Technology shares the spotlight with music and film at the annual South by Southwest festival in Austin, TX.

By Jenny Vickers
From the March/April 2013 issue

Technology innovation is happening across the country, but there is no better place to witness the revolution other than Austin, TX, home to a rapidly expanding technology industry.

Every year, tens of thousands of people descend on the city for South by Southwest (SXSW), a nine-day stretch of festivals and conferences designed to highlight the hottest new entrants in the world of music, film and technology. Collectively, SXSW is the highest revenue-producing event for the Austin economy, with an estimated economic impact of $167 million in 2011. It has also grown very rapidly over the years—700 participants attended its first event in 1987 and over 30,000 attended this year (up 25 percent from 2012).

The interactive portion of the event focuses on technology and is a breeding ground for new ideas and creative technologies. Foursquare launched there in 2009 and now has 20 million users. This year, BF was on hand at the event to find out more about it. We attended several events hosted by the Austin Chamber of Commerce and caught up with several new innovative tech companies.

Launch Pad For New Tech

“SXSW is a great launching point for new technologies,” said Susan Davenport, Senior Vice President of Global Technology Initiatives at the Chamber who is the lead of all things SXSW tech. “It’s really a huge innovation opportunity to get your new ideas out there and into the mainstream.”

Austin-based medical device company Spot On Sciences, Inc. attended SXSW to pitch its newest device, Hemaspot™, which helped the company become a finalist in the SXSW Interactive Accelerator for innovative health technology.

“Our device allows anyone to take a blood sample in any location at any time and ship or store the samples at room temperature,” said Dr. Jeanette Hill, CEO of Spot On Sciences.

The company is only three years old and has been on the market for three months, yet it has already gained a lot of traction in international markets. The device is now being used in remote locations in Africa for HIV testing and in Scotland for diabetes research.

“For centuries, you had to go into a blood testing facility and it’s a really big barrier for people who are the sickest, homebound and the elderly, as well as people who live in remote locations,” said Dr. Hill. “With this device you can take the test from home or any location. You don’t need a lab, centrifuge, or to ship it cold. You can take a sample then mail it to the lab.”

For its groundbreaking work, the company received a $1 million Small Business Innovation Research award from the Defense Advanced Research Projects Agency (DARPA) in July 2012.

“DARPA did the initial work to develop the Internet, GPS system, and rockets,” said Dr. Hill. “They think big. So they are funding us because they see our device as a way to really change the way we do health care. We really want to revolutionize clinical science.”

The device is based on dried blood spot (DBS) technology, which is best known for newborn screening and has many additional commercial uses for clinical trials, bio-banking, population studies and a wide range of medical research.

Digital technology startup UMeTime is changing the way businesses are connecting with new customers. They have built a platform that gives local business the ability to control and offer deals at their convenience. Whether you are a business that needs to speed up your slow hours, fill your empty chairs and tables, or sell sitting inventory, UMeTime offers merchants the capability to overcome these barriers and drive sales and revenue.

The company has officially launched its mobile application and is available now on iTunes or Google Play.

“Unlike Groupon and Living Social, UMeTime functions on a hyperlocal level,” said UMeTime co-founder Brett Berman. “The app allows locals to see what’s happening around them in real time, from local businesses that they like. Customers can use it for free on their mobile device.”

UMeTime moved from L.A. to Austin three months ago to take advantage of its bustling tech scene and lower taxes.

“Austin is a very collaborative environment, from the Chamber to the government to the capital factor, startups want to support each other here,” said Berman.

Since launching in Austin just three years ago, local start-up Tabbed Out has grown from a few bars and restaurants in downtown Austin to 1,000 locations nationwide. It has developed an app that lets customers pay their tabs with their phone.

“We not only made the app, but also the software that goes on the point of sale,” said Meredith Schultz, managing marketer at Tabbed Out. “We are the only company targeted for hospitality—bars and restaurants. Our app solves the pain of tipping and splitting the tab, as well as provides the ability for customers to provide feedback to the bar or restaurants.”

Tabbed Out now has a partnership with T.G.I. Fridays and is expanding to other cities including Seattle, San Francisco, Portland, Denver, DC, Dallas and Houston. The company is located in downtown Austin close to the famous 6th street, a popular location of bars and restaurants. “Austin is very friendly for start-ups and emerging technology companies,” said Schultz. “In L.A. it’s more competitive, but in Austin everyone is friendly and there to support you especially when you are starting a new business.”

We also caught up with Firefly LED Lighting’s founder and CEO Steve Barcik Amstel, who is stepping into a new role with Convergence Wireless, a wireless networking technology company that has produced the first all wireless lighting control system for buildings.

“Whereas now there is no easy way to do an energy management system without pulling a lot of wire, our product will allow you to install an energy management and information management system and even cellular, just by adding our device to light fixtures,” said Amstel.

After Firefly LED Lighting was acquired by a larger lighter company, Austin-based Convergence Wireless seemed a perfect next step for Amstel, who has lived in Austin for 27 years and started out as a facilities engineer at Texas Instruments. Amstel founded Firefly in 2009 and won the GM technology award for his work in developing long life and high efficiency LED lighting.

“I’ve always had an interest in energy management and facilities management and how can we use new things like Internet and sensing and bigger computer power to make a difference,” said Amstel. “There is so much opportunity to reduce our country’s energy demand and to save money for facilities through these technologies that I keep getting involved in it because I get excited about what we’re going to be able to do.”

Convergence Wireless is part of the Austin Technology Incubator, which helps breakthrough a number of clean energy and energy efficiency companies each year and has led Austin to being dubbed the “Clean Energy Capital of the U.S.”

“When you look at the number of startups in Austin around clean energy and environmental considerations it’s really taken off as a clean energy mecca for start-up companies,” said Amstel.

Amazon Puts Three New Warehouses In Texas

Amazon has announced plans to open three new fulfillment centers in the state of Texas, creating more than 1,000 jobs. The sites, which will use advanced technology to help fulfill customer orders, will be located in the cities of Coppell, Haslet and Schertz.

“We look forward to putting more than 1,000 Texans to work at our new fulfillment centers in Schertz, Coppell and Haslet,” said Mike Roth, Amazon’s vice president of North American fulfillment. “We appreciate the state and local elected officials who have helped us make this exciting investment in the state of Texas.”

“We’re pleased Amazon is investing in Texas by bringing three fulfillment centers and more than 1,000 jobs to our state,” said Texas Comptroller Susan Combs. “I thank Amazon for working with us—making it possible to bring new jobs and revenue to the state of Texas.”

“This is the biggest economic development partnership announcement in the history of our city,” said city of Haslet Mayor Bob Golden. “The jobs and potential tax base that this development will bring to our community is a major milestone in our city’s growth.”

The 1.2 million-square-foot site in Schertz and the 1 million-square-foot site in Coppell will handle larger items—anything from televisions to bbqs, for example. The 1.1 million-square-foot site in Haslet will handle smaller items like books, small electronics or DVDs, to name a few.

“Amazon, coming to Coppell, complements our strategy of building a quality business base that supports the community and the region,” said Coppell Mayor Karen Hunt. “We are thrilled Amazon chose Coppell for a new fulfillment center. We recognize their large capital investment and new jobs brought to this area.”

Recently, Amazon committed to hire more than a thousand veterans in the U.S. in the upcoming year to join the hundreds of veteran employees it has on staff currently. The Department of Veterans Affairs estimates there are more than 1.6 million veterans in the state of Texas.

“We are thrilled to welcome Amazon to Schertz,” said city of Schertz Mayor Michael Carpenter. “The investment Amazon is making in our community is significant, and it is a manifest expression by yet another highly successful and well-respected company that Schertz is a great place to do business.”

USAA Real Estate Company is building the project in Schertz. Hillwood Development Company is building the project in the city of Haslet as part of AllianceTexas, a 17,000-acre, master-planned community, and is also constructing the project in the city of Coppell.

