2023 Chief Executive CEO Guide to Site Selection

2023 CEO GUIDE TO SITE SELECTION

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THE 2023 CEO GUIDE TO SITE SELECTION

ANOTHER WAY IN THIS ERA OF BIG DATA AND ANALYTICS, in my mind the most underrated—and most important—metric in all of business is longevity. The ability to make a company happen for decades is one of the toughest feats imaginable, one that eludes the vast majority of firms that ever incorporate.

That thought crossed my mind when I had the honor of attending the 90th anniversary celebration for Ethan Allen in December. What’s always impressed me—Wall Street less so, to be sure—about the Danbury, Connecticut–based furniture “If we didn’t have the maker and its longtime CEO, Farooq Kathwari, is their decision to take ability to have a vertically the long view and to lead for (as Jim Collins sometimes puts it) the quarintegrated company, we ter century, not the quarter. wouldn’t be competitive.”

Tops on that list: Kathwari’s choice, two decades ago, to be among the few large American furniture makers to not ship production off to —Farooq Kathwari, CEO, China. Instead, he makes almost all his furniture—to order—in the westEthan Allen ern hemisphere, at factories in Vermont, North Carolina, Mexico and Honduras. He ships to sell all over the U.S. and Canada—and China and other Asian countries, too. Like I said, a very different road than most.

That’s made him a bit of an oracle for those looking to rethink how they make things in a new era. In a recent interview with Chief Executive, Kathwari talked through a bit of what he’s learned about going your own way, even as the world goes a different route: • Full Vertical Integration. Even as outsourcing became all the rage, Kathwari says that a key to

Ethan Allen’s success has been vertical integration, a structure that he highly recommends, especially for consumer-facing categories. For his company, this includes operating its own network of retail stores across North America. “If we didn’t have the ability to have a vertically integrated company, where we run our own retail, we wouldn’t be competitive,” Kathwari said. “Because we have retail, we’re able to have the advantage of selling through to the consumer.”

• Heavy In Mexico. Ethan Allen began investing in its Mexico operation about 20 years ago and

today runs a 600,000-square-foot plant. “We ship products to China, Korea and the Philippines from there, and it has helped support our U.S. operations,” Kathwari said. “We have made it one of the best places to work in Mexico, as recognized by the Mexican government. We provide two meals a day, doctors on staff, transportation for many workers. We have also invested in a lot of technology there. When you do all of these things, the level of quality and production is fantastic.”

• Rethink Supply Chains. Ethan Allen was also a trailblazer in scouting out other Western Hemi-

sphere sites for manufacturing. About a decade ago, the company purchased a 250,000-squarefoot, wood-products plant in Honduras. “Today,” Kathwari said, “we have 700 people making wood furniture, but all of the lumber is shipped there from North America."

• Automation and People. Making furniture of the quality of Ethan Allen’s still requires

near-artisanal care and highly paid labor in its final assembly. So, to maintain as much production as possible in the United States, Kathwari relies significantly on factory automation. “Upholstered products today represent more than 50 percent of our business, and 30 years ago it was only 20 percent,” he said. “It used to be all that fabric had to be cut by hand. But today we have lasers and computer-operated technology that cuts all the fabrics. And while our frames on the sofas used to be made by carpenters, today all parts are made by computer-aided machines. They’re all cut in five to seven minutes.”

All together, it’s a very different approach than most. And as we all rethink how—and where—we do business and start to bring much more of it closer to home, it’s exactly this kind of fresh thinking from a 90-year-old company that’s worth a second look. —Dan Bigman, Editor

4 2023 CEO GUIDE TO SITE SELECTION

T H O U G H T LE AD E R S H I P PR OV I D E D BY O R L AN D O ECO N O M I C PAR T N E R S H I P

ORLANDO: Driving Toward a Digital Future RLANDO TOOK MAKE-BELIEVE, adventure and excitement to new heights by building a vast local entertainment and tourism economy over the last half century, anchored by masters of the industry including Walt Disney Co. and Universal Studios.

But alongside attractions such as Epcot, SeaWorld and the Hogwarts Express, the Greater Orlando area has been building another economy, this one based on digital technologies and native mastery of gaming, modeling, simulation and augmented and virtual reality, including a growing cluster of semiconductor design and manufacturing enterprises.

Add it all up and the Orlando region is emerging as a nucleus of the budding “metaverse,” combining its traditional leadership in creating fantastical experiences with cutting-edge development of the technologies that are constructing a new virtual realm with seemingly unlimited potential to transform the economy and much of life.

“Is there really a virtual world we’re going to live in some day?” asks Tim Giuliani, president and CEO of the Orlando Economic Partnership (OEP). “I have no idea. But those ideas from the imagination of Ready Player One are certainly coming to life.

And Orlando is the place where all the elements are working together to make it happen.”

OEP itself is one recent beneficiary of these capabilities. The organization recently deployed a 3D “digital twin” of the region.

The ambitious project, completed by some of Orlando’s gaming and simulation giants, promotes economic development opportunities in a visually dramatic and highly convenient fashion, highlighting potential sites across a three-county area.

“Orlando has emerged as a tech cluster,” says Daryl Holt, a senior vice president of Electronic Arts and general manager of its considerable presence in Orlando. “Technology companies are thriving in particular areas, and the education community is growing, so there is a strong ecosystem that has come together in the last several years. Just a few years ago people would say, ‘You don’t know the half of it’ about Orlando. But now there is a real recognition that, based on our decades of tech leadership, the potential and opportunities for tech companies in the Orlando region is Unbelievably Real.”

In fact, Orlando also was “a haven for semiconductor design and engineering as early as the 1980s,” says Dave Rhodes, senior vice president of digital twins for Unity, the world’s leading platform for creating real-time 3D content, which has major operations in Orlando. “That’s what brought Unity to the area.”

The rise of Orlando as a digital-technology hub goes back more than a half century, to when the nascent U.S. space program, including the National Aeronautics and Space Administration and contractors including Lockheed Martin, rather suddenly required the employment and training of thousands of engineers, computer scientists and technicians to work at Cape Canaveral

Orlando is a global leader in developing modeling, simulation and training technologies.

and what became Florida’s “Space Coast” on the Atlantic Ocean.

Soon after, Disney placed Walt Disney World in Lake Buena Vista, Florida, near Orlando, launching an entire new economic sphere for the region.

The University of Central Florida (UCF) arose to meet the needs of the space program, and even today, 29 percent of Cape Canaveral employees and 25 percent of Lockheed Martin’s huge local workforce are UCF graduates. UCF also built up its expertise in the tourism industry and eventually founded the Rosen College of Hospitality Management, which became the No. 1 ranked program of its kind in the United States.

UCF now has the largest enrollment of any university in America, with about 69,000 students, and many of them comprise a pipeline of new talent that flows directly to Orlando’s fast-growing economy in digital technology and tourism. Other major educational institutions in the area include Stetson University, Rollins College and Full Sail University, which specializes in entertainment-media training. More than 500,000 college students can be found within 100 miles of downtown Orlando.

“The story has always been the same for us: alignment with the needs of our community,” says Dr. Andrew Cartwright, president of UCF. “We’re fortunate enough to be in a region where there is so much growth and so much industry that we’re able to focus our efforts in areas where we know diverse talent is needed. We are able to provide well-trained and focused graduates in large enough numbers that it helps the region.”

Another example: “The Central Florida Research Park right next to [UCF] has $6 billion to $7 billion in operations that flow through there every year, and our school of modeling, simulation and training is co-located there,” Cartwright says. “These companies are very closely connected to the U.S. military. Almost all of the simulators for flight that the military uses, and the software, come from this research park, for example.” The sixth-largest research park in the country, Central Florida Research Park is home to the simulation commands of all five branches of the U.S. military.

Electronic Arts has become one of the bedrock tech developers and employers in Orlando. The company has grown into a global

Orlando’s “digital twin” lets visitors experience the city’s future.

Central Florida is emerging as a nucleus of the budding “metaverse,” with unlimited potential to transform the economy and much of life.

leader in digital interactive entertainment, with more than 500 million registered players around the world going at one another on Madden NFL, Battlefield, The Sims and other EA games. EA Orlando is home to more than 1,000 playmakers working across multiple teams and organizations, including the EA Tiburon production and development studios.

EA Orlando is located in a 176,000-squarefoot facility in Downtown Orlando’s Creative Village, a 68-acre urban-innovation district and hub for the city’s digital-media industry. That’s where EA is working on what Holt calls “the fourth wave of computing,” involving the metaverse and “going into 3D space and interacting. We will need gaming talent and rendering engineers and people who understand the gaming components, because that’s how we’ll process entertainment” in the incipient metaverse.

Orlando also is a great place for EA to make strides in the metaverse specifically because of the strength of its legacy tourism industry. “Entertainers in Orlando have been speaking the language of storytelling for a long time,” Holt says. “There are aspects of that which lend themselves to gaming and vice versa, and we’re seeing the convergence of those.”

Indeed, says Giuliani, OEP “used to view the tech community as in different silos, but then we began to create a narrative around these seemingly unconnected areas of technology.

And as the metaverse begins to come into focus, we realized that all the different silos we have from a technology standpoint comprise the majority of the tech stack for the metaverse.

We’re actually at the center of the metaverse, the city that is bringing it to life through modeling and simulation, gaming development and semiconductors.”

As all of the economy is increasingly “gamified,” applications for the expertise being concentrated in the Orlando region are multiplying rapidly. These include extremely close-to-home harnessing of such technologies at the Naval Air Warfare Systems

Electronic Arts is located in downtown Orlando, with production and development studios in its new facility.

Training Division in Orlando, where soldiers use augmented-reality glasses with real tanks so they can more effectively understand how to repair the armaments.

Even closer to home for OEP is its digital twin of 800 square miles of the Orlando region. The idea behind it was that when the organization hosts business leaders who are considering where to put or expand operations, the demands of touring them around the Lake, Orange, Osceola and Seminole counties that comprise Greater Orlando can be considerable—and slow.

“It’s a great solution to be able to create a spatial understanding of everything in the area, from the Space Coast to Lake Mary to NeoCity,” the 500-acre master-planned campus near Orlando International Airport designed to serve as a global center of advanced digital research, human performance and life sciences, Giuliani says. “Also, when people come to visit, they want to know about our active tech hubs and our entrepreneurs and whether they’re scaling companies, and we want to be able to communicate those things, to show why we are a tech hub even though we might be under the radar to some.”

So OEP huddled with EA, Unity and other local companies to create the digital twin. It consists of two aspects. One is a 700-square-foot room at OEP headquarters that presents an interactive, digital, 3D replica of 800 square miles of the Orlando region, with 40 square miles recreated in high-fidelity, allowing visitors and businesses to explore Orlando via a tablet without having to drive for hours on end. “It’s like King Kong versus Godzilla—it’s that immersive,” Rhodes says.

Also, OEP representatives can bring the digital twin to visit prospects by lending them an iPad or Oculus VR head set and “let them interact in real time with areas that are compelling for them.”

Phase two of the digital-twin project, Giuliani says, involves “inviting others in the area to build into the digital twin with their own coding, to zoom inside the features of a particular building, to illustrate the connectivity within the region and to showcase future development for prospects.”

The OEP project is “one of the very few large, city-scale digital twins that exists in the world today,” Rhodes says. “This is an important way Orlando has invested in driving its economy further toward innovation and technology development.”

The Orlando Economic Partnership recently teamed up with Visit Orlando to launch Unbelievably Real, a joint tourism and business branding campaign that speaks to both leisure and corporate audiences and showcases the Unbelievably Real aspects of the region, including its thriving tech and innovation ecosystem. Talent and business leaders interested in learning what makes opportunity in Orlando Unbelievably Real can learn more at InvestOrlando.org

2023 CEO GUIDE TO SITE SELECTION EDITOR Dan Bigman

CONTENTS

MANAGING EDITOR Jennifer Pellet DIGITAL EDITOR C.J. Prince ART DIRECTOR Gayle Erickson PRODUCTION DIRECTOR Rose Sullivan

1 Another Way

By Dan Bigman

10 Re-Shoring Revolution! A new Chief Executive/IEDC survey of CEOs dives deep into one of the hottest trends in business— the race to bring production back to the United States from China.

By Dale Buss

22 State Profiles In alphabetical order, a primer on economic development programs, workforce quality, the tax and regulatory environment, economic activity and more for each of the contiguous states.

By Craig Guillot

CHIEF COPY EDITOR Rebecca M. Cooper CONTRIBUTING EDITORS Russ Banham, Dale Buss,

Daniel Fisher, Marshall Goldsmith, Kelly Goldsmith, Jeffrey Sonnenfeld EXECUTIVE EDITOR, STRATEGICCXO360

Emily DeNitto DIGITAL PRODUCER Alessandra Cooper VP, PUBLISHER, CHIEF EXECUTIVE

Christopher J. Chalk | 847-730-3662 cchalk@chiefexecutive.net DIRECTOR, BUSINESS DEVELOPMENT

Lisa Cooper | 203-889-4983 lcooper@chiefexecutive.net MANAGER, STRATEGIC PARTNERSHIPS

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

CHIEF EXECUTIVE GROUP EXECUTIVE CHAIRMAN

Wayne Cooper CHIEF EXECUTIVE OFFICER

Marshall Cooper CHIEF CONTENT OFFICER

Dan Bigman CHIEF COMMUNITY OFFICER

R.D. Whitney DIRECTOR OF EVENTS & PUBLISHER, CORPORATE BOARD MEMBER

Jamie Tassa VP, PUBLISHER, STRATEGICCXO360.COM

KimMarie Hagerty DIRECTOR OF MARKETING Simon O’Neill VICE PRESIDENT Kendra Jalbert HR MANAGER / OFFICE ADMINISTRATOR

Patricia Amato RESEARCH DIRECTOR Melanie Nolen

A NOTE ON SOURCES All state information was compiled from a variety of sources, including state and local economic development agencies (incentives, deals, big company listings); state and local press reports (deals, governors’ and governor-elect quotes, C-Suite testimonials); company press releases (deals, C-Suite testimonials); state governor’s offices and press releases (quotes, deals, C-Suite testimonials); campaign websites and press releases (quotes and related information); the Fortune 500 (headquarters locations); the Tax Foundation (tax ranking); the National Right to Work Legal Defense Foundation (right to work status) U.S. News & World Report (high-school graduation rates, quality of life); The U.S. Census Bureau (college degrees, population growth); and the Bureau of Labor Statistics (unemployment, as of Nov. 2022).

DATA SERVICES DIRECTOR Jonathan Lee DIRECTOR, DIGITAL PRODUCTS Leigh Townes ASSISTANT CONTROLLER Brittney Smith STAFF ACCOUNTANT Marian Dela Cruz MARKETING MANAGERS

Simone Bunsen, Christian Robinson EVENTS & MEMBERSHIP MANAGER Rachael Gaffney EVENTS COORDINATOR KP Wilinson DATA ANALYST Denise Gilson CLIENT SUCCESS MANAGER Victoria Campbell STRATEGIC PARTNERSHIPS ASSOCIATES

Lara Morrison, Allison Roberto RESEARCH ANALYST Isabella Mourgelas

CHIEF EXECUTIVE NETWORK PRESIDENT Rob Grabill EXECUTIVE DIRECTOR Chuck Smith DIRECTOR OF OPERATIONS JoEllen Belcher SENIOR MARKETING MANAGER Janine O’Dowd DIRECTOR OF MEMBER SERVICES Brandon McGinnis SALES SUPPORT ASSOCIATE Brittany Hochradel

2019 CEO GUIDE TO SITE SELECTION 4

“ Hytrol has been in Jonesboro, Arkansas, since 1962. We began with 28 employees and have grown to more than 1,200 employees in that location. When it came time to expand with an additional production facility, it was an easy decision to stay in Arkansas.”

David Peacock, President Hytrol, Jonesboro

To learn more about how inspiring businesses are leading the way to a strong economy, visit ArkansasEDC.com/ whyarkansas

T H O U G H T L E A D E R S H I P P R O V I D E D B Y D E LO I T T E CO N S U LT I N G L L P

Creating Connections How evolving workstyle trends are driving the corporate real estate footprint.

BY M AT T H I G H FI ELD, M I CHAEL G O R D O N AN D CH R IS TO PH ER MU LR O O N E Y

SPOILER ALERT: THIS IS NOT ANOTHER “RETURN TO THE WORKPLACE” ARTICLE. We know…just about every time leaders open their news feeds, there is another headline with some permutation of the words “new normal,” “return to the workplace” or “future of work.” The fact is most organizations have already returned to the workplace in some capacity, and therein lies the opportunity for the year ahead.

