June 7: Update on the NSF Regional Innovation Engines (SEDE) SEDE is hosting a May 30^th webinar to allow NSF to update attendees on the NSF Regional Innovation Engines initiative. The NSF Engines program will provide up to $160 million to each Regional Engine for up to 10 years to support the development of diverse regional coalitions to engage in use-inspired research and development, translation of innovation to society, and workforce development — with the goal of growing and sustaining regional innovation ecosystems throughout the U.S. State and local governments, non-profit organizations, higher education institutions, for-profit organizations are eligible to apply, meaning your organization may be able to apply as a lead and/or partner with an eligible applicant. Register here.

News

Statewide Planning Grant Survey and Interview Report (SEDE) The Economic Development Administration (EDA) supported states in economic planning efforts by allocating $59 million in grants through the Statewide Planning Grants to 59 states, territories, federally recognized areas, and the District of Columbia. The Center for Regional Economic Competitiveness (CREC) was awarded a grant from EDA to gain additional insights into the Statewide Planning Grants by conducting a follow-up survey in 2023 along with one-on-one interviews with all 59 recipients. The State of the EDA Statewide Planning Grants Report details CREC’s findings from the follow-up survey and individual interviews. This report and other items related to the Statewide Planning Grants can be found here.

Statewide Planning Grant Convening (SEDE) In March 2024, CREC hosted a convening of Statewide Planning Grant grantees in Arlington, Virginia to not only share research findings, but to provide an opportunity for state and EDD leaders to discuss project activities, roadblocks, and state-EDD alignment. The two-day convening brought together state and EDD leaders from 18 states to engage and learn about other SPG projects. A blog summarizing the event can be found here.

Strengthening EDD-Higher Education Partnerships (NADO) As part of the NADO Research Foundation’s Economic Development District Community of Practice (EDD CoP), the University Economic Development Association (UEDA) has created resources to highlight best practices and case studies for encouraging collaborative partnerships between EDDs and higher education institutions. These include a Tip Sheet for Research, Partnerships, and Technical Assistance Between EDDs and Higher Education Institutions, and two case studies; the first titled Utah Post-Secondary Educational Partners and Future Ready Utah and the other on Resilient Areas and Equitable Regions: A Case Study of Virginia Tech and New River Valley Commission. These resources share lessons for improving relationships between EDDs and universities.

USDA and EDA Update Resources in Joint Guide to Boost Rural Communities (USDA/EDA) The Stronger Together: Federal funding and planning opportunities designed to promote sustainable economic development in rural America guide has been updated to provide a summary of EDA and USDA Rural Development programs that can be used to support common rural development strategies. The guide is separated into four key focus areas: Planning and Technical Assistance, Infrastructure and High-Speed Internet Expansion, Entrepreneurship and Business Assistance, and Workforce Development and Livability. The guide is designed to help eliminate barriers and encourage collaboration among stakeholders by stacking and leveraging resources.

BEAD Report: Grading States’ Initial Proposals for Federal Broadband Funds (ITIF) If all goes well, the $42.5 billion in BEAD funding that Congress allotted in the Infrastructure Investment and Jobs Act should be enough to extend broadband coverage across the country. But it will depend on how states and territories use the money. There are three major criteria that state policymakers and federal administrators should focus on to ensure BEAD finding is used to the greatest possible benefit: States should plan to rely on a range of technologies to maximize their broadband coverage, states should create a streamlined regulatory environment that minimized funds wasted, and states should articulate a plan for digital inclusion within their BEAD plans.

*Economy 💰*

SSBCI Report Shows Funds Flowing to American Small Businesses (Smart Incentives) The State Small Business Credit Initiative (SSBCI) is a $10 billion federal program administered by the U.S. Department of Treasury that provides funding via state and tribal governments for small business lending and equity investment programs. This article describes the funding allocation and deployment thus far. As of now, 54 state and territory capital programs have been approved by Treasury, with $1.1 billion disbursed to small businesses by jurisdictions. SSBCI technical assistance programs will complement these capital programs in the coming months.

Shovel-Ready Status Gave Polar Semiconductor an Edge in CHIPS Act Funding (Finance & Commerce) Polar Semiconductor is not wasting time getting started with the $525 million expansion of its manufacturing facility in Minnesota, a project that’s advancing with help from a familiar construction partner and $195 million in recently announced federal and state money. The ability to move quickly gave the company an edge in competing for money from the federal CHIPS and Science Act. Other projects seeking federal money involve new construction, which can take three to five years to complete. Polar says the project will double the company’s U.S. production capacity of semiconductor “wafers,” expand and modernize the facility with new automation and AI capabilities, and create more than 160 new jobs, including 60 construction jobs.