Pipe Mill Coming To Bay City

Tenaris has announced it will build its first U.S. seamless pipe mill in Bay City, Matagorda County, TX. With its proximity to Houston and to Tenaris’ North American headquarters, the location offers a combination of favorable geography, operational logistics and availability of a skilled workforce.

“Our new facility will complement our integrated global manufacturing network and work closely with our existing North American operations to further strengthen domestic production,” Paolo Rocca, Chairman and CEO, said.

Texas Gov. Rick Perry (with hard hat) and Tenaris President, North America, German Cura at a recent press conference announcing Bay City as the location of Tebaris’ first U.S seamless mill.

“This announcement is only possible, thanks to the hard work of state and local officials, as well as, the area business community, which always plays a major role in decisions like this,” Gov. Rick Perry said. “The most profound statement about our favorable economic climate comes when companies like Tenaris make an investment of this size in our state.”

“With this investment, we will strengthen our local production and service capabilities to address the growing demands of the energy industry,” German Cura, President, North America, said. “We are grateful for the support we have had from The State of Texas, Matagorda County and Bay City.”

An analysis conducted on the economic impact of Tenaris in Matagorda County states the company will have a large direct and indirect influence on the area. The new plant will generate 600 direct manufacturing jobs and offer substantial economic impact in Matagorda County as well as in the surrounding areas.

“The company’s commitment to the environment and safety is a top priority,” Cura said. “The facility is being designed according to the most stringent environmental and safety standards, with the implementation of control technologies that will reduce our emissions footprint and exceed state and federal regulations.” The new facility is expected to begin operations in 2016.

The growing biotech sector the Lone Star State recently got a shot in the arm from a federal initiative to expand domestic manufacturing of flu vaccines. [See related coverage of Texas biotechnology activities here.]

GlaxoSmithKline plc (GSK) and Texas A&M University System announced that the U.S. Department of Health and Human Services (DHHS) has approved the establishment of a $91 million influenza-vaccines manufacturing facility as the anchor of the Center for Innovation in Advanced Development and Manufacturing (CIADM) in Bryan-College Station, TX.

“The Texas A&M Center, anchored by this facility, is expected to bring more than $41 billion in expenditures within the State of Texas over the next 25 years, and will add more than 6,800 direct and related jobs to Texas,” Gov. Rick Perry said.

“GSK is privileged to deepen our commitment to U.S. public health, as part of this unprecedented public-private collaboration to protect against pandemics and bio-threats,” noted Antoon Loomans, senior vice president, GSK Vaccines. “In Texas A&M, we have found a partner with a rich tradition of service and with pioneering technologies that will benefit the entire pharmaceutical industry in making vaccines available and accessible to all in need.”

The Texas A&M Center for Innovation is headed by Dr. Brett Giroir, vice chancellor for Strategic Initiatives at the Texas A&M System, and a core team of A&M experts in biotechnology, infectious diseases, facilities planning and construction, federal acquisitions/contracting, and government affairs. The partnership with GSK was founded on a long, collaborative relationship between Texas A&M and the Wallonia Region of Belgium, with specific planning for this project beginning in the spring of 2010.

Once constructed and operational, the Center’s influenza manufacturing facility will be able to supply 50 million doses of pandemic influenza vaccine within four months of an outbreak.

“GSK’s decision to partner with Texas A&M and bring their vaccine manufacturing to our state is a testament to the investments that the A&M System and the State of Texas have made in the people, infrastructure and technologies, much of which came from critical state programs such as the Emerging Technology Fund,” Giroir said.” GSK brings unequaled influenza vaccine development, manufacturing, and regulatory expertise to our Center.”

Hitting The Sweet Spot In Sugar Land, TX

The City of Sugar Land, TX has combined a great quality of life, a growing constellation of cultural attractions and a business-friendly climate that should prove attractive to companies looking for prime locations for their facilities and tourists looking for an interesting and entertaining destination.

The focal point of Sugar Land’s push to become a destination of choice is the redevelopment of the Imperial Sugar refinery and adjacent Tract 3 property. Last year, Constellation Field, became the first project to open within the Imperial Development. This a gem of a ballpark, already becoming the go-to place for year-round entertainment, embraces the three goals of the redevelopment: historic preservation of key buildings; continued aesthetic/architectural quality; and economic development that creates successful and vibrant community projects.

The Sugar Land Skeeters’ inaugural minor league baseball season at Constellation Field last year set an Atlantic League attendance record of 465,511. When compared to minor league teams affiliated with Major League Baseball, Sugar Land ranked third in Texas behind the Triple A Round Rock Express and Double A Frisco Roughriders. In a national comparison of all professional minor league baseball teams, both affiliated and independent, Sugar Land’s average game attendance was in the top 25, with 6,751 guests per game. Constellation Field was chosen via fan vote for Baseball America’s 2013 Great Parks Calendar, the Skeeters organization was named a runner–up for Baseball Digest ‘s 2012 Organization of the Year and the new stadium was selected to host the Southland Conference Baseball Tournament, scheduled to take place in May.

Constellation Field serves as a year–round venue for community events, such as concerts and sports tournaments. It has a variety of dynamic settings, accommodating intimate catered events to large–scale stadium seating of up to 5,000 for on–field events. The stadium offered a variety of indoor and outdoor meeting and party rooms for businesses, weddings or other events. The stadium’s first two concert events were performances by REO Speedwagon and ZZ Top.

Design has begun on planned indoor Performing Arts Center that is planned for a 21-acre site near the intersection of U.S. Highway 59 and University Boulevard, with a letter of intent with ACE SL, LLC was approved in August by the Sugar Land Development Corp. The City intends to create a financially feasible, operationally self–sustainable signature facility that will promote economic development, create jobs and enhance educational offerings.

To help give ACE input on the facility’s amenities, appearance and function, two planning sessions were held in the fall with team members from ACE, the architects and the City. The schematic designs are expected to be completed and ready to share with the community this spring. No timeline has been set for completion of the project. The venue will be located in Telfair within a larger mixed–use development that includes the future campuses of Fluor Enterprises, Inc. and Texas Instruments, Inc., and other proposed uses, such as a hotel and restaurant.

Sugar Land Town Square is a 32–acre, award–winning, mixed–use, public–private development. It is now fully developed and contains upscale retail and restaurants, Class A offices, a hotel and conference center, residential condominiums and City Hall. Retailers that opened in Town Square in fiscal year 2012 included Sur la Table, Gem and Bead Gallery, Pinot’s Palette, Brilliant Sky Toys and Books and Revolution Studio. New restaurants included Ruggles Green, Guru Burgers & Crepes and BLU.

The 1.3–acre plaza hosted 200 free events in fiscal year 2012 attended by nearly 100,000 people. Events included Fitness in the Plaza, Halloween Town, Christmas Tree Lighting and the New Year’s Eve event, as well as art and fashion shows, international festivals and awareness campaigns.

At the Houston Museum of Natural Science in Sugar Land, the Hall of Paleontology has been expanded and is now twice its original size. Arranged in chronological order, it features a triceratops and many exquisite fossils from the Paleozoic era, as well as a large collection of trilobites, extinct arthropods, Stenopterygius, Holzmaden and a sea crocodile. A new, saltwater aquarium includes a wide variety of fishes and aquatic life.

Sugar Land’s stable local economy is a magnet for relocating and expanding firms. In fiscal year 2012, significant relocations were announced, including several Fortune 500 firms that operate internationally and other national and local firms. These combined projects will result in more than $221 million in new capital investment, 1000 new jobs, 2,000 retained jobs and more than 423,000 square feet of newly constructed or leased space.

Several key planned development applications were approved by the Planning and Zoning Commission and City Council during 2012, including the Imperial/Tract 3 and Telfair developments. The City Council approved the Imperial General Land Plan Amendment 1 and zoning applications for 690–acres (the majority of the development in Imperial was Constellation Field and the associated street construction). Several key projects continue within the Telfair commercial area near U.S. Highway 59, including a Costco store, the future office campus for Texas Instruments and Fluor and planning for the performing arts center.

