State Economic Development Bulletin – Issue 75, November 2024

Issue 75, November 2024

HEADLINES

SEDE News 🗞️

News

Economy 💰

Trade 📈

Industry Trends 💡

Workforce ⚒️

Business Expansions and Incentives 📊

SEDE News 🗞️

News

SEDE Hosts Meeting for Top Executives (SEDE) The State Economic Development Executives (SEDE) Network is holding its Winter meeting for state economic development executives or their top deputy in Phoenix on December 9th. Although the event precedes the SSTI Annual Conference, the two events have separate registrations. Sandra Watson, the SEDE Chair and President/CEO of the Arizona Commerce Authority will be hosting the meeting. The agenda will include discussions of current issues facing states like federal and state administration transitions and AI applications in economic development. Much of the meeting will be dedicated to opportunities for networking among the state economic development commissioners, secretaries and executive directors or their top deputy. Top leaders or their deputy can offer input on the agenda and register here.

Commerce Announces 12,000 American Workers Placed into Jobs Through Good Jobs Challenge (EDA) The U.S. Department of Commerce’s Economic Development Administration (EDA) announced more than 12,000 American workers have been trained and placed into jobs through the Good Jobs Challenge. The Good Jobs Challenge is designed to build and strengthen workforce systems and industry-led partnerships, providing new opportunities and training for America’s workforce to develop in-demand skills that meet the needs of today’s employers and lead to good-paying jobs. In July 2024, EDA announced a second phase of funding for the Good Jobs Challenge to invest $25 million into workforce training programs targeted to jobs that advance industries critical to U.S. competitiveness. EDA anticipates making 5-8 awards ranging from $1 million to $8 million. Grantees are expected to be announced in winter 2024.

NSF Announces Three New I-Corps Hubs (NSF) The U.S. National Science Foundation announced the addition of three new NSF Innovation Corps (NSF I-Corps) Hubs that will scale the NSF-led National Innovation Network (NIN), accelerating the translation of discoveries into new solutions that benefit society and the economy. Each NSF I-Corps Hub comprises a regional alliance of at least eight universities and may receive up to $3 million per year for five years. Combined with the existing 10 NSF I-Corps Hubs, these 13 NSF I-Corps Hubs presently span 48 states. The three new NSF I-Corps Hubs are in the Northwest region, Southeast region, and New England region.

Record-Shattering 20 Million Business Applications Filed (SBA) New data from the U.S. Small Business Administration shows that entrepreneurs have filed more than 20 million applications to operate a business, an all-time high for any four-year period on record. Since the start of the Biden-Harris Administration, there have been more than 20 million new business applications with an average 441,453 filed each month – a rate over 91% faster than pre-pandemic averages. This historic small business boom has been driven by women and people of color, with data showing Black business ownership doubling since 2019, Latino business ownership at the highest level on record, and the number of women-owned businesses is increasing at nearly twice the rate of male-owned businesses.

Economy 💰

Economic Growth Unexpectedly Decelerated in Third Quarter (Investopedia) The U.S. economy grew in the third quarter of 2024, coming in a bit slower than expected due to the stagnant housing market dragged down the country’s overall output. The inflation-adjusted Gross Domestic Product grew at an annual rate of 2.8% in the third quarter, decelerating from 3% growth in the second quarter, the Bureau of Economic Analysis said. A 5.1% drop in residential investment dragged growth down. However, consumer spending rose 3.7%, the fastest growth since the first quarter of 2023. The continued growth, especially the uptick in consumer spending and tame inflation, suggests the economy is running smoothly for the time being and that the Federal Reserve’s efforts to subdue inflation while preserving the job market are going well.

U.S. Small Businesses: Recovery Continues, a National Initiative Gains Steam (Fed Communities) The State Small Business Credit Initiative, or SSBCI, is a 10-year, nearly $10 billion program administered by the US Treasury that provides recipient jurisdictions with funding for two things: credit and investment programs for existing small businesses and start-ups (Capital Program); and technical assistance to small businesses applying for SSBCI funding and other government small business programs (Technical Assistance Grant Program). Nationally, since the first transactions in 2022, participating jurisdictions have expended more than $750 million of $8.7 billion approved applications for capital programs, supporting 3,600 small businesses. On average across lending programs, jurisdictions expect to leverage $10 of private investment for every $1 of SSBCI capital program funding. Most of the programs’ funds have yet to be expended, but given the long tail of SSBCI, establishing connections early and often to other programs in other states is particularly important to navigate the complexities of implementation and leverage best practices. Learn more at the newly released SSBCI Annual Report.