U.S. Job Market Eases but Hiring Remains Firm (The NY Times) Employers added 175,000 jobs in April, a milder pace than experienced during past winter. A less torrid expansion after the 242,000-job average over the prior 12 months isn’t necessarily bad news, given that layoffs have remained low and most sectors appear stable. The labor market has defied projections of a considerable slowdown for over a year in the face of a rapid escalation in borrowing costs, a minor banking crisis and two major wars. But economic growth declined markedly in the first quarter, suggesting that the exuberance of the last two years might be settling into a more sustainable rhythm.

*Trade 📈*

What U.S.-China Trade Looks Like by Sector (Reuters) China relies on the U.S. for agricultural products like soybeans and semiconductors, while electronic equipment and machinery are the top imports from China. The article includes a list of top exports and imports between the two countries by sector. Machinery and Mechanical Appliances leads the list, making up 46.40% of total imports from China. This portfolio may be affected by a bundle of steep tariff increases on an array of Chinese imports including electric vehicles, computer chips, and medical products was unveiled by the United States in April.

*Industry Trends 💡*

Responding to the Childcare Needs of Shift Workers (Federal Reserve Bank of Chicago) This article reviews a range of current and past child and family care options offered to address the needs of shift workers, with examples from the automotive industry. Automotive employers were among the first U.S. employers to offer on-site childcare and family care benefits to address the childcare challenges. The most common childcare benefit offered by automakers and suppliers is a combination of discounts and referrals (such as those offered by Ford, GM, and Stellantis) plus reimbursements and subsidies. According to the National Survey of Early Care and Education, just 8% of U.S. childcare centers offer 24-hour or weekend options for parents, even though 13% of all working parents with children under age 13 work non-standard hours.

Billions in Chips Grants are Expected to Fuel Industry Growth (The NY Times) The United States will triple its domestic chip manufacturing capacity by 2032, the largest increase in the world. Much of the growth will be fueled by the CHIPS Act, but the U.S. is also expected to see a substantial boost in the domestic production of advanced logic chips, which are used for artificial intelligence, smartphones, and autonomous vehicles. Still, challenges remain. A lack of construction workers, technicians and electricians could make it more difficult for companies to build and operate manufacturing plants. Sustained support may be necessary to further strengthen America’s semiconductor manufacturing capacity.

Energizing the Game Changers: How to Grow the Renewable Energy Workforce (Forbes) Driven by the need to decarbonize and increase efficiencies, as well as the Inflation Reduction Act and other policies, the renewable energy industry has grown exponentially in the last few years. The trick, now that we have gained so much speed in such a short period of time, is to sustain the momentum. Workforce is the main challenge to support the industry. One step is to hire locally whenever possible to create job opportunities for the local workforce and businesses. Strengthening the talent pipeline by investing resources with higher education institutions and mentorship programs is also important. Bringing in the younger generation will be key to reaching net-zero goals.

Mass Timber Rising: The Story of Mass Timber in the Pacific Northwest (Oregon Mass Timber Coalition)

The Oregon Mass Timber Coalition launched a video narrating the story of mass timber in the Pacific Northwest. Through strategic partnerships, mass timber can solve the region’s three grand challenges: affordable housing, forest health, and economic opportunity. The Oregon Mass Timber Coalition creates equitable economic development and family-wage rural and urban jobs from sustainable wood products grown and manufactured in Oregon. The full video can be found here.

*Workforce ⚒️*

Heartland Visas: A Policy Primer (Economic Innovation Group) The United States has benefited tremendously from skilled immigration. Yet the enormous benefits of skilled immigration are not reaching many communities across the heartlands which fueled the Heartland Visa proposal. The initiative recommends giving communities the choice to opt-in to a new immigration pathway for highly skilled workers, entrepreneurs, and innovators. Prioritizing higher-earning applicants and those with local ties, the Heartland Visa would serve as a key component of economic revitalization in participating places. In exchange for living in a Heartland Visa community, workers with sufficient earnings will gain permanent residency, cutting through burdensome red tape and bureaucracy embedded in the status quo immigration system.

$7M Jackson Training Facility Will Offer Chance for Careers in Advanced Manufacturing (MLive) A new training facility near Jackson, Michigan aims to help prepare youths and adults for careers in manufacturing. The Jackson Area Manufacturers Association announced the purchase of a facility, with the plan to turn the space into the group’s new headquarters and use it as an advanced manufacturing training center. The new building will be focused on offering training and programs geared toward advanced manufacturing and Computer Numerical Control machines. It will include a precision machining lab, a welding lab, classroom spaces, robotics, 3D printers and metrology labs.

