Facebook’s Prineville, OR data center

By Bill Trüb
From the March/April 2013 issue

Data centers are crucial to operations across countless sectors, from retail to information technology, government to biotech, logistics to engineering. Many consumers, however, have little awareness or understanding of just how massive and expensive these facilities are. Large-scale data centers are known to use the amount of electricity equivalent to small towns and, despite many greening initiatives, some centers release a significant amount of air pollution in the form of diesel exhaust. Furthermore, the amount of security necessary to run a successful data center is enormous due to the highly sensitive information and pricey equipment housed in such storage units. So high are these stakes that the Telecommunications Industry Association has even published a document detailing the minimum requirements for the infrastructure of data centers and computer rooms.

But the business of IT is one that changes quickly. The International Data Corporation claims the average data center is nine years old, which is troubling when coupled with research company Gartner’s assertion that data centers more than seven years old are obsolete. In May 2011, Uptime Institute reported that 36 percent of large companies will exhaust their IT capacities within the next 18 months. Yet according to a “Green Data Centers” report by Pike Research,the global market for green data centers segment of the industry is expected to more than double in size in the next four years. It can be overwhelming to try and keep abreast of these fast-moving, ever-changing, air-conditioned rooms of priceless information.

Greene And The Greening Of Data Centers

In an effort to reduce the shocking levels of diesel exhaust that many data centers emit into the atmosphere, the industry is being proactive in finding environmentally sound operating solutions. Aptly-named Nicholas Greene, writer for www.greendatacenterconference.com, penned “Ten of the Biggest Data Center Trends” at the tail end of 2012. Let’s recap a few of his most notable prognostications.

“Cloud Computing’s still got a long way to go before it’s the world-changing behemoth that everyone predicts it will be, but this year saw more and more organizations finding their way to cloud computing, and loving every moment of it,” writes Greene. “Hybrid clouds took off, and Infrastructure-as-a-Service, Software-as-a-Service and Platform-as-a-Service vendors really came into their own. Unfortunately, the great strides cloud computing made this year are going to have some unfortunate side-effects in the near future. Moving forward; scalability is going to be a huge concern: our current data center infrastructure, powerful as it is, might not be able to handle the increased demands of the cloud.”

Greene continues, “2012 also witnessed the birth of the software defined data center. As a direct result of this, we’ve been seeing an increased focus on virtualization with the configuration of the data center’s hardware dealt with by upper-level software. Software Defined Networking, though still in its nascent stages, has the very real potential to revolutionize the way data centers are operated, with new options for resource optimization, availability, storage, and mobility.”

According to Greene, the push for eco-sensitive options has been a success. “The environment has been getting a lot of love from data center operators this year,” he says. “We’ve been seeing a massive shift towards green computing throughout 2012, with big names such as Apple and Microsoft hopping on the environmental friendliness train. The looming threat of global warming, coupled with the obvious energy savings one accrues as a result of green initiatives (not to mention the good press an organization can receive) have combined to make green IT a near-integral part of data center design.”

Greene gives us the word of the year: “Server racks are becoming denser and denser as many organizations consolidate their data centers in order to save on energy and real-estate costs. Consolidation is the word of the year, as data centers grow smaller and more powerful and energy management turns from a good idea to an integral discipline for data center operation.”

And finally, openness and transparency is where the industry is headed, led by kingpins Facebook and Google. “In April 2011, Facebook founded the Open Compute Project—an initiative which I’m sure that many initially took as a very bad April Fool’s Joke. It wasn’t—and it’s been gaining steam ever since,” asserts Greene. “The notion that data centers should be defined by their software infrastructure rather than their physical hardware seemed novel at the time, but Facebook has demonstrated that it’s got real value. Even organizations that are typically secretive to the point of paranoia, such as Google, have loosened up a bit, giving us some insight into the inner workings of some of their facilities. Maybe one day in the future, Facebook’s ideals will pay off, and we’ll be rewarded with true transparency in data center operations.”

Google Searches, Hits On South Carolina

Speaking of such Internet giants, Google held a groundbreaking ceremony in January in Berkeley County, SC to announce it will expand its operations at the Mt. Holly Commerce Park. The additional $600 million in investment at the site brings Google’s total investment to more than $1.2 billion. The data center in Berkeley County currently houses thousands of servers to support services such as Google search, Gmail, Google+ and YouTube. As Google’s services grows, the company must ramp up its data centers to meet demand.

Google’s data center in Berkeley County, SC. Google is using the rainwater retention pond as another means for cooling its data center.

“Today’s announcement is another big win for South Carolina,” says Governor Nikki Haley. “We celebrate Google’s decision to grow its footprint in Berkeley County with a $600-million investment. When a world-class company like Google decides to expand in the Palmetto State, it shows we are providing the sort of business environment that helps foster success.” Many states aggressively pursue data center business through various tax incentives because data centers are often a boon for local economies.

“South Carolina and the Berkeley County community are great places in which to work and grow,” says Data Center Operations Manager Eric Wages. “When Google first announced plans to come to Berkeley County in 2007, we were attracted to not only the energy infrastructure, developable land and available workforce, but also the extraordinary team from the local community that made us feel welcome. Today’s announcement is just a continuation of our investment in the state. Google is proud to call Berkeley County home.”

Google first announced plans for a South Carolina data center in 2007, making an initial investment of $600 million to get the center up and running. In November 2010, Google announced plans to construct a second building at the site, which is now serving traffic.

Google is also involved in supporting science and mathematics programs in South Carolina’s schools. Since 2008, it has awarded more than $885,000 in grants to local schools and nonprofits. It also has helped implement a free, downtown Wi-Fi network in Goose Creek.

“Google has been a great partner, exceeding expectations when the data center was first proposed,” says Berkeley County Supervisor Dan Davis. “They have invested capital, created good jobs and more importantly partnered with local businesses to help them do business better.”

“When our community came together to develop this business park, we wanted to attract leading companies that would establish deep roots and grow,” says South Carolina Sen. Paul Campbell. “Google’s expansion is an example of how Berkeley County can serve the needs of the world’s most innovative and dynamic companies. I hope Google’s growth here prompts other growing businesses to put down roots.”

Facebook ‘Likes’ Oregon

Facebook stores more than 240 billion photos, with users uploading an additional 350 million new photos every single day. To house those photos, Facebook’s data center team deploys 7 petabytes of storage gear every month. But what do you do with an exabyte of digital photos that are rarely accessed? That was the challenge facing Jay Parikh, Vice President of Infrastructure Engineering at Facebook.

The team decided a dedicated data center at its Prineville, OR campus could house older photos in a separate “cold storage” system and would dramatically slash the cost of storing and serving these files. The facility has no generators or UPS systems, but can house up to an exabyte of data.

Last year, Facebook built a 62,000-square-foot data center on its Prineville campus to house its cold storage, which can house 500 racks that each hold 2 petabytes of data, for a total of 1 exabyte of cold storage. Similar facilities will be built at Facebook’s data center campuses in North Carolina and Sweden, Parikh said.

The cold storage data center has no generators or uninterruptible power supply (UPS), with all redundancy handled at the software level. It also uses computer room air conditioners (CRACs) instead of the penthouse-style free cooling system employed in the adjacent production data centers in Prineville.

Most importantly, each rack uses just 2 kilowatts of power instead of the 8 kilowatts in a standard Facebook storage rack. But Parikh said it will be able to store 8 times the volume of data of standard racks. Not many companies face storage challenges at the kind of scale seen at Facebook. But Parikh believes more companies will be confronting these massive storage issues.

“Our big data challenges that we face today will be your big data challenges tomorrow,” he says. “We need to keep coming up with advanced solutions to our storage problems. The most important innovations are the problems people solve before the scale of the problem emerges. I believe big data is one of those problems. And we won’t keep up unless we work together.”

Facebook completed a second huge data center on its campus in Prineville, Oregon in 2012. The facility is similar to its existing 300,000-square-foot data center, Facebook Data Center Manager Ken Patchett announced at a Prineville City Council meeting.

“We believe the construction of the phased expansion of Building 2, and the operation of Building 1, staffing and supplying of the Prineville Data Center will continue to have a positive impact on the Crook County-Prineville economy,” Patchett told the city officials.

The second building in Prineville created up to 450 construction jobs, with the project lasting approximately one year. At the time, Facebook said it would add 10 full-time jobs in Prineville, where it currently employs 54 full-time employees providing building maintenance, security and server maintenance. The Prineville project is Facebook’s first company-built facility, and is optimized from the two-story structure right down to the servers to reflect the company’s vision for energy efficient data center operations.

CoreSite Realty Picks NJ

CoreSite Realty has purchased a 280,000-square-foot building in Secaucus, NJ for a new data center, and expects to invest $65 million to buy the facility and redevelop the initial phase of 65,000 square feet of data center space.

The facility, which will be dubbed NY2, is the company’s first data center in New Jersey and a sign of continuing activity in the northern NJ market. CoreSite already has a site in New York City and the Secaucus facility will mark an important expansion for the provider.

CoreSite is under contract to acquire the building, with the acquisition expected to close in early February. The 280,000-square-foot facility sits on 10 acres of land, which allows additional data center development as the market demands. At full build out, CoreSite expects it will offer 19 critical megawatts of capacity. Construction will start in Q1 2013, with turn-key capacity expected to be available in Q4 2013.

CoreSite intends to ensure the availability of high-capacity and high-speed lit services as well as a robust dark-fiber tether between NY2 and CoreSite’s NY1 location at 32 Avenue of the Americas in Manhattan, enabling CoreSite to provide seamless interconnection across its New York campus.

The company has been aggressively building out data center campuses across America. Focusing on network centric and cloud oriented applications, these data center campuses are network-dense.

“CoreSite’s entry into Secaucus is an important step in the execution of our strategy to extend our U.S. platform supporting latency-sensitive customer applications in network-dense, cloud-enabled data center campuses,” says Tom Ray, President and Chief Executive Officer, CoreSite. “Our New York campus is designed to meet performance-sensitive customer requirements supported by our location at the nexus of robust, protected, low-latency network rings serving Manhattan as well as global cable routes to Chicago, Frankfurt, London, and Brazil. Additionally, customers are able to connect directly to service nodes for Amazon Web Services Direct Connect.”

The Secaucus facility follows the launch of CoreSite’s previously announced 15 data center, located in Reston, VA. CoreSite’s national platform spans nine US markets and includes more than 275 carriers and service providers and more than 15,000 interconnections.

The availability of direct connections to high speed networks in NY2 will be of particular interest to financial firms looking to reduce latency and improve performance. Three network service providers have pre-committed to serve NY2, consisting of CoreSite partners Sidera Networks, Zayo, and Seaborn Networks, each of which provides high-performance network support to the financial services, cloud and network communities.

“The new CoreSite data center in New Jersey fits perfectly with Sidera’s growth strategy,” says Clint Heiden, President, Sidera Networks. “This expansion gives CoreSite customers immediate access to over 40 financial exchanges and the Sidera Xtreme Ultra-Low Latency Network.”

In addition to the new facility, the company also announced an Open Cloud Exchange, an initiative looking to offer a range of cloud services to customers. The Exchange will offer best-of-breed partnerships and services from a broad range of providers. It capitalizes on demand for hybrid infrastructures, letting Enterprises, Managed Service Providers (MSPs) and Systems Integrators (SIs) in CoreSite facilities connect directly, via a single resource, to the cloud service providers of their choice. This provides customers with flexible options to securely and easily connect to all types of cloud offerings.

“We’re building the industry’s premier home for cloud services,” says Jarrett Appleby, COO, CoreSite. “With networks—the oxygen for cloud services—as the foundation, adding the industry’s leading cloud providers will create best-in-class scalability, management, automation, software, and many-to-many exchange capability. The Open Cloud Exchange offers our customers enormous provider flexibility, guaranteed performance, real-time monitoring, and easy management of cloud infrastructure services.”

The initial four best-of-breed partners in Open Cloud Exchange are CENX, Rightscale, RiverMeadow Software and Brocade.

• CENX will provide its CENX Automated Ethernet Lifecycle Management software specially designed for CoreSite’s Open Cloud Exchange, enabling easy, single sign-on management of Layer 2 cloud infrastructure services and full MEF CE 2.0 compatibility.
• RightScale, will provide its platform for deploying and manage business-critical applications across public, private, and hybrid clouds. RightScale offers efficient configuration, monitoring, automation, and governance of cloud computing infrastructure and applications.
• RiverMeadow Software will deliver its automated cloud onboarding SaaS developed specifically for migrating servers and workloads into and between Carrier Service Provider Clouds.
• Brocade will provide the hardware infrastructure and switching logic at the heart of the Open Cloud Exchange.

Planned future enhancements include the ability to connect to providers across multiple CoreSite locations within the same metro area; connections between customers and providers in various on-net buildings throughout the country; and the Choice between numerous software and services providers to support performance sensitive customer applications through a marketplace portal. The service is available immediately in seven campuses: Los Angeles, San Francisco Bay Area, Chicago, New York, Northern Virginia, Boston, and Washington, DC.

