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2020 CEO GUIDE TO SITE SELECTION

THE NEXT ECOMOMY

On the trail of job growth and opportunity in the coming decade. BY JOEL KOTKIN AND MARK SCHILL


WHEN YOUR BUSINESS CAN BE ANYWHERE, THERE’S NO LIMIT TO HOW FAR YOU CAN TAKE IT. Why are so many logistics and distribution companies finding success in Florida? Because we have one of the most extensive multi-modal transportation systems in the world, including 15 deepwater ports, 20 commercial airports, 3,000 miles of freight tracks and 122,000+ miles of highway. So you have the ability to move your product anywhere in the world…fast. But with more than 20 million residents as your local market, you may not need to. Discover what a future in Florida means for your business at floridathefutureishere.com/access, or call 877-YES-FLORIDA.

Tampa, Florida

2020 CEO GUIDE TO SITE SELECTION 61


2020 CEO GUIDE TO SITE SELEC TION

TABLE OF CONTENTS

EDITOR

Dan Bigman EDITORS-AT-LARGE

2 A Better Way

Jennifer Pellet Jeffrey Sonnenfeld DIGITAL EDITOR

8 The Next Economy Chief Executive asked two of America's most influential regional analysts to follow the trail of U.S. job growth and opportunity over the past decade— and hunt for clues about the decade ahead. Here's what they found. By Joel Kotkin and Mark Schill

21-72 State Profiles An exclusive look at workforce quality, regulatory environment, tax policy and incentive programs metrics for each of the states, plus Washington, D.C., as well as economic development resources and business news. By Craig Guillot

C.J. Prince PRODUCTION DIRECTOR

Rose Sullivan CHIEF COPYEDITOR

Rebecca M. Cooper ART DIRECTORS

Carole Erger-Fass Gayle Erickson Alli Lankford RESEARCH EDITOR

Melanie Nolen CONTRIBUTING EDITORS

Dale Buss Craig Guillot EDITOR EMERITUS

J.P. Donlon PUBLISHER

Christopher J. Chalk 847-730-3662 | cchalk@chiefexecutive.net VICE PRESIDENT

Phillip Wren 203-930-2708 | pwren@chiefexecutive.net WHRE THE JOBS WENT PAGE 8

DIRECTOR, BUSINESS DEVELOPMENT

Lisa Cooper 203-889-4983 | lcooper@chiefexecutive.net DIRECTOR, BUSINESS DEVELOPMENT

Liz Irving 203-889-4976 | lirving@chiefexecutive.net

SOURCES TAXES Corporate Income Tax Rate and Tax Climate Ranking Center for State Tax Policy at the Tax Foundation Center taxfoundation.org/center/state-tax-policy

DIRECTOR, BUSINESS DEVELOPMENT

Gabriella Kallay 203-930-2918 | gkallay@chiefexecutive.net DIRECTOR, BUSINESS DEVELOPMENT

Marc Richards 203-930-2705 | mrichards@chiefexecutive.net MANAGER, STRATEGIC PARTNERSHIPS

EDUCATION High School Graduation Rate Public High School Graduation Rates, May 2019, National Center for Education Statistics nces.ed.gov/programs/coe/indicator_coi.asp Percentage with Bachelor’s Degree or Higher U.S. Census Bureau, Quick Facts (by state), July 2018 census.gov/quickfacts/fact/table/US/PST045218 UNEMPLOYMENT RATE State Employment and Unemployment Summary, November 2019 United States Department of Labor Bureau of Labor Statistics bls.gov/news.release/laus.nr0.htm RIGHT TO WORK STATE National Right to Work Legal Defense Foundation nrtw.org

Rachel O’Rourke 615-592-1198 | rorourke@chiefexecutive.net CLIENT SUCCESS ASSOCIATE

Jake Holmon 203-889-4974 | jholmon@chiefexecutive.net

CHIEF EXECUTIVE GROUP EXECUTIVE CHAIRMAN

Wayne Cooper CHIEF EXECUTIVE OFFICER

Marshall Cooper DIRECTOR OF EVENTS / PUBLISHER, CORPORATE BOARD MEMBER

Jamie Tassa CHIEF CONTENT OFFICER

Dan Bigman

QUALITY OF LIFE U.S. News & World Report Best States Rankings usnews.com/news/best-states/rankings POPULATION GROWTH U.S. Census Bureau, Quick Facts (by state) census.gov/quickfacts/fact/table/US/PST045218

MANAGING DIRECTOR

Scott Budd VICE PRESIDENT, HUMAN RESOURCES

Melanie Haniph


THE 2020 CEO GUIDE TO SITE SELEC TION

A BETTER WAY BY THE TIME YOU READ THIS, the president of the United States may be on trial in the Senate for selling White House influence to a foreign power for personal political gain. Meanwhile, on the other side of the political ledger, his leading democratic rivals threaten nothing short of a complete overthrow of the American economic system, with seemingly little care for the inevitable catastrophic consequences. Interesting times, right? Thankfully, none of these people are running any of the states, those comparatively sane oases of reason where the actual work of building, feeding and growing the nation take place, and where—again, thankfully—CEOs and workers alike are able to make their own decisions about where to stake a claim and pursue the American dream. That’s why we’ve once again put together this handbook for CEOs scouting for their next great place of opportunity. Inside, each state puts their best foot forward, along with the essentials: Tax climates, unemployment, deals done, some background notes and some contact information if you’re inclined to learn more. We hope you find it useful. Perhaps it’s the climate in Washington, but this year, while putting the CEO Guide to Site Selection together, a feeling of fragility in the relationship between business and local governments has been hard to shake. At the extremes, there’s the Amazon fiasco in New York last year, where a massive potential employer was essentially chased out of the city by local political hacks. Or the Foxconn mess in Wisconsin, where a state’s back-bending efforts to secure a high-tech opportunity for its citizens turned into a big empty field where, as they say, the future once stood. It got us thinking: If the country is to prosper, the business of site selection needs to find a new way of doing business. One re-focused on building the foundations for the next great century of innovation and growth, like digital infrastructure, more effective education and workforce training, true environmental sustainability, common-sense regulation and smart taxation that will unleash the power of free enterprise, engage a whole new generation of talent in meaningful endeavor and create economic opportunity for more Americans than ever before. All this is possible, but not by business or government alone. Surviving in the coming century will require a true spirit of partnership between both. That’s why, in the coming months, Chief Executive is hoping to play a leadership role in fostering a new kind of conversation about site selection, one that’s smarter, more sustainable—and more likely to succeed for everyone. Stay tuned. In the meantime, it’s worth remembering that America is still—despite our political differences and despite the divisions in Washington—filled with more of the best places to do business than any other nation in the world. Let’s keep it that way. —Dan Bigman, Editor


GROUNDBREAKING

THINK • MAKE • HAPPEN IN WISCONSIN

That’s one way to describe how Wisconsin approaches businesses that break ground here. With a network of resources and partners across the state, we’re innovative in our support for new, ambitious businesses. Our fully-funded pension system, low taxes and talented workforce are catching the attention of companies near and far. Is your business one of them? To discover how well your business fits In Wisconsin®, call 855-INWIBIZ (toll free) or visit InWisconsin.com.


THO UG HT L E A D ER S HIP P ROV I DE D BY DE LO I T T E C ONS U LT I NG LL P

Impacts Of The Shifting Global Business Services Landscape On Location Strategy Decisions With Global Business Services organizations playing an increasing and more complex role in running the business, location decisions take on an even more critical role. MATT HIGHFIELD, Managing Director and Location Strategy practice leader, Deloitte Consulting LLP (mahighfield@deloitte.com)

THERE ARE SEVERAL SHIFTS IMPACTING THE BACK-OFFICE service delivery landscape. The first is an evolution from the traditional single-function shared service and outsourcing model to global business services (GBS). The new GBS organizations are multifunctional, centrally governed service center networks focused on end-to-end process delivery across the globe. According to Deloitte’s 2019 Global Shared Services Survey, 59 percent of respondents’ shared services centers (SSCs) have global coverage, and 46 percent of SSCs are supporting three or more functions (63 percent supporting two or more). This broader GBS functional scope has heightened the need for talent with wide-ranging functional and linguistic capabilities, thereby narrowing the list of viable hub locations. We’ve also seen an evolution beyond transactional shared services toward value-add/enabling operations, which has had geographic implications as well. Cost reduction was historically the primary driver for shared services. Unsurprisingly, traditional shared services/BPOs were often clustered together in low cost locations capable of delivering transactional activities. As companies sited operations in the same cities, competition often eroded labor arbitrage, prompting an interest in frontier cities offering a value play. Investment slowly shifted away from the more mature, relatively expensive cities to new destinations as companies chased arbitrage on transactional services. However, as GBS organizations matured, customers internalized the value of GBS and began transitioning to more complex, knowledge-based processes. At the same time, long-standing operations in mature markets were compelled to move beyond transactional service delivery to justify the relatively higher costs of service. The landscape has continued to evolve. Robotic process automation (RPA) is playing an increasingly pivotal role in GBS organizations, requiring employees who are knowledgeable in process design and automation software, and reducing the need for high volumes of transactional support. In addition, with the shift to a GBS model, the market is seeing more knowledge-based processing and broader functional breadth, including the expansion of the GBS remit into automation and advanced data analytics upon

TARA NICHOLSON, Senior Manager, Deloitte Consulting LLP (tnicholson@deloitte.com)

which important decisions that organizations face can be made. As more companies seek talent with these deeper technical and functional skills, the more mature (and expensive) shared services locations are re-emerging as candidates for the next generation of investment. These shifts in the industry are giving rise to a series of executive-level considerations: • What trends will have the greatest impact on my GBS delivery footprint? • What is the right operating model for my business? • How many captive centers do I need, and where? • How should service center location decisions be made? All of these shifts drive complexity in operating model and, critically, location decisions. The relative success of GBS operations is highly correlated with the amount of market due diligence and market entry planning conducted in advance of a location decision. Companies should carefully evaluate the types of services they plan to deliver in the immediate, medium, and long term, which can lead to the selection of a more sustainable and costeffective location. In addition, familiarity with the location helps in crafting a tailored market entry strategy to support the company brand, establish a local culture, and ultimately attract and retain employees in increasingly challenging talent markets. GLOBAL DELIVERY CENTERS Global hubs are generally charged with providing both 24/7 low-cost transactional and, increasingly, value-added services in English. This mandate can be supported by a relatively narrow list of candidate cities across India and the Philippines. Manila is widely regarded as the location for global customer service/voice activities, though political unrest, strained infrastructure, and traffic congestion are considerations. India, on the other hand, is at present, known for greater functional depth and higher-value processing. Despite a sizeable, well-educated workforce in many cities across India, not all locations are created equal at the functional level. While one must be cautious with generalization, Southern cities, such as Hyderabad and Bangalore,


are more aligned with technology activities, while the Northern and Eastern cities such as Kolkata and the National Capital Region (NCR) are traditionally considered stronger in finance and accounting competencies. Several Tier II cities are emerging as pressure valves for competition, though these are less proven and less well-known, and rarely selected as first-move global hubs. Tier II Indian cities being considered as alternatives to the Tier I “usual suspects” include Mangalore, Indore, and Chandigarh. Often stood up as a supplemental hub, rather than the primary service delivery node, they offer further cost arbitrage and ability to spread risk, but lack the depth of the Tier I locations. EMEA REGIONAL HUBS The location question becomes more convoluted when solving for regional centers, especially in EMEA. Europe, with its broad set of language requirements and multiple high-cost locations from which arbitrage can be wrung, yields, perhaps, the most complex set of location selection questions. Multiple established Tier II cities have, in recent years, proven that shared service and GBS centers can be successfully scaled and operated beyond capital cities, leaving new entrants with a seemingly plethora of cities to choose from. For EMEA-focused services, Central & Eastern Europe continues to see the greatest volume of shared service and GBS investment. Along with cost, language capability is a key constraint and, therefore, driver of location decisions. German, English, French, Italian and Spanish are common requirements across most Pan-European centers, driving increased demand and subjecting markets across the region to elevated pressure. With the escalating talent war, companies are now driven to identify locations where they can coexist with incumbents versus own a talent market (For more information, see “The Case for Collaboration,” Chief Executive Magazine, December 2018). Some organizations have sought greater arbitrage and talent access in Tier II and III cities as their primary locations reached saturation – be it real or perceived. This strategy often requires a pivot from a “buy” model, where trained, experienced talent is sourced from the market, to one where companies “build” talent using experiences and expertise gathered in other centers. Locations adopted early by shared services and GBS organizations (Krakow, Prague, Budapest) have typically been considered as higher cost. A slow-down in greenfield investment in those markets resulted in a convergence of costs across the region, as other locations were pioneered, and costs escalated accordingly. Arbitrage does, however, still exist in the region with a 10-25% differential observable between highest cost markets and cheaper regional options such as Sofia and Bucharest. Poland and Romania are somewhat unique in possessing several Tier II cities with a demonstrable track record of shared services and GBS operations. Poland has the broadest set of established markets an investor could reasonably seek to enter or sustainably grow in – Warsaw, Krakow, Wroclaw, Katowice, Lodz, Tricity, Poznan, Szczecin, Rzeszow, among others. Outside, the capital of Bucharest, Cluj-Timisoara, Iasi, and Brasov are viewed by many as viable Tier II Romanian cities depending on the size and scope of the shared services or GBS remit and specific language requirements.

The Baltics (Lithuania, Latvia, and Estonia) are often overlooked when conducting shared services and GBS site selection assessments due to their lower profile, smaller talent pools, and perceived physical and cultural proximity to the former Soviet Union. These countries are often eliminated from consideration unless their deeper low-cost Nordic language capabilities necessitate consideration. However, at the right scale and with the right target language mix, they can offer attractive business environments and quality talent. Vilnius in Lithuania has been particularly successful in the recruitment and incubation of shared services and GBS centers, particularly those in the financial services sector. Lithuania’s capital city has proven to be one of the few locations across the region, along with TriCity, that can cost effectively scale and sustain Scandinavian languages. The Iberian Peninsula, including Lisbon, Porto, and Barcelona, in particular, are of interest to companies looking for native or near native speakers from across the continent. Companies requiring English, Spanish, French, German, and Italian look to these two cities, though it can be more difficult to source Polish, Dutch, and Nordic languages, and the cost structures are higher than Central/Eastern Europe. ASIA PACIFIC Asia Pacific presents unique challenges and has a relatively small set of locations typically considered for shared services and GBS regional operations. While English capabilities are prevalent in select cities, the location selection process becomes materially more challenging when seeking to source a full suite of Asian languages with functional and technical expertise. As previously mentioned, the two regional behemoths, India and the Philippines, offer compelling cost profiles and multiple locations within each that have proven scalable into the thousands of resources. However, neither country is relatively well-suited for large-scale provision of languages beyond English. Though it is possible to find a limited number of resources with regional language capabilities in either country, the cost premium


required to attract and retain can make a dent in any business case, while introducing talent acquisition and service delivery risk. The location that continues to see strong inward shared service and GBS investment is Malaysia, specifically Kuala Lumpur. While it comes at a cost premium of 30-50% over India and the Philippines, the country’s pan-Asian workforce offers regional language capabilities, making Malaysia a viable option if regional languages are required. Japanese and Korean, the two languages typically with the greatest demand versus supply deficit across the region, can be found in the Kuala Lumpur market, although competition is high and intensifying, while overall presence is limited. China for China remains a notable trend, although some companies have successfully used Tier I cities such as Shanghai, and the northern port city of Dalian as locations from which to serve the entire APAC region, including Japan and Korea. Demand for Mandarin, in addition to regulatory challenges associated with serving China from outside the country, often dictates the need for a Mainland China operation. With sizeable population centers scattered throughout the country, and many cities offering significant labor and real estate arbitrage opportunities over Tier I cities such as Shanghai, Beijing, and Guangzhou, the location strategy question is no longer clear cut. Companies are increasingly chasing cost reduction opportunities by considering the interior of the country. Cities such as Chongqing (population: 15.5M1) and Chengdu (population: 9M1) offer sizeable workforces and real estate at a significant cost savings over their better-known brethren to the East of the country. Despite a notably higher cost structure, Singapore remains a leader for higher value added, more complex Center of Excellence type activities. However, as the rest of the region continues to mature and develop more advanced capabilities, and despite its well documented expat friendliness, scrutiny is being placed on the cost and talent constraints of the Singapore market for operations that do not demand adjacency to the many regional HQs in the market. THE AMERICAS While the US has been a recipient of sizeable shared services and GBS investment, recent trends suggest the tide is slowing as companies look beyond the US for significant cost savings. Companies are finding benefit in the consolidation of not only Central and South American processes into regional GBS hubs, but through the folding in of North American services, and the associated headcount. Cost arbitrage can be as high as 50% for activities driven into Latin America from North America. Sizeable multi-lingual operations have established in Argentina, Costa Rica, Mexico, and Panama, primarily in the capital cities. In addition, several Tier II Mexican cities such as Queretaro and Guadalajara have proven themselves capable of supporting multi-lingual operations at scale. However, although most locations have a demonstrable precedent for tri-lingual (English/Spanish/ Portuguese) operations, scalable operations continue to be a challenge outside of Argentina and Uruguay. When delivered outside of Brazil, Portuguese service provision is often made possible via intensive language training for high performing employees, rather than the sourcing of native speakers. Mature destinations, such as San Jose, Mexico City and Buenos Aires demonstrate depth of functional capabilities and continue to be the recipient of higher value-add services such as financial planning and analysis (FP&A) and data analytics. Costa Rica’s

popularity as a destination has resulted in competition for labor and upward pressure on salaries. The labor market has benefitted from some relief provided by RPA, which reduces the need for transactional language skills and allows companies to better align English-speaking functional experts, having little taste for repetitive processing activities, with higher and better uses for their skills. Mexico is home to many shared service centers, historically serving LATAM, but transitioning to a wider geographic scope. Argentina, with deep finance technical capabilities and strong language skills was an early beneficiary of shared services and GBS investment. However, political and financial upheaval and instability, most notably characterized by hyperinflation, has seen companies look elsewhere in the region for talent and regional language capabilities. Despite a large labor force and strong talent pool, Brazil’s high labor costs, restrictive labor laws, complex withholding tax environment, and relative scarcity of English and Spanish language capabilities, make it a challenging location from which to serve the Americas. These constraints lead many organizations to continue serving Brazil from Brazil. However, the dynamic is shifting somewhat as Portuguese becomes more widely taught and encouraged in other shared services and GBS locations across the region, and companies take on the training of employees as a performance related benefit/bonus. With support and encouragement from the national government, Colombia, most notably Bogota, Medellin, and Cali, is working to transition its depth in multi-lingual call centers and customer service to shared service capabilities, and has proven a strong competitor to Costa Rica and other regional powerhouses in recent years. Strong English capabilities exist in the market, though companies often still face a trade-off in hiring for language or functional knowledge, as it can be difficult to source for both. Panama City has attracted several multinational shared service operations over the years and is notably the most accessible and connected LATAM location from the US. However, the talent market has increasingly relied on immigration from neighboring Venezuela and Colombia to support operations. For many companies, the squeeze is felt primarily at the leadership level, which is reflected in the largely foreign-born managerial staff. Chile has strong shared service capabilities but has tended to be solicited for Spanish speaking regional operations, due to relatively lower English language skills. The long distance from the US also makes Chile (along with Argentina, Uruguay, and Brazil) relatively less attractive. Given the political upheaval, Venezuela continues to see a brain drain with talent departing for SSC operations in Colombia, Panama, and Costa Rica. SO, WHAT SHOULD DRIVE THE LOCATION DECISION? The GBS location decision is complex, emotional, and often highly politicized. The GBS concept itself often necessitates revision of reporting relationships, rewriting of organizational charts, shifting of influence, and loss of real or perceived power at country, business, and individual levels. These factors suggest that a robust, methodical, and data-driven approach is imperative in the selection of these increasingly mission critical centers. According to the more than 300 respondents to Deloitte’s 2019 Global Shared Services survey (who represented more than 700 shared services and GBS centers), the criteria typically cited as driving the location decision are:


SELECTION CRITERIA Labor cost arbitrage Cost of labor continues to be, by far, the largest cost component of shared services and GBS operations and an area of great opportunity for organizations seeking to drive savings. However, labor is a double-edged sword, as it also represents the greatest one-time cost associated with the migration of operations. The payment of labor related to one-time costs such as severance and stay bonuses is significant and often drives longer payback periods. Expertise and labor quality As shared services and GBS markets continue to mature, the volume of demand for quality talent is increasing, as are expectations. The expanded remit and increasing complexity of shared services and GBS operations requires broader functional knowledge and additional language capabilities. As GBS organizations push toward new service delivery frontiers, locations must clearly demonstrate an ability to move with them. The greater organizational complexity and breadth of services delivered in a typical GBS operation have also made it increasingly important to locate in a city with a talent base experienced in the stand-up and operation of shared services and GBS centers. Regulatory and legal understanding Location decisions are often driven by regulatory and legal constraints. For example, Europe’s restrictive data residency and privacy laws often make it impossible to process certain information outside of the European Union, making membership of the EU a key criteria. Proximity to headquarters In particular, for those companies new to shared services and GBS or those embarking on an expanded functional remit, proximity to company headquarters is a notable preference. This manifests itself in a number of ways, with some organizations preferring cultural and language proximity (as evidenced by decisions to select US locations), or time zone and access proximity (often cited by companies selecting Central and South American locations for their shared services and GBS operations). Additional considerations requiring structured and thoughtful assessment include, but are not limited to: Infrastructure

Access

Risk

Strategic impact

• Real estate • Roads • Rail • Airports

• Natural disasters • Political • Security • Cyber

• Flight schedules & cost • City transport

Expat suitability

• Personal security • International schools • Expatriate community • Recreation

• Proximity to the business • Growth nodes

While cost efficiency remains the primary driver behind location selection, increasingly, a thoughtful process that positions the company not only for cost savings, but to access talent that meets the needs of the future organization is critical. The role of shared services and GBS within the business is changing. Increasingly, GBS leaders are reporting into CXOs – a testament to the elevated role they are playing in the organization. The shared services and GBS capability set and remit is expanding into automation and analytical roles that are driving insights and decision making at the broader enterprise level, rather than a limited focus at the functional level. Considering this, the shared services and GBS location decision

is no longer a race to the cost basement, rather it takes on a greater importance that must incorporate an understanding of its shifting roles and associated refinement of skills. No longer is cost arbitrage for transactional activities alone enough to drive a location decision. The future of GBS lies in the ability to source people with the experience and skills to develop and operate the automation to which companies increasingly turn to unlock value, and with the analytical capabilities that drive critical insights for the business. For companies with their eyes on the horizon rather than their shoelaces, only once the presence of these ever-advancing capabilities has been established can cost be considered the primary decision criteria.

As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting. This article contains general information only and Deloitte is not, by means of this article, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this article.


The Next Economy

WHERE THE JOBS WENT An analysis of job growth by state over the past decade shows the rise of the West and Southeast U.S. as economic engines, though traditional powers, like New York and California remained solid as well.

-2.0%

+30%

DECADE AGO, IN THE WAKE OF THE GREAT Recession, Lee County, Florida was dubbed “the foreclosure capital of the country” by the national media, the poster child for all that had gone wrong with the American economy. “Homes are selling at 80 percent off their peak prices,” reported The New York Times in February, 2009. “Only two years after, there were more jobs than people to work them, fast-food restaurants are laying people off or closing. Crime is up, school enrollment is down, and one in four residents received food stamps in December, nearly a fourfold increase since 2006. “Welcome,” boomed The Times, “to the American dream in reverse.” What a difference a decade makes. Today, Florida— and Lee County—is thriving again, with thousands of

8 2020 CEO GUIDE TO SITE SELECTION

businesses and hundreds of thousands of people flocking to the Sunshine State annually. It seems that—surprise!—warm weather and zero income tax are catnip for employers and workers alike. But Florida is hardly alone. Job growth in the U.S. over the past decade has been about 13 percent but some states and some regions have been outperforming the nation by a large margin. So which states are hot, and which are not? And what does the future hold—especially in key sectors like technology and professional services? To find out, we analyzed recent job growth data for all 50 states over ten-, five-, and one-year periods. For each time period we looked at overall growth, as well as the manufacturing, high-tech and professional and technical business services sectors. What emerges is a picture, particularly for job creation,

Source for all charts and data: EMSI, 2019, economicmodeling.com


Chief Executive asked two of America's most influential regional analysts to follow the trail of U.S. job growth and opportunity over the past decade—and hunt for clues about the decade ahead. Here's what they found. BY JOEL KOTKIN AND MARK SCHILL

WHERE THE JOBS WILL GO Based on their study of recent economic patterns, Kotkin and Schill project that the Intermountain West and Texas will lead job growth in the coming decade.

0%

that is complex but consistent over the past 10 years—and likely will be for the decade ahead. All people may have been created equal—but states are not. Simply put, the big winners are all in the Sunbelt and the Intermountain West. And we project that trend will continue. At the top of the heap—with growth rates over 20 percent—are, in order, Utah, Nevada, Florida, Texas and Colorado. Their growth has been more than the rate of growth of states like New York and others on the Atlantic seaboard, as well as most Midwestern states. Not surprisingly, these states all boast the highest population growth rates and are home to many of the nation’s fastest growing metros. Austin leads the pack, followed by Orlando. Denver, Dallas and Las Vegas can all be counted among the fastest growing metropolitan regions. At the end of the list, sadly, there’s consistency as well.

+25%

The bottom rungs are dominated by poor, resource-dependent states such as Louisiana, West Virginia and Wyoming—but also now include traditionally buoyant economies such as Connecticut, whose 3.3 percent growth over a decade is roughly one quarter of the national average. There’s nothing in the data we looked at that shows these trends will change, either. MOMENTUM TILTS TO THE HEARTLAND AND THE SUNBELT In our modern high-velocity economy, 10 years can seem like an epoch. Yet our top states generally have remained remarkably consistent in performance. The slowing growth in hyper-regulated California and the generally mediocre performance along the Northeast corridor has boosted the status of states like Texas, Florida, Arizona and

JOEL KOTKIN is the presidential fellow in urban futures at Chapman University and executive director of the Center for Opportunity Urbanism. His most recent book is The Human City: Urbanism for the Rest of Us. MARK SCHILL is the Vice President of Research and a community and economic development planner at Praxis Strategy Group.

2020 CEO GUIDE TO SITE SELECTION 9


Tech Spreads Out Kotkin200% and Schill's analysis of the ten-year growth and prevalence (Location Quotient, or "LQ") of technology jobs by state. MA

VA

180%

WA

STALWARTS Low growth, high LQ

160%

STARS High growth, high LQ

MD CO DC

140%

CA

PREVALENCE OF JOBS IN STATE

NM

UT

120% MI

NJ

NH

100% TX AL

80%

LAGGARDS Low growth, low LQ

60%

NC NY

KS

MN

AZ

OR

FL

Emerging HIgh growth, low LQ

WI

VT MT

ND

NV ME TN

OK WY

IL

GA

MO

OH NE

LA

KY

40%

PA

ID

DE

RI

CT

SC

IA IN

WV AR

MS

20% -10%

0%

10%

20%

30%

40%

50%

60%

70%

GROWTH IN TECHNOLOGY JOBS BY STATE, LAST 10 YEARS

Tech Across America

The number of technology jobs exploded the past decade, with growth in almost every state in the nation.

2009-2019

-7.0%

+63%

Now Tech Heads West

Kotkin and Schill expect job growth to head West over the next few years as many high-tax states (except California) lose vitality.

2019-2024

0%

10 2020 CEO GUIDE TO SITE SELECTION

20%

Idaho, which are benefiting from mass migration of both companies and people. Unlike its East Coast counterparts, the Golden State, however, has been a solid performer, though growth has slowed in the past year. It ranked a solid 9th over the past decade, with almost 18 percent growth. California’s strength can be attributed in part to its economic diversity, with strong concentrations in agriculture, information, professional services and entertainment. It has started to fade, likely due to high housing prices, rising out-migration (Los Angeles lost population last year) and sky high taxes. Last year, the state ranked 13th and, given the fires and new regulatory burdens, one can expect that to drop further. The state’s manufacturing economy is withering, and after averaging about 100,000 new healthcare jobs annually in the nine years before 2018, just 20,000 were created in the last year. We may be on the cusp of continued weakening for high-tax, highly regulated states—particularly those that lack California’s ideal weather (most of the time) and spectacular topography. New York ranked a respectable 19th over 10 years, but last year it dropped to 22nd. Massachusetts, 16th over the decade, fell to 27th last year. Other traditional leaders, like Illinois, which dropped from 17th worst over 10 years to 4th worst last year and especially Connecticut also are losing momentum, according to last year’s figures. All have dropped off their 10-year pace. WHERE TECH IS HEADED Of course, not all jobs are the same. Some tend to pay more, and some occupations are expanding more rapidly as the economy changes. High-tech employment has grown in almost all our leading states, but the biggest winners over ten years have been varied: led by North Carolina, Utah, South Dakota, California and New York. But here again last year’s numbers project something of a different cast. The biggest change was the emergence as the fastest-growing state in the past year: Idaho. Over 10 years, Idaho registers in the bottom third, but last year it enjoyed the fastest


2020 CEO GUIDE TO SITE SELECTION 63


Where the Professionals Go Ten-year growth and prevalence (Location Quotient, or "LQ") of professional and technical services jobs by state. DC

200%

STARS High growth, high LQ

PREVALENCE OF JOBS IN STATE

STALWARTS Low growth, high LQ VA

150% MA

MD

CO NY

NJ

MI IL

NM

100%

CA FL

UT

WA NH

CT

LAGGARDS Low growth, low LQ

AL VT OH NE LA WV

50% -10%

RI KS

OK

ID

MO

AZ MN

MT

ME

AR

OR TN

NV WI

KY

WY MS

GA

PA

DE

TX

Emerging HIgh growth, low LQ

NC SC

IA

IN

ND SD

0%

10%

20%

30%

40%

50%

60%

70%

GROWTH IN PROFESSIONAL AND TECHNICAL SERVICES JOBS BY STATE, LAST 10 YEARS

Great Jobs, Many Places

Like tech, the past decade saw a huge growth of professional and tech service jobs in America, and states coast to coast benefitted.

