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Issue 76, December 2024
HEADLINES
SEDE News 🗞️
- 10 Big Wins from the EDA Reauthorization (SEDE)
- Nearly $71M to Continue Strengthening America’s Auto Communities and Manufacturing (DOE)
- NSF Announces Funding Opportunity to Expand the U.S. Workforce Across Key Technologies (NSF)
- Input on Strengthening Domestic Supply Chains for American-Made Semiconductors (The White House)
Economy 💰
- Inside EcoDevo Podcast on Missouri’s Statewide CEDS and Industry Cluster Assessment (Missouri Department of Economic Development)
- Older Adults and Economic Development: Planning for an Aging Population (NADO)
- New York Doesn’t Have Enough Housing. Why Is It So Expensive to Build? (The New York Times)
- Cities Cut Red Tape to Turn Unused Office Buildings Into Housing (Stateline)
Trade 📈
- Structured Pathway for Indo-U.S. Collaboration in Advanced Technology (Business World)
- U.S. Trade Deficit Shrinks on Decline in Imports (Reuters)
- Final Agreement Under Taiwan-U.S. Trade Initiative to Come Into Force (Reuters)
Industry Trends 💡
- Manufacturing Next-Gen Microchips in the Age of AI (Wired)
- Innovation Through Collaboration in Manufacturing (MachineDesign)
- Tech Trends 2025 (Deloitte)
- Washington State Creates Working Group to Target CHIPS Act Funding (Geekwire)
Workforce ⚒️
- How Americans Feel About Their Jobs in 2024 (Pew Research Center)
- Supporting Students To and Through College: What Does the Evidence Say? (The Brookings Institution)
- Mobile Manufacturing Lab Educates Students on Career Paths in Connecticut (WTNH Hartford)
- Milwaukee Apprenticeship Programs Receives Grant of $1.5M (Urban Milwaukee)
- Ramping Up the BEAD Workforce: 5 Things States, ISPs, and Construction Can Be Doing Now (NTIA)
Business Expansions and Incentives 📊
- U.S. Department of Commerce Invests $600,000 to Support Small Business Growth in Puerto Rico (EDA)
- Toyota to Invest $922M to Build New Facility in Kentucky (Louisville Courier-Journal)
- Virginia Manufacturing Facility Set to Receive $275M to Boost Domestic Chip Industry (WRIC Richmond)
- Boeing to Spend $1B on 787 Dreamliner Manufacturing Expansion (Investopedia)
- Aerospace Company Plans $108M Expansion, 300 New Jobs in Michigan (MLive)
SEDE News 🗞️ |
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10 Big Wins from the EDA Reauthorization (SEDE) By now, you probably have heard the good news – EDA reauthorization made it through both houses of Congress as part of the Water Resources Development Act! This reauthorization was 20 years in the making and will help transform EDA into a more modern-day economic development agency. This modernization should benefit states, economic development districts, university economic development professionals and others! Click here to read 10 big provisions which, may have a significant long-term impact on regional economic growth. Click here to read more from EDA.
Nearly $71M to Continue Strengthening America’s Auto Communities and Manufacturing (DOE) The U.S. Department of Energy (DOE) has announced $70.8 million in funding to support federal partnerships with state and local governments, aimed at boosting small- and medium-sized manufacturers (SMMs) in the automotive, battery recycling, and smart manufacturing sectors. These projects will upgrade manufacturing facilities to support advanced vehicles, improve battery recycling efficiency, and modernize state manufacturing bases, with a focus on disadvantaged communities. Key initiatives include $50 million for retooling vehicle manufacturing in five states, $11.5 million for battery recycling in seven locations, and $9.3 million to accelerate smart manufacturing in five states. The funding aims to strengthen domestic manufacturing, enhance clean energy efforts, and ensure broader access to emerging technologies.
NSF Announces Funding Opportunity to Expand the U.S. Workforce Across Key Technologies (NSF) The NSF Experiential Learning in Emerging and Novel Technologies (NSF ExLENT) program, launched by NSF in collaboration with the Micron Foundation, aims to expand workforce training in emerging technologies such as advanced manufacturing, microelectronics, and biotechnology. Offering up to $1 million in funding over three years, the program supports hands-on learning opportunities through cross-sector partnerships focused on workforce development. The ExLENT program features three tracks: “Pivots” for professionals seeking to transition into tech careers, “Beginnings” for those with limited tech training, and “Explorations” for participants with no prior tech experience. The initiative seeks to boost U.S. competitiveness by preparing a skilled workforce for technology-rich jobs. Proposals are due by February 24, 2025.