At the end of fiscal year 2012, Sugar Land had more than 23 million square feet of commercial space; this included 7.5 million square feet of office space, 7.6 million square feet of retail space and 8.2 million square feet of industrial space.

The Sugar Land Development Corporation and Sugar Land 4B Corporation (SL4B) each collect a quarter cent sales tax that directly funds economic development programs and City activities. The focus of SLDC is business recruitment and retention initiatives, while SL4B focuses more on quality–of–life initiatives and strategic development projects.

Propane Mega-Plant Fuels Job Growth In Alvin, TX

Gov. Rick Perry recently announced that Ascend Performance Materials Texas Inc. will construct a new propane dehydrogenation facility in Alvin, Texas, creating 100 jobs and $1.2 billion in capital investment. The state is providing $1 million through the Texas Enterprise Fund to close the deal on this expansion and job creation. Execution of the state’s agreement is contingent upon finalization of a local incentive package.

“Through our combination of low taxes, predictable regulations, fair courts, skilled workforce and competitive incentives like the TEF, Texas is a national model for creating jobs and prosperity,” Gov. Perry said. “Ascend’s new facility in Brazoria County, with more than a billion dollars worth of capital investment and the creation of 100 new jobs, further strengthens the Gulf Coast’s economy and chemical production industry.”

Ascend is a global leader in proprietary technologies central to the production of chemicals, and Nylon 6,6 plastics and fibers. Nylon 6,6 is the material of choice for high performance applications in the engineering plastics and fibers industries globally, and can be found in thousands of commercial and industrial products such as apparel, automotive, building and industrial, chemicals, consumer goods, electronic and military industries. The company has five manufacturing facilities in the U.S., which allow it to develop new products from its core technologies, and provides flexibility to respond to the expanding needs of its customers. The new facility in Alvin will focus on propane dehydrogenation, a method of producing propylene, which is common chemical building block for plastic and synthetic fiber products.

“This project builds on the existing strength of the Ascend position as a global leader in the chemicals and nylon businesses. The active support of the governor’s office, as well as that of state and local authorities, has contributed to our progress in the early stages of the development of the project,” said Tim Strehl, Ascend president.

“Ascend picked the right place to expand their business,” State Sen. Larry Taylor said. “The talented workforce in Senate District 11 and the State of Texas can provide the perfect partners for innovative companies looking to succeed.”

The Ascend project is just the latest of several major projects that have come to fruition in Texas as the oil and gas giant continues to flex its energy muscles. Gov. Perry announced last year that Dow Chemical Co. will create 150 new jobs and $1.7 billion in capital investment with the location of a hydrocarbon cracker in Brazoria County. The governor was joined at the announcement by Lt. Gov. David Dewhurst, Dow CEO and Chairman Andrew Liveris and lawmakers; Perry committed the state to investing $1 million through the Texas Enterprise Fund (TEF) to close the deal on this project.

“When it comes to attracting jobs, the Texas Enterprise Fund may help close the deal and provide the final piece of the puzzle, but it’s Texas’ growing reputation as the country’s best place to build your business that puts us in the running in the first place,” Gov. Perry said. “This announcement is great news for Texas, and even better news for the people who will eventually work at this new facility thanks to this TEF investment.”

Dow Chemical Co. is a worldwide manufacturer and supplier of products that go into businesses such as specialty chemicals, electronics, agrosciences and plastics. The new ethylene cracker in Brazoria County will processes natural gas and natural gas liquids to create ethylene, to produce plastic resins and other chemical intermediates that are used to manufacture a variety of materials including transportation, building and construction, infrastructure, wire and cable, medical devices, personal care and food packaging. This will be Dow’s largest ethylene cracker worldwide, and will use U.S. produced shale gas and natural gas liquids.

“Dow is proud to be making a significant investment in Texas with the construction of a new world-scale ethylene production plant—a key part of our comprehensive plan to further connect our U.S. operations with cost-advantaged feedstocks available from increasing supplies of U.S. shale gas,” Dow Chemical Company chairman and CEO Andrew Liveris said. “We received a lot of support from our local community and from this business-friendly state via the Texas Enterprise Fund, and are proud to expand upon our longstanding history of investing in Texas.”

The Legislature created the TEF in 2003 and has re-appropriated funding in every legislative session since then to help ensure the growth of Texas businesses and create more jobs throughout the state. TEF projects must be approved by the governor, lieutenant governor and speaker of the House. The fund has since become one of the state’s most competitive tools to recruit and bolster business. To date, the TEF has invested more than $498.8 million and closed the deal on projects generating more than 67,400 new jobs and more than $19.9 billion in capital investment in the state.

Gov. Perry has made diversifying the energy mix of Texas’ electricity market one of his major priorities, helping to lower electricity prices. In 2012, Texas relied on a variety of fuel sources to meet the growing demand for electricity, including 34 percent of energy produced coming from coal, 45 percent from natural gas, 12 percent from nuclear, 9 percent from wind, and 0.5 percent from other sources such as hydro, biomass, landfill gas, and solar.

In 2007, Gov. Perry signed comprehensive energy efficiency legislation, House Bill 3693, into law. This legislation created incentives to reduce energy costs through investing in energy efficiency technologies. As a result, Texans reduced electric consumption in 2009 alone in the state by 506,000 megawatt hours. In 2011, Perry signed Senate Bill (S.B.) 1125 increasing the energy efficiency goals, including cost caps for those programs to ensure the costs remain reasonable for customers, and allowing consumers to participate in the generation market through demand-management.

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The flooded Whitehall subway tunnel in Manhattan.

By Donna Clapp
From the March/April 2013 issue

The aerial photos taken after Superstorm Sandy swept through the Northeast in October 2012 told the whole story. Houses and businesses cleared away, leaving swatches of sand or burned-out ruins in their wake. Not just in some small, low-lying areas, but huge tracks of land from Atlantic City, NJ to Breezy Point, NY. The tunnels leading to Manhattan filled with water, huge trees were pulled up by their roots, and the beloved boardwalks of the Jersey Shore were either pulverized or simply washed away, with some shore towns, like Belmar, NJ covered in sand for miles. For many people in the area both their homes and businesses were wiped out in a single night.

Nearly 50 fatalities were reported in New York in the days after the storm; the death toll in New Jersey did not exceed 40 thanks to heroic efforts by NJ Gov. Chris Christie and many others to successfully evacuate nearly 1 million state residents from vulnerable areas on the Garden State’s 130-mile-long coast.

In the wake of Sandy, electricity was cut off to 7 million of New Jersey’s 8.8 million residents; 136,000 families were left homeless; more than 10 million cubic yards of debris had to be cleared from public property; the Jersey Shore, which generates more than $40 billion in revenue annually for the state, was decimated.

The night after the storm passed through, Gov. Christie said, he logged onto Google Earth and took a look at his state from space.

NJ Gov. Christie

“It was dark,” the governor said.

In the weeks immediately after the storm hit, the enormous scope of the economic damage inflicted by Sandy came into focus: In November, economic research firm Moody’s Analytics put storm losses at $49.9 billion. About $30 billion of the loss came from the physical storm damage, split fairly evenly between households, businesses and public infrastructure such as rail lines, roads and water and sewage systems. The rest of Moody’s estimate comes from lost business activity. Moody’s also estimates that Sandy will be the third most costly U.S. natural disaster, trailing only the $157 billion total economic loss from Hurricane Katrina in 2005 and the $54.5 billion loss from 1992’s Hurricane Andrew (totals adjusted for inflation).

In January, HuffPost reported that Sandy damaged or destroyed 305,000 housing units and disrupted more than 265,000 businesses in New York. In NJ, 346,000 housing units were destroyed or damaged, and 190,000 businesses affected.