2009-2019

-3.5%

+62%

Now Follow the Taxes

But over the next five years, Kotkin and Schill expect lower-cost-of-living locales to capture a disproportionate share of the growth in these key jobs.

2019-2024

-5.0% 12 2020 CEO GUIDE TO SITE SELECTION

+28%

tech growth in the nation. Boise and its surrounding region are booming, with newcomers pouring in from the West, not only California. It is now the fastest-growing metro in the nation. In contrast, New York fell from 6th over 10 years to 15th last year. Even New York City’s much ballyhooed tech sector is essentially middle of the pack in growth among large metros. Millennial out-migration—a key element for this field—is now the highest in the country, notes Brookings, followed by Chicago and Los Angeles. This could also impact California and Silicon Valley. Population growth in the core Bay Area has slowed considerably, and surveys reveal many residents, even most, are contemplating an exodus, particularly as they enter their 30s and seek to buy a house. Statewide, notes a recent UC Berkeley poll, roughly half of all residents are considering a move out, particularly between the ages of 30 and 50. Yet as long as the Bay Area—and its Puget Sound doppelganger Seattle—remain the home base for the world’s top tech firms, it’s growth will likely continue as companies staff up with young workers who may not stay for long, but could power the economies. High costs in the Bay Area are likely helping to propel Utah to be the second-fastest growing high-tech state over both the tenand one-year time periods. PROFESSIONAL AND TECHNICAL SERVICES: NEW HOMES Equally important for growth in this evolving economy are professional and technical services. This is—by far—a larger sector than technology and it has traditionally clustered in highly urbanized states such as New York, Illinois, Massachusetts and California, as well as Maryland, Virginia and the District of Columbia. With 62 percent more than national average, Virginia is home to the highest concentration of professional and technical services jobs, while Maryland ranks third. If it were a state, the District of Columbia would take the top spot. Yet increasingly, these industries are growing fastest in non-tra-


T HO UG HT LE A DER SHI P PROVIDED W ITH MIS S OU RI PARTNERSH IP

MISSOURI

ON THE MOVE In addition to a corporate tax rate cut, the Show Me State has launched multiple initiatives aimed at attracting business. MISSOURI IS IN THE CENTER OF AMERICA and in the center of many global industries, such as ag tech, financial services and advanced manufacturing. The state is now working to become central in the minds of chief executives when they’re investigating locations for new or expanded facilities. In 2019, Missouri engaged in a fundamental reset of its approach to economic development. One of the new programs, brought in early during the tenure of Governor Mike Parson, is aimed at helping companies ramp up faster during an expansion by accelerating their workforce pipeline. A second is incentivizing automotive investment by the major automotive manufacturers. A third is creating a “deal closing” fund that gives state officials some extra resources for gaining corporate commitments in the final phase of negotiations in highly competitive projects.. All three are significant additions to the fourth and biggest change: Missouri has chopped its corporate tax rate to just 4 percent from the previous 6.25 percent, beginning in January 2020. The reduction will make Missouri’s corporate rate the second-lowest in the nation among states that collect such a tax, according to the Tax Foundation. Plus, with a constitutionally required balanced budget, the state is fiscally stable while even some of its Midwestern neighbors aren’t. And Missouri’s innate advantages include being at the nexus of national transportation networks, including every Class 1 railroad, Interstate highways in every direction and the Mississippi River. INVESTING IN ALLURE “We’re good at what we do in Missouri but, traditionally, we haven’t liked to brag,” said Subash Alias, CEO of Missouri Partnership. “But now, we’re doing much more to attract the interest of growing companies. And we’re not afraid to brag about what we’re doing.” Alias conceded that “many business decision-makers around the world haven’t been aware of Missouri” historically. “But the more they learn about how well some of the major players in their industry already do here, the more attractive Missouri becomes.” Missouri is already a welcoming home to leaders in a variety of industries, with headquarters for iconic companies, including Anheuser-Busch, Bass Pro Shops, Bunge North America, Centene, Cerner, EaglePicher, Edward Jones, Emerson, Enterprise, H&R Block, O’Reilly Auto Parts, Stifel Financial, Reinsurance Group of America (RGA), Wells Fargo Advisors and World Wide Technology. Other major corporations have extensive operations in Missouri, including Bayer Crop Science, Boeing, Boehringer Ingelheim, General Motors, Ford, Nucor and Square. TAXING MATTERS Many CEOs view a state’s base corporate tax rate as the most significant indicator of how serious its leaders are about wanting to attract business, because it is so fiscally foundational. Missouri’s new rate cut only adds to its status in this regard, because the Tax Foundation already rated Missouri as offering a better overall tax climate for business than all eight surrounding states. “The cut makes our already-competitive state even more competitive and attractive,” Alias said. Missouri One Start is the name of the new program, signed into law by Gov. Michael Parson in July, that is meant to leapfrog other nearby states to become a top contender in workforce development for companies. The $42 million initiative will leverage a coordinated statewide

All made in Missouri: Boeing's F/A-18 fighter jets, ag-tech innovations, and the Ford F-150 pickup truck.

network of colleges and training centers to design and deliver tailored and customized pre-employment screening, employment marketing and job-specific training to make businesses more competitive in Missouri. Combined with other programs, such as Fast Track and the A+ program that offer free community college across the state, along with work-training programs for released offenders, Missouri One Start should get the attention of CEOs whose companies are starved for highly skilled workers at a time of basic economic prosperity. For automotive manufacturers in particular, Missouri has been recognized as a “best state” by Supply Chain Digest, with major plants turning out some of the best-selling vehicles in the U.S. market, including Ford F-150 pickup trucks and General Motors’ mid-size pickups. Now the state will grant up to $25 million in tax credits to automakers that invest $500 million in plant upgrades, while agreeing to retain current workers, and then an additional $25 million in tax credits if they invest another $250 million. And Missouri’s new approach to attracting business investment includes a deal-closing fund that ensures a company’s investment in the state can be profitable from day one. The state already provided benefits such as 100 percent retention of state withholding tax, but the new fund allows officials to accelerate the financial benefits of as many as seven years of such benefits into the first year, allowing companies to recoup their initial investment more quickly. “No CEO is going to settle in Missouri just because of the closing fund,” Alias said. “But when we’re down to the end of a head-tohead competition with other states, where maybe two or three final locations are involved, we believe this fund can help put us across the finish line first.”


Where We'll Make It in America Ten-year growth and prevalence (Location Quotient, or "LQ") of manufacturing jobs by state. IN

200% WI

STALWARTS Low growth, high LQ

STARS High growth, high LQ MI

IA

150%

AL

AR

KY

OH

PREVALENCE OF JOBS IN STATE

MS NC NH CT

LA DE

NJ

SD UT ID

OK CA

MA

OR

GA

MO

ME

RI

WV

MN

NE

IL

PA

VT

100%

SC

TN

KS

WA

TX ND AZ

VA

CO

50%

NY FL

MD NM

LAGGARDS Low growth, low LQ

MT

NV

Emerging HIgh growth, low LQ1

WY

DC

0% -10%

0%

10%

20%

30%

40%

GROWTH IN MANUFACTURING JOBS BY STATE, LAST 10 YEARS

On the Mend

From the Midwest to the South to the Southeast, a decade-long revival in U.S. manufacturing led to a rebound in job growth.

2009-2019

-7.5%

+45%

And Still Going

Kotkin and Schill project widespread manufacturing job growth to continue. Worth watching: Nevada, home to Tesla's Gigafactory.

2019-2024

-7.0%

14 2020 CEO GUIDE TO SITE SELECTION

+40%

ditional locales, often with much lower tax rates and house prices. Over the past 10 years, the top six fastest-growing centers for this key sector have been led by Utah, North and South Carolina, Texas, Oregon and Florida. Along with Colorado and Tennessee, each of these states has seen their share of the sector expand employment more than 30 percent, compared to a national average of 23 percent. In contrast, the traditional centers of this industry—except for California—have done far less well. In fact, over the decade, growth in New York, Illinois and the District of Columbia has been roughly half that of the leaders and below unlikely states like Missouri, Kansas, Idaho, Iowa, Indiana and the Dakotas.
The most recent numbers suggest this trend is just beginning. Last year Utah, Idaho, Texas, Nevada, Colorado and—surprisingly—South Dakota led the pack. New York, for example, ranked 42nd last year, well below its 10-year ranking of 27th. Illinois, New Jersey and Connecticut are also losing steam, mired in the bottom 10 of states. These critical knowledge-based services sectors that clearly clustered in major metropolitan areas in the 1990s and 2000s may be showing signs of decentralization. If this pattern accelerates, these states may all see many of the prized jobs headed elsewhere—something made easier by the ability of firms to access talent digitally outside the traditional, often very expensive centers. WHERE’S MANUFACTURING GOING? Some, like futurist John Naisbitt, have called manufacturing “a declining sport,” and it certainly does not account for the share of GDP or employment it once did. But over the past decade, the industrial sector has enjoyed steady growth, which has only lately slowed. Certainly, some of the states that have won the employment race overall have also done well here. The consistent big winner has been Nevada, which topped the 10-year, five-year and oneyear measurements for manufacturing. Its 10-year growth of over 42 percent is far higher than the national average of 7.5 percent. Nevada industrial growth seems to stem from two factors—


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the movement of industry from California, leading some to label the state “California East,” and, in particular, the development of Tesla’s Gigafactory outside Reno, which accounted for roughly half of the state’s manufacturing job growth in the past decade. Similar migration can be seen in Idaho and Utah, as firms look to settle in areas with a skilled workforce, relatively low taxes, a favorable regulatory climate and cheap—particularly compared to California—electricity. We also now see significant industrial growth in its traditional heartland, notably Michigan and Indiana, which enjoyed growth rates over the decade of 34 and 22 percent. But that’s changing, too. Last year, the biggest industrial growth took place not in traditional manufacturing areas but in sunbelt states like Nevada, South

"Stronger states, like California and Massachusetts might be able to buck the trend, but the economic future seems likely to favor places like Utah, Idaho, Colorado, Tennessee and Texas—now and in the years to come." Carolina, New Mexico and Texas, as well as Intermountain West stalwarts like Utah, Montana and Idaho. Indiana, it should be noted, is on this list as well—still holding its own despite the shift. The really bad news on the industrial side, however, is on the coasts. New York, New Jersey and Connecticut all lost industrial jobs over the past decade, and rank in the bottom 10 of states. This trend is not turning around; in 2018, generally a banner year for the economy and the industrial sector, both Massachusetts and New York continued to lose manufacturing jobs. California saw negligible (3 percent) manufacturing job growth over the decade. LOOKING FORWARD Given the enormous risks in projecting forward, let’s approach this with more than grain of salt, because the large economic shocks of the future with the biggest impact on job totals are inherently unknowable. Estimates for growth over the next decade by EMSI largely duplicate the past; the top five on the list are Utah, Colorado, Nevada, Arizona and Texas. The firm projects New York and California in the top 15. On the local level, it’s especially difficult to project the impact of regulations and higher taxes since these are determined politically. Clearly, high tax rates in Connecticut, New Jersey and New York are leading to an exodus of citizens, notably among the affluent. Out-migration among the affluent cost Connecticut in 2016 the equivalent of 1.6 percent of its annual adjusted gross income. New Jersey and New York are suffering similar drains. This has not happened as decisively in California, where out-migration tends to be strongest among people in their 30s and 40s. That’s critical, since population growth trends need to be factored in any sensible projection. On that score, Tex-

16 2020 CEO GUIDE TO SITE SELECTION

as and Florida are adding the most people, while Idaho, Nevada and Utah lead in percentage terms. In contrast, New York, Connecticut and New Jersey, as well as many Midwest states have population stagnant growth; even California is now growing slower the national average. This migration, particularly from the Northeast, has profound economic ramifications. Yet, even the immediate past is not necessarily prologue, particularly in our era of hyper-divisive politics. A victory by a left-wing Democrat, like Massachusetts Senator Elizabeth Warren, could prove catastrophic for many states. According to the U.S. Chamber of Commerce, the kind of ban on hydraulic fracturing that Warren has proposed could cost some 14 million U.S. jobs—far more than the 8 million lost in the Great Recession. In Texas alone, by some estimates, 1 million jobs would be lost. Growth would also slow in numerous other states, such as Oklahoma, North Dakota, West Virginia, Pennsylvania and Ohio. On the other hand, Warren policies, such as giving free college tuition away to every student, would be a boon for other states, notably her adopted home state, which counts education as a key growth industry. And anything that improves access to higher education—particularly for two-year degrees and certificates—could engage a new workforce and unlock growth opportunities in states that can mobilize their education systems to take full advantage. In contrast, a Trump victory and continued Republican control of the Senate would be a huge boon to the energy-producing states, and likely industrial firms across the board. Meanwhile, migration to low-tax states would continue, such as the shift of industries like finance to states like Florida, where Carl Icahn has moved his operation, and to Texas. Dallas, in particular, is emerging as a new financial center. But a Trump victory packs its own perils for many states. A continuing and escalating trade war would continue to impact areas deeply involved in international commerce like California, New York and Texas, as well those who are home to big exporters in industries like aircraft, earth-moving machinery, and financial services. Agriculture-focused states are already feeling the pain as farmers in other countries rush to backfill demand abroad created by the trade war. If tech policies impact trade with China, even the Internet giants on the West Coast could be affected. But all things being equal, it seems we are continuing to experience a secular shift towards lower tax, less regulated states and away from the coasts. The stronger states, like California and Massachusetts, with their powerful innovation economies and highly educated populace, still might be able to buck the trend, but the economic future seems likely to favor places like Utah, Idaho, Colorado, Tennessee and Texas—now and in the years to come the likely locus of our most dynamic growth. Of course, no matter how dire the picture for some states right now, things can change—especially over a decade—all you need are the right policies to fulminate growth and opportunity. Just ask Florida. CE


MASTERS OF MANUFACTURING

Difference Maker

Subaru North America CEO Thomas Doll on the power of CSR in a challenging auto industry. BY GABRIEL PERNA

T

homas Doll came to Subaru in 1982 to establish the internal audit department and made his way up through the company on the financial side. He saw the Japanese carmaker—which has two production plants, one in Gumma, Japan, and one in Lafayette, Indiana—through peaks and valleys and its evolution into an emerging powerhouse in the North American market. In the mid-2000s, Doll was appointed president and COO of Subaru North America. At that time, the company was struggling to stand out from its larger competitors. But under Doll’s leadership, the company began an upward climb that made it one of America’s fastest growing brands. When Tomomi Nakamura was looking to find his replacement as CEO of Subaru North America in 2018, Doll was a natural pick. Doll is leading the company into its next phase of growth as it shoots for 5 percent market share in America—a significant achievement considering that when he started as president in 2006, they were at less than 1 percent market share. Chief Executive recently spoke with Doll about the future of the industry and how he’s leveraging CSR to fuel growth. Here are excerpts, edited for length and clarity. From trade to electrification, the auto industry faces a lot of challenges today. There’s no question that there are a lot of balls up in the air. With trade, you don’t know what potentially could happen. I’m an optimist though. I think things always will resolve themselves in the best way possible. In terms of electrification... to be frank with you, customers aren’t adopting the electrical vehicles as fast as we all thought. So it’s kind of delayed, and we’re kind of com-

ing to a [turning] point on it because, under regulations, a certain percentage of our vehicle sales will have to be electric vehicles with zero tailpipe emissions. But until you get to a certain level of economies of scale, [electric cars] are going to remain costly. So, the key is how to bridge the gap until enough customers are willing to adopt it. These things still have to work themselves out. What kind of emphasis does Subaru N.A. put on its CSR initiatives? This whole thing started probably back in 2008, when we felt that our customers, being as strong as they are, really didn’t need to have an incentive [to buy], necessarily, at the end of the year, like everybody else was doing. So what we did was divert a portion of the incentive into what we would call charitable works. We identified five partners to which we would donate

nies out there. But when you go into these local charities and raise $15,000, $20,000, $25,000 for them and see the impact that it has on them and their fundraising activities and what they can do with that money…it makes the hair on the back of your neck stand up. So that’s what we’re trying to get our retailers to understand—that we’re part of something bigger, right? In the age that we live in now, it’s become even more important to be able to give back. That’s why we think it is part of our responsibility. Once our company got to a certain level of success, it became our responsibility to give some of that back. That’s kind of what we’re all about. How do these initiatives impact the bottom line? I guess the way I look at it is that we’ve had 11 years of sales records and 12 years of sales increases during this

It’s really rewarding to see the impact that we’re having in the local communities in which we do business.” —Thomas Doll, CEO, Subaru, North America

money. The National Park Foundation became one back in about 2013. More importantly, we changed the program to allow retailers to contribute to their local communities. And they could take a portion of the money that we had and allocate it towards local charities. The whole idea was to tie us and the retailers into our local communities. And this is in addition to what we do with our foundation. It’s really rewarding to see the impact that we’re having in the local communities in which we do business. As a car company, we are small game compared to some of the other behemoth car compa-

period. We’ve probably been growing at about a 14 percent compound annual growth rate since we started this. So it’s been really rewarding to see the sales. Remember, we grew from selling about 180,000 vehicles a year to the point where this year we’ll sell 700,000 vehicles. Hopefully, we sell a little bit more than that, but that’s our target. So every year, it gains momentum. More people become aware of what it is we’re doing, and it just puts Subaru in a different line. Check out Masters of Manufacturing each month: ChiefExecutive.net/masters


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2020 CEO GUIDE TO SITE SELECTION 65


2020 CEO GUIDE TO SITE SELEC TION

Alabama

MANUFACTURING NEW OPPORTUNITIES FROM FOREIGN INVESTMENT

“Great companies from around the world recognize that Alabama is the ideal destination to carry out their growth plans because of the many advantages we can offer them.... Alabama is open for business, and we plan to keep pursuing economic development projects that lift families and communities.” —Gov. Kay Ivey

TAXES

6.5% top corporate income tax rate

#39 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION 89% of students graduated high school in 2017

The Cotton State experienced record economic growth in 2018 with 71 projects and 286 expansions worth more than $8.7 billion in capital investment. That trend continued in 2019, and roughly half comes from direct foreign investment, with South Korea, Japan, Germany and Canada being the top contributors. Alabama remains a leading state in auto manufacturing, with new investments by Mazda-Toyota and Mercedes-Benz. The space cluster in Huntsville is also growing with a recent investment by Blue Origin.

KEY INCENTIVES Alabama Jobs Act: Offers an annual cash rebate of up to 3% of the previous year’s gross payroll for projects creating at least 50 net new jobs, and an annual income tax credit of up to 1.5% of the qualified capital investment for projects for up to 10 years. Workforce Development: Offers pre-employment screening and training, and an apprenticeship tax credit of up to $1,000 per qualifying apprentice. An employer can claim up to five apprentices, up to $5,000 annually. Port Credit: Offers a one-time income tax credit of up to $50/TEU, $3/net ton of bulk cargo, or $.04 net kilogram of air cargo for shippers engaged in manufacturing, warehousing or distribution of goods. Abatements: Offers a property tax abatement of non-education portion of state and local property taxes for up to 20 years and a sales tax abatement on construction materials and equipment.

24.5% of adults age 25+ have a bachelor’s degree or higher.

UNEMPLOYMENT RATE 2.8% less than the national average of 3.6% RIGHT TO WORK STATE

Yes

QUALITY OF LIFE

#49

POPULATION GROWTH

2.3% increase between 2010 and 2018

EDCS Economic Development Association of Alabama edaa.org Economic Development Partnership of Alabama edpa.org Alabama Department of Commerce madeinalabama.com Birmingham Business Alliance birminghambusinessalliance.com Montgomery Chamber Economic Development prod.montgomery.cciconstellation.net/Home.aspx

HIGHLIGHTED PROGRAM OR INITIATIVE Gov. Ivey’s “Strong Start, Strong Finish” initiative was announced in July 2017 and makes improving education a top priority to lay the ground work for the workforce pipeline. In June 2019, the state expanded its Apprenticeship Alabama Tax Credit, and the U.S. Department of Labor selected the Alabama Community College System for a $12 million grant to build a partnership with the National Association of Manufacturers.

BIG DEALS • Mazda Toyota Manufacturing USA is currently constructing a $1.6 billion assembly plant in Huntsville which will create 4,000 jobs and produce more than 300,000 vehicles annually. • Amazon is constructing $325 million fulfillment center in Bessemer that will create 1,500 jobs. • Blue Origin announced in January 2019 the creation of 300 jobs and a $200 million plant in Huntsville to produce the BE-4 rocket engine. • Auto supplier YKTA announced in May 2019 a $220 million investment and 650 new jobs at a manufacturing facility in Huntsville. • Hyundai celebrated in May 2019 the opening of a $388 million engine facility in Montgomery that created 50 jobs. • Facebook announced in June 2018 a $750 million data center in Huntsville that will create up to 100 high-paying jobs. • Airbus announced in August 2019 it has begun manufacturing A220 aircraft at its production facility in Mobile and will add a second assembly line and hire 400 workers.

BIG COMPANIES Regions Financial (Fortune 500 headquarters) Mercedes-Benz Aerojet Rocketdyne Toyota Boeing Airbus Facebook Amazon

C-SUITE TESTIMONIALS “It is because of our workforce and statewide partnerships that Toyota has continued to grow and prosper in Alabama.” —David Fernandes, Former President, Toyota Alabama “Huntsville is a great place to build a future—and that’s what we are doing with our expansion here.” —Eileen Drake, CEO, Aerojet Rocketdyne “Alabama has a talented workforce, and we look forward to making a positive economic impact in a state where we are committed to providing great job opportunities and an exceptional customer experience.” —Mark Stewart, Vice President of North America Customer Fulfillment, Amazon

2020 CEO GUIDE TO SITE SELECTION 21


2020 CEO GUIDE TO SITE SELEC TION

Arizona

GRAND GROWTH IN THE GRAND CANYON STATE

“Arizona is open for business and our economy is booming. It’s not by accident: Arizona’s pro-business policies, low taxes and light regulations are delivering more opportunities and bigger paychecks for Arizona workers.” —Gov. Doug Ducey

Arizona remains one of the fastest-growing states in the nation and also has one of the top-five fastest growing economies, with GDP up 4% in 2018. While top sectors include aerospace and electronics manufacturing, a growing financial services hub is emerging in Phoenix. Since Gov. Ducey issued an executive order in March 2018 clarifying that self-driving vehicles are allowed on state roadways, Arizona has also become a proving ground for the new technology. Companies such as Waymo are already testing and operating 600 vehicles on the state roadways, and in October 2018, the state launched the Institute for Automated Mobility, a consortium focused on autonomous vehicle research, policy and safety.

KEY INCENTIVES TAXES 4.9% top corporate income tax rate

Quality Jobs Tax Credit: Offers up to $9,000 in state income or premium tax credits spread out over a threeyear period for each new qualifying job.

#27 on the Tax

Job Training Grants: Offers reimbursement of up to 75% of the approved training costs for eligible employees, up to $8,000 for each located in rural areas.

Foundation’s State Business Tax Climate Index ranking EDUCATION

78% of students

graduated high school in 2017

28.4% of adults age 25+ have a bachelor’s degree or higher

UNEMPLOYMENT RATE

4.8%, higher than the

Qualified Facility Tax Credit: Offers a refundable tax credit equal to 10% of the capital investment for up to $20,000 per qualified new job created for a manufacturing or manufacturing research-related facility.

• TuSimple announced in September 2018 a $5 million expansion of its Tucson location with 500 jobs. • Infosys announced in September 2018 the establishment of an $18 million technology and innovation hub and 1,000 new jobs in Phoenix. • Voya Financial announced in November 2018 1,000 new jobs and a $60 million office in Phoenix. • Microsoft announced in July 2019 plans to build three data centers in Goodyear and El Mirage with a potential capital investment of hundreds of millions.

BIG COMPANIES Six Fortune 500 companies are headquartered in the state:

EDCs

C-SUITE TESTIMONIALS

Yes

RIGHT TO WORK STATE

Arizona Commerce Authority azcommerce.com

QUALITY OF LIFE

Greater Phoenix Economic Council gpec.org Southeast Arizona Economic Development Group saedg.org Arizona Regional Economic Development Foundation aredf.org

HIGHLIGHTED PROGRAM OR INITIATIVE Maricopa County Community College District, Central Arizona College and Pima Community College District has formed a first-of-its kind partnership to prepare the local workforce for careers in manufacturing. Schools in the Arizona Advanced Technology Network offer a

22 2020 CEO GUIDE TO SITE SELECTION

• Deloitte announced in June 2018 a capital investment of $37.5 million and 2,500 jobs at a delivery center in Gilbert.

Research and Development Tax Credit: Offers an income tax credit for investing in R&D in Arizona. Credit is non-refundable and equal to 24% of the first $2.5 million in qualifying expenses, plus 15% of the qualifying expenses in excess of $2.5 million.

Arizona Association for Economic Development aaed.com

POPULATION GROWTH 12.2% increase between 2010 and 2018

BIG DEALS

Avnet Freeport-McMoRan Republic Services Insight Enterprises Magellan Health ON Semiconductor

national average of 3.6%

#34

standard curriculum that meets rigorous third-party industry credentialing standards. It supports advanced technical job growth in the 130-mile corridor between Phoenix and Tucson where 90 percent of the state’s manufacturers operate.

“With impressive defense and tech infrastructure already in place, access to the nation’s top talent, and a high standard of living, Arizona is a force to be reckoned with in cybersecurity.” —John Zanni, CEO, Acronis SCS “Phoenix’s prime geographic location coupled with Arizona’s skilled workforce and business-friendly environment provides the essential resources for future growth and success. Expanding in the Phoenix area will enable us to provide greater service to our customers across time zones.” —Rodney O. Martin, Jr., Chairman and CEO, Voya Financial “Arizona has actively supported the research and development of autonomous vehicles, and we are pleased to be expanding our footprint in the state. We thank Governor Ducey and our community partners for their generous support.” —Xiaodi Hou, CTO and co-founder, TuSimple


2020 CEO GUIDE TO SITE SELEC TION

Arkansas “In Arkansas, we have our natural beauty, our natural resources and our solid record of economic growth. But our most important selling point is the people of Arkansas. Without exception, the CEOs who have chosen to do business in Arkansas talk about the strength of our workforce.” —Gov. Asa Hutchinson

TAXES 6.5% top corporate income tax rate

A GROWING MAGNET FOR FDI

BIG DEALS

As of December 2018, there were nearly 300 foreignowned companies operating in Arkansas, ranging from manufacturing and technology to service providers. The top three countries contributing investments in the state were Japan, Germany and Ireland. Manufacturing remains a top sector, and financial services is seeing growth. Little Rockheadquartered Bank OZK is now the largest construction lender in the country, with more than 3,000 employees and 250 locations in 10 states. Homegrown fintech company FIS has also experienced strong growth, and now has annual revenues of more than $8.7 billion and 52,000 employees around the world.

• Big River Steel announced in June 2018 a $1.2 billion expansion of its facility in Osceola.

KEY INCENTIVES

• Lockheed Martin announced in June 2019 a $142 million expansion and 326 new jobs over the next few years at its center of excellence in Camden.

Advantage Arkansas: Offers a state income tax credit for the creation of jobs with wages equal to or above the lowest county average hourly wage. ArkPlus: Offers state income tax credits of up to 10% of the total investment of a new location or expansion for projects that meet the threshold.

#46 on the Tax

Tax Back: Provides sales and use tax refunded on the purchase of building materials, machinery and equipment to eligible businesses.

Foundation’s State Business Tax Climate Index ranking EDUCATION

Equity Investment Tax Credit: Discretionary income tax credit of up to 33.3% of amount invested for techbased businesses offering wages above state or county averages.

88% of students

graduated high school in 2017

Create Rebate: Discretionary incentive that provides annual cash payments based on a company’s annual payroll for new, full-time, permanent employees.

22% of adults age 25

Targeted Business Incentives: Offers specialized incentives, including tax refunds and transferable credits, to help knowledge-based startups.

to 64 have a bachelor’s degree or higher UNEMPLOYMENT RATE

3.5%, less than the

national average of 3.6% RIGHT TO WORK STATE

EDCS Arkansas Economic Development Commission arkansasedc.com

Yes

Arkansas Economic Developers Chamber Executives aedce.org

QUALITY OF LIFE

Association of Arkansas Development Organizations arkansaseconomicregions.org

#45

POPULATION GROWTH

3.4% increase between 2010 and 2018

HIGHLIGHTED PROGRAM OR INITIAIVE In early 2019, Plug and Play announced plans to open a supply chain and logistics accelerator program in Northwest Arkansas. The initiative, whose founding partners include Walmart, Tyson Foods and JB Hunt, will bring innovative startups from around the world to build up the region’s robust innovation ecosystem.

• CoorsTek Inc. announced in March 2019 a $26 million expansion of its manufacturing facility in Benton. • CZ-USA, the U.S.-based affiliate of a Czech firearms manufacturer, announced in April 2019 a $90 million investment to locate its North American headquarters and build a manufacturing facility at the Port of Little Rock. • SupplyPike announced in May 2019 a new location and 180 new jobs over the next five years at a facility in Fayetteville.