What is important for executives to be thinking about, however, is how workplace trends at the micro level— particularly evolving workstyles and how they enable a hybrid workforce—are continuing to impact the macro level. This means not only the physical workplace but, more importantly, the broader real estate and talent footprint. These trends are not simply affecting the size and composition of existing real estate portfolios. Rather, they are also affecting where organizations are thinking about expanding, contracting and rebalancing their leased and owned properties.

We have identified three key challenges organizations are facing across the corporate real estate spectrum. Quality data is the absolute pillar of informed decision-making, yet organizations struggle to aggregate even the most basic information and draw insights from the simplest dimensions of their workforces and workplaces. Layer on new mandates to bring sustainability to the forefront of enterprise operational strategy and add in a mixed economic outlook impacting both the supply and demand of the workforce and workspace, and it’s easy to understand why so many organizations are still in a holding pattern. As such, the number of published case studies outlining successful footprint rebalancing initiatives have been few and far between.

Looking ahead to 2023, we expect that companies will see their longer-term corporate real estate strategies coming into focus and take steps to react accordingly.

Where to begin? Let’s start by examining some workstyle trends that will have a cascading effect on the way your organization views the workplace and what that means for your existing portfolio and future real estate footprint.

HOW HYBRID WORK IS IMPACTING WORKSTYLES For many employees, well-being has become not just a priority but a nonnegotiable. There has been a renewed focus on both physical and mental health, and individuals feel empowered to set boundaries with and manage expectations of their employers in ways they hadn’t before.

The focus on personal well-being includes where and when

people work and how people conduct themselves at work.

In July, Deloitte asked Americans to reflect on how they’ve changed throughout the past year and found that more than 70 percent of respondents said that they are focusing on prioritizing their overall well-being compared to 63 percent the year before.

While employees are focused on their personal wellness, burnout at work remains a major issue. Deloitte research suggests that hybrid work may be a contributing factor. In a recent study surveying women in the workplace by Deloitte, those who changed their working hours during the pandemic were almost three times as likely to feel burned out. The feeling of worker fatigue is impacting a large part of the millennial and Gen Z workforce as well, with 46 percent of Gen Zs and 45 percent of millennials experiencing burnout Key Workstyle from their careers.

Questions to Consider Data suggests that • As the war for talent continues, what burnout also extends to experiences can employers provide to executive leadership. attract and retain employees?

Deloitte’s research • How do companies reconnect found that a majority employees to a sense of purpose that of employees (57 will keep them engaged? percent) and most C-Suite • How has the nature of virtual work executives (70 percent) are changed what employees need for an equitable work experience? considering seeking a job that better supports their wellbeing. Improving workstyles can mean a lot of things, but ultimately it’s about providing employees flexibility. For leaders, it means providing flexibility in how, when and where employees work, and providing the guardrails for them to find time throughout the day for well-being—as defined by the individual, not the employer.

Hybrid work continues to evolve and employees are looking for more support. While we’re well beyond the early days of hybrid work, the policies needed to implement a sustainable model are often missing. Transparent decisionmaking and clear working guidelines have become a major focus for employees as they operate away from the office. A Deloitte survey found that 58 percent of hybridworking women felt that they have been excluded from meetings and interactions, and 64 percent said that their employer hasn’t set clear guidelines around where and how they’re expected to work. The lack of robust policies and

a commitment to mitigation strategies can impact how employees feel about their promotion prospects or how they interact with their teams.

Without question, for many individuals and corporations, hybrid work can promote productivity. But it doesn’t come without challenges. Individuals want to see and be seen by leaders, but the workplace must be designed to enable these moments. Meanwhile, organizations want to unlock value from their investments in the workplace, but employees must be present to do so. Executives are taking this challenge seriously. In Deloitte’s 2022 Fall CEO Survey, 80 percent of CEOs agreed or strongly agreed with the statement that over the next six months, “we will develop new tools to drive engagement and loyalty for remote/ hybrid employees that don’t depend on co-location.” It’s not enough to have hybrid work alone—you need to design hybrid work programs and policies to benefit both the employer and the employee if they are to be sustainable.

HOW EVOLVING WORKSTYLES ARE IMPACTING THE ROLE OF THE WORKPLACE Corporations have the tools—use them. Employee workstyles vary from location to location, reflecting different roles, capabilities and sensibilities. As such, organizations are increasingly focused on accessing accurate, timely and insightful data to understand employee preferences, workstyles and how the workplace and broader footprint should evolve. In a recent Deloitte Dbrief webcast on the future of corporate real estate, Deloitte polled 3,425 participants to ask if they think executives within their organizations have the information necessary today to make informed decisions on the corporate real estate portfolio. Over 48 percent of respondents reported that their organizations were lacking in the availability or quality of data needed to ascertain strategic insights.

Many companies struggle with data quality, aggregation

and analysis specifically relating to real-time utilization.

While most leading organizations have systems in place to understand the supply side of the equation, the demand side can be a lot harder to gauge. Badging data is imperfect, reservation information may be loosely managed, and cameras and sensors face privacy and general industry adoption challenges, resulting in incomplete and inconsistent views of workplace utilization.

Having access to quality utilization data is especially important when evaluating different locations within the same city or region for footprint consolidation initiatives, given that where people work from is less predictable when provided with optionality. For example, is a oncesleepy satellite office now more bustling than the city center headquarters, given the proximity to talent?

Thoughtful investment in the physical workplace is required to keep employees engaged and in the office. Floors of sparsely populated workstations are not a good advertisement for a vibrant and exciting workplace.

While that’s been the vibe in many offices lately, it’s about to change. Companies are recommitting to the idea that the workplace plays a significant role in creating connections and fostering collaboration. Deloitte’s 2023 Commercial Real Estate Outlook reports that 41 percent of real estate CFOs in North America expect that their company will perform a workplace redesign in the next 12 to 18 months, and we can expect a great deal of that investment will be targeted at reducing the amount of individual workstations and providing more places for people to come together for learning and culture building.

Beyond the physical workplace, investment will also be needed to deliver the digital experience. Additional technology infrastructure is required to seamlessly enable connectivity and provide the right environment for a variety of work locations, postures and styles. In Deloitte’s 2022 Gen Z and Millennial Survey, 20 percent of respondents who have worked remotely said that

remote work has made forming connections with colleagues Key Workplace more difficult, and 14 Questions to Consider percent said it has • Is our organization’s workplace made opportunities designed to facilitate different types of for mentorship teaming and collaboration? harder to find. This • What investments are needed to collect is a big deal, as we and contextualize the right data to make better workplace planning decisions? know that retaining, rebuilding and • Are there additional ways of leveraging technology to blur the lines between redefining corporate the physical and digital workplace cultures in the wake of experience? hybrid work is another challenge we all face.

Part of building a strong culture is through the provision of a differentiated employee experience, and the workplace is often where that’s achieved. Executives recognize that the office plays a role in employee satisfaction and retainment. A 2022 Deloitte/ CoreNet Global survey on the future of corporate real estate found that the top priority for corporate real estate professionals will be to enhance the employee experience (39 percent) and create positive workplace sentiment.

Consumer-like mobile workplace applications enabling individuals to see what’s on the menu for the day and where their colleagues have clustered are being deployed to promote connectivity. Providing a variety of furniture configurations to support the multitude of individual and collaborative activities in which we engage in the office also has a major impact on employee engagement and satisfaction. Picture some of the more residential elements we see in office design, such as living-room and diningroom inspired vignettes.

INFORMING LOCATION STRATEGY FROM WORKPLACE REALITIES Now is the time to closely review your real estate footprint. Executives are currently examining how employees are adapting to hybrid work and how the real estate portfolio can be optimized. Many corporate real estate leaders are facing the challenge of managing a pre-Covid portfolio that is now oversized. A Deloitte and CoreNet Global 2022 survey found that 75 percent of CRE professionals are likely to change their portfolio size within the next five to eight years, and 47 percent anticipate reducing their footprint. In the near term, decisions about right-sizing the footprint based on actual occupancy data, utilization insights and planned growth trajectories should be a top priority.

Companies are expressing a desire to create flexibility in their portfolios. Revising assigned seating policies and adopting co-working spaces have become popular as executives seek to reduce costs while growth decisions remain in flux. The same 2022 Deloitte/CoreNet Global survey found that a significant majority of corporate real

estate professionals anticipate increasing the proportion of amenity and collaboration space (68 percent and 89 percent, respectively), while 67 percent anticipate reducing the proportion of individual space. Space optimization allows for organizations to reduce their fixed commitments without a major hit to the employee experience.

Executives are rethinking their location strategies to take advantage of shifting talent pools. As inflation and economic uncertainty loom large and raise concerns over the cost of living, it’s no surprise employees are considering or have already made a move. According to Deloitte surveys in 2021 and 2022, a growing percentage of millennials and Gen Zs are reporting that remote work has allowed them to relocate farther away from the office. These trends are having profound impacts on talent pools, suddenly offering employers access to talent at a lower cost while providing employees the flexibility they have come to expect.

As more and more skilled workers gravitate toward areas with lower costs of living, companies are taking note.

Executives are looking for ways to access high-quality talent in low-cost environments as the future of the economy remains uncertain. Critical location factors are being revised to think about talent markets that wouldn’t have been targeted in the past. With an unprecedented amount of market data available, organizations can broaden their aperture and orient toward areas that best suit their needs. New machinelearning-based tool sets are Key Footprint also playing a significant Questions to Consider role by collecting and • How can excess space be best synthesizing candidate utilized to enable the right employee requirements and experience? the ever-expanding • Where does the company need to be global demographic in order to attract and retain talent? data set to highlight • What strategies should be talent markets that may considered so that the portfolio can have otherwise been be scaled up/down quickly? overlooked.

THE CHALLENGES—AND OPPORTUNITIES—AHEAD These workstyle, workplace and footprint trends are connected. If you don’t understand what your workforce needs, or expects, to be productive, successful and acculturated to your organization regardless of location, you cannot define a set of workplace parameters to meet those needs. If you can’t define what the ideal workplace is for your organization, be it the workspace composition, physical design or in-person programming, you cannot successfully determine how much space your organization requires—and in which locations—to be successful.

If that resonates, know you’re not alone. In a 2022 Deloitte survey of global real estate CFOs, when asked whether vacancy rates will improve in the next 12 to 18 months, 47 percent responded that they expect levels to either worsen

or stay the same, with 53 percent expecting improvement.

Executives, feeling uncertain about how to proceed with their own real estate portfolios, routinely ask, “What are our competitors doing?” rather than embarking on thoughtful and data-driven footprint initiatives. This pause is due to the limited ability most organizations have to access real-time, relevant data about the way their workforce is engaging with the workplace. Often, workplace management systems providing seating capacity data are disconnected from the systems that track occupancy, which are also disconnected from the HR systems indicating which individuals, teams and departments are assigned to a specific campus, building and floor. Organizations must be laser-focused on the questions they are trying to answer so that the required data can be targeted to inform those decisions. Too many companies focus on the quantity, not quality, of portfolio data that impedes consumption and analysis instead of supporting it.

Complicating matters is the need for many organizations to better manage real estate to impact their stated sustainability agendas. Employees are demanding that their employers develop and deliver against sustainability strategies. A 2022 Deloitte survey found that almost twothirds (65 percent) of business leaders reported feeling pressure from their employees to act on climate change.

While green principles span the enterprise, the buildings we occupy, the energy they consume, the waste they produce and the emissions our workforce generates to access them are presenting actionable opportunities to make an impact on carbon emissions. Companies are now treating de-carbonization with equal or greater emphasis as cost reduction when it comes to prioritizing the levers of real estate footprint strategy.

A final consideration is recognizing where we stand today, with the tightest, most competitive talent market in decades. An uncertain economic outlook further clouds organizational decisions about workforce supply and workspace demand. An autumn 2022 Deloitte survey found that 71 percent of CEOs agreed that talent shortages will continue over the next six months. According to Deloitte’s 2023 Commercial Real Estate Outlook, real estate CFOs are split on whether the cost of capital will worsen (38 percent) or improve (37 percent) over the next 12 to 18 months, and these varying perspectives are manifesting in different footprint strategies. Organizations with vast real estate holdings and head count reductions are accelerating footprint consolidation activities. Conversely, mid- to high-growth companies with more promising economic outlooks

see an opportunity to grow their footprint in existing locations and expand to new talent markets.

Today, leading organizations are demonstrating agility by viewing the above pressures as an opportunity, not a challenge, and developing a comprehensive plan that responds to each scenario with a unified strategy. Data and insights from enterprise operations (talent, occupancy, rent expenses, etc.) must be leveraged in concert with sustainability objectives to determine which locations are targets for rebalancing—whether due to the size of a particular office or the role of a specific location in the overall corporate footprint. Landlords, uncertain about the year ahead, are eager to engage.

SETTING NEW TRENDS—BY CREATING Ultimately, today is a moment in time. The expectations of our workforce and the workstyles we provide to them will continue to evolve, whether fueled by generational ideologies or external market forces. The implications of our hybrid work strategy and growth (or contraction) of our workforce will continue to inform the mission and meaning of the workplace. The migration and evolution of talent pools and the scale of our workplace needs will continue to challenge leaders to think about where and how much office space is required to best support the workforce.

The new normal is no longer new. We’ve returned to the workplace. The future of work is being created every day. Let’s start delivering a differentiated employee experience—one that puts the workforce at the center of our workplace strategy. Let’s start leveraging workplace technology and data to drive informed and impactful decisions about our portfolios. Let’s start adopting workplace policies that balance the needs of employees and employers and define when and where people work.

Let’s start embracing the possibilities of hybrid work and take action to optimize the corporate real estate footprint as it should have been all along.

Matt Highfield is a managing director in Deloitte’s Real Estate Strategy & Sustainability practice and focuses on global footprint, portfolio and workplace strategies.

Michael Gordon is a senior manager in Deloitte’s Real Estate Strategy & Sustainability practice and focuses on technologyenabled transformation within enterprise real estate portfolios.

Christopher Mulrooney is a senior consultant in Deloitte’s Real Estate Strategy & Sustainability practice and specializes in real estate optimization and workplace strategy.

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.

MADE IN THE

USA 10 2023 CEO GUIDE TO SITE SELECTION

RESHORING REVOLUTION!

A new Chief Executive / IEDC survey of CEOs dives deep into one of the hottest trends in business—the race to bring production back to the United States from China.

BY DALE BUSS

ZENNI OPTICAL IS EXPANDING PRODUCTION OF its ophthalmic lenses in Ohio, switching ca-

pacity from China. Commercial Vehicle Group is halving exposure to Chinese factories for supply of its automotive seat frames by building new plants in Morocco and Mexico. And Taco Comfort Solutions is spending more than $10 million to erect a new warehouse in Rhode Island to manage parts it makes in Europe and Vietnam.

“We’ve put ourselves at huge jeopardy by becoming so dependent on other countries and not having our own capabilities here,” says Cheryl Merchant, CEO of Taco, a Cranston, Rhode Island-based manufacturer of industrial water-management systems. “We could just shut ourselves down if we continued with that. So everyone is scrambling to reverse the situation.”

These three new developments are only fresh trickles in the vast, ongoing global movement of capital and utilization of labor. But in confluence with thousands of similar initiatives, they have helped form a virtual tsunami of new manufacturing investment being relocated from overseas, an opportunistic tidal wave of “reshoring,” “nearshoring” and “onshoring” that may produce nothing less than a once-in-a-century opportunity for the rebirth of economic sovereignty for North America.

Job announcements for reshoring initiatives and foreign direct investment in U.S. plants surged to a record high of around 350,000 in 2022, according to the Reshoring Initiative, up from 260,000 in 2021 and 150,000 in 2020. The biggest movers were makers of electrical equipment and components, chemicals and transportation equipment.

A Manufacturing Revival

Slapped hard by the supply-chain mess brought on by the pandemic, worried about geopolitics that are the hairiest since the Cold War, enabled by automation advances in manufacturing and logistics, and encouraged by new government incentives such as the CHIPS and Science Act,

2023 CEO GUIDE TO SITE SELECTION 11

BRINGING IT BACK: 4 TIPS From CEOs and other experts, here are some pointers for considering and executing reshoring, onshoring and nearshoring initiatives: Lead with strategy. “It can’t be a reaction but rather part of a primary strategy for the company,” says Bill Pellino, lead managing partner for consultant BDO’s manufacturing-industry practice.

“Include a profitability analysis by SKU or product and identify the biggest exposures for disruption events. For most companies, 20 percent of SKUs generate 80 percent of the revenues, so focus on those.”

Rosemary Coates, head of the Reshoring Institute, suggests adopting “a China-plus-1 strategy, maybe leaving some manufacturing in China for the time being and developing an alternative site in Mexico that is cost-competitive for labor. China-plus-2 would be adding a U.S. manufacturing site.”