The good news is that the governors of NY and NJ began recovery assistance efforts immediately, and both states have poured extensive monetary and human resources into helping business move back toward a level of economic equilibrium.

NJ Mobilizes Storm Relief

Gov. Christie’s administration recently unveiled its proposed Community Development Block Grant (CDBG) Disaster Recovery Action Plan, which outlines how the State plans to utilize $1.8 billion in federal funding. This is the first phase of CDBG funds provided to NJ by the U.S. Department of Housing and Urban Development. Additional CDBG recovery funds are expected in the coming months. With this first phase of funding, NJ is focusing primarily on helping homeowners, renters, businesses and communities impacted by Superstorm Sandy.

The Christie Administration will dedicate more than half of this funding for low-to-moderate-income households, in accordance with HUD guidelines. Additionally, per HUD guidelines, 80 percent of the funds will be dedicated to the nine most heavily impacted counties in the state: Atlantic, Bergen, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean and Union.

Bay Head, NJ

If approved by HUD, the Christie Administration expects that more than 20,000 homeowners, more than 5,000 renters and more than 10,000 businesses will be helped, as well as dozens of local governmental units.

“This plan puts into motion the specific actions we’ve been designing to get relief out as quickly as possible to our Sandy-impacted homeowners and businesses—to reconstruct, rehabilitate and elevate homes, and to get over hurdles for our small businesses to get up and running again,” says Gov. Christie. “These programs have been carefully, but quickly designed to fill the unmet needs faced by our residents to rebuild in a safer, more enduring way, to strengthen our impacted local economies going into this summer and to help preserve the unique character of our shore communities as we’ve known them. With this first round of funding, we will also begin an aggressive marketing effort to let people both in the region and across the country know that New Jersey is rebounding and that the Jersey Shore will be open for business this summer.”

As part of the plan, the Christie Administration is setting aside $500 million in funding for the New Jersey Economic Development Authority to administer the following activities:

• Small Business Grants of up to $50,000 to eligible businesses that sustained physical damage. A $300- million allocation will fund grants that can be used for purposes including rehabilitation, new construction, equipment, inventory, mitigation, refinancing and working capital.
• No-Interest Loans for Storm-Impacted Small Businesses ranging from $100,000 to $5 million for documented physical damage not covered by other sources. These loans are intended to assist eligible businesses that suffered physical damage, as well as spur economic revitalization by providing funding for expansion and new businesses in storm-impacted areas.
• Neighborhood And Community Revitalization Programs to provide funding of up to $10 million to help communities rebuild commercial areas with public facility improvements such as streetscapes, lighting, and sidewalks and undertake other activities critical to restoring and strengthening local economies, including micro-loans for storm-related damage and loan guarantees as well as façade and code-related improvements.
• A Tourism Marketing Campaign to promote storm-impacted businesses and shore communities by letting the nation know that New Jersey is recovering and that communities are open for business. The $25-million campaign also would encourage New Jerseyans and tourists to shop local.

In addition, the NJ Business Action Center is working to increase awareness of access to state and federal programs, attending local chamber of commerce roundtables and regional/county business development events, continuing outreach to key economic development partners and collaborating with higher education. The Economic Development Authority (EDA) is leading the Main Street Disaster Relief Program, boosting the lending capacity of community development financial institutions, and, following approval of New Jersey’s Action Plan from HUD, will work to provide grants and no-cost loans to small businesses, and launch an aggressive marketing campaign to help storm-impacted businesses and communities.

President Obama joins Gov. Christie at a post-Sandy press conference in Brigantine, NJ.

“In response to this natural disaster, New Jersey has coordinated a range of multi-agency resources to assist impacted businesses and ensure they are operational quickly,” says Lt. Gov. Kim Guadagno. “Providing a thorough and interdepartmental business recovery assistance program is another demonstration of our support for our business community and their workers. The Business Action Center can help businesses tap into a variety of resources that will help them begin to recover from this catastrophic storm.”

On top of these new programs, New Jersey has a number of incentives in place to help with the recovery. Many loans, disaster relief and other programs that are helping companies rebuild are being implemented at the local and state level. Here are some of the programs being offered by NJ to assist companies during the recovery process:

• REBUILD New Jersey: This program provides low-interest loans to businesses that are recovering from the storm. The loans range from $10,000 to $30,000 and can be used to pay for building repairs, equipment and inventory purchases, rent or mortgage payments, salary expenses and utility costs.
• Clean Energy Program: Any business owner that is recovering from Sandy and is located within one of the identified damaged areas may be eligible to receive enhanced incentives on high-efficiency equipment/ appliances under NJ’s Clean Energy Program.
• Main Street Disaster Relief: This program provides guarantees of up to $500,000 for commercial lines of credit to businesses that need access to cash to improve their damaged property while awaiting insurance proceeds.
• Storm Recovery Loan Program: Launched by UCEDC, a non-profit economic development corporation, this program is a low-interest, fast-turn-around, working capital loan program for small businesses damaged by Sandy. Small business owners can borrow up to $25,000 at 2 percent interest for five years with no collateral requirements. For larger capital needs, the program offers loans up to $250,000 with conventional interest rates and processing periods.

Preparing For NJ’s Future

There are also several initiatives in place to invest in New Jersey’s future growth. A $26-million investment by the state Department of Labor Workforce Development aims to connect those that are unemployed to Sandy recovery job opportunities through:

• Recovery4Jersey: Funds will support private sector companies focused on rebuilding New Jersey. Companies working with utilities, construction and other cleanup efforts will have access to this grant for up to $100,000.
• Skills4Jersey: This initiative focuses on upgrading the occupational, literacy and safety skills of current employees and the training of new employees.
• Opportunity4Jersey: Focused on filling the need for skills workers, this step of the initiative will fund training programs directly connected to the need of a number of employers.

Seaside Heights, NJ

Companies continue to invest in New Jersey, with recent announcements by Lockheed Martin, Pfizer, Amazon and others. In fact, the Partnership for Action continues to be very busy responding to companies expressing interest in the state. According to the state, the volume of requests has actually increased since Sandy.

This may be due to the fact that the state has been more aggressive than ever to let the world know that NJ is open for business. Choose New Jersey, Inc. launched an integrated marketing campaign titled “New Jersey. A State of Resilience” in January targeted at corporate decision-makers in key markets. Advertisements were strategically placed in Washington, D.C. during the Presidential Inauguration, New Orleans during the Super Bowl and Mardi Gras, and at the Site Selectors Guild Conference, as well as and on highway billboards throughout NJ. The ads will continue to run throughout the year in top metro areas based on alignment with New Jersey’s target industry sectors.

In addition to these advertisements, the Partnership for Action and Lt. Governor Kim Guadagno have been taking the message on the road, meeting with companies and site selectors face-to-face in New Jersey, as well as in other U.S. and international markets to make sure they know New Jersey is open for business.

Superstorm Sandy obviously put tremendous pressure on the state’s utility infrastructure. PSE&G announced a $3.9 billion, 10-year proposed infrastructure plan at the end of February that will raise many electric switching stations and substations throughout New Jersey to protect them against any future natural disasters. The plan is awaiting approval from the Board of Public Utilities.

NY’s Rapid Response

Just a few days ahead of Gov. Christie’s action plan announcement, NY Gov. Andrew M. Cuomo submitted New York State’s proposal for housing and business recovery programs to HUD to help New Yorkers devastated by Superstorm Sandy. These programs will provide billions of dollars in direct aid to individuals, homeowners, and small businesses using funding from the $60 billion Sandy Aid approved by Congress in January. The State designed the diverse array of programs to specifically target federal aid to New Yorkers most in need and ensure the affected communities, and the entire region, builds back smarter and stronger than before.

President Obama speaks with NY Gov. Cuomo in Staten Island.

