SEDE Hosts Meeting for Top Executives – Executive Summary (SEDE) The State Economic Development Executives (SEDE) Network hosted its summer meeting for state economic development executives or top deputies in Washington, DC on May 12^th in conjunction with SelectUSA activities. The agenda featured discussions of current issues facing states including the changing federal landscape. Much of the meeting was dedicated to networking opportunities among state leaders as well as other topics such as funding uncertainty, energy infrastructure, and workforce development. The Executive Summary can be found here and materials presented to attendees are available on the SEDE website to SEDE members.

SEDE Steering Committee Member Spotlight: Clint O’Neal, Executive Director, Arkansas Economic Development Commission

Clint O’Neal is the Executive Director of the Arkansas Economic Development Commission (AEDC). O’Neal has 17 years of economic development experience and is passionate about making a difference by helping communities win economic development projects and helping companies to be successful in Arkansas.

O’Neal started his economic development career in 2007 as a Project Manager at AEDC. He served as the Vice President of Business Recruitment for the Missouri Partnership starting in 2011 before moving back to his home state in 2018 to be the Deputy Director of Global Business at AEDC. O’Neal was named Executive Director by Governor Sarah Huckabee Sanders in January 2023 and also serves as Governor Sanders’ Designee to the Delta Regional Authority. O’Neal is a graduate of the Economic Development Institute at the University of Oklahoma and is a Certified Economic Developer through the International Economic Development Council. He holds a Master’s Degree in Community and Economic Development from the University of Central Arkansas.

SEDE Members on the Move

We’re pleased to share recent leadership changes within the SEDE Network. Join us in celebrating these transitions and welcoming new leaders to our community!

Massachusetts Executive Office of Economic Development

Outgoing Leader: Yvonne Hao, Secretary

Hao served as Secretary from January 2023 to May 2025, bringing over 25 years of executive experience in private equity and technology. During her tenure, she led the development and passage of the $4 billion “Mass Leads Act,” a comprehensive economic development package that invested in clean technology, artificial intelligence, life sciences, and infrastructure projects across the state. Hao also initiated a statewide listening tour to engage stakeholders and inform policy, and she played a key role in supporting businesses statewide.

Incoming Leader: Ashley Stolba, Interim Secretary

Stolba has previously served as Undersecretary of Community Development and was recently appointed as Undersecretary of Economic Foundations in 2023. As undersecretary, Stolba led the teams that invest hundreds of millions of dollars in grants for public infrastructure and tax credits for businesses through the office’s Community One Stop for Growth and the Business Front Door.

Regional Innovation Clusters for Manufacturing Capacity and Supply Chain Security (SBA) The U.S. Small Business Administration (SBA) Made in America Manufacturing Initiative aims to restore the U.S. industrial base, bring back American jobs, and promote our nation’s economic dominance and national security. The SBA seeks to understand the availability and capabilities of qualified contractors with the skills, knowledge, and training to create new Regional Innovation Clusters (RICs) that bolster this initiative. SBA is requesting interested vendors provide information to help the government assess industry capabilities. Interested vendors are requested to provide their target industry and geographic location for the RIC efforts in their response to this Source Sought Notice (SSN). Responses are due May 30, 2025.

Strategies to Bridge Housing Gaps and Fuel Economic Development (SEDE) Housing, it’s everywhere in the news: the lack of it, the demand for it, and the high price Americans are paying to get it. To discuss these challenges and opportunities to improve housing accessibility and affordability, the State Economic Development Executives Network (SEDE) hosted a webinar titled “Strategies to Bridge Housing Gaps and Fuel Economic Development”, with guest speakers Maurice Harris from Transwestern Commercial Real Estate and Eric Lynch from the National Association of Home Builders (NAHB). To move forward, Harris urged creative thinking: “We have to look at creative solutions, things like adaptive reuse of existing buildings, zoning changes, and public-private partnerships.” Strategies like repurposing underused office space, streamlining permitting processes, and relaxing restrictive zoning could unlock new opportunities in paralyzed housing markets. Read the full summary of the webinar here.