In addition to this monster of a facility from CoreSite, Northern New Jersey has been no stranger to activity these last few months. Internap announced a 100,000-square-foot project in Secaucus last October, its third in the NY Metro region, to address growing demand. With its supply of data center space in northern New Jersey running low, Digital Realty recently announced construction in Clifton.

Apple Blossoms In NC

Apple currently is building huge new data centers in three states, including the North Carolina iDataCenter. Meanwhile, it is leasing large quantities of data center space in California’s Silicon Valley.

Many of the largest cloud computing providers opted to lease new Internet infrastructure in 2012, according to new data from a veteran market watcher. The report highlights the shifting tides in the “buy or build” decision, in which geography and market economics are contributing to a two-tier infrastructure for many of the largest Internet players, with footprints split between company-built data centers and wholesale space.

Apple, Facebook and Microsoft were among the largest consumers of turn-key “wholesale” data center space in 2012, according to Jim Kerrigan, Director of the Data Center Group at Avison Young. Microsoft leased 12 megawatts of new wholesale space in 2012, with Facebook (10 megawatts) and Apple (8 megawatts) not far behind.

The trend is notable because all three companies have recently been building their own massive data center facilities. Facebook has 1.5 million square feet of data center space that is either built or nearing completion, while Apple has finished its huge iDataCenter in North Carolina and is building new facilities in Oregon and Nevada. Microsoft has built its own server farms in seven sites around the U.S. and Europe over the past 5 years.

After years of building huge data centers in remote areas, in 2012 the geographic focus shifted back to historic Internet hubs in northern Virginia, Silicon Valley and Chicago. Apple and Facebook have moved armadas of servers to rural locations in North Carolina and Oregon that offer cheap power and cheap land. Cloud builders will continue to do this going forward, but a portion of their infrastructure must always be housed near the Internet’s key intersections, where they can connect with dozens of other networks. Both land and power are more expensive in these Internet hubs, resulting in different economics for large-scale new construction. That’s why the largest wholesale data center providers have a large presence in these markets.

General Motors Gets Specific In Georgia

General Motors announced plans to hire approximately 1,000 high-tech workers to staff its new Information Technology Innovation Center near Atlanta. The automaker needs software developers, project managers, database experts, business analysts and other IT professionals for the third of four centers in the United States.

“Locating this center in Atlanta makes good business sense,” says GM Chief Information Officer Randy Mott. “We can draw from a deep pool of high tech expertise through the surrounding colleges, universities and talent residing in the area.”

“This Innovation Center is exactly the kind of employer we want in the state,” says Georgia Gov. Nathan Deal. “The information age will be with us for a long time, and attracting companies such as GM that are on the cutting edge of manufacturing and technology is a huge win for Georgia.”

Mott is leading a rebalancing of information technology at GM under which the majority of IT work will be done by GM employees instead of being outsourced, which has been the GM model for most of the last three decades.

“We look to the Innovation Centers to design and deliver IT that drives down the cost of ongoing operations while continuously increasing the level and speed at which innovative products and services are available to GM customers,” Mott says. “The IT Innovation Centers are critical to our overall GM business strategy and IT transformation.” The location of the fourth site will be announced at a later date.

Gartner’s View On Cloud Computing

Drue Reeves, Gartner’s Vice President and distinguished analyst, recently outlined five trends that will transform the data center industry for Computer Weekly. Reeves’ expert predictions focus heavily on cloud computing, which requires the use of computing resources (both hardware and software) that are delivered over a network, usually the Internet. The name comes from the use of a cloud-shaped symbol as an abstraction for the complex infrastructure it contains in system diagrams. Cloud computing entrusts remote services with a user’s data, software and computation. Here are Reeves’ five trends, in his own words, for the future of data centers.

• Hybrid IT: Perhaps the greatest effect of public cloud computing on IT concerns operations. IT organizations realize that not only do they need to compete with public cloud service providers (CSPs), but also act as intermediaries between internal customers and all IT services (internal or external). IT organizations are becoming brokers of a set of IT services hosted partly internally and partly externally — that is, of hybrid IT. As intermediaries, IT organizations can offer internal customers the price, capacity and provisioning speed of the external cloud, and the protection and security of the internal cloud.
• Internal clouds: When businesses grow accustomed to consuming IT as a service, IT organizations will be compelled to build internal clouds. Unfortunately, building an internal cloud is hard work and few blueprints exist. Although vendors are building products that will help customers build internal clouds, there is no turnkey solution. IT organizations will struggle to cobble together the necessary pieces to build internal clouds. Nevertheless, building them will be a key data center trend in 2012 because of the need to compete with external cloud computing.
• Hybrid clouds: Hybrid clouds are connections between two clouds, usually an internal private cloud and an external public cloud. They are constructed using software that enables applications and data to migrate more easily between clouds. For example, many applications depend on identity management systems to authenticate users, have gigabytes of data, and have input/output latency dependencies for storage. These attributes often prevent applications from migrating to the external cloud, but hybrid cloud solutions them in unique ways. For example, hybrid cloud software can enable WAN acceleration and VPN connections between clouds that allow IT organizations to keep application services and critical data in the internal cloud, and to move the workload itself to the public cloud. As IT budgets continue to shrink and capital resources remain scarce, hybrid clouds will become a more popular option for augmenting IT capacity and enabling disaster recovery than building another data center or signing a long-term outsourcing agreement.
• User-centric computing: To compete in a global market and retain key employees, organizations often have to accommodate staff who live in remote locations and use personal devices for work. Some organizations are attempting to radically reduce the operational expense of supporting numerous desktop devices for large groups of users with various application requirements. These needs create new challenges for IT organizations to secure data; back up data; support smaller, less functional devices; and support a broader range of devices. Therefore, many IT organizations are rethinking their desktop and mobility strategies and adopting a user-centric, rather than a device-centric, point of view.
• Data center efficiency: Competing with the external cloud requires IT organizations to strive for hyper-efficiency in their data centers. If critical data and applications are to be housed in an internal private cloud, IT organizations must deliver internal IT services in an efficient, cost-effective manner. This requires them to squeeze further costs out of their data centers by virtualizing as many applications as possible, using storage efficiency technologies such as data deduplication, and buying servers that enable them to maximize space and power and to consolidate applications.

The post FEATURE STORY: The Story Of Storage appeared first on Business Facilities.

By Business Facilities Staff

Each year, Business Facilities selects the organizations that have established and consistently executed the best practices in our industry, bringing measurable success in targeted economic development to the locations they represent.

We honor these organizations with our Economic Development Excellence Awards, which are earned by the overall performance of the organization on behalf of its location, and with a series of awards for specific Achievements in Economic Development for categories including achievements in targeted incentives, business retention, downtown revitalization, public- private partnerships and ports/FTZs. We also bestow our Achievement in New Media Award for Best Use of Video and Best Use of Social Media.

The finalists for our new overall Economic Development Excellence awards were asked to prepare a detailed submission that summarized the most productive project development in their locations and gave our us an overview of the economic development strategy they have deployed to ensure sustained long-term growth. The information provided included the top projects (initiated since the beginning of 2012), in terms of capital investment and job creation. These projects included new facilities, expansions, relocations or corporate headquarters. In their strategic narratives, finalists identified the growth sectors they’re targeting and described the specialized tools being deployed to achieve growth in these sectors. We encouraged them to specify their approach to workforce training, specialized incentives and the support they provide to the development of start-ups, small businesses and other entrepreneurial initiatives.

In assessing the candidates for our Excellence awards, we assessed the diversity and scope of the agency’s overall economic development program (in terms of the expansion of existing industries as well as the attraction of new ventures). Our Achievement Awards throw the spot- light on agencies and organizations that have established the best practices in their specified category.

And now, without further ado, here are the winners of our 2013 Economic Development Awards.

Population Greater Than 500k

Greater Fort Lauderdale Alliance
The Greater Fort Lauderdale Alliance, through its CEO Council—and through its headquarters marketing and recruitment initiative—set a new standard of excellence in 2012 for the delivery of high-quality, effective economic development programs. These programs have resulted in substantial upward mobility for current and new Broward County residents, while providing substantial returns on investment to local municipal partners through the generation of new revenue as a result of capital investments.

In 2012, a national TV ad blitz continued to promote Greater Fort Lauderdale/Broward County’s strong business value proposition. The campaign, built on the tagline of “Life. Less Taxing,” aired for six months in the NY/NJ/CT, Boston and Chicago markets.

Key to the new marketing initiative was a CEO Council-sponsored hosting event for leading corporate real estate executives, site selection consultants and media outlets, which included a reception at Nova Southeastern University’s new $50-million Oceanographic Center.

The Greater Fort Lauderdale area continued to notch headquarters relocation and expansion success stories, including:

• Custom clothier Astor & Black moved to Pembroke Pines, creating 62 jobs in a $1.48-million capital investment over a three-year period. State and local incentives from Florida and the City of Pembroke Pines totaled $554,000, including $434,000 from the Qualified Target Industries Tax Refund Program and $80,000 from the Governor’s Quick Action Closing Fund
• SmartWater CSI, a UK forensic technology firm also established its North American Headquarters in Fort Lauderdale, and UK-based Private Jet Charter expanded its headquarters there.
• Connecticut-based Turbine Controls, Inc. (TCI) announced it is undertaking a $1.5-million expansion in Miramar, creating 60 jobs. TCI, an industry leader in air- craft engine component MRO services, will locate its facility at Miramar Park of Commerce.

There also were 23 other company relocations and expansions throughout Broward County in 2012, resulting in 1,669 new jobs, 1,689 retained jobs and more than $88 million in new capital investment. Highlights include the largest industrial spec development lease in the last five years in Broward County. AeroTurbine, the Miami-based aviation supply company is expanding to a new, 264,000-square-foot building in Miramar. The project offers a direct capital investment of $30 million dollars and will create 75 jobs.

Saveology’s move to Margate will add 700 jobs to its operation. The Internet company received a $2-million incentive package (tied to job-creation commitments) for its relocation to the 100,000-square-foot office. Stretch Wrap Packaging Industries, a manufacturer of plastic stretch wrap for the logistics industry, also has relocated to the Fort Lauderdale area from Suriname, South America; the company has committed to add 200 jobs over the next three years. The total foreign direct investment is $12 million.

The Alliance substantially expanded international business activities to raise the global footprint of Greater Fort Lauderdale/Broward County by taking an active and participatory role in Gov. Rick Scott’s missions to Brazil, Colombia and Spain, and a separate mission to Mexico, along with hosting and facilitating visits from Australia, Brazil, Chile, China, Colombia, Italy and the United Kingdom.

The Alliance has a strong partnership with Broward County’s Workforce One employment center, securing nearly $1 million state and local training assistance for 1,107 employees in local companies.

The Alliance supports the GrowFlorida program designed to provide both technical assistance and access to capital to second-tier, high-growth companies in the area; it also provided assistance to Broward College to establish a new business incubator to promote small business.

In 2012, the Alliance formed its first Port Everglades Action Team, led by CEO Council member Terry Stiles, to work with the business community to generate support in securing necessary state and federal funding for expansion projects in the county’s Port Everglades Master Plan. Port Everglades, the 12^th largest cargo port in the U.S. and one of the top cruise ports in the world, is embarking on three critical expansion projects that will create 7,000 new jobs regionally and support 135,000 jobs statewide over the next 15 years.

Throughout the year, a primary focus of the Alliance is assisting local companies succeed through its Business Retention and Visitation Outreach (BRAVO) program. In 2012, the Alliance visited 178 companies to assist with access to capital, workforce training opportunities, permitting issues and site location assistance.

Gaining Honorable Mention Awards in this category were Greater MSP (Minneapolis Saint Paul Regional Economic Development Partnership) and Columbus (OH) 2020.

Greater MSP launched in 2011 as a public-private partnership dedicated to accelerating job growth and capital investment in the 13-county regional MSA. Thanks in large part to Greater MSP’s efforts, the region now boasts the highest per capita concentration of Fortune 500 and large privately held corporate headquarters. The area also has the second-highest concentration in the U.S. of employment in its biotech sector, anchored by its world-class research institutions, including the Mayo Clinic and the University of Minnesota.

Columbus 2020 represents the 11-county region centered on Columbus OH, working in collaboration with JobsOhio and local partners to offer comprehensive services to companies evaluating the area. The organization has targeted development in growth sectors including logistics, international business, manufacturing, corporate headquarters and bioscience.

Population Between 200K-500K

Lincoln (NE) Partnership
Lincoln, NE is a community recognized around the nation for its aggressiveness in pursuit of new job creation opportunities. This effort is focused at the Lincoln Partnership for Economic Development. The primary service territory of the organization is Lancaster County and its primary focus is on Business Retention and Expansion (BR&E), Business Attraction, Entrepreneurship and Innovation (E&I) and Community Competitiveness.