“Superstorm Sandy was the worst storm to hit New York State and our region in recorded history, and its impact devastated homes and businesses across Long Island and the metro area,” says Gov. Cuomo. “This plan was put together with the input of homeowners and small businesses in affected communities, and it will serve as a blueprint to guide our housing and private sector recovery.”

Recently, HUD issued rules and regulations governing the use of the first $1.7 billion allocated to New York. The programs will be offered outside New York City (NYC will administer similar programs to meet the same needs its own CDBG-DR allocation of $1.7 billion). The Action Plan represents the spending plan only for this initial allocation of CDBG-DR funds and does not reflect the full scope of recovery activities being undertaken by NY through other state and federal programs.

“I look forward to building on the partnership we have created with Governor Cuomo to help communities in New York rebuild in a way that makes them stronger, more economically competitive and better able to withstand the next storm,” says Housing and Urban Development Secretary Shaun Donovan, who also serves as Chair of the Hurricane Rebuilding Sandy Task Force.

Gov. Cuomo has made it clear that preparing for the next storm must also include some tough decisions about which areas should be restricted from rebuilding. The NY governor wants to set aside $400 million to purchase vulnerable shore properties and restore them to uninhabited wetlands.

Breezy Point, NY

NY also proposes to use $415 million to help businesses replace or repair lost or damaged inventory and equipment, repair and mitigate damaged facilities, and cover working capital needs. The funds will be disbursed through the following programs:

• Small Business Grants—$233 million: NY will direct grant funds to help businesses, including farming and agricultural operations, and non-profits that suffered physical damage or inventory loss, as a result of Superstorm Sandy. Grants of up to $50,000 to cover eligible, uncompensated losses are proposed to enable an affected business to purchase or repair needed equipment, repair or rebuild facilities that were damaged or destroyed in the storm, and/or provide the working capital necessary to sustain and grow the business. The state may extend grants up to a total grant amount of $100,000 to businesses that suffered physical damage and are at risk of closure or significant employment loss without an increase in grant size. Special Business Mitigation Grants of up to $100,000 are also proposed to cover expenses such as installing back-up generators or elevating key equipment, to help prevent damage to these businesses in future disasters.
• Small Business Loans—$130 million: NY will create a low-interest loan program to help small businesses, including farming and agricultural operations, and non-profits that are at risk because they suffered losses of inventory, or physical assets as a result of the storm. Loans of up to $1 million may be available to help these businesses purchase or repair needed equipment, repair and rebuild facilities that were damaged or destroyed in the storm, and/or provide the working capital necessary to sustain and grow the business. Loans of higher amounts may be offered to eligible businesses that are at risk of closure or significant employment loss. Terms will be flexible, with interest rates held below 2 percent for borrowers.
• Business Consulting, Mentoring—$3 million: NY will create an online network to facilitate connections between consultants and business practitioners who are willing to provide consulting and mentoring services to small businesses hit hard by the storm. Up to $3 million will be used to build the network and support the providers of the consulting and mentoring services, including financial management, real estate, marketing, legal and industry-specific assistance.
• Coastal Fishing Industry Recovery Program—$20 million: Coastal fishing supports thousands of jobs in New York State. Superstorm Sandy caused significant damage to the fisheries along New York’s coastline, and while these fisheries will also be eligible to participate in the other small business assistance programs announced today, the industry is subject to unique considerations. To help this vital industry recover, New York State will create a targeted program to support grants of up to $50,000 available to affected businesses. These grants would cover otherwise eligible, uncompensated losses and help the industry prepare now for the upcoming fishing season.
• Seasonal Tourism Industry Recovery Program—$30 million: While these seasonal tourism businesses also will be eligible to participate in the other small business assistance programs, seasonal small businesses in coastal and riverine communities require an immediate injection of support to ensure that they can reopen and operate in time for the upcoming summer season. Accordingly, the state seeks to provide grants of up to $50,000 to eligible businesses in this industry. The grants will cover otherwise eligible, uncompensated losses and working capital needs to help them prepare for the coming season.

In addition, New York State will create a dedicated infrastructure bank to help coordinate infrastructure development and investment across the disaster region. An initial capitalization of $20 million from the first allocation of CDBG-DR funds will be combined with State funds and committed to financing eligible infrastructure projects that apply for assistance through the Bank. The Bank will benefit New York by introducing a centralized approach to infrastructure related decision making rather than a project-by-project, agency specific process. The focus of the Bank’s investments will be on projects that increase the resiliency of the area’s infrastructure to withstand future threats or provide redundancy of critical systems. It is expected that the Bank will be funded with up to $200 million through subsequent allocation rounds or such other amount to be jointly determined with HUD.

The infrastructure bank will take several steps to carry out these goals, including developing a system for prioritizing infrastructure projects and initiatives, providing a centralized approach to the state’s infrastructure planning process, managing state recovery funds for infrastructure and other sources of capital, negotiating opportunities for private sector investment in infrastructure and financing approved projects. The planning processes and expertise of the New York Works Task Force will be embedded into the Bank’s functions.

The infrastructure bank may make use of funds from several sources, including federally allocated recovery funds, diverted or created revenue, proceeds from the sale of long-term debt and credit enhancements with other state entities. In addition, the bank will work with both public and private investors to raise funds to finance infrastructure developments. An advantage that the bank will have is the ability to combine several sources of funds (e.g., Federal funds with private funds) to finance projects as effectively as possible. The bank will showcase potential projects to engage the private sector in opportunities for investment in infrastructure.

New York State also will establish the Community Reconstruction Zone (CRZ) program to facilitate community-driven planning to rebuild and revitalize severely damaged communities. The state anticipates allocating approximately $25 million from this first allocation to provide planning grants to communities that suffered community-wide impacts. Later allocations will be used to implement final CRZ plans. The planning grants will facilitate the retention of outside experts as consultants to a participating community’s planning committee, as well as the completion of critical studies to determine the key vulnerabilities and needs of the community. The state will provide information and guidance to the committees to assist them in identifying and using such outside resources effectively and efficiently. It is anticipated that the CRZ program will be funded up to $500 million, an amount to be jointly determined with HUD.

Energy-related storm damage mitigation is critical for essential services facilities including, in particular, hospitals, nursing homes, and other facilities for vulnerable populations. Many essential services facilities did not have backup power systems or had ineffective backup systems that failed during the storm. As a result of this, numerous facilities had to evacuate patients which posed a greater risk to those patients than allowing them to remain in place during the storm.

To address this critical need, New York State will establish the Resilience and Retrofit Fund. The State anticipates allocating approximately $30 million from this first allocation of CDBG-DR funding to provide credit enhancement or leverage for private sector financing of energy-related mitigation projects.

Sandy affected more than 140,000 National Grid gas customers in New York City and on Long Island. In addition to the state’s efforts, National Grid has launched a $30-million Emergency Economic and Community Redevelopment Program to complement federal, state, city, insurance and other funding sources currently available to help communities and individuals rebuild. Administered through their partner HeartShare, the program targets gas customers—encouraging job retention and promoting installation of energy-efficient equipment and systems. The program has three tier levels:

1. Funding plumbing inspections (one-time, $150 bill credit eligible to residential customers)
2. Funding heating equipment for the most vulnerable residential customers, with grants available up to $6,000
3. Supporting commercial redevelopment and rebuilding communities with grants available up to $250,000

“We remain steadfast in our commitment to keep New York State a great place to live, work and prosper,” says National Grid’s NY Jurisdiction President Ken Daly. “This is our home, and we’re 100 percent determined to help our customers and communities recover from the devastating effects of Sandy.”

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Rendering of FirstEnergy Transmission Control Center

By Ed Felton
From the January/February 2013 issue

Ohio has initiated an employer-driven program is designed to provide direct financial assistance to train workers and improve the economic competitiveness of the Buckeye State’s employers.

