State Economic Development Executives (SEDE) Network

State Economic Development Bulletin – Issue 82, June 2025

Written by

aulaky@crec.net

in

Issue 82, June 2025

A Summary of Cutting-Edge Articles Affecting States

HEADLINES

SEDE News 🗞️

Economy 💰

Trade 📈

Industry Trends 💡

Workforce ⚒️

Business Expansions and Incentives 📊

SEDE News 🗞️

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!

Utah Governor’s Office of Economic Opportunity

Outgoing Leader: Ryan Starks, Executive Director

Starks’ tenure at GOEO includes significant achievements, including the successful recruitment of major investments from companies like Texas Instruments the strategic expansion of economic opportunities in rural Utah through the Rural Economic Development Tax Increment Financing (REDTIF) program, and the establishment of the innovative Startup State Initiative.  Starks will be the new director of the Economic Development Corporation of Utah, where he will lead the private sector economic development leader in the state.

 

Incoming Leader: Jefferson Moss, Executive Director

Governor Cox appointed Jefferson Moss in May pulling him from his position as majority leader in the Utah House of Representatives. Moss will continue in a leadership role with the Utah System of Higher Education (USHE) and as managing director of the Utah Innovation Fund.

 

 

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!

FY2025 EDA Disaster Supplemental Grant Program NOFO (EDA) The EDA FY 2025 Disaster Supplemental Grant Program makes approximately $1.45 billion available to support economic recovery activities in areas that received major disaster declarations because of hurricanes, wildfires, severe storms and flooding, tornadoes, and other natural disasters occurring in calendar years 2023 and 2024. EDA’s FY 2025 Disaster Supplemental Notice of Funding Opportunity (NOFO) aims to support communities recovering from major disasters and set them on a path to exceed pre-disaster conditions and transform their local economies in new and vibrant ways. The NOFO provides funding through three funding pathways: Readiness Path (capacity building and strategic planning projects), Implementation Path (standalone construction and non-construction projects), and Industry Transformation Path (targeted industry development). Applications for the first through pathways are accepted on a rolling basis, while Industry Transformation grants are due March 3, 2026.

7 U.S. States, Cities, and Towns that Will Pay You To Move There (NBC) There are many states, cities and towns across the United States that offer financial incentives to move to their location. The goal of most of these programs is to reach an audience of move-ready talent and grow their communities. As of June 2025, the following cities and states are among the locations offering a financial incentive, with some paying as much as $12,000: West Virginia; Tulsa, Oklahoma; Topeka, Kansas; Baltimore, Maryland; Hamilton, Ohio; Ketchikan, Alaska; and Newton, Iowa.

Economy 💰

What the Fed Expects in the Months Ahead (USA Today) The Federal Reserve released new economic projections, forecasting higher inflation and slower economic growth than previously anticipated amid shifting trade, immigration, fiscal and regulatory policies. Annual consumer price increases are expected to hit 3% this year, up from March’s prediction of 2.7%. Expectations for gross domestic product growth fell from 1.7% in March to 1.4%. And the Fed anticipates unemployment to hit 4.5% at year-end, up from March’s 4.4% prediction and the current rate of 4.2%. Still, the Fed was in no rush to cut rates amid other signs of positive economic data, and economists are mixed on when they think the central bank will make its next rate cut. Powell highlighted a “pretty good” labor market with low unemployment during a press conference following the Fed’s June 18 meeting.

How States Raise their Tax Dollars (Pew Charitable Trusts) In fiscal year 2024, nearly two-thirds of states’ collective total tax dollars came from levies on personal income (32.6%) and general sales of goods and services (31.7%). Broad-based personal income taxes were the greatest source of tax dollars in 24 of the 41 states that impose them, with the highest share in Oregon (55.3%), and the lowest in North Dakota (6.1%). General sales taxes were the largest tax revenue source in 20 of the 45 states that collect them. Florida was most reliant on these taxes: They made up 63.5% of the state’s tax revenue. Six states collected the largest share of their fiscal 2024 tax revenue from sources other than personal income or general sales taxes: severance taxes in Alaska, New Mexico, and North Dakota; license taxes in Delaware; corporate income taxes in New Hampshire; and property taxes in Vermont.

