Tribal Engagement 101 for Economic Development Districts (NADO) This new NADO publication provides an introductory overview of tribal engagement strategies for staff at Economic Development Districts (EDDs). EDDs and Tribal Nations frequently have shared interests and often have opportunities to partner on projects that deliver economic development to their overlapping communities.

Next Funding Round of $504M for 12 Tech Hubs (EDA) Another round of funding of approximately $504 million in implementation grants to 12 Tech Hubs was announced with the hope that these Hubs will scale up the production of critical technologies, create jobs in innovative industries, strengthen U.S. economic competitiveness and national security, and accelerate the growth of industries of the future in regions across the United States. EDA has selected these 12 projects for funding, with award amounts to be finalized in the coming months.

Announcement of First CHIPS R&D Facilities (NIST) The Department of Commerce and Natcast announced the processes for selecting the first three research and development (R&D) facilities funded through the CHIPS and Science Act. The facilities include a Prototyping and National Advanced Packaging Manufacturing Program (NAPMP) Advanced Packaging Piloting Facility, an Administrative and Design Facility, and an Extreme Ultraviolet (EUV) Center. The Department and Natcast expect to announce information at a later date about the process for selecting affiliated technical centers. The site selection process will begin soon. These facilities will address critical gaps in the current ecosystem, offering unparalleled value to a diverse array of stakeholders across the semiconductor value chain, including universities, small businesses, large manufacturers, and government agencies. The Department and Natcast intend for the Administrative and Design Facility to be operational in 2025, the EUV Center by 2026, and the Prototyping and NAPMP Advanced Packaging Piloting Facility in 2028.

State Alignment with Economic Development Districts (EDDs)

EDA Project Highlights (SEDE) The Center for Regional Economic Competitiveness (CREC) finished a three-year project funded by the U.S. Economic Development Administration (EDA) focused on strengthening alignment between states and Economic Development Districts (EDDs). This project included an analysis of the $1 million Statewide Planning Grants, a nine-month long Policy Academy, development of data and web products such as the State and Local Economic Development Strategy (SLEDS) database, and other webinars and reports. All of these deliverables and resources can be found on the SEDE website under the State-Local Alignment tab, found here.

SEDE SelectUSA Meeting a Success (CREC) The State Economic Development Executives (SEDE) Network held its Summer Meeting on June 24th, 2024, in Washington, D.C. alongside the SelectUSA event. The meeting was led by Sandra Watson, President and CEO of the Arizona Commerce Authority. Top state economic development leaders and their deputies discussed various issues, including advancements in tech hubs, semiconductor industry growth, clean energy, political and fiscal challenges, and emerging issues like childcare and workforce housing. Other topics of conversation included the growing importance of site location in rural areas, navigating changes in the legislature, and public-private partnerships. Nathan Ohle (President and CEO, IEDC) presented the IEDC strategic plan and discussed federal collaborations, while workforce development issues were highlighted by Brad Conrad (Education and Workforce Development Manager, Manufacturing USA) and Manny Lamarre (Deputy Assistant Secretary, Employment and Training Administration). The next SEDE meeting is tentatively set for December 9^th in Phoenix, Arizona immediately preceding the SSTI Annual Conference.

*Economy 💰*

Key Takeaways from the June Jobs Report (CNN) The U.S. Bureau of Labor Statistics reported that 206,000 jobs were added in June. The unemployment rate moved a little higher, up 0.1% to 4.1%, marking the first time since November 2021 that the jobless rate was above 4% reflecting that more workers are joining the labor force. Growth was largely concentrated in government and health care. Wage growth cooled as anticipated, with average hourly earnings rising 0.3% for the month and slowing to 3.9% on an annual basis, its lowest rate in three years.

Strength of U.S. Economy Will Support Global Growth of 2.6% this Year (Associated Press) The World Bank estimates that the global economy will expand 2.6% this year on the strength of sustained growth by the U.S. economy. The bank’s latest outlook marks an increase from the 2.4% growth it had predicted in January, and it would match the global economy’s 2.6% expansion in 2023. Stronger-than-expected growth in the United States — the world’s biggest economy — accounted for 80% of the World Bank’s upgraded outlook. The agency now expects the U.S. economy to expand 2.5% in 2024, the same as in 2023 but up sharply from the 1.6% the bank had predicted in January.