The voucher program is designed to offset a portion of the employer’s costs to upgrade the skills of its incumbent workforce and will provide reimbursement to eligible employers for specific training costs accrued during training. The program’s funding will be used in conjunction with private contribution to fund skill-upgrade training. Eligible employers must demonstrate that by receiving funding assistance through the Voucher Program that their business will not only obtain a skilled workforce but will improve their company processes and competitiveness.

The program is first come, first served. The caps on the program funding will be $500,000 per eligible company and/or $4,000 per eligible employee, with a reimbursement rate of up to 50%; all training must begin and be completed between February 4, 2013 and June 30, 2013.

Only one application per employer will be accepted per program year. If an employer has multiple sites, those sites must work together to submit the one application. The company’s NAICS code will determine eligibility as to the ten targeted industries.

FIRSTENERGY PLANS NEW TRANSMISSION CENTER

FirstEnergy Corp. has announced plans to construct a new state-of-the-art and environmentally friendly transmission control center in Akron, OH. The highly secure facility will be built at the company’s West Akron Complex, an existing 150-acre site that already houses an Ohio Edison service center, a FirstEnergy call center, and a large office building where several company subsidiaries are based.

While preliminary site preparation work is being done this fall, groundbreaking for the 70,000-square-foot facility is expected to occur in the spring of 2013, with planned completion of construction by the end of the year. The new “Akron Control Center,” as it will be known, is expected to cost approximately $45 million.

The new facility will replace the company’s existing Ohio Transmission Control Center located in Wadsworth, OH, which will be used as a back-up and training facility. Most of the 112 employees who currently work in Wadsworth will be transferred to Akron in stages as the new facility is completed.

FirstEnergy expects to submit this project to be considered for the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) certification. LEED is an internationally recognized third-party green building certification system that recognizes buildings that have met the highest possible green building standards and verifies a project’s level of environmental responsibility and ability to provide occupants with a healthy place to live and work.

The Akron Control Center is being designed by Akron, OH-based Braun & Steidl Architects. Fairlawn, Ohio-based Welty Building Company, which previously served as construction manager for FirstEnergy’s West Akron Campus, also will be construction manager for this project. In addition, GPD, of Akron, is providing electrical/mechanical engineering services and Thorson Baker & Associates, of Richfield, Ohio, is doing site development and structural engineering.

“The new Akron Control Center is designed to make our current high level of transmission service reliability even better,” said Charles E. Jones, Jr., senior vice president and president, FirstEnergy Utilities.

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Port Everglades (Source: Wikipedia)

By Ed Felton
From the January/February 2013 issue

Florida East Coast Railway has signed a joint marketing agreement with Port Everglades to promote the new, 42.5-acre intermodal container transfer facility.

The facility will be adjacent to the Southport container terminals at Port Everglades and will facilitate containerized cargo transfer through the port to and from the FEC mainline. The facility will handle domestic and international cargo that is to result in advantageous transfer and shipping fees for Port Everglades’ customers, according to a news release.

The facility is being relocated from the current rail facility on Andrews Avenue, two miles from the port. As a result, traffic congestion on State Road 84 is to be reduced.

“The ICTF with new technology will allow FEC to efficiently and effectively deliver superior transportation service between South Florida and the Eastern United States,” FEC CEO Jim Hertwig said. “This agreement enables FEC and Port Everglades to be in a competitive position for additional freight and jobs beyond the completion of the Panama Canal.”

The agreement includes joint promotions including international business development, the creation of promotional materials, shared sponsorships and milestone events, according to a news release.

FEC signed a lease agreement with Broward County in March 2012 to build and operate the intermodal facility for 30 years. Broward contributed the land for the facility to serve its domestic and international business segments. The Florida Department of Transportation recently provided FEC with $18 million in grants through its Strategic Intermodal System program for the intermodal facility. The remaining $35 million in costs will be covered by the FEC, with $30 million from an FDOT State Infrastructure Bank loan and $5 million from the FEC capital plan.

The project is expected to create 767 construction jobs over the next two years, according to the news release. It is estimated that the facility will remove 180,000 truck trips from roads by the year 2027, reducing both highway congestion and air emissions.

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Georgia is America’s leading source of sustainable biomass, and is ranked third in the US for its biomass potential. Georgia has the world’s largest biomass pellet facility, exporting 750,000 tons a year.

By Donna Clapp
From the January/February 2013 issue

Gov. Nathan Deal announced recently that jobs and investment generated by the Global Commerce division of the Georgia Department of Economic Development (GDEcD) jumped by almost a third during the state’s most recent fiscal year. The department reported that the 403 company expansions or relocations with which it assisted created 28,776 jobs, an increase of 29 percent from last fiscal year, and $5.97 billion in investment, a 32 percent increase.

“These figures are more than numbers—they represent the growth of hope and opportunity for our citizens,” said Gov. Deal. “This tangible evidence of proactive company growth is a sign that not only is our economy on the path to recovery, but also that Georgia’s top-notch business climate has helped us stand out against our competition.”

The 403 projects worked on by GDEcD’s Global Commerce Division during fiscal year 2012, which ended June 30, 2012, also represented an 11 percent increase from the previous year. Of those projects, 36 percent were new locations, high- lighted by companies such as Baxter, Caterpillar and Bed, Bath & Beyond. These three projects alone created 4,100 jobs. The remaining 64 percent were expansions by existing Georgia companies. The largest of these expansions were by Kia Motors Manufacturing Georgia (1,000 jobs) and Home Depot (700 jobs).

Foreign direct investment, which typically creates more jobs per project, accounted for 29 percent of the year’s projects. Kia suppliers such as Mando and Daewon America continued to add jobs to the west Georgia region while others around the state were generated by companies including Kubota, Toyota Industries, Erdrich Umformtechnik, Dinex and SANY.

The Global Commerce Division also managed aggressive outreach to Georgia’s small businesses and entrepreneur-led ventures, with 66 per- cent of companies assisted by the division’s Existing Industry and Regional Recruitment team during FY12 classified as small businesses. More than 1,100 startups and small businesses were assisted through direct contact or resource awareness.

With the increased funding assistance from two federal grants, GDEcD’s International Trade Office also experienced a successful year, facilitating 17 percent more export deals than the previous year, for a total of 311. The trade division also served 1,111 companies, increasing export opportunities it provided to Georgia companies by 121 percent .

AN AUTOMOTIVE POWER RISES

It’s clear from the company expansions listed above that Georgia is having a big growth spurt in the auto- motive industry. This growth came from both U.S.-based companies and international automotive companies as well. Here are a few of the projects that were expanded or relocated to Georgia in 2012:

In November, Gov. Deal, Porsche President and Chief Executive Officer Detlev von Platen and numerous dignitaries broke ground for Porsche North America’s new headquarters at Aerotropolis Atlanta. The 26.4-acre complex will employ 400 workers and create 100 jobs.

“This world-class facility under- scores our commitment to customers and dealers in the United States, which remains the single largest market for Porsche vehicles,” said von Platen. “Today’s ceremony symbolized Porsche putting down permanent roots here in Atlanta, a city we have proudly called home since 1998.”

Porsche’s expansion and new location, announced in May 2011, will consolidate U.S.-based Porsche employees from Porsche Cars North America as well as the company’s financial, business and consulting arms. The site will encompass not only the company’s U.S. headquarters, but also the Porsche Technical Training Center as well as the Porsche Customer and Driving Experience Center, featuring a 1.6-mile test track and handling circuit. The company anticipates beginning operations in the first quarter of 2014.

“Porsche’s new headquarters is a terrific asset to Georgia’s economy and moves us closer to becoming the No. 1 state in the nation in which to do business,” said Deal. “I’m confident One Porsche Drive will become a renowned address that stands for vision, innovation and success—as well as one of the greatest driving experiences in the world for the mil- lions of travelers who arrive in our great state each year.”