BIG COMPANIES Six Fortune 500 companies are headquartered in the state: Walmart Tyson Foods Murphy USA J.B. Hunt Transport Services Dillard’s

C-SUITE TESTIMONIALS “The facility has a long record of precision manufacturing and on-time deliveries, which is the reason we continue to invest in and expand our Camden operations. This expansion will help ensure the availability, affordability and quality of systems we build for our customers around the world.” —Frank St. John, Executive Vice President, Lockheed Martin Missiles and Fire Control “SupplyPike is incredibly excited to be partnering with the Arkansas Economic Development Commission to create new jobs in Arkansas. As the state’s economy continues to grow, attracting and retaining top talent in the region starts with providing diverse and unique job opportunities.” —Greg Kessman, President, SupplyPike “As CZ looked to increase our presence in North America, it engaged in a multi-state search for the ideal location. The Arkansas workforce, culture, business climate and industry support clear the way for us to choose Little Rock as our new home.” —Bogdan Heczko, Chairman, CZ-USA

2020 CEO GUIDE TO SITE SELECTION 23


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2020 CEO GUIDE TO SITE SELEC TION

California

GOLDEN OPPORTUNITIES

“By every traditional measure, the state of our state is strong. We have a record-breaking surplus. We’ve added 3 million jobs since the depths of the recession. Wages are rising. We have more scientists, researchers and engineers, more Nobel laureates, and the finest system of higher education anywhere in the world.” —Gov. Gavin Newsom

TAXES

8.84% top corporate income tax rate

#49 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION 83% of students graduated high school in 2017

32.6% of adults age 25 to 64 have a bachelor’s degree or higher.

UNEMPLOYMENT RATE

3.9%, greater than the

national average of 3.6% QUALITY OF LIFE

The Golden State often ends up at the bottom of Chief Executive’s list of the Best and Worst States in which to do business (according to survey respondents), but there is no shortage of companies eager to invest in new projects and expand here. Despite the regulations, taxes and high cost of living, many find the availability of talent, access to ports and Asian markets and incentives attractive. Google, Epson, UL and Home Chef have all announced new projects here in the past year.

KEY INCENTIVES California Competes Tax Credit: Offers a flexible income tax credit for businesses that come, stay and grow in the state. Applications are accepted three times per year, and tax credit agreements are reviewed and negotiated by GO-Biz and the California Competes Tax Credit Committee.

BIG DEALS • Google announced in August 2019 more details to remake San Jose’s downtown district with housing and infrastructure to support up to 25,000 employees. • Home Chef announced in August 2019 an expansion of operations in San Bernardino. • Epson America announced in March 2019 it will move its corporate headquarters to Los Alamitos, near its current facility in Long Beach. • Karma Automotive opened in April 2019 a $100 million innovation hub in Moreno Valley, bringing 200 new jobs.

California Research Credit: Offers a tax credit of up to 15% to taxpayers engaged in qualified research activities to discover new technology, develop a new business component or pursue a “process of experimentation.”

• UL opened in June 2019 a Silicon Valley EMC and wireless testing lab in Freemont. The expansion to the existing facilities bring a total of more than 300 workers on the site.

Sales and Use Tax Exemption for Manufacturing: Offers a partial exemption of sales and use tax on certain manufacturing and R&D equipment purchases and leases.

BIG COMPANIES

Advanced Transportation and Manufacturing Sales and Use Tax Exemption: California Alternative Energy and Advanced Transportation Financing Authority offers a full sales-and-use tax exclusion for manufacturers that promote alternative energy and advanced transportation.

EDCs California Association for Local Economic Development caled.org California Governor’s Office of Business and Economic Development business.ca.gov

#19

Greater Sacramento Economic Council selectsacramento.com

POPULATION GROWTH

Los Angeles Economic Development Corp. laedc.org

2010 and 2018

San Diego Regional Economic Development Corp. sandiegobusiness.org

6.2% increase between

Together initiative to bring together leaders in every region of the state to ensure economic development lifts every part of California. 2020 will bring a greater focus on inland communities that face higher unemployment and experienced declined in per capita incomes.

San Francisco Office of Economic & Workforce Development oewd.org

HIGHLIGHTED PROGRAM OR INITIATIVES In May 2019, the Governor’s Office of Business and Economic Development announced the Regions Rise

49 Fortune 500 companies are headquartered in the state, including: Apple Chevron Wells Fargo Intel Disney Hewlett Packard Enterprise Cisco Systems HP Oracle Facebook

C-SUITE TESTIMONIALS “This is an exciting time for Epson America, and considerable thought went into making this strategic decision. Ultimately, ensuring that our employees have the world-class facilities necessary to continue to innovate, compete and build careers was our top priority…. We look forward to the next chapter in our growth with the Los Alamitos and the Orange County community with the new headquarters facility.” —Keith Kratzberg, President & CEO, Epson America “We are thrilled to be a part of Silicon Valley’s innovation ecosystem… The expanded facility equips us to better support Silicon Valley companies and to fast-track their project fulfillment, allowing them ultimately to quickly grow and thrive.” —Ghislain Devouge, Global Vice President and General Manager Consumer Technology, UL

2020 CEO GUIDE TO SITE SELECTION 25


2020 CEO GUIDE TO SITE SELEC TION

Colorado

ROLLING ECONOMIC GROWTH IN THE ROCKIES

“Here in Colorado, we climb the highest mountains. We look far past the horizons. We dream, we dare, and we do. I’m here to talk about the state of what’s yet to come. Because in the days, months, and years ahead, we are here to do more than build on the achievements of the past...We are here to boldly forge a new path into the future. To make change work for us, rather than against us.” —Gov. Jared Polis

TAXES

4.63% top corporate income tax rate

#18 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

79% of students

graduated high school in 2017

39.4% of adults age 25+ have a bachelor’s degree or higher

UNEMPLOYMENT RATE

2.6%, less than the

Data from the U.S. Bureau of Economic Analysis found the Centennial State’s GDP growth last year was the seventh greatest in the nation, and that it grew at the fastest rate since 2015. High quality of life and a strong talent pool have recently attracted companies like VF Corporation, ViewRay, Checkr and F/LIST.

#10

POPULATION GROWTH 13.2% increase between 2010 and 2018

• BNSF Railway broke ground in March 2019 on a new logistics center in Denver. • Checkr announced in April 2019 it had selected Denver as its second headquarters.

Job Growth Incentive Tax Credit: Offers a state income tax credit for businesses that create at least 20 jobs with annual wages of at least 100% of the county average wage where it is located.

• Medical technology company ViewRay announced in July 2019 up to 200 new high-paying jobs at an expansion of its operations in Denver.

Colorado First Customized Job Training Program: Offers up to $1,200 per employee in training by one of the state’s community colleges, provider of the company’s choosing or an in-house trainer. Enterprise Zone Tax Credits: Offers a variety of investment and workforce tax credits for companies operating in economically distressed areas. Strategic Fund: Offers incentives of up to $5,000 for each job created with average annual wages of 140% of the average county wage.

• Austrian manufacturer F/LIST announced in July 2019 it would establish its U.S. headquarters and manufacturing operations in Colorado Springs.

BIG COMPANIES 24 Fortune 500 companies headquartered in state, including:

Colorado Office of Economic Development and International Trade choosecolorado.com

Arrow Electronics DaVita DISH Network Molson Coors Brewing Western Union Woodward Liberty Oilfield Services Whiting Petroleum SM Energy

Economic Development Council of Colorado edcconline.org

C-SUITE TESTIMONIALS

EDCs

Northern Colorado Economic Alliance northerncolorado.com Metro Denver Economic Development Corporation metrodenver.org Colorado Springs Chamber & Economic Development Corporation coloradospringschamberedc.com

HIGHLIGHTED PROGRAM OR INITIATIVE Gov. Polis created by executive order in September 2019 the Office of Future of Work to research, analyze and develop recommendations to help communities transition to emerging industries.

BIG DEALS • Fortune 250 company VF Corporation announced in August 2018 it would relocate its headquarters to Denver.

26 2020 CEO GUIDE TO SITE SELECTION

• Trisco Foods of Australia announced in February 2019 it would establish its U.S. headquarters in Colorado Springs and add up to 75 jobs over the next eight years.

KEY INCENTIVES

national average of 3.6% QUALITY OF LIFE

• Construction and engineering firm Kiewit announced in February 2019 it will create 200 jobs at a new regional office in Lone Tree.

“Colorado is an area with an unrivalled heritage and culture of outdoor and activity-based lifestyles, as well as a thriving business environment.” —Steve Rendle, Chairman, President and CEO, VF “Colorado is the perfect location for our second headquarters, and we are very excited to become a part of the vibrant Denver community…We look forward to partnering with Governor Polis and other leaders to increase fair chance hiring and expand economic opportunities for Coloradans now and in the coming years.” —Daniel Yanisse, co-founder and CEO, Checkr “Colorado Springs was chosen as an ideal location for our international expansion. With good access to the entire United States, as well as a growing specialty food manufacturing culture, we see great opportunities for the future…Colorado Springs is an exciting and fast-growing region and mirrors the balanced but hardworking lifestyle of our hometown in Brisbane, Australia.” —Mike Tristram, CEO, Trisco Foods


2020 CEO GUIDE TO SITE SELEC TION

Connecticut “Connecticut punches above its weight in aerospace, defense, engineering and advanced manufacturing. Our highly skilled talent, advanced manufacturing education programs and ecosystem are ground zero for companies like Pratt & Whitney and Otis.” —Gov. Ned Lamont

TAXES 7.5% top corporate income tax rate

#47 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

88% of students

graduated high school in 2017

SMALL STATE, BIG REPUTATION

BIG DEALS

Connecticut’s business reputation continues to outgrow its size and population. The state is now home to 15 Fortune 500 headquarters, and big companies continue to flock to Stamford. Technology remains a driving sector. In March 2018, Infosys announced it will establish a $20 million technology and innovation hub in Stamford and create up to 1,000 high-tech jobs by 2022. Professional services firm PricewaterhouseCoopers also announced in May it will make Stamford headquarters for its Insourced Solutions for Tax (IST) division. Manufacturing continues to see strong growth across the state, with recent investments by Sikorsky, Pratt & Whitney, and Electric Boat.

• Sema4, a Mount Sinai venture offering genomic testing, announced in April 2018 it will add 408 jobs in the state over the next five years.

KEY INCENTIVES

UNEMPLOYMENT RATE

• Gartner announced in September 2018 the addition of 400 jobs in Stamford over the next five years.

Connecticut Bioscience Innovation Fund: A $200 million, 10-year program that offers focused financial assistance to startups, early stage businesses, nonprofits and accredited universities.

United Technologies Corporation Cigna Charter Communications Hartford Financial Services Synchrony Financial XPO Logistics Booking Holdings Stanley Black & Decker Xerox Frontier Communications

Angel Investor Tax Credit: Offers a 25% state income tax credit for investments of between $25,000 and $2,000,000 in qualified Connecticut businesses. Digital Media Tax Credit: Offers a tax credit of up to 30% on qualified digital media and motion picture production expenses, up to $1 million or more.

EDCs Department of Economic and Community Development ct.gov/ecd

national average of 3.6%

Connecticut Economic Development Association cedas.org

QUALITY OF LIFE

Connecticut Economic Resource Center cerc.com

POPULATION GROWTH 0% increase between 2010 and 2018

• KPMG announced in July 2018 it will add 110 jobs over the next five years at a new office in Stamford.

BIG COMPANIES

3.6%, equal to the

#21

• Indeed announced in December 2018 it will add 500 jobs to its operations in Stamford.

Urban and Industrial Site Reinvestment Tax Credit: Offers a dollar-for-dollar tax credit on qualifying projects with a minimum of $5 million in distressed communities and $50 million in all other communities.

38.4% of adults age 25+ have a bachelor’s degree or higher

• ITV America and Wheelhouse Entertainment announced in May 2018 an entertainment production hub in Stamford that will create 450 jobs.

Metro Hartford Alliance Economic Development Division metrohartford.com/economic-development

HIGHLIGHTED PROGRAM OR INITIATIVE In the most recent legislative session, Connecticut enacted legislation that would phase out the Capital Base Tax. Starting in 2021, the tax will be fully phased out by 2024.

17 Fortune 500 companies are headquartered in the state, including:

C-SUITE TESTIMONIALS “Connecticut offers an optimal environment to address our company’s growing needs for qualified candidates and provides access to leading universities and medical centers.” —Eric Schadt, Ph.D., Founder and CEO, Sema4 “What we love about Connecticut is the great balance that we have, the great quality of life, the great access to Boston and New York City. It is a place you can attract talent to. It has great quality of life, we have great educational institutions and cultural assets, it really is a balanced set of attributes.” —Jim Loree, President and CEO, Stanley Black & Decker “What I have seen since we’ve been here for so long is an increase in talent we are able to have walk through our doors…We now have people, which has never happened before, coming from New York City on the train and working for us here in Fairfield.” —Cindi Bigelow, CEO, Bigelow Tea

2020 CEO GUIDE TO SITE SELECTION 27


2020 CEO GUIDE TO SITE SELEC TION

Delaware “All over our state, Delaware has great communities where you can live, work and raise a family. We have low taxes, responsive leadership, a worldclass workforce and a central location that has long been a great place for businesses to grow and create good-paying jobs.” —Gov. John Carney

TAXES

8.7% top corporate income tax rate

#11 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION 87% of students graduated high school in 2017

31% of adults age 25+

have a bachelor’s degree or higher UNEMPLOYMENT RATE 3.7%, higher than the national average of 3.6% QUALITY OF LIFE

#23

MOVING FORWARD WITH FINTECH

BIG DEALS

While many organizations still file their articles of incorporation in The First State for its business-friendly laws, they’re also looking at the state for new operations. Adesis announced it will construct a state-of-the-art lab in New Castle, and Ashland and Belchim Crop Protection have both announced headquarters here in in the past year.

• Advanced chemicals company Solenis announced in August 2018, the expansion of its Wilmington headquarters with 92 jobs and a $763,0000 capital investment.

KEY INCENTIVES Delaware Strategic Fund: Offers low-interest loans and grants to businesses for job creation, relocation, expansion or capital investment. New Economy Jobs Tax Credit: Offers a refundable state tax credit based on the portion of total payroll for companies that contribute high-paying jobs to the state economy. New Business Facility Tax Credit: Offers credits against corporate or personal income taxes, gross receipts tax and public utility tax for businesses that hire five or more employees and invest at least $200,000 in a qualified facility. Research and Development Tax Credits: Promotes new R&D by lowering payments on taxable expenses with two available methods to determine the credit. Angel Investor Tax Credit: Create a refundable personal income tax credit for qualified investors in innovative, Delaware-based small businesses to spur job creation and innovation.

EDCs Delaware Prosperity Partnership deprosperitypartnership.com Mayor’s Office of Economic Development, Wilmington, DE wilmingtonde.gov/government/city-departments/ office-of-economic-development Delaware Division of Small Business business.delaware.gov

POPULATION GROWTH

7.7% increase between 2010 and 2018

28 2020 CEO GUIDE TO SITE SELECTION

HIGHLIGHTED PROGRAM OR INITIATIVE Gov. John Carney signed in September 2018 a 50-year concession with Gulftainer, the world’s privately owned independent port operator and logistics company, to significantly expand the Port of Wilmington and create a new facility in the Delaware River. GT USA, a subsidiary of Gulftainer, will invest up to $600 million in both ports over the next decade, something officials say will expand economic opportunity in the region.

• Allen Harim followed a $22 million investment in a new hatchery and opened its new corporate headquarters in Seaford in August 2018. • Global chemicals company FMC announced a $50 million investment to construct a new R&D center in Newark. • Fintech company Marlette Funding announced 121 new jobs and a $7.5 million investment in its Wilmington headquarters in December 2018. • DOT Foods announced a new $35 million distribution center and 200 new jobs in Bear in August 2018. • Adesis announced the expansion of its New Castle headquarters and 59 new jobs in July 2018.

BIG COMPANIES DuPont JPMorgan Chase M&T Bank Merck Animal Health Mountaire Farms Perdue Farms 3 Fortune 500 companies headquartered in state: Chemours DuPont Navient

C-SUITE TESTIMONIALS “There’s no better place to be in business than in Delaware. You can make one call and speak to the governor, you run into your legislators on a regular basis and you can contact any agency and get immediate personal attention.” —Rob Rider, CEO, O.A. Newton “This area provides access to an outstanding workforce, easy access for our corporate partners and interaction with a thriving economic and scientific community.” —Richard Birkmeyer, CEO, CD Diagnostics


2020 CEO GUIDE TO SITE SELEC TION

Florida

A BRIGHT ECONOMIC PICTURE IN THE SUNSHINE STATE

“Florida’s economy is strong, but we cannot rest on our laurels.... We have to build on our success by keeping taxes low and regulations reasonable, becoming the number one state for career and technical education and making smart investments in our infrastructure and environment.” —Gov. Ron DeSantis

TAXES 5.5% top corporate income tax rate

#4 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION

82% of students

graduated high school in 2017

28.5% of adults ages 25+ have a bachelor’s degree or higher

While several economists noted in mid-2019 there was a growing chance of Florida slipping into a recession, job numbers and new residents continue to climb. The Sunshine State remains home to some of the country’s fastest-growing metro areas, and companies continue to expand and locate here. Boeing, Lockheed Martin, Kroger and Timber Resorts have all made investments in the state in the past year.

KEY INCENTIVES Qualified Target Industry Tax Refund: Offers up to $3,000 per net new Florida full-time equivalent job created for companies that create high wage jobs in targeted high value-added industries. Capital Investment Tax Credit: Offers an annual credit for up to 20 years against the corporate income tax for products in high-impact sectors such as advanced manufacturing, clean energy, biomedical technology and more. Projects must create at least 100 jobs and invest a minimum of $25 million in eligible costs. Quick Response Training: Offers a training program to assist new value-added businesses with the necessary training for expansion through collaboration with educational facilities and reimbursable training expenses. Incumbent Worker Training Program: Offers additional training to currently employed workers to keep the state workforce competitive in the global economy. Available to all businesses that have been in operation at least one year prior to application and require skilled upgrade trading for existing employees.

UNEMPLOYMENT RATE

EDCS

national average of 3.6%

Enterprise Florida www.floridathefutureishere.com/access

3.2%, less than the

RIGHT TO WORK STATE

St. Petersburg Area Economic Development Corporation stpeteedc.com

QUALITY OF LIFE

Miami-Dade Beacon Council beaconcouncil.com

POPULATION GROWTH 13.3% increase between 2010 and 2018

Tampa Bay Economic Development Council tampaedc.com

Yes

#13

Orlando Economic Partnership orlando.org

HIGHLIGHTED PROGRAM OR INITIATIVE In August 2019, Enterprise Florida announced Export Concierge Service, a program that provides an array of services to support export opportunities for Florida-based businesses. It offers an array of services, from

customized market research to business matchmaking and appointment setting with prospective partners and distributors.

BIG DEALS • Publix announced in September 2018 it will expand its headquarters in Lakeland and add 700 jobs over the next decade. • Timber Resorts announced in December 2018 it will open its new corporate headquarters and create 80 jobs in Winter Park. • Lockheed Martin announced in February 2019, the opening of its $50 million, 255,000-square-foot research and development II facility in Orlando. • Boeing announced in June 2019, it will relocate its space and launch division headquarters from Arlington, Virginia, to Florida’s Space Coast. • Lockheed Martin celebrated in July 2019 the move of its Fleet Ballistic Missile headquarters from Sunnyvale, California, to Titusville.

BIG COMPANIES 19 Fortune 500 companies are headquartered in the state, including: World Fuel Services Tech Data Publix Super Markets Jabil AutoNation Lennar WellCare Health Plans NextEra Energy CSX Office Depot

C-SUITE TESTIMONIALS “We are thrilled and grateful to call Titusville our new home.... This region plays a prominent role in the defense industry.” —Sarah Hiza, Vice President for Fleet Ballistic Missile programs, Lockheed Martin Space “We are very excited to join the Winter Park community.... Moving our headquarters out of the Aspen area was a difficult decision, but we feel that Winter Park has a very similar spirit that our brand and employees will fit well within.” —Greg Spencer, CEO, Timbers Resorts “Moving a manufacturing plant from New Jersey to Seminole was a huge task, but well worth it. We feel very welcome in Pinellas County... We’ve hired 80 well-qualified employees in the factory and our offices. We find the weather and community very hospitable, taxes less painful and the sunsets magical. My only regret is that we didn’t move to Florida many years earlier.” —Rahul Shukla, CEO, S.S. White Technologies

2020 CEO GUIDE TO SITE SELECTION 29


2020 CEO GUIDE TO SITE SELEC TION

Georgia “Georgia’s unmatched pro-business environment has repeatedly served as a magnet for many global headquarters, but there is no greater endorsement than when one of our own chooses to grow and invest in the Peach State.” —Gov. Brian Kemp

PROSPERITY IN THE PEACH STATE

BIG DEALS

Georgia remains a leader in fintech, and payment processing firms located in the state now handle approximately 70 percent of all U.S. transactions. Atlanta-based Global Payments and Columbus-based TSYS announced a merger in May 2019 where the combined organization will provide solutions to more than 3.5 million business and 1,300 financial institutions in over 100 countries. Amazon, GE Appliances, Wayfair and Korean battery manufacturer SK innovation have also made notable investments in the state in the past year.

• Wayfair announced in November 2018 it will open a $45 million distribution center and create 1,000 jobs in Savannah.

KEY INCENTIVES

• GE Appliances announced in June 2019 a $130 million expansion and 300 new jobs.

Job Tax Credit: Offers a tax credit from $1,250 to $4,000 per year for five years for every new job created in qualifying sectors and depending on the number of jobs created.

• Korea's SK innovation announced in November 2018 it will invest $1.67 billion and create 2,000 jobs at a manufacturing facility in Jackson County. • PVH announced in March 2019 a $77 million distribution facility and 575 new jobs in Palmetto. • Invesco announced in May 2019 500 jobs and a $70 million expansion of its global headquarters in Atlanta.

• Online personal styling service Stitch Fix announced in July 2019 it will open a new distribution center and create 900 jobs in Lithia Springs.

Port Tax Credit Bonus: Offers an additional $1,250 credit per new job per year for five years for companies that increase their imports or exports through a Georgia port by 10%.

• Amazon announced in July 2019 it will open a new fulfillment center and create 1,000 jobs in Gwinnett and DeKalb counties.

Foundation’s State Business Tax Climate Index ranking

Quality Jobs Tax Credit: Offers a credit of $2,500 to $5,000 per new job per year for five years for companies that create at least 50 high-paying jobs in a two-year period.

BIG COMPANIES

EDUCATION

R&D Tax Credit: Offers a credit for organizations that participate in lab research, innovation, prototyping or conducting new products or processes or tests on manufacturing equipment.

Coca-Cola Aflac Delta Airlines First Data Home Depot Mohawk Industries SunTrust Banks Southern Company United Parcel Service Veritiv

TAXES

5.75% top corporate income tax rate

#33 on the Tax

81% of students

graduated high school in 2017

29.9% of adults age 25+ have a bachelor’s degree or higher

Tax Exemptions: Offers a variety of exemptions on sales and use taxes for a wide range of expenditures made by manufacturers.

UNEMPLOYMENT RATE

EDCs

national average of 3.6%

Georgia Department of Economic Development georgia.org

RIGHT TO WORK STATE

Yes

Augusta Economic Development Authority augustaeda.org

QUALITY OF LIFE

Invest Atlanta investatlanta.com

3.4%, less than the

#17

POPULATION GROWTH

8.6% increase between 2010 and 2018

Greater Columbus Georgia Chamber of Commerce choosecolumbusga.com Savannah Economic Development Authority seda.org

HIGHLIGHTED PROGRAM OR INITIATIVE The Georgia FinTech Academy was formed in 2018 and has a goal of producing more than 2,000 graduates by 2023 to address the workforce needs in the financial technology industry. It offers courses on Georgia university campuses, and is a $20 million initiative backed by a public private partnership with plans to be self-sustaining in three years. 30 2020 CEO GUIDE TO SITE SELECTION

18 Fortune 500 companies headquartered in state, including:

C-SUITE TESTIMONIALS “Amazon has found an outstanding workforce, strong local support and incredible customers in the state, and we look forward to creating 1,000 new, full-time jobs with industry leading pay and benefits on day one.” —Roy Perticucci, Vice President of Customer Fulfillment, Amazon “In selecting Gwinnett County for our national headquarters, we believe we can support OS National’s explosive growth and strategic expansion efforts across the U.S. We recognize the county’s efforts providing businesses excellent options for growth and helping to grow a rich and diverse talent pool for the future.” —Jamie Wunder, Managing Partner, OS National “We’re excited by the opportunity to build on our 40-year presence in the city and meaningfully expand our local team to nearly 1,200 professionals, which will enhance our ability to meet client needs here in Atlanta and across the globe.” —Martin L. Flanagan, President and CEO, Invesco


2020 CEO GUIDE TO SITE SELEC TION

Idaho “When I took office as Idaho’s 33rd Governor in January, I was determined to follow through on my promise to reduce regulatory burdens on Idaho citizens and businesses. Six months later, we have cut or simplified 40 percent of Idaho regulations! Idaho’s work is setting an example for other states and the federal government to follow.” —Gov. Brad Little

TAXES

6.9% top corporate income tax rate

#21 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION 80% of students graduated high school in 2017

26.8% of adults age 25+ have a bachelor’s degree or higher

UNEMPLOYMENT RATE

2.9%, less than the

BIG GROWTH IN THE GEM STATE

BIG DEALS

In 2018, the Census Bureau ranked Idaho the fastest-growing state for the second year in a row. The population has grown by a total of 12% since 2010, putting it on track to reach two million residents by 2025. Economic momentum in the Boise area is attracting both residents and companies. Clearwater Analytics, Americor, Kount and Emsi have announced expansions here in recent years.

• Emsi announced in July 2019 it will expand its presence in Moscow with a new 70,000-square-foot headquarters.

KEY INCENTIVES Idaho Tax Reimbursement Incentive: Offers a performance-based with a tax credit of up to 30% for up to 15 years on new state tax revenues generated by companies seeking to expand and add new jobs in the state. Idaho Opportunity Fund: Offers funding at the discretion of the Idaho Commerce director for infrastructure improvements to attract new commercial or industrial facilities.

POPULATION GROWTH

2010 and 2018

BIG COMPANIES

Other big companies include:

Workforce Development Reimbursements: Offers up to $3,000 for the training of new full-time employees or for helping retrain employees facing layoff.

Albertson’s Micron Technology J.R. Simplot Winco Foods Lamb Weston Paylocity Boise Cascade

EDCS

C-SUITE TESTIMONIALS

Idaho Economic Development Association iedassociation.com

“With an expanding tech presence and a flourishing community and culture, Boise was the ideal choice for Paylocity’s newest location.” —Mark Kinsey, Senior Vice President Operations, Paylocity

Idaho Commerce commerce.idaho.gov

RIGHT TO WORK STATE

11.9% increase between

• The nation of Taiwan signed a deal with the state in September 2019 to buy more than $576 million of wheat over the next two years.

3% Investment Tax Credit: Offers a tax credit on all new personal property (machinery and equipment) used in the state.

Nampa Economic Development cityofnampa.us/858/Economic-Development

#16

• Tech company Americor announced in September 2019 it plans to create 500 to 800 jobs.

Two Fortune 500 companies headquartered in state, including:

Boise Valley Economic Partnership bvep.org

QUALITY OF LIFE

• Clearwater Analytics announced in July 2018 a 26,000-square-foot expansion of its building in downtown Boise. The company now employs more than 650 people in the area.

Idaho Business Advantage: Offers a wide package of incentives, including tax credits, sales tax rebates and property tax exemptions, for business that invest at least $50,000 and create at least 10 new jobs averaging $40,000 per year.

national average of 3.6%

Yes

• Taiwanese dairy product manufacturer Jetton Biochemistry Co. will locate a new facility in southwest Nampa and create 25 new jobs.

HIGHLIGHTED PROGRAM OR INITIATIVE The Idaho Global Entrepreneurial Mission program supports commercialization partnerships and invests in the development of new businesses, research facilities, new products and high value jobs through Boise State University, Idaho State University, and the University of Idaho.

“With Strada’s backing and the crucial support of many people in Idaho, we are grateful and excited to build this signature building in Moscow.” —Andrew Crapuchettes, CEO, Emsi “Our value is based on the supply chain of raw materials and the value of dairy products within that chain. Idaho’s quality and technology of milk production is consistently improving. This will be a very important asset for our products to compete internationally.” —Rover Lin, CEO, JBC

2020 CEO GUIDE TO SITE SELECTION 31


2020 CEO GUIDE TO SITE SELEC TION

Illinois “Illinois workers are dedicated, educated and skilled—and they're the reason businesses around the world are proud to operate here…I’m deeply committed to ensuring that Illinoisans around the state— especially those in disadvantaged communities—can get good jobs in their communities, and to build on what works. Illinois’ future depends on a well-trained workforce.” —Gov. J.B. Pritzker

TAXES 9.5% top corporate income tax rate

#36 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

87% of students

graduated high school in 2017

33.4% of adults age 25+ have a bachelor’s degree or higher

UNEMPLOYMENT RATE 3.9%, greater than the national average of 3.6% QUALITY OF LIFE

#35

POPULATION GROWTH

0.7% decrease between 2010 and 2018

32 2020 CEO GUIDE TO SITE SELECTION

AMERICA’S GLOBAL POWERHOUSE

BIG DEALS

Home to 37 Fortune 500 company headquarters and one of the world’s financial capitals, Illinois remains one of the U.S. global powerhouses. While Chicago leads the way in financial services, tech and life sciences, many parts of the state are experiencing strong growth in advanced manufacturing and food processing. Salesforce, Ford and Accenture have all made big announcements here in the past year.

• Salesforce announced in November 2018 it will add 1,000 jobs and invest $175 million to expand its regional headquarters in Chicago.

KEY INCENTIVES EDGE (Economic Development for a Growing Economy): Offers tax incentives to encourage companies to locate or expand operations when there is active consideration of a competing location in another state. Enterprise Zone Program: Offers state and local tax incentives, regulatory relief and improved governmental services to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state. Employer Training Investment Program: Offers grants to reimburse new or expanding companies for up to 50% of the cost of training their employees. Research & Development Tax Credit: Offers a non-refundable tax credit of 6.5% of qualifying R&D expenses in the state that exceed the baseline amount of R&D expenses. Manufacturing Machinery & Equipment: Offers a 6.25% state exemption against the purchase of consumable items used in the manufacturing process.