EDA Tech Hubs Program Fact Sheet (U.S. Department of Commerce) The Tech Hubs Program, established under the 2022 CHIPS and Science Act, aims to bolster U.S. economic and national security by fostering regional innovation and technology commercialization. Managed by the Economic Development Administration (EDA), the program has designated 31 Tech Hubs across the nation. In its initial phases, it awarded over $541 million in grants, including $504 million to 12 hubs for implementation projects. In January 2025, the EDA announced plans to distribute approximately $210 million in additional implementation grants to six of the designated Tech Hubs. Secretary of Commerce Howard Lutnick directed the EDA to halt the awards and initiate a new, open competition for the $220 million in available funding. This upcoming competition will allow all 31 designated Tech Hubs, including the previously selected six, to apply under updated criteria. The revised competition is expected to be announced in the summer of 2025, with selections anticipated in early 2026.

Manufacturing Momentum Summit 2025: Shaping the Future Advanced Manufacturing Workforce Advanced manufacturing is changing fast. AI, robotics, and new energy technologies are transforming production and creating urgent new demands for talent. The Manufacturing Momentum Summit brings together national leaders from workforce, education, and economic development to tackle this challenge. Hosted with ManTech EWD and the Department of Defense, Upjohn Institute, and CREC, the summit will connect those shaping a resilient, scalable manufacturing workforce. States play a critical role in aligning workforce strategies with national and local economic needs. Be part of the national conversation and shape your state’s economic future. Join us August 4-7, 2025 in Detroit, Michigan! Register here!

*Economy 💰*

The State Hamilton Index: What The 2025 Index Tells Us About State-Level Gaps in Advanced Industrial Development (ITIF) The Information Technology and Innovation Foundation (ITIF) has released the 2025 State Hamilton Index, revealing that the majority of states are lagging in the concentration of advanced industries relative to global standards. This shortfall threatens national economic growth and security amid rising global competition. The index uses the location quotient (LQ) to measure state-level specialization in seven key sectors, including IT services, pharmaceuticals, motor vehicles, and machinery. Only four states – Washington, Virginia, Indiana, and Michigan – exceed the global average in advanced industry concentration, while China outperforms 98% of U.S. states. In response, ITIF recommends stronger federal-state collaboration to revitalize America’s industrial competitiveness and securing long-term national prosperity.

For the First Time Since 2022, the Economy is Shrinking (Investopedia) The nation’s economic output, as measured by Gross Domestic Product, shrank at an annual rate of 0.3% in the first quarter, according to the Bureau of Economic Analysis. It’s the first time the widely watched measure of the economy has shrunk since the first quarter of 2022. That’s a sharp downturn from the previous quarter, when the economy grew at an annual rate of 2.4. Other measures of economic strength were healthy: consumer spending, the main engine of the U.S. economy, rose at a 1.8% annual rate, and investment surged 21.9%, led by a 22.5% jump in equipment purchases.

Understanding America’s Labor Shortage: The Most Impacted Industries (U.S. Chamber of Commerce) The U.S. Chamber monitors trends in job openings, labor force participation, and quit rates affecting industries nationwide. Several industries continue to face significant labor shortages. The leisure and hospitality sector, particularly accommodation and food services, experiences the highest quit rates—consistently around or above 4% since July 2022—due to the in-person nature and lower wages of these jobs. Nevertheless, this sector also boasts the highest hiring rates, ranging from 6% to nearly 19%, indicating high turnover. Education and health services, along with professional and business services, report the most job openings, reflecting persistent demand. Manufacturing, especially durable goods, has made strides in recovering from the loss of approximately 1.4 million jobs during the pandemic, yet still faces 622,000 unfilled positions as of January 2024. Overall, even if every unemployed worker were matched to an open position, millions of jobs would remain vacant, underscoring the depth of the labor shortage crisis.