The company chose Aerotropolis Atlanta after a global search for the best location to grow and showcase its brand. Proximity to the customer base represented by Hartsfield-Jackson Atlanta International Airport was a key factor in Porsche’s selection of the Aerotropolis site, the location of a former Ford Motor Company plant. Aerotropolis is owned and developed by Jacoby Development.

Partnering to assist the company with its expansion were the Georgia Department of Economic Development, City of Atlanta, City of Hapeville, InvestAtlanta, Fulton County and Clayton County. Blair Lewis, director of the Georgia Department of Economic Development’s Corporate Solutions team, led the project team that assisted Porsche with its location.

Gov. Deal announced just a month later that Mando Corp. will be constructing a new casting facility in Meriwether County, investing $80 million and creating 660 jobs by 2020. Deal called on Mando at its Seoul headquarters during his business mission to Korea in the fall of 2011.

“It was a pleasure to meet with Mando’s leaders in Korea and learn about the company’s plans for growth,” said Deal. “Because Mando has an existing facility here, it was quick to realize how Georgia’s business resources are an advantage for an international company looking to expand. This decision moves us closer to making Georgia the No. 1 place in the nation in which to do business.”

The new 317,000-square-foot, state-of-the-art casting facility in Meriwether Industrial Park will further expand Mando’s footprint in the United States, supporting the company’s manufacture and assembly of a new line of energy-efficient automotive parts. This casting facility will initially serve Mando’s Machining/Electric Power Steering Gear/Electronic Stability Control Module facility in North America.

Mando Corp. initially selected Meriwether County for its third U.S. manufacturing operation in September 2011 and has invested $200 million in a facility that created more than 400 jobs. It selected the Meriwether location for its expansion after a competitive search. With this expansion, Mando will become the largest employer in Meriwether County.

“We are extremely pleased that Mando has chosen our county to locate the new facility, and we certainly appreciate the investment and the new jobs they will create,” said Meriwether County Commission Chairman Nancy Jones. “I am so proud of the total spirit of cooperation by all parties, to make this expansion happen and grow our industry in Meriwether County.”

Mando was assisted with its expansion by the Georgia Department of Economic Development, the Meriwether Industrial Development Authority and the Meriwether County Commission. Georgia Department of Economic Development project manager EJane Caraway led the state’s project team. Hee-jung Shin, director of the state’s Korean office, also assisted with the project.

“Georgia’s labor climate is ranked No. 1 in the nation, so it’s not surprising that our existing industries are thriving,” said Cummiskey. “It’s important to note, though, that partnerships like the ones in this part of the state play a critical role in growing companies while retaining jobs in Georgia.”

Just a month later in the beginning of January 2013, Gov. Deal announced that yet another automotive company, General Motors will open an IT Innovation Center in Roswell, GA creating 1,000 high- tech jobs and investing $26 million. The move is part of GM’s company- wide shift to a new operating model to support its global business goals.

GM will purchase a 228,000-square-foot former UPS facility on Warsaw Road in Roswell for the Innovation Center, the third of four such centers it is opening in the United States to strengthen its internal innovation capabilities as part of the company’s transformation to improve performance, reduce the cost of on-going operations and increase its delivery of innovation. GM will hire software developers, project managers, database experts, business analysts and other IT professionals for the Innovation Center in Roswell. The company will begin recruitment immediately and anticipates adding approximately 1,000 new employees, recent college graduates as well as seasoned professionals, over the next three to five years.

The Georgia Department of Economic Development partnered with the city of Roswell to assist GM with its location. Blair Lewis, director of the Corporate Solutions group at the Georgia Department of Economic Development, was the project man- ager for the state. “It’s great to have a significant General Motors presence in the state once again,” GDEcD Commissioner Chris Cummiskey said.

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The Indiana Economic Development Corporation (IEDC) announced in January that in 2012 it secured job commitments from 256 companies that project to create more than 27,620 new jobs, more than any other year on record.

According to the U.S. Labor Department, Indiana ranked second in the country for private sector jobs added in November and December 2012, and is fifth for job growth over the past year. Since the low point of employment in July 2009, Indiana’s private sector jobs growth (6.6 percent) has nearly doubled the nation (3.8 percent).

Driven by companies like Amazon, Toyota, Magnetation, Angie’s List, Sugar Creek Packing, Supreme Industries and Sweetwater Sound, Indiana welcomed commitments for 27,620 new jobs and $6.41 billion in capital investment in 2012. The new positions, phased in over the next five years, pay an expected average hourly wage of $21.77, higher than the state’s current average of $19.74. The average amount of state conditional tax incentives offered to companies on a per job basis was $8,689, down from around $37,000 in previous administrations. Under the IEDC, state incentives are activated only when new jobs actually occur.

Automotive-related manufacturing represented the largest sector for new jobs in 2012, with 7,180 new jobs projected. At 5,606 job commitments, the business services industry was second in new growth, followed by non-automotive manufacturing with 5,602 projected new jobs. Job commitments for other sectors include: logistics (2,388), food production (2,022), life sciences (1,606) and information technology (1,589).

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Rendering of new Boeing facility in West Jordan, UT

By Jonathan Sanders
From the January/February 2013 issue

A recent Utah Cluster Acceleration Partnership study reported that Utah’s life sciences industry grew by 25.8 percent from 2001 to 2010, which included a 9.2 percent increase in jobs from 2007 through 2010. At the national level, growth in life sciences employment was 8.4 percent from 2001 to 2010, but essentially flat during the period 2007 through 2010.

Across four major subsectors— Medical Devices and Equipment; Drugs and Pharmaceuticals; Research, Testing, and Medical Labs; and Biomedical Distribution—Utah is specialized with at least 20 percent higher level of industry concentration than is found at the national level for that subsector. In addition, each of the major subsectors of the life sciences industry is growing faster in Utah.

Utah’s life sciences industry is a source of high-wage jobs. The average wage for jobs in the life sciences stands at $59,480, or 53 percent above the private sector average of $38,932.

The life sciences industry has a significant impact on the Utah economy. In 2010, the cluster contributed $14.6 billion in economic output to the state and supported more than 63,000 jobs with workers earning $3.5 billion in personal income. Utah is targeting growth in four life science sectors:

• Novel medical devices
• Molecular diagnostics and personalized medicine
• Molecular medicine; drug discovery, development, and delivery
• Natural products/dietary supplements

In addition, the Utah Governor’s Office of Economic Development has a long history of offering tax incentives for biotech companies such as Edwards Life-sciences and Merit Medical. Most recently, the state supported a major expansion of BioFire Diagnostics, whose innovations in molecular diagnostics are helping propel Utah into its future life sciences economy.

Rounding out Utah’s life sciences story is continued investment in research and development and educating the workforce of tomorrow. Exemplifying this effort is the Utah Science Technology and Research (USTAR) initiative (innovationutah.com). USTAR accelerates the ability of the University of Utah (U of U) and Utah State University (USU) to recruit world-class researchers, specifically into high-growth focus areas such as neuroscience and biomedical innovations. The initiative enabled the construction of two interdisciplinary research and development facilities at Salt Lake City and Logan campuses. USTAR operates outreach teams across the state to help entrepreneurs and existing companies commercialize new technology and access the resources available at higher education institutions.

The new 208,000 square-foot USTAR center at the U of U and the 118,000 square-foot sister facility already in operation at USU in Logan have accelerated the state’s ability to bring in entrepreneurial- minded, “catalyst-type” researchers. As a result, Utah is fulfilling its objective to become a world-class research destination, particularly in bioengineering, genetics and cancer research.

USTAR also has invested in the BioInnovations Gateway, a life sciences incubator that supports up to seven client companies while exposing high school and college students to intensive internships in biomanufacturing and biotechnology. Client companies have not only trained these young students, but have also hired them upon graduation. For more information, contact Michael O’Malley at momalley@utah.gov or 801-538-8879.