EDCs Illinois Department of Commerce and Economic Opportunity illinois.gov/dceo Illinois Economic Development Association ileda.org Intersect Illinois intersectillinois.org World Business Chicago worldbusinesschicago.com

HIGHLIGHTED PROGRAM OR INITIATIVE Gov. Pritzker issued an executive order in January 2019 that directed state agencies to review industries for economic growth and determine how disenfranchised populations may be improved in communities across the state. Representatives of four state agencies identified three action areas and strategies including the use of regional cluster strategies, preparing Illinois workers for long-term careers and connecting job seekers with employers.

• Ford announced in February 2019 a $1 billion upgrade and the addition of 500 jobs at two of its factories in Chicago. • Vactor Manufacturing announced in February 2019 it will add 90 jobs at a $25 million expansion of its facility in Streator. • Pepsi MidAmerica cut the ribbon in May 2019 on a $2 million expansion of its facility in Marion which created 50 jobs. • Accenture announced in July 2019 it will add 600 highskilled jobs at its Chicago office by 2022.

BIG COMPANIES 37 Fortune 500 companies headquartered in the state, including: Walgreens Boeing State Farm Insurance Archer Daniels Midland Caterpillar Allstate Deere McDonald’s Sears Holdings Discover Financial Services

C-SUITE TESTIMONIALS “This is another significant investment in our Streator facility, as we look to add the necessary capacity in response to that growth potential. It also is a testament to the talented and educated workforce that we are fortunate to have in the Streator area.” —Jennifer Sherman, President and CEO, Federal Signal “Chicago is the Midwest’s largest city with a global and economic force that attracts a wealth of talent and international business…Salesforce is committed to continued growth in the region and supporting our thousands of Chicago-based customers and partners as they transform their businesses and connect with customers in new ways.” —Tyler Prince, Executive Vice President of Industries & Partners, Salesforce “Illinois was the right fit for this expansion due to the unrivaled workforce and strategic location…We are proud of our contributions to Illinois’ manufacturing legacy, and this next phase in our journey will only build upon our current successes within the North American market.” —Jon DeSouza, President and CEO, HARTING North America


2020 CEO GUIDE TO SITE SELEC TION

Indiana

NEW OPPORTUNITIES IN THE HOOSIER STATE

“As a state, we’re investing in innovation to further strengthen our entrepreneurial ecosystem and skilling up our workforce to ensure that this growing tech community will have access to a strong and sizeable talent pool for years to come.” —Gov. Eric J. Holcomb

TAXES

5.75% top corporate income tax rate

#10 on the Tax

Foundation’s State Business Tax Climate Index ranking

While manufacturing remains a strong driver in The Hoosier state, Indiana is striving to diversify its economy with a greater focus on innovation and tech. ActiveCampaign, eHealth and Zotec recently set up new operations in the state.

KEY INCENTIVES Headquarters Relocation Tax Credit: Offers a credit against the state tax liability for corporations that relocated their headquarters to the state. Hoosier Business Investment Tax Credit: Offers tax credits as a percent of eligible capital investment to support job creation, capital investment and to improve the standard of living for residents. Economic Development for a Growing Economy– Payroll Tax Credit: Offers a refundable corporate income tax credit calculated as a percentage of the expected increased tax withholds generated from new jobs creation. Phased in annually for up to 10 years. Venture Capital Investment Tax Credit: Offers tax credits to fast-growing Indiana companies to drive investment in early stage firms.

BIG DEALS • ActiveCampaign announced in February 2019 it will invest $10 million and more than 200 employees in its new office in Indianapolis. • Zotec announced in April 2019 it will invest $47 million on a new national headquarters facility in Carmel which plans to hire up to 300 employees by 2022. • Greenleaf Foods, SPC announced in April 2019 it will construct a $310 million manufacturing facility in Shelby County that will create up to 460 jobs. • Allison Transmission announced in June 2019 that it will invest more than $400 million in its business, including a new Vehicle Environmental Test facility in Indianapolis. The project is expected to create 300 jobs. • eHealth announced in July 2019 it will invest more than $10 million over the next three years to establish Indianapolis as its new Eastern U.S. Technology and Operations Headquarters (HQE) in Indianapolis, which is expected to employ up to 500 Hoosiers by the end of 2023.

BIG COMPANIES Eight Fortune 500 companies headquartered in state, including:

84% of students

Indiana Economic Development Corporation in.gov/osbe

25.3% of adults age 25+

Develop Indy/Indy Chamber indychamber.com/economic-development/developindy

Anthem Eli Lilly and Co. Cummins Steel Dynamics Zimmer Biomet Holdings Berry Global Group Simon Property Group Thor Industries

Greater Fort Wayne greaterfortwayneinc.com/economic-development

C-SUITE TESTIMONIALS

EDUCATION

graduated high school in 2016 have a bachelor’s degree or higher

UNEMPLOYMENT RATE 3.2%, less than the national average of 3.6% RIGHT TO WORK STATE

Yes

QUALITY OF LIFE

#36

POPULATION GROWTH

3.2% between 2010 and 2018

EDCs

Growth Alliance for Greater Evansville growthallianceevv.com

HIGHLIGHTED PROGRAM OR INITIATIVE The Indiana Regional Cities Initiative promotes strategic regional development plans that help transform Indiana communities into nationally-recognized destinations to live, work, and play. Projects currently underway and partially funded with matching funds include the Innovative Indiana Plan, the Road to One Million Plan and the Indiana’s Great Southwest plan.

“We are thrilled to be able to bring eHealth’s Eastern Headquarters and several hundred high-wage jobs to Indianapolis…As a Hoosier native, I know that this is a great place to do business and find the talent we need to grow to service our rapidly expanding customer base.” —Scott Flanders, CEO, eHealth “As we’ve grown so quickly, we knew the Indianapolis marketing technology ecosystem and its local talent would be a great place for us to continue our expansion.” —Jason VandeBoom, Founder and CEO, ActiveCampaign

2020 CEO GUIDE TO SITE SELECTION 33


2020 CEO GUIDE TO SITE SELEC TION

Iowa “Iowa is the best place in America to live, work and raise a family. With the entire country struggling to attract and train a quality workforce, Iowa has taken the lead in addressing this challenge holistically. This is Iowa will raise awareness to the numerous opportunities that exist to establish careers, raise families and have new experiences. There has never been a better time to tell our story and to encourage both businesses and people to make Iowa their home.” —Gov. Kim Reynolds

TAXES

12% top corporate income tax rate

#45 on the Tax

Foundation’s State Business Tax Climate Index ranking

MAKING A GOOD LIFE IN THE MIDWEST

BIG DEALS

The Hawkeye State is increasing initiatives to attract both visitors and new residents to the state by promoting the low cost of living and growing job opportunities. According to the U.S. Census Bureau, employment grew by 1.5% between March 2018 and March 2019, a greater rate than other cities in the Midwest. Companies to recently invest in the state include Facebook, Northern Tool & Equipment, Lely North America and Kreg Enterprises

• Kreg Enterprises announced in July 2018 it will create 20 jobs and invest $34 million in a new facility in Ankeny.

KEY INCENTIVES Economic Development Set-Aside (EDSA): Offers financial assistance as direct or forgivable loans of up to $1 million to projects that create manufacturing jobs, add value to Iowa resources or increase exports. High Quality Jobs (HQJ) program: Offers loans, tax credits, exemptions and other refunds to businesses that create high quality jobs. New Jobs Tax Credit: Offers a tax credit of up to $1,836 per new employee to participants in the New Jobs Training (260E) Program that expand their workforce. Research Activities Credit: Offers a refundable tax credit for research and development investments including wages, tangible property other than land, and 6.5% of expenses released to contract research. Iowa Innovation Accelerator Fund: Offers financing for companies that accelerate innovation in the state and create high-paying jobs.

EDCs

EDUCATION

Iowa Economic Development Authority iowaeconomicdevelopment.com

graduated high school in 2017

Iowa Area Development Group iadg.com

27.7% of adults age 25+

Greater Des Moines Partnership dsmpartnership.com

91% of students

have a bachelor’s degree or higher

UNEMPLOYMENT RATE

Cedar Rapids Metro Economic Alliance cedarrapids.org

• Lely North America announced in January 2019 it will construct a new North American headquarters in Pella. • Northern Tool & Equipment company announced in January 2019 it will build a $26 million distribution center and create 183 new jobs in Ankeny. • Readi-Fuels-Iowa, an LLC created by Applied Research Associates and C&N Biofuels, announced in February 2019 it will construct a $58 million production facility in Sioux County that will create 31 jobs. • Facebook announced in May 2019 a fifth data center building at its facility in Altoona. The $400 million project will create 100 jobs. • Sammons Financial Group announced in June 2019 it will build a $65 million office in West Des Moines that will create 125 jobs.

BIG COMPANIES Archer Daniels Midland MetalCraft Accumold Tyson Workiva Three Fortune 500 companies are headquartered in the state: Principal Financial Casey’s General Stores Rockwell Collins

C-SUITE TESTIMONIALS “Our vision is to create a collaborative and functional workspace for our teams now and in the future. West Des Moines is our home, and we’re excited to bring economic growth to our community while enriching our existing employees’ experience at their workplace.” —Esfand Dinshaw, Chairman and CEO, SFG

2.6%, less than the

national average of 3.6% RIGHT TO WORK STATE

Yes

QUALITY OF LIFE

#14

POPULATION GROWTH

3.6% increase between 2010 and 2018

34 2020 CEO GUIDE TO SITE SELECTION

HIGHLIGHTED PROGRAM OR INITIATIVE The This is Iowa campaign is striving to revitalize the state by encouraging people across the nation to visit, live and work in Iowa. Web, TV, print and social media ads promote the quality of life, low cost of living and growing economic opportunities in the state.

“It has been a decade since we started our first distribution center operations in Oelwein, and we are extremely pleased that we became part of this community.” —Bob Flicker, COO, East Penn Manufacturing Company


2020 CEO GUIDE TO SITE SELEC TION

Kansas “Economic development in Kansas needs to be modernized, and that means we need a new, thoughtful strategic plan to guide us forward.” —Gov. Laura Kelly

TAXES 7% top corporate income tax rate

#28 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION 87% of students graduated high school in 2017

32.3% of adults age 25+ have a bachelor’s degree or higher

UNEMPLOYMENT RATE

3.1%, less than the

national average of 3.6% RIGHT TO WORK STATE

SHINING IN THE SUNFLOWER STATE

BIG DEALS

Two years after the state’s tax-cutting measures failed to deliver the economic adrenaline they promised, the Sunflower State is starting to rebound. In October 2019, Gov. Laura Kelly announced the state’s first formal strategy in more than three decades to improve economic development. Called the “Framework for Growth,” the plan is expected to be released in March 2020 and will include benchmarking, recommendations and best practices, and implementation planning. Aerospace remains a strong area of growth in Wichita.

• Fidelity Bank announced in May 2019 it will invest $51 million to build a 10-story tower next to its existing headquarters in Wichita.

KEY INCENTIVES

BIG COMPANIES

Workforce Development Assistance: Offsets training costs on new technology or production activities through the Kansas Industrial Retraining (KIR) and Kansas Industrial Training (KIT) programs. Promoting Employment Across Kansas (PEAK): Offers ability to retain 95% of payroll tax withholding for several years for qualified companies. Machinery & Equipment Expensing Deduction and Property Tax Exemption: Offers an expense deduction for business machinery and equipment and a tax exemption for commercial and industrial machinery and equipment. High Performance Incentive Program (HPIP): Offers a 10% corporate income tax credit on qualified capital investments for companies that pay above-average wages.

EDCs Kansas Department of Commerce kansascommerce.gov

Yes

Greater Wichita Partnership greaterwichitapartnership.org

#22

QUALITY OF LIFE

Go Topeka gotopeka.com

POPULATION GROWTH

HIGHLIGHTED PROGRAM OR INITIATIVE

2010 and 2018

The Workforce Aligned with Industry Demand is an industry-driven program that aligns industry opportunities and demands with workforce training and education. Workforce AID supports and expands recruiting efforts, develops company-focused training programs, finds appropriate training providers and ensures participants receive industry-recognized training.

2% increase between

• Mars Wrigley Confectionary announced in May 2019 a $30 million upgrade and expansion in its facility in Topeka. • Design, engineering and manufacturing innovator Mechanized Concepts opened a new facility in Russell in July 2019.

Two Fortune 500 companies headquartered in state: Spirit AeroSystems Holdings Seaboard Other large companies include: Cerner YRC Worldwide General Motors Cessna Aircraft Learjet Sprint Lansing Trade Group

C-SUITE TESTIMONIALS “We have had a tremendous experience working with the State of Kansas and appreciate all the time and resources they've dedicated to growing jobs and businesses here in the region.” —Mike Jansen, President and CEO, Faith Technologies “We had five other states, five other locations that were pursuing us…. When we came here, we knew right away that the people here are different, that they cared about their community.” —Matt College, Founder and CEO, Mechanized Concepts “The new Kansas-based distribution center will be more centrally located in the United States. Upon completion, the company expects to be able to reach customers faster, reduce transportation costs and improve service levels.” —Andrew Callahan, President and CEO, Hostess Brands

2020 CEO GUIDE TO SITE SELECTION 35


2020 CEO GUIDE TO SITE SELEC TION

Kentucky “I ran on kitchen table issues, and I will govern focused on those same challenges of good jobs, healthcare for every Kentuckian, protecting and funding our pensions, and always supporting public education. I believe that we have a brighter tomorrow to make Kentucky the agritech leader of this country. We’re going to build our advanced manufacturing sector and invest in workforce training. That’s how we’re going to create good jobs, all over Kentucky, in every single community.” —Gov. Andy Beshear

TAXES 5% top corporate income tax rate

#23 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

90% of students

A MOUNTAIN OF MANUFACTURING

BIG DEALS

Manufacturers now account for more than 18% of Kentucky’s total output and employ 13% of the workforce, with more than 250,000 workers in the sector earning average wages of $70,477, according to U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The state is trying to continue that trajectory of growth with further investments in skills education and training. Nucor, Beam Suntory, Phoenix Paper and Novelis have all announced expansions here in the past year.

• Aluminum supplier Novelis announced in January 2018 it will add 125 jobs and construct a $305 million processing plant in Guthrie.

KEY INCENTIVES Kentucky Business Investment (KBI) Program: Offers income tax credits and wage assessments to manufacturing operations, headquarters, non-retail service or technology companies creating 10 or more jobs and investing at least $100,000. SBIR-STTR Marching Funds Program: Matches, on a competitive basis, up to $150,000 for Phase 1 and up to $500,000 for Phase 2 federal SBIR and STTR awards. Kentucky Small Business Credit Initiative (KSBCI): Offers credit enhancement programs to help lenders finance credit-worthy small business that would typically fall just outside of normal lending guidelines. Kentucky Enterprise Initiative Act (KEIA): Offers a refund of Kentucky sales and use tax for building materials, equipment, R&D equipment, data processing equipment and a variety of other products for eligible businesses. Bluegrass State Skills Corporation Skills Training Investment Credit: Offers grants and or tax credits to businesses that sponsors skills training programs for their employees.

EDCS

graduated high school in 2017

Kentucky Cabinet for Economic Development thinkkentucky.com

23.2% of adults age 25+

Commerce Lexington Economic Development locateinlexington.com

have a bachelor’s degree or higher

UNEMPLOYMENT RATE

Louisville Forward louisvilleky.gov/government/louisville-forward

4.3%, greater than the

national average of 3.6%

HIGHLIGHTED PROGRAM OR INITIATIVE

RIGHT TO WORK STATE

The new $200 million Work Ready Skills Initiative, one of Kentucky’s signature programs, uses focused funding to back local partnerships of employers, educational institutions, and other community stakeholders. The awarded projects are expected to provide training to more than 30,000 Kentuckians annually in advanced manufacturing, healthcare, IT, construction trades and logistics.

Yes

QUALITY OF LIFE

#40

POPULATION GROWTH

3.0% increase between 2010 and 2018

36 2020 CEO GUIDE TO SITE SELECTION

• Nucor announced in September 2018 a $650 million investment and 70 new jobs at its existing mill Ghent. • Nucor announced in March 2019 it will add 400 jobs and construct a $1.36 billion steel manufacturing mill in Brandenburg. • Phoenix Paper LLC announced in August 2019 plans to invest $200 million in a paper recycling facility in Wickliffe. • Beam Suntory is investing $1 billion over the coming decade in multiple facilities across the state to increase production capacity.

BIG COMPANIES Amazon Atlas Air Worldwide Holdings Global Win Wickliffe TopGolf Faneuil CCBCC Operations General Motors Two Fortune 500 company headquarters in state: Humana Yum! Brands

C-SUITE TESTIMONIALS “Kentucky has established itself as a leading global logistics center, and we are thrilled to expand our operations in this thriving area. Our new operations center in Erlanger will enable us to continue to deliver high-quality services to our customers and support their growing global networks.” —William J. Flynn, CEO, Atlas Air Worldwide “UPS is grateful for the strong relationship we have built with the city of Louisville and the state of Kentucky. We are proud to be a partner in the economic growth of the region.” —Joe Boyle, President, UPS Ohio Valley District “Anixter is excited to have Lexington as the home of our new East Coast sales hub for our Network & Security Solutions segment. As a company that is constantly adapting to meet the changing needs of our customers, we found the same spirit of investment and growth here in Lexington.” —Bill Galvin, President and CEO, Anixter


2020 CEO GUIDE TO SITE SELEC TION

Louisiana “We are continuing to attract new business and industry, while retaining and expanding our existing businesses and implementing programs in Louisiana to further strengthen our workforce.” —Gov. John Bel Edwards

TAXES

8% top corporate income tax rate

#44 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION 78% of students graduated high school in 2017

FAST GROWTH IN THE BAYOU STATE

BIG DEALS

Recent data from the U.S. Bureau of Economic Analysis revealed that the Bayou State has the 10th fastest-growing economy in the United States. Louisiana’s GDP reached a record high of $256 billion in the first quarter of 2019 with an annual growth rate of 3.8%. Non-durable goods manufacturing was the main contributor to growth, contributing to more than 2%. Kopter Group, Shintech and Formosa Petrochemical are just a few of the companies to invest here in the past year.

• LaSalle Lumber Company announced in February 2018 it will create more than 100 jobs and build a $115 million mill in Urania.

KEY INCENTIVES LED FastStart: Nationally recognized workforce training program that offers customized employee recruiting, screening and training solutions at no cost to eligible companies. Angel Investor Tax Credit: Offers up to a 25% tax credit for individual investors who invest in early-stage, wealth-creating businesses that seek startup and expansion capital.

• Shintech Louisiana announced July 2018 it will expand its existing facility and build a second one in Plaquemine. The $1.49 billion investment will create 120 new jobs. • SuperATV announced in February 2019 it will create 75 jobs at a $4.3 million manufacturing and distribution center to be built in Shreveport. • Swiss helicopter manufacturer Kopter Group AG announced in March 2019 it will create 120 jobs to assemble its SH90 helicopters in Lafayette. • FG LA, LLC, a subsidiary for Formosa Petrochemical announced in April 2019 a $9.4 billion petrochemical complex in St. James Parish that will create 1,200 jobs.

BIG COMPANIES

Industrial Tax Exemption: Offers a property tax abatement for up to 10 years on a manufacturers’ eligible new capital expenditures.

ExxonMobil Dow Chemical Westlake Chemical

Quality Jobs: Offers up to a 6% rebate on annual payroll expenses for up to 10 years and a tiered state sales/ use tax rebate on capital expenses, or a 1.5% investment tax credit, for qualified jobs.

Two Fortune 500 companies are headquartered in the state: Entergy CenturyLink

have a bachelor’s degree or higher

EDCS

C-SUITE TESTIMONIALS

Louisiana Economic Development opportunitylouisiana.com

UNEMPLOYMENT RATE 4.5%, greater than the national average of 3.6%

Baton Rouge Area Chamber brac.org/economic-development

“We are extremely grateful to Louisiana state and parish officials and our neighbors, whose strong support and understanding has enabled Shintech’s continued growth and success in Louisiana.” —Yasuhiko Saitoh, President and Director, Shin-Etsu

23.4% of adults age 25+

RIGHT TO WORK STATE

Yes

QUALITY OF LIFE

#50

POPULATION GROWTH

2.8% increase between 2010 and 2018

Greater New Orleans Regional Economic Development gnoinc.org

HIGHLIGHTED PROGRAM OR INITIATIVE LED FastStart is focusing more on technology-based training with a greater priority on increasing the number of students in computer science, computer information systems, software engineering, cyber engineering and STEM-related advanced manufacturing. In the past decade, the state has invested more than $286 million in higher education initiatives to advance curricula and training in software, digital, IT services, advanced manufacturing and STEM-related disciplines.

“Kopter Group chose the Lafayette site for several reasons. First, because of Louisiana, which is a rapidly growing and attractive region, already hosting several key helicopter operators and many industrial players. Second, for the easy access to a qualified workforce and high-quality educational environment. And third, for the facility itself—which meets the highest standards and allows almost instant operations.” —Andreas Lowenstein, CEO, Kopter Group AG “SuperATV is excited about expanding into the ‘Sportsman’s Paradise.’ A second location in Louisiana will allow SuperATV to establish the premier retail and shipping location so that we have the opportunity to bring our products to our customer as fast as possible.” —Harold Hunt, Founder and President, SuperATV

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2020 CEO GUIDE TO SITE SELEC TION

Maine “Offshore wind represents a great opportunity for Maine’s energy future and our economy. The development of offshore wind technology in Maine will create jobs, help us meet our energy needs with our own resources, and reduce carbon emissions in the process.” —Gov. Janet Mills

TAXES

8.93% top corporate income tax rate

#30 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

87% of students

graduated high school in 2017

30.3% of adults age 25+

THE WINDS OF ECONOMIC DEVELOPMENT

BIG DEALS

The Pine Tree State is attempting to blow in some new economic opportunities with new initiatives to support the wind energy sector. Gov. Janet Mills issued an executive order in February 2019 allowing permits for land-based wind projects to be issued again. Mills is calling for a goal of 100% renewable energy in the state by 2050. Aquaculture is also growing in the state, with more than 200 farms now operating along Maine’s coast.

• Bristol Seafood, in partnership with the Maine Technology Institute, announced a $5 million investment and 40 new jobs in its Portland processing facility in April 2018.

KEY INCENTIVES Major Business Headquarters Expansion Program: Offers a tax credit equal to 2% of the qualified investment for a period of up to 20 years for businesses that locate a major headquarters in the state and create high-quality jobs. Technology Tax Credits: Offers tax credits and tax exemptions for everything from electricity cost to equipment purchases and other R&D expenses for companies involved in manufacturing and certain research-driven activities. Small Enterprise Growth Fund: Offers initial matching investments from $150,000 to $300,000 to small businesses that demonstrate the potential for high growth and public benefit. Maine Technology Institute (MTI): A non-profit that offers funding for private companies and research labs to promote R&D and assist innovative companies to in getting products to market faster.

EDCS

have a bachelor’s degree or higher

Maine Department of Economic & Community Development maine.gov/decd

UNEMPLOYMENT RATE

Maine & Co. maineco.org

2.8%, less than the

national average of 3.6% QUALITY OF LIFE

#32

POPULATION GROWTH

0.8% increase between 2010 and 2018

38 2020 CEO GUIDE TO SITE SELECTION

Greater Portland Economic Development Corporation. gpedc.org Choose Bangor, Maine choosebangor.com

HIGHLIGHTED PROGRAM OR INITIATIVE Gov. Mills announced in May 2019 a strategic statewide economic development plan to diversify Maine’s economy over the next 10 years. The initiative will be led by the Department of Economic and Community Development and will focus on strategies to enhance economic growth in rural Maine and address the state’s workforce challenges. The goal is to make Maine a national leader for a forward-looking approach to diverse and sustainable economic development by 2040.

• Sappi North America completed a $200 million rebuilding of a paper mill in Skowhegan in September 2018. • A New York venture capital firm announced in April 2019 a $100 million investment in Portland-based Tilson Technology Management. It is the largest investment in a Maine company in recent years. • Legislation was signed in June 2019 to support Maine Aqua Venus, the most advanced floating offshore wind project in the U.S. Investors are soon to be announced. • Verso announced in August 2019 a $120 million investment in three pulp and paper mills, including the Androscoggin Mill in Jay.

BIG COMPANIES L.L. Bean TD Bank, N.A. Unum Provident Pratt & Whitney Aircraft Group Athenahealth Cianbro Bath Iron Works Corporation

C-SUITE TESTIMONIALS “This is an exciting time for Sappi North America…We are committed to bringing high-quality, innovative and sustainable products to the market that meet a variety of packaging needs.” —Deece Hannigan, Vice President of Packaging and Specialties Business, Sappi North America “The Androscoggin Mill and its No. 4 paper machine have a rich history of manufacturing specialty products…these investments advance Verso's strategy to reposition 100 percent of the Androscoggin Mill's production to serve specialty paper and packaging markets.” —Mike Weinhold, President of Graphic Papers, Verso “We are proud to partner with MTI. Through this grant and our substantial investment, we will bring seafood products made to our uncompromising Maine standards to more consumers, create quality jobs for Mainers and bring new processing technologies and capabilities to the local waterfront.” —Peter Handy, President and CEO, Bristol


H

2020 CEO GUIDE TO SITE SELEC TION

Maryland

PROSPEROUS TIMES IN THE FREE STATE

“We cleared away the table of regulatory undergrowth and paved the way for historic economic growth and record job creation. More businesses are open and more people are working than ever before in the history of our state, and we have had one of the best economic turnarounds in America.” —Gov. Larry Hogan

TAXES

8.25% top corporate income tax rate

#40 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

88% of students

graduated high school in 2017

39% of adults ages 25+

have a bachelor’s degree or higher UNEMPLOYMENT RATE 3.6%, equal to the national average of 3.6%

A July 2019 report by USA Today ranked the Free State one of the top state economies in the nation, based on its five-year GDP annual growth rate, unemployment rate and percentage of adults with at least a bachelor’s degree. Under Armour is currently constructing its new headquarters at Port Covington while Volvo, Amazon, and Smithfield Foods have all invested in new projects in the state in the past year.

KEY INCENTIVES Advantage Maryland: Offers a variety of funds, grants, loans and investments to support economic development initiatives for business attraction and retention, infrastructure support and brownfield development. Job Creation Tax Credit: Offers an income tax credit of $3,000 per new job to a business that creates at least 60 full-time jobs. Credit increases to $5,000 per job for a minimum of 25 jobs if the business locates in a revitalization area. Small, Minority and Women-Owned Business Account–Video Lottery Terminal Fund: Offers loans from the proceeds of video lottery terminals to assist small, minority and women-owned businesses in targeted areas. Partnership for Workforce Quality: Offers matching training grants and support services to improve the competitive position of small and mid-sized manufacturing and technology companies. ExportMD Program: Offers up to $5,000 in reimbursement for expenses associated with an international marketing project that promotes Maryland’s small and mid-sized businesses.

EDCs Maryland Department of Commerce commerce.maryland.gov

QUALITY OF LIFE

Economic Alliance of Greater Baltimore greaterbaltimore.org

POPULATION GROWTH

Montgomery County Economic Development Corporation thinkmoco.com/communities/silver-spring

#6

4.7% increase between 2010 and 2018

Anne Arundel Economic Development Corporation aaedc.org

HIGHLIGHTED PROGRAM OR INITIATIVE Maryland is one of the first states to expand the federal Opportunity Zones program by passing additional incentives that can be “stacked” on top of the federal incentives. Businesses can receive a 10-year tax credit for each job created by a company that locates or expands in a Maryland Opportunity Zone. These companies will

also be eligible for an additional $6 million in tax credits, have 100% of their state property taxes exempted and have all business recording, filing or special fees waived.

BIG DEALS • Amazon.com hosted the grand opening of its fourth Maryland Facility in August 2018. The $225 million project employs more than 2,000 people. • Cybrary announced plans in November 2018 to create 200 jobs and open a 25,000-square-foot facility in Prince George’s County. • Floor & Décor announced in January 2019 it will create 150 jobs at a new 1.5 million-square-foot distribution center in Baltimore County. • Smithfield Foods announced in April 2019 it will create 240 jobs at a new 420,000-square-foot distribution center in Cecil County. • Volvo Group North America announced in July 2019 a $43 million expansion and 85 new jobs at its powertrain plant in Hagerstown.

BIG COMPANIES 12 Fortune 500 companies headquartered here: Lockheed Martin Marriott International Discovery Communications Host Hotels & Resorts McCormick & Company T. Rowe Price Under Armour Laureate Education Colfax Corporation Legg Mason Ciena Corporation Sinclair Broadcast Group

C-SUITE TESTIMONIALS “We are proud to become part of the business community in Maryland, a location that provides strategic advantages for our business and improves our ability to provide high-quality product to our customers and consumers.” —Kenneth M. Sullivan, President and CEO, Smithfield Foods “We continue to find [innovation-minded people] right here in Maryland and we are proud to expand our operations in a place that we’ve called home for nearly 110 years. The state of Maryland and Baltimore County have been strong partners throughout this expansion process, and are working hard to help our innovative, high-performing company grow in Maryland.” —Jeff Ansell, President of Global Tools and Storage, Stanley Black & Decker

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2020 CEO GUIDE TO SITE SELEC TION

Massachusetts “A big part of our success as a Commonwealth has been this ability to retain the strength and vitality and the vibrancy of local communities at the same time we continue to grow all these terrific intellectual assets that make us unique in many cases around the world.” —Gov. Charlie Baker

TAXES

8% top corporate income tax rate

#29 on the Tax

BOOMING IN THE BAY STATE

BIG DEALS

The Bay State retains one of the top-performing economies in the country and is expanding its life sciences sector. Danish pharmaceutical company Novo Nordisk and Japanese drug maker Takeda have both announced headquarters here in the past year, and Reebok recently opened its new headquarters in the Seaport District of Boston.