Leveraging Teacher Apprenticeship to Grow ESL and Bilingual Teacher Workforce (New America) Over the past two years, K-12 teacher apprenticeship programs have been registered in 34 states and Puerto Rico. While many of these programs are in the early stages, this moment offers an opportunity to develop approaches that both address specific teacher workforce needs that align with changing student demographics. Leveraging teacher apprenticeships could be a strategic way to reverse the trend in a decline in teachers certified to teach English learners.

Workforce Development Bill to Help Low-Income New Yorkers Land High-Paying Tech Jobs (AMNY) The Good Jobs Guarantee Act could unlock $1 billion in private funding for workforce development. The legislation was introduced in partnership with Pursuit, a workforce development company based in Long Island City that has a proven job training program for low-income New Yorkers. Pursuit’s fellows go through full-time training, with no upfront cost, before receiving job placements at leading tech companies. Officials estimate that the legislation will provide 24,000 low-income residents across the state with good-paying jobs over a ten-year period.

Pennsylvania Launches Pioneering Organic Inspector Apprenticeship Program (Rodale Institute) A $350,000 grant for the development of a first-in-Pennsylvania apprenticeship program was announced that will offer real opportunity to Pennsylvanians seeking in-demand careers as organic compliance inspectors in the agriculture industry. Rodale Institute, a prestigious agricultural research and education nonprofit based in Berks County and dedicated to advancing regenerative organic agriculture, plans to create an earn-as-you-learn registered apprenticeship program and develop a diverse pipeline of highly skilled professionals to serve the certified organic industry throughout the Commonwealth. Apprenticeship programs have traditionally served the building trades, and efforts to continue growing opportunities in the trades remains a top priority.

Hawaiʻi Announces $100K Grant to Support Construction Industry’s Future Workforce (MauiNow) The Building Industry Association (BIA) of Hawaiʻi has announced a strategic partnership with the Harry and Jeanette Weinberg Foundation to support the Youth Build Green Pre-Apprenticeship Construction Training Program (Green PACT). The $100,000 funding will support the building industry’s future workforce. The Green PACT training program is designed to equip unemployed and underemployed young adults with the knowledge and skills necessary for environmentally friendly construction employment in a training environment with financial support that allows underprivileged students to concentrate on their learning. Each Green PACT training spans three months and will accommodate two student group cohort trainings: 12 students in the fiscal year 24 cohort and eight students in the FY25 cohort for a total training initiative of 20 students and 2,500 training hours.

*Business Finance and Incentives 📊*

Amazon to Invest $11B in Indiana to Build Data Centers (Reuters) Amazon’s cloud-computing arm will invest $11 billion in Indiana to build data centers, marking the state’s largest capital investment, and promising at least 1,000 jobs. The new facilities will be built in St Joseph County in north-central Indiana and house computer equipment used to power cloud computing and generative artificial intelligence. Big technology companies have been racing over the past year to build data centers needed to power applications such as OpenAI’s viral ChatGPT as they try to capitalize on what is expected to be the industry’s next key growth driver. The Indiana Economic Development Corp (IEDC) will offer Amazon Web Services data center sales tax exemptions for eligible capital investments over a 50-year term.

Manufacturing Company Plans Expansion in Lexington, Creating 60 New Jobs (WEKU) Manufacturing company SRC of Lexington, Kentucky, is planning an expansion that would see 60 new jobs created. The manufacturer creates products for the construction and energy industry. They’re investing more than $15 million dollars into the project. The company says the expansion is meant to accommodate a growing demand from customers.

Commerce Invests $6.3M to Support Business Growth in Texas (EDA) The U.S. Economic Development Administration is investing $6.3 million in Texas to support business growth and workforce development following natural disasters in the state. One of the investments includes the Texas Biomedical Research Institute, San Antonio, which will receive a $2.5 million EDA grant to construct a multi-species veterinary care facility and support biomedical research. The project will be matched with $625,000 in local funds and is expected to create 445 jobs and generate $700 million in private investment, according to grantee estimates. These projects are funded under the Disaster Relief Supplemental Appropriations Act.

Tennessee Awards $14M in Business Incentive Grants (News-Herald) The Tennessee Department of Economic and Community Development is set to approve $14 million in incentives to businesses through its FastTrack program. The FastTrack grant program offers state grants to companies to help offset the costs of expanding or moving into the state with the goal of increasing the number of full-time jobs and the average wages of jobs in an area. For example, Greenheck Fan Corp. will receive $6.5 million toward a $300 million Knoxville corporate campus, which is expected to employ 440 new workers, including manufacturing and warehousing facilities and dedicated space for training and research and development.

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 69, May 2024

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