Consider half a loaf. At first, Pellino suggests, “Take a safer, easier approach, like shifting a product line or some of your SKUs, and manufacture them somewhere else, but leave a lot of the Asian supply chain in place for now. Getting things to customers on time is really important, and customers are willing to pay more for that, so you’ll be able to pass on some costs. But it all has to work as a math problem.”

Commercial Vehicle Group “didn’t move our equipment out of China—we dual-implemented” it by tooling a U.S. factory as well, says Harold Bevis, CEO of the New Albany, Ohio–based company.

“Let’s say everybody loves each other again and the pendulum swings back: We still have our tools there.”

Embrace suppliers. “You have to play the ‘Team America’ game and get engaged with suppliers and not treat them as the enemy or as someone to squeeze, but to develop and invest in and partner with, so everyone can do better, and we can do more in the region,” advises Ambrose Conroy, CEO of the Seraph business-restructuring consultancy.

That’s the approach being taken by Zenni Opticals as it reshores production and distribution of eyeglasses. “See if you can get suppliers to onshore some of their supplies and pick up the cost of warehousing and holding all that material on hand themselves,” says Rob Tate, director of U.S. manufacturing for the Columbus-based outfit.

Jamestown Plastics continues to take on reshored production of plastic packaging for a variety of U.S.–based customers. “The whole networking thing, having an extended, domestic, highly skilled supply chain, has so many benefits that you can’t quantify on a spreadsheet,” says Jay Baker, CEO of the outfit based in Brocton, New York.

Tap into subsidies. The federal Inflation Reduction Act, as well as the CHIPS legislation, can provide a helping hand “if you’re building capital infrastructure that is reducing emissions or touching a renewable-energy resource,” says Bryan Halpin, business-development manager for Baker Tilly.

12 2023 CEO GUIDE TO SITE SELECTION

many manufacturing CEOs are pivoting toward an expensive domestication of supply chains even as they’re coping with extreme inflationary pressures and the expectation of an economic downturn in 2023.

“Before, there was a lot of conversation in trade magazines, but it was kind of quiet when it came to investor calls, and that’s now flipped around,” says Patrick Van den Bossche, a partner at Kearney consultants and leader of its annual Reshoring Index. “More companies are talking about reshoring and opening themselves up to investor communications to make that claim, and they’ll be held responsible if they don’t do it.”

EY partner Claudio Knizek says companies “are looking at their manufacturing footprint a lot more holistically. In the 1980s or so, the focus was on holding costs down. Now, many companies realize it’s not only about costs but an ability to pivot and make changes to your supply base and production quickly, in order to service demand,” adds the leader of the consultancy’s global advanced manufacturing practice.

Survey Says

So how widespread is the trend, and what are CEOs focused on when it comes to deciding how, when and where to relocate?

Chief Executive, in partnership with the Indiana Economic Development Corporation, recently conducted a survey of CEOs nationwide to find out. One number immediately jumped out: 58 percent of CEOs whose companies have had recent operations outside of the United States now are considering reshoring, with 18 percent pondering the repatriation of three-quarters or more of their operations.

Reshoring assembly and parts manufacturing was the focus of 68 percent of intentions in the survey. Only 10 percent of reshoring plans involved R&D operations, and only 9 percent call-center and support operations.

The main drivers were geopolitical risk exposure, cited by 48 percent of respondents; supply-chain resilience, 34 percent; closer management and oversight, 33 percent; tariffs and freight costs, 27 percent; proximity

to customers and domestic markets, 22 percent; and brand image, 21 percent.

And there’s urgency: 72 percent of respondents said they’re planning to fully reshore operations within three years, while 74 percent said their decisions to reshore had taken shape in the last three years.

“All reshoring is going to have to take place in highly productive sectors: not in canning tomatoes or in bulk steel parts, but in very high-end assemblies and highly specialized items,” says Michael Hicks, a business professor at Ball State University.

Meanwhile, a renormalization of the transpacific supply chain in recent months has removed some pressure to yank production from China.

Also, it’s not all or nothing. “It’s not an either-or, staying in China or leaving,” says Van den Bossche. “It’s what can we do to hedge ourselves a bit, and there will be some cost implications in that, bringing ourselves to more expensive labor costs, doubling up on some capacities and building in redundancies.”

But this movement is not simply an extension of the old rah-rah theme, where early pioneers such as WeatherTech mainly relied on product innovation and superior brands to carry their made-in-America bets, rather than the other way around. Today’s reshoring push also goes far beyond the lesson of the pandemic to build resilience into global supply chains.

Reshoring Reversal

This is resilience with a specific destination. And the reshoring race constitutes a huge reversal of the fashion of a generation ago, when consultants encouraged American manufacturers to move production to “the world’s factory” in China and Wall Street pushed an “asset-light” business model.

Indeed, U.S. manufacturers are now seeing this phenomenon through enough of a common lens that “they are looking to each other to see if there will be enough critical mass in the reshoring movement to build a supplier ecosystem that can rival what China has built—either domestically or in a nearshore location,” as an A.T. Kearney report puts it.

Source: Chief Executive/Indiana Economic Development Company

In which country are your non-U.S. operations located?

(Select all that apply.)

0%

10%

20%

30%

40%

50%

China Other Mexico India Germany UK Taiwan Japan France Indonesia Italy South Korea

Has your decision to reshore changed over the past three years?

No, nothing has changed over that period

26%

28%

Yes, we were not considering reshoring before that

46%

Yes, the events of the past 3 years have sped up our plan to reshore

2023 CEO GUIDE TO SITE SELECTION 13

Which type of operations are you considering reshoring, if any? (Select all that apply) 0%

10%

20%

30%

40%

Manufacturing: Assembly Manufacturing: Parts Design & Engineering Back Office Programming/ Software Development R&D Call Center/Help/ Support Operations Other (Please Specify)

What do you estimate is your timeframe to have operations fully reshored?

Not sure

Within next 12 months

23%

31%

3%

In more than 3 years

41%

Within 1-3 years

Source: Chief Executive/Indiana Economic Development Company

14 2023 CEO GUIDE TO SITE SELECTION

Take apparel manufacturing. The U.S. industry was given up for dead after companies moved basic yarn and fabric production to China. But now, Brooks Brothers and Under Armour are among big brands that have been reshoring clothes-making operations. Plus, Walmart is in the process of sinking a pledged $350 billion to support U.S. manufacture of clothing and other goods Prasad Reddy, the majority owner of Decatur, Texas–based Twisted X, also is trying to redomesticate this sector. The company turns out about 3 million pairs of shoes and Western boots each year from factories in China and Mexico, where it’s still relatively inexpensive to pay for the 90 sets of hands that touch the typical pair of boots in the process. There’s also the matter of sourcing as many as two dozen different components, from eyelets to soles to laces, that must be supplied for each pair.

“Right now, we’re experimenting with making some products in El Salvador,” Reddy says. “The samples look good, and we may be able to bring in some components from Mexico and other places. We’re also trying to bring some production to Texas, but Americans have lost their [shoemaking] skills. So we have to start from scratch, with training.”

Two of the most determinative global industries of the future, microchips and electric vehicles, are leading the onshoring surge. Intel, GlobalFoundries and some foreign manufacturers have announced huge new chip-making projects in the United States, encouraged by subsidies in the federal CHIPS and Science Act of 2022.

The legislation “is triggering lots of action,” says Sumit Dutta, consulting leader for supply chains and operations for EY Americas. “Some is fast-tracking of decisions that might have happened anyway, but other companies are taking the plunge because of it.”

The world’s accelerating shift toward EVs also plays well for U.S. manufacturing, even as American consumers bring up the rear among Western markets in embracing the technology. Facing greater vulnerability of production in Germany and in China, for instance, Volkswagen is em-

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Second largest FTZ network in the country.

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What is most important to you when looking for a reshoring location for your operations in the U.S./North America? (Select only the top 3) 0%

10%

20%

30%

40%

Skill and Availability of Workforce Infrastructure/ Transportation Access Political Considerations/ Controversy Proximity/Access to Key Markets

Workforce Worries

Taxes And Government Incentives Proximity to Hq/Existing Facilities Regulatory Environment Other Quality of Life/ Cost of Living Energy Costs

Which regions of the United States or Canada/ Mexico are you primarily focusing on for potential location/expansion?

(Select all that apply) 0%

50%

bracing North American manufacturing more than ever, with plans to invest $7.1 billion to expand factories in Chattanooga, Tennessee, and in Mexico.

“The more you spread out your footprint, the bigger your independence from certain areas,” says Reinhard Fischer, senior vice president of strategy for Volkswagen Group of America. “We want to grow North America up to be the third leg of the stool that the group worldwide can stand on. Electrification gives us the chance to accelerate that.”

10%

20%

Midwest Southeast Mexico None Specified (open to all areas) Northeast Southwest and California Mountain West Canada Northwest Source: Chief Executive/Indiana Economic Development Company

16 2023 CEO GUIDE TO SITE SELECTION

30%

40%

As they ponder various types of “shoring,” 50 percent of respondents to the Chief Executive/IEDC survey cited skill and availability of the workforce as the most important consideration; 36 percent mentioned infrastructure and transportation access; 27 percent, political considerations and controversy; 27 percent, proximity and access to key markets; and 23 percent, taxes and government incentives. At the same time, 58 percent cited labor availability as the main obstacle, while 53 percent were concerned about increasing the cost of production.

Those numbers underscore why 63 percent of respondents also said automation plays a “central” role or “somewhat” of a role in their thinking. “It’s hard to make the case that you should bring things back to the U.S. and, by the way, your costs are going to go up by 10 percent to 20 percent,” Knizek says. “But if you are able to bring in automation and reduce the amount of labor you need, suddenly you’re in the position where things can work out.”

Despite the local excitement generated by their announcements, EV and chips plants aren’t going to be huge employers of common labor. “The thing that really matters for most of these plants is you’ve got to have a really high number of people with undergrad or graduate degrees to work in these industries,” Hicks says. “Essentially, these plants are going to be fully automated and highly technical.”

Moreover, the employment spoils from reshoring aren’t going to be evenly divided across the country. The pandemic dispersed labor and showed that companies

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What do you see as the main drivers for reshoring operations? (Select only the top 3) 0%

10%

20%

30%

40%

50%

Geopolitical Risk Exposure Supply Chain Resilience Closer Management & Oversight Tariffs/Freight Costs Proximity to Customers/ Domestic Market Brand Image (Made In Usa) Quality/Technology Advantage None Ip Risk Abroad Wage Inflation Abroad U.S. Political Pressures Currency Exchange Regulatory Environment Other

What do you perceive as obstacles or reservations to reshoring operations?

(Select only the top 3) 0%

10% 20% 30% 40% 50% 60%

Labor Availability Increasing Cost of Product Supply Chain/Supplier Proximity Taxes Regulations Proximity to Customers/ Foreign Markets Site Availability & Relocation Costs Unions Tariffs and Export Controls Other Geopolitical Pressures Against Relocation None Source: Chief Executive/Indiana Economic Development Company

18 2023 CEO GUIDE TO SITE SELECTION

based mainly on manipulation of digital information can succeed amid a diaspora of workers. But manufacturing isn’t that way.

So, much as coastal outposts, including Boston, Seattle and Silicon Valley, were the major winners from the digital-tech revolution of a generation ago, the Midwest stands to gain most from the manufacturing reshoring phenomenon. More respondents were focused on that region than any other in the Chief Executive survey of mainly CEOs of mid-market manufacturers, at 38 percent, followed by the Southeast, at 33 percent. Other regions trailed badly, with only 11 percent of company leaders considering the Northeast and 9 percent the Southwest and California.

Also, as more U.S.- and foreign-based microchip manufacturers establish new production in America, they are likely to flock to where there are already chip plants or to where new plants have been announced, including the Upper Midwest, upstate New York, Texas and Arizona. Likewise for EV production, where the Midwest, mid-South, the Southeast and Texas already dominate automotive output.

And amid all the excitement, it’s easy to forget that it took a long time to offshore, and it will take a while to reverse the trend.

Indeed, Ron Ten Berge’s experience illustrates the slog that reshoring can become.

His company closed its factory in China and moved production of industrial barrel fans to headquarters operations in Sauk Rapids, Minnesota, in 2019, giving Pinnacle Climate Technologies a decisive head start on the process—or so the CEO thought.

But after figuring the net landed cost of Minnesota-built fans would be “a wash” because of the 25 percent U.S. tariffs on Chinese-made parts and the costs of oceangoing containers, Pinnacle is still paying a penalty of from 5 percent to 50 percent.

That’s because the Chinese government subsidizes its steelmakers, meaning American companies can’t supply Pinnacle with stamped steel parts at competitive prices.

“It’s not simple,” Ten Berge says. “China is the ‘easy’ button, which is why everyone makes everything there. You can reshore. It just takes longer than you realized.” CE

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T H O U G H T L E A D E R S H I P BY M I S S I S S I P P I D E V E LO P M E N T A U T H O R I T Y

Adranos Finds a Talent Pipeline in Coastal Mississippi Access to top talent helps fuel growth for the state's manufacturers.

EARLY ON IN HIS TENURE as CEO of Adranos, Chris Stoker understood what many savvy leaders come to learn eventually: he can’t do everything himself.

“There are a lot of things I’m good at and should keep doing, and there are a lot of things I don’t know how to do, nor would I know how to teach people to do,” says Stoker, who also cofounded the manufacturer of solid rocket motors and fuel. “So I have to hire people who know how to do those things and can do them at a high level.”

Aggregating talent operating at that high level is what creates the company’s culture, which “affects everything else you do,” he adds. “So it never ceases to be one of the most important things you do as an organization—attracting people that fit your culture and can deliver the outcomes and the service that you want.” So important is talent strategy, in fact, that Stoker estimates he spends up to 40 percent of his time on that alone.

“It's something that I'm reluctant to delegate, because people selection is so critical.”

Stoker has big plans for expansion, including hundreds of new hires. With limited suppliers of solid rocket motors in the U.S. and increasing market demand, there’s a huge opportunity for us to grow, he says. He expects the company’s location for its 450-acre R&D and manufacturing site to help; in coastal Mississippi, Adranos has access to top engineering talent and critical manufacturing skills. Stoker’s multipronged approach to recruitment includes:

2. Filling the pipeline. The state boasts eight public universities, four research institutions and 15 community colleges, all producing the next generation of talent for companies like Adranos. “Mississippi State “Mississippi's got a and Ole Miss are very adreally deep heritage of vanced in terms of the fuaerospace and defense, ture engineers that are goand for us, it's really ing to design solutions for our customers, and then important that you have there are other local unistakeholders at the local, versities that are focused state and federal level that on the skills that help peounderstand your business ple build the stuff that our and can support you." customers are going to use.

—Chris Stoker, CEO, You need both, and this Adranos state has that.”

Stoker adds that while manufacturing has had its share of challenges attracting the next generation of talent, it’s been a bit easier for him. “It’s not too hard to get people excited about building rockets.”

1. Drawing from the ecosystem. Adranos is located within a hub of aerospace and defense companies, creating a natural recruitment pool. Add to that a business-friendly environment with a built-in support infrastructure. “Mississippi's got a really deep heritage of aerospace and defense, and for us, it's really important that you have stakeholders at the local, state and federal level that understand your business and can support you. They've been through it before, so they know how to help you be successful,” says Stoker, who points to visits from Senators Roger Wicker and Cindy Hyde-Smith. “They’ve been incredibly gracious with their time and support. In a lot of other places, you don’t get congresspeople coming to your manufacturing site.” Smaller companies, in particular, can get short shrift when it comes to attention from legislators, he adds, but Mississippi’s legislators “see a small company that can become big. That takes vision.”

The state’s favorable tax rates and cost of operation have also made it easier to compete in an inflationary environment. “If you can offer lower-cost products to your customers, they’re going to buy more,” Stoker says.

3. Recruiting from elsewhere. Stoker estimates that 50 percent of new hires come from out of state, with the area’s low cost of living, easy pace and mild climate serving as a collective draw. And transplants from other areas don’t have to feel cut off from family given the proximity to Gulfport-Biloxi International airport, which, Stoker says, “is so easy to get in and out of, it almost feels like you’re flying private.”

The state’s Southern hospitality is a bonus, making it easier for new entrants to acclimate. “It’s really a very warm culture,” he says. That’s matched by the warm weather, which opens the door to a host of year-round outdoor pursuits, including fishing, hunting, biking and golf.