• Alexion Pharmaceuticals relocated its headquarters from New Haven, Connecticut to Boston in the summer of 2018.

KEY INCENTIVES Massachusetts Life Science Center (MLSC): Offers 10 different tax incentives valued at up to $15,000 for each net new job created in a calendar year and maintained for the following four years. Economic Development Incentive Program (EDIP): Offers state and local tax incentives in exchange for fulltime jobs creation, job retention and private investment commitments. Research & Development Tax Credit: Offers a 10% tax credit for R&D activities with an increase in credits for collaboration with a local college or university.

Foundation’s State Business Tax Climate Index ranking

Manufacturers Investment Tax Credit: Offers a 3% investment tax credit towards any state tax obligation for qualified equipment and facility improvements.

EDUCATION 88% of students graduated high school in 2017

Workforce Training Fund Grant: Offers cash grants of up to $250,000 over a two-year period to train new employees or to upgrade the skills of existing employees. Has no income requirements but requires a company match that can be met by any “in-kind” costs incurred in providing the training.

42.1% of adults ages 25+ have a bachelor’s degree or higher

EDCs

UNEMPLOYMENT RATE

MassEcon massecon.com

national average of 3.6%

Boston Office of Economic Development boston.gov/departments/economic-development

2.9%, less than the QUALITY OF LIFE

#8

Worcester Regional Chamber of Commerce worcesterchamber.org

POPULATION GROWTH

DevelopSpringfield developspringfield.com

5.4% increase between 2010 and 2018

HIGHLIGHTED PROGRAM OR INITIATIVE The Massachusetts Workforce Skills Cabinet aligns the executive offices of education, labor and workforce development, and housing and economic development towards a comprehensive growth agenda. The cabinet creates and implements a strategy to meet the needs of employers in the state and to date has awarded more than $24 million in grants to 63 institutions, improving programs that impact more than 1,700 students per year.

40 2020 CEO GUIDE TO SITE SELECTION

• Online retailer Wayfair announced in December 2018 it will create 300 jobs and open a sales service center in Pittsfield. • Insulet Corporation opened in May 2019 a $200 million global headquarters and manufacturing facility in Acton. • Wynn Resorts opened in June 2019, the $2.6 billion Encore Boston Harbor in Everett with 5,000 jobs.

BIG COMPANIES 16 Fortune 500 companies headquartered here, including: General Electric Liberty Mutual Insurance Group Massachusetts Mutual Life Insurance TJX Raytheon Thermo Fisher Scientific Biogen BJ’s Wholesale Club State Street Global Partners Wayfair

C-SUITE TESTIMONIAL “At Wayfair, we really believe that what makes our company great is the people, and obviously where you’re located, helps you attract great people.” —Niraj Shah, Co-Founder and CEO, Wayfair “We’re based in a great location in Chelmsford, close to other tech firms, convenient to major highways, and supported by strong local government. We’re proud to be out front in advancing Massachusetts’ reputation as an innovative, world-class robotics hub together with universities, research centers, and fellow robot companies who call the Commonwealth home.” —Sean Bielat, CEO, Endeavor Robotics “When talking about life science, you automatically talk about the Greater Boston area. This is where the future of science is being invented, and that is why we are here.” —Stefan Oschmann, Chairman of the Executive Board and CEO, Merck KGaA, Darmstadt, Germany


2020 CEO GUIDE TO SITE SELEC TION

Michigan

STRONG GROWTH IN THE WOLVERINE STATE

“Michigan’s strong economy and talented workforce have made our state a desirable location for new investment from companies around the world…. Michigan is home to one of the most intelligent, savvy and resilient workforces in the nation and we are here to deliver the message that Michigan is the premier location for global companies looking to expand and create jobs in the United States.” —Gov. Gretchen Whitmer

TAXES

6% top corporate

Michigan is riding a wave of nearly a decade of uninterrupted job growth. Despite unflattering headlines about Detroit and the demise of manufacturing, the state remains the global epicenter of the automotive industry and is serving as a home for the future of mobility innovation. Fiat Chrysler is investing $4.5 billion to expand production in the state, and Nexient, KLA Corporation and Arauco North America have all announced groundbreakings here in the past year.

KEY INCENTIVES Michigan Business Development Program: Offers cash grants, loans or other assistance to businesses that make qualified investments or create jobs. Good Jobs for Michigan Program: Offers state withholding tax capture revenues of up to 50% or 100% for 5 to 10 years to businesses that create certified new jobs in the state. Jobs Ready Michigan Program: Offers awards for activities related to recruitment and job training for companies that are expanding or relocating to Michigan.

#13 on the Tax

Michigan Community Revitalization Program: Offers performance-based grants and loans to businesses that promote community revitalization and accelerate private investment in historic properties or that reduce blight or protect natural resources.

EDUCATION

EDCs

income tax rate

Foundation’s State Business Tax Climate Index ranking

80% of students

graduated high school in 2017

28.1% of adults age 25+ have a bachelor’s degree or higher

UNEMPLOYMENT RATE

4.1%, greater than

Michigan Economic Development Corporation michiganbusiness.org Detroit Economic Growth Corporation degc.org City of Grand Rapids Economic Development grandrapidsmi.gov/Government/Departments/ Economic-Development

national average of 3.6%

The Right Place rightplace.org/index

RIGHT TO WORK STATE

Lansing Economic Area Partnership purelansing.com/About-LEAP

QUALITY OF LIFE

HIGHLIGHTED PROGRAM OR INITIATIVE

POPULATION GROWTH 1.1% increase between 2010 and 2018

Gov. Whitmer recently signed an executive order to create the new Department of Labor and Economic Opportunity, which will streamline and better coordinate efforts in state government. Programs like the MI Opportunity Scholarship and the MI Reconnect program will help the state both anticipate and fill the skills gap that exists in the talent pipeline.

Yes

#33

BIG DEALS • Nexient announced in March 2018 it will expand its footprint in Ann Arbor with a $4.17 million investment and the creation of more than 300 high-skill, high-wage jobs. • KLA Corporation announced in October 2018 it will establish its newest R&D center in Ann Arbor. The $151 million project is expected to create 600 jobs. • Waupaca Foundry announced in December 2018 it will invest up to $4.3 million in a new facility and create 61 high-paying jobs in Ironwood. • Fiat Chrysler Automobiles announced in February 2019 it will invest $4.5 billion in the state to grow core brands, electrify Jeep vehicles and build and expand plants. The investment will create nearly 6,500 jobs. • Arauco North America recently create 250 jobs at a $326 million particleboard factory in Grayling.

BIG COMPANIES 16 Fortune 500 companies headquartered in the state, including: Ford Motor Company General Motors Penske Automotive Group Lear Whirlpool DTE Energy Stryker Kellogg Ally Financial

C-SUITE TESTIMONIALS “Where I’ve seen the biggest change in our state, is the cohesiveness of the business community. No matter, whether you’re headquartered in Grand Rapids or Detroit or Traverse City or Marquette. We embrace now this as a state, not as different regions. Sort of the ‘One Michigan’ thought. There’s great opportunity in any part of the state.” —Dan Leopp, CEO, Blue Cross Blue Shield “All of the innovation that’s occurring around robotics, AI, it’s happening here in Michigan… Michigan is a magnet for innovators and dreamers.” —Patti Poppe, President and CEO, Consumers Energy “The startup culture in Michigan is, I think, like no other. Everyone here is supportive. Everyone wants to help you. Everyone wants to succeed. And so, it’s not about me, it’s about us. And the startup culture here allows people to ask questions and get answers—unlike other large cities where you have to hire large consultants.” —Daryn Kuipers, CEO, Boxed Water

2020 CEO GUIDE TO SITE SELECTION 41


2020 CEO GUIDE TO SITE SELEC TION

Minnesota “Minnesota’s success is not by chance. Our investments in education, healthcare and community prosperity make Minnesota a great place to live, work, and raise a family— but we can still do better. I’m committed to working together to make life even better for all Minnesotans and continuing to invest in the things that make Minnesota one of the best states in the country.” —Gov. Tim Walz

TAXES

9.8% top corporate income tax rate

#43 on the Tax

Foundation’s State Business Tax Climate Index ranking

THRIVING IN THE NORTH

BIG DEALS

The Land of 1,000 Lakes continues to attract Fortune 500 organizations and is now home to 17 Fortune 500 headquarters. Companies continue to expand in the state for its quality of life and skilled and educated workforce. Recent investments and expansion have included Dakin Applied Americas, Uponor North America, Upsher-Smith Laboratories, Northrop Grumman and Renewal by Anderson.

• Daikin Applied Americas announced in September 2018 a $40 million expansion and 900 new jobs at its operations in Faribault.

KEY INCENTIVES Job Creation Fund: Offers financial incentives to new and expanding businesses that meet certain job creation and capital investment requirements. Minnesota Investment Fund: Offers financing to help add new workers and retain high quality jobs on a statewide basis with a focus on industrial, manufacturing, and technology-related industries. Greater Minnesota Business Development Infrastructure Grant Program: Helps stimulate economic development and create nw jobs through investments in public infrastructure. Offers grants of up to 50% of the capital costs of the infrastructure necessary to expand or retain jobs in the area. Redevelopment Grant Program: Offers funds to pay up to half of the redevelopment costs to put commercial sites or land back to productive use. Grants pay up to half of the redevelopment costs with a 50% local match for qualifying sites.

EDUCATION

83% of students

graduated high school in 2017

EDCs

34.8% of adults age 25+

Minnesota Department of Employment and Economic Development mn.gov/deed

have a bachelor’s degree or higher

UNEMPLOYMENT RATE

Minneapolis St. Paul Regional Economic Development Partnership greatermsp.org

3.2%, less than the

national average of 3.6%

Rochester Area Economic Development www.raedi.com

QUALITY OF LIFE

Duluth Economic Development Authority dulutheda.org

POPULATION GROWTH

HIGHLIGHTED PROGRAM OR INITIATIVE

2010 and 2018

Launch Minnesota supports a series of initiatives designed to accelerate the growth of high technology companies in the state. It is designed to lower the risk required to fund, start or grow businesses in the state and will bring all relevant initiatives together under a single office.

#3

5.8% increase between

42 2020 CEO GUIDE TO SITE SELECTION

• Uponor North America opened in May 2019 a $32 million manufacturing facility with 140 jobs in Hutchinson. • Northrop Grumman announced in May 2019 an expansion and 60 new jobs at its facility in Plymouth. • Renewal by Anderson broke ground in July 2019 on a $35 million expansion and added 125 jobs at their manufacturing facility in Cottage Grove. • Upsher-Smith Laboratories is expanding operations at its Maple Grove campus with completion slated for late 2020.

BIG COMPANIES 17 Fortune 500 companies headquartered in the state: UnitedHealth Group Target Best Buy 3M CHS U.S. Bancorp C.H. Robinson General Mills SuperValu Land O’Lakes Ecolab Ameriprise Financial

C-SUITE TESTIMONIALS “We appreciate the cooperation and assistance of the civic leaders in St. Paul and Minnesota to help make this project happen.” —Mike Schwartz, CEO, Daikin Applied “The expansion incentive funds through the state were differentiators for Uponor’s recent growth and ability to create jobs in both Apple Valley and Hutchinson. If it weren’t for these state resources, we may have considered expanding in another state or country.” —Bill Gray, President, Uponor North America


2020 CEO GUIDE TO SITE SELEC TION

Mississippi

MOVING UP IN THE MAGNOLIA STATE

“We will move Mississippi up the charts. We will make investments and we will get results.” —Gov. Tate Reeves

TAXES 5% top corporate income tax rate

#31 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

Mississippi’s growth rate may be low by national standards, but it’s on the rise, and GDP growth hit a 10-year high in 2018. New developments such as the Continental Tire factory in Clinton and growth in the aerospace industry are fueling new promise. Toyota, Amazon and VT Halter Marine have recently announced projects here.

KEY INCENTIVES Development Infrastructure Grant Program: Offers grants to municipalities and counties to finance public infrastructure projects that promote economic growth throughout the state. Mississippi Data Center Incentives: Offers a sales tax exemption for all computing equipment and software used by companies certified as data centers by the Mississippi Development Authority. Capital Improvements Revolving Loan: Offers loans to counties or municipalities to finance public infrastructure improvements that support business expansion or location.

21.3% of adults age 25+

Advantage Jobs Program: Offers a rebate as a percentage of Mississippi payroll to qualified employers for a period of up to 10 years for businesses that promote significant expansion of the economy through job creation.

UNEMPLOYMENT RATE

Mississippi Aerospace Initiative Incentives Program: Offers corporate tax incentives to companies that manufacturer or assemble components for the aerospace industry.

83% of students

graduated high school in 2017 have a bachelor’s degree or higher

5.5%, greater than the

national average of 3.6% RIGHT TO WORK STATE

EDCs

Yes

Mississippi Development Authority mississippi.org

QUALITY OF LIFE

Greater Jackson Alliance greaterjacksonms.com

#48

POPULATION GROWTH 0.6% increase between 2010 and 2018

Hattiesburg Area Development Partnership theadp.com

HIGHLIGHTED PROGRAM OR INITIATIVE The Site Development Grant Program offers grants to assist with preparing site-ready locations to attract new industry and private capital investments to the state. The program offers Ready Sites and Premiere Sites, offering up to $50,000 and $250,000 of funding respectively.

BIG DEALS • SYNNEX announced in February 2018 a $20 million investment and the creation of more than 600 jobs over the next five years in Northwest Mississippi.

• Toyota Mississippi announced in April 2018 it will create 400 jobs at a $170 million in an expansion at its plant in Blue Springs. • Amazon announced in December 2018 it will create 850 jobs at a new fulfillment center to be constructed in Marshall County. • Shipbuilder VT Halter Marine announced in May 2019 it will invest $37.5 million and create 900 jobs over the next five years at an expansion in Pascagoula. • Relativity announced in June 2019 it will expand its production at NASA’s Stennis Space Center in Hancock County. The $59 million project will create 190 jobs. • Medline announced in August 2019 it will invest $46 million and create 450 jobs at a new distribution operations in North Mississippi.

BIG COMPANIES Corelle Entergy KOHLER Engines VT Halter Marine SYNNEX Toyota Unified Brands Williams-Sonoma Amazon

C-SUITE TESTIMONIALS “We are excited to partner with the Mississippi Development Authority to bring our patented 3D printing rocket platform to Hancock County. We look forward to working together to bring more innovation, economic development and job growth to the Gulf Coast and progressing American space leadership.” —Jordan Noone, Co-founder and CTO, Relativity “We are looking forward to being an active part of the Southaven community. It’s an ideal location for a distribution hub of our larger Mid-South distribution territory and enables us to expand our presence as a local employer.” —Dmitry Dukhan, Vice President of Real Estate Operations, Medline “This was a very competitive selection process. Our design package, the local workforce and facilities in Pascagoula set VT Halter Maine apart from our competitors and made this win possible. We have received tireless support from the Mississippi Congressional delegation, [former] Governor Bryant and local leaders in Jackson County throughout this process.” —Ron Baczkowski, President and CEO, VT Halter Marine

2020 CEO GUIDE TO SITE SELECTION 43


2020 CEO GUIDE TO SITE SELEC TION

Missouri “Foreign businesses with direct investment in Missouri have the same skilled workforce and accessible infrastructure needs as our Missouri business owners. This year’s legislative achievements related to these issues will help companies, Missouri or foreign owned, continue to expand and invest in our state.” —Gov. Mike Parson

TAXES

4% top corporate income tax rate

MOVING UP IN THE MIDWEST

BIG DEALS

Manufacturing and agriculture are driving the economy of the Show Me State with notable expansions and groundbreakings in the past year. Amazon is currently constructing a fulfillment center and 1,500 new jobs in the city of St. Peters, and Quaker Window Products announced in October 2018 a $65 million investment over the next 10 years to expand their operations in Eldon. Square, Ford Motor Company, Bunge, Bayer, and Briggs & Stratton have also announced recent investments.

• Amazon announced in March 2018 that it will build a $240 million fulfillment center and hire 1,500 workers in St. Peters.

KEY INCENTIVES Missouri Works: Offers access to capital through withholdings or tax credits to embark on facility expansions and create jobs.

• Square Inc. announced in March 2018 it will double its footprint in St. Louis and create an additional 300 jobs. • Ford Motor company announced in November 2018 267 new jobs and a $111 million expansion of its assembly plant in Liberty. • Bayer’s North American Crop Sciences Division announced in July 2019 it will invest $164 million and locate 500 new jobs paying an average wage of $110,000 per year in Creve Coeur. • Bunge announced in August 2019 it will relocate its headquarters from New York to St. Louis.

Missouri One Start: A new tool to help businesses recruit, onboard, and train large numbers of job applicants during major expansions through customized training solutions.

• Briggs & Stratton announced in August 2019, more than 130 new jobs and an expansion of its facility in Poplar Bluff.

Missouri Works: Automotive: Helps retain automotive jobs by granting up to $5 million in annual tax credits to automotive manufacturers that invest $500 million or more in plant upgrades.

BIG COMPANIES 10 Fortune 500 companies headquartered in the state:

Foundation’s State Business Tax Climate Index ranking

BUILD Program: Offers financial incentives, including low interest loans, for the location or expansion of large business projects through the issuance of taxexempt revenue bonds.

EDUCATION

Missouri Works: Deal Closing Fund: A negotiating tool to close deals by granting tax credits up front during a business expansion, rather than over a multi-year period.

Centene Corporation Emerson Electric Reinsurance Group of America O’Reilly Automotive Jones Financial Graybar Electric Olin Ameren Post Holdings Peabody Energy

EDCs

C-SUITE TESTIMONIALS

Missouri Department of Economic Development ded.mo.gov

“Square is proud to be from St. Louis and thrilled to expand our presence here, where we’ve exceeded our growth expectations thanks to the wealth of local talent.” –Jim McKelvey, Co-founder, Square

#14 on the Tax

88% of students

graduated high school in 2017

28.2% of adults age 25+ have a bachelor’s degree or higher

UNEMPLOYMENT RATE

3.1% equal to the

national average of 3.6% QUALITY OF LIFE

#28

POPULATION GROWTH 2.3% increase between 2010 and 2018

Missouri Partnership missouripartnership.com Economic Development Corporation of Kansas City edckc.com St. Louis Economic Development Partnership stlpartnership.com

HIGHLIGHTED PROGRAM OR INITIATIVE Senate Bill 68, which was signed into law in July 2019, includes four key pieces of workforce and economic development legislation designed to meet employer needs.

44 2020 CEO GUIDE TO SITE SELECTION

“Missouri is perfectly positioned at the intersection of the east-west and north-south shipping corridors. We can ship products anywhere in the U.S. in a couple of days and eliminate a lot of waste in rent and taxes. This strategic location and cost savings will allow us to innovate, invest in our people and increase our competitiveness in the marketplace.” –Dan Foust, BH North America “Strategically positioning this micro-mill in Sedalia will give us a sustained cost advantage over other domestic steel producers supplying rebar from outside the region.” –John Ferriola, CEO, Nucor


2020 CEO GUIDE TO SITE SELEC TION

Montana “Montana’s economy continues to grow, with about 4,000 new jobs added so far in 2019… My administration will continue to invest in our state’s economy by expanding access to workforce development opportunities to ensure every Montanan has the ability to join the workforce and contribute to our ongoing success.” —Gov. Steve Bullock

TAXES

6.75% top corporate income tax rate

#5 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION

86% of students

graduated high school in 2017

30.7% of adults age 25+ have a bachelor’s degree or higher

THE SKY IS THE LIMIT

BIG DEALS

While natural resources are making a comeback in Big Sky Country, the tech industry is thriving in places like Bozeman and Missoula as entrepreneurs capitalize on low costs, strong talent and a high quality of life. Companies to break ground or expand here in the past year include ClassPass, GlaxoSmithKline and Quiq.

• Outdoor media and lifestyle company MeatEater moved its headquarters to Bozeman in late-2018 to support its Netflix programming and other ventures.

KEY INCENTIVES

• GlaxoSmithKline announced in April 2019 plans for a $100 million expansion to increase production capacity at its Hamilton facility.

New or Expanding Industry Tax Abatement: Offers a tax abatement of up to 75% for the first five years of operation to businesses that earn half or more of their annual gross income from out-of-state sales. New Markets Tax Credit: Offers credits that can be used or sold for projects that have at least a $4 million investment. Private Sector Workforce Training Grant: Offers up to $5,000 for training expenses per eligible job created. Big Sky Trust Fund: Offers incentives of up to $7,500 per job for job for land, equipment, rehabilitation costs and employee training for projects in high-poverty areas.

EDCs Montana Governor’s Office of Economic Development business.mt.gov Montana Business Assistance Connection mbac.biz Missoula Economic Partnership missoulapartnership.com Big Sky Economic Development bigskyeconomicdevelopment.com

UNEMPLOYMENT RATE

3.4%, less than the

national average of 3.6% QUALITY OF LIFE

#29

POPULATION GROWTH

7.4% increase between 2010 and 2018

HIGHLIGHTED PROGRAM OR INITIATIVE Envision 2026 is a 10-year strategic plan by the Montana Chamber of Commerce that is backed by investors and focuses on four policy areas (workforce, business basics, infrastructure and entrepreneurship) to drive per capital personal income, gross state product growth and job growth.

• ClassPass hired more than 100 employees and opened a new office in Missoula in 2018 to expand the company’s customer service, internal sales and account management teams.

• Tech company Submittable closed on a $10 million Series B round in July 2019 and plans to add 150 jobs in Missoula by the end of 2020. • Bozeman-based software company Quiq announced in July 2019 a $12.5 Series B round led by Foundry Group.

BIG COMPANIES Applied Materials Boeing CrossTx FILR GlaxoSmithKline Oracle First Interstate BancSystem Town Pump Blackmore

C-SUITE TESTIMONIAL “Bozeman was specifically chosen mainly because of the fertile business community and because of MSU; laser optics and photonics industry that have arisen from those two factors convinced me that sooner or later that environment would be critical to our growth.” —Tim Sheehy, CEO, Bridger Aerospace/Ascent Vision Technologies “When Missoula made the short list, I was ecstatic as I had personally experienced the abundant active lifestyle opportunities in the area and the dynamic and unique character of the city and community.” —Fritz Lanman, CEO, ClassPass “One thing that I appreciate about Montana is that you can be however you want to be. If you want to be that person that works 10 hours per week, there is no judgement. Or if you want to be that person to do a great job and then at 4 p.m. go on a hike, you can do that… You can live the life you want.” —Michelle Huie, Founder, VIM and VIGR

2020 CEO GUIDE TO SITE SELECTION 45


2020 CEO GUIDE TO SITE SELEC TION

Nebraska

CREATING OPPORTUNITY IN THE CORNHUSKER STATE

“Over the past four years, we have strengthened Nebraska’s place in the world with our four pillars for growth, which include developing our people; cutting the regulatory red tape; controlling spending so we can deliver tax relief; and promoting Nebraska both nationally and internationally. This has led us to back-toback awards for the most economic development projects per capita of any state in the nation.” —Gov. Pete Ricketts

TAXES

7.81% top corporate income tax rate

#24 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

89% of students

graduated high school in 2017

30.6% of adults age 25+ have a bachelor’s degree or higher

UNEMPLOYMENT RATE 3.1%, less than the national average of 3.6% RIGHT TO WORK STATE

Yes

QUALITY OF LIFE

#9

POPULATION GROWTH

5.6% increase between 2010 and 2018

46 2020 CEO GUIDE TO SITE SELECTION

Agricultural commodities combined with state government support and interest from outside investors are helping drive Nebraska’s bioscience industry to new heights. The sector now supports more than 1,000 companies, 16,000 jobs and, according to Bio Nebraska, a $2 billion economic impact that has grown by nearly 7% since 2007. Recent announcements in the state include a $200 million production plant for Veramaris and an expansion of Merck Animal Health’s facility in Omaha.

KEY INCENTIVES Nebraska Advantage: Offers a variety of multi-tiered benefits starting for projects with a $1 million investment and 10 new full-time jobs. Includes components such as customized job training, R&D credit, microenterprise credit, community development block grants and tax exemptions. Nebraska Customized Job Training Advantage: Offers grants of $800 to $4,000 per qualified new job to support training, needs and assessments, training plans, curriculum development, and instruction. Nebraska Advantage Research and Development Credit: Offers 15% of the federal research and development credit, and up to 35% of the federal credit for expenditures on the campus of a college or university in the state. Nebraska Advantage Microenterprise Tax Credit: Offers a 20% refundable tax credit to microbusinesses on increased compensation for employees or increased investment in communities.

EDCS Nebraska Department of Economic Development opportunity.nebraska.gov Lincoln Partnership for Economic Development selectlincoln.org Greater Omaha Chamber omahachamber.org/economic-development

HIGHLIGHTED PROGRAM OR INITIATIVE The Developing Youth Talent Initiative helps connect seventh and eighth grade students to learn about opportunities in the manufacturing and IT sectors. The intent is to support and industry-defined approach to develop a youth talent pipeline for these occupations. Grant recipients have the opportunity to partner with schools to engage students in participation of hands-on career exploration and relevant workplace learning opportunities.

BIG DEALS • Veramaris opened in July 2019 a $200 million production plant in Blair. • Allman broke ground in May 2019 on a plant expansion in Holdrege which will include five new assembly lines, a prototyping lab and enhanced technological infrastructure • Scoular announced in March 2019 it will invest $50 million in a new manufacturing facility and create 100 new jobs in Seward. • Merck Animal Health opened the expansion of its Omaha facility in March 2019. • As part of its $13 billion of nationwide investments announced in February 2019, Google announced it would construct a data center in Nebraska.

BIG COMPANIES Four Fortune 500 companies headquartered in state: Berkshire Hathaway Union Pacific Mutual of Omaha Insurance Kiewit Other big companies with operations in the state include: TD Ameritrade Holding Green Plains Valmont Industries Werner Enterprises

C-SUITE TESTIMONIALS “For 126 years, Scoular has invested in the people of Nebraska… It was clear to us following an extensive national search that Seward is an ideal community for us to join and grow together. We are excited to begin this process with the people of Seward.” —Paul Maass, CEO, Scoular


2020 CEO GUIDE TO SITE SELEC TION

Nevada “At the heart of Nevada’s economy are our small businesses and supporting their expansion into foreign markets will nurture their success. More than 480,000 Nevadans are employed by a small business. Nevada’s economy is stronger and more resilient because of the success of small businesses.”

—Gov. Steve Sisolak

TAXES No corporate income tax rate

#9 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION

81% of students

STEADY GROWTH IN THE SILVER STATE

BIG DEALS

Economic growth continues to surge in Nevada, driven by tech in the northern part of the state and logistics and manufacturing in the south. According to the Census Bureau, Nevada’s population grew by 2.1% between 2017 and 2018, making it the fastest-growing state in the nation. Apple, Google, Amazon and Polaris have all announced projects here in the past year.

• Apple announced in February 2019 completed construction on its warehouse in Reno, and another expansion in northern Nevada. The facilities are part of the company’s $10 billion data center investment in five states announced in 2018.

KEY INCENTIVES

• Amazon announced in August 2019 it would soon open its third fulfillment center in the Las Vegas area.

Data Center Abatement: Offers abatement of up to 75% of the taxes due for 10 to 20-year periods for personal property tax and sales and use tax. Modified Business Tax Abatement: Offers a tax abatement of half of the 1.475% rate on quarterly wages exceeding $50,000. Sales and Use Tax Abatement: Offers a tax abatement on quality capital equipment purchases, with reductions in the rate to as low as 2%. Silver State Works Employee Hiring Incentive: Offers up to $2,000 per employee in incentive reimbursements and training allowances for new employees.

EDCS Nevada Governor’s Office of Economic Development diversifynevada.com

graduated high school in 2017

Las Vegas Global Economic Alliance lvgea.org

23.7% of adults age 25+ have a bachelor’s degree or higher

Economic Development Authority of Western Nevada (Reno/Sparks/Tahoe) edawn.org

UNEMPLOYMENT RATE

HIGHLIGHTED PROGRAM OR INITIATIVE

national average of 3.6%

The State Trade Expansion Program (STEP) helps small businesses expand into international markets and has been instrumental in elevating the global profile of businesses in the state. Since 2011, GOED has received more than $1.5 million in STEP funding. Businesses can get awards to assist with pre-approved export expenses like sales trips, trade show activities, international marketing materials and training workshops.

4.1%, greater than the

RIGHT TO WORK STATE

Yes

QUALITY OF LIFE

#37

POPULATION GROWTH

12.4% increase between 2010 and 2018

• Google held a groundbreaking in July 2019 for its $600 million data center in Henderson.

• Polaris opened in September 2019 a $47 million distribution center in Fernley.

BIG COMPANIES Apple Amazon Google SolarCity BrightSource Zappos Switch Four Fortune 500 companies headquartered in state including: Las Vegas Sands MGM Resorts International Caesars Entertainment Wynn Resorts

C-SUITE TESTIMONIALS “We are thrilled to be a part of the Fernley and greater Nevada communities. The addition of a western region distribution center to support our growing portfolio of brands and customers is an important strategic investment for the company.” —Steve Eastman, President of Aftermarket, PG&A, Polaris “Scientific Games is proud to call Las Vegas home for our global headquarters. The city and community are wonderful supporters of our industry and our customers, and of course, you can’t beat the weather.” —Todd Clark, Vice President of Global Facilities, Scientific Games “Las Vegas remains the ideal place for us to continue growing our operations….With a 24/7 call center, it is great to be in a 24/7 town that offers a well-trained workforce and convenient commuting options for employees.” —Spencer Schmerling, Founder and CEO, Cascade

2020 CEO GUIDE TO SITE SELECTION 47


2020 CEO GUIDE TO SITE SELEC TION

New Hampshire “Never before in New Hampshire's history have so many Granite Staters participated in and benefited from such a thriving economy. The steps we have taken to cut taxes, slash regulations, and spend wisely have resulted in real benefits for both New Hampshire businesses and the individuals they employ.” —Gov. Chris Sununu

TAXES

7.7% top corporate income tax rate

#6 on the Tax Foundation’s

MILLENNIAL MAGNET

BIG DEALS

Strong job growth, along with initiatives such as Stay, Work, Play, are finally starting to attract new residents to a state that has historically suffered population decline and aging. A recent study by Smart Asset found that New Hampshire is now one of the top 10 states for in-migration of millennials and the most popular in the Northeast. Recent notable announcements include a $200 million expansion, 800 new jobs for BAE Systems and a $60 million expansion for Hitchiner Manufacturing.