*Trade 📈*

How Trade-Oriented is the U.S. Economy? (Marketplace) Last year, the United States exported $258.2 billion worth of goods and services and imported $320 billion, according to the Bureau of Economic Analysis. But despite those big numbers, the U.S. economy is far less trade-oriented than many other countries around the world. A World Bank analysis using data from 2022 found the U.S. trade-to-GDP ratio — the value of imports and exports as a percentage of the country’s gross domestic product — was 27%. For comparison, the global average is 63%. Some places with high trade ratios, like Singapore and Hong Kong, serve as international trade hubs. Their small size relative to the amount of international goods moving through them means that trade makes up a high percentage of their GDP. The U.S., while importing and exporting hundreds of billions of dollars’ worth of goods and services ever year, also produces a lot of goods that are consumed domestically and has a lot more consumers than these international hubs, which contributes to this difference.

Connecticut is Getting a New Trade Commission (Hartford Courant) Seeking to increase trade opportunities overseas, state officials are establishing a new Connecticut-Ireland Trade Commission. The governor recently signed a bipartisan bill to create a 23-member commission that will begin meeting in the fall after the members are chosen over the coming months. About 20 states have established similar trade commissions. The new law states that the commission will have the power “to advance bilateral trade and investment between the state and Ireland; to initiate joint action on policy issues of mutual interest to the state and Ireland; to promote business and academic exchanges between the state and Ireland; to encourage mutual economic support between the state and Ireland and to encourage mutual investment in the infrastructure of the state and Ireland.”

*Industry Trends 💡*

CHIPS for America to Invest Up to $1.6B to Accelerate U.S. Capacity Advanced Packaging (SSTI) The U.S. Department of Commerce recently issued a Notice of Intent (NOI) to open a competition for new research and development (R&D) activities to accelerate domestic capacity for semiconductor advanced packaging. As part of CHIPS for America, the National Advanced Packaging Manufacturing Program plans to invest up to $1.6 billion to fund innovation in five R&D areas related to semiconductor advanced packaging. The program anticipates making several awards of approximately $150 million in each research area. According to CHIPS for America, advanced packaging is crucial for advancements in semiconductor technology. It will allow manufacturers to improve system performance, function, time to market, physical footprint, power consumption, and cost reduction. The National Advanced Packaging Manufacturing Program’s goal is to create a domestic packaging industry that leads in innovation and enables the packaging of advanced node chips within the United States.

Nearly $2B to Support American Auto Workers, Convert Facilities for Electric Vehicles (MESC) The U.S. Department of Energy (DOE) announced $1.7 billion to support the conversion of 11 shuttered or at-risk auto manufacturing and assembly facilities across eight states—Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia—to manufacture electric vehicles and their supply chain. These investments will create and retain thousands of good-paying union jobs and support the American auto communities that have driven the U.S. economy for generations. The Domestic Manufacturing Auto Conversion Grants program helps ensure that the U.S. continues to lead the world in auto manufacturing, led by the communities and workers who know this business best. The selectees will negotiate for awards to enable them to manufacture products covering a broad range of the automotive supply chain, including parts for electric motorcycles and school buses, hybrid powertrains, heavy-duty commercial truck batteries, and electric SUVs.

Six States Perform Around 90% of Semiconductor Business R&D (NCSES) U.S. research and development (R&D) performed by the semiconductor and other electronic components manufacturing reached $47.4 billion in 2021, an increase of 9.8% from 2020 in current dollars. Nearly all the expenditures were company funded and 51% of this private R&D was performed in California. The next five states, which include Oregon, Arizona, and Texas, had a combined share of 38%.

The Emerging Geography of Electric Vehicle Production (Federal Reserve Bank of Chicago) The automotive industry has embarked on a major transition from manufacturing gas-powered vehicles to producing electric vehicles (EVs). In this article, the implications of this shift are analyzed for the industry’s production footprint across North America, comprising Canada, Mexico, and the United States, between 2023 and 2029. The emerging geography of battery electric vehicle (BEV) production facilities is compared with the existing distribution of internal combustion engine (ICE) vehicle production facilities across the region.

*Workforce ⚒️*

Department of Commerce Invests $4M for Workforce Development Facility in Arizona (EDA) The U.S. Economic Development Administration (EDA) has awarded a $4 million grant to the Pascua Yaqui Development Corporation in Tucson, Arizona. The grant will support workforce development at the Pascua Yaqui Reservation and surrounding community and fund construction of a 3,200-square-foot workforce development facility and the acquisition of heavy equipment to facilitate training in the construction trades. This EDA investment is expected to create 135 jobs, according to grantee estimates.

