key role in attracting a new generation of women into the sector. Right now, 30% of manufacturing jobs are currently filled by women but firms are increasingly offering female workers a vision of creativity, collaboration and innovation, all rooted in a digitally enabled future, encompassing everything from the smarter use of data to the responsible deployment of AI. In other words, manufacturing stands on the brink of not one, but two, revolutions at the same time. As the industry’s digitalization accelerates, the profile of the workforce will rapidly recalibrate too. Ultimately, these twin forces could mean that manufacturers find themselves better prepared to sense and respond to all of the dynamics of an ever-shifting market.

NIST to Launch Competition for AI-Focused Manufacturing USA institute (Manufacturing.net) The U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) plans to announce an open competition for a new Manufacturing USA institute focused on using artificial intelligence to improve the resilience of U.S. manufacturing. The AI institute will focus on conducting research and development projects, establishing employer-led sectoral partnerships to develop training resources, and creating pathways for the skilled workforce needed to move innovation into industrial practice. NIST expects to open the competition in spring of 2024, and more information on the Notice of Intent is available on NIST’s website.

*Workforce ⚒️*

Three Spheres of Equity in Workforce Development Programs (EDA) Recently, the Economic Development administration (EDA) partnered with the University of Michigan Economic Growth Institute and the New Growth Innovation Network (NGIN) to document and elevate the efforts GJC grantees are taking to advance equity and ensure strong outcomes for all communities. Their first report, “Three Spheres of Equity in Workforce Development Programs: An Early Analysis of Equity Within Good Jobs Challenge Programs,” is an important and insightful look into equity across programming in the Good Jobs Challenge. Funded by the American Rescue Plan, the Good Jobs Challenge (GJC) invested $500 million across 31 states and Puerto Rico in industry-led workforce training partnerships. Through this once-in-a-generation investment, the EDA enters new terrain in workforce development and is placing a heightened focus on addressing disparities and uplifting underserved communities by creating pipelines to good jobs. Equity is a leading investment priority for EDA, and this new report contributes to the bureau’s effort to meet that commitment.

MADE Institute in Flint Begins Carpentry Registered Apprenticeship Program (Flint Courier) Made Institute, a vocational training institution in Flint, Michigan, recently announced the launch of its Residential Carpenter Specialist Registered Apprenticeship Program in partnership with GST Michigan Works! This program is designed to provide individuals with the skills and knowledge necessary to pursue a successful career in the carpentry industry. Apprentices will learn the fundamental principles of carpentry, including blueprint reading, framing, finishing and safety procedures, and will be required to complete 309 hours of classroom instruction and between 3,900-6,000 hours of on-the-job training over the next two years. Upon successful completion of the program, apprentices will receive a nationally recognized credential from the United States Department of Labor, Office of Apprenticeship as a Residential Carpenter Specialist.

New AI Workforce Development Program Launched by Info-Tech (TMCNET) Info-Tech Research Group has announced the launch of a new AI training program designed to develop today’s workforce for the digital age. The 12-week program is strategically designed to future-proof IT workforces by equipping them with the essential business and technical skills for AI adoption. Structured to bridge the prevalent AI skills gap, the firm’s program combines in-depth technical training with practical, hands-on experience. Participants will benefit from live training sessions and role-based coaching, all tailored to enhance their understanding and application of AI. Key components of the program include a standardized curriculum with flexible projects, AI virtual labs, ready-to-deploy deliverables, and a comprehensive assurance of skill development.

This Workforce Development Program Supports 50 Local Businesses Each Week (KSBY California) Last year, San Luis Obispo County, CA, created a Workforce Development Board to serve small businesses countywide. The Atascadero Chamber of Commerce now oversees the Board and works with San Luis Obispo County to offer workforce development services across the county by hiring full-time staff to visit businesses and have one-on-one conversations about their challenges and offer solutions. The two full-time staff members provide one-on-one support to about 50 businesses total each week and offer suggestions about grant opportunities, HR resources, employee retention, and more.

*Business Finance and Incentives 📊*

Toyota to Invest Nearly $10B in Noth Carolina and Kentucky (Associated Press) Toyota says it will invest $1.3 billion at its factory complex in Georgetown, Kentucky, in part so it can build an all-new three-row electric SUV to be sold in the U.S. The company says the money will help with future electric vehicle production, including the addition of a line to assemble battery cells into packs for other EVs. But it won’t add any new jobs to the complex, which now employs nearly 9,400 workers. In October Toyota said it would invest another $8 billion in a hybrid and electric vehicle battery factory it’s building in North Carolina, more than doubling previous investments and the expected number of new jobs. The company now expects the plant to employ more than 5,000 people when it begins operations near Greensboro in 2025. Toyota has put about $13.9 billion into the plant, which will be a key supplier for the Kentucky factory that will build the company’s first U.S.-made electric vehicles.

Texas Launches New Property Tax Incentive Program (The Texas Tribune) Texas launched a new economic incentives program intended to bring new companies and jobs to the state, replacing a prior job creation system that lawmakers phased out after complaints that it contributed to inequity in public schools. Passed with bipartisan support by lawmakers last year, the Texas Jobs Energy, Technology, and Innovation (JETI) program will provide property tax cuts to eligible companies that move into Texas communities in exchange for job creation. Companies that participate in the new program are also required to create a specific number of new full-time jobs, salaried or contracted, with health benefits and competitive pay for salaried positions.

New $20M Program Aims to Boost Montgomery County, Maryland’s Economy (WTOP News) Maryland’s Montgomery County need to compete has prompted the introduction of a $20 million package designed to give businesses incentives to come to and stay in the county while attracting employees to high-paying jobs. The elements of the Jobs, Opportunities and Business Support (J.O.B.S.) Initiative includes three parts: a $10 million job creation fund, a $7 million innovation fund and a $3 million equity fund. The job creation fund has the potential to create 1,000 new high-paying jobs and generate up to $161 million in additional economic output.

Incentives for Electric Vehicle Production in Illinois (Electrek) After announcing its compact, more affordable R2 electric SUV production will kick off in Illinois, Rivian is poised to earn additional incentives with plans to expand its Normal, Illinois, EV plant. Despite initial plans to build R2 at its new $5 billion EV plant in Georgia, Rivian said the move will save $2.25 billion while speeding up R2’s launch. Illinois looks to double down on the EV maker with new expansion plans at its Normal facility. The State of Illinois is working with Rivian for additional incentives as it prepares to build R2 in the state. The move is more to get out R2 quicker. Rivian said it will expand the plant to support up to 215,000 units of annual production capacity, up 43% from the previous 150,000 target.

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 SEDE Steering Committee includes: Sandra Watson (AZ), Chair; Joan Goldstein (VT), Vice-Chair; Kurt Foreman (DE); Kevin McKinnon (MN); Christopher Chung (NC); Andrew Deye (OH); Sophorn Cheang (OR); Adriana Cruz (TX); and Mike Graney (WV).

Allison Ulaky of the Center for Regional Economic Competitiveness (CREC) 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.

State Economic Development Executives Network (SEDE)

State Economic Development Bulletin – Issue 67, Mar 2024

HEADLINES