• Military and tactical gear manufacturer Revision held a groundbreaking ceremony in August 2018 on a new facility in Portsmouth. The project is expected to create more than 50 new jobs.

KEY INCENTIVES No use tax, sales tax, inventory tax, capital gains tax or broad-based income tax Economic Revitalization Zone Tax Credit: Offers credits against the business profits and enterprises taxes for businesses located in a zone that meets the job creation and capital investment minimums. Maximum credit over six years is $240,000, capped at $40,000 per year. Regenerative Manufacturing Tax Exemption: Offers an exemption from the Business Profits Tax and Business Enterprise Tax for ten years for qualified businesses involved in regenerative manufacturing.

State Business Tax Climate Index ranking

Job Training Grant Program: Offers a 50/50 cash match for customized training, up to $100,000 per application.

EDUCATION

R&D Tax Credit: Offers a tax credit of up to 10% of the organization’s qualified research and development, up to $50,000 in one year.

89% of students

graduated high school in 2017

36% of adults age 25+

have a bachelor’s degree or higher UNEMPLOYMENT RATE

EDCS New Hampshire Division of Economic Development nheconomy.com

2.6%, less than the

NH Works nhworks.org/employers/business-and-economic-development

QUALITY OF LIFE

Manchester Development Corporation manchesterdevelopmentcorp.com

national average of 3.6%

#2

POPULATION GROWTH 3% increase between 2010 and 2018

Concord Economic Development investconcordnh.com

HIGHLIGHTED PROGRAM OR INITIATIVE NH Procurement Technical Assistance Center is a cooperative program of the Division of Economic Development and the U.S. Department of Defense and offers specialized assistance for contracting and subcontracting opportunities with the DoD and other government agencies. Seminars and services are free to all businesses physically located in the state.

48 2020 CEO GUIDE TO SITE SELECTION

• BAE Systems announced in February 2019 a $200 million expansion in Manchester that will create 800 new jobs. • Hitchiner Manufacturing announced in April 2018 a $60 million expansion and 75 new jobs in Milford.

BIG COMPANIES Sprague Resources PC Connection Infosys Limited Universal Software Liberty Mutual Fidelity Investments Tata Consultancy Services

C-SUITE TESTIMONIALS “BAE Systems has a long and rich history in New Hampshire. Our investment in the new Manchester campus will enable us to tap into the talented local workforce to expand our capacity and improve our ability to deliver high-quality products to the warfighter.” —Ray Brousseau, Vice President and Deputy General Manager, BAE Systems “New Hampshire is large enough to meet your business needs from a financial, infrastructure and workforce perspective, yet small enough to make decisions quickly and be creative.” —Dean Kamen, Advanced Regenerative Manufacturing Institute Manchester “I love New Hampshire’s business-friendly, live-free attitude.” —David Rycyna, CEO, Cirrus LED Inc.


2020 CEO GUIDE TO SITE SELEC TION

New Jersey “New Jersey is a smart place to invest because we are putting in place equitable economic, environmental and social policies that attract investors and stakeholders from across the globe to all 169 of our coveted Opportunity Zones.” —Gov. Phil Murphy

TAXES

11.5% top corporate income tax rate

#50 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

91% of students

graduated high school in 2017

38.1% of adults age 25+ have a bachelor’s degree or higher

UNEMPLOYMENT RATE

2.6%, less than the

national average of 3.6% QUALITY OF LIFE

#12

POPULATION GROWTH 1.3% increase between 2010 and 2018

GROWING IN THE GARDEN STATE

BIG DEALS

One recent study ranked the Garden State among the stop states in the nation when it comes to delivering opportunities for investors with a positive economic, environmental and social impact. New Jersey remains a leader in the biosciences industry with major facilities of more than a dozen of the world’s largest biopharmaceutical companies and 115,000 people employed by 400 biotech companies. As of the summer of 2019, the state’s heavily scrutinized tax incentives had lapsed as policymakers sought replacement programs.

• Teva Pharmaceutical Industries Limited announced in the summer of 2018 it would move its U.S. headquarters to Parsippany-Troy Hills and create more than 800 jobs.

KEY INCENTIVES Grow NJ: Offers state income tax credits of up to $5,000 per job annually, with bonus credits of up to $3,000 per job for businesses that create or retain jobs in the state. Manufacturing Equipment and Employment Investment Tax Credit: Offers a tax credit for the acquisition of manufacturing equipment and/or for an increase in employees resulting from the acquisition of such equipment.

• ResinTech announced in April 2019 it will build a $138 million headquarters in Camden and create up to 400 jobs. • Three Indian companies with operations in New Jersey announced in September 2019 an expansion of their presence in the state with 1,250 new jobs. They included Larsen & Toubro (400 jobs), Birlasoft (160 jobs) and Tata Consultancy Services (700 jobs).

BIG COMPANIES 20 Fortune 500 companies headquartered in state, including:

Technology Business Tax Certificate Transfer Program (NOL): Enables New Jersey-based companies to sell their net operating tax losses and R&D credits to unrelated profitable corporations.

Johnson & Johnson Prudential Financial Merck Honeywell International PBF Energy Cognizant Technology Solutions Becton Dickson Celgene ADP Newell Brands Bed Bath & Beyond

EDCs

C-SUITE TESTIMONIALS

New Jersey Economic Development Authority njeda.com

“We’re entering into a new era of innovation and growth as a leading global generics and biopharmaceuticals company…. New Jersey offers Teva North America a value proposition of a unique biopharma cluster of universities and life sciences organizations in which Teva can build its future in North America—and today’s event is an important recognition of this milestone.” —Brendan O’Grady, EVP and Head of North America Commercial, Teva

NJ CoVest Fund: Offers capital to early-stage technology and life sciences companies where a funding gap exists and limited funds are available.

Newark Community Economic Development Corporation newarkcedc.org City of Trenton Division of Economic Development trentonnj.org

HIGHLIGHTED PROGRAM OR INITIATIVE Gov. Phil Murphy signed into law in August 2019 legislation to establish the New Jersey Blockchain Initiative Task Force and create the Innovation District Designation Program. The task force will study blockchain technology, identify how it can be applied in New Jersey and how the state legislature can modify laws to support secure, paperless record-keeping. The Innovation District program aims to promote the development or redevelopment of public-private innovation districts in the state.

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2020 CEO GUIDE TO SITE SELEC TION

New Mexico

ENCHANTING NEW OPPORTUNITIES

“We need to pave the way to exciting career opportunities in cutting-edge fields through our institutions of higher education…As we work diligently to diversify our economy and keep our talented young adults here in New Mexico, our schools will become hotbeds of innovation, catalyzing and transforming key economic growth sectors.” — Gov. Michelle Lujan Grisham

New Mexico is aiming to attract new investment by increasing its incentive funding. The state raised the funding for LEDA to $75 million in 2019 and also doubled to $110 million the Refundable Film Tax Credit. Digital media has taken a closer look at the state with Netflix and NBCUniversal making big announcements in the past two years.

KEY INCENTIVES Job Training Inventive Program (JTIP): Offers employers reimbursements of 50-75% of employee wages for up to six months for on the job and classroom training for newly created jobs. Local Economic Development Act: Offers a discretionary cash-grant incentive program to reimburse costs associated with the land, building and infrastructure improvements of new projects.

TAXES

High Wage Jobs Tax Credit: Offers a tax credit for each new high wage economic base job (paying over $40,000 in a rural area or $60,000 in a metro) of 8.5% of the wages and benefits for each job created.

income tax rate

Rural Jobs Tax Credit: Offers a credit of up to $1,000 per year for two to four years for jobs created in rural areas.

5.9% top corporate #25 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

71% of students

graduated high school in 2017

26.9% of adults age 25+

EDCs New Mexico Economic Development Department gonm.biz New Mexico Economic Partnership nmpartnership.com Santa Fe Office of Economic Development santafenm.gov/economic_development

have a bachelor’s degree or higher

Albuquerque Economic Development abq.org

UNEMPLOYMENT RATE

HIGHLIGHTED PROGRAM OR INITIATIVE

national average of 3.6%

In March 2019, the state established the Outdoor Recreation Division within the Economic Development Department to promote and attract new outdoor recreation business opportunities. The department will work to recruit additional businesses, promote the outdoor assets in the state, and assist with applying for funding.

4.8%, greater than the QUALITY OF LIFE

#46

POPULATION GROWTH

1.8% from April 1, 2010 to July 1, 2018

BIG DEALS • Stampeded Meat announced in July 2018 a $36 million investment in a manufacturing facility and the creation of nearly 1,300 jobs.

50 2020 CEO GUIDE TO SITE SELECTION

• Netflix announced in October 2018 a $30 million investment and as many as 1,000 new jobs in film production. • Ganymede Games announced in February 2019 more than 50 jobs and a $1.3 million investment in Las Cruces. • Rich Global Hemp announced in May 2019 more than 180 jobs at a hemp growing and CBD extraction operation in Mesilla. • NBCUniversal studios announced in June 2019 plans to hire 330 production workers and an investment of up to $500 million over the next 10 years.

BIG COMPANIES Intel PESCO Northrop Grumman Sandia National Laboratories Pebble Labs 3-D Glass Solutions Virgin Galactic RS21

C-SUITE TESTIMONIALS “Santa Theresa, (New Mexico) affords us greater proximity to our customers with efficient market access, supply chain efficiencies and high-quality labor. New Mexico’s strong business climate for manufacturers makes for a very compelling value proposition. With a competitive total cost of operations, we can compete with foreign-made product right here from Santa Teresa. —T.C. Huant, Chairman and CEO, I-Sheng Electric Wire & Cable “We left the high cost, noise, and density of hightech cities when we discovered Las Cruces, which is affordable, offers a higher quality of life, and now we have plenty of wilderness to explore both in-game and out-of-game.” —Jerry Prochazka, CEO and Founder, Ganymede Games “We believe that New Mexico, and in particular the Borderplex region, is well positioned to become a leader in North America’s rapidly-emerging industrial hemp industry.” —Josh Rich, Founder and Chairman/CEO, Rich Global Hemp


2020 CEO GUIDE TO SITE SELEC TION

New York “We are proud to support companies that invest in New York State and grow our innovation hubs, which in turn attract more world-class businesses and further elevate our 21st century economy.” —Gov. Andrew Cuomo

TAXES 6.5% top corporate income tax rate

#48 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

82% of students

graduated high school in 2017

35.3% of adults age 25+ have a bachelor’s degree or higher

BUILDING THE EMPIRE

BIG DEALS

The Empire State continues to grow new opportunities, not only in New York City but also in northern parts of the state. While headquarters and tech companies flock to the Big Apple, manufacturers and industrial distributors are announcing new investments in places like Albany, Rochester and Buffalo. IBM, Briggs & Stratton, Cree and Booz Allen Hamilton are just a few of the companies to invest in New York in 2019.

• IBM announced in February 2019 it plans to invest over $2 billion to grow its high-tech footprint at the SUNY Polytechnic Institute campus in Albany and throughout the state.

KEY INCENTIVES Excelsior Jobs Program: Offers a jobs tax credit of up 6.85% of wages per net new job, an investment tax credit of 2%, an R&D credit of up to 6%, and a property tax credit for companies that meet established job and investment thresholds. START-UP NY: Offers tax-based incentives, innovative academic partnerships, and the opportunity to operate tax-free for up to 10 years on an eligible university or college campus. Life Sciences Tax Credit Program: Offers a fully refundable credit of 15% for a company that employs 10 or more people for life sciences R&D performed in the state. Employee Training Incentive Program: Offers a credit of 50% of eligible training costs, up to $10,000 per employee, for New York State employers seeking to upgrade skills or improve productivity of their employees.

EDCs

• Tech company Yext announced in April 2019 plans to expand its New York City headquarters and create 500 high-paying jobs over the next five years. • Booz Allen Hamilton announced in May 2019 it will expand operations in Rome with 60 high-skilled jobs. • Precision Manufacturing announced in June 2019 it will acquire operations in Troy and create 50 jobs. • Orgill announced in June 2019 it will build a $68 million distribution center in Rom and create 225 jobs • ITX Corporations announced in July 2019 it will move is corporate headquarters to Rochester and create up to 80 jobs. • Briggs & Stratton announced in September 2019 it will create 52 new jobs and construct a facility in Sherrill. • Nanotronics announced in September 2019 it will open a high-tech manufacturing center at the Brooklyn Navy Yard and create 190 jobs. • Cree announced in September 2019 a $1 billion public private partnership that will create 600 jobs at the SUNY Polytechnic Institute campus near Utica.

BIG COMPANIES More than 50 Fortune 500 companies headquartered in state, including:

QUALITY OF LIFE

New York City Economic Development Corporation nycedc.com

Verizon Communications JP Morgan Chase Pfizer MetLife AIG Morgan Stanley American Express

POPULATION GROWTH 0.8% increase between 2010 and 2018

Center for Economic Growth ceg.org

C-SUITE TESTIMONIALS

UNEMPLOYMENT RATE 4%, greater than the national average of 3.6%

#25

Empire State Development esd.ny.gov New York State Economic Development Council nysedc.org

Capitalize Albany Corp. capitalizealbany.com Buffalo Niagara Partnership thepartnership.org/economic-development

HIGHLIGHTED PROGRAM OR INITIATIVE In May 2019, Gov. Andrew Cuomo launched the Workforce Development Initiative with $175 million to support strategic regional efforts to meet workforce needs, improve regional talent pipelines and address the long-term needs of industries. Funds will support a variety of projects with a focus on regionally significant industries that fuel job growth, including clean energy, life sciences, computer science and advanced technologies.

“There were many positive things that led us to select Rome as the home for our newest distribution center, including the excellent workforce in the area and the assistance and cooperation of local officials.” —Ron Beal, Chairman and CEO, Orgill “AI will transform the world in dramatic ways in the coming years. IBM is pushing the boundaries of AI faster—for the benefit of industry and society. By expanding our partnership with New York State, we are creating a global hub of AI hardware research with an ecosystem to innovate, incubate, and lead in the development of disruptive technologies.” —Mukesh Khare, Vice President, Semiconductor and AI Hardware, IBM Research

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2020 CEO GUIDE TO SITE SELEC TION

North Carolina MANUFACTURING A BRIGHT FUTURE

“Leading manufacturers with first-hand experience of what it’s like to do business in North Carolina time and again choose to expand in our state… Industrial companies know our state has a healthy market, a skilled workforce and communities ready to grow with them.” —Gov. Roy Cooper

TAXES 2.5% top corporate income tax rate

#12 on the Tax

Foundation’s State Business Tax Climate Index ranking

The Tar Heel State remains a national leader in manufacturing, leading the state in GDP contribution at 20% and employing more than 460,000 workers, according to the National Association of Manufacturers. Lowe's, Merck, Xerox, Advanced Auto Parts and Honeywell have all announced major projects here in recent years. .

KEY INCENTIVES Job Development Investment Grant: A performance-based, discretionary incentive program that offers cash grants to new and expanding companies, based on a percentage of personal income tax withholdings associated with new jobs created. One North Carolina Fund: A discretionary cash grant program that enables the governor to quickly respond to job creating competitive projects considering locations outside of North Carolina. JDIG for a High-Yield Projects: Offers a JDIG grant worth up to 90% of personal income withholdings for up to 20 years for a company that creates 1,750 jobs and invests at least $500 million in a project. JDIG for a Transformative Project: Offers up to 90% of personal income withholdings for up to 30 years for a company that creates 3,000 jobs at invests at least $1 billion.

EDUCATION

87% of students

graduated high school in 2017

29.9% of adults age 25+ have a bachelor’s degree or higher

UNEMPLOYMENT RATE

4%, greater than the

national average of 3.6% RIGHT TO WORK STATE

EDCs Economic Development Partnership of North Carolina edpnc.com North Carolina Department of Commerce nccommerce.com City of Raleigh Economic Development raleigh4u.com Charlotte Regional Business Alliance charlotteusa.com

Yes

QUALITY OF LIFE

#18

POPULATION GROWTH

8.9% increase between 2010 and 2018

HIGHLIGHTED PROGRAM OR INITIATIVE The NC Job Ready Fund is dedicated to training and growing the state’s workforce to fill jobs of today and tomorrow. Components include NC GROW (Getting Ready for Opportunities in the Workforce), Finish Line Grants and the Employer Training Fund.

BIG DEALS • Advance Auto Parts announced in November 2018 it will relocate its corporate headquarters from Virginia to Raleigh.

52 2020 CEO GUIDE TO SITE SELECTION

• AvidXchange announced in December 2018 it will create 1,229 jobs at a $41 million expansion of its Charlotte headquarters. • Honeywell announced in December 2018 it will relocate its corporate headquarters from New Jersey to Charlotte. The $248 million investment will create 750 jobs. • Lowe's announced in June 2019 it will create 2,000 jobs and build a $153 million global technology center in Charlotte. • Merck announced in July 2019 it will invest $650 million and create more than 400 jobs at a new facility in Durham and existing operation in Wilson. • Xerox announced in August 2019 it will create 600 jobs and invest $18.4 million in a Center of Excellence in Cary.

BIG COMPANIES 12 Fortune 500 companies are headquartered in the state, including: Bank of America Lowe’s Nucor Duke Energy BB&T Honeywell Laboratory Corp. of America IQVIA Holdings Sonic Automotive Advanced Auto Parts

C-SUITE TESTIMONIALS “Being home to a host of tech companies and educational institutions, North Carolina was a logical choice for us.” —Naresh Shanker, Senior Vice President and Chief Technology Officer, Xerox “The talent pipeline we’ve been able to attract to our Durham operation as a result of the strong life sciences presence in the region has been outstanding, making it the ideal location to help fuel our future growth.” —Jamie Macdonald, CEO, Parexel International Corporation “Our industry and our company are in the midst of a major technology and business transformation… North Carolina’s deep bench of information technology and software development talent was a key driver of our decision.” —Tom Greco, President and CEO, Advance Auto Parts


2020 CEO GUIDE TO SITE SELEC TION

North Dakota PROSPERITY IN THE PEACE GARDEN STATE

“We’ve worked hard to create a business-friendly climate that supports and attracts investment in our growing technology sector, and this expansion by Aldevron sends a strong signal to the rest of the nation and the world that North Dakota is open for business.” —Gov. Doug Burgum

TAXES

4.31% top corporate income tax rate

#17 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION 87% of students graduated high school in 2017

28.9% of adults age 25+ have a bachelor’s degree or higher

UNEMPLOYMENT RATE 2.5%, less than the national average of 3.6% RIGHT TO WORK STATE

Yes

QUALITY OF LIFE

North Dakota is moving beyond its economic foundation of “oil and soil” into new opportunities in tech and the unmanned aerial systems (UAS) industry. The Grand Sky Park continues to attract UAS and aerospace companies such as General Atomics Aeronautical Systems. Other recent investments include a 1,000-employee campus in Fargo, a $12 million data center in Fargo and a 32,000-square-foot expansion of a manufacturing facility in Dickinson.

KEY INCENTIVES Income Tax Exemption: Offers an exemption from state income taxes for up to five years for any “primary” sector business that adds value to a product, process or server that produces new wealth in North Dakota. Property Tax Exemption: Offers a property tax exemption for up to five years for a new or expanded revenue-producing primary sector enterprise. Manufacturing, Agricultural or Recycling Equipment Sales Tax Exemption: Offers sales and use tax exemption for machinery and equipment that is used in manufacturing, agricultural processing or recycling. Automation Tax Credit: Offers an income tax credit for purchasing machinery and equipment to automate manufacturing processes. Equal to 20% of the cost of the machinery and equipment approved by the Department of Commerce, Economic Development and Finance Division. New Jobs Training Program: Offers grants and loans to help offset the cost of training new employees for business expansion and startups.

EDCs North Dakota Department of Commerce, Economic Development and Finance Division business.nd.gov Bismarck-Mandan Development Association bmda.org

#15

Williston Economic Development willistondevelopment.com

POPULATION GROWTH 13% increase between 2010 and 2018

Greater Fargo/Moorhead Economic Development Corp. gfmedc.com

HIGHLIGHTED PROGRAM OR INITIATIVE The Legacy Investment for Technology (LIFT) program is an innovation loan fund that supported technology advancement put in place by the 2019 legislative session. Offers interest rates of 0% for years 1–3, 2% for years 4–45 and the standard rate for the following years for applied research, experimentation or operational testing in the targeted sectors.

BIG DEALS • Fargo-based biotech Aldevron announced in June 2019 plans to open a 14-acre campus in Fargo that could eventually employ 1,000 people. • Hankinson Renewable Energy announced in May 2019 a $3.2 million project that will increase ethanol production by 10 million gallons per year. • Midco opened in July 2018 a $12 million data center in Fargo, its fourth in the region. • Killdeer Mountain Manufacturing (KMM) announced in March 2019 a 32,000-square-foot expansion of its facility in Dickinson and the addition of 20 jobs. • General Atomics Aeronautical Systems announced in August 2018 plans to expand its facility at the Grand Sky UAS Park from 5.5 to 20 acres.

BIG COMPANIES Microsoft Delta Airlines Marathon Petroleum John Deere Northrop Grumman

C-SUITE TESTIMONIALS “We’re excited to expand our footprint at the Grand Sky as part of our Flight Test and Training Center in Grand Forks, North Dakota. This growth, from 5.5 acres to 20 acres, will benefit our customers, as well as strengthen our commitment to the Grand Forks community as we further build out our test and training capabilities.” —Linden Blue, CEO, General Atomics Aeronautical Systems “Fargo was selected as the site of this data center after a rigorous vetting process. From the strength of the workforce to the infrastructure Midco has in place, Fargo is an ideal location.” —Steve Grosser, CFO, Midco “It’s really great to be a growth-oriented company. Especially in North Dakota, we get a lot of empowerment working with our community, our state and the connectivity with our federal government.” —Kristin Hedger, Vice President of Business Development, Killdeer Mountain Manufacturing

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2020 CEO GUIDE TO SITE SELEC TION

Ohio "We are going to help businesses in Ohio through increased Opportunity Zones, and we are going to help Ohio college students by having every one of our public universities offer guaranteed tuition—that won’t increase one dime—over the four years the student is in college…We’re going to invest more in our career-tech centers and twoyear community colleges, and we are going to create at least 10,000 industry certificates." —Gov. Mike DeWine

TAXES No corporate income tax

#42 on the Tax

Foundation’s State Business Tax Climate Index ranking

BOOMING IN THE BUCKEYE STATE

HIGHLIGHTED PROGRAM OR INITIATIVE

Ohio’s value is demonstrated through the continuous groundbreakings and expansions in Columbus and Cleveland. CoverMyMeds, one of the fastest-growing healthcare technology companies in the nation, is adding more than 1,000 jobs in the Columbus region. Total Quality Logistics is constructing a second building and its headquarters in Cincinnati, and Amazon announced in July 2019 it will bring 1,500 jobs and construct a $200 million fulfillment center in Akron.

The SiteOhio initiative puts properties in industrial zoning through a stringent, comprehensive review and certification process. SiteOhio authenticated sites are construction-ready and come with a guarantee that all utilities are on property with adequate capacity and that due diligence studies have been completed.

KEY INCENTIVES Job Creation Tax Credit: Offers a performance-based tax credit calculated as a percentage of payroll and applied toward the company’s commercial activity tax liability. JobsOhio Economic Development Grant: Offers incentives to promote economic development, business expansion and job creation in the state. JobsOhio Research and Development Center Grant: Facilitates the creation of corporate research and development centers in Ohio to support the commercialization of emerging technologies and products. JobsOhio Revitalization Program: Offers loans and grants to help revitalize sites for end users that support job creation opportunities. JobsOhio Talent Services and Training: Assists expanding companies with talent needs, including finding, sourcing, screening and training candidates and employees.

BIG DEALS • NSG Glass North America announced it will invest $250 million in a facility in Troy creating 150 jobs. • CoverMyMeds announced in December 2018 it will add more than 1,000 jobs and invest $8 million in a new campus in downtown Columbus. • Amazon announced in July 2019 it will bring 1,500 jobs and a $200 million fulfillment center to Akron. • AMG Vanadium announced in August 2019 it will add more than 100 jobs and expand its steel production facility in Washington. • Total Quality Logistics announced in July 2019 it will create nearly 600 jobs and invest $13 million to construct a second headquarters building in Clermont.

BIG COMPANIES 20 Fortune 500 companies are headquartered in the state, including:

have a bachelor’s degree or higher

Appalachian Partnership for Economic Growth apeg.com

Cardinal Health Kroger Proctor & Gamble Marathon Petroleum Nationwide Macy’s Progressive American Electric Power Goodyear Tire & Rubber FirstEnergy

UNEMPLOYMENT RATE 4.2%, greater than the national average of 3.6%

Dayton Development Coalition daytonregion.com

C-SUITE TESTIMONIALS

EDUCATION

84% of students

graduated high school in 2017

27.2% of adults age 25+

QUALITY OF LIFE

EDCs JobsOhio jobsohio.com

One Columbus columbusregion.com

#39

Regional Growth Partnership rgp.org

POPULATION GROWTH

REDI Cincinnati redicinncinnati.com

2010 and 2018

Team NEO teamneo.org

1.3% increase between

Ohio Economic Development Association ohioeda.com

54 2020 CEO GUIDE TO SITE SELECTION

“The JobsOhio team is unparalleled.... Not only were they great to work with but the resources and support that they have been able to provide Marxent solidified our commitment to continuing to grow the company in Ohio.” —Rick Hanley, CFO, Marxent Virtual Reality “JobsOhio is allowing MCPc to take a big step toward expanding its capabilities in technology lifecycle management…The value goes beyond MCPc itself… We’ll provide opportunities for the chronically underemployed, for students who will be more likely to remain in Ohio as a result of this experience and for people who are looking for steady employment.” —Peter Anagnostos, VP of Marketing, Communications and Business Development, MCPc


2020 CEO GUIDE TO SITE SELEC TION

Oklahoma “Oklahoma is open for business. We will help our local businesses expand. We will recruit. We will train and supply the modern-day workforce. And we will bring Oklahoma to the world and the world to Oklahoma.” —Gov. Kevin Stitt

TAXES

6% top corporate income tax rate

#26 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION 84% of students graduated high school in 2017

24.8% of adults age 25+ have a bachelor’s degree or higher

UNEMPLOYMENT RATE 3.3%, less than the national average of 3.6% RIGHT TO WORK STATE

FLYING HIGH IN THE SOONER STATE

BIG DEALS

While recent data indicates some weakening in Oklahoma’s economy, the aerospace industry is reaching new heights. A report released last year by the Oklahoma Aeronautics Commission found the sector is now the second-largest in the state and has an annual impact of more than $43 billion. Spirit Aerosystems, Valkyrie Systems and Kratos Defense have all announced projects here in the past 18 months.

• Keyera Energy announced in May 2018 a $185 million storage and blending terminal in Cushing.

KEY INCENTIVES 21st Century Quality Jobs: Offers cash back, up to 10% of new taxable payroll, for up to 10 years for the creation of at least 10 jobs with an average wage of $101,000 or more. Business Expansion Incentive Program: The $200 million program offers competitive cash incentives for business expansion projects that create jobs or make significant investment in facilities. Cyber Security and Software Engineer Workforce Tax Credit: Offers a tax credit of up to $2,200 annually to software engineers who have a degree from an accredited institution. Aerospace and Automotive Engineer Workforce Tax Credits: Offers a tax credit equal to 5% of the compensation paid to an engineer and 10% if the engineer graduated from a state college or university. Offers another credit of up to 50% of the tuition reimbursed to an employee, and a credit of $5,000 per year to the hired engineer.

EDCs Oklahoma Department of Commerce okcommerce.gov Oklahoma Economic Development Authority oeda.org

Yes

Oklahoma Works oklahomaworks.gov

QUALITY OF LIFE

Greater Oklahoma City Chamber Economic Development greateroklahomacity.com

#43

POPULATION GROWTH

5.1% increase between 2010 and 2018

Grow Metro Tulsa growmetrotulsa.com

HIGHLIGHTED PROGRAM OR INITIATIVE The nationally acclaimed Training for Industry Program (TIP) offers job analysis, training needs assessment, training, instructional materials and more at the state’s system of 59 technology center campuses for expanding companies.

• Amazon Services announced in May and June 2018, a combined investment of more than $300 million in two fulfillment centers in Tulsa and Oklahoma City. • Spirit AeroSystems announced in December 2018 an $80 million expansion of its operations in Tulsa. • Preferred Sands of Oklahoma announced in March 2019 it would build a $112 million “in-basin” frack sand mine in Oakwood. • Kimberly-Clark Corporation announced in April 2019 a $132 million expansion of its facility in Jenks. • Google announced in June 2019 a $600 million expansion of its data center in Pryor.