Innovative Workforce Programs Ensure Bio-Manufacturing Success (Business Facilities) In 2019, the North Carolina Biotechnology Center partnered with Thermo Fisher Scientific to launch a pilot program for the Pharma K12 Workforce Development Training Initiative. The program enables high school graduates to participate in two and a half days of pharmaceutical manufacturing training at the North Carolina Pharmaceutical Services Network at Pitt Community College. They can do it as soon as the week following graduation. Along with learning good manufacturing practices, students gain hands-on experience with equipment. Now four years after the program started, 24 of the high school participants have been hired full-time, with 21 of them still working at Thermo Fisher Scientific in life-science related occupations. A recent grant from the U.S. Economic Development Administration will enable the program to expand to 96 students over the next three years. For bio-manufacturing companies looking to locate or expand in North Carolina, these and other innovative training programs provide assurance that a skilled and ready workforce can continue to drive success well into the future.

VA Receives $17M for Apprenticeship Programs (WAVY Norfolk) The U.S. Department of Labor is providing more than $17 million in federal funding to expand registered apprenticeship programs as well as support other workforce developments in Virginia. The funding is expected to be distributed to the Virginia Department of Workforce Development and Advancement to support the expansion of apprenticeships in target industries; the Hampton Roads Workforce Council to support public-private partnerships to better workforce in in-demand fields; and Northern Virginia Community College to support public-private partnerships that serve a range of industries.

Solving the Skills Gap: Trade Schools and Programs in Southern Nevada (Las Vegas Weekly) Blue-collar workers like HVAC technicians, electricians, plumbers and welders are essential to Vegas’ existence. While it’s difficult to imagine these workers disappearing entirely, industry groups warn that the labor pool is experiencing a shortage that could worsen in the coming decades. One of the pathways to a career in the trades is through an apprenticeship, which allows students to earn while they learn. Southern Nevada has secured nearly $7 million to build the Historic Westside Education and Training Center to support the College of Southern Nevada and the City of Las Vegas to provide credentialed job training programs in advanced manufacturing, health care, technology, and construction trades, which will help develop more careers in these fields to meet local demand.

*Business Finance and Incentives 📊*

Ohio Business Expansions Creating 345 Expected New Jobs (Dayton Daily News) Dayton-area business have been approved for Ohio tax credits and expect to create a total of 345 new jobs. One of these companies is locomotive and mining equipment manufacturer Dayton-Phoenix Group who expects to create 115 full-time jobs, generating $5.5 million in new annual payroll. in exchanges for a 1.3% credit on new Ohio payroll related to the project location for eight years.

Expansions Into Utah Establish 87 Jobs, $229M Investment (Business Facilities) Bridor, a baked goods manufacturer, plans to bring 87 new, high-paying jobs and invest nearly $229 million to rural Utah over the next 13 years. Bridor North America has four plants: two in Québec, Canada, and two on the U.S. East Coast. It employs around 1,200 people. Another expansion in Utah comes from international Battery Metals, a company that announced its commencement of operations of its commercial proprietary modular direct lithium extraction (DLE) plant in Utah – an industry landmark representing the first lithium produced from the only modular DLE operation in the world and the first commercial DLE operation in North America.

Expansion of Two Manufacturing Plants with $23.8M Investment in South Carolina (Plant Services) Schneider Electric has announced plans to expand manufacturing in Oconee and Richland counties in South Carolina. The company, which focuses on energy management and automation, will invest $23.8 million into both projects, creating 280 new jobs for the communities. The Oconee plant produces low-voltage motor control centers, panelboard box and trim, and lighting and PowerLink panelboards, while the Richland facility manufactures NW breakers, low-voltage switchgear and switchboards. 130 new jobs will be added to the Oconee facility, while 150 new jobs will be created for the Richland plant.

$1.5M Expansion for Pennsylvania Manufacturing Company (Lehigh Valley Business) Pennsylvania is investing $1.5 million through a Pennsylvania First Program grant and up to $428,000 in a Workforce and Development Network grant to train workers to support the Lehigh Valley-based manufacturing company Victaulic. Victaulic is the originator and world’s leading producer of grooved mechanical pipe joining and flow control systems. The company’s $100 million expansion project will create at least 214 new, full-time jobs and retain an additional 1,611 jobs across Pennsylvania.

Expansion of 1,000 Jobs Touted as Biggest Life Sciences Investment in NC (Carolina Public Press) Novo Nordisk, a Danish pharmaceutical company and developer of obesity and diabetes drugs, recently announced plans to expand its manufacturing operations in Clayton, North Carolina with a $4.1 billion investment in a new 1.4 million-square-foot facility. It is described as the biggest life science investment in North Carolina. Novo Nordisk already employs 2,500 people in Clayton across its three existing facilities. The new addition will come online sometime between 2027 and 2029 and create an additional 1,000 jobs. These jobs will be everything from high-level management, middle management, highly skilled scientists, chemists, engineers, to product testers. The company partners with high schools and community colleges in the area on a BioWork certification that allows high school graduates to get entry-level jobs at their manufacturing facilities.

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 71, July 2024

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