Boston Marathon Gives $500M Lift to Massachusetts Economy (Bloomberg) The Boston Marathon delivered a more than $500 million economic windfall to the Massachusetts economy this year. That total reflects spending on lodging, food, shopping and entertainment by both participants and spectators as well as knock-on benefits to local businesses, according to a report released by the University of Massachusetts Amherst’s Donahue Institute. This is the first year that the institute has conducted the study, which is based on a survey of participants and spectators and also accounts for operational expenses for the Boston Athletic Association, the race organizer. About half the fans and more than 80% of the runners at this year’s marathon traveled from outside New England, and the median spend for visitors who stayed overnight in Boston was $500, in addition to hotel costs, the researchers found.

Trade 📈

Special Economic Zones: Catalysts for Trade and Economic Development (Forbes) Often overlooked by trendspotters chasing the big business angle of the moment, special economic zones (SEZs) have long been cornerstones of international trade. Also known as free trade zones (FTZs) or industrial parks, these government-backed geographic areas are designed to attract investment and spark economic growth through fiscal and regulatory incentives. They provide world-class infrastructure support, which includes everything from reduced corporate tax rates and streamlined land access to exemptions on import and export duties, expedited customs processes and more flexible labor laws. Strategically positioned near key transportation hubs like ports, airports and major highways, they make it easier to move goods. By relocating production and other critical business operations closer to U.S. markets, American companies can not only reduce risk but respond more swiftly to market shifts.

Energy Trade: A New World is Being Born But Will Need Help to Grow Up (Real Clear Energy) A new report from the International Energy Agency (IEA) provides the fullest glimpse yet at the new global energy trade system. The report traces production and international trade in solar panels, electric vehicles (EVs), wind turbines, heat pumps, and hydrogen electrolyzers as well as key components that go into them like EV batteries. The new global energy economy is intrinsically more secure than the old one. But more secure does not mean entirely secure:  the new trade system brings with it new risks, which includes China dominance, access to raw materials, protectionism, and that the growth of the new energy trade system will be stunted because it fails to become attractive enough to pull in the entire world.

Industry Trends 💡

The Future of Manufacturing: Technology Trends for 2025 and Beyond (Forbes) The manufacturing industry is entering a new era of transformation, driven by technological advancements and the need for greater adaptability. As businesses face evolving global challenges, software innovation is reshaping traditional processes, creating opportunities for enhanced efficiency, sustainability and resilience. Potential future trends include prioritizing sustainability with green software engineering, AI powering innovation and growth, and decentralized manufacturing. In 2025, digital factories will become the backbone for innovation initiatives, with 67% of industrial manufacturers already in the midst of such transformation. For manufacturers to fully embrace smart manufacturing, however, they’ll need to bridge the gap between operational technology and information technology systems. The integration is critical for benefiting from the full potential of these technologies, but it also expands the potential for cyber threats. As the industry evolves, companies that invest in forward-thinking technologies and sustainable practices will be better equipped to capitalize on emerging opportunities.

Nevada Lithium Summit Aims to Connect Leaders to Industry (2News Nevada) Nevada held the inaugural Nevada Lithium Summit, an event aimed to foster collaboration between professionals across the industry and connection with local leaders. Lithium powers a lot of our technology, but most of it is currently mined outside of the United States. Earlier this year, the federal government authorized a $700 million conditional loan to Australian company Ioneer to build a lithium mine about 40 miles south of Tonopah, at the Rhyolite Ridge mine in Esmerelda County. The Summit was an opportunity for Nevada to discuss fulfilling a critical role in energy transitions.

Manufacturing Jobs Boom Not Reaching Places Hit by the China Shock (Agglomerations) Glitzy investment announcements from businesses that make everything from electric vehicles to semiconductors — paired with enormous growth in manufacturing construction — might also give the impression that a flourishing new era of manufacturing employment, in which the sector recovers some of its faded prominence as a large source of good-paying jobs, has just begun. While this recovery has been impressive in historical terms, there is no sign yet that we are witnessing a fundamental break from the sector’s long-run decline as a source of employment for American workers. The faster-than-usual jobs recovery in the manufacturing sector may still have challenges that will confront any policymaker who wants to revive manufacturing job growth.