Input on Strengthening Domestic Supply Chains for American-Made Semiconductors (The White House) Two years after the CHIPS and Science Act, which aimed to strengthen U.S. semiconductor manufacturing, the Office of Management and Budget (OMB) is working to reduce the government’s reliance on foreign-made chips. As part of this initiative, the OMB is releasing a Request for Information (RFI) to explore ways to encourage government contractors, particularly in the IT sector, to use more domestically produced semiconductors. This effort aligns with the broader plan to revitalize U.S. semiconductor manufacturing and enhance national security by ensuring more chips are made in America by American workers. Click here to view the RFI.
Economy 💰 |
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Inside EcoDevo Podcast on Missouri’s Statewide CEDS and Industry Cluster Assessment (Missouri Department of Economic Development) The Missouri Department of Economic Development (DED) host a podcast, Inside EcoDevo, which gives an inside look into DED’s initiatives that are helping Missourians prosper. The most recent episodes focus on Missouri’s Comprehensive Economic Development Strategy (CEDS) and the state’s industry clusters. Click here to find all the episodes.
Older Adults and Economic Development: Planning for an Aging Population (NADO) The United States is experiencing rapid population aging, which is reshaping regional labor markets, healthcare demands, consumer spending patterns, housing needs, and public services. This report explores the various regional impacts of population aging, as well as the roles that Economic Development Districts can and have filled to ensure people and economies are able to thrive. Prosed initiatives include directing investment in physical assets and amenities, supporting a cultural and social environment that helps older adults thrive, and incorporating aging planning into the Comprehensive Economic Development Strategy (CEDS).
New York Doesn’t Have Enough Housing. Why Is It So Expensive to Build? (The New York Times) New York City’s high rent prices are driven by a combination of scarce housing availability and the expensive, complex process of building new apartments. Last year, only 1.4% of apartments were available, and it has become expensive to build and maintain apartments in the city, where now many costs are passed on to renters. Land and buildable space, especially near transit hubs and Manhattan, are limited and costly, while zoning restrictions often require time-consuming, costly approvals to change land use. Additionally, building in New York involves stricter regulations which further raise construction costs. Maintenance expenses, high property taxes, and the need for public subsidies make it difficult to keep rents affordable, especially for low- and middle-income residents. The overall high costs of land, construction, and operations mean that housing development often requires public financial support to make it viable and affordable.
Cities Cut Red Tape to Turn Unused Office Buildings Into Housing (Stateline) With nearly 20% of office space in the U.S. sitting vacant, cities are taking steps to encourage the conversion of underused commercial buildings into much-needed housing, aiming to address both housing shortages and economic challenges. Efforts include reducing regulatory barriers, offering tax incentives, and easing zoning or building code requirements. Cities like Minneapolis, San Francisco, Seattle, and New York have implemented various measures to streamline office-to-residential conversions, such as removing public hearings or waiving certain fees. However, despite these efforts, the high cost of conversion—averaging $685 per square foot—remains a significant obstacle. To further stimulate conversions, cities have introduced financial incentives, such as tax abatements and funding for developers.
Trade 📈 |
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Structured Pathway for Indo-U.S. Collaboration in Advanced Technology (Business World) The latest Global Innovation Index (GII) report revealed significant differences between the innovative ecosystems of the United States and India. The U.S., ranked third among the 130 nations included in the study, boasts a robust R&D infrastructure, high private-sector investment, and a skilled STEM workforce, particularly in tech hubs like Silicon Valley. In contrast, India, ranked 39th, has made notable progress but still faces challenges, with innovation concentrated in a few states such as Karnataka and Delhi. The disparity is reflected in R&D intensity, with the U.S. spending more on R&D through private enterprises, while India’s government dominates R&D funding. Additionally, India’s STEM workforce engagement is lower, despite producing the highest number of STEM graduates globally.
U.S. Trade Deficit Shrinks on Decline in Imports (Reuters) The U.S. trade deficit sharply narrowed by 11.9% in October, dropping to $73.8 billion from $83.8 billion in September, as imports fell the most since late 2022. Imports dropped 4.0%, with goods imports falling 5.5%, particularly driven by declines in capital goods like computers and semiconductors, as well as industrial supplies including petroleum. Exports, however, decreased by 1.6%, with goods exports dropping 3.0%, though services exports rose to a record high. The goods trade deficit decreased by 9.5%, and trade is expected to potentially contribute positively to economic growth in the fourth quarter after being a drag on GDP for the previous three quarters.