BIG COMPANIES Five Fortune 500 company headquarters in state: Devon Energy NGL Energy Partners ONEOK Chesapeake Energy The Williams Companies

C-SUITE TESTIMONIALS “We are proud to call Oklahoma home and look forward to Pryor being a vital part of the engine that powers the internet for years to come. At Google we are technology optimists, not because we believe in technology, but because we believe in people. The people of Mayes County shared our sense of optimism from the very start.” —Sundar Pichai, CEO, Google “We know Oklahoma, and Oklahoma knows us, and it is hard to beat the workforce in Oklahoma, whether it is engineers, operators or administrators.” —Tom Thissen, President, Baker Hughes’ Drilling Services Division “The people of Oklahoma represent a highly patriotic, educated and motivated workforce with the technical skills that will contribute to building the affordable but technology leading weapon systems needed for tomorrow’s world. We could not be happier to be joining this cost-effective business environment and family-friendly community.” —Eric DeMarco, President and CEO, Kratos Defense & Security Solutions

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2020 CEO GUIDE TO SITE SELEC TION

Oregon “Our state is growing faster than at any point in Oregon history. With growth comes a lot of really good things. More jobs. More ideas. And hopefully, more opportunities.” —Gov. Kate Brown

TAXES

7.6% top corporate income tax rate

#7 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 77% of students graduated high school in 2017

32.3% of adults age 25+ have a bachelor’s degree or higher

POWERED BY INNOVATION

BIG DEALS

Oregon is climbing the ranks in the innovation economy and now ranks only behind California and Massachusetts, according to a recent report by Business Oregon. New levels of venture capital, an influx of talent from neighboring high-cost cities, and momentum are fueling new levels of innovation in the Portland region. Intel recently announced an expansion in Hillsboro that could add more than 1,750 new jobs, and Genentech is expanding a new office space with 300 new jobs Portland’s Lloyd District.

• Wayfair announced in January 2019 it would open sales and service center and create 600 new jobs in Springfield.

KEY INCENTIVES

• Diamond WTG Engineering & Services relocated its headquarters from California to Portland in April 2019.

Oregon Investment Advantage: Offers up to a 10-year income tax holiday for companies setting up operations in an eligible county that create at least five new full-time jobs averaging 100% or more than the current county wage. Small Manufacturing Business Expansion Program: Offers forgivable loans of up to $50,000 for small manfuacturing business expansion projects Strategic Investment Program: Offers a 15-year property tax exemption on a portion of projects of at least $25 million in a rural area or $100 million in other areas. Oregon Business Expansion Program: Offers a cashbased incentive equivalent to the estimated increase in income tax revenue from new hiring. For companies that hire 50 or more full-time employees and already has at least 150 employees in the area.

UNEMPLOYMENT RATE

EDCS

national average of 3.6%

Business Oregon oregon4biz.com

QUALITY OF LIFE

Oregon Economic Development Association oeda.biz/index.php

4.1%, greater than the

#27

POPULATION GROWTH 9.4% increase between 2010 and 2018

Prosper Portland prosperportland.us Strategic Economic Development Corporation sedcor.com

HIGHLIGHTED PROGRAM OR INITIATIVE Greater Portland 2020 is a five-year action plan to achieve economic prosperity across the region by aligning business, education and civic leaders around regional economic priorities. The strategy focuses on driving growth with diversity, inclusion and equity to overcome the growing disparity of opportunities in the state.

56 2020 CEO GUIDE TO SITE SELECTION

• R/GA Ventures and several partners including Business Oregon, Moda, Umpqua Bank and Smith + Crown, announced in April 2019 the creation of the Oregon Enterprise Blockchain Venture Studio Portland. • UK-based Edwards Vacuum opened in August 2019 a high-tech innovation and manufacturing center in Hillsboro with 100 new jobs.

• Digital signage company 10net opened its first U.S. office in Portland in November 2018. • Intel announced in February 2019 a new factory in Hillsboro that could create up to 1,750 jobs.

BIG COMPANIES 2 Fortune 500 companies headquartered in state: Nike Lithia Motors Other large companies with operations in the state include: Columbia Sportswear Greenbrier Cos. Schinitzer Steel Industries Intel Daimler Trucks North America Adidas America

C-SUITE TESTIMONIALS "We are excited to expand our operations to Lane County as we grow our customer service team to support the incredible growth of our business.… The opening of our newest location in the state of Oregon will allow us to build upon our award-winning team as we benefit from the strong pool of talent in the region.” —Tom Svitil, Head of Sales and Service, Wayfair “We are excited about opening our innovation center in Hillsboro.…Edwards is fully committed to the Northwest Region, creating jobs and participating in the local growth, as environmentally conscious corporate stewards in the neighborhood.” —Scott Balaguer, General Manager, Semiconductor Division North America


2020 CEO GUIDE TO SITE SELEC TION

Pennsylvania STRENGTH IN ECONOMIC DIVERSITY

“We’ve made progress in Pennsylvania, but we still have more work to do and I will continue to work on growing our economy for all workers by making it easier for small businesses to start, pushing forward critical infrastructure projects, investing in schools, and expanding career and technical education opportunities so everyone has the skills needed to find good-paying jobs and live a comfortable, rewarding life in the state we all call home.” —Gov. Tom Wolf

TAXES

9.99% top corporate income tax rate

#34 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

87% of students

graduated high school in 2017

30.1% of adults age 25% have a bachelor’s degree or higher

UNEMPLOYMENT RATE

4.2%, greater than the

national average of 3.6% QUALITY OF LIFE

#41

POPULATION GROWTH

0.8% increase between 2010 and 2018

Bloomberg’s inaugural Economic Diversity Index ranked the Keystone State as the most economically diverse in the nation in 2019, earning a comparable portion of GDP from real estate, manufacturing and healthcare. While steel and healthcare has been leading growth in recent years, the state is now trying to make a greater transition to tech.

KEY INCENTIVES Research and Development Tax Credit: Offers a state income tax credit to businesses and individuals that perform qualified R&D activities in the state. Keystone Innovation Zone (KIZ) Tax Credit: Offers an incentive-based tax credit program to foster the redevelopment of abandoned or deteriorated commercial and industrial sites. Tax Credits for New Jobs: Offers from $1,000 to $2,500 per job for businesses that create at least 25 new jobs or expand their existing workforce by at least 20%. Manufacturing Tax Credit (PRM): Offers a PRM tax credit of up to five cents per gallon for ethane purchased and used in manufacturing ethylene for companies that invest at least $1 billion and create the equivalent of 2,500 full-time jobs while constructing a manufacturing facility.

EDCs Pennsylvania Department of Community & Economic Development dced.pa.gov Pittsburgh Regional Alliance pittsburghregion.org PIDC Philadelphia pidcphila.com

HIGHLIGHTED PROGRAM OR INITIATIVE The Manufacturing PA initiative includes such partners as the National Institutes of Standards and Technology Manufacturing Extension Partnership, the Industrial Resource Centers, and universities to support the state’s manufacturing community. Manufacturing PA funds training-to-career grants, seven industrial resource centers, and an innovation program.

• WebstaurantStore, Inc. announced in May 2019 it will construct a $33 million fulfillment center in Harrisburg and create 400 jobs. • Amazon announced in July 2019 it will create 800 jobs at a $30 million fulfillment center in Findlay Township. • AirBorn broke ground in August 2019 on an expansion at its manufacturing facility in Lake City Borough. It is expected to create 249 jobs over the next three years. • TechnipFMC announced in August 2019 it will expand its operations and establish a regional hub facility in Washington County and retain and create 168 jobs.

BIG COMPANIES 20 Fortune 500 companies headquartered in state, including: AmerisourceBergen Comcast Kraft Heinz Company Rite Aid PNC Financial Services Group Lincoln National Aramark PPG Industries United States Steel

C-SUITE TESTIMONIALS “We consider Philadelphia our first investor. We would not have been able to scale our business as quickly and deliver the moments that matter most to our customers had it not been for the support of the city and the state.” —Rafael Ilishayev, Co-Founder, goPuff “The workforce in Lake City and Erie County have proven to be an asset to AirBorn…Our investment in the community brings not only new jobs but the opportunity to build a career at our employee-owned company.” —Jennifer Nelson, Vice President of Operations and Supply Chain Management, AirBorn “Pennsylvania is a great state for business and Amazon is excited to continue its growth and investment with our newest fulfillment center in Allegheny County…. For nearly a decade, the Keystone State has been key to Amazon’s ability to serve our incredible customers and provide great selection and super-fast shipping speeds across the Northeast and Midwest regions of the U.S.” —Alicia Boler Davis, Vice President of Global Customer Fulfillment, Amazon

BIG DEALS • Online retailer goPuff announced in November 2018 it will construct a new headquarters in Philadelphia and build 10 warehouses across the state, creating more than 500 jobs over the next three years.

2020 CEO GUIDE TO SITE SELECTION 57


2020 CEO GUIDE TO SITE SELEC TION

Rhode Island WINDS OF OPPORTUNITY

“Infosys is a global leader in information technology, and I’m so excited that they’ve chosen Rhode Island as the home of their new innovation center…In partnership with RISD and CCRI, Infosys will be helping train today's Rhode Islanders for tomorrow’s jobs. Our state has some of the top designers in the world, and it’s a testament to the strength of our workforce that Infosys is looking to tap into and further develop our talent.” —Gov. Gina M. Raimondo

TAXES

7% top corporate income tax rate

#37 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION 84% of students graduated high school in 2017

33% of adults age 25+ to have a bachelor’s degree or higher

UNEMPLOYMENT RATE 3.6%, equal to the national average of 3.6% QUALITY OF LIFE

#26

POPULATION GROWTH

0.4% increase between 2010 and 2018

58 2020 CEO GUIDE TO SITE SELECTION

The Ocean State may be small, but it has renewed economic enthusiasm by attracting big investments in the past year. New wind power projects are blowing in new opportunities, and Infosys announced in early 2019 it will launch its Design and Innovation Center in Providence. Rubius Therapeutics, Amgen and Boston Energy have also initiated expansions here.

KEY INCENTIVES Qualified Jobs Incentive Tax Credit: Offers up to $7,500 per job per year for up to 10 years for companies that expand the workforce in or relocate jobs from out of state. Rebuild Rhode Island Tax Credit: Offers to fill financing gaps with redeemable tax credits covering up to 30% of project costs for commercial office, industrial, residential, mixed-use development, ground up construction, or historic rehab for projects of at least $5 million. Innovation Voucher Program: Offers up to $50,000 for companies with 500 employees or less to support R&D projects that commercialize a new product, process or service; support scale-to-market development or new expertise.

EDCs Rhode Island Commerce Corporation commerceri.com Rhode Island Division of Statewide Planning planning.ri.gov/planning-areas/economic-development Providence Economic Development providenceeconomicdevelopment.net

HIGHLIGHTED PROGRAM OR INITIATIVE Supply Rhode Island connects local suppliers to the needs of larger institutions in the state (including Infosys, Amica Insurance, LifeSpan and CVS Health) and helps local businesses better understand their processes and needs. Participating organizations get access to prescreened local suppliers across purchasing categories along with matchmaking services through a concierge service.

BIG DEALS • Rubius Therapeutics announced in June 2018 it will create 160 highly skilled jobs and acquire a manufacturing facility in Smithfield.

• Amgen broke ground in August 2018 on a $200 million biopharma plant. The project will add more than 150 jobs to the 625 people currently employed there fulltime. • Infosys announced in February 2019 it will launch the company’s new Design and Innovation Center in Providence. • Wind turbine maintenance company GEV announced in June 2019 it had selected Rhode Island as the base for its new U.S. headquarters, and will create more than 125 jobs. • Boston Energy announced in August 2019 it will create more than 50 jobs and establish its U.S. headquarters at the Cambridge Innovation Center in Providence.

BIG COMPANIES Four Fortune 500 companies headquartered in the state: CVS Health Textron United Natural Foods Citizens Financial Group

C-SUITE TESTIMONIAL “Rhode Island is vying to be a center of excellence for offshore wind in America. The geographical location and support offered by Governor Raimondo, Commerce Secretary Pryor and their teams has been critical to our decision in locating our U.S. Headquarters in Providence.” —Mark Parkes, CEO and President, Bostonair Group “Biologics manufacturing is a complex science and has long been a competitive advantage for Amgen…. We are working to extend that advantage even further with a next-generation biomanufacturing plant in Rhode Island that will produce medicines to serve patients around the world suffering from serious illnesses.” —Robert Bradway, Chair and CEO, Amgen “We are truly excited about setting up our base in Rhode Island where Governor Raimondo and Commerce Secretary Pryor's welcome party and support for the industry has been incredible. As we gear up, there will be a tangible opportunity for Rhode Islanders to come and talk to us about the options for an exciting career in wind energy and join what is becoming one of America's fastest growing industries.” —Daniel Boon, U.S. General Manager, GEV Wind Power US


2020 CEO GUIDE TO SITE SELEC TION

South Carolina BOOMING EXPORTS AT PORTS

“In the last two years, we have announced over $8 billion dollars in new capital investment and more than 27,000 new jobs. Our unemployment rate just hit an all-time low. More people are working than ever before.” —Gov. Henry McMaster

TAXES

5% top corporate income tax rate

#35 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

84% of students

graduated high school in 2017

27% of adults age 25+

have a bachelor’s degree or higher

In 2018, total exports from South Carolina set a record for the ninth consecutive year, totaling more than $34 billion. Despite concerns about the impact the U.S.-China trade war could have on investments and material imports, manufacturing remains a strong economic driver. Keurig Green Mountain, DHL and W International have all recently expanded in the state.

KEY INCENTIVES Jobs Tax Credit: Offers state income tax credits of up to $3,750 per job for companies that create a certain number of jobs in designated sectors.

• JUUL Labs, announced in May 2019 it will create 500 jobs and invest more than $125 million in a new assembly facility in Lexington County.

Corporate Headquarters Tax Credit: Offers a 20% tax credit based on the value of the portion of the facility or lease costs dedicated to the headquarters operation for the first five years of operation. Offers enhanced credits in certain counties.

• Southern Current announced in July 2019 it would invest $141 million in six projects in Darlington County.

Corporate Income Tax Moratorium: Offers a corporate income tax moratorium for a period of up to 15 years for companies that create new jobs in some economically distressed counties. To qualify, 90% of the company’s total investment in the state must be in a county where the unemployment rate is twice the state average.

EDCs

C-SUITE TESTIMONIALS

South Carolina Department of Commerce sccommerce.com

“As we plan for the future, we're pleased to locate our newest facility in Spartanburg County to support our growth. We view the region's talented employee base and attractive business environment as the right place to invest.” —Richard Jones, Chief Supply Chain Officer, Keurig Green Mountain

national average of 3.6%

Charleston Regional Development Alliance crda.org

Yes

Columbia Development Corporation columbiasc.gov/cdc

QUALITY OF LIFE

Central SC Alliance centralsc.org

#42

POPULATION GROWTH

9.9% between 2010 and 2018

BIG COMPANIES Bank of America Lowe’s Duke Energy Nucor Reynolds American VS BB&T Corp. Sonic Automotive Laboratory Corp of America Quintiles IMS Holdings

Research and Development Tax Credit: Offers a credit equal to 5% of the taxpayer’s qualified research and development expenses.

SC Power Team scpowerteam.com

RIGHT TO WORK STATE

• DHL announced in April 2019 it will create 450 new jobs at a $100 million distribution and warehouse park in Dorchester County. • Keurig Green Mountain announced in May 2019 it will construct a $350 million roasting and packaging facility and create 500 new jobs in Spartanburg County.

UNEMPLOYMENT RATE

2.6%, less than the

• Mortgage servicing company ServiceMac announced in December 2018 it will invest $24 million and create 1,000 new jobs over the next five years in its operations in Lancaster County.

HIGHLIGHTED PROGRAM OR INITIATIVE South Carolina is taking a note from Arkansas and last year rolled out its Be Pro Be Proud initiative in May 2019. The program uses customized 18-wheeler which will travel through the state and serve as a mobile skilled trades workshop at schools, football games, and fairs.

BIG DEALS

”We could not have done this without the help of the economic development team and the county's leadership. South Carolina is quickly becoming a leader in renewable energy thanks to the commitment of counties like Darlington.” —Paul Fleury, Chief Development Officer, Southern Current “We have seen significant growth in this area of the country and customers are even asking us to evaluate opportunities in South Carolina specifically. With that in mind, we got ahead of the curve to offer premier facilities in one of the hottest emerging markets in the country.” —Steve Hess, Vice President of Real Estate Development, Steve Hess

• W International announced in December 2018 it will create 600 jobs at a $35 million production facility in Berkeley County.

2020 CEO GUIDE TO SITE SELECTION 59


2020 CEO GUIDE TO SITE SELEC TION

South Dakota “Advancements in economic development are happening across South Dakota in communities large and small. As professionals, educators, and parents, it is our responsibility to build a state, an economy, and a future where the next generation of South Dakotans can prosper.” —Gov. Kristi Noem

TAXES No corporate income tax

#3 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION

84% of students

graduated high school in 2017

27.8% of adults age 25+ have a bachelor’s degree or higher

EXPLORING POTENTIAL IN CYBER

BIG DEALS

The Mount Rushmore State is striving to expand its economic diversity beyond its agricultural base. A strong pipeline of talent combined with a low population density, lack of skyscrapers and a land-locked location makes the state a good location for cybersecurity development, says Gov. Kristi Noem. The new Madison Cyber Lab opened in October 2019 at Dakota State University to help inspire, educate and lead the future of technology and cyber in the state.

• Agropur broke ground in February 2018 on a new cheese processing plant in Lake Norden.

KEY INCENTIVES

• Ag Processing opened in June 2019 its new facility in Aberdeen.

Workforce Development Program: Offers to fund up to 50% of eligible training expenses, typically up to $500 per trainee, for companies that meet certain criteria. Reinvestment Payment Program: Offers reinvestment payments to projects in excess of $20 million, or to equipment upgrades in excess of $2 million, for projects that would not have occurred without the reinvestment payment. Revolving Economic Development and Initiative (REDI) Fund: Offers a low-interest loan to cover up to 45% of a projects total cost for startups and businesses that are expanding or relocating in the state and make a minimum 10% equity contribution. Proof of Concept: Offers up to $25,000 to conduct research that demonstrates the technical and economic feasibility of an innovation before it is commercialized.

EDCS

3%, less than the national

South Dakota Governor’s Office of Economic Development sdreadytowork.com

RIGHT TO WORK STATE

Sioux Falls Development Foundation siouxfallsdevelopment.com

QUALITY OF LIFE

Elevate Rapid City Division Economic Development rapiddevelopment.com

UNEMPLOYMENT RATE

average of 3.6%

Yes

#20

POPULATION GROWTH 8.4% increase between 2010 and 2018

The Rushmore Region rushmoreregion.com

HIGHLIGHTED PROGRAM OR INITIATIVE The Connect South Dakota initiative aims to bring highspeed broadband Internet coverage to underserved communities across the state so children can better excel in education and become better prepared for the workforce. In 2019, the South Dakota Legislature allocated $5 million to eight projects.

60 2020 CEO GUIDE TO SITE SELECTION

• Terex Utilities announced in September 2018 a $95 million investment in Watertown that will create 800 new jobs. • Smithfield Foods announced in December 2018 it will invest $45 million in its operations in Sioux Falls and add 70 new jobs.

• Madison Cyber Labs celebrated its grand opening in October 2019 at Dakota State University in Madison. • Performance Pet Products celebrated in October 2019 the grand opening of a new facility in Mitchell.

BIG COMPANIES Walmart Shaw Industries Hy-Vee Tyson Fresh Meats Citibank South Dakota NA Larson Manufacturing

C-SUITE TESTIMONIALS “Omega Liner Company found working with GOED very helpful in starting up a new business. The finance packages available along with the state sales tax considerations are valuable assets for a new business. The people at GOED are dedicated to assisting businesses in South Dakota and creating more jobs.” —Gary Storm, President, Omega Liner Co. “We’ve been in business for more than 15 years, and our partnership with the State of South Dakota has equated to more growth and success than we could have imagined.” —Doug Sangl, Co-Owner, Ruff Land Kennels/Rough Tough Kennels “South Dakota is a great place to do business. It’s very business-friendly and helpful. They want to get out of your way and let you grow your business. The tax climate is very good, one of the best, and the people are fantastic. We always have a great workforce with a good work ethic.” —Jay Bender, President, Falcon Plastics


2020 CEO GUIDE TO SITE SELEC TION

Tennessee

VOLUNTEERING TO GROW

“The lives of Tennesseans are changed when quality jobs are created in our communities, and I’m focused on attracting good jobs and investment to rural Tennessee.” —Gov. Bill Lee

TAXES 6.5% top corporate income tax rate

#16 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

90% of students

graduated high school in 2017

26.1% of adults ages 25+ have a bachelor’s degree or higher

UNEMPLOYMENT RATE

3.4%, less than the

national average of 3.6% RIGHT TO WORK STATE

According to a report by the UT Boyd Center for Business and Economic Research, the Volunteer State’s economy is projected to experience solid growth in the coming years. Things are especially looking up in Nashville and Middle Tennessee where SmileDirectClub, EY and Pilot.com have announced investments in the past year.

KEY INCENTIVES Job Tax Credit: Offers up to $4,500 per job to offset up to 50% of franchise and excise taxes in any year with a carry forward of up to 15 years. Must create at least 25 jobs within three years and invest at least $500,000. Industrial Machinery Tax Credit: Offers from 1% to 10% for the purchase, third-party installation and repair of qualified industrial machinery. Sales and Use Tax Credits: Offers a credit for qualitied personal property purchased for a qualified headquarters facility. Sales and Use Tax Exemptions: Offers exemptions for various equipment and machinery for manufacturing, warehouse/distribution, call centers, data centers and research and development activities.

EDCs Tennessee Department of Economic and Community Development tnecd.com Tennessee Valley Authority tva.com/Economic-Development Greater Chattanooga Economic Partnership greaterchatt.com The Memphis Economy thememphiseconomy.com

Yes

Nashville Area Chamber of Commerce nashvillechamber.com/economic-development

QUALITY OF LIFE

Knoxville-Oak Ridge Innovation Valley knoxvilleoakridge.com

#30

POPULATION GROWTH

6.7% between 2010 and 2018

HIGHLIGHTED PROGRAM OR INITIATIVE Implemented in 2017, the state’s Drive to 55 program is striving towards having 55 percent of Tennesseans equipped with a college degree or certificate by the year 2025. The Tennessee Promise scholarship program helps more high school graduates attend college, and the Tennessee Connect program, which started in the fall of 2018, offers free tuition to community or technical colleges for those adults who do not already have an associate or bachelor degree.

BIG DEALS

• Pilot.com announced in June 2019 it will create more than 450 jobs in Nashville. • Mitsubishi Motors North America announced in June 2019 it will invest $18 million to move its U.S. headquarters to Franklin, bringing 200 jobs. • Western Express announced in April 2019 it will create 225 jobs and invest $88 million in an expansion in Davidson County. • SmileDirectClub announced in March 2019 it will invest $217 million to expand its headquarters and facilities in Middle Tennessee and expects to create more than 2,000 jobs. • JNJ Express announced in February 2019 it will create 610 jobs and invest $83 million to expand in Memphis. • Volkswagen announced in January 2019 it will create 1,000 new jobs and invest $800 million to create its first electric vehicle manufacturing facility in North America in Chattanooga. • EY announced in November 2018 it will invest more than $20 million and create 600 jobs over the next five years at a new facility in Nashville.

BIG COMPANIES 11 Fortune 500 companies headquartered in state, including: FedEx HCA Holdings Dollar General Community Health Systems International Paper Unum Group AutoZone Eastman Chemical LifePoint Health Tractor Supply

C-SUITE TESTIMONIALS “There is no place we would rather build our future home than in this city and this county. We appreciate the support of the city and county, EDGE, the State of Tennessee and TVA in making this project feasible at this location. We look forward to being a growing presence in this community for decades to come.” —John Ennis, Jr., CEO, JHJ ”Nashville was always at the top of our list of candidate locations for a second office. The city has great schools, attracts incredible, diverse talent and is making smart investments to support its burgeoning startup scene. I also know first-hand that it's a great place to live and raise a family.” —Jessica McKellar, Founder, Pilot.com

• Lightning Source announced in June 2019 it will create nearly 150 jobs and invest $22 million at a facility in Nashville. 2020 CEO GUIDE TO SITE SELECTION 61


2020 CEO GUIDE TO SITE SELEC TION

Texas “From Toyota to Mitsubishi, leading manufacturing and tech companies have found a home in Texas because of our shared values and commitment to the free enterprise system. I look forward to strengthening these critical relationships and building a brighter future for all those who do business and call Texas home.” —Gov. Greg Abbott

TAXES No corporate income tax

#15 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION 90% of students graduated high school in 2017

28.7% of adults age 25+ have a bachelor’s degree or higher

UNEMPLOYMENT RATE 3.4%, less than the national average of 3.6%

BIG JOBS FOR A BIG STATE

BIG DEALS

The Lone Star State has ranked #1 in Chief Executive’s Best and Worst States for Business survey since its inception. Texas is noted for talented workforce, high quality of life in urban areas, and a relatively low cost of living. In recent years, there has been a trend of technology and manufacturing companies migrating here from other high-cost areas such as California. Foreign investment is also on the rise with more than 1,500 foreign owned companies operating in the state.

• Cognizant opened in August 2018 its Regional Technology and Service Delivery Center in Austin with 1,000 new jobs.

KEY INCENTIVES

Skills Development Fund: Offers up to $1,800 per trainee to assist Texas public community and technical colleges to finance customized job training for local businesses.

• Navistar announced in September 2019 it will invest $250 million in a manufacturing facility and create 600 jobs in San Antonio. That same month, Toyota announced a $391 million expansion of its plant in the city, and Aisin AW announced a $400 million plant and 900 new jobs in Cibolo.

Texas Enterprise Zone Program: Offers various state sales and use tax refunds ranging from $2,500 to $7,500 per job for state-approved projects in designated communities. Texas Capital Fund Infrastructure Program: Offers from $50,000 to $750,000 towards public infrastructure upgrades needed to assist a business that commits to create and retain permanent jobs, primarily for low and moderate-income persons.

EDCs Texas Economic Development Council texasedc.org Greater Houston Partnership houston.org San Antonio Economic Development Foundation sanantonioedf.com

QUALITY OF LIFE

Austin Chamber of Commerce Economic Development austinchamber.com/economic-development

POPULATION GROWTH 14.1% increase between 2010 and 2018

HIGHLIGHTED PROGRAM OR INITIATIVE

62 2020 CEO GUIDE TO SITE SELECTION

• Uber announced in August 2019 it will establish its U.S. General and Administrative Hub in Dallas with 3,000 new jobs and a $75 million investment. • Realtor.com announced in August 2019 an expansion of its office in Austin and the creation of 200 jobs.

RIGHT TO WORK STATE

#38

• European networking provider Brodynt opened in its US headquarters in Austin in August 2019.

Texas Enterprise Fund: The largest deal closing fund of its kind in the nation offers cash grants for projects that create at least 75 full-time jobs that meet or exceed the county average wages.

City of Dallas Office of Economic Development dallasecodev.org

Yes

• Amazon announced in March 2019 it will create 800 tech jobs at its expanded tech hub in Austin..

MoveFWD, a Workforce Collaborative of Central Texas founded in 2018, helps residents in the region establish careers in thriving industries that provide benefits and job stability. The initiative aims to train disadvantaged workers in in CDL trucking, roadway construction and call center customer service. Training programs designed in coordination with employers help ensure participants meet needs for current jobs.

• McLaren North American announced in 2019 it will move its headquarters from New York City to Coppell.

BIG COMPANIES More than 50 Fortune 500 companies headquartered in state, including: Exxon Mobil AT&T Phillips Valero Energy Dell Technologies Sysco American Airlines Group Halliburton Kimberly-Clark Whole Foods GameStop

C-SUITE TESTIMONIALS “Our new office will help us take advantage of everything this great city has to offer—tech, talent and terrific downtown location—as we continue to grow as a leading innovator in the real estate industry.” —Ben Rubenstein, CEO and Founder, Opcity “In the last four years, we have created more than 1,000 jobs in Austin. With a strong pool of technical talent in Austin and a dynamic quality of life, we are excited to continue to expand and create more opportunity in this vibrant city.” —Terry Leeper, General Manager, Amazon’s Austin Tech Hub


Breaking Ground and Reaching New Heights in Cedar Hill, Texas Towering above the Metroplex at 880 feet, Cedar Hill is the highest elevation from here to the Gulf of Mexico. Add this feature to the beautiful, rare environment and it’s the place businesses continue choosing to call home. A variety of companies are capturing strong dividends on opportunities throughout the city and partners in progress continue pioneering its future. Saddle up and let’s get started on your next big project.

www.cedarhilledc.com

66 2020 CEO GUIDE TO SITE SELECTION


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2020 CEO GUIDE TO SITE SELEC TION

Utah

BOOMING ECONOMIC AND POPULATION GROWTH IN THE BEEHIVE STATE

“With positive job growth in every sector, Utah is now the healthiest and most diverse economy in the nation today.” —Gov. Gary Herbert

TAXES

4.95% top corporate income tax rate

#8 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 86% of students graduated high school in 2017

32.5% of adults age 25+ have a bachelor’s degree or higher

UNEMPLOYMENT RATE 2.5%, less than the national average of 3.6%

Utah is the third-fastest growing state in the nation by percentage, with nearly 2% population growth between 2017 and 2018. Economic growth in the Silicon Slopes and a high quality of living is attracting both talent and employers. Tech companies Teem and Quick Base have both announced in the past year notable expansions of their Salt Lake City operations

KEY INCENTIVES Economic Development Tax Increment Financing: Offers a refundable tax credit of up to 30% of new state revenues paid over the life of the project for companies that create at least 50 jobs paying wages of 100% of the county average.

2010 and 2018

BIG COMPANIES

C-SUITE TESTIMONIALS

Utah Governor’s Office of Economic Development business.utah.gov

“We have enjoyed tremendous success in Utah in large part because this is such a great place to find and attract talent….We are excited to work with Governor Herbert’s administration to continue to expand our team and create economic opportunity in the place we call home.” —Shaun Ritchie, CEO, Teem

Economic Development Corp. of Utah edcutah.org Salt Lake City Economic Development slc.gov/ed

HIGHLIGHTED PROGRAM OR INTITIATIVE

POPULATION GROWTH

• GOEX announced in June 2019 a $15 million expansion in the state that will add up to 100 jobs.