In 2012, the Partnership completed 100 annual surveys of key businesses in the region; it is spearheading key workforce issues including the development of a career academy which will be a partnership between Lincoln Public Schools and Southeast Community College to provide career-based educated for juniors and seniors in the LPS District. The overall BR&E program brings together representatives of the City, the County, Lincoln Electric System, Black Hills Energy and the State of Nebraska. Most recently, the Lincoln WIB was brought into the group.

The Partnership works through a regional marketing consortium that includes regional communities, utilities and higher education institutions including the University of Nebraska.

The Partnership and the Chamber and Convention and Visitors Bureau recently launched a new community branding strategy called “Life is Right: that is targeting young executives, workers and entrepreneurs.

The E&I program has been the top priority for the Partnership over the past three years, focused on two significant programs:

• Innovation Connect brings the engineers and executives from manufacturers together with University of Nebraska researchers, promoting the use of UNL technology in Lincoln-based businesses.
• Health Care Connect was unveiled in 2012. The program asks local health care providers to identify problems they believe can be solved through new technology, and then forwards these challenges to Lincoln’s software community. After two months, a quick-pitch contest was held and the winning software proposal got a 120-day test period at the health care institution.

The Partnership sponsors numerous quick-pitch and business plan competitions, and it was a key facilitator of the area’s software angel fund, Nebraska Global, which helped launch five companies in 2011 and 2012. Nebraska Global has launched its fifth software company, Elite-Form, which is producing programs for recording, coaching and evaluating strength training. Prototypes now are being used at the University of Nebraska’s athletic department.

The Partnership helped spearhead a successful effort by the University of Nebraska to take over the former state fair grounds; $80 million is being invested on four new facilities to attract, expand and grow new companies. The first, announced in 2012, is ConAgra’s new facility and research agreement. When fully developed, the project is expected to add over 2,000 high-tech jobs to the community.

The Partnership is leading an effort to undertake a $2.5-million redevelopment of the Lincoln Airpark, a 1000-acre industrial park located on a former Air Force Base. The project is expected to generate more than 3,000 new manufacturing jobs in the city.

The largest project in the community’s history, the West Haymarket redevelopment project, was sup- ported financially by the Partnership through the passage of a bond issue that will construct a new 16,000-seat arena. Over $100 million in investments are expected to be made by concerns adjacent to the arena, which could generate over 1,000 new jobs, new retail and significant quality of life enhancements.

Cabela’s credit card operation has moved into its expanded space in northwest Lincoln. The company $7.2-million expansion is to create about 340 new jobs. Cabela’s site is part of Nebraska Technology Park.

Family-owned Duncan Aviation is undertaking a $25-million expansion including an 80,000-square-foot maintenance hangar, 95,000 square feet of office and shop space; the new facilities are scheduled to open in June 2014. Last year, Duncan Aviation opened an $11.5-million paint shop. When all of its projects are complete, Duncan will employ more than 1,300 people in the Lincoln area.

Receiving Honorable Mention Awards in the 200k-500k category are Brick City Development Corp., Commerce Lexington, Joplin Area Chamber of Commerce and Mobile Area Chamber of Commerce.

Brick City Development Corp. (BCDC) was formed in 2007 to be the primary economic development catalyst for New Jersey’s largest city, Newark. BCDC is focusing on industrial, technology and commercial growth sectors, putting New Jersey’s Urban Transit Hub Tax Credit to good use to secure capital investments of more than $50 million for large-scale renovation or new construction projects.

A key priority is revitalization and development of site in Port Newark, the nation’s third-largest port; the program has succeeded in closing a series of industrial deals covering 750,000 square feet of production space. Pacific Group Holdings, one of the world’s largest importers, brought its Northeast U.S. headquarters to Newark.

BCDC also is targeting food processing and distribution. Success stories include Bartlett Dairy, kosher food producer Manischewitz, Damascus Bakery and grocery store distributor Wakefern.

More than 90 biotech incubator start-ups are now up and running at the University Heights Science Park, a mixed-use technology park anchored by the city’s huge university cluster. A major French pharma research concern, Biotrial S.A., has purchased a 1.2-acre parcel in the tech park for a new facility.

Commerce Lexington scored a major coup in 2012 with its recruitment of Bingham McCutchen’s Global Services Center. Lexington was chosen after a site-selection competition which considered 350 cities across the U.S.

Commerce Lexington is one of three members in the Bluegrass Business Development Partnership (BBDP), which Lexington’s economic development team together the University of Kentucky and the Lexington-Fayette Urban County Government in a coordinated program which serves as a one-stop service provider linking entrepreneurs with key programs and incentives to help them jump-start business initiatives.

In May 2011, Joplin, MO was devastated by one of the worst tornados in U.S. history. In the months before the tornado hit, Joplin Area Chamber of Commerce was spear- heading two new regional development initiatives, the Joplin Regional Prosperity Initiative (JRPI) and the Joplin Region Partnership (JRP). Even during the massive recovery effort undertaken after the storm (about 560 business facilities were destroyed by the tornado), these development efforts have continued to grow and bear positive results.

In the wake of the tornado, these efforts have created more than 1,800 jobs in Joplin area. The Joplin Tomorrow Fund was deployed to distribute more than $1 million in funding to restart two companies, expand four businesses and assist a new start-up. Today, more than 500 of the businesses directly impacted by the storm have reopened, retaining more than 4,500 jobs in Joplin that had been considered “at risk.” Jasper County, which includes Joplin, has been named Missouri’s first national ACT “Career Ready Certified” community (Missouri is one of only four state’s that have made it to ACT’s second round).

In 2012, Airbus selected Mobile for its first final assembly line in North America, an investment of $600 million that is expected to create at least 1,000 direct jobs. The Airbus decision already is spurring suppliers to put down roots in Mobile, including a recent new plant announcement from Labinal.

In 2012, the Mobile Area Chamber assisted more than 1,600 entrepreneurs in developing business plans, one-on-one counseling and access funding.

Population Between 50K-200K

Operation Oswego County
Operation Oswego County (OOC) is a private, non-profit organization that works to enhance, promote and protect the business and industrial climate of Oswego County. To achieve that goal, they provide comprehensive assistance to existing businesses and those seeking to relocate, whether they are developing a business plan, looking for the best site, or searching for financing or other assistance.

OOC’s primary objectives are to help create new job opportunities, retain employment, build a broader real property tax base, diversify the economy and improve the area’s quality of life through a planned, organized and environmentally-friendly economic development process. They are guided by a board of directors made up of community-minded people from business, labor, education and government throughout Oswego County.

Coordinating and implementing special economic development initiatives allows OOC to enhance the potential to create and retain jobs. They operate three industrial parks in Oswego County—the Oswego County Industrial Park in Schroeppel, the Airport Industrial Park in Volney and the Lake Ontario Industrial Park in the city of Oswego—with other sites currently being studied for potential business parks.

The Start-up Facility in the Oswego County Industrial Park and the Business Expansion Center in the city of Oswego are designed to help non-retail, industrial and service businesses achieve significant growth and development during the first few years of business with the intention of eventually moving out of the building and into private commercial space.

OOC facilitates programs supporting entrepreneurship and small business development and growth including Women’s Network for Entrepreneurial Training, Connections Women’s Symposium, Next Great Idea Business Plan Competition and Workforce Development. The businesses obtain Minority and Women Business Enterprises state designation and are authorized to finance projects using the SBA 504 loan program which can fund up to 40 percent of fixed asset financing for eligible businesses at below market rates.

Oswego County is experiencing a growth spurt in the food processing sector. Over the last year, three companies have purchased existing facilities and are expanding their food processing ventures into Oswego County. Champlain Valley Specialty is renovating and expanding a former onion packing site into an apple processing facility. The $5.5 million project will create approximately 90 jobs. Teti Bakery USA plans to renovate a 200,000-square-foot building in Volney, using about 40,000 square feet of it as a bakery for its Italian flat breads. The Canadian company will create 63 jobs with the $5 million investment.

Our Honorable Mention Award in this category goes to Peoria Economic (AZ) Development. Peoria is taking an aggressive approach toward business attraction by creating partnerships focused on targeted industries including bioscience, health care and renewable energy.

The top 10 projects in Peoria in 2012 included a $75-million investment in Trine University Peoria Campus, a development which will create more than 1,200 direct jobs; a partnership between the city and BioAccel to create the Bioinspire Medical Device Incubator, including six start-up companies; and Genome Identification Corp.’s relocation of its forensics lab from Virginia to Peoria, where the company will continue to develop its proprietary DNA analysis technology.

Population Less Than 50K

City of Rochester (NH)
The City of Rochester has an independent and focused attraction program unique to the goals and objectives of each Targeted Industry Initiative.

The program for Advanced Manufacturing is based on input from the existing manufacturers and includes introductions and referrals as well as industry and trade publications and trade shows. Once a business has interacted with the development program, they may offer a testimonial on the www.thinkrochester.biz website, and may refer vendors and suppliers. The Retail/Hospitality strategy is based on data from the University of Shopping Centers Economic Development Program by the International Council of Shopping Centers (ICSC). The city contracted with the Buxton Company to develop a comprehensive retail assessment and analysis to support the commercial districts and the attraction of private developers and retailers. That research supports the trade shows and targeted retail and hospitality efforts of the city.

Rochester partnered with the Dukakis Center for Urban and Regional Planning at Northeastern University to complete a competitive analysis focused on infrastructure, local policy, planning and other factors established by NAIOP. This report led to infrastructure and policy improvements, and as part of this continuing emphasis, the city reorganized all the development related departments, creating the Community Development Division. The city is considering locating all of the staff in a modern and efficient “one-stop” center to improve efficiency.

The Back Office/Call Center effort involves the owners of the major office buildings and office parks in the city to do collaborative marketing and research. The Medical/Health Care program is based on a strong relationship with the city’s major medical center and other health care partners. They utilize community listening posts that included all of the major employers to discuss health care demands and anticipated impacts of changes to health care and insurance requirements.

Strategic Action items now on the agenda for Rochester’s economic development program include: Establishment of the Granite Ridge Commercial District; Expansion of the Granite State Business Park, Establishment of incentives including Tax Increment Financing, Establish a Downtown Revitalization Organization (Rochester is one of 10 NH communities Certified by the National Trust for Historic Preservation); and Implement a Business Retention and Expansion Plan.

Albany Engineered Composites and Safran USA have partnered for a $100 million state of the art aerospace composites facility on a 50-acre site in Granite Business State Park. They will add approximately 500 employees with a payroll of more than $30 million annually to produce LEAP-X engines, which incorporate green technology while retaining aviation power. The local economic development office for Rochester, NH led the Recruitment Team for the project, and persevered during a two year selection and negotiation process, managing a complex package of deliverables. The ultimate key to success was the team being small, talented and committed, and support from the State Department of Resources and Economic Development, the NH Business Finance Authority and Governor John Lynch.

Construction of a 57-acre, 330,000-square-foot marketplace that could bring up to 800 jobs in the Granite Ridge Development District is also under development. In addition, the City of Rochester recently issued a $100,000 JOB Loan (its biggest ever) to the young firm, LHR Sporting Arms, LLC so that they can begin hiring employees.

The city has created two Tax Increment Financing Districts with a third in process, to expand the municipal infrastructure to industrial and commercial zones. The city has adopted three NH Economic Revitalization Zones, offering corporate tax credits to qualifying businesses. The City has two HUB Zones through SBA, and is a New Market Tax Credits eligible community. The city is working with the NH Foreign Trade Zone Program to consider expansion of an existing zone to Rochester.

The city has a Special Downtown Business District with an expedited approval process to encourage adaptive reuse. Also in Downtown, the city has adopted the property tax credit program 79e enabling real estate investors in the District to recoup their investment over five to 13 years before a tax increase. The city created a Sign & Façade Matching Grant to encourage investment into exterior improvements, even on a small scale. Rochester also has a revolving loan fund capitalized at $600,000 from Community Development Block Grant (CDBG). This program has created more than 300 jobs over the last ten years in manufacturing, hospitality and service industries, including start-ups. City staff provides one on one support for business plans, application process and follow up.

Honorable Mention Awards in the Population Less than 50K category went to Jackson County Industrial Development Corp. and Ponca City, OK.

In April 2012, Cummins-Seymour announced it will invest $219 in a new engine plant in Jackson County, IN, creating 290 new jobs. Jackson County Industrial Development Corp., which is based in Seymour, also scored a local success with Valeo Sylvania’s decision to invest $28 million in an expansion of their Seymour facility (creating 187 new jobs) and Aisin U.S.A. Manufacturing’s announcement that it will undertake a $21-million expansion of its two Seymour facilities (114 new jobs). Additionally, Seymour Tubing is putting about $20 million into expanded workspace and new equipment.