3 Key Principles for Building Disaster-Ready State Budgets (Pew Charitable Trusts) Since 2020, the U.S. has experienced an average of 23 disasters per year that resulted in a minimum of $1 billion of destruction. Research from The Pew Charitable Trusts shows that states lack data on public disaster spending, their budgeting approaches are not well adapted to current needs, and their efforts to reduce risks to life and property are inadequately funded. To help states improve their disaster budgeting, Pew has developed specific actionable steps—organized around the three key principles of measure, manage, and mitigate—that policymakers can take.

Space Coast is One of the Fastest-Growing Economies in the U.S. (USA Today) A recent study by the Kenan Institute of Private Enterprise at the University of North Carolina and Fifth Third Bank found that Brevard County, Florida had the highest growth rate among 100 U.S. midsized communities during the past five years, as measured by GDP. Brevard benefits from its science, technology and manufacturing sectors, as well as the presence of Kennedy Space Center, Cape Canaveral Space Force Station, and Patrick Space Force Base. The diverse business sectors in the county such as aerospace, space, defense, health, and tourism are helping insulate the community from national economic ups and downs.

Trade 📈

What Parts of the U.S. Trade the Most? (Federal Reserve Bank of Chicago) Economic theory suggests tariffs make imported products relatively more expensive than domestically made ones, encouraging households and businesses to buy products made in their home country and encouraging businesses to produce domestically. In this article, the authors show that places in the country’s central regions trade the most because they are concentrated in the manufacturing industry or the natural resources and mining industry (or both). These industries import and export the most, and they are most likely to receive tariff protection via import tariffs.

Treasury Report on Macroeconomic and Foreign Exchange Policies (U.S. Treasury) The U.S. Department of the Treasury delivered its semiannual Report to Congress on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States. The Report analyzed the practices of the United States’ major trading partners and concluded that no major U.S. trading partner manipulated the rate of exchange between its currency and the U.S. dollar for purposes of preventing effective balance of payments adjustments or gaining unfair competitive advantage in international trade during the four quarters through December 2024. Nine economies are on Treasury’s “Monitoring List” of major trading partners whose currency practices and/or macroeconomic policies merit close attention: China, Japan, Korea, Taiwan, Singapore, Vietnam, Germany, Ireland, and Switzerland.

Historic Trade Deal Between U.S. and UK (U.S. Dept. of Commerce) The United States and the United Kingdom announced a historic trade deal – providing unprecedented access to the U.K. markets while bolstering U.S. national security. The deal removes longstanding U.K. market barriers creating a $5 billion opportunity of new exports for U.S. farmers, ranchers, and producers. These exports include ethanol, beef, fruits, vegetables, animal feed, tobacco, shellfish, chemicals, textiles, and more. Under the deal, U.K. car manufacturers are limited to a 100,000 per year vehicle quota at the reciprocal rate of 10% and thereafter will pay 25%. The U.S.-U.K. trade deal furthers shared national security interests by creating a new union for steel and aluminum and establishing a secure supply chain for pharmaceutical products.

Industry Trends 💡

China’s Manufacturing Innovation Centers: Benchmarking Report for Manufacturing USA Network (NIST) This review of China’s Manufacturing Innovation Centers (MICs) describes the status of the country’s flagship manufacturing innovation program. At least 33 MICs have been established to date, suggesting that China is within reach of its goal of 40 MICs by 2025, as stated in the “Made in China 2025” national strategy. This review discusses the motivation, structure, and results of the implementation of the Manufacturing Innovation Centers so far, particularly with respect to their 14th Five-Year Plan, and compares China’s approach to manufacturing innovation with that of the Manufacturing USA program and Germany’s Fraunhofer Institutes.

Industry Calls for More Public-Private Partnerships and Funding in the National AI Strategy (NextGov) Private sector companies are asking the federal government to prioritize diverse investments across technology areas that inform the development of U.S. artificial intelligence systems, along with an effort to take the lead on standards development and to pursue industry-government partnerships. industry leaders in AI innovation — such as Google, IBM, Anthropic and Amazon — told policymakers in recent comments of the need for sustained federal investment in the myriad science and technology efforts related to AI systems. They also stated that the federal government plays a critical role in AI research and development and can take steps to ensure that scientific advancement continues to advance at the pace necessary to maintain U.S. leadership on AI.