Recent Trends in the Demand for AI Skills (Fed. Reserve of Atlanta) Recent advances in artificial intelligence (AI), and generative AI, have led to an explosion of commercial and public interest in these technologies. The latest AI tools are both more powerful and can accomplish a wider range of tasks than their predecessors. Importantly, they are also more accessible. This blog post leverages online job postings from Lightcast to document how the demand for AI skills has evolved. The demand for AI skills has been rising over time, and this trend seems to be accelerating. The fact that the demand for AI skills has increased in tech jobs is not surprising. What is striking, however, is that the demand for these skills is rapidly increasing in many other jobs as well. It is still too early to tell whether AI technologies will end up revolutionizing the future of work or not, but the evidence suggests that AI is starting to have a meaningful impact on a growing number of jobs.

Workforce ⚒️

State Incentives Support U.S. Apprenticeship Growth (Smart Incentives) Apprenticeships continue to grow across the U.S. The website Apprenticeship.gov reports there are over 680,000 apprentices in FY2025, a nearly 90% increase since 2014. State efforts to support apprenticeships are also expanding. In 2018, nine states were identified with incentive programs designed to encourage apprenticeships. Today, 19 states offer 22 tax credits or other types of incentive for apprenticeships. With National Apprenticeship Week starting November 17, it is a great time to catch up on incentives that are available. It is also important to see what researchers are saying about their effectiveness.

Workforce Development Strategies: 50-State Scan of Best Practices (The Center for American Progress) Workforce development has renewed focus at the state level as policymakers work to identify and execute strategies to expand the labor force, increase access to good jobs, and provide high-quality training and education opportunities for more students and workers amid a changing labor market and demand in certain critical sectors. This report provides a summary of best practices across a 50-state scan of workforce development-related state legislation from the 2023 and 2024 legislative sessions. These efforts are broad and span policies aimed at expanding opportunities across states’ diverse workforces. Findings show that states are responding to demand in critical industries, such as health care, manufacturing, technology, energy, and education. Investments in registered apprenticeships are also ramping up, along with bolstering career pathways in the K-12 education system. Policymakers and other state leaders facing similar challenges should watch this landscape to see which policies can help them achieve their workforce and economic objectives in the coming years.

What Parents Say About How Childcare Problems Affect Employment (Fed. Reserve of Chicago) There are about 60 million adults in the United States between the ages of 25 and 54 who live with at least one child under 18 years old. Roughly 50 million of these parents are in the labor force—either employed or actively seeking work—and they represent about 30% of the total U.S. labor force. Parents citing childcare problems as the main reason for not seeking a job, for working part-time rather than full-time, or for missing work in the past week are referred to as “childcare affected.” The analysis shows that mothers living with a child under five are more than twice as likely to be childcare affected, and it is estimated that if all childcare-affected parents were instead in the labor force, working full-time, and not missing work, the average total hours worked each week by all parents would increase by about 1%. Childcare problems can have a relatively large impact on employed parents’ ability to choose full-time rather than part-time work.

NKY Students Visit Local Manufacturing Companies to Expand Career Opportunities (NKY Tribune) Recently, nearly 800 private and public high school students throughout Northern Kentucky had the opportunity to visit more than a dozen local manufacturing companies and learn more about the pathways that lead to these careers. Gateway Community and Technical hosted 112 high school students for Manufacturing Day at their Boone Campus in Florence. Representatives from Gateway also visited multiple high schools to introduce students to NKY FAME and the Apprenticeship Academy, a work and learn opportunity for students interested in exploring a registered apprenticeship program in a technical field. NKY FAME is an advanced manufacturing technician program run through Gateway where students attend Gateway for their education, but also spend time working for a manufacturing company and receive paid working experience.

Georgia Tech Chip Design program Empowers the Apple Workforce of Tomorrow (TechRepublic) Apple began the New Silicon Initiative, a series of grants to tech-focused universities nationwide, to develop more skilled workers in designing and manufacturing chips. The initiative funds education and training in microelectronic circuits and hardware design. Eight universities participate, chosen for their engineering savvy and commitment to scaling up courses in creating integrated circuits. One participant is Georgia Tech’s School of Electrical and Computer Engineering. The full partnership will kick off in January 2025. Apple engineers will present guest lectures, review projects in several design courses, give feedback to students, and participate in mentorships and networking events. Apple also funds teaching assistants. Those mentors can answer students’ questions about what jobs will be available to them once they acquire chip design skills. Ultimately, the plan is to train and produce enough skilled workers through these programs to cross the skills gap that exists in the industry.