The top five projects in Ponca City, OK in 2012 totaled $78 mil- lion in capital investment. The largest capital investment in Ponca was made by Phillips 66, which is putting $50 million into an upgrade of its alkaline units, a lift station at its South Plant and equipment upgrades throughout it complex. Mertz Manufacturing, an oil and gas concern, completed a new $12 million facility on an 80-acre site. Dorada Foods, a chicken processor and supplier to McDonald’s restaurants, is preparing to add a new production line with upgraded equipment. The project is expected to create 75 new jobs.

Two companies new to the Ponca area were drawn to the location due to new oil drilling and the general resurgence in the oil and gas sector in Oklahoma spurred by fracking operations extracting natural gas/ Dawson Geophysical brought 85 jobs to their new office in Ponca City; Crescent Services, an independent oilfield support service and management company, established a satellite office in the city.

Business Facilities congratulates all of the well-deserved winners of our 2013 Economic Development Excellence Awards.

Achievement In Targeted Incentives

When we launched our annual Economic Development Awards two years ago, there was one category for which we knew the podium would be crowded when it came time to call up the winners. Every year, there are dozens of new incentives programs to consider for our Achievement in Targeted Incentives Award. This year was no exception and, as always, it was difficult to narrow the field. Here are the four winning programs that meet our criteria for an innovative effort to snare new projects for a targeted growth sector:

The widespread use of hydraulic fracturing drilling techniques to extract an abundant supply of natural gas from shale formations in the U.S. is transforming the economies of several states, especially in the region that includes the Marcellus formation (stretching from Ohio through Pennsylvania and into upstate New York). The fracking boom itself has become a development magnet, so it shouldn’t be surprising that state economic development agencies are beginning to tailor targeted incentives related to natural gas resources.

Pennsylvania has jumped ahead of the curve with its PA Resource Manufacturing Tax Credit (PRM).

Beginning in 2017, any manufacturer purchasing natural gas containing ethane as a petrochemical feedstock at a facility within the Commonwealth could be eligible for a PRM Tax Credit equal to five cents per gallon ($2.10 per barrel) of ethane purchased and used in manufacturing ethylene, so long as the company makes a capital investment of at least $1 billion and creates the equivalent of at least 2,500 full-time jobs while constructing the facility.  This credit is effective for ethane purchased between Jan. 1, 2017 and Dec. 31, 2042.

Thanks in part to the health care reforms enacted in Washington in 2010, employment in the health care sector is expected to outpace national averages in coming years. Anticipating this, Mississippi has structured an incentive which throws down a welcome mat for health-care providers to come to the Magnolia State.

The Mississippi Health Care Industry Zone Incentive Program was enacted in 2012 to encourage health care-related businesses to locate or expand in the state. The program benefits medical services providers and other health care-related businesses, such as those engaged in medical supply, biologics, laboratory testing, medical product manufacturing/distribution and diagnostic imaging that locate in a qualified Health Care Zone in the state. Health Care Zones are defined as areas where there are three contiguous counties which have Certificates of Need for more than 375 acute care hospital beds—the business must locate or expand within a five-mile radius of a health care facility with a Certificate of Need and/or areas located within five miles of a hospital that will be constructed before July 1, 2017, with a minimal capital investment of $250 million.

Qualifying businesses are eligible to receive an accelerated, 10-year state income tax depreciation deduction, a sales tax exemption for equipment and materials purchased from the date of the project’s certification until three months after the facility is completed, and a 10-year ad valorem tax exemption.

Workforce training remains a top priority across the nation, and we’re impressed with an initiative in Florida that targets incumbent workers to enable companies to maintain their competitive edge and retain employees.

The Incumbent Worker Training Program (IWT) provides training to currently employed workers to keep Florida’s workforce competitive in a global economy and to retain existing businesses. The program is available to all Florida businesses that have been in operation for at least one year prior to application and require skills upgrade training for existing employees. Priority is given to businesses in targeted industries, Enterprise Zones, HUB Zones, Inner City Distressed areas, Rural Counties and areas, and Brownfield areas.

The program provides funding for training to existing for-profit businesses. IWT grants are structured to be flexible to meet the business’s training objectives. The business may use a public or private training provider, or may use an in-house training provider based on the nature of the training.

Through June 2012, Workforce Florida awarded 230 IWT grants totaling more than $6.1 million to help companies train and retain more than 12,000 full-time employees. Trainees’ wages have increased more than 25 percent on average within a year of completing IWT-supported training.

Funding priority in the Incumbent Worker Training Program is given to businesses with 25 or fewer employees that is located in a distressed rural area, urban inner city or Enterprise Zone. The business should be part of a targeted sector whose grant proposals represent a significant layoff-avoidance strategy.

Recent announcements from Louisiana make it clear that the Bayou State is emerging as leading high-tech hub. Louisiana is moving quickly to capitalize on this trend and maximize its impact.

The Technology Commercialization Credit and Jobs Program provides a 40 percent refundable tax credit (not to exceed $250,000) on costs related to the commercialization of Louisiana technology and a 6 percent payroll rebate for the creation of new direct jobs.

The Tax Credit Incentive is open to individuals or businesses that invest in the commercialization of Louisiana technology in Louisiana. The technology must be created by a Louisiana business and researched by a Louisiana university or college. A company must submit the completed Technology Commercialization Eligibility Application and fee. The eligibility application should include a description of technology to be commercialized; an agreement with a university; a business plan; an estimate of commercialization cost, number of new jobs, wages and health benefits created. Eligibility application is due by December 31 of the year the company is seeking tax credits.

Achievement In Business Retention

New Jersey Partnership for Action; Metro Denver Economic Dev. Corp.
We are honoring two organizations this year with our Achievement in Business Retention Award: the New Jersey Partnership for Action and Metro Denver Economic Development Corp.

When Gov. Chris Christie took office in 2010, he made it a top priority to change the negative perception of NJ’s business climate by initiating one of the most comprehensive reorganizations of statewide economic developments we’ve seen in a long time. The new structure consists of three highly-focused organizational elements, all under the umbrella of the Partnership for Action—Choose New Jersey, the New Jersey Economic Development Authority, and the Business Action Center—that provide economic development services, link companies to incentive programs and attract international investment to others.

Armed with NJ’s innovative Urban Transit Hub Tax Credit, the Partnership for Action has achieved notable success in its business retention efforts, including deals that kept Panasonic’s headquarters in the state and spurred Prudential to commit to a new HQ building in the heart of Newark.

NJ has used the forward-thinking transit hub credit as a financial tool to spur private capital investment, business development and employment by providing tax credits for businesses planning a large expansion or relocating to one of New Jersey’s designated Urban Transit Hubs.

The program offers developers, owners or tenants up to 100 percent of a qualified capital investment made within an eight period. Taxpayers may apply 10 percent of the total credit amount per year over a ten-year period against their corporate business tax, insurance premiums tax or gross income tax liability. Developers or owners must make a minimum $50 million capital investment in a single business facility, and at least 250 full-time employees must work at that facility. Tenants in a qualified business facility can represent at least $17.5 million of the capital investment in the facility, and up to three tenants may aggregate to meet the 250 employee requirement.

The Metro Denver Economic Development Corporation (Metro Denver EDC), an affiliate of the Denver Metro Chamber of Commerce, was one of the nation’s first regional economic development entities. Its partners include 70 cities, counties, and economic development organizations in the seven-county Metro Denver and two-county Northern Colorado region. Metro Denver EDC works to create a competitive environment that attracts companies and is backed by the region’s business community, with primary funding coming from private-sector investors, as well as participating cities and counties. Strategic initiatives are developed among the partners, with final decision-making authority by an investor board of directors.

From energy to aerospace, to bioscience, information technology-software and financial services, Metro Denver offers a diversified economy of viable industries and the nation’s third-most highly educated workforce. Metro Denver is first among the 50 largest metros for total private aerospace workers, with 19,600 people employed at aerospace companies. Colorado has the nation’s second-largest aerospace economy and is home to four military commands, eight major space contractors, and more than 400 aerospace companies and suppliers. Denver International Airport and three reliever airports create a solid foundation for 15,910 workers directly employed by aviation companies.

Ten Metro Denver higher education institutions with bioscience programs and numerous bioscience research assets support the region’s bioscience industry. The industry also is enhanced by the opportunities to bring together academic, research, and corporate biotechnology institutions at the 578-acre, $5-billion Fitzsimons Life Science District and the adjacent Anschutz Medical Campus.

Metro Denver’s Mountain Time Zone location makes it the largest U.S. region with one-bounce satellite uplinks, providing companies real-time connections to six of seven continents. With a broad mix of broadcasting and telecommunications firms, the region ranks sixth out of the 50 largest metros for employment concentration in this growing sector.

The integration of cleantech and Colorado’s rich energy resource base places the Metro Denver region at the forefront of energy development. The National Renewable Energy Laboratory (NREL) in Golden is the U.S. Department of Energy’s laboratory for renewable energy and energy efficiency R&D.

The Metro Denver region also is one of the few areas outside of the Northeast with a substantial financial services industry in three key market segments. A variety of trade associations and service firms support the diverse financial services industry base of more than 13,020 companies and 87,750 employees in the region.

Achievement In Downtown Revitalization

Indianapolis Downtown, Inc./Indianapolis
This year’s Achievement in Downtown Revitalization Award goes jointly to Indianapolis Downtown Inc. and the Indy Partnership for their continued success in making Indiana’s largest city a winning combination of business-friendly growth and exceptional quality of live. While progress has been notable in the past year, this award also honors a body of work that stretches back two decades.

Downtown Indianapolis has been transformed into a vibrant 24-hours-a-day, seven-days-a-week urban center over the past two decades. Businesses have taken note and are flocking to the city.

Cities across the country look to Downtown Indianapolis as a revitalization model. Since 1990, Indianapolis has invested nearly $9 billion of public and private funds equaling more than 485 projects through 2011. This is an average of more than $408 million of new investment each year, for the past 22 years.

Even in a tough economy, Downtown development momentum continues with $3 billion of new construction and renovation efforts to be completed by 2017.

More people continue to come Downtown on a regular basis. Annual attendance at major Downtown leisure attractions has increased by 83 percent since 1994 to 8 million visits. Surveys of Central Indiana residents show 79 percent of Marion County residents visited Downtown in a six-month period, up from 47 percent in 1994.

Businesses are taking note, and they are flocking to the city. Rolls Royce last year moved 2,500 employees to Downtown Indy. Economic studies show spending by the company and its employees is expected to boost the Downtown economy by $510 million each year.

Three Fortune 1000 companies’ world or regional headquarters in Downtown Indianapolis continue their commitment through growth and expansion, including WellPoint, Inc. (32 new jobs), Eli Lilly and Company (122) and Simon Property Group (573).

NCAA recently completed a $40-million, 150,000 square-feet headquarters expansion; Simon Property Group, North America’s largest real estate investment trust, WellPoint, Inc., Emmis Communications, and Urban League of Indianapolis have all opened headquarters Downtown. Other Downtown headquarters include OneAmerica Financial Partners, Inc., Indiana University Health, Denison, Inc., Farm Bureau of Indiana, Regions Bank, The Indianapolis Star, Kite Realty Group, LDI, Ltd., National Association of High School Athletics, National Bank of Indianapolis, National Wine and Spirits Inc., Reilly Industries, Inc., and The Steak N Shake Company.

Achievement In Public-Private Partnership

Buffalo Niagara Enterprise; Upstate SC Alliance; Tucson (AZ) Regional Economic Opportunities
As more and more states decide to reconfigure their economic development operations from the traditional government-run structure to a public-private model, there are more entities to choose from when we make our annual pick of the best public-private programs. This year, we’ve selected three organizations as the co-winners of our Achievement in Public-Private Partnership Award.

Buffalo Niagara Enterprise (BNE) is a nonprofit, private business development and regional marketing organization dedicated to the proposition that, as a place “where life works,” the Buffalo Niagara region is the ideal place for businesses to locate, grow, and start-up.

The Buffalo Niagara region is comprised of eight counties that form the western-most end of New York State. The region is strategically located with in 500 miles of 40 percent of the continental North American population and is a bi-national gateway for commerce, facilitating $81 billion in annual trade between Canada and the United States.

BNE’s team includes local investors, a board of directors, economic development partners and professional staff. Since it was launched in 1999 by members of the local business community, BNE has succeeded in attracting more than $2.9 billion in capital investment and created or retained over 36,000 jobs in our region.

BNE provides services that run the gamut from demographic information to tax incentives to site identification. BNE acts as the central clearinghouse for the information and supporting services required by companies interested in locating and growing in our region. It provides market data and other information services relevant to business location decisions, including economic indicators, workforce information, industrial and commercial real estate information and customized business development data.

BNE also provides professional account management services, offering potential investors in our region a one-stop shop for information on economic development, and serving as a liaison with local economic development organizations.

Formed in 2000, the Upstate South Carolina Alliance is a public/private regional economic development organization designed to market the dynamic 10-county Upstate region to the world. The 10 counties represent the commerce-rich northwestern corner of SC.