“You couple all those things together, and you tell your employees that they're going to be 20 minutes from the beach," says Stoker. "It's compelling.”

mississippi.org

strong

Mississippi has long been relied upon by some of aerospace’s heaviest hitters – Airbus, Rolls-Royce, Lockheed Martin – to continue their long legacies of success.

However, Mississippi also is at the forefront of the national space program, with NASA’s Stennis Space Center enticing companies like Relativity, Aerojet Rocketdyne and Rocket Lab to locate in the state to perfect their innovative technology and ultimately return mankind to the Moon – and beyond.

SEE WHERE MIGHTY MISSISSIPPI CAN TAKE YOU. Visit MISSISSIPPI.ORG/aerospace to learn more.

A CEO’S GUIDE TO SITE SELEC TION

Alabama “Our state is blessed to have numerous companies producing outstanding Alabama-American-made products every single day.

During Manufacturing Month, I am proud to recognize 14 of the best our state has to offer. Alabama-made products speak to who we are as a state, and we could not be more excited to showcase these exceptional companies’ products and service to all our visitors today.” —Gov. Kay Ivey

TAXES 6.5% top corporate income tax rate #41 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 87.9% of adults 25 years of age and older graduated high school 27.4% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 2.7% RIGHT TO WORK STATE Yes QUALITY OF LIFE #46 POPULATION GROWTH 5.1% increase between 2010 and 2020

22 2023 CEO GUIDE TO SITE SELEC TION

A SWEET HOME FOR MANUFACTURING

BIG DEALS

While tourists may know Alabama for its beaches and sweet Southern hospitality, CEOs increasingly acknowledge the state for its growing port and business-friendly policies. In addition to tech and healthcare, the electric vehicle industry has made big strides here in the past couple of years. Mercedes-Benz now produces EV batteries in Tuscaloosa, and Hyundai is making the all-electric Genesis GV70 SUV in Montgomery. Toyota and Honda, both of whom have significant operations in the state, are starting to explore the EV market. To drive further momentum in the EV industry, the state held the Drive Electric Alabama EV Summit in September 2022.

Lake Homes Realty and RealSource Title Insurance and Real Estate Closing announced in March 2022 plans to establish a new HQ and create 400 jobs in Hoover.

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Investment Credit: Offers up to 1.5% of the qualified capital investment expenses for a qualified project of up to 10 years.

Niagara Bottling announced in March 2022 a $112 million production facility and 50 new jobs in Opelika.

Shinhwa Auto USA announced in May 2022 a $78 million expansion and 42 new jobs in Auburn.

Ecore International announced a $25.5 million manufacturing facility and 84 new jobs in Ozark.

Novelis broke ground in October 2022 on a $2.5 billion aluminum mill that will create 1,000 jobs in Baldwin County.

Lockheed Martin announced in October 2022 a $75 million expansion in Lawrence County.

ISA Alabama Corporation announced a $9 million expansion and 80 new jobs in Hartford.

Mercedes-Benz started production in August 2022 of its all electric EQS SUV at its Tuscaloosa County plant.

BIG COMPANIES

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Regions Financial (Fortune 500 headquarters) Vulcan Materials (Fortune 1000 headquarters) Encompass Health (Fortune 1000 headquarters)

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Mazda Toyota Manufacturing Mercedes-Benz Amazon Airbus Hyundai Lockheed Martin Northrop Grumman ArcelorMittal (AM/NS Calvert)

EDCs Alabama Department of Commerce Business Development Division madeinalabama.com/business-development Economic Development Partnership of Alabama edpa.org Amazing Alabama amazingalabama.com Economic Development Association of Alabama edaa.org Birmingham Business Alliance birminghambusinessalliance.com

HIGHLIGHTED PROGRAM OR INITIATIVE Aiming to further improve the supply chain and logistics network for manufacturers in the state, Alabama launched the A-USA Corridor in January 2022. The $231 million project will upgrade the logistics infrastructure with a 280-mile rail network to link the Port of Mobile with the McCalla Intermodal Facility near Birmingham. It will also link several major economic development sites along the way.

C-SUITE TESTIMONIALS “As we were looking at areas for expansion opportunities, we wanted to continue our growth within the state of Alabama. Oxford was very accommodating and helpful throughout the process. The new location will be close to Interstate 20 and a broader workforce, which are both critical to our success.” —Paul Wellborn, President and CEO, Wellborn Cabinet “We value the highly competitive and attractive combination of location, infrastructure, logistics and workforce in Opelika.” —Brian Hess, Executive Vice President, Niagara Bottling "Being strategically located in the city of Montgomery, we will have access to a significant and skilled labor force along with a robust student population from the Montgomery area." —Jeff Cheng, CEO, Nocera

A CEO’S GUIDE TO SITE SELEC TION

Arizona “I’m pleased to announce my full administration transition team made up of public service, business, labor and advocacy leaders from both sides of the aisle. I look forward to working with these outstanding local leaders as we build an administration that works for all Arizonans.”

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GRAND OPPORTUNITIES

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Surveys consistently rank the Grand Canyon State as a top destination for new business investments. Arizona made one of the biggest leaps in the Chief Executive Best & Worst States for Business rankings, moving from #10 in 2021 to #4 in 2022. CEOs praise the state for its favorable business climate, quality of life and strong talent pool. Top growing industries here include semiconductors, electric vehicles, batteries and medical technology. Starting in 2023, the state also implemented a 2.5% flat tax, the lowest flat tax in the nation. The move will result in a 13% income tax reduction for the average taxpayer, saving more than $350 per year.

Taiwan Semiconductor Manufacturing Co. (TSMC) announced in December plans to open a second semiconductor chip plant in the state, bringing its total investment there to $40 billion.

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EDCs

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Arizona Commerce Authority azcommerce.com

UNEMPLOYMENT RATE 3.9%

Sun Corridor Inc. suncorridorinc.com

RIGHT TO WORK STATE Yes QUALITY OF LIFE #39 POPULATION GROWTH 11.9% increase between 2010 and 2020

Greater Phoenix Chamber phoenixchamber.com/economic-development

Arizona Regional Economic Development Foundation aredf.org

HIGHLIGHTED PROGRAM OR INITIATIVE Every year, Arizona holds the Arizona Innovation Challenge, one of the largest business plan competitions in the country. The goal is to advance innovation and technology commercialization opportunities in the state by helping early-stage ventures to scale. Companies that get through the three stages get to move into the Venture Ready Accelerator, where they can receive up to $150,000 in non-dilutive funding.

Nestlé USA announced in March 2022 a $675 million investment and 350 new jobs at a beverage facility in Glendale.

LG Energy Solution, a battery producer, announced in April 2022 it will build a $1.4 billion manufacturing facility and create 2,800 jobs in Queen Creek.

Satellite communications company Viasat announced in May 2022 it will expand to Tempe and create 1,500 jobs.

Enviro-Log Company announced in July 2022 a new facility and 50 jobs in Glendale.

Corning Incorporated announced in August 2022 a cable manufacturing facility and 250 new jobs in Gilbert.

Nucor announced in August 2022 a $100 million expansion and 140 new jobs in Kingman.

Taiwan-based Chang Chun broke ground in October 2022 on a $300 million manufacturing facility that will create more than 200 jobs.

Vantage Data Centers announced in October 2022 a $1.5 billion expansion at its Goodyear campus.

BIG COMPANIES 8 Fortune 500 companies headquartered in the state, including: Freeport-McMoRan Avnet Carvana Republic Services Insight Enterprises Taylor Morrison Home Onsemi Semiconductor

C-SUITE TESTIMONIALS “Arizona stood out for a variety of reasons, including having a very supportive business-friendly climate, strong talent pool of skilled labor, and proximity to major transportation routes. Glendale in particular is ideally situated between major highways, and its location allows us to better serve our retail and recycling partners on the West Coast and in the Midwest.” —Ross McRoy, President and Founder, Enviro-Log “Tucson is quickly becoming a leading city for tech startups and smart-city technology." —James Peng, Cofounder CEO, Pony.ai “After performing an in-depth location analysis, we felt Phoenix was a clear winner due to its size and breadth of talent from nearby universities and beyond.”

—Tim Pirrone, President, Townsquare Interactive

2023 CEO GUIDE TO SITE SELEC TION 23

A CEO’S GUIDE TO SITE SELEC TION

Arkansas "We should be focused less on the minimum wage and instead focus on empowering Arkansans with the right education and job training opportunities to earn their maximum wage.”

—Gov. Sarah Huckabee

NEW GROWTH IN THE NATURAL STATE

BIG DEALS

Arkansas may be known as the home of Walmart, but there’s a lot more to the Natural State. Its manufacturing sector now provides more than 12% of the state's jobs, while the food and agribusiness industries continue to grow. Tyson Foods is headquartered here, and food companies like PepsiCo, Nestlé, Kraft and Heinz also have a notable presence. Yet the state is also home to a growing number of companies in tech, cybersecurity and financial services. While CEOs like the favorable business climate that makes it easy for businesses to relocate and expand, workers like the scenic beauty and low cost of living.

Bryce Corporation announced in April 2022 an $80 million expansion and 142 new jobs in Searcy.

KEY INCENTIVES TAXES 5.9% top corporate income tax rate #40 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 88.7% of adults 25 years of age and older graduated high school 25.3% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 3.6% RIGHT TO WORK STATE Yes QUALITY OF LIFE #44 POPULATION GROWTH 3.3% increase between 2010 and 2020

24 2023 CEO GUIDE TO SITE SELEC TION

Advantage Arkansas: Offers a state income tax credit for the creation of jobs based on the payroll of new, fulltime, permanent employees hired.

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

ArkPlus: A state income tax credit program that provides tax credits of 10% of the total investment in a new location or expansion project.

Equity Investment Incentive Program: Discretionary income tax credit of up to 33.3% of amount invested for technology-based businesses offering wages above state or county averages.

GoTextbooks announced in August 2022 a $10 million investment and 200 jobs in Little Rock.

Hostess Brands announced in September 2022 a $140 million facility and 150 new jobs in Arkadelphia.

Arkana Laboratories announced in September 2022 a $30 million expansion and 74 new jobs in Little Rock.

Owens Corning announced in October 2022 a $24.5 million expansion and 50 new jobs in Fort Smith.

Tyson Foods announced in October 2022 plans to consolidate its corporate operations from South Dakota and Illinois to the company’s headquarters in Springdale. The move is estimated to add about 1,000 jobs.

French company Veolia announced in October 2022 a $600 million investment and 125 new jobs in Gum Springs.

BIG COMPANIES 6 Fortune 500 companies headquartered in the state: Walmart Tyson Foods Murphy USA JB Hunt Transport Services Dillard’s ArcBest

EDCs

C-SUITE TESTIMONIALS

Arkansas Economic Development Commission arkansasedc.com

Fort Smith Regional Alliance fortsmithregionalalliance.com

“The growth of our Rogers facility has in many ways mirrored the growth of the Rogers and Bentonville communities during our first 53 years here. It has been the ‘work hard, play hard’ entrepreneurial spirit of the great people in the area that has made our growth …not only possible but a real pleasure. We are very thankful to have found a home here and proud to be a part of such a wonderful community.” —Rob Ruhlman, President and CEO, Preformed Line Products Company

HIGHLIGHTED PROGRAM OR INITIATIVE

“We are blessed to have the opportunity to live and work in such a beautiful state.” —Andrew Roberson, Owner and Lead Engineer, Dark Threat Fabrication

Association of Arkansas Development Organizations arkansaseconomicregions.org Little Rock Regional Chamber littlerockchamber.com/economic-development

In August 2022, the governors of Arkansas and Oklahoma announced plans to develop the Oklahoma-Arkansas region as a national hub for advanced mobility with the support of Tulsa Innovation Labs and Runway Group, a holding company in Bentonville. The effort will support the growth in the area of the advanced mobility industry, including drones, electric and autonomous vehicles, battery manufacturing, and transportation and logistics solutions.

“Phoenix Innovations is excited to be manufacturing in Russellville and our ownership is deeply rooted in this community. Our kids go to school here, we support local youth organizations and are actively involved in our area churches. Russellville, Arkansas, is a great place to conduct business, and we are excited about what the future holds.” —Nate Harrison, President, Phoenix Innovations

A CEO’S GUIDE TO SITE SELEC TION

California “While critics often say California’s best days are behind us, reality proves otherwise—our economic growth and job gains continue to fuel the nation’s economy…. California’s values and entrepreneurial spirit have powered this ascent to becoming the fourth-biggest economy in the world, and we’ll continue doubling down on industries of the future, like renewables and clean energy. I feel tremendous pride in California’s resilience, leadership and our formula for success.”

—Gov. Gavin Newsom

TAXES 8.84% top corporate income tax rate #48 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 84.4% of adults 25 years of age and older graduated high school 36.2% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 4% RIGHT TO WORK STATE No QUALITY OF LIFE #24 POPULATION GROWTH 6.1% increase between 2010 and 2020

ALL-IN ON CLEAN ENERGY

HIGHLIGHTED PROGRAM OR INITIATIVE

The Golden State is going all in on clean energy. Massive investments in alternative energy projects combined with forthcoming regulations has put California on a clear track to lead the nation in clean energy in the coming years.

This comes at a time when semiconductor manufacturing is returning to the U.S. from China and setting its eyes on California as a top destination. Signed into law in August 2022, the federal CHIPS and Science Act offers $280 billion to boost research and manufacturing of semiconductors in the U.S. And while California still ranks dead last in Chief Executive’s Best and Worst States for Business, there’s no shortage of companies setting up shop to access port access and talent. The Governor’s Office of Business and Economic Development offers many California Competes grant awards to offset taxes and costs.

Gov. Gavin Newsom announced in October 2022 the state would invest $1.2 billion in port and freight infrastructure projects to build a more efficient, sustainable and resilient system to move goods. Seventy percent of funding will go to projects to support movement through the ports of Los Angeles and Long Beach, the busiest ports in the western hemisphere.

KEY INCENTIVES California Competes Tax Credit: Offers a flexible income tax credit for business who 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.

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.”

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.

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 Governor’s Office of Business and Economic Development business.ca.gov

BIG DEALS Infinity Energy announced in December 2021 it will open an $11 million factory and create 209 new jobs in Fresno.

Apple announced in April 2021 it will add 5,000 employees to its workforce in San Diego by 2026.

Takeda Pharmaceuticals announced in July 2021 a $126 million expansion in Thousand Oaks.

Anheuser-Busch announced in August 2021 a $64 million expansion at its brewery in Los Angeles.

Vietnamese EV company VinFast announced in November 2021 investing $200 million in an L.A.-based headquarters.

L'Oréal USA announced it will open a second headquarters in El Segundo in early 2022.

Sparkz announced in April 2022 it would build a manufacturing facility in the Central Valley and create 800 jobs.

Energy startup EnerVenue announced in August 2022 it is expanding operations in Fremont.

BIG COMPANIES 51 Fortune 500 companies headquartered in the state, including: Apple Alphabet Chevron Meta Platforms Wells Fargo Intel Walt Disney HP Cisco Systems Qualcomm

Greater Sacramento Economic Council selectsacramento.com

CEO TESTIMONIALS

Los Angeles County Economic Development Corporation laedc.org

“The CalCompetes grant will play a pivotal role in our ability to attract federal funding to California and strengthen the state’s role in the development of advanced chips in the U.S.” —Joe Pon, Corporate VP, Applied Materials

San Diego Regional Economic Development Corporation sandiegobusiness.org San Francisco Office of Economic & Workforce Development oewd.org

“The support of Gov. Newsom through this GO-Biz California Competes grant will allow our company the ability to hire Californians, build our manufacturing facility and play a role in solving the climate crisis.... America’s clean energy future will reach its potential when we innovate and manufacture the next generation of energy storage domestically, and California is leading that effort.”

—Sanjiv Malhotra, Founder and CEO, Sparkz 2023 CEO GUIDE TO SITE SELEC TION 25

THOUGHT LEADERSHIP PROVIDED BY INVEST PUERTO RICO

PUERTO RICO:

An Ideal Home for Reshoring U.S. manufacturers gain greater control of and visibility into their supply chains, as well as access to a robust STEM talent pool, with this island option.

IT HASN’T BEEN AN EASY FEW YEARS for U.S. manufacturers. Since the early days of the pandemic, a perfect storm of challenges—labor shortages, changing consumer buying patterns, geopolitical unrest—has strained the global supply chain, leaving companies forced to guess at the timing for supply delivery and order fulfillment.

“China’s zero-Covid policy made it very difficult to bring product over in real time,” says Robert Salcedo, CEO of OcyonBio. “If your manufacturing is there, that cost you a lot of pain and agony.”