Workforce ⚒️

By Degree(s): Measuring Employer Demand for AI Skills by Educational Requirements (Federal Reserve Bank of Atlanta) For workforce development practitioners, a key issue is how AI is changing the nature of work, mainly through changes in the skills workers need to be competitive for the jobs of today and of the future. They found that the demand for AI skills varies by education: job postings that require at least a bachelor’s degree are more likely to require an AI skill than postings that require an associate degree or high school diploma. AI skill demand is increasing for occupations that require at least an associate degree, growing from 0.4% in 2010 to 1.4% in 2024. This demand growth is mostly concentrated in Computer and Mathematical occupations.

Gen-Z Workforce: AI Can’t Replace a Critical Generation in the Talent Pipeline (Forbes) Gen-Z is projected to make up 30% of the workforce by 2030 and is already a force of change. This generation wants to work at companies that align with their values, expect flexibility and are using technology in new ways. They are also the first generation that faces a wave of AI progress and investments, and some worry that might displace their entry into the workforce. So, businesses face an inflection point. Will they continue to shape new generations of talent to add to their talent pipelines, or will they point AI efficiencies towards that critical first career step and potentially lose out on developing this next generation of talent? AI can certainly play an important role in the evolving workforce, but it can’t fully replace incoming talent.

Some Countries are Prioritizing AI Workforce Preparation through Curriculum and Training (Phys.org) New research from the University of Georgia is shedding light on how different countries are preparing for how AI will impact their workforces. Researchers estimate that 65% of current elementary school students will have jobs in the future that don’t exist now. Most of these new careers will require advanced AI skills and knowledge. To tackle these challenges, governments around the world are taking steps to help their citizens gain the skills they’ll need. The present study examined 50 countries’ national AI strategies, focusing on policies for education and the workforce. Of the countries studied, only 13 gave high prioritization to training the current workforce and improving AI education in schools. Eleven of those were European countries, with Mexico and Australia being the two exceptions. The United States was one of 23 countries that considered workforce training and AI education a medium priority, with a less detailed plan compared to countries that saw them as a high priority.

Business Expansions and Incentives 📊

Boosting Innovation through R&D Tax Incentives (Smart Incentives) The World Bank recently published a blog article describing how well-designed R&D tax incentives can fuel innovation and growth. The authors note that studies find that R&D tax incentives increase business investment, but the magnitude of the growth varies. At the aggregate level, research typically finds an increase of $0.56 in R&D spending for each dollar of tax revenue not collected. When studying individual firms, researchers estimate that up to $2.50 in additional R&D spending may occur for each dollar of tax revenue not collected. Recent research has also found tax incentives to be more effective for experimental development than for early-stage or basic research, and grant funding is more effective for early-stage, higher-risk research. Program design matters tremendously in determining if an incentive will be effective or not. Research and evaluation are showing how specific policy and program choices drive various policy outcomes for R&D tax incentives.

$200B Investment from Micron Technology for Memory Chip Manufacturing (NIST) The Department of Commerce announced that Micron Technology, Inc., the leading American semiconductor memory company, plans to invest $200 billion in semiconductor manufacturing and R&D to dramatically expand American memory chip production. Micron will build on its existing investments in Idaho and New York to construct a second state-of-the-art chip fabrication facility in Boise, Idaho. Micron will also expand and modernize their fabrication facility in Manassas, Virginia to onshore critical technology from Taiwan. Together, these projects in Idaho, New York, and Virginia will create 90,000 jobs.

Texas Instruments Plans to Invest $60B in U.S. Semiconductors (Texas Instruments) Texas Instruments announced its plans to invest more than $60 billion across seven U.S. semiconductor fabs, making this the largest investment in foundational semiconductor manufacturing in U.S. history. TI is expanding its U.S. manufacturing capacity to supply the growing need for semiconductors that will advance critical innovations from vehicles to smartphones to data centers. Combined, TI’s new manufacturing mega-sites in Texas and Utah will support more than 60,000 U.S. jobs. TI is the largest foundational semiconductor manufacturer in the U.S., producing analog and embedded processing chips that are critical for smartphones, vehicles, data centers, satellites and nearly every other electronic device.

Amazon to Spend $20B on Data Centers in PA (AP News) Amazon said that it will spend $20 billion on two data center complexes in Pennsylvania, including one it is building alongside a nuclear power plant which will supply needed energy. The other facility will be in Fairless Hills at a logistics campus, the Keystone Trade Center, on what was once a U.S. Steel mill. These investments are collectively the largest private sector investment in Pennsylvania’s history. The state will spend $10 million to pay for training classes and facilities at schools, community colleges and union halls to meet the skills demand for the data centers.

 

 

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.

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