*Trade 📈*

The Impact of U.S. Tariffs on North American Auto Manufacturing (Brookings Institution) The mix of relatively higher Chinese tariffs compared to tariffs on many of the U.S. imports from China and Mexico will have various implications for trade and investment across North America. For one, Brookings noted that higher U.S. tariffs on China will create a stronger incentive for China to circumvent U.S. tariffs by entering the U.S. via Mexico and Canada, and this incentive may extend to other countries that also face higher U.S. tariffs. The tariffs, especially a proposed 25% on imports from Canada and Mexico, undermine deeply integrated supply chains and risk shifting production abroad. Retaliatory measures – such as Canada’s 25% tariffs and China’s 125% tariff on U.S. auto exports – further escalate trade tensions and threaten U.S. manufacturers’ access to key markets.

Towards More Environmentally Sustainable Supply Chains: The Role of Trade Agreements (OECD) This report explores the interactions between trade agreements and sustainability initiatives and contributes to ongoing discussions on how to promote environmentally sustainable supply chains in a rapidly evolving global regulatory context. The report sheds light on the landscape of environmental sustainability initiatives and provides insights into their prevalence along supply chains. It then discusses interactions between sustainability initiatives and trade agreements and offers some empirical insights into trade agreements that engage with sustainability initiatives. The report concludes by discussing the opportunities and challenges of different approaches towards impactful synergies between trade agreements and initiatives to promote environmental sustainability. Trade agreements increasingly interact with the broader governance ecosystem for environmental sustainability. Sustainability initiatives targeting environmental objectives are more present in agriculture, forestry, food products, textiles, and chemicals.

U.S. and China Agree to Drastically Roll Back Tariffs in Major Trade Breakthrough (CNN) The U.S. and China agreed on May 12^th to drastically roll back tariffs on each other’s goods for an initial 90-day period, in a breakthrough that has de-escalated a trade war. The announcement, which was made in a joint statement, comes after numerous trade negotiations in Geneva, Switzerland by officials from the world’s two largest economies. Both sides recognize “the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship,” they said in the statement. That effectively means the U.S. will temporarily lower its overall tariffs on Chinese goods from 145% to 30%, while China will cut its levies on American imports from 125% to 10%.

Uncertainty Over (Trade) Policy Will Cut Hiring and Investment, Say Business Execs (FRB of Atlanta) A recent survey conducted by the Federal Reserve Bank of Atlanta indicates that ongoing uncertainty around U.S. trade policy is causing some business leaders to take a more cautious stance on hiring and investment decisions. For example, 40% of business executives say they plan to scale back hiring at their firms in the next 6 months due to policy uncertainty, and 45% say they will scale back investment for the same reason. Executives cited unpredictability in tariffs and trade negotiations as factors complicating long-term planning. While the overall impact varies by industry, the report suggests that persistent ambiguity in trade policy may lead to delays or moderation in business activity, with potential implications for broader economic momentum if uncertainty continues.

*Industry Trends 💡*

The Return of American Industry: What Baltimore’s Model Signals for Reviving U.S. Cities (Forbes) After decades of decline, blue-collar jobs are experiencing a resurgence across the United States. Driven by renewed investment in domestic manufacturing and infrastructure, more than 1.7 million new blue-collar jobs are projected by 2032, with growth concentrated in construction, manufacturing, and transportation. As demand for skilled workers accelerates, cities investing in technical workforce pipelines are well-positioned to lead. Baltimore, Maryland, offers a case study in how local strategies can align with national priorities to drive economic renewal. Baltimore’s leadership has moved aggressively to meet emerging workforce needs – announcing the Baltimore City Infrastructure Academy, a training hub focused on preparing residents for careers in mechanical trades, welding, CDL trucking, and HVAC services. As communities across the country look to leverage national investments in manufacturing and infrastructure, coordinated strategies like Baltimore’s may offer the best path forward.

Smart Manufacturing and Operations Survey: Navigating Challenges to Implementation (Deloitte) With its ability to capture and integrate data from across facilities fueled by automation and analytics, smart manufacturing and operations can answer the many stubborn challenges related to capacity and competitiveness—even those posed by today’s market volatility. Deloitte surveyed 600 executives from large manufacturing companies with headquarters or operations in the United States. With respondents from industrial products, energy and chemicals, biopharma, automotive, consumer products, and other sectors, it’s clear the smart manufacturing tide is shifting. The survey results show that companies embracing the trend are more agile, more attractive to talent, and more productive. The results also reveal key challenges in implementing smart manufacturing systems, such as managing complex transformations and mitigating operational risks. To overcome these hurdles, executives are investing in core technologies and data analytics, allocating significant resources to cybersecurity processes and controls, and focusing on workforce upskilling.