For OcyonBio, which develops cell and genetic treatments for different types of cancer, the central nervous system and other degenerative diseases such as Alzheimer’s, those kinds of delays present serious risks beyond the inconvenience of late shipments. “If our patients don’t get the products they need, that creates a significant health issue for them,” says Salcedo. But because the company’s manufacturing operations are located on U.S. soil, in Aguadilla, Puerto Rico, it has not had to cope with the worst of the global supply chain shortages.

It has also enjoyed other key advantages. “As a U.S. jurisdiction, we offer the same level of operational security, of stability, all the frameworks and protections that you’d expect from the U.S., including intellectual property and patent protection,” says Ella Woger, CEO of Invest Puerto Rico, the island’s official business attraction organization. “I often say that in Puerto Rico we speak three languages: English, Spanish and GMP,” she adds, referring to the Good Manufacturing Practice regulations promulgated by the

“We graduate 25,000 STEM graduates a year from this little island. That’s seven times more than California, 32 times more than New Jersey.”

—Robert Salcedo, CEO, OcyonBio

U.S. Food and Drug Administration.

As manufacturers have sought more control of and visibility into their supply chains, the U.S. has seen a surge in reshoring and nearshoring. Already, 79 percent of executives who have manufacturing operations in China have moved part of their operations to the U.S. or plan to do so in the near future, according to the Kearney 2021 Reshoring Index, and the Deloitte “Future of Freight” report estimates that American firms will reshore close to 350,000 jobs in 2022—an increase of 25 percent from 260,000 in 2021.

In response to that growing demand, OcyonBio, in addition to its own biologics, is acting as a partnership development and manufacturing organization (PDMO), providing other companies with 200,000 square feet of autonomous space for R&D and manufacturing.

“So they don’t have to build the facility,” says Salcedo. “They can lease the space

on our campus, get access to quality systems and infrastructure and run as they see fit.”

Reshoring in Puerto Rico has a slew of other advantages for bioscience companies and makers of pharmaceuticals, medical devices and high-tech equipment. “We’ve been a global bioscience industrial powerhouse for decades and decades,” says Woger, noting that half of the island’s total GDP of $106 billion comes from manufacturing, and the majority of that is from pharma and medical devices. As the largest exporter of biopharmaceuticals in the United States, totaling more than $50 billion, “we are well positioned to serve international supply chain needs,” she says, adding that Puerto Rico is home to home to 46 FDA-approved pharmaceutical manufacturing facilities, and 11 out of the world’s top 20 pharma and medical device companies have manufacturing facilities in Puerto Rico, including Amgen, Johnson & Johnson, Pfizer, Becton Dickinson, Medtronic, Boston Scientific and GlaxoSmithKline, among other large-scale manufacturers. “And because it’s a smaller footprint here, there are networking opportunities every single day. There’s just an ecosystem of like-minded individuals with whom you can exchange ideas—that’s extremely exciting,” Woger says. “There is really no better place to reshore pharma, medical device and bioscience operations than here.”

The territory’s multi-decade focus on both pharmaceuticals and technology has resulted in an outsized population of high-level talent in the field—a priority for CEOs searching for a U.S. home.

Half of university graduates in Puerto training. “The program is free to the to Rico has today is dispelling the myth Rico hold a STEM degree, outpacing learner and focused on helping unem- that the territory is uniquely vulnerable the national average by 20 percent. ployed or underemployed individuals to weather events. Woger points out “We graduate 25,000 STEM graduates launching a new career,” says Martinez. that because of Puerto Rico’s history a year from this little island. That’s sevTo be sure, one of the biggest chal- with hurricanes, the island’s companies en times more than California, 32 times lenges for those seeking to reshore or have developed solid business contimore than New Jersey,” says Salcedo, nearshore has been finding enough nuity and contingency plans to handle adding that Puerto Rico boasts the sec- skilled labor to service operations at a them. “Resilience is such a buzzword, ond-largest concentration of women cost that won’t break the budget. With but if there is a jurisdiction that has engineers in the country. historically low unemployment across proven its resilience, it’s Puerto Rico,” The territory also ranks sixth in the the 50 states, along with rising inflation, she says. world in terms availability of Salcedo agrees, pointing to a scientists and engineers and is “AS A U.S. JURISDICTION, six-month store of energy at his fahome to over 80 institutions of we offer the same level of operational cility, plus a backup generator that higher learning, including the security, of stability, all the frameworks can run for 65 days without interUniversity of Puerto Rico-Mayand protections that you’d expect ruption. “We also have solar, and agúez, which is the leading proenough water to run for a year,” he from the U.S., including intellectual ducer of scientists and engineers says. “The last hurricane we had, property and patent protection.” for NASA. “If you speak to the our company was up and running —Ella Woger, CEO, Invest Puerto Rico bioscience companies already on an hour later. We designed our fathe island, they will say that one cilities to have the infrastructure of the biggest reasons they have oper- that’s been an uphill climb—but in Puerreliability—it’s as natural here as having ations here is because of the quality of to Rico, cost of living is considerably lowheating in the [mainland] U.S.” the talent,” says Woger. er, which means a typical hire will cost But he chalks up the perception issue That was also true for Amazon Web roughly 20 percent less than in states like to a general lack of awareness about the Services, which last year opened a new New York or New Jersey, and 40 percent region. “I was talking to a CEO in San Dioffice in San Juan to support the rapid less than California, says Salcedo. ego—he thought he needed a passport adoption of cloud computing in Puerto Cost of operations is cheaper in othRico and the rest of the Caribbean. Part er ways too, thanks to some aggressive to come here,” says Salcedo. “He also of what drew the company was the solid incentives. For example, raw materials asked me for the exchange rate.”

But when executives visit, they’re pipeline for talent, says Gerardo Marti- for a commercial product are purchased able to see the reality on the ground. nez, Head Central America, Caribbean with zero taxes, “so that’s a minimum 12 They can also see the positives of the and Andean Region and MCO at AWS. percent savings,” Salcedo says. On top weather in Puerto Rico, and the tran“Puerto Rico stands out for its excellent of that, every dollar spent on R&D for quil lifestyle it affords. “My office is 20 human capital and competitiveness” as pre-commercial work earns 50 cents minutes from the beaches of Rincon,” well as a commitment to digital trans- back. “And if you’re buying equipment formation, he adds. In an effort to help for that R&D, you get 65 cents back for says Salcedo.

With the year-round balmy weather, develop even more tech talent on the every dollar. So if you stack up all those island, AWS partnered with the Depart- benefits across the manufacturing outdoor enthusiasts have everything ment of Economic Development and spend, your program could have an op- they need, says Woger. “Puerto Rico Commerce (DEDC) and Ana G. Mendez erating cost of about 45 percent of what offers a unique lifestyle—from the surf, University (UAGM) to launch the re/ you’d have on the mainland. That allows beaches and golf to the food, entertainStart workforce development training us to compete directly with India and ment and culture—there is something for everyone to enjoy. You get to work hard, program, which will provide students China on a dollar-for-dollar basis.” with cloud computing skills and job Perhaps the biggest challenge Puer- play hard and live in a tropical paradise.”

A CEO’S GUIDE TO SITE SELEC TION

Colorado “As a businessperson, I am excited about the progress our administration has made to attract and secure new businesses, help support existing companies and support the creation of more good-paying jobs for Coloradans.” —Gov. Jared Polis

TAXES 4.55% top corporate income tax rate #21 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 92.4% of adults 25 years of age and older graduated high school 44.4% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 3.6% RIGHT TO WORK STATE No

FLYING HIGH IN THE CENTENNIAL STATE

BIG DEALS

Colorado continues to maintain its pandemic rebound momentum, outpacing many states in economic performance and a low unemployment rate. Aerospace remains a hot sector and is in a strong period of growth, now directly or indirectly employing more than 274,000 residents. The state also leads in per-capita aerospace employment, with more than 500 companies in the aerospace ecosystem. U.S. Space Command is headquartered at Peterson Space Force Base, and the state is home to companies like Boeing, DISH, Ball Aerospace, Ursa Major and Maxar Technologies.

Women-owned outdoor clothing company SheFly announced in January 2022 it will locate its new headquarters in Gunnison.

KEY INCENTIVES

Naked Wines announced in May 2022 it will locate its second headquarters in Denver and create more than 250 jobs.

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.

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 Credit: Offers a variety of investment and workforce tax credits for companies operating in economically distressed areas.

Strategic Fund: Offers up to $5,000 for each job created with average annual wages of 140% of the average county wage.

EDCs Colorado Office of Economic Development & International Trade choosecolorado.com Economic Development Council of Colorado edcconline.org Metro Denver Economic Development Corporation metrodenver.org

QUALITY OF LIFE #16

Denver Economic Development & Opportunity denvergov.org/content/denvergov/en/denver-office-of-economic-development.html

POPULATION GROWTH 14.8% increase between 2010 and 2020

Colorado Springs Chamber & Economic Development Corporation coloradospringschamberedc.com

HIGHLIGHTED PROGRAM OR INITIATIVE Announced in June 2021, the Employee Ownership Tax Credit offers Colorado-headquartered businesses and their employees an incentive to establish employee stock ownership plans, worker-owned cooperatives and employee ownership trusts. It covers up to 50% of a qualified business’ conversion costs for use on its state income taxes.

28 2023 CEO GUIDE TO SITE SELEC TION

Australian ticketing platform Humanitix announced in January 2022 that Denver will be its U.S. headquarters and plans to create more than 200 jobs.

Bluestaq announced in March 2022 a large expansion in Colorado that will create more than 585 jobs.

Agricultural company Greenfield Holdings announced in April 2022 it would locate its new headquarters in Denver.

Prost Brewing Company announced in June 2022 it will locate its new headquarters in Northglenn and create more than 200 jobs.

Virta Health announced in September 2022 it will locate its new headquarters in Denver.

BIG COMPANIES 9 Fortune 500 companies headquartered in the state: Arrow Electronics DISH Network Qurate Retail Ball Aerospace Newmont DaVita Liberty Media DCP Midstream Virtual Energy

CEO TESTIMONIALS “Colorado is a great place to live, with a spirit of innovation and people who are willing to tackle big challenges to change the world for the better. It’s an ideal setup for a mission-oriented company like Virta Health.” — Sami Inkinen, Cofounder and CEO, Virta Health “It is incredible to feel so supported by the State of Colorado, Adams County and the City of Northglenn, and we know the talent pool, cost of doing business and proximity to the supply chain will all help us to stay competitive in the craft beer industry.”

—David Deline, President, Prost Brewing “Denver stood out to us not only because of the competitive incentive package offered by the state and city but because of the talent pool that would be accessible to us as our company grows.” —Kyle Egbert, CFO, Greenfield Holdings

A CEO’S GUIDE TO SITE SELEC TION

Connecticut CLIMBING THE RANKS IN THE CONSTITUTION STATE

“Connecticut is the perfect location for financial services companies because our state has the talented workforce and the resources necessary for these businesses to grow and thrive.”

—Gov. Ned Lamont

While Connecticut’s economy started to contract in 2022, the Constitution State is still maintaining positive momentum in several sectors. Insurance and financial services remain a primary driver while the manufacturing and life sciences industries continue to grow. ASML, Nuritas, GE, Stifel and Sikorsky have all announced projects in the past year. Connecticut was also recently ranked third in the nation for information technology leadership by the Center for Digital Government. The organization noted the state’s strong culture of innovation with high-performance solutions in all aspects of operations, governance and administration.

KEY INCENTIVES

TAXES 7.5% top corporate income tax rate #47 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 91.1% of adults 25 years of age and older graduated high school 42.1% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 4.3%

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.

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

Angel Investor Tax Credit: Offers $25,000 or more in a qualified Connecticut business, equal to up to 25% of the investor’s cash investment.

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 Connecticut Department of Economic and Community Development portal.ct.gov/DECD AdvanceCT advancect.org

RIGHT TO WORK STATE No

Metro Hartford Alliance metrohartford.com

QUALITY OF LIFE #20

Connecticut Economic Development Association cedas.org

POPULATION GROWTH 0.9% increase between 2010 and 2020

HIGHLIGHTED PROGRAM OR INITIATIVE In August 2022, the state started 19 job training programs funded by CareerConneCT, a $70 million program to help people whose employment was impacted by the pandemic get back to work. It offers reskilling opportunities in manufacturing, information technology, healthcare and other sectors.

BIG DEALS: Hudson Bay Capital announced in February 2022 an expansion and 40 new jobs in Hartford.

Sikorsky, a Lockheed Martin company, announced in March 2022 that it would bring new helicopter lines to Stamford and retain headquarters in the state through 2042.

Wealth management firm Mirador announced in April 2022 an expansion and 250 new jobs in Stamford.

Manufacturing company Element 119 announced in June 2022 an expansion and 36 new jobs in Hartford.

Evolution Gaming Studio started operating in the state in July 2022 and is expected to hire up to 400 employees.

Wealth management company Stifel announced in August 2022 an expansion that will create 50 jobs in Stamford.

BIG COMPANIES 15 Fortune 500 companies headquartered in the state, including: Cigna Charter Communications Hartford Financial Services Group Stanley Black & Decker Synchrony Financial Otis Worldwide XPO Logistics Booking Holdings Amphenol EMCOR Group CEO Testimonials “In our view, Stamford is the state’s financial services hub, and given its close proximity to other Stifel offices and to many of our clients, we believe having a presence there is important.” —Victor Nesi, Co-President and Head of the Institutional Group, Stifel Financial “Our collaboration with the State of Connecticut and Gov. Ned Lamont on this project will sustain and help bring more high-tech, high-paying jobs to the state while bolstering Connecticut’s leadership in aerospace production for decades to come.” —Paul Lemmo, President, Sikorsky “As we continue to strategically scale our business, attract top talent and provide best-in-class solutions to our global clientele, it became clear that Connecticut was the ideal location for expansion, given its infrastructure, proximity to metropolitan areas and commitment to business.” —Sander Gerber, CEO and Chief Investment Officer, Hudson Bay Capital

2023 CEO GUIDE TO SITE SELECTION 29

A CEO’S GUIDE TO SITE SELEC TION

Delaware “Delaware has a long legacy of excellence in the financial services industry, and we remain committed to fostering an innovation ecosystem for businesses of all sizes. Our location in the heart of the Mid-Atlantic region, strong workforce and quality of life make Delaware a great place for companies to put down roots and create jobs.”

—Gov. John Carney

TAXES 8.7% top corporate income tax rate #16 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 91.4% of adults 25 years of age and older graduated high school 35.6% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 4.3% RIGHT TO WORK STATE No QUALITY OF LIFE #23 POPULATION GROWTH 10.2% increase between 2010 and 2020

THE FIRST STATE DELIVERS ON FINANCES

BIG DEALS

While the First State may lack in size and population, it offers businesses and workers many financial advantages. Wallet Hub's 2022 Tax Burden by State noted that Delaware has the third-lowest tax burden in the United States, in addition to a lower cost of living than most East Coast states. Another study also ranked it the sixth-lowest cost of living in the United States, with 75% of households owning their own home. Biosciences remains a hot sector and has now generated more than $2 billion in GDP and employs 11,000 residents, according to the Delaware Prosperity Partnership (DPP).

Investor Cash Management announced in December 2021 a $15 million headquarters and customer service center in Wilmington that will create nearly 400 jobs.

KEY INCENTIVES

DuPont announced in August 2022 a $50 million expansion and 10 new jobs at its facility in Wilmington.

Delaware Strategic Fund: Offers grants and low-interest loans to promote job creation and capital investment.

New Economy Jobs Tax Credit: Offers an annual tax credit of up to 40% of the withholding taxes collected for employers who add at least 200 jobs with an annual salary of $70,000, or 50 jobs with salaries of at least $120,000.

New Business Facility Tax Credit: Offers a credit of $500 per employee hired and $500 for every $100,000 in capital invested for companies that create five jobs and invest at least $200,000.

Transportation Infrastructure Investment Fund: Allows companies to make funded roadmap infrastructure improvements to support job-creating projects.

Workforce Training Grants: Offers matching grants of up to $100,000 per project for workforce training and development.

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

HIGHLIGHTED PROGRAM OR INTIATIVE Launched in February 2021, the Science Inc. Accelerator Program brings together a cohort of 10 startups every year to grow their companies. Over the course of four months, companies participate in weekly programming, mentoring and coaching, culminating in the Science Inc. Demo Day, where each company can pitch to investors and partners.

30 2023 CEO GUIDE TO SITE SELECTION

Water quality testing instrumentation company LaMotte announced in February 2022 a $3.3 million expansion and 100 new jobs in Newark.

Agilent Technologies announced in May 2022 a $7 million upgrade and expansion of its facilities in Little Falls.

Green energy startup Versogen announced in June 2022 a $4.8 million expansion at a new facility at the FMC Stine Research Center in Newark, Delaware.