Final Agreement Under Taiwan-U.S. Trade Initiative to Come Into Force (Reuters) The first agreement under the U.S.-Taiwan Initiative on 21st Century Trade became effective this month marking a significant step in strengthening economic ties between the two nations. This agreement covers areas such as anti-corruption, customs administration, trade facilitation, and support for small and medium-sized enterprises. Although Taiwan was excluded from the U.S.-led Indo-Pacific Economic Framework, the 21st Century Trade Initiative, along with other dialogues between the two, aims to deepen their economic partnership. Taiwan hopes this initiative will eventually lead to a free trade agreement with the U.S., despite ongoing U.S. delays in formal trade talks. The agreement has drawn criticism from China, which opposes any official interactions between Taiwan and the U.S., as it claims sovereignty over Taiwan.
Industry Trends 💡 |
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Manufacturing Next-Gen Microchips in the Age of AI (Wired) At WIRED’s The Big Interview conference, industry leaders discussed the challenges and opportunities facing the semiconductor industry as AI demand grows. The surge in AI technology has created immense pressure on chip manufacturers, with Moore’s Law nearing its limit and the need for new materials and advanced packaging solutions. Experts highlighted the role of glass in semiconductor packaging, offering potential performance boosts and energy savings. The conversation also emphasized the increasing demand for “n-1” technologies and the ongoing push for more efficient, energy-conscious chip designs. As the industry faces limits with traditional silicon, the shift toward glass and other materials is seen as a promising solution to continue advancing chip performance while managing cost and energy challenges.
Innovation Through Collaboration in Manufacturing (MachineDesign) Collaboration is central to driving innovation in manufacturing, as highlighted by Machine Design’s 2024 Salary and Career Survey, which revealed that 74% of respondents engage in cross-company projects, with 42% using cloud technologies to enhance cooperation. A prime example of this is the partnership between FloridaMakes and LIFT, two key players in manufacturing innovation. Together, they aim to boost Florida’s manufacturing sector through advanced technologies, workforce development, and increased access to resources for small-to-medium enterprises. The partnership’s adaptive approach integrates insights from Florida’s manufacturing community, focuses on advanced materials research, and fosters regional resilience through better supply chain connections.
Tech Trends 2025 (Deloitte) Two years after generative AI became a buzzword, the future of technology is shifting from just more AI to ubiquitous AI, becoming seamlessly woven into our lives. AI will become an invisible, foundational element in everything we do. It will optimize cities, personalize healthcare, and improve education, functioning quietly in the background without us actively “using” it. This AI-infused future is evident in emerging trends across information technology, with AI underpinning nearly every trend, from spatial computing and hardware advancements to IT transformation and core system modernization. AI will not only drive innovation but also simplify complex systems while supporting growth and adaptation. The Tech Trends 2025 report identifies how much AI will be incorporated, such as through spatial computing, hardware, writing code, and more.
Washington State Creates Working Group to Target CHIPS Act Funding (Geekwire) A new public-private working group organized by the Washington Department of Commerce will begin meeting to help attract federal funding from the CHIPS and Science Act and bolster the state’s semiconductor industry. This group includes leaders from universities, research institutions, technology companies, and government. The initial focus for the group is securing funding from the National Advanced Packaging Manufacturing Program. Washington state’s semiconductor industry generates $4.5 billion in economic impact and $673 million in annual wages, while employing nearly 8,600 people, according to the Department of Commerce. The state also passed laws earlier this year to extend tax preferences for the semiconductor industry, showing the commitment of the state to this initiative.
Workforce ⚒️ |
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How Americans Feel About Their Jobs in 2024 (Pew Research Center) Pew Research Center conducted a survey among over 5,000 employees in the U.S. to explore how workers view various aspects of their jobs. The survey revealed some key findings, such as that while U.S. workers generally feel secure in their jobs, with 69% reporting good job security, many are dissatisfied with their pay. Younger and lower-income workers report the lowest satisfaction, with 58% of those under 30 and 62% of lower-income workers believing it would be difficult to find a desired job. Additionally, workers cite cost-of-living increases and low wages as major reasons for pay dissatisfaction, and many feel their wages do not reflect the amount or quality of work they perform. Despite these concerns, most workers (63%) are unlikely to look for a new job in the next six months, and a majority (70%) feel they have the necessary education and training to succeed in their roles, though time and resource constraints prevent many from seeking further training.
Supporting Students To and Through College: What Does the Evidence Say? (The Brookings Institution) This report analyzes over two decades of research on interventions aimed at increasing college access and completion. It highlights that comprehensive student support programs, such as the Accelerated Study in Associate Programs (ASAP), have the strongest impact on college completion, though their high cost and complexity hinder scalability. Programs guiding high school students to higher-quality institutions also show promise but require careful consideration of institutional capacity. However, the complexity of financial aid systems and college processes remains a major barrier. It emphasizes that addressing these challenges requires significant investment but offers high returns for individuals and society.