Virginia Tech Strengthens Future of the Construction Industry Through Innovative Program (VT News) Safety isn’t just about wearing a hard hat and safety glasses — it’s about creating a culture that values both physical protection and mental resilience. Virginia Tech is leading the way in reshaping how future construction professionals think about safety. To mark Construction Safety Week, the Myers-Lawson School of Construction is highlighting its new construction safety leadership major — one of the first of its kind in the nation. Launched in 2024, the program prepares students to become leaders in an industry where safety is paramount, and the stakes are high. The major includes five specialized courses, ranging in topics from hazard control to safety culture and even industry futures — with a unique emphasis on mental well-being. Attention to hazard recognition and control is especially relevant as the industry becomes more automated.

*Workforce ⚒️*

Economic Development Implications of Remote Work in the Post-Pandemic Environment (Congress.gov) The Congressional Research Service’s report examines how the widespread adoption of remote work is reshaping economic development strategies across the United States. It highlights that remote work can decentralize economic activity, enabling rural and smaller communities to attract skilled workers who are no longer tied to urban job centers. This shift offers opportunities for these areas to boost their local economies and tax bases. However, the report also notes challenges, such as the need for robust digital infrastructure, potential reductions in urban commercial real estate demand, and the risk of exacerbating regional inequalities if remote work benefits are unevenly distributed. The report underscores the importance of policy interventions to support infrastructure development and equitable access to remote work opportunities.

Statewide Infrastructure Workforce Plan Will Train 5,000 New Workers by 2030 (Michigan LEO) The Michigan Department of Labor and Economic opportunity (LEO) released the Michigan Statewide Infrastructure Workforce Plan, a framework for creating and enhancing job opportunities and training programs to meet Michigan’s critical infrastructure needs. The plan is structured around four strategic pillars: Expand Apprenticeship and Training Programs, Prioritize Access and Remove Barriers, Implement Regional Workforce Strategies, and Build K-12 Infrastructure Career Pathways. These four strategic pillars were identified through rigorous labor market and programmatic analyses, as well as stakeholder engagement throughout the state, to identify the most promising opportunities.

How Cities are Creating Paths Forward for Formerly Incarcerated Residents through Green Jobs (NLC) Green jobs programs for formerly incarcerated residents help cities meet multiple goals. They are a much-needed investment in workforce development for local sustainability needs like building resilient infrastructure and increasing clean energy capacity. As more governments and industries set climate goals, labor demand for green jobs is outpacing supply. Green jobs are also a way to nurture promising futures for formerly incarcerated residents in need of jobs, stability, and support systems. Pathways to stable careers can help formerly incarcerated people break out of cycles of poverty and recidivism, but finding employment can be particularly challenging for them. Case studies from Philadelphia and Washington D.C. show how transitional employment programs can benefit local communities and assist formerly incarcerated residents with long-term employment opportunities.

Nearly 80 High School Students Graduate Pre-Apprenticeship Program (Franklin County Free Press) The Manufacturers’ Association in Pennsylvania concluded its 8^th program year for their high school Pre-Apprenticeship program. The Association’s PreApprenticeship program introduces high school students to advanced manufacturing careers in seven different trades and provides opportunities to pursue high wage and high demand careers locally. This year’s Pre-Apprenticeship program graduated 78 students from across southcentral Pennsylvania. Students receive several industry recognized credentials and upon graduation have the opportunity to enter registered apprenticeships with sponsoring employers while benefiting from advanced placement the pre-apprenticeship provides for graduates of the program.