The Upstate SC Alliance’s vision is to compete for business investment globally. The Alliance’s goal is to spearhead an aggressive, innovative and comprehensive global marketing strategy to attract new investment to the Upstate region. By creating a powerful brand and image for the region, Upstate SC Alliance is confident increased opportunities will ultimately lead to greater investment, enhancing the prosperity and quality of life for the entire Upstate. Funding for the Upstate SC Alliance comes through two sources: member counties/cities and private sector business partners. The Alliance’s private sector partners number more than 170 individual companies/organizations.

Tucson Regional Economic Opportunities, Inc. (TREO) was formed in 2005 to serve as the lead economic development agency for the greater Tucson, AZ area and its surrounding regional partners. The primary goal of TREO is to facilitate export-based (non-retail) job and investment growth, in order to increase wealth and accelerate economic prosperity throughout Southern Arizona. A secondary role is to shape policy and mobilize resources to ensure the region is competitive.

TREO engages in partnerships focusing on demonstrating leadership to strengthen education, create a vibrant downtown and engage in infrastructure improvements. To serve a population approaching one million residents, TREO offers an integrated approach of programs and services that support the creation of new businesses, the expansion of existing businesses within the region, and the attraction of companies that offer high wage jobs.

Achievement In Ports/FTZs

Philadelphia Regional Port Authority; El Paso, TX Foreign Trade Zone No. 68; Port of Mobile
We’ve only been bestowing our top honor for Achievement in Ports/FTZs for two years, but we already have our first back-to-back winner. We are pleased to grant this distinction to the Philadelphia Regional Port Authority. A co-winner of our port award is the Port of Mobile. El Paso International Airport’s Foreign Trade Zone No. 68 got our top honor for FTZs.

Philadelphia, one of the oldest and most venerable ports in the United States, continues to outshine the competition as it gears up to compete for what is anticipate to be a surge in new shipping next year.

Philadelphia’s harbor often was the point of arrival for the nation’s founding fathers when they emigrated from Great Britain in the early 1700s, but the port and the City of Brotherly Love are not resting on its laurels: the port is busy preparing to meet the challenges of 21st Century commerce, including an expansion of the Panama Canal that will see huge cargo ships arriving at East Coast ports directly from Asia beginning in 2014.

PRPA has renewed its MOU for the Panama Canal Authority and it has undertaken a channel-deepening project along the 102-mile Delaware River shipping lane. We also are impressed with PRPA’s ability to maintain and grow a thriving shipping hub while undertaking these improvements, evidenced by double-digit increases in cargo tonnage at the port in the past two years, despite a very challenging national and regional economy.

FTZ No. 68 is an integral part of El Paso’s regional and international investment strategy, providing a business platform for domestic and foreign trade to prosper in the region. The City of El Paso is the Grantee and Operator of Foreign-Trade Zone No. 68; it is administered through El Paso International Airport. The zone consists of 5 regional sites totaling 3,443 acres within El Paso County.

FTZ No. 68 has been ranked first in exports among U.S. General-Purpose Zones, ITA (2010). FTZ No. 68 is the only Grantee in the nation providing compliance and training services and one of only five Grantees with an Accredited Zones Specialist. FTZ No. 68 contributed to over 1,300 direct jobs to the El Paso economy in 2012, using innovative best practices in zone management and strategic alliances.

A recent economic impact study prepared by John C. Martin Associates, LLC, a leading maritime industry economic consulting firm, estimates $22.3 billion in total economic value for Alabama from the cargo and vessel activity at the Port of Mobile; of this value, $18.7 billion is directly tied to the Alabama State Port Authority’s (ASPA) public terminals. Martin’s study calculates between 55 and 65 million tons of cargo moves through the Port of Mobile annually.

In FY (Fiscal Year) 2011, there were 141,029 jobs in Alabama related to the cargo and vessel activity at the ASPA and the private terminals at the Port of Mobile, with 127,591 total direct, indirect, induced and related user jobs directly linked to ASPA’s operations. Martin concluded that the terminals at the Port of Mobile generated $573 million in direct, induced, indirect and related user taxes paid to state and local governments by individuals and firms dependent upon the Port of Mobile cargo and ship repair activity.

Achievement In New Media

BEST USE OF VIDEO

Saratoga Economic Development Corp.
SEDC is a perennial candidate for our top video award, consistently producing eye-pleasing and informative packages promoting the Saratoga, NY region. This year’s award-winner is a video entitled SEDC 35th Anniversary—Success Without Limits. The video is posted below. We encourage everyone to take a look at it and enjoy the presentation.

Our Honorable Mention Award in the Best Use of Video category went to Lubbock Economic Development Alliance (LEDA) for their informational video entitled Lubbock Economic Development Alliance – 2012 Forecast.

Each year, LEDA hosts an Economic Forecast luncheon for select members of the Lubbock, TX community. This video was used to highlight an entire year’s worth of work not only for LEDA, but also for Visit Lubbock (the convention and visitor’s bureau) and Lubbock Sports. This year’s video was created to appeal to a wide audience with eye-catching visuals and in-depth testimonials from clients, business partners and community partners. The video is a direct reflection of how all of these entities work together to enrich, empower and strengthen the entire Lubbock community.

BEST USE OF SOCIAL MEDIA

Saratoga Economic Development Corp.
SEDC’s award-winning networking strategy is to monitor all content coming in and out of their networks to make sure it is relevant to the Saratoga NY area’s mission. The key to their success comes from the SEDC’s members being very active themselves. The organization’s president, vice president, and director of marketing all are on these social networks (especially LinkedIn) and supporting SEDC’s cause.

The SEDC LinkedIn Group is their strongest social profile, boasting 1,849 members made up of primarily C-level executives from the region and industry sectors they are trying to reach. By keeping their group’s audience limited to only qualified members, it keeps the content being exchanged relevant and supportive to the area.

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Production in progress at Fountain Inn facility. (Photo: Bosch Rexroth.)

South Carolina Gov. Nikki Haley joined Bosch Rexroth Americas President Berend Bracht and executives from Robert Bosch LLC to mark the start of production at the company’s newly expanded hydraulics manufacturing campus in Fountain Inn, SC. With the addition of the new building, “Building 103,” Bosch Rexroth has doubled its production capabilities at the location, making the Fountain Inn campus its largest hydraulics manufacturing site in the Americas.

Headquartered in Charlotte, NC, Bosch Rexroth is investing $80 million over five years to expand production in the new campus and convert an existing 260,000-square-foot industrial warehouse into a state-of-the-art manufacturing facility that will initially produce the industry-leading Rexroth A10VO hydraulic pump. The pump is used in a variety of applications, including mobile construction and agricultural machinery, mining, materials handling, and heavy industries, such as steel and automotive production.

“The Bosch investment for expanded production in Fountain Inn increases our ability to serve the needs of our local and regional customers,” said Bracht. “In turn, this enhances their opportunity to participate in industrial and mobile equipment markets on a global basis, drawing on the support of a partner like Bosch Rexroth that is recognized around the world for superior technology, reliability, applications expertise and service.”

Gov. Haley praised the company for its decision to invest in South Carolina. “We truly value the commitment Bosch has made to be a part of our state’s business community, and we are excited to see them invest in South Carolina,” she said. “We celebrate the 160 new jobs the company will create with this campus and look forward to its continued success.”

Fountain Inn Building 103 is the largest investment by Bosch Rexroth in North America. To date, five assembly lines and multiple state-of-the-art machining centers have been installed for the production of the A10VO, along with one line for vane motor assembly. The entire facility operates utilizing a lean manufacturing and continuous quality improvement system called the Bosch Production System, which is used by Bosch production operations worldwide to ensure the highest levels of product quality.

Rexroth’s commitment to local economic and workforce development was also highlighted through a $420,000 monetary and equipment donation from Bosch Rexroth together with the Bosch Community Fund to the Greenville Technical College to support the school’s hands-on training program.

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Already home to world-class research labs at Georgia Tech and the Centers for Disease Control, Metro Atlanta lures another high-tech gem in Baxter’s $1.3-billion bio-pharma investment.

By Business Facilities Editorial Staff
From the January/February 2013 issue

Gold

Project Title: Baxter International Bio-Pharmaceutical Manufacturing Plant
Entered By: Georgia Department of Economic Development

The nominees for Business Facilities’ 2012 Economic Development Deal of the Year Awards competition reflected a diverse cross-section of growth strategies, most of which are built on a foundation of new manufacturing capacity.

Entries from 17 states that jousted for our top awards included a biotech mega-complex in Georgia, a world- class commercial aircraft assembly facility in Alabama, a yogurt plant in Idaho and even a refinery in Philadelphia. All of the contenders held the promise of hundreds of new jobs; the biggest projects offered the potential to transform the economies of entire regions.

As always, our award recipients were selected by a blue-ribbon panel of industry experts who carefully reviewed project details provided by the finalists. The task of separating the wheat from the chaff was especially challenging for our 2012 awards, as all of the nominees were worthy contenders.

Projects nominated for Business Facilities’ annual Economic Development Deal of the Year competition are asked to submit an Economic Impact Analysis for the project (using standard analysis methods including RIMS II, REMI or IMPLAN) and a narrative detailing how the project came together.

Our judging panel, including leading site selection consultants, evaluates the overall impact of the project and assesses the effectiveness and innovation of the location’s approach to landing the deal. Key factors in this evaluation include creative use of incentives, regional cooperation, partnerships with higher education resources, potential for growth and execution of overall economic development strategy.

The judges have spoken and Baxter International’s decision to make a $1.3-billion investment in Georgia is our 2012 Economic Development Deal of the Year Gold Award winner.

The Baxter bio-pharmaceutical facility, an integrated campus which will include three main manufacturing components as well as warehousing, utilities and lab support facilities, is expected to directly create 1,800 jobs with an economic impact of $6.2 billion.

Over a 10-year period, the bioscience complex will generate an overall regional economic impact estimated at nearly $13 billion, creating more than 8,700 direct, indirect and induced jobs. The campus will be located in Covington, GA in Stanton Springs, a 1,620-acre master-designed industrial park west of Interstate 20 at the intersection of Newton, Walton, Jasper and Morgan counties.

Artist’s rendering of Baxter International bio-pharmaceutical campus in Georgia.

Baxter’s new biologics manufacturing facility will include an advanced plasma fractionation facility, giving the bio/pharma giant additional capacity for testing and purification of its medications. Products to be made at the Georgia site will include immunoglobulin treatments for patients with immune deficiencies and albumin products used as plasma-volume replacement therapies in critical care, trauma and burn patients.

“Baxter’s decision to come to Georgia marks a new era in the growth of our biosciences industry and will have a far-reaching impact on our economy,” Gov. Nathan Deal said when the project was announced. “We are honored to welcome this flagship company to Georgia and proud that our state’s vast resources for the biomedical field will assist the company with the groundbreaking medical advances it is renowned for.”

Deerfield, IL-based Baxter makes medical devices, pharmaceuticals and biotechnology products with a focus on hemophilia, immune disorders, cancer, infectious diseases, kidney disease, trauma and other chronic and acute medical conditions. The company’s 2011 revenue was $13.9 billion; it employs about 19,000 U.S. workers and has 14 plants, including three in Puerto Rico.

According to the Georgia Department of Economic Development, Baxter will get about $80 million in state incentives, including $65.6 million based on the number of jobs it will create, and a $13.7 million project development grant.

“This mega-project will anchor Georgia’s thriving bioscience sector for years to come, moving the Peach State into the front ranks of national biotech players,” Business Facilities Editor in Chief Jack Rogers said.

Rogers said BF’s judging panel was particularly impressed by the regional cooperation that brought this project to fruition, and the flexibility shown by state and county agencies in tailoring solutions to meet Baxter’s needs. Baxter narrowed the location search to four candidates internationally in 2009.

The entities involved in landing the project included the Georgia Department of Economic Development, the Joint Development Authority of Walton, Newton, Morgan and Jasper Counties and the Technology Park of Atlanta.

The quick turn-around time between the site selection decision announcement last April and construction of primary facilities in the Baxter project is unprecedented, Rogers noted.

“Baxter announced its decision in April and by August 1 ground was already broken on a 1-million- plus-square-foot facility,” he said. “Georgia’s willingness to cut red tape will be followed by a ribbon-cutting on a world-class bioscience complex.”

Construction of the first manufacturing buildings at the new Baxter campus is expected to be completed in 2015, with full commercial production commencing in 2018.

The Metro Atlanta plant will be Baxter’s third in the Southeast; it also has plants in North Cove, NC, and Cleveland, MS. According to a Triangle Business Journal report, Baxter International executives toured sites in Granville County, Wake County and Lee County in North Carolina before selecting the Covington, GA location.

Metro Atlanta already is home to several major research institutions, including Emory University, Georgia Tech and the federal Centers for Disease Control and Prevention.