BIG COMPANIES DuPont (Fortune 500 headquarters) Coinbase Global (Fortune 500 headquarters) Chemours Enovis Navient Incyte SLM Ashland

CEO TESTIMONIALS “As we expand to meet industry growth, we’re pleased to have identified a new facility near our existing CMP manufacturing operations in Delaware, where we can continue to have close collaboration with our experienced colleagues in operations, engineering, quality and other interconnected teams.” —John Singer, Vice President, Integrated Operations, DuPont Electronics & Industrial “Agilent has a long and successful history in the State of Delaware, and this investment in our laboratories will enable world-class R&D for the fast-growing biopharma market, while expanding and supporting our Delaware-based team… Delaware is the right place for this R&D investment.” —John Gavenonis, Vice President and General Manager, Agilent Chemistries and Supplies Division “After an extensive search, ICM is pleased and proud to announce that Wilmington, Delaware, is the home of our new corporate headquarters. We look forward to building on its foundation as a world-class center of payments and financial services, and we believe the appeal of the city and state will contribute to our ability to attract new colleagues and create a significant number of quality jobs while developing next-generation technologies that empower individuals to build better financial futures.” —Fred Phillips, Founder and CEO, ICM

A CEO’S GUIDE TO SITE SELEC TION

Florida “Florida has the lowest unemployment rate among the 10 most populous states and the highest number of new business formations because we have encouraged workforce development, kept the economy open and put Florida families first.”

—Gov. Ron DeSantis

TAXES 5.5% top corporate income tax rate #4 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 89.8% of adults 25 years of age and older graduated high school 33.2% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 2.7% RIGHT TO WORK STATE Yes QUALITY OF LIFE #10 POPULATION GROWTH 14.6% increase between 2010 and 2020

THE SUNSHINE STATE'S BRIGHT OUTLOOK

BIG DEALS

While Florida took an economic and physical beating from Hurricane Ian in September 2022, its economy remains strong. Gov. Ron DeSantis isn’t shy about promoting Florida’s economic success, noting in May 2022 that private sector employment growth was double that of the national average. Additionally, the state closed out the fiscal year with a record $20 billion in state reserves. Financial and tech companies are flocking to cities like Tampa and Orlando, while the Space Coast continues to attract leading aerospace companies. The military and defense industry also continues to thrive in the state, generating more than $96.6 billion, or 8.5% of the state economy, according to the 2022 Florida Defense Industry Economic Impact Analysis.

Switzerland-based Inpeco announced in September 2022 plans to open a regional headquarters in Tampa.

KEY INCENTIVES

Astronics Test Systems announced in March 2022 it will move its headquarters to Orlando and add 60 jobs over the next two years.

Chile-based software developer InBattle announced in June 2022 it will open a state-of-the-art VR arena in the Miami area.

KPMG announced in August 2022 it will add 650 new jobs in the Orlando region over the next two years.

Health tech company BeniComp announced in August 2022 an expansion at its Tampa headquarters with 100 new jobs.

Capital Investment Tax Credit (CITC): Offers an annual corporate income tax credit, for up to 20 years, for projects that create a minimum of 100 jobs and invest at least $25 million in eligible capital costs.

Iceland-based Sahara announced in October 2022 it will open its first U.S. office in Orlando.

High Impact Performance Incentive: Offers a grant for projects in clean energy, life sciences, financial services, corporate headquarters and other sectors that invest $50 million and create 50 new jobs over a three-year period.

Merit Logistics announced in October 2022 it will relocate its corporate headquarters from California to Tampa.

Research and Development Tax Credit: Offers a credit of up to 10 percent of the excess qualified research expenses.

22 Fortune 500 companies headquartered in the state, including: Publix Super Markets World Fuel Services Jabil Lennar AutoNation Carrier Global L3Harris Technologies NextEra Energy Fidelity National Financial

Urban Job Tax Credit Program: Offers between $500 and $2,000 per qualified job for eligible businesses located in one of 13 designated urban areas.

Veterans Florida Business Training Grant: Offers matching grants of up to $8,000 per veteran employee trained in high-demand fields.

EDCs Enterprise Florida enterpriseflorida.com Greater Fort Lauderdale Alliance gflalliance.org Miami-Dade Beacon Council beaconcouncil.com Tampa Bay Economic Development Council tampaedc.com Orlando Economic Partnership orlando.org

HIGHLIGHTED PROGRAM OR INITIATIVE Now in its second year, the Enterprise Florida Minority and Small Business Boot Camp educates minority and small businesses on information and practices integral to growth and success. The program is run in partnership with Florida SBDC Network, Florida Department of Management Services and Florida A&M University School of Business and Industry. Topics have included networking, certifications, generational wealth building and the basics of exporting.

Dassault Falcon Jet announced in October 2022 it will build a new maintenance facility in Tallahassee.

BIG COMPANIES

CEO TESTIMONIALS “Highly rated schools, colleges, universities and trade schools are a tremendous asset for businesses in Greater Fort Lauderdale.” —Kim Sweers, Managing Partner, FB Marine Group “Orlando’s welcoming and collaborative government and business community made it an easy decision to relocate Astronics’ headquarters from Irvine to Orlando.”

—Jim Mulato, President, Astronics Test Systems “Our Orlando office has very diverse talent from different areas of the world, so we can start thinking outside of the box and bring different cultures into the mix.”

—Sigurdur Svansson, Cofounder and Owner, Sahara

“Tampa is a thriving metropolitan area, and its downtown core is packed with leading healthcare institutions conducting groundbreaking research, developing new technologies and training the healthcare leaders of tomorrow.”

—Maricel Roberts, Managing Director, Inpeco, Americas

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A CEO’S GUIDE TO SITE SELEC TION

Georgia “All across Georgia, communities are celebrating record-breaking jobs and investment. As the number one state to do business for an unprecedented nine years, we’re attracting the types of jobs and opportunities that benefit families and their neighborhoods for generations. We’ll continue to recruit diverse industries that build on each other’s strengths so that we remain a destination state for job creators for years to come.”

—Gov. Brian P. Kemp

TAXES 5.75% top corporate income tax rate #32 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 89% of adults 25 years of age and older graduated high school 34.6% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 2.9% RIGHT TO WORK STATE Yes QUALITY OF LIFE #18 POPULATION GROWTH 10.6% increase between 2010 and 2020

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BIG DEALS IN THE PEACH STATE

BIG DEALS

The fiscal year 2022 was another record year for economic development and job creation in Georgia, according to the Department of Economic Development. Investments and job creation were 94% and 53% above prior economic development records, respectively. In 2021, the state also set a new export record amounting to $42.36 billion.

Among several notable investments in 2022 was Hyundai’s groundbreaking on a $5.5 billion electric vehicle factory near Savannah. The project is the largest in the state’s history and is expected to create 8,000 new jobs.

Carvana announced in February 2022 an expansion that will create 3,500 jobs in Atlanta.

KEY INCENTIVES

NewCold announced in October 2022 it will build a $333 million distribution facility and create 170 jobs in Henry County.

Job Tax Credit: Offers a tax credit $1,250 to $4,000 per year for five years for every new job created. In some areas, the credit can also lower payroll withholding obligations.

Port Tax Credit Bonus: Offers a tax credit for companies that increase imports or exports through a Georgia port by 10% for base port traffic amount that equals at least 10 TEU (20-foot equivalent) units.

Quality Jobs Tax Credit: Offers a credit of $2,500 to $5,000 per new job annually for companies that create 50 jobs that pay at least 10% above the average wage of the county.

R&D Tax Credit: Offers a tax credit for research and development activities, including lab work, prototyping products or processes, or conducting tests on new manufacturing equipment.

EDCs Georgia Department of Economic Development georgia.org Invest Atlanta investatlanta.com Greater Columbus Georgia Chamber of Commerce choosecolumbusga.com Savannah Economic Development Authority seda.org

HIGHLIGHTED PROGRAM OR INITIATIVE The Georgia Center of Innovation, an arm of the Georgia Department of Economic Development, is continually growing and helps businesses clear a path to innovation with expert advice and resources. It offers a wide range of services and programs to businesses and connects them to staff members, external partners and mentors in many industries, including aerospace, agtech, energy technologies and logistics.

Duluth Trading Company announced in August 2022 a $53 million distribution center and 300 new jobs in Adairsville.

Profile Products announced in September 2022 plans to establish operations in Jasper County. The $35 million project will create 80 jobs.

Solvay Specialty Polymers in Augusta received a $178 million grant in October 2022 to boost the electric battery supply chain. The project will create 600 jobs.

Hyundai Motor Group broke ground in October 2022 on a $5.5 billion electric vehicle factory near Savannah. The project, the largest in state history, will create 8,000 jobs.

BIG COMPANIES 19 Fortune 500 companies headquartered in the state, including: Home Depot United Parcel Service Coca-Cola Delta Air Lines Southern Aflac Genuine Parts WestRock PulteGroup Mohawk Industries

C-SUITE TESTIMONIALS "We are pleased to continue our operations in Georgia and the Georgia Ports Authority market with what will become our largest distribution center to date. The labor pool and skilled logistics workforce of the greater Savannah area made our decision easy when selecting another site for distribution.” —Caleb Clugston, Vice President of Network Optimization, WebstaurantStore “Georgia offers a great workforce that embraces an aspiration to improve our environment. The Jasper County facility marks an incredible step forward in our long-term growth strategy. The world is asking for sustainable technologies.

We’re building them. We’re building them right here in Jasper County.” —Jim Tanner, CEO, Profile Products “This investment in our Dublin facility will ensure our business has the materials necessary to serve our customers during this time of unprecedented demand. The Dublin community has welcomed us with open arms over the past two years, and through this investment and hiring, we look forward to further strengthening our relationship with the people of Dublin, Laurens County and the State of Georgia.” —Alan McLenaghan, General Manager, Saint-Gobain ADFORS North America

A CEO’S GUIDE TO SITE SELEC TION

Idaho

SEMICONDUCTOR GROWTH IN THE GEM STATE

“Idaho sets the example for the rest of the country to follow, even amid historic inflation. In Idaho, we stand up for limited government and responsible strategic investments where they count, and our approach works. The proof is in the performance.”

—Gov. Brad Little

TAXES 6% top corporate income tax rate #15 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 91.3% of adults 25 years of age and older graduated high school 30.7% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 2.8% RIGHT TO WORK STATE Yes QUALITY OF LIFE #5 POPULATION GROWTH 17.3% increase between 2010 and 2020

Bringing back semiconductor manufacturing to the United States is shaping up to be a big win for many states in the West, including Idaho. Boise-headquartered Micron recently announced a $15 billion expansion and 2,000 jobs at a facility in Boise. As part of its commitment to the state, it will also funnel additional investments to expand K-12 STEM education and deepen its partnership with universities. The company is also opening a world class childcare facility for its growing employees. Along with the semiconductor industry, food processing and advanced manufacturing are two fast growing sectors. Last fiscal year, 16 companies either expanded or located to the state due to the pro-business climate and economic resiliency

KEY INCENTIVES Tax Reimbursement Incentive: Offers a tax refund of up to 30% of their income for up to 15 years for creating at least 20 jobs in rural areas and 50 in urban areas.

Idaho Business Advantage: Offers enhanced incentives for businesses that invest at least $500,000 in new plant facilities that create at least 10 jobs paying $40,000 annually.

Workforce Development Training Funds: Offers reimbursement for the training of new positions being created or retained.

Information Technology Equipment Exemption: Offers a sales tax exemption on server equipment and construction materials used in the construction of a new data facility.

EDCs Economic Development Districts of Idaho commerce.idaho.gov/communities/economic-development-districts-idaho Southern Idaho Economic Development southernidaho.org

BIG DEALS Azek announced in March 2021 a $107 million manufacturing facility for deck products in Boise.

Lamb Weston announced in July 2021 a $490 million expansion in American Falls.

True West Beef announced in July 2021 a $195 million processing plant in Boise.

Micron announced in September 2022 it will invest $15 billion in a leading memory manufacturing facility in Boise. The project is expected to create 2,000 direct jobs.

Meta announced in February 2022 it will construct an $800 million data center in the city of Kuna.

BIG COMPANIES 2 Fortune 500 companies headquartered in the state: Albertsons (Fortune 500 headquarters) Boise Cascade (Fortune 500 headquarters) Lamb Weston Holdings Micron

CEO TESTIMONIALS “Kuna is a great place to call home and we are committed to investing in the community’s long-term vitality.

We look forward to having a strong, fruitful partnership for years to come.” —Darcy Nothnagle, Director of Community and Economic Development, Meta “Our new leading-edge memory manufacturing fab will fuel U.S. technology leadership, ensuring a reliable domestic supply of semiconductors that is critical to economic and national security. We also appreciate the support of Gov. Little and his administration, Idaho state legislators, [Boise's] Mayor McLean and our partners at Idaho Power. We are proud of the positive impact this investment will have on the community and our more than 6,000 employees located in Boise, Micron’s headquarters and the epicenter of our innovation for over 40 years.” —Sanjay Mehrotra, President and CEO, Micron

Boise Valley Economic Partnership bvep.org Nampa Economic Development cityofnampa.us/858/Economic-Development

HIGHLIGHTED PROGRAM OR INITIATIVE Formed in 2020, the Idaho Commerce Office of Broadband’s mission is to improve broadband access across the state. In its first year, the office awarded more than $38 million to fund 83 projects across Idaho, improving broadband infrastructure and service for Idaho households, businesses, libraries, healthcare clinics, hospital facilities, public safety organizations and local governments in 147 communities across the state.

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A CEO’S GUIDE TO SITE SELEC TION

Illinois “Illinois’ greatest strength is its people—and we are committed to preparing our workforce for the jobs of the future.” —Gov. JB Pritzker

TAXES 9.5% top corporate income tax rate #36 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 90.2% of adults 25 years of age and older graduated high school 37.1% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 4.6% RIGHT TO WORK STATE No QUALITY OF LIFE #30 POPULATION GROWTH 0.1% decrease between 2010 and 2020

THE NEW TRILLIONAIRE STATE

BIG DEALS

In October 2022, data from the Bureau of Economic Analysis at the U.S. Department of Commerce found Illinois now produces more than $1 trillion in economic activity. This makes the state only the fifth U.S. state to reach the milestone, behind California, New York, Texas and Florida. Economic development officials credit this success to infrastructure investments, high educational attainment, robust spending and access to business capital. Manufacturing remains the largest industry here, contributing more than $132 billion to the state economy annually. Food and agriculture are also growing, with Kellogg’s, Mars Wrigley, McDonald’s and Tyson Foods all announcing expansions in the past year.

Virginia-based Mars Wrigley announced in April 2022 a $40 million investment and 30 new jobs in its Chicago facility on Goose Island.

KEY INCENTIVES

Tyson Foods broke ground in August 2022 on a $180 million expansion project in Caseyville that is expected to create 250 jobs.

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 of up to $500 for the cost of training their employees.

High Impact Business Program: For large-scale economic development projects located outside of eligible enterprise zone areas, Illinois offers a number of applicable tax incentives, such as sales tax exemption on building materials and utilities. To qualify, businesses must create at least 500 full-time jobs and make a minimum capital investment of $12 million or retain 1,500 jobs and invest $30 million.

Kellogg's announced in June 2022 it was moving its snack division corporate headquarters from Battle Creek, Michigan, to Chicago's River North.

New Jersey-based Ferrero North America announced in June 2022 a $214 million expansion at its chocolate pressing and product manufacturing plant in Bloomington.

McDonald’s announced in September 2022 plans to expand its headquarters and create an additional innovation center in Chicago.

BIG COMPANIES 37 Fortune 500 companies headquartered in the state, including: Walgreens Boots Alliance Archer-Daniels-Midland State Farm Insurance AbbVie Allstate Caterpillar Deere Abbott Laboratories Exelon

C-SUITE TESTIMONIALS EDCs Illinois Department of Commerce and Economic Opportunity dceo.illinois.gov Intersect Illinois intersectillinois.org World Business Chicago worldbusinesschicago.com Together Chicago togetherchicago.com/economic-development

HIGHLIGHTED PROGRAM OR INITIATIVE Rebuild Illinois, a bipartisan infrastructure plan, has been in force for the last three years and just had its last dollars of the program announced. The $1.5 billion investment has helped counties, municipalities and townships address their transportation needs and modernize broadband, universities, innovation hubs and more.

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Harvest Food Group announced in April 2022 construction of a new facility in New City. The $60 million project will create 50 jobs.