Free Job Training Program Touted for Adding Over 1,000 Jobs in Albuquerque (KOB4) A workforce program, credited with adding more than a thousand jobs to the Albuquerque economy in just a few years, is continuing to grow. Since the Job Training Albuquerque (JTA) Program began in 2020, it has helped 2,000 participants across 300 businesses and even allowed them to expand. JTA provides an opportunity for Albuquerque employers to skill up their workforce and provides an opportunity for employees to gain high-demand skills and industry specific credentials. JTA is a partnership between the City of Albuquerque and Central New Mexico Community College (CNM). Program funding is provided by the City of Albuquerque Economic Development Department and is administered by CNM Ingenuity.

Business Expansions and Incentives 📊

Sunnyvale, CA as Expected Location for Second CHIPS for America R&D Flagship Facility (NIST) The Department of Commerce and Natcast, the operator of the National Semiconductor Technology Center (NSTC), announced Sunnyvale, California as the expected location for the CHIPS for America Design and Collaboration Facility (DCF), an NSTC Facility. The expected facility will enable collaboration among industry leaders, academia, investors, and government partners and build on the local and national ecosystem by providing convening space, workforce best practices and initiatives developed through the NSTC Workforce Center of Excellence. It will also provide NSTC members access to valuable physical and digital assets to develop next-generation semiconductor technologies for increasingly demanding end uses, such as AI and 5G. The proposed DCF will be one of the flagship R&D facilities for CHIPS for America, which are designed to benefit the NSTC community and provide critical technologies for researchers nationwide. The Department and Natcast expect to announce information at a later date about the process for selecting affiliated technical centers.

Five Life Sciences Companies Announce Expansions in Connecticut (Advance CT) AdvanceCT announced that five life sciences companies are expanding their operations in Connecticut. Cellsbin, an oncology detection medical device manufacturer. Will invest roughly $1 million and add five members to their staff. EpiTET Therapeutics, set up their first office at District in New Haven. The company will grow by 10 jobs and invest $8 million in the state as it continues through its pre-clinical and fundraising process. Biotechnology R&D company NanomediGene will create 10 new jobs and invest more than $3 million in their new lab space. Oxylus Energy will be adding 6 jobs to its headcount and investing $4.5 million in the town of Branford. Finally, Talam Biotech, an agricultural R&D company, is committed to building out their existing team and investing in new R&D capabilities. As a national leader in National Institutes of Health funding, bioscience patents, and bioscience venture capital investments per capita, Connecticut and AdvanceCT remain ready to assist any life sciences company that is looking to accelerate their growth.

AstraZeneca Plans Major $3.5B Expansion Drive in the U.S. (GlobalData) AstraZeneca has announced a $3.5 billion investment to expand its research and manufacturing capabilities in the United States. As part of this expansion drive, $2 billion will be invested in creating more than 1,000 new jobs. The company will build a new research and development center in Kendall Square, Cambridge, Massachusetts, a new biologics manufacturing facility in Maryland and expand specialty manufacturing in Texas. Additionally, it will also increase its cell therapy manufacturing capacity on the West and East Coasts. These investments are part of the company’s goal to achieve $80bn in total revenue by 2030. In the US, AstraZeneca has approximately 17,800 employees working across 17 R&D, manufacturing and commercial sites spanning 12 states.

Conduction Tech Company Commits to $1.1M Expansion in Charleston County (Charleston WCSC-TV) Charleston-based OhmIQ says it is expanding its operations within Charleston County at a new 10,000-square-foot facility on Faber Place Drive in North Charleston. That new facility serves as the company’s global headquarters and research and development center. OhmIQ has a patented ohmic heating technology to electronically heat liquids and other substances quickly and uniformly. It licenses technology to businesses in industries including food and beverage, chemical processing, and textiles. The $1.1 million investment will also add 21 new jobs.

Ohio Founded Company Expanding with $1.1M Investment (WTRF Wheeling) AMfg Labs, in collaboration with JobsOhio, Ohio Southeast Economic Development (OhioSE), and Belmont County Port Authority, announced an investment of over $1.1 million to expand its operations in Belmont County, creating 15 new jobs. AMfg Labs is an Ohio-founded company creating American-made products critical to the U.S. industrial sector and national defense. The investment is being supported by a $350,000 JobsOhio Revitalization Grant. The JobsOhio Revitalization Program offers loans and grants to bridge the financial gap between the appealing cost of brownfield sites and the cost of site redevelopment. This program mitigates financial risk and accelerates projects, returning land and buildings to productive use more efficiently.

 

 

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); Hope Knight (NY); 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.