Baxter’s plant puts Georgia on the map as a player in the life sciences industry, said Mike Cassidy, president of the Georgia Research Alliance. “It’s validation of a long-term strategy to make the state attractive to the life sciences industry,” Cassidy said.

South African energy giant Sasol makes the largest private-sector investment for a single industrial project in U.S. history with its Lake Charles, LA petrochemical complex. In this photo, Louisiana Gov. Bobby Jindal (left) and officials hail Sasol’s mammoth petrochemical project.

Silver

Project Title: Sasol North America Inc.
Entered By: LED, Southwest Louisiana Economic Development Alliance, Port of Lake Charles

One of the largest private-sector investments for a single industrial project in U.S. history is our 2012 Economic Development Deal of the Year Silver Award winner.

Sasol Ltd., a global energy company based in South Africa, decided that Louisiana’s highly developed pipeline infrastructure is perfectly suited to its plans to develop a $10-billion gas-to-liquids processing plant that will enable it to tap into the natural gas bonanza in the U.S. emanating from abundant shale gas reserves.

In addition to the processing plant, which will yield 96,000 barrels/day of premium fuels, Sasol North America also plans to build a $4.5-billion cracker unit at its Lake Charles Chemical Complex in Westlake, LA. The cracker will produce up to 1.4 million tons annually of ethylene used to make plastics.

The new facilities in Calcasieu Parish will result in the creation of more than 5,000 permanent jobs in the Southwest Louisiana region, in addition to the 5,500 construction jobs that will be engaged in building the project through 2020. The expanded Lake Charles complex will have a direct economic impact in the region estimated at more than $29 billion over the next 20 years.

BF’s judging panel was particularly impressed with Louisiana’s willingness to go the extra mile in securing land options for the project, the customized incentives package offered to Sasol and the state’s creative use of LED’s GIS mapping in presenting its proposal to the energy giant.

Using a multi-layered GIS map displayed on an iPad, LED officials were able to show site details, utilities, nearest rail access, proximity to the river and the Port of Lake Charles during the first site visits by the Sasol team. According to LED, the introduction of the new GIS mapping enabled Southwest Louisiana to pull ahead of a Canadian province that was competing for the project.

In announcing the mega-deal, Gov. Bobby Jindal said the $14.5-billion petrochemical complex “will bolster Louisiana’s position as the No. 1 exporter of energy in America.” Gov. Jindal also noted the Lake Charles complex will represent a huge new source of demand for natural gas in the state, including gas extracted from deposits in the Haynesville Shale formation.

The Sasol project was a joint effort involving Louisiana Economic Development, Southwest Louisiana Economic Development Alliance and the Port of Lake Charles.

To secure the project, Louisiana offered Sasol a custom incentive package that includes a performance-based grant of $115 million for land acquisition and infrastructure costs associated with the facility. Sasol also will receive the services of LED FastStart™, the nation’s No. 1 state workforce training program.

In addition, the company will qualify for Louisiana’s new Competitive Projects Payroll Incentive (up to 15 percent payroll rebate for each GTL job) and Quality Jobs Program (up to 6 percent payroll rebate for each ethane cracker job).

One of the largest grants in the history of the Texas Enterprise Fund and local property tax abatements bring Apple’s primary operations nexus to the Texas state capital.

Bronze

Project Title: Apple Inc. Americas Operations Center
Entered By: Austin (TX) Chamber of Commerce

Apple’s selection of Austin, TX as the site for its new $304-million Operations Center is the Bronze Award winner in Business Facilities’ 2012 Economic Development Deal of the Year competition.

The new facility, which will increase Apple’s workforce in Austin to more than 6,700, will serve as the primary operations nexus for the company in the Americas outside of Apple’s global headquarters in Cupertino, CA, centralizing accounting, human resources, sales, marketing and finance.

State, county and local agencies came together to put together a package for Apple that sealed the deal in an intense site-selection battle for the operations center. The Austin Chamber of Commerce, Travis County and the Governor’s Office of Economic Development and Tourism were key players in bringing the project to fruition.

“Texas put down a marker with an aggressive incentives package which made it clear that the Lone Star State did not intend to be outgunned for this project, which turbocharges a strategic growth sector for the Austin region,” said Business Facilities Editor in Chief Jack Rogers.

The state of Texas awarded one of the largest grants from the Texas Enterprise Fund in the history of the program—$21 million—which together with a property tax abatement from the City of Austin and Travis County provided for a total incentive package of $35 million for the operations center. Apple gave candidate locations a three- month window in which to make their proposals.

The new 1-million-square-foot campus in Austin will directly create 3,635 jobs generating about $273 million in new wages over the next 10 years. The Apple facility in Texas will become one of four major global operations centers for the tech giant outside of its California HQ.

The impact of this project on the state is estimated at 16,000 jobs (direct and indirect), $1.4 billion in personal income and an overall Economic Output impact of $5.7 billion.

Austin is no stranger to BF’s annual Economic Development Deal of the Year competition. The $3.6-billion expansion of Samsung Austin Semiconductor’s huge chip fab complex was our 2010 Deal of the Year Gold Award winner.

Samsung has committed to investing more than $13 billion in the Austin facility, which has vaulted Texas into second place among national leaders in semiconductors, behind only California. The 2010 project netted more than 7,600 new jobs (direct and indirect) and came with an estimated economic impact of nearly $2 billion over the first three years of operation.

Last year, the Austin Chamber of Commerce was the winner of our first annual Economic Development Excellence Award (Population Greater Than 500k). Austin also had an excellent showing in our 2012 Metro Rankings Report, taking first place in our coveted Economic Growth Potential ranking (employment greater than 450k).

Honorable Mentions

Projects:Airbus Assembly Facility (Mobile, AL Chamber of Commerce); eBay Campus (Utah Governor’s Office for Economic Development); Caterpillar Production Plant (Georgia Department for Economic Development); Bridgestone Americas Tire Plant (South Carolina Department of Commerce).

Gov. Robert Bentley (second from right) congratules Airbus officials as they announce the selection of Mobile as the site of the European aircraft giant’s new North American assembly plant.

The number of projects deserving of recognition in our annual Economic Development Deal of the Year contest always exceeds the number of awards categories. This year, our judges have selected four entries to receive our Honorable Mention Awards.

Airbus announced in July that it will invest $600 million in an aircraft assembly facility at the Brookley Aeroplex in Mobile. The plant—which will assemble A319, A320 and A321 passenger aircraft—is expected to commence operations in 2015, creating 1,000 new jobs. The assembly facility will hit full capacity in 2018, when it is expected to produce up to 50 aircraft per year.

“Mobile’s selection as the only site in the Western Hemisphere assembling aircraft for Airbus cements Alabama’s status as an up-and-coming aerospace manufacturing giant,” said Business Facilities Editor in Chief Jack Rogers.

Mobile’s victory in the fierce competition for the Airbus plant was the culmination of a seven-year effort by state and local officials to land the prize from Europe’s aerospace giant. The triumph also marked a stunning turnaround from the disappointment of the U.S. government’s reversal of a 2008 decision to award Airbus’s parent, EADS, a huge U.S. Air Force refueling tanker project. EADS had selected Mobile as the site for tanker production, but in 2011 Congress rebid the project and awarded it to Boeing.

The decision by eBay to construct a new 40-acre campus in Draper, UT will directly bring 2,200 new jobs to the state, creating more than $1.6 million in new wages over the next 20 years.

“The ongoing eBay expansion is another success story for Utah’s burgeoning software and IT industry cluster,” Rogers said, noting that industry giants including Microsoft, Twitter, Adobe and IM Flash already have put down roots in the Beehive State.

Rogers added that the Economic Development Deal of the Year judging panel was impressed by the cooperation between eBay and Utah to develop alternative energy resources, including wind energy power generation, which will be used to provide electricity to the Draper facility.

“eBay chose Draper for a customer support center in 1999 primarily because of the quality of the workforce, favorable business climate and proximity to San Jose,” said William Lasher, eBay senior director. “As the Draper facility grew, we became increasingly aware that the business conditions in the state were ideal.”

The Economic Development Tax Increment Financing eBay received from the state, coupled with incentives from local cities, were helpful when eBay made decisions about whether to grow the Draper operation during the past 10 years (creating 1,000 new jobs). Lasher said. eBay was especially impressed with the level of involvement from state and local economic development agencies in working with eBay to solve its problems and meet its needs, he added.

Caterpillar reviewed proposals from more than 100 locations in the U.S., as well as sites in Canada and Mexico, before selecting Athens, GA to be the home of its new $200- million factory. The Georgia plant, which will employ 1,400, will manufacture construction equipment previously produced in Sagami, Japan.

Earth-moving equipment like the unit above will be produced at Caterpillar’s new plant in Athens, GA.

An emphasis on the availability of workforce training, including presentations from Georgia Quick Start and Athens Technical College, helped seal the deal. The Georgia Department of Economic Development, the Economic Development Authorities of Athens-Clarke and Oconee counties, and Electric Cities of Georgia all played a role in shaping the proposal for the Caterpillar project.

“Georgia put its best foot forward in presenting all of its resources to this industry giant,” Rogers said.

The Caterpillar project will have an estimated direct Economic Output impact of $2.92 billion over the next 10 years, directly creating more than $78 million in new wages. When it made the decision to put the new plant in Athens, Caterpillar already was operating facilities in Griffin, LaGrange, Toccoa and Thomasville, GA, so the equipment giant was very familiar with the benefits of locating in a manufacturing-friendly state.

Bridgestone Americas $1.2-billion investment in the construction of a new 1.5-million-square-foot off-road radial (ORR) tire manufacturing facility on a site in Aiken County, SC—and a 474,000-square-foot expansion of an existing tire plant nearby—marked the largest single initial capital investment in South Carolina’s history.

“Bridgestone’s decision to transplant technology and manufacturing to South Carolina that had been exclusive to its facilities in Japan is another indication of the Palmetto State’s emergence as a world-class manufacturing competitor,” Rogers said.

The Bridgestone facility is expected to have a direct Economic Output impact of nearly $2 billion over the first two years of operation, directly creating more than $362 million in new wages.

The new ORR manufacturing plant is part of the company’s global sourcing strategy. The facility will be a greenfield site in the Sage Mill Industrial Park in Aiken County. Previously, large and ultra-large ORR tires had been produced exclusively at Bridgestone’s
Shimonoseki and
Kitakyushu plants
in Japan. Bridgestone will install
ORR production
technologies developed in Japan in
the new plant to
more effectively
respond to customer needs and growing global demand. The new plant will be a green facility—it is expected to meet LEED Construction Certification environmental standards.

Business Facilities congratulates all of the winners in our 2012 Deal of the Year competition. Nominations are now being accepted for our 2013 contest here.

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• Mobile (AL) Area Chamber of Commerce for Airbus’ selection of Mobile as the site of its final assembly facility.
• Utah Governor’s Office of Economic Development for eBay’s Utah campus.
• Georgia Department of Economic Development for Caterpillar’s choice of Athens, GA as the site of its new production facility.
• South Carolina Department of Commerce for Bridgestone Americas’ tire plant.

Airbus announced in July that it will invest $600 million in an aircraft assembly facility at the Brookley Aeroplex in Mobile. The plant, which will assemble A319, A320 and A321 passenger aircraft is expected to commence operations in 2015, creating 1,000 new jobs. The plant will hit full capacity in 2018, when it is expected to produce up to 50 aircraft per year.

“Mobile’s selection as the only site in the Western Hemisphere assembling aircraft for Airbus cements Alabama’s status as an up-and-coming aerospace manufacturing giant,” said Business Facilities Editor in Chief Jack Rogers.

Mobile’s victory in the fierce competition for the Airbus plant was the culmination of a seven-year effort by state and local officials to land the prize from Europe’s aerospace giant. The triumph also marked a stunning turnaround from the disappointment of the U.S. government’s reversal of a 2008 decision to award Airbus’s parent, EADS, a huge U.S. Air Force refueling tanker project. EADS had selected Mobile as the site for tanker production, but in 2011 Congress rebid the project and awarded it to Boeing.

The decision by eBay to construct a new 40-acre campus in Draper, UT will directly bring 2,200 new jobs to the state, creating more than $1.6 million in new wages over the next 20 years.

“The ongoing eBay expansion is another success story for Utah’s burgeoning software and IT industry cluster,” Rogers said, noting that industry giants including Microsoft, Twitter, Adobe and IM Flash already have put down roots in the Beehive State.

Rogers added that the Economic Development Deal of the Year judging panel was impressed by the cooperation between eBay and Utah to develop alternative energy resources, including wind energy power generation, which will be used to provide electricity to the Draper facility.

Caterpillar reviewed proposals from more than 100 locations in the U.S., as well as sites in Canada and Mexico, before selecting Athens, GA to be the home of its new $200-million factory. The Georgia plant, which will employ 1,400, will manufacture construction equipment previously produced in Sagami, Japan.