*Business Expansions and Incentives 📊*

Kimberly-Clark Plans to Invest Over $2B to Expand Manufacturing (Kimberly-Clark) Kimberly-Clark Corporation announced plans to invest over $2 billion over the next 5 years in its North America business, marking the company’s largest domestic expansion in more than 30 years. Amid rising demand for its consumer brands, these investments will significantly enhance its U.S. manufacturing capacity, accelerate its innovation plans, and support its ambitious growth targets. This broad-based investment program centers on two transformative projects: a new advanced manufacturing facility in Warren, Ohio, and an expansion of its Beech Island, South Carolina, site with a state-of-the-art automated distribution center. It also includes additional capital expenditure linked to innovation and automation upgrades across its North America supply chain network. These projects are expected to create more than 900 highly skilled jobs in industrial automation and advanced manufacturing.

Nation’s Largest Investment Ever in a Natural Food Production Facility (NY Governor) Chobani – a food and beverage company known for its Greek yogurt – has chosen New York’s Mohawk Valley as the location for the nation’s largest investment in natural food manufacturing after a competitive nationwide search. Chobani, which opened its first U.S. plant in 2005 in New York, will build a 1.4 million square foot, $1.2 billion facility in Rome, Oneida County, capable of producing over one-billion pounds of high-quality dairy products per year. The expansion will add more than 1,000 jobs to the region and nearly double Chobani’s total New York State workforce. To help facilitate the company’s investment and expansion in the Mohawk Valley, Empire State Development (ESD) has agreed to provide Chobani up to $73 million in performance-based Excelsior Jobs Program tax credits to support the creation of more than 1,000 jobs at the Rome location. Additionally, the company has pledged to collaborate with ESD to develop workforce training that aims to train and provide job opportunities at Chobani to underserved populations.

Genentech to Build $700M Plant in North Carolina, Creating 400 Jobs (WCNC Charlotte) Genentech announced that it will invest $700 million to construct a new manufacturing plant in Holly Springs, North Carolina, creating 400 jobs. Genentech, headquartered in South San Francisco, California, is considered a pioneer in biotechnology and will establish a new 700,000 sq. ft. high-volume fill-finish operation. The average salary for the new positions will be $119,833, compared to the average wage in Wake County of $76,643. This will bring an annual payroll impact of more than $50 million to the community. The project will be facilitated by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee. Over the 12-year term of this grant, the project is estimated to grow the state’s economy by more than $3 billion. The JDIG agreement authorizes potential reimbursement to the company of up to $9,846,750, spread over 12 years, based on the creation of 420 jobs.

$895M Investment in Kansas towards Animal Health (Reuters) Merck Animal Health will invest $895 million to expand its facility in De Soto, Kansas. The capital expansion includes an investment of $860 million in the site’s existing manufacturing facility and a further $35 million in its research and development laboratories. Commercial manufacturing is expected to begin in 2030 and would create more than 200 full-time roles. Merck Animal Health said the investment will help expand filling and freeze dryer capacity for stabilizing and storing its vaccines. Merck Animal Health is partnering with the state of Kansas on expansion of the existing manufacturing facility.

Business Accelerator Announced in New Mexico to Attract New Foreign Investment (NM Governor) New Mexico’s Governor announced a first-of-it-kind global business accelerator and commercialization center to boost foreign direct investment in the state. NMexus will equip companies from India, the Middle East, Europe, and Asia with the tools, knowledge, and networks necessary to successfully expand operations into New Mexico and succeed in the U.S. market. Companies from India and Oman comprise the first cohort locating in the NMexus Center in the Mesa del Sol innovation district in Albuquerque. The NMexus Center is equipped to serve up to 40 companies each year. It is expected to generate nearly 100 jobs in its first year and as many as 1,500 jobs within five years. The combined economic impact of the NMexus Center over five years is estimated to be more than $400 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; Mike Graney (WV), Vice-Chair; Clint O’Neal (AR); Kurt Foreman (DE); Kevin McKinnon (MN); Michelle Hataway (MO); K.C. Belitz (NE); Hope Knight (NY); Christopher Chung (NC); Andrew Deye (OH); Sophorn Cheang (OR); Adriana Cruz (TX).

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 Bulletin – Issue 81, May 2025

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