“We are choosing to stay in Morton because of our committed employees’ proximity to Tremont headquarters, and access to the interstate. We look forward to growing our presence as an employer of choice in the greater Peoria area.”—Keith Crow, Director of Finance, Precision Planting “Peru's proximity to our customer base, transportation infrastructure and access to outstanding manufacturing and engineering talent make it an ideal location for us to continue our growth.” —Jim Schnepper, CEO, GAF “The investments we’re making in Bloomington are fueling continued growth for Ferrero in North America and are also creating important job opportunities in the community. We are thrilled to continue growing here with the invaluable support of the City of Bloomington, McLean County and the State of Illinois.” —Todd Siwak, President and Chief Business Officer of Ferrero North America

A CEO’S GUIDE TO SITE SELEC TION

Indiana

HOLDING MANUFACTURING MOMENTUM IN THE HOOSIER STATE

“Obviously, a state like Indiana that provides certainty, stability, continuity and predictability is a very attractive ecosystem for [manufacturers] to grow their operation, and we want them to grow in Indiana, not in the other 49 states or territories.”

—Gov. Eric J. Holcomb

The Hoosier State continues to capitalize on the growth in renewable energy. It is home to more than 1,200 wind turbines and the fourth-largest wind farm in the country.

The electric vehicle industry is thriving in the state, with a $2.5 billion EV battery manufacturing facility being built in Kokomo. The state has made an effort to bring in international investors, with the governor making more than a dozen trips to foreign lands since taking office, meeting with European companies interested in doing business in the Hoosier State. While agriculture remains a key industry, there’s been more focus on growing the life sciences and advanced manufacturing sectors.

KEY INCENTIVES TAXES 4.9% top corporate income tax rate #9 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 90.6% of adults 25 years of age and older graduated high school 28.9% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 3% RIGHT TO WORK STATE Yes QUALITY OF LIFE #32 POPULATION GROWTH 4.7% increase between 2010 and 2020

Economic Development for a Growing Economy (EDGE): Offers a refundable corporate income tax credit based on the tax withholdings generated from new job creation.

Headquarters Relocation Tax Credit (HRTC): Offers a tax credit of up to 50% of business relocation costs, including capital investment.

Hoosier Business Investment (HBI) Tax Credit: Businesses that create jobs and make capital improvements to a facility may qualify for this nonrefundable tax credit. The maximum credit is 10% of qualified capital investment.

Industrial Development Grant Fund: Offers assistance (reimbursement up to 50%) to municipalities to perform infrastructure improvements and upgrades needed to serve proposed projects.

Skills Enhancement Fund Workforce Training Grant: Offers assistance to support the training and upgrading of skills of employees required to support new capital investments. The grant may be provided to reimburse up to 50% of eligible training costs over a two-year period.

EDCs Indiana Economic Development Corporation iedc.in.gov Indy Chamber indychamber.com/economic-development Greater Fort Wayne Inc. Metro Chamber Alliance greaterfortwayneinc.com/economic-development Growth Alliance for Greater Evansville growthallianceevv.com

HIGHLIGHTED PROGRAM OR INITIATIVE To further grow and diversify the state’s industries, in August 2022, Indiana announced that it would be offering a new Film and Media Tax Credit for television, film, music or digital media productions. The goal is to help forge a robust, competitive and sustainable media and infrastructure in Indiana while attracting new investment and tourism to the state.

BIG DEALS Stellantis and Samsung SDI announced a joint venture in May 2022 to invest more than $2.5 billion to build a new electric vehicle battery manufacturing facility and create 1,400 jobs in Kokomo.

SkyWater Technology announced in July 2022 an $1.8 billion semiconductor facility and 750 new jobs in West Lafayette.

ZrO Waste Group announced in August 2022 a $42 million plant and 259 new jobs in Mooresville.

Fashion retailer SHEIN announced in September 2022 a warehouse expansion and 1,000 new jobs in Whitestown.

Diamond Pet Foods announced in September 2022 a $259 million distribution center and 170 new jobs in Rushville.

RxLightning announced in October 2022 an expansion of its headquarters and 175 new jobs in New Albany.

Bunge announced in October 2022 a $445 million expansion and 70 new jobs in Morristown.

BIG COMPANIES 8 Fortune 500 companies headquartered in the state: Elevance Health Eli Lilly Cummins Steel Dynamics Corteva Berry Global Thor Industries Zimmer Biomet

C-SUITE TESTIMONIALS “Our new expanded headquarters will allow us to continue our growth and work collaboratively to accelerate the speed at which patients get access to medicine they need. The state of Indiana, the city of New Albany and One Southern Indiana have been amazing partners in this endeavor.” —Julia Regan, Cofounder and CEO, RxLightning “Through our alliance with the Indiana Economic Development Corporation and Purdue Research Foundation, we have a unique opportunity to increase domestic production, shore up our supply chains and lay the groundwork for manufacturing technologies that will support growing demand for microelectronics.” —Thomas Sonderman, President and CEO, SkyWater Technology “This site near to our existing Huntington facility made sense because there was land available, and we knew we could access a skilled workforce. We are grateful for the continued support and collaboration from the economic development teams from the State of Indiana, Huntington County and the Huntington community.” —Steve Rooney, CEO and General Manager, Teijin’s Composites Business Unit, Teijin Automotive Technologies 2023 CEO GUIDE TO SITE SELECTION 35

A CEO’S GUIDE TO SITE SELEC TION

Iowa

HACKING AWAY TAXES IN THE HAWKEYE STATE

““We cut taxes! We kept our economy open! Applied common sense and responsible budgeting! Chose growth over government!

And the results are in: Here in Iowa, America still works!”

—Gov. Kim Reynolds

TAXES 9.8% top corporate income tax rate #38 on the Tax Foundation’s State Business Tax Climate Index ranking

The Cato Institute recently gave Gov. Kim Reynolds a grade of “A” for fiscal policy as one of the governors who cut taxes and spending the most. Reynolds' tax reforms date back to 2018, when she cut the corporate tax rate from 12% to 9.8%. She pursued further reforms in the following years, and then, in 2022, approved a bill to consolidate individual income taxes into a single rate structure of only 3.9%. As of press time, existing legislation would phase down the corporate tax from 9.8% to 5.5% if revenue targets were met. “Corporate tax levels directly affect economic activity in states, and those with more competitive structures and rates are in much better positions to grow existing businesses and attract new ones,” said Reynolds.

KEY INCENTIVES High Quality Jobs Program: Offers financial assistance to offset the cost incurred to locate, expand or modernize an Iowa facility.

Renewable Chemical Production Tax Credit: Incentivizes the production of high-value chemicals derived from biomass feedstocks.

EDUCATION 93.3% of adults 25 years of age and older graduated high school

Research Activities Tax Credit: Offers an additional tax credit for companies that meet the qualifications of the federal research credit for research and development investments.

30.5% of adults 25 years of age and older have a bachelor’s degree or higher

Industrial New Jobs Training Program: Provides tax credits for businesses that provide additional training to employees and expand their workforce.

UNEMPLOYMENT RATE 2.9% RIGHT TO WORK STATE Yes QUALITY OF LIFE #12 POPULATION GROWTH 4.7% increase between 2010 and 2020

EDCs Iowa Economic Development Authority iowaeda.com Iowa Area Development Group iadg.com Greater Des Moines Partnership dsmpartnership.com/growing-business-here Cedar Rapids Metro Economic Alliance cedarrapids.org

HIGHLIGHTED PROGRAM OR INITIATIVE Announced in May 2022, the Child Care Business Incentive Grant Program encourages employers to offer childcare as a benefit to their employees. It provides a total of $25 million to support childcare programs across the state to include partnerships with existing centers and even development of an on-site childcare center.

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BIG DEALS Dee Zee announced in September 2022 it will manufacture structural components for new electric vehicles at its facility in Des Moines. The new programs will add 105 jobs by Q3 2023.

Ancient Brands Milling broke ground in October 2022 on a $26.5 million investment to relocate and expand a manufacturing plant in Dyersville.

Qore, a joint venture between Cargill and German chemical company HELM, broke ground on a $300 million chemical plant in Eddyville.

Collins Aerospace broke ground in July 2022 on a $14 million expansion of its additive manufacturing facility in West Des Moines.

Google announced in October 2022 a $600 million expansion and 31 new jobs at its data center in Council Bluffs.

Oracle Aviation broke ground in November 2022 on a new aviation center in Sioux City.

BAE Systems opened in November 2022 a $100 million state-of-the-art engineering and manufacturing center of excellence in Cedar Rapids.

BIG COMPANIES Principal Financial Group (Fortune 500 headquarters) Casey’s General Stores (Fortune 500 headquarters) Dotdash Meredith American Equity Investment Life Holding Winnebago Industries Renewable Energy Group HNI

C-SUITE TESTIMONIALS “We are pleased to establish operations in the community of Dubuque and bring new jobs to the area with industry-leading pay and benefits. The region has a quality workforce and is an ideal location to service our customers across the U.S. and Canada.” —Scott Salmon, President, Simmons Pet Food “Iowa is affordable, with great education and a quality of life that appeals to millennials, seniors and everyone in between. The state has also emerged as a hub of innovation, another reason companies should have Iowa at the top of their list as they look to start or expand a business.” —Dan Houston, President and CEO, Principal Financial Group "Iowa has a deep understanding of the positive impact potential of projects like ours and has created an environment that is conducive to success…. We are thrilled to bring our production to Clinton.” —Daniel Meyer, President, Spiber America, LLC

A CEO’S GUIDE TO SITE SELEC TION

Kansas

INVESTMENTS ARE SPROUTING IN THE SUNFLOWER STATE

“As the largest private investment in Kansas history and one of the largest EV battery manufacturing plants of its kind in the country, this project will be transformative for our state’s economy, providing in total 8,000 high-quality jobs that will help more Kansans create better lives for themselves and their children. Winning this project has shown that Kansas has what it takes to compete on a global scale, and that our pro-business climate is driving the technological innovation needed to achieve a more prosperous and sustainable future.” —Gov. Laura Kelly

TAXES 7% top corporate income tax rate #25 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 91.9% of adults 25 years of age and older graduated high school 35.4% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 2.8% RIGHT TO WORK STATE Yes QUALITY OF LIFE #26

While the Sunflower State's landscape experienced a severe drought in 2022, its economy didn’t. Wichita has been called the "air capital of the world," due to the $2.3 billion in aerospace products it makes every year, and it's home to two of the world's largest aircraft manufacturers. Kansas currently has 1,000 infrastructure programs in the hopper, and the newly announced Panasonic Energy Company building is the largest economic development project in the state’s history.

KEY INCENTIVES Promoting Employment Across Kansas (PEAK): Offers ability to retain 95% of payroll tax withholding for 7 to 10 years for qualified companies.

Kansas Downtown Redevelopment Tax Rebate: A rebate of property tax collected on properties that have undergone approved improvements.

High Performance Incentive Program (HPIP): Offers a 10% corporate income tax credit on qualified capital investments of at least $50,000 for companies that pay above-average wages.

The KITE Proof of Concept (POC): Designed to fill a need for support where typical funding mechanisms are not available, acting as a bridge between federal funding for basic research and commercial seed funding by angel or venture investors.

BIG DEALS Scorpion Biological Services announced in April 2022 a $650 million facility and 500 new jobs in Manhattan.

Garmin announced in July 2022 a $145 million expansion and 900 new jobs at its headquarters in Olathe.

Simmons Pet Food announced in July 2022 a $115 million expansion and 177 new jobs in Edgerton and Emporia.

Panasonic Energy Co. announced in July 2022 a $4 billion electric vehicle battery facility and 4,000 new jobs in De Soto.

Pinnacle Aerospace announced in October a $14.7 million facility and 155 new jobs in Wellington.

Great Plains Manufacturing, in partnership with Kubota, announced a $53 million expansion and 190 new jobs in Salina.

Heartland Coca-Cola Bottling Company announced in October 2022 a $250 million investment to move production operations to a new facility in Olathe.

Catalent announced in October 2022 a $12 million expansion and 50 new jobs in Kansas City.

BIG COMPANIES Seaboard (Fortune 1000 headquarters) Spirit AeroSystems (Fortune 1000 headquarters) Euronet Worldwide (Fortune 1000 headquarters) AMC Entertainment (Fortune 1000 headquarters)

EDCs

C-SUITE TESTIMONIALS

Kansas Department of Commerce kansascommerce.gov

“We wanted to build our new company here because we knew there was a talented workforce already in place in this community.” —Scott Brown, President, Pinnacle Aerospace

Kansas Economy kansaseconomy.org Greater Topeka Partnership topekapartnership.com Greater Wichita Partnership greaterwichitapartnership.org Economic Development Corporation of Kansas City edckc.com

HIGHLIGHTED PROGRAM OR INITIATIVE The State Trade Expansion Program (STEP) is funded in part by the U.S. Small Business Administration and helps Kansas non-exporters get started and existing exporters expand into additional foreign markets. More than 160 Kansas small businesses have participated since the program began in 2012 and have achieved more than $33 million in export sales.

“We are excited about this partnership with Dodge City. This community has a local and skilled labor force, a supportive and expanding agricultural region and an excellent transportation network. It is a great location to invest in the future.” —David Ahlem, President and CEO, Hilmar Cheese “We’ve been impressed with Wichita. One year ago, we expanded our presence to the area, and we’ve come to realize the incredible potential in the city and its people.

This is where we want to grow our company, officially naming Wichita as our global headquarters.”

—Paul Anderson, CEO, Novacoast

POPULATION GROWTH 3% increase between 2010 and 2020

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A CEO’S GUIDE TO SITE SELEC TION

Kentucky “Manufacturing is at the heart of everything we do in terms of economic development in this state. This sector has been a driving force behind our recent success and will continue to be a pillar of our economy for generations to come. I want to thank every manufacturer across the Commonwealth for their part in our continued success, as well as every single resident who works to produce Kentucky-made products that are distributed around the world.” —Gov. Andy Beshear

TAXES 5% top corporate income tax rate #18 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 88.0% of adults 25 years of age and older graduated high school 27.0% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 3.9% RIGHT TO WORK STATE Yes QUALITY OF LIFE #41 POPULATION GROWTH 3.8% increase between 2010 and 2020

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BUILDING BIG IN THE BLUEGRASS STATE

HIGHLIGHTED PROGRAM OR INITIATIVE

While the Bluegrass State has seen its share of challenges in recent years, it is flush with business opportunities and is becoming known as a manufacturing hub, for everything from bourbon to electric vehicle batteries.

In 2021, of the 21,000 jobs that were created statewide, 90% were in manufacturing, according to the Kentucky Association of Manufacturers. That momentum continued in 2022. Toyota, Ford, GE Appliances and AESC have made new investments or expansions here in the past couple of years.

In July 2022, Gov. Andy Beshear rolled out the Kentucky Product Development Initiative (KPDI), a collaboration between the Team Kentucky Cabinet for Economic Development and Kentucky Association for Economic Development, which makes $100 million in state funding available to support potential upgrades to sites and buildings statewide. KPDI provides an opportunity for local governments and EDOs to seek funding for transformative site and infrastructure improvement projects.

KEY INCENTIVES Kentucky Business Investment Program: Offers income tax credits and wage assessments to eligible companies that locate or expand operations in the state.

SBIR-STTR Matching 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 creditworthy small businesses that would typically fall just outside of normal lending guidelines.

Bluegrass State Skills Corporation Skills Training Investment Credit (STIC): Offers grants and tax credits to businesses that sponsor skills training programs for their employees.

Kentucky Enterprise Initiative Act: Offers sales and use tax refunds for eligible companies investing at least $500,000 for construction costs, building fixtures, equipment used in research and development and electronic processing.

Kentucky Small Business Tax Credit: Encourages small business growth and job creation by providing nonrefundable tax credits to eligible businesses increasing employment and investing at least $5,000 in qualifying equipment and technology.

BIG DEALS Ford and SK On announced in September 2021 the BlueOval SK Battery Park. The $5.8 billion investment will create 5,000 full-time jobs in Glendale.

Toyota Motor Manufacturing Kentucky announced in October 2021 a $461 million investment and 1,400 new jobs for future vehicle electrification.

Pratt Paper announced in December 2021 a $500 million paper mill and box factory with 321 new jobs in Henderson.

Japan-based Envision AESC announced in April 2022 a $2 billion gigafactory in Bowling Green that will create 2,000 jobs.

Ford Motor announced in September 2022 a $700 million investment and 500 new jobs at the Louisville Kentucky Truck Plant.