BOEING SETS UP SHOP IN WEST JORDAN

Boeing has announced the purchase of a new building in Salt Lake County, UT. Employees at the new site, located in West Jordan, will focus on fabrication of composite horizontal stabilizer components for the 787-9 jetliner.

“The site we’ve chosen is an ideal location to add composite manufacturing capability focused on Boeing’s key business strategies,” said Ross R. Bogue, vice president and general manager of Boeing Fabrication. “This new facility will provide a real competitive advantage in our supply chain by expanding our internal composite capabilities.”

The new site, located 20 miles from Boeing’s fabrication and assembly site in Salt Lake City, was purchased from Masco. The close proximity of the two facilities will help improve the efficiency from component fabrication to assembly of the 787-9 horizontal stabilizer. The composite component fabrication facility is expected to create approximately 100 new jobs.

When finalized, the facility will provide the Boeing Salt Lake team with the flexibility to meet the demands of a highly competitive market.

“Boeing appreciates its continued relationship with the state of Utah and we are looking forward to creating a new partnership with the city of West Jordan,” said Craig Trewet, director of Boeing Salt Lake.

CAPTIONS:

p. 9 – Rendering of new Boeing facility in West Jordan, UT

UTAH FAST FACTS

• Population (2011 Est.): 2,817,222
• Largest Cities (2011): Salt Lake City, 189,899; West Valley City, 131,942; Provo, 115,321;
West Jordan, 105,675; Orem, 90,727
• Targeted Industries: Data Centers, Adv. Composites, IT, Digital Media, Renewable Energy, Manufacturing, Retail, Sports & Outdoor Products
• Key Incentives: Enterprise Zones, Rural Fast Track Program, ED Tax Increment Financing, Motion Picture Incentives, Private Activity Bond
• GDP (All Industry 2011): $124.5 billion*

*Bureau of Economic Analysis, U.S. Department of Commerce

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Forward looking counties in Virginia are constantly looking for ways to help its businesses create jobs and expand their operations. One way to do this is to streamline the applications process for businesses moving into foreign trade zones (FTZs).

A good example of this is taking place in Culpeper County. In hopes of making it even easier and faster for businesses to take advantage of Culpeper’s Foreign Trade Zone (FTZ), the country recently filed an application with the U.S. Department of Commerce’s Foreign-Trade Zones Board to amend Culpeper’s FTZ management plan to an Alternative Site Framework (ASF). Under the ASF, foreign-trade zone grantees have greater flexibility in meeting requests for zone status, while making the FTZ application process easier and less expensive.

One of the aspects of the Alternative Site Framework is that FTZ Grantees, such as Culpeper County, must designate a “Service Area” in which the Grantee agrees to extend the efficiencies of the ASF approach and provide foreign-trade service. Culpeper’s ASF Service Area consists of 21 contiguous counties throughout central Virginia.

“Our FTZ has been providing our internationally-focused businesses with significant competitive advantages for more than 20 years,” said Carl Sachs, Culpeper County’s director of economic development. “By amending our plan to an Alternative Site Framework, we’ll be able to extend the advantages of our Foreign Trade Zone to even more businesses.”

In 1992, Culpeper County received approval from the U.S. Department of Commerce for General Purpose Trade Zone #185. As one of Virginia’s five strategically-placed Foreign Trade Zones, Culpeper’s FTZ allows companies to improve the cost competitiveness of their U.S.-based operations vis-à-vis their foreign-based competitors.

“In recent years, we’ve become a key player in high-tech. With Terremark’s data center campus, and the Library of Congress’ Packard Campus for Audio-Visual Conservation, folks unfamiliar with Culpeper sometimes now see us as a high-tech business magnet,” Sachs said. “The truth is, we actually offer the best of both digital and the tangible world. We have a strong manufacturing and agricultural heritage backed by a skilled and talented workforce. And we offer a high-tech infrastructure (abundant power, fiber optics, water) and workforce to support the most advanced technology.”

“Our FTZ and new Alternative Site Framework will play a key role in ensuring that our time-honored tradition of actually building, and growing, tangible products continues to thrive right along side of successes in cyberspace,” he added.

To learn more about Culpeper’s Foreign Trade Zone #185, call Carl Sachs at 1.540.727.3410 or email csachs@culpepercounty.gov.

TOLL INTEGRATED SYSTEMS EXPANDS MANUFACTURING

Toll Integrated Systems will occupy and modernize a vacant manufacturing facility on Maddox Drive in Culpeper, VA. This new manufacturing facility, projected to begin operations in summer 2013, will increase Toll Integrated Systems’ ability to provide roof trusses, wall panels, and other building materials to communities in the Northern Virginia and Maryland markets. Once fully operational, it is expected to bring 30 jobs immediately to the Culpeper area, with more jobs growth anticipated.

“As the housing market improves and continues to grow, we expect to expand our Culpeper facility and add additional employees there to meet the demand. Culpeper is a wonderful community and we worked closely with the Town and County to insure that this facility and this location would maximize our opportunities for growth and success,” said Keith Fell, Toll’s director of manufacturing.

Toll Brothers, the nation’s leading builder of luxury homes, has been in business for more than 45 years. Toll Integrated Systems, a division of Toll Brothers, has been providing quality home building products and services for nearly 25 years and currently operates three manufacturing facilities across the U.S.: Morrisville, PA; Emporia VA; and Knox, IN.

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Talent. Access. Infrastructure. Affordable. Pro-Business. Georgia has everything businesses need to succeed, and it’s also a great place to live. That’s why Atlanta is home to more Fortune 500 companies than any metro area in the nation except New York City and Houston.

It has been a great year for Georgia, with several big development wins in recent months [see chart below].

Georgia Power’s economic development organization is a one-stop source for business and industrial development. Over the past decade alone the utility’s Community & Economic Development organization has helped bring almost 100,000 jobs and $19 billion in capital investment to Georgia.

Georgia Power Transmission (Photo credit: Georgia Power)

The utility can assist with every step of the site selection process, from responding to RFIs, to coordinating sites visits, to working with state agencies and local communities for access to incentives, to hosting prospect visits in the Georgia Resource Center.

Georgia Power offers total project management, workforce analysis, detailed demographics, engineering (site analysis, preliminary site plans and design, infrastructure analysis, soil and wetlands analysis), building renderings and virtual 3-D building analysis, city and state comparisons, coordination of employer interviews and liaison to colleges and universities. At SelectGeorgia.com, Georgia Power’s property search database contains available buildings and sites in the state, as well as extensive information on all of Georgia’s 159 counties and 535 cities. Industry reports, as well as information about wage rates, incentives, unionization, taxes, transportation and quality of life can be found on the organization’s website.

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When Gov. Andrew Cuomo boldly moved to fundamentally change New York State’s approach to economic development, he recognized that the old top-down approach would no longer work.

Today, the Regional Economic Development Councils the governor created have transformed the Empire State’s model for job creation and business development.

Located in every region of the state, with members from the business, academic and labor communities, Regional Councils already have been successful in helping create jobs and generate private sector investment to boost local economies. Each Council created a strategic plan to guide business investment and promote growth, and in less than a year, all 739 projects that were awarded a total of $785 million in state funds in December 2011 are underway, with more than 75 percent already reaching their first achievement milestone.

New York also has received thousands of applications for job-creating projects for a second round of up to $762 million in state resources that will be awarded in this fall. Most importantly, each Council has moved full speed ahead with the implementation of their strategic plans, which provide the blueprint for maximizing local assets and key industry clusters to generate economic growth.

To award the first round of $785 million in development funding, a Strategic Plan Review Committee, including experts from the public and private sectors, was established to analyze and score each region’s Strategic Plan based on enumerated criteria including:

• Regional economic development vision and how well it drove an economically sustainable future for the region;
• Participation by the Council members, public, and stakeholders;
• Strategies and how well they addressed critical issues and opportunities in the Strategic Plan;
• Implementation plan;
• Leveraging of regional resources, and how well other public, private and non-profit funds and investments would be used.

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