Mobile Manufacturing Lab Educates Students on Career Paths in Connecticut (WTNH Hartford) At the EASTCONN Mobile Manufacturing Lab in New London, Connecticut, students can get a focused look at jobs in the state. The mobile lab travels from school to school and is dedicated to manufacturing opportunities. Students can walk through and sample different career opportunities for which there is a pathway for in Connecticut. The mobile lab moves around the state and the region, giving as many students as possible a chance and an opportunity, and shows that many may not require a college degree. Giving manufacturing awareness to students and young adult learners will hopefully increase interest in these careers.
Milwaukee Apprenticeship Programs Receives Grant of $1.5M (Urban Milwaukee) Employ Milwaukee will receive $1.5 million from the U.S. Department of Labor to help expand access to apprenticeships for young workers and support the Cream City YouthBuild (CCYB) program. The CCYB program provides occupational skills training, paid hands-on work experience, leadership development, and community service learning for underserved youth in the city of Milwaukee. The funding will help Employ Milwaukee provide occupational and worksite training services, provide 1-2 sites of low-income housing, provide leadership development, and provide instruction in both construction and healthcare.
Ramping Up the BEAD Workforce: 5 Things States, ISPs, and Construction Can Be Doing Now (NTIA) The $42.45 billion Broadband Equity, Access, and Deployment (BEAD) Program aims to connect 25 million Americans to high-speed internet, requiring a vast workforce for broadband construction, including network designers, fiber splicers, and drill operators. States and territories are incorporating workforce readiness plans in their proposals, with over 30% of them allocating funds for workforce development. The National Telecommunications and Information Administration (NTIA) encourages states to collaborate with employers, training providers, and agencies to address workforce needs, identify gaps, and deploy funding effectively. Collaboration across federal, state, and local levels continues to be important to ensure timely and effective broadband deployment.
Business Expansions and Incentives 📊 |
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U.S. Department of Commerce Invests $600,000 to Support Small Business Growth in Puerto Rico (EDA) The U.S. Department of Commerce’s Economic Development Administration awarded a $600,000 grant to Friends of Puerto Rico in Aguadilla, to support small business growth in the region. This grant will establish a technical assistance program to provide training, education, and access to funding for small businesses impacted by Hurricane Fiona. This EDA investment will be matched with $150,000 in local funds. This project is funded under the Disaster Relief Supplemental Appropriations Act, 2023, which provided EDA with $483 million in additional Economic Adjustment Assistance (EAA) Program funds for disaster relief and recovery for areas that received a major disaster declaration.
Toyota to Invest $922M to Build New Facility in Kentucky (Louisville Courier-Journal) Toyota Motor Manufacturing Kentucky has announced a $922 million investment to build an “advanced paint facility” and additional support for its electrification strategy. This expansive project comes on the heels of Toyota’s $1.3 billion for battery electric vehicle production. This year alone has now brought more than $2 billion in investments to the Kentucky plant. The paint facility is expected to open in 2027, adding one million square feet to Toyota’s Kentucky portfolio and is the largest dollar investment for the Commonwealth this year.
Virginia Manufacturing Facility Set to Receive $275M to Boost Domestic Chip Industry (WRIC Richmond) A Micron facility in Manassas, Virgina will receive $275 million dollars in federal funds from the CHIPS and Science Act. This is an existing facility, so the money is intended to help increase production and advance the plant’s technology. The federal funds will go toward increasing production and advancing technology at the company’s Manassas facility. This investment in Virginia will not only strengthen national security but will also help the local economy. It will lead to 400-plus high-skilled manufacturing jobs and create almost 1,000 construction jobs.
Boeing to Spend $1B on 787 Dreamliner Manufacturing Expansion (Investopedia) Boeing is investing $1 billion in expanding facilities in South Carolina to ramp up production of the 787 Dreamliner. The airplane manufacturer said that it expects to produce 10 Dreamliner planes per month by 2026 and said the upgrades to the South Carolina facility should be completed by early 2027. The company said the project will create roughly 500 jobs over the next five years.
Aerospace Company Plans $108M Expansion, 300 New Jobs in Michigan (MLive) Howmet Aerospace, a global company that makes parts for jet engines and industrial gas turbines, is planning a $107.5 million expansion in Whitehall, Michigan – an investment expected to create up to 300 new jobs. The company, which employes about 2,440 people in Whitehall, was approved for a $5.1 million grant by the Michigan Strategic Fund to help cover the cost of the expansion. The new jobs are expected to pay an average wage of $29.41 per hour, or roughly $61,172 annually. Once open, the company plans to manufacture ceramic cores inside the building. The cores provide cooling passages inside airfoil products used in jet engines and industrial gas turbines. In addition to the grant, the Michigan Strategic Fund also approved a request by Howmet for a 15-year, 100% exemption on Michigan’s State Essential Services Assessment. The exemption is valued at $1.6 million.
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.