An emphasis on the availability of workforce training, including presentations from Georgia Quick Start and Athens Technical College, helped seal the deal. The Georgia Department of Economic Development, the Economic Development Authorities of Athens-Clarke and Oconee counties, and Electric Cities of Georgia all played a role in shaping the proposal for the Caterpillar project.

“Georgia put its best foot forward in presenting all of its resources to this industry giant,” Rogers said.

Bridgestone Americas $1.2-billion investment in the construction of a new 1.5-million-square foot off-road radial (ORR) tire manufacturing facility on a greenfield site in Aiken County, SC—and a 474,000-square-foot expansion of an existing tire plant nearby marked the largest single initial capital investment in South Carolina’s history.

“Bridgestone’s decision to transplant technology and manufacturing to South Carolina that had been exclusive to its facilities in Japan is another indication of the Palmetto State’s emergence as a world-class manufacturing competitor,” Rogers said.

Projects nominated for Business Facilities’ annual Economic Development Deal of the Year competition are asked to submit an Economic Impact Analysis for the project (using standard analysis methods including RIMS II, REMI or IMPLAN) and a narrative detailing how the project came together.

The judging panel, including industry experts and leading site selection consultants, evaluates the overall impact of the project and assesses the effectiveness and innovation of the location’s approach to landing the deal. Key factors in the evaluation include creative use of incentives, regional cooperation, partnerships with higher education resources, potential for growth and execution of overall economic development strategy.

Click the highlighted links to read about winners in Gold, Silver, and Bronze along with the winner of BF‘s State of the Year Award.

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“Even in a recovering economy, Time Warner Cable continues to grow and is pleased to offer valuable, good paying jobs in Columbia,” said Carol Hevey, executive vice president, Time Warner Cable East. “The addition of 644 jobs, which increases our South Carolina workforce by more than 50 percent, emphasizes our strong commitment to South Carolina.”

Time Warner Cable plans to expand its Retention Center, Telesales Operations Support and Payment Services departments at its West Columbia campus. The company currently employs nearly 1,300 across the state.

“We are excited to start the year off with today’s job-creating announcement by Time Warner Cable. While we work to bring new companies to South Carolina, it speaks to the strength of our state’s business-friendly climate when existing businesses like Time Warner Cable succeed and grow,” said Gov. Nikki Haley.

Time Warner Cable is the largest cable provider in South Carolina and the second largest in the country. The company provides residential customers with video, high speed Internet and digital phone, and business customers with a range of communication solutions and tools, including cloud services, for all size businesses.

“Time Warner Cable has been an important part of our state’s business community for years and this announcement shows they are committed to growing in South Carolina. The company’s growth will bring good-paying jobs that will have an impact throughout Lexington County and the Midlands as a whole,” said Secretary of Commerce Bobby Hitt.

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Honda Big Red SxS (Photo: powersports.honda.com)

Honda of South Carolina Mfg. Inc. (HSC) has announced that it will add production of Honda’s next generation of side-by-side (multi-utility vehicle) products in mid-2013 at its Florence County plant. The $27 million investment is expected to generate more than 65 new jobs.

“Adding the new side-by-side production demonstrates the confidence Honda top management has in our associates and their capabilities to produce these new vehicles,” said HSC Plant Manager Scott McKenzie.
Honda side-by-side production will transfer from Honda de Mexico S.A. de C.V. (HDM) to HSC. Based on the potential for increased production and future expansion at HSC, along with plans to expand the side-by-side dealer network throughout the U.S. in 2013, the company determined that HSC was the right location. Following the move of side-by-side production, HDM will increase capacity for the production of additional two-wheel products to meet growing market demand in Mexico.
“We are excited that Honda has chosen to invest $27 million and create more than 65 new jobs in Timmonsville. When a world-class company like Honda increases its footprint here, it shows that South Carolina is the right place to do business,” said Gov. Nikki Haley.

Since January 2011, South Carolina has recruited more than $7 billion in capital investment and more than 18,000 jobs in the manufacturing sector.

“We’re very fortunate to have another flagship industry decide to expand here,” said state Sen. Hugh K. Leatherman Sr. “It is evident that Florence County continues to be a competitive and desirable location for manufacturers.”

Florence County Economic Development Partnership Chairman Dr. Charles Gould said, “Honda’s presence in Florence County has been and will remain incredibly significant. They have been one of our largest employers for quite some time and the epitome of an outstanding corporate citizen.”

As with other Honda plants in North America, the Timmonsville plant has undergone continuous innovation over the years to maintain flexibility and efficiency.  In the second half of 2013, HSC will be ready to begin production for a new generation of Honda side-by-side.

“The Timmonsville plant has established a strong foundation in South Carolina by continually improving our plant operations in order to exceed the expectations of our customers,” said Brian Newman, president of Honda South Carolina. “The addition of this new product will allow the Timmonsville plant to grow its commitment to the great state of South Carolina by investing in new expansion, tooling and new jobs for this area. Production of the side-by-side also will benefit the region by increasing the volume and range of parts purchasing from domestic suppliers.”

Honda South Carolina Mfg. employs more than 850 associates. The plant began production of the four-wheeled Honda FourTrax ATV model line in 1998. In fall 2000, operations expanded to add engine production to the plant. The Timmonsville plant’s production line has the capacity to manufacture a quarter of million vehicles and310,000 engines per year.

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By Ed Felton

Gov. Bev Perdue of North Carolina and Gov. Nikki Haley of South Carolina both had the same target in mind when they headed trade missions to Japan recently: bringing back the bacon for their states.

Gov. Bev Perdue and N.C. Department of Commerce Secretary Keith Crisco headed a delegation of business leaders to the high-profile Southeast U.S./Japan Annual Joint Meeting in Tokyo earlier this month.

While in Japan, Gov. Perdue and officials with NC Commerce Department met with export clients along with business prospects considering new investments. Sec. Crisco also traveled to China following the SEUS/Japan conference for two days to recruit companies in Shanghai and other cities in Zhejiang Province.

During the visit, the economic development meetings focused on growing sectors in North Carolina including energy, advanced manufacturing, automotive, life sciences and pharmaceuticals.

“I’m here for one reason: to try to boost North Carolina’s thriving business sector and grow more jobs in our state,” said Gov. Perdue. “I look forward to reinvigorating some of our standing partnerships, and to forging new opportunities this week.”

This year marked the 35th annual gathering of the SEUS/Japan conference, which brings together senior-level executives from Japan and seven states in the Southeast to explore business opportunities between the two countries. Five governors from the Southeast took state delegations to the conference. The Japanese Chairman for the meeting was Hiromasa Yonekura, who also leads the influential Japanese Business Federation (Keidanren).

Over the last five years, Japan is second in the amount of direct investment made in North Carolina. Japan is also North Carolina’s 4th largest trading partner, exporting more than $1.7 billion worth of products and services. North Carolina is home to more than 150 Japanese firms, with capital investments around $5 billion—including companies like Toshiba, Hitatchi, Honda and Mitsubishi. Over the last ten years, international investment and job creation has accounted for about 15 percent of all investment and jobs in North Carolina, amounting to more than $10 billion in investment and 47,000 jobs. China is North Carolina’s 2nd largest trading partner now, exporting over $2.2 billion worth of products and services.

12/20/10 Columbia, SC: Gov. Nikki Haley (Photo by Renee Ittner-McManus/rimphotography.com)

Gov. Nikki Haley’s mission Tokyo was intended to capitalize on Japanese companies wanting to expand their manufacturing outside of the island nation after last year’s earthquake and tsunami, the SC Department of the Commerce said Thursday.

“This is the optimum time for us to pay attention,” Commerce Secretary Bobby Hitt said during a conference call. Japanese companies “want to have plants in multiple locations.”

Haley and the other 40 members of the SC delegation held a series of meetings with Japanese companies already doing business in South Carolina, such as Honda, Fuji and Bridgestone. Hitt noted that 147 Japanese-affiliated companies have invested $1.6 billion in South Carolina since 2006. They employ 12,500 workers. Japan follows only Germany as the state’s leading international economic partner.

The U.S. Department of Commerce’s International Trade Administration (ITA) announced recently new export data that shows North Carolina merchandise exports increased 5 percent in the first half of 2012 compared to the same period in 2011, growing from $13.4 billion to $14 billion.

North Carolina Gov. Bev Perdue

“This is great news for our state as North Carolina continues to thrive as a global economic leader,” said Gov. Perdue. “Nearly 350,000 jobs are supported by exports and trade with hundreds of small- and medium-sized companies in the state conducting business internationally. International exports are an important segment of North Carolina’s overall economy and this growth will aid in our recovery from the economic recession.”

According to the ITA, North Carolina’s merchandise export sales for the first half of 2012 outpaced the 2011 figures for the same period in many top destinations, including Saudi Arabia (up 60 percent), Brazil (37 percent), Mexico (20 percent), Canada (15 percent), and Belgium (14 percent). Key merchandise export categories include chemicals, machinery manufactures, transportation equipment, computer and electronic products, and textiles.

The International Trade Division of the N.C. Department of Commerce works with North Carolina companies to enter worldwide markets and develop export opportunities. Services that international trade experts provide include conducting market research, establishing best market prospects, identifying customers and partners, and other value-added services. The N.C. Department of Commerce maintains offices around the globe to support export activity and to facilitate direct investment in North Carolina. The U.S. Export Assistance Center in Charlotte also works with companies to enhance export opportunities.

Total merchandise exports from all 50 states contributed to a record $2.1 trillion in goods and services exports in 2011, which supported 9.7 million American jobs. Half-way through 2012, U.S. exports are on track to once again exceed $2.1 trillion in value, and will help support the President’s National Export Initiative goal of doubling U.S. exports by the end of 2014.

South Carolina: Global Tire Center
During the past few years, South Carolina has established itself as a global center for tire production.

Michelin North America, Inc. recently announced that the company will expand its Earthmover tire production in South Carolina with a $750-million investment expected to generate 500 new jobs.

Gov. Nikki Haley and friend hearld the expansion at Michelin North America.

“There is unprecedented demand for Michelin Earthmover tires throughout the world,” said Michelin Chairman and President Pete Selleck. “It’s a tribute to the productivity of our employees and the pro-business environment in South Carolina that the company is expanding its Earthmover capacity in the state where we first began manufacturing in the United States.”

When added to the $200 million announced last May in Lexington, this announcement brings the total Michelin investment in South Carolina to almost $1 billion.

“Michelin has been part of the economic and social fabric of South Carolina since the first tire rolled off the line in 1975 and has been one of our finest corporate citizens,” said Gov. Nikki Haley. “It really is a great day in South Carolina when our largest manufacturer reaffirms its commitment to the state.”

“It’s always rewarding when new companies locate in South Carolina, but it’s even better when companies like Michelin that have been here for decades decide to expand and grow,” said Secretary of Commerce Bobby Hitt. “It is a tribute to Michelin and its 8,000 employees in the state that the company has decided to grow their presence here.”

“Michelin’s increased investment in the Upstate speaks volumes to their belief in the South Carolina workforce and its business climate. We are grateful for their contributions to our region and for the jobs they bring to our citizens,” said Upstate SC Alliance President and CEO Hal Johnson.

BauschLinnemann North America, a producer of surfaces and edge bandings for furniture makers, announced plans this summer to establish a new facility and its North American headquarters in Horry County, SC. The more than $8-million investment is expected to generate 55 jobs.

“We are pleased to establish our new production facility and North American headquarters in Horry County. South Carolina has the right business environment for us and has the skilled workforce we need. We appreciate all the support we’ve received from state and local officials in moving this project forward,” said Michael Phillips, CEO and president of BauschLinnemann North America.

BauschLinnemann North America recently acquired Coastal Paper, a Horry County company and former supplier. BauschLinnemann also acquired the assets of CDM, a Quebec, Canada company, early in 2012. With these acquisitions it was determined that Horry County would be the ideal location for a consolidated production facility and North American headquarters. The facility will produce the company’s range of laminates and edge treatments.

“It’s always exciting to see another international company discover the benefits of doing business in South Carolina. We celebrate BauschLinnemann’s decision to invest in Horry County and create 55 jobs. We are working every day to attract investment from companies from around the globe,” said Gov. Haley.

Since January 2011, South Carolina has recruited more than $6.8 billion in capital investment and more than 16,000 jobs in the manufacturing sector.

The facility, located on Harrelson Blvd., will give the company 75,000 square feet of new manufacturing and office space, and is expected to be completed in the summer of 2013. The campus has room to expand to 200,000 square feet.

The scope of industry is widening in Horry County. BauschLinnemann’s HQ news came on the heels of other recent announcements by AvCraft Technical Services and Frontier Communications.

BauschLinnemann will begin hiring for the new positions in the beginning of summer 2013. The Coordinating Council for Economic Development approved the company for job development credits, which will be available when hiring targets are met.

BauschLinnemann North America is a system supplier of paper-based furniture surfaces, and is a subsidiary of BauschLinnemann GmbH.