EDCs

QUALITY OF LIFE

14.4% increase between

• Infab Corporation announced in May 2019 it will expand operations in the state and create more than 90 jobs in the next five years.

Life Science and Technology Tax Credit: Offers post-performance tax credit for up to 35% of the investment over a period of three years.

Rural Fast Track (RFT): Offers up to $50,000 in grant and incremental funding for projects creating new jobs that pay greater than the county average wage.

Utah Valley Economic Development Partnership utahvalleyinformation.com/utahvalley

#4

• Quick Base announced in May 2019 it will expand its facility in Salt Lake City and create more than 485 jobs over the next five years.

SkyWest Airlines Alsco eBay Goldman Sachs JetBlue Delta Airlines C.R. England Adobe Vivint

RIGHT TO WORK STATE

Yes

• Tyson Fresh Meats announced in May 2019 a $300 million food production plant in the Salt Lake City area that will create 1,200 jobs within three years.

Talent Ready Utah helps businesses enhance education through activities such as internships, job shadows, industry tours and classroom presentations. The program recently expanded the Utah Aerospace Pathways program in Tooele County to foster more interest in the industry among high school students.

BIG DEALS • Teem announced in January 2019 it will expand its operations in Salt Lake City and create up to 250 jobs over the next five years. • Food manufacturer Oatly announced in January 2019 a $40 million expansion of its operations in Weber County.

“Salt Lake City has become a vibrant technology hub with an impressive pool of talent, which made it an obvious choice as we looked for locations for our second office.” —Rick Willett, CEO, Quick Base “We believe Utah is a great location because of the availability of labor and property and the access to highways and rail. Once built, the new facility will help us meet growing demand for case ready meat in the western U.S.” —Nate Hodne, Senior Vice President and General Manager of Case Ready Meats, Tyson Fresh Meats “Our new Cedar City, Utah location supports GOEX’s ongoing commitment to ensure timely delivery of extruded sheet products… And we are eager to witness firsthand the great things we have been told about the workforce in southwest Utah.” —Joshua Gray, President and CEO, GOEX

2020 CEO GUIDE TO SITE SELECTION 65


2020 CEO GUIDE TO SITE SELEC TION

Vermont

ECONOMIC GROWTH IN THE GREEN MOUNTAIN STATE

“Growing Vermont’s workforce and supporting all of Vermont’s 251 communities is a top priority for my administration…As we work together to make employment and training opportunities available to all Vermonters, I’m encouraged to know that global technology leaders like Amazon see the value Vermont workers bring to the table.”—Gov. Phil Scott

TAXES

8.5% top corporate income tax rate

#41 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

89% of students

graduated high school in 2017

36.8% of adults age 25+

As of October 2019, Vermont had the lowest unemployment rate in the nation. While that’s partly attributed to the fact that the slow population growth is putting a damper on hiring, the small state is seeing new economic opportunities. Companies such as GE Aviation and Beta Technologies have driven aerospace to a $2 billion industry in the state, and Canadian companies such as iSun Energy and MITI Manufacturing have announced investments here in the past year.

KEY INCENTIVES Vermont Employment Growth Incentive: Offers cash payments to companies that meet milestones for job creation, payroll and capital investments. Enhancements available for green businesses and those that create jobs in specific labor markets. Vermont Training Program: Offers grants to cover up to half of the cost of training for new hires and incumbent workers. R&D Credit: Offers a state tax credit of up to 27% of the federal tax credit for research and development expenses.

• Canadian company MITI Manufacturing opened a new facility in St. Johnsbury in October 2019.

BIG COMPANIES

Vermont Agency of Commerce and Community Development accd.vermont.gov/economic-development

“Because of the Vermont Training Program and the Vermont Employment Growth Incentive, NuHarbor is expanding our workforce in Vermont: we’re moving to a larger office space and ramping up hiring.” —Justin Fimlaid, Managing Director, NuHarbor

Burlington Community and Economic Development Office www.burlingtonvt.gov/CEDO

#5

66 2020 CEO GUIDE TO SITE SELECTION

• Benchmark Space Systems announced in August 2019 an agreement with Firefly Aerospace in Austin to demonstrate new space technology in 2020.

C-SUITE TESTIMONIALS

UNEMPLOYMENT RATE

POPULATION GROWTH 0.1% decrease between 2010 and 2018

• NuHarbor Security announced in June 2019 it would add employees at its headquarters in Vermont and received a total of nearly $325,000 from the Vermont Training Program and the Vermont Employment Growth Incentive.

EDCS

Montpelier Development Corporation www.mdc-vermont.com

QUALITY OF LIFE

• Amazon announced in February 2019 it will begin hiring several dozen remote workers in the state for positions in Virtual Customer Service.

Vermont Brownfield Revitalization Fund: Offers loans and grants to private developers, non-profits and municipalities for the remediation of brownfield sites.

Think Vermont www.thinkvermont.com

national average of 3.6%

• Canadian firm iSun Energy LLC announced in November 2018 the opening of its first U.S. office in Burlington.

Logic Supply Dealer.com Revision Military WyWebGrocer Keurig Green Mountain

have a bachelor’s degree or higher

2.2%, less than the

BIG DEALS • Chroma Technology Corp completed in November 2018 an $22 million expansion of is facility in Bellows Falls that will add or retain 133 jobs.

HIGHLIGHTED PROGRAM OR INITIATIVE The Remote Worker Grant Program offers workers reimbursement grants of up to $5,000 (and $7,500 in some cases) for relocation expenses incurred in moving to the state and setting up a remote workspace.

“The team representing the State of Vermont was instrumental in our decision to locate in Burlington… Their persistent and time-sensitive responses to our questions, as well as the encouraging environment that Vermont has set up for its startup constituents, were important factors in our decision-making process.” —Sass Peress, CEO, Renewz Sustainable Solutions “In Vermont, we have found quality employees as well as professional fabrication partners in a favorable business environment. We are very proud to call Vermont our home. We look ahead to a bright future here for MITI Co.” —Jean-Patrick (JP) Lariviere, owner, MITI Manufacturing


2020 CEO GUIDE TO SITE SELEC TION

Virginia “I am proud that we have been able to expand and diversify Virginia’s economy and make targeted investments that strengthen our public education, infrastructure, and workforce development systems…. My administration will stay focused on connecting job seekers with the skills and training that employers are looking for, helping Virginia businesses grow and compete, and recruiting private sector investment to every corner of the Commonwealth.” —Gov. Ralph Northam

OLD STATE, NEW OPPORTUNITIES

BIG DEALS

Old Dominion is attracting new investment with its high quality of life, educated workforce and business-friendly environment. Volvo Trucks now has its largest facility in the world operating in Pulaski County, and Microsoft recently made its sixth expansion in the state. Amazon is also in the process of planning its HQ2 in Arlington, which is expected to create more than 25,000 jobs in the area in the next decade.

• Klöckner Pentaplast announced in January 2019 a $25 million investment and 34 jobs in at its Richmond facility.

KEY INCENTIVES

• Hershey Company announced in May 2019 it will create 65 jobs and invest $104 million to expand operations in August County.

Virginia Jobs Investment Program: Offers discretionary services and funding to companies to create new jobs or implement technological change to reduce human resource development costs for new or expanding companies. Commonwealth’s Development Opportunity Fund (COF): Offers “deal-closing” funds at the governor’s discretion to secure expansions or locations in Virginia when there is serious competition from other states.

• Microsoft announced in January 2019 the creation of more than 100 jobs in its sixth expansion in Mecklenburg County since 2010. • HalioDx announced in February 2019 it will expand its North American operations and establish a facility in the VA Bio+Tech Park.

• Volvo announced in June 2019 a $400 million expansion and 777 jobs in Pulaski County. The Volvo Trucks facility is now the largest in the world with 1.6 million square feet and 3,500 employees. • Aieron announced in July 2019 an expansion of its headquarters in Fairfax County and the creation of up to 50 jobs in the next three years.

Major Eligible Employer Grant Program (MEE): Offers cash grants of up to $25 million for projects with at least $100 million in capital investment that create a minimum of 1,000 new jobs.

• Pharmaceutical Product Development announced in September 2019 up to 200 new jobs at a $63.7 million expansion of its bioanalytical lab in Henrico County.

BIG COMPANIES

#22 on the Tax

Virginia Economic Development Incentive Grant (VEDIG): Variable grant determined by the Secretary of Commerce and Trade and on the recommendation of VEDP for companies that locate significant headquarters, administrators of service sector operations in the state.

EDUCATION

Virginia Economic Development Partnership vedp.org

graduated high school in 2017

Richmond Economic Development Authority richmondeda.org

37.6% of adults age 25+

Greater Richmond Partnership grpva.com

TAXES

6% top corporate income tax rate

Foundation’s State Business Tax Climate Index ranking

87% of students

have a bachelor’s degree or higher

UNEMPLOYMENT RATE

2.6%, less than the

national average of 3.6% RIGHT TO WORK STATE

Yes

QUALITY OF LIFE

#7

POPULATION GROWTH

6.5% increase between 2010 and 2018

EDCs

Virginia Beach Economic Development yesvirginiabeach.com/Pages/index.aspx Norfolk Department of Economic Development norfolkdevelopment.com

HIGHLIGHTED PROGRAM OR INITIATIVE The Virginia Leaders in Export Trade (VALET) program assists Virginia exporters that have firmly established domestic operations in the state and are committed to international growth as an export strategy. The program provides participating companies with export planning services and assistance from a team of experienced providers to help companies meet their goals.

21 Fortune 500 companies headquartered in the state, including: Freddie Mac General Dynamics Capital One Financial Northrop Grumman DXC Technology Dollar Tree Altria Group CarMax Norfolk Southern Booz Allen Hamilton

C-SUITE TESTIMONIALS “Mecklenburg County has been a good home for Microsoft, and we’re committed to supporting the community through local partnerships to help deliver economic, social and environmental benefits such as expanding access to high-speed broadband services and supporting skills training for positions in the information technology industry.” —Noelle Walsh-Elwell, Corporate Vice President, Cloud Operations + Innovation, Microsoft “Our location in Virginia will allow us to closely interact with all laboratories and hospitals in the region while benefitting from a quite competitive offering from the local authorities, including the Virginia Bio cluster.” —Stéphane Debono, CEO, HalioDx

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2020 CEO GUIDE TO SITE SELEC TION

Washington GOING GREEN

““Washington state

consistently ranks as both the best economy in the nation and the best place for workers. This is an exceptional place to live, work, raise a family and open a business. And we are working hard to make sure all Washingtonians have an opportunity to benefit from our growth and success.” —Gov. Jay Inslee

TAXES No corporate income tax

#20 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION 79% of students graduated high school in 2017

34.5% of adults age 25+ have a bachelor’s degree or higher

UNEMPLOYMENT RATE 4.5%, greater than the national average of 3.6% QUALITY OF LIFE

#1

POPULATION GROWTH

12.1% increase between 2010 and 2018

While the Evergreen State remains a thriving hub for tech and Fortune 500 companies such as Amazon and Microsoft, new opportunities may be arising in maritime and clean energy. Initiatives such as the Washington Maritime Blue 2050 and the Clean Energy Fund aim to drive new economic growth in sustainability and the shift towards decarbonization.

KEY INCENTIVES B&O Credits: Offers tax credits of up to $4,000 per position for jobs in manufacturing, R&D laboratories and commercial testing facilities in rural counties that pay wages of $40,000. Committed Private Partner Program (CERB): Offers grants of up to $150,000 and loans of up to $2 million for the construction of public infrastructure to support business expansion. Reduced B&O Rate for Aerospace Business: Offers a reduction in B&O tax liability for manufacturers and processors for hire in the aerospace sector. B&O Tax Credit for Washington Customized Training Program: Offers a tax credit of up to 50% of the full cost of a training program with up to $500,000 in training allowances per year.

EDCS Washington State Department of Commerce commerce.wa.gov/growing-the-economy Choose Washington State choosewashingtonstate.com Seattle Office of Economic Development seattle.ecdev.org Greater Spokane Incorporated advantagespokane.com Make it Tacoma makeittacoma.com

HIGHLIGHTED PROGRAM OR INITIATIVE The Washington Maritime Blue 2050 Initiative aims to bolster innovations in the maritime sector that create living-wage jobs, protect the environment and enhance sustainability in the industry.

BIG DEALS • Microsoft announced in January 2019 it will partner with nonprofit groups and invest $500 million to address the affordable housing crisis. The initiative is partly to address the area around its Redmond headquarters, where it is adding 8,000 new jobs in the coming years.

68 2020 CEO GUIDE TO SITE SELECTION

• McCain Foods USA announced in May 2019 a $300 million investment in its potato processing facility in Othello. • Katerra announced in September 2019 the grand opening of a $35 million cross-laminated timber factory in Spokane Valley and the creation of 200 new jobs.

BIG COMPANIES 11 Fortune 500 companies headquartered in state: Amazon.com Costco Microsoft Starbucks Paccar Nordstrom Expedia Alaska Air Group Expeditors Intl. of Washington Weyerhaeuser Fortive

C-SUITE TESTIMONIALS “Relocating our headquarters to Clark County, Washington from the Silicon Valley was one of the best decisions we have made at Realwear. As a startup, we are hyper-focused on keeping costs down and we have seen nearly a 2-to-1 increase in our spending power per dollar across the board. The local talent has been abundant and highly impressive.” —Andy Lowery, CEO, RealWear “Building and growing a great business requires equally great relationships. We are very pleased with the relationship we have with the State of Washington, Adams County and the City of Othello. The grant funding provided facilitates our expansion and confirms the business friendly and supportive role of government to our international leadership.” —David E. Stewart, President, SVZ-USA Washington “We will be doubling our presence in Tacoma to take advantage of the ongoing innovation in the area and the cybersecurity and analytics leadership coming from local universities such as University of Washington Tacoma.” —Ashish Gupta, Chief Marketing Officer, Inflobox


2020 CEO GUIDE TO SITE SELEC TION

West Virginia “I’ve said for a long time that our people won’t tolerate being 50th anymore. But to see us jumping up to #1 in the entire country, over and over again, in so many different categories of economic growth, it’s truly phenomenal…. There’s no way around it, with West Virginia on the national stage time and again, this is one of the best years in the history of our state’s economy!” —Gov. Jim Justice

TAXES

6.5% top corporate income tax rate

#19 on the Tax

Foundation’s State Business Tax Climate Index ranking

MOVING UP IN THE MOUNTAIN STATE

BIG DEALS

There’s no hiding the fact that West Virginia has often ranked near the bottom of many national rankings. While the opioid crisis and the decline of coal is also hampering the Mountain State’s reputation, the tide is starting to turn. The Department of Commerce announced that the state leads the nation in GDP growth for the first quarter of 2019, and it has now attracted more than $5 billion in investment since 2017.

• Software and technology provider Sparksoft Corporation announced in May 2018 plans to locate an office in Fairmont.

KEY INCENTIVES West Virginia Economic Development Authority Direct Loan Program: Offers financial assistance in the form of loans, direct financing and operating leases to industrial development agencies and enterprises. Special Property Valuation: Offers up to a 95% reduction in property taxes for certain sectors, including chemicals, polymer metals, data centers and aviation. Manufacturing Investment Credit: Offers a tax credit against up to 60% of the corporate net income tax base on qualified investments in an eligible manufacturing facility. Governor’s Guaranteed Work Force Program: Offers up to $2,000 per employee or new or expanding companies for training and technical assistance to perform training strategies.

EDCs

EDUCATION

West Virginia Department of Commerce westvirginia.gov

graduated high school in 2017

Charleston Area Alliance charlestonareaalliance.org

19.9% of adults age 25+

Huntington Area Development Council hadco.org

89% of students

have a bachelor’s degree or higher

UNEMPLOYMENT RATE 4.8%, greater than the national average of 3.6% RIGHT TO WORK STATE

Yes, under litigation QUALITY OF LIFE

#47

POPULATION GROWTH

2.5% decrease between

HIGHLIGHTED PROGRAM OR INITIATIVE The Apprenticeship in Motion program promotes and expands the nontraditional apprenticeship activity in the Mountain State. Benefits to businesses include training summits for integrating apprenticeship models into HR practices, connections with senior business leaders, curriculum design and program orientation help and access to quality workers who are ready to learn.

• Toyota announced in March 2019 a $111 million investment and 123 new jobs at its plant in Buffalo. • Tasty Blend Foods completed a $3 million expansion in June 2019 on its facility in Putnam County. • Italian manufacturing Pietro Fiorentini held a ribbon-cutting ceremony in July 2019 for a $9 million facility in Weirton. • Hino Trucks opened in August 2019 its manufacturing facility in Mineral Wells and announced an additional $40 million investment that will add another 250 jobs.

BIG COMPANIES Hino Motors Manufacturing USA Proctor & Gamble Toyota Mylan Pharmaceuticals Murray American Energy Amazon TeleTech ResCare

C-SUITE TESTIMONIALS “We’re very pleased to announce the opening of our new location in Weirton, West Virginia…. This is not only an opportunity to bring more jobs to the area, but is also a milestone, allowing us to expand our manufacturing capabilities locally in the United States.” —Mario Nardi, CEO, Pietro Fiorentini Group “By bringing Snak-Time Foods to West Virginia, we can provide top quality products and service the needs of our foodservice and retail customers with true made-inWest-Virginia products.” —Roy Elswick, President, Tasty Blend “We are proud to add such a significant cost investment to Toyota West Virginia—not only financially but also in adding team members to the Toyota family…. Doubling our production of hybrid transaxles in West Virginia solidifies our facility’s role in producing next generation engines and transmissions that will drive the future of Toyota’s advanced mobility technology.” —Leah Curry, President, Toyota Manufacturing West Virginia

2010 and 2018

2020 CEO GUIDE TO SITE SELECTION 69


2020 CEO GUIDE TO SITE SELEC TION

Wisconsin

OPPORTUNITY GROWS IN THE BADGER STATE

“Southeast Wisconsin is increasingly becoming a destination of choice for high-value manufacturing jobs that require a skilled, educated workforce.” —Gov. Tony Evers

TAXES 7.9% top corporate income tax rate

#32 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION 89% of students graduated high school in 2017

29% of adults age 25+

have a bachelor’s degree or higher UNEMPLOYMENT RATE

3.3%, less than the

national average of 3.6% RIGHT TO WORK STATE

Wisconsin has attracted more foreign investment in recent years, especially from food manufacturing and life science companies that aim to access the state’s natural resources and educated workforce. Notable projects in the past year include a new headquarters for Komatsu Mining Corporation, a $200 million investment by Kimberly-Clark Corporation, and a $190 R&D facility by Promega Corporation.

KEY INCENTIVES Manufacturing and Agriculture Tax Credit: Offers a tax credit of up to 7.5% of eligible qualified production activities income to individuals and entities for income derived from manufacturing or agricultural property located in the state. Enterprise Zone Program: Offers refundable tax credits to reduce state income tax liability or provide a refund, helping enhance cash flow to either expand projects, accelerate the timing of the project, or enhance payroll. Qualified New Business Venture Program: Offers tax credits of up to 25% of the value of the investment made in the company to eligible angel and venture fund investors who make cash equity investments in qualified early-stage businesses. Historic Preservation Tax Credit Program: Offers transferable tax credits of up to 20% of the costs to eligible entities rehabilitating certified historic buildings. Community Development Programs: Wisconsin’s Brownfields Grant Program, Idle Sites Redevelopment Program, Site Assessment Grant Program and Community Development Investment Grant Program combine to help companies and communities revitalize underused commercial properties.

Yes

QUALITY OF LIFE

EDCs

#11

Wisconsin Economic Development Corporation wedc.org

POPULATION GROWTH

Wisconsin Economic Development Partnership mke7.com

2010 and 2018

Madison Region Economic Partnership madisonregion.org

2.2% increase between

HIGHLIGHTED PROGRAM OR INITIATIVE Hiring Our Heroes, Wisconsin’s talent attraction program has earned national attention for its targeted outreach to transitioning military services members and their families. In addition to media and initiative-specific interactive tool development, the program relies heavily on face-to-face interaction with service members throughout the country to connect them with career and educational opportunities.

70 2020 CEO GUIDE TO SITE SELECTION

BIG DEALS • Allegheny Technologies announced in March 2018 a $95 million expansion of its operations in Cudahy with the potential to create 125 jobs. • Green Bay Packaging announced in June 2018 the creation of 200 jobs at a $500 million paper mill expansion. • Komatsu Mining announced in September 2018 a $285 million state-of-the-art headquarters and manufacturing campus in Milwaukee with the potential to create over 400 jobs. • Kimberly-Clark announced in December 2018 plans to invest up to $200 million in its Neenah Cold Spring Facility over the next five years. • Promega announced in January 2019 up to 100 jobs at a $190 million R&D facility in Fitchburg. • Sub-Zero Group announced in July 2019 a $70 million expansion of its operations in Fitchburg and 100 jobs.

BIG COMPANIES 10 Fortune 500 companies headquartered in state: Johnson Controls Northwestern Mutual Life Manpower Kohl’s Oshkosh Corporation American Family Insurance Harley-Davidson Rockwell Automation Manitowoc Fiserv

C-SUITE TESTIMONIALS “We are preserving existing jobs, laying the groundwork for new employment opportunities, investing in the workforce of tomorrow and helping attract talent to the area. Milwaukee is a great place for manufacturing. We are proud of our history here and excited to start building our future.” —John Koetz, President, Surface Mining, Komatsu Mining “The state of Wisconsin, with its persuasive and attractive incentive programs, made it an easy choice to set up shop in Prescott. DMC received substantial financial help from the city and state, which ensure we could build a factory large enough on adequate land space to accommodate the company’s immediate needs and allow for potential growth.” —Ram Motilall, President, Diversified Manufacturing “Many of our best suppliers are found right here in the state of Wisconsin because of the cost competitiveness that they have, because of the quality of work that they do with their products and services.” —David Kohler, President and CEO, Kohler


2020 CEO GUIDE TO SITE SELEC TION

Wyoming

COWBOYS, INNOVATION AND CRYPTOCURRENCIES

“Here in Wyoming, we will continue to seek innovative solutions that support coal, address climate change, and grow our economy… We in Wyoming are anxious to lead the way to a brighter future, not by following political fashion, but by rolling up our sleeves, doubling down on research and innovation, and solving our world’s energy problems.” —Gov. Mark Gordon

TAXES No corporate income tax

#1 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION

86% of students

graduated high school in 2017

26.7% of adults age 25+ have a bachelor’s degree or higher

UNEMPLOYMENT RATE 3.8%, greater than the national average of 3.7%

In addition to capitalizing on its natural resources, the Cowboy State is fueling new growth in tech and entrepreneurship. The KickStart:Wyoming initiative offers matching funds for federal SBIR awards, and hosts startup challenges around the state. Over the past couple of years, Wyoming has also enacted 13 laws to open the door for blockchain and cryptocurrency companies, making it one of the first states to define cryptocurrency as property and establish rules for banks to provide crypto custodial services.

KEY INCENTIVES No Taxes: No corporate or personal income tax. No inventory, franchise, occupation or value-added taxes. Business Ready Community Infrastructure Program: Offers financing of up to $3 million grant or low-interest loan for publicly-owned infrastructure that serves the needs of business and promote economic development. Workforce Development Training Fund: Offers grants up to $4,000 per trainee per fiscal year to upgrade skills, train for new positions or provide industry-specific training programs. Data Center Incentives: Offers cost reduction grants of up to $2.25 million to reimburse utility expenses for up to three years. Data centers are also exempt from Industrial Siting Permit, which can represent a savings of $500,000 and 18 months off new projects. Cryptocurrencies: Legislation passed in 2018 created a financial “sandbox” by allowing companies to apply for a two-year exemption from state statute.

Wyoming Business Council wyomingbusiness.org Wyoming Department of Administration & Information Economic Analysis Division eadiv.state.wy.us

QUALITY OF LIFE

Cheyenne LEADS cheyenneleads.org

#31

POPULATION GROWTH 2.5% increase between 2010 and 2018

Wyoming is trying to strengthen its startup space by offering funds for the federal Small Business Innovation Research or Small Business Technology Transfer programs, up to $100,000 for Phase 1 and up to $200,000 for Phase 2. In addition, the Wyoming Business Council also offers up to $25,000 in matching grants to local “Pitch Day” startup challenges.

BIG DEALS • Weatherby created 70 jobs and opened a 100,000-square-foot facility in Sheridan in June 2019. • Department of Defense contractor Kennon Products announced in January 2019 it would create 39 jobs at a new manufacturing facility in Sheridan. • Innovive announced in June 2019 it would create 94 jobs at a new $17 million manufacturing facility in Cheyenne. • Enviremedial Services, which relocated its manufacturing operations from California to Pinedal, announced 21 new jobs at another expansion in April 2019.

BIG COMPANIES J.R. Simplot Rocky Mountain Power Cloud Peak Energy Wyoming Machinery Ferrellgas Halliburton Walmart Distribution Sierra Trading Post

C-SUITE TESTIMONIAL EDCs

RIGHT TO WORK STATE

Yes

HIGHLIGHTED PROGRAM OR INITIATIVE

Greater Cheyenne Chamber of Commerce cheyennechamber.org Advance Casper caeda.net

“Wyoming stood out for a lot of reasons, and one of the main ones was that from the get-go, when we met the governor, he said ‘Here’s my number, shoot me a text any time.’ He responds to our needs quickly, and it shows a business like ours is important to Wyoming and that’s a big deal here.” —Adam Weatherby, CEO, Weatherby “Wyoming in general is really business-friendly. Sales tax is much lower than everywhere else and we don’t have to worry about corporate tax, income tax. There’s not a lot of that headache of things getting tied up in regulation.” —Trajan Vieira, Owner, Mercury Leather Works “Wyoming was very quick to come to the table. The whole approach by the state was very positive and we felt at home right away.” —Joe Sery, Founder, Tungsten Heavy Powder & Parts

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2020 CEO GUIDE TO SITE SELEC TION

Washington, D.C. “As we continue to build Washington, D.C. into the capital of inclusive innovation, we are investing in the ideas and people that otherwise might not get the support they need to ensure success.” —Mayor Muriel Bowser

TAXES

8.25% top corporate income tax rate

#46 on the Tax

Foundation’s State Business Tax Climate Index ranking EDUCATION

73% of students

graduated high school in 2017

DEVELOPMENT IN THE DISTRICT

BIG DEALS

While recent figures suggest the capital’s population and economic growth rates have been slowing, the region’s economy is still strong. Across the river, Fairfax County remains a strong driver in the metro area and is home to nearly two-thirds of the 16 Fortune 500 companies headquartered in the DC area. Mayor Muriel Bowser is now striving to ensure all residents share in the economic growth with new initiatives to improve jobs and access to affordable housing.

• BAE Systems announced in October 2018 the relocation of its headquarters and 350 jobs to Fairfax County.

KEY INCENTIVES

• Education tech firm Blackboard announced in January 2019 it would relocate its global headquarters to Fairfax County.

Qualified High-Tech Companies (QHTC): Offers tax credits to high-tech companies for training and wages paid to disadvantaged employees. Also offers sales and use tax exemptions and a reduced corporate franchise tax rate. Creative and Open Space Modernization Grant (DC): Offers a tax rebate of up to the lesser of 10% of the total value of qualified improvements or $1 million for QHTCs that renovate or improve their offices. Business/Professional/Occupational Licenses (BPOL) Tax Exemption (Fairfax County, Virginia): Offers exclusions and adjustments to BPOL taxes for software development companies and government computer hardware and software sellers.

56.6% of adults age 25+

Virginia Jobs Investment Program: Offers variable incentives for job creation for manufacturers, distribution centers, headquarters, inbound call centers, business IT and R&D.

UNEMPLOYMENT RATE

EDCs

national average of 3.6%

Washington, D.C. Economic Partnership wdcep.com

have a bachelor’s degree or higher

5.4%, greater than the

POPULATION GROWTH 16.7% increase between 2010 and 2018

DC Economic Strategy dceconomicstrategy.com Office of the Deputy Mayor for Planning and Economic Development dmped.dc.gov

HIGHLIGHTED PROGRAM OR INITIATIVE As the cost of living has risen dramatically in D.C., it has begun to impact recruitment and retention in some sectors. Mayor Muriel Bowser is working to identify new policies, tools and initiatives to fulfill a goal of creating 36,000 new housing units (12,000 of them affordable) by 2025.

72 2020 CEO GUIDE TO SITE SELECTION

• Ford announced in October 2018 it will construct a base of operations to test self-driving vehicles in Washington, D.C. • IDEMIA announced in December 2018 it would relocate its North American Identity & Security headquarters from Massachusetts to Fairfax County and create at least 90 jobs.

• Cybersecurity firm FireEye announced in April 2019 it would establish a new security operations center in Fairfax county and hire 300 employees. • Google announced in April 2019 it would expand its presence in Fairfax County. • Aireon, LLC, announced in July 2019 it will relocate its headquarters in Fairfax County and create more than 50 jobs over the next three years.

BIG COMPANIES 16 Fortune 500 companies are headquartered in Washington, D.C. region: Freddie Mac General Dynamics Capital One Financial Northrop Grumman Leidos Holdings Hilton Worldwide Holdings DXC Technologies NVR Booz Allen Hamilton

C-SUITE TESTIMONIALS “We continue to hire the best of the best as we work to achieve this mission every day, and our growing team of tech security experts located in the Dulles Tech Corridor is an important part of everything that we do.” —Kevin Mandia, CEO, FireEye “We are excited to bring our Metro D.C. area workforce together into a new global headquarters in the vibrant Northern Virginia tech corridor.” —Bill Ballhaus, Chairman, CEO and President Blackboard “We are excited to be relocating our headquarters to Reston in Fairfax County…Moving to Northern Virginia will enable both close proximity to our U.S. government customers and the ability to attract world-class talent.” —Ed Casey, CEO, IDEMIA Identity & Security North America


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