Department store retailer Belk Inc. plans to locate a new eCommerce distribution and fulfillment center in Union County. The $4.5-million capital investment is expected to generate 124 new jobs over the next five years.

“Belk’s eCommerce growth has been very strong, and to accommodate the demand from our customers, we need additional fulfillment space. We are pleased to fulfill that need with this new facility in Union County,” said Belk President and COO John R. Belk. “South Carolina offers us an excellent business environment, a strong workforce and exceptional access to markets. We appreciate all the support we’ve received from state and local officials in making this project a reality.”

Belk Inc. will establish the new eCommerce distribution and fulfillment center, an expansion of the company’s existing eCommerce fulfillment center in Pineville, N.C., in the former Disney facility in Union, and expects to begin operations in June.

Logistics And Distribution A Carolina Growth Sector
In 2011, South Carolina recruited more than $285 million in investment and more than 2,500 new jobs in the distribution and logistics sector. Agribusiness also is thriving in the Palmetto State.

McCall Farms Inc., a producer of Southern canned and frozen vegetables, recently announced the expansion of its existing operations in Florence County. The $10.6 million investment is expected to generate 80 new jobs over the next three years.

“We are excited to see our company expand again in Florence County. Our business has grown significantly and we have a wider reach than ever. South Carolina has been a great home for our company, providing an excellent business environment and a fantastic workforce. We look forward to continuing to build on our success and appreciate all the support we’ve received from state and local officials,” said Marion Swink, president of McCall Farms Inc.

McCall Farms will increase its production capacity in Florence County with more than 50,000 square feet of new space. The new space will allow the company to increase the number of production lines it operates as well as move to a 24-7 production schedule. McCall Farms ships its products to retailers, foodservice and industrial customers throughout the United States.

“South Carolina continues to be the place to do business, and we see that with expansions like this one by McCall Farms in Florence County. We celebrate the company’s decision to invest $10.6 million and create 80 new jobs. Announcements like this one show we are on the right track with our economic development efforts,” said Gov. Haley.

Since January 2011, South Carolina has recruited more than $292 million in capital investment and more than 1,393 jobs in the agribusiness sector.

The expansion is expected to be finished in October. Previously, the company expanded in March 2010 with an addition of a new distribution facility at its Florence County campus.

“Agribusiness continues to be the bright spot in South Carolina’s economy, adding new investments and creating jobs. The McCall Farms announcement is another great example of that,” said SC Agriculture Commissioner Hugh Weathers. “A family business dating back almost 175 years, McCall Farms illustrates the importance of supporting existing agribusiness expansion in the state. I am proud to work with the Swink family and to help encourage their significant contribution to our state’s economy.”

The Coordinating Council for Economic Development approved job development credits, which will be available when hiring targets are met.

McCall Farms has been growing food for more than 170 years. The company farms and cans tomatoes, okra, corn, squash, beans, peas, peaches, peanuts, greens and more. Its products are sold throughout the United States. The produce is grown on McCall’s 2,000-acre South Carolina farm; it also contracts with farmers in Florida, Georgia and the Carolinas for another 15,000 acres. The company manufactures about 40 different products under the Margaret Holmes, Glory Foods and Peanut Patch brands, as well as private-label and foodservice products.

AVX, a global manufacturer and supplier of electronic and interconnect components, plans to increase manufacturing and research operations at its facility in Greenville County, SC. Investment for the project will be in excess of $14 million and is expected to generate more than 250 new jobs over the next several years.

“Increasing manufacturing and research operations at our global headquarters facility in Fountain Inn, near Greenville, is an important step for our company’s growth. These new operations will allow us to expand our worldwide activity and broaden our product offering. We appreciate the support we’ve received from state and local officials as well as representatives of Duke Energy,” said Kurt Cummings, chief financial officer of AVX.

The company relocated its corporate headquarters to Fountain Inn in 2009 and will complete renovations at the former Mita building located in Southchase Industrial Park in order to accommodate the increased activity.

AVX’s decision was, in part, based on business inducements from the state and the county, including a $500,000 Closing Fund grant for building improvements, job development credits, and tax abatements.

AvCraft Technical Services, an aircraft maintenance, repair and modification provider, has announced plans to expand its current operations in Horry County. The $1-million investment is expected to generate 150 new jobs.

“Location was a major factor in choosing to expand operations here. Myrtle Beach gives us a centralized location to most efficiently reach our customer base,” said Mike Hill, president of AvCraft. “Horry County officials and the Myrtle Beach Regional EDC made expanding here a very easy process.”

AvCraft will expand its facility in Myrtle Beach to help the company increase its aviation MRO services. The Coordinating Council for Economic Development approved a $100,000 grant for this project. Since 2009, Commerce has recruited more than $1.1 billion in capital investment and more than 7,000 jobs in the aerospace and aviation sector.

“The long-term lease with an option to purchase the Pamplico facility is a testament to Florence County’s pro-business climate and ability to attract top performing companies,” said Florence County Economic Development Partnership Chairman Dr. Charles Gould.

Cummins Inc. is expanding its Turbo Technologies operations in Charleston County with a $19.5 million investment that is expected to generate 76 jobs. Cummins Turbo Technologies, which designs and manufactures turbochargers for diesel engines, is adding a new building and expanding its office space at its campus in the Palmetto Commerce Park in North Charleston.

As part of the expansion, Cummins is building a 125,000-square-foot warehouse. Another 10,000 square feet of new office space will be added to the existing building and 10,000 square feet of existing space will be renovated. Cummins Turbo Technologies opened its first Charleston area manufacturing plant in 1989, operating under the name Holset Engineering until 2006. The company previously announced an expansion at the plant in July 2008. The current expansion is expected to be completed in the fourth quarter.

Since January, South Carolina recruited more than $2 billion in investment and more than 3,000 new jobs in the manufacturing sector.

Leviton Picks Morgantown
Gov. Perdue recently announced that Leviton Manufacturing Company, Inc., a leading manufacturer of electrical wiring, lighting control, power cables and other electrical products, will expand its manufacturing operations in Morganton. The project was made possible in part by a Job Development Investment Grant. To meet the targets established in this performance-based grant, the company plans to create 152 jobs over three years and make a capital investment of $7.3 million in Morganton.

Leviton designs, manufactures and markets electrical and electronic wiring devices, data center connectivity solutions, lighting energy management solutions, metering systems and related items for worldwide sale to the manufacturing, industrial and electronic industries. Founded in 1906, Leviton has become the preferred brand for electricians and homeowners, helping customers create sustainable, intelligent environments.

From switches and receptacles, to daylight harvesting controls, networking systems, and equipment charging electric vehicles, Leviton products help customers achieve savings in energy, time and cost, all while enhancing safety. Headquartered in Melville, N.Y., the company currently employs 531 people in North Carolina.

While individual wages for the 152 jobs will vary by job function, the overall average for the new jobs will be $35,488 a year.

Sheetz Inc., a large chain of convenience stores and gas stations, will establish a distribution and food manufacturing facility in Burlington. The company plans to create 254 jobs in North Carolina by the end of 2018, and invest more than $32.8 million in its Alamance County facility. The project was made possible in part by state grants from the Job Development Investment Grant and the One North Carolina Fund.

“Companies like Sheetz recognize that North Carolina is a great place to thrive because of our top-notch business climate, well-trained workforce, and a strong logistics network that fits the company’s needs,” said Gov. Perdue. “We’re going to keep leveraging North Carolina’s tremendous assets as we continue our focus on job expansion.”

Sheetz Inc., founded in 1952, is a family-owned convenience store chain based in Altoona, Penn.  The company operates more than 425 locations across six states – Pennsylvania, Maryland, Virginia, Ohio, West Virginia, and North Carolina – and employs more than 14,500 employees.

“We appreciate the support we received from the Department of Commerce, Alamance County and the City of Burlington throughout this process,” said Stan Sheetz, president and CEO of Sheetz, Inc. “North Carolina’s winning mix of a strong labor force, financial assistance, and excellent location will enable us to better serve our customers and expand our offerings in North Carolina and Virginia.”

The Burlington facility, operating as Sheetz Distribution Services, will support the company’s growing retail base in Virginia and North Carolina. Sheetz continues to transform its business model from a traditional gas station/convenience store concept to include offering “kicked-up convenience” such as baked goods, made-to-order sandwiches and salads, and other restaurant items.

Compensation will vary by job function, but the average annual payroll will be more than $7.4 million plus benefits.

To help facilitate this new operation, the company has been awarded a grant of up to $800,000 from the state’s One North Carolina Fund. This fund assists the state in industry recruitment and expansion by providing financial assistance through local governments to attract business projects deemed by the governor to be vital to a healthy and growing state economy. One North Carolina Fund grants require a local match, and this grant is contingent upon approval of local incentives.

Hospira, a leading provider of injectable medicines and infusion technologies, will modernize and expand the capabilities of its operations in Nash County. The company plans to create 200 additional jobs and make new capital investments for the construction, improvement, upfitting and equipping of existing and new facilities. The capital investment will be at least $85 million over the next three years and could grow to be up to $270 million over the next ten years. The project was made possible in part by a $645,000 grant from the One North Carolina Fund. The state grant will be based on the company investing $85 million over the first three years of the project.

Hospira is the world’s largest generic injectable pharmaceutical manufacturer. The company’s products are used by hospitals, outpatient clinics and other healthcare sites, such as clinics and home-health facilities. The company currently has about 2,400 employees at its Rocky Mount facility.

Salaries will vary by job function, with new positions including technical, supervisory, production and support roles. The average annual wage for the new jobs will be $51,780, plus benefits. The Nash County average annual wage is $34,112.

“Hospira is proud to be able to bring new jobs to the Rocky Mount community with the support of the state of North Carolina and other community partners,” said Marty Nealey, vice president, Rocky Mount Operations, Hospira. “Our new facility expansion and technology investments underscore the importance of the Rocky Mount facility in supplying life-saving, lower-cost medicines for our patients, customers and health care providers in the global marketplace.”

The One NC Fund provides financial assistance, through local governments, to attract business projects that will stimulate economic activity and create new jobs in the state. Companies receive no money up front and must meet job creation and investment performance standards to qualify for grant funds.

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The company will manage sales, marketing, and North American operations from the Greenville office. Plans are in place to develop manufacturing capabilities in the U.S. once the North American market has been developed more fully. The targeted location for this facility is undetermined at this time.

“The Southeast is an ideal location for our North American operations because of the growing automotive industry in the region which is a category strength for our company,” stated Joseph J. White, Lau Rubber and Plastics Chief Operating Officer. “Additionally, it gives us easy access to other manufacturing sectors located in the Southeast as well the Midwest and Northeast. These are our geographical priorities at this time.”

Lau Rubber and Plastics Products Ltd. was established in 1986 in Guangzhou, China near Hong Kong and has three state-of- the-art manufacturing facilities. A new cutting edge LEED certified manufacturing and research center at the LAU Industrial Park Campus has been designed and is being built and will be ready for production in 2014.

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Shutterfly is planning to move its east coast operations from Charlotte to this facility in Fort Mill. (Photo: Fort Mill Times)

Shutterfly, Inc., an Internet-based social expression and personal publishing service, announced it will triple its East Coast manufacturing operations (subject to final state approvals) with a new state-of-the-art production facility in Fort Mill, SC. Responding to significant business growth, this expansion will increase Shutterfly’s East Coast photo product operations footprint to 300,000 total square feet. The new facility is scheduled to open in the second quarter of 2013 and the existing Charlotte, NC, manufacturing space will be fully operational until that time.

With the new facility located less than 10 miles from the company’s current location, Shutterfly expects to retain existing employees while creating new jobs during the next three years. This expansion builds on Shutterfly’s commitment to U.S.-based operations, as the company maintains all manufacturing domestically.

“I am extremely proud that we are able to retain the employees working in our Charlotte facility while adding new jobs and expanding our manufacturing foot print,” said Jeffrey Housenbold, president and CEO of Shutterfly. “Fort Mill is an ideal location for its proximity to our employees and the new talented local labor pool.”

While Shutterfly manufacturing is not new to the eastern U.S., the customer service center in Fort Mill will be the first East Coast customer service presence for Shutterfly. The move will bring new jobs to the U.S.

Housenbold, explains, “Expanding our manufacturing facilities is critical to ensuring we are able to respond to increasing demand and deliver the best to our growing customer base.”

“I am grateful to Shutterfly for bringing new skilled jobs to South Carolina,” said Robert Hitt, South Carolina Secretary of Commerce. “We worked closely with Shutterfly and supported its efforts to secure a facility that could accommodate rapid growth and existing employee population.”

The new facility will increase Shutterfly’s speed and efficiency in producing and shipping the Company’s award-winning products such as photo books, holiday cards, and personalized stationery. In addition to future positions in Fort Mill, Shutterfly is actively recruiting for several key positions in the areas of manufacturing, engineering, and customer service.

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