BIG COMPANIES Humana (Fortune 500 headquarters) Yum! Brands (Fortune 500 headquarters) Tempur Sealy International Texas Roadhouse Brown-Forman Valvoline

C-SUITE TESTIMONIALS EDCs Team Kentucky Cabinet for Economic Development ced.ky.gov Frankfort Area Chamber of Commerce frankfortky.info/business-resources/start-a-business Commerce Lexington locateinlexington.com Greater Louisville Inc. greaterlouisville.com/economic-development Louisville Forward louisvilleky.gov/government/louisville-forward

“I believe in regional manufacturing. It is the heart and soul of America, and there is no better place than Kentucky.” —Anthony Pratt, Executive Chairman, Pratt Industries “Kentucky’s pro-business climate was instrumental in our decision to invest in Hardin County, and we are grateful for the support we received from Gov. Beshear, Team Kentucky and Elizabethtown-Hardin County to make [this] announcement a reality.” —Michael Lafave, SVP and COO, Kruger Packaging “We are excited about this new investment in Kentucky, which will help Novelis achieve its sustainability goals as well as support the carbon-reduction targets of our automotive customers. The Commonwealth of Kentucky has been a great business partner for many years and has a strong, highly skilled workforce to meet the growing need for high-strength, low-carbon aluminum.”

—Tom Boney, EVP and President, Novelis North America

A CEO’S GUIDE TO SITE SELEC TION

Louisiana “Again and again, we’ve heard about the high value that major global investors place on our state’s commitment to climate action and all-of-theabove approach to energy. By combining that long-range vision with abundant natural resources, logistical advantages and a skilled workforce, Louisiana can lead America’s clean-energy economy for generations to come.”

—Gov. John Bel Edwards

TAXES 7.5% top corporate income tax rate #39 on the Tax Foundation’s State Business Tax Climate Index ranking

BETTING ON CHEM IN THE BAYOU STATE

BIG DEALS

While the Bayou State has always attracted tourists, it’s now attracting a growing number of companies in several sectors. With six interstate highways, six Class One railroads and major ports with access to the Mississippi River and Gulf of Mexico, there’s a solid infrastructure.

Oil and chemicals remain vital to the state’s economy, but there are new developments in tech and other sectors. Economic data show regional employment in the manufacturing industry for the state is expected to be higher than the national average. A Louisiana State University economist also predicts nearly all the state’s metro areas will add jobs over the next two years, thanks to growth in industrial construction, healthcare and Amazon distribution centers.

Great Southern Wood Preserving announced a $22.5 million expansion and 58 new jobs at its Avoyelles Parish treatment facility.

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.

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

EDUCATION 86.7% of adults 25 years of age and older graduated high school

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.

26.4% of adults 25 years of age and older have a bachelor’s degree or higher

EDCs Louisiana Economic Development opportunitylouisiana.gov

UNEMPLOYMENT RATE 3.3%

Baton Rouge Area Chamber brac.org

RIGHT TO WORK STATE Yes

Greater New Orleans Inc. Regional Economic Development gnoinc.org

QUALITY OF LIFE #50

Greater Shreveport Chamber shreveportchamber.org

POPULATION GROWTH 2.7% increase between 2010 and 2020

HIGHLIGHTED PROGRAM OR INITIATIVE The Restoration Tax Abatement (RTA) program offers up to a 10-year abatement of property taxes on renovations and improvements of existing commercial structures and owner-occupied residences located within economic development districts, downtown development districts, historic districts and opportunity zones. It comes with a five-year contract with an option for a five-year renewal with approval from a local governing authority, the Board of Commerce and Industry and the governor

Supreme Rice announced a $16.2 million expansion and 20 new jobs in Crowley and Mermentau.

Global technology company Schlumberger announced a $11.5 million investment and 44 new jobs at its operations hub in Lafayette.

Focus Foods announced in April 2022 a $1.7 million expansion and 100 new jobs in Baton Rouge.

Canadian forestry products company Teal Jones Group announced in July 2022 a $110 million lumber production facility and 500 new jobs in northwestern Louisiana.

Deere & Company announced in October 2022 a $29.8 million expansion and 70 new jobs at its Thibodeaux facility.

BIG COMPANIES Lumen Technologies (Fortune 500 headquarters) Entergy (Fortune 500 headquarters) PoolCorp LHC Group Amedisys

C-SUITE TESTIMONIALS “We are excited to announce our expansion in Lafayette, where we will be able to better support our Gulf of Mexico customers with a central location optimizing logistics and supply chain and a highly skilled workforce providing more efficient servicing and maintenance of our equipment.” —Lyndal Cissell, North America Offshore Managing Director, Schlumberger “Louisiana’s support of manufacturing businesses like ours makes it a desirable place to invest. The local leadership in Livingston Parish has given more than 60 years of continuous support to the site. The chemical manufacturing industry relies on Louisiana just as Bercen relies on the skilled workforce and local collegiate talent from the region.” —Jim Elliott, Vice President and General Manager, Vertellus “Our choice of Louisiana for our first all-new manufacturing project in the U.S. is due to the availability of strategic raw materials such as limestone and natural gas, access to waterways and skilled labor and the long history of using specialty cement products in the U.S.” —Yuri Bouwhuis, President and CEO, Calucem

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A CEO’S GUIDE TO SITE SELEC TION

Maine “Maine has experienced a strong economic recovery from the pandemic, and because of deliberate choices made by my administration to safeguard our resources, our state is also prepared to withstand future economic challenges…. I am proud that our savings are at a record high and that we have closed the long-standing structural gap in our state budget, finally ensuring we will be able to meet our obligations to Maine people.”

—Gov. Janet Mills

PROGRESS IN THE PINE TREE STATE

BIG DEALS

Gov. Janet Mills has been busy making oversize investments and initiatives to support the local economy.

Along with workforce development plans, there’s a new initiative to bring mobile computer science labs to all schools, and a forgivable loan of up to $2 million for small businesses still recovering from the pandemic. International trade now supports more than one in five jobs, and the state’s exports continue to grow after reaching a record of more than $1.3 billion to 177 markets in 2021.

The U.S. Navy announced in August 2021 a $1.7 billion contract to expand the Portsmouth shipyard.

KEY INCENTIVES Technology Tax Credit: Offers tax credits and exemptions for everything from electricity costs to equipment purchases and other R&D expenses for companies involved in manufacturing and certain research-driven activities.

Major Business Headquarters Expansion Program: Offers a tax credit of 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.

TAXES 8.93% top corporate income tax rate

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.

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

Maine Technology Institute (MTI): A nonprofit that offers funding for private companies and research labs to promote R&D and assist innovative companies to in getting products to market faster.

EDUCATION 94.5% of adults 25 years of age and older graduated high school 36% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 3.6% RIGHT TO WORK STATE No QUALITY OF LIFE #27 POPULATION GROWTH 2.6% increase between 2010 and 2020

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EDCs Department of Economic and Community Development maine.gov/decd/home City of Augusta Economic Development augustamaine.gov Bangor Region Chamber of Commerce bangorregion.com

HIGHLIGHTED PROGRAM OR INITIATIVE The Thrive Maine initiative will offer a forgivable loan of up to $2 million for small businesses that experienced losses, increased costs or market interruption as a result of the pandemic. The program is funded for $58 million, and awardees that follow program terms may have their loans fully forgiven over a four-year period.

UMaine announced in October 2021 plans to expand its Advanced Structures and Composites Center in Orono.

Precision Optics acquired Windham-based Lighthouse Imaging LLC in October 2021 for $8 million.

GO Lab broke ground in January 2022 on a new manufacturing facility in Madison.

Flood Brothers Farm in Clinton opened the state’s first renewable natural gas dairy digester, which creates clean renewable gas from dairy manure, in July 2022.

LP Building Solutions announced in November 2022 it will invest $400 million to expand its LP Houlton facility and create another 100 jobs.

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

C-SUITE TESTIMONIALS “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 Seafood "TD Bank is pleased to support the university system in Maine with this bond financing to help fuel their investments in student success and workforce development across the state.” —Christopher Turley, Team Lead of Not-for-Profit, Education and Government Finance, Northern New England, TD Bank "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, VP of Packaging and Specialties Business, Sappi North America

A CEO’S GUIDE TO SITE SELEC TION

Maryland “I’ve lived the challenges that so many Marylanders are facing. My administration is committed to building pathways for work, wages and wealth for all. We will leave no one behind.”

—Gov. Wes Moore

NEW TECH IN THE OLD LINE STATE

BIG DEALS

Tech is thriving in Maryland. Between May 2021 and April 2022, the state’s tech workforce grew 8.42%, the highest rate of any state in the nation, according to a report by the Technology Councils of North America. High-tech companies continue to announce new expansions in Maryland. In May 2022, Greenland Technologies announced a manufacturing facility in Annapolis. The Port of Baltimore also continued to grow and is now the largest e-commerce port and one of the busiest ports in the country. In October 2022, Tradepoint Atlantic and Terminal Investment Limited announced a partnership to establish a 165-acre rail terminal at Coke Point.

Hitachi Rail announced in March 2022 up to 460 new jobs at a $70 million railcar manufacturing facility in Washington County.

KEY INCENTIVES TAXES 8.25% top corporate income tax rate #46 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 91.1% of adults 25 years of age and older graduated high school 42.5% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 4.5% RIGHT TO WORK STATE No QUALITY OF LIFE #17 POPULATION GROWTH 7% increase between 2010 and 2020

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, and up to $5,000 per new job located in a revitalization area.

Small, Minority and Women-Owned Business Account, Video Lottery Terminal Fund (VLT): Offers loans from the proceeds of video lottery terminals to assist small, minority and women-owned businesses across the state.

Biotechnology Investment Incentive Tax Credit: Offers an income tax credit to investors who invest in a qualified Maryland biotechnology or technology company.

Partnership for Workforce Quality: Provides matching training grants and support services targeted to improve the competitive position of small and midsize manufacturing and technology companies.

ExportMD Program: Offers up to $5,000 in reimbursement for expenses associated with an international marketing project.

EDCs Maryland Economic Development Commission commerce.maryland.gov Economic Alliance of Greater Baltimore greaterbaltimore.org Anne Arundel Economic Development Corporation aaedc.org Montgomery County Economic Development Corporation thinkmoco.com

HIGHLIGHTED PROGRAM OR INITIATIVE: The Maryland Manufacturing 4.0 grant program, launched in August 2022, is a pilot program that provides funds to small and midsize manufacturers to modernize and stay competitive by investing in Industry 4.0 technologies, which focus on automation and digitization.

Miltenyi Biotec announced in March 2022 up to 130 new jobs in its expansion and location of its North American headquarters to Montgomery County.

Niagara Bottling announced in April 2022 a new manufacturing facility and 90 new jobs in Baltimore County.

Greenland Technologies announced in May 2022 a 50,000square-foot manufacturing facility in Baltimore County.

Elite Comfort Solutions announced in June 2022 a new manufacturing facility and 225 new jobs in Havre de Grace in Harford County.

BIG COMPANIES 3 Fortune 500 companies headquartered in the state: Lockheed Martin (Fortune 500 headquarters) Marriott International (Fortune 500 headquarters) T. Rowe Price (Fortune 500 headquarters) McCormick Sinclair Broadcast Group Under Armour Ciena Host Hotels & Resorts

C-SUITE TESTIMONIALS “We chose Baltimore for its perfect blend of technology, art and know-how. As a computer-based animation studio, we could have set up operations pretty much anywhere. It all came down to will and support.”

—Trevor Pryce, Founder and CEO, Outlook Enterprises “We are excited and confident in our decision to build out in Maryland, given our extensive selection process....

The governor’s team and local officials clearly share in our vision and enthusiasm for electrification and understand the positive implications on job creation, economic benefit and Greenland specifically. Having such committed and supportive partners is essential to our long-term success and ability to quickly ramp our new manufacturing facility in support of the strong customer demand for our industrial electric vehicles.” —Raymond Wang, CEO of Greenland Technologies “We have been enormously pleased with our Westminster distribution and fulfillment center. So when we decided to expand into a fourth facility to support our continued nationwide focus on growth and innovation, it was a natural decision to select a second Maryland location.”

—Annette Danek, EVP, Penguin Random House “We moved our headquarters from Alexandria, Virginia, to Prince George’s County, Maryland, in 2008 and never looked back. The expansion of our home is a testament to our commitment to the county and state.”

—Andrew Esce, President, Capital Electric

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Massachusetts “Massachusetts is home to the greatest people, innovation and know-how in the world, and it’s going to be the job of our next governor to harness these resources to grow our economy.”

—Gov. Maura Healey

BIG BETS ON NEW DEVELOPMENT

BIG DEALS

Despite downward economic indicators in Q1 2022, the Bay State continues to see new announcements and expansions. As of May 2022, Gov. Charlie Baker was urging the approval of a $3.5 billion economic development plan that would use American Rescue Plan Act funds and borrowing to fund economic development plans and hundreds of shovel-ready projects that would help Massachusetts cities attract new investments.

Swiss technology company Nexthink announced plans to double its U.S. presence with a new headquarters in Boston. Additionally, Israeli diagnostics firm MeMed is embarking on a $93 million expansion at its local headquarters in Boston.

Factorial Energy announced in August 2022 it will establish a $45 million manufacturing facility and create 166 jobs in Methuen.

KEY INCENTIVES TAXES 8% top corporate income tax rate #34 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 91.1% of adults 25 years of age and older graduated high school 46.6% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 3.5% RIGHT TO WORK STATE No QUALITY OF LIFE #9 POPULATION GROWTH 7.4% increase between 2010 and 2020

Massachusetts Life Science Center (MLSC): Offers 10 different tax incentives of up to $15,000 for each 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-job 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.

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

Workforce Training Fund: Offers cash grants of up to $250,000 over a two-year period to train new employees or upgrade the skills of existing employees.

EDCs MassDevelopment massdevelopment.com MassEcon massecon.com Metropolitan Area Planning Council mapc.org/get-involved/economic-development Worcester Regional Chamber of Commerce Economic Development worcesterchamber.org/economic-development

HIGHLIGHTED PROGRAM OR INITIATIVE The new HireNow program offers eligible employers a grant of up to $4,000 per employee to cover training costs or as a signing bonus. Funding is up to $400,000 per employer and on a first-come, first-served basis, for jobs that are paid at least $14.25 per hour.

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Thermo Fisher Scientific announced in August 2022 a new state-of-the-art facility and 300 jobs in Plainville.

Shanghai-based Zai Lab Limited announced in September 2022 an expansion of its Cambridge headquarters.

Waters Corp. opened in September 2022 a new manufacturing plant in Taunton and will create 25 jobs.

Ventus Therapeutics opened in September 2022 a new lab facility in Waltham as the first phase of a planned global expansion.

BIG COMPANIES 18 Fortune 500 companies headquartered in the state, including: General Electric Raytheon Technologies TJX Liberty Mutual Insurance Group Thermo Fisher Scientific Massachusetts Mutual Life Insurance Moderna BJ’s Wholesale Club Wayfair Global Partners

CEO TESTIMONIALS “The expansion of our Taunton facility will ensure Waters customers continue to benefit from the most innovative chromatography particle R&D and the highest quality production in the industry.”

—Christopher J. O'Connell, Chairman and CEO, Waters Corporation “The collaboration between Factorial, the City of Methuen and the Commonwealth of Massachusetts has been extremely helpful and productive. Our relationship is a true partnership between our company and our community. We plan to continue building solid-state EV battery research and development facilities in New England and establish the region as a hub for electric mobility technology.” —Siyu Huang, CEO, Factorial

A CEO’S GUIDE TO SITE SELEC TION

Michigan “I am proud that Republicans and Democrats worked across the aisle to build up our economic development tool kit and empowered Michigan to compete for every project and every job. Together, we will continue winning investments in this space and become the preeminent destination for electric vehicle and mobility companies. We will work with anyone and compete with everyone to keep bringing supply chains of batteries, chips and electric vehicles home to Michigan.”

—Gov. Gretchen Whitmer

TAXES 6% top corporate income tax rate #12 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 92% of adults 25 years of age and older graduated high school 31.7% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 4.1% RIGHT TO WORK STATE Yes QUALITY OF LIFE #38 POPULATION GROWTH 2% increase between 2010 and 2020

GOING ELECTRIC IN THE GREAT LAKES

BIG DEALS

Many may wonder what growth in the electric vehicle industry means for legacy states whose economic history and infrastructure are tied up in gas vehicles.

If Michigan is any indicator, factors and workers will transition to the EV industry just fine. Automakers like GM and Ford have announced several major projects in the state in recent years to support battery or electric vehicle production.

General Motors announced in January 2022 a $7 billion plant that will create 4,000 new jobs.

KEY INCENTIVES Michigan Business Development Program (MBDP): Provides performance-based grants, loans or other economic assistance to businesses for highly competitive projects that create jobs or provide investment in the state.

Jobs Ready Michigan: Offers incentives for employee recruitment expenses, customized training development plans, instructor and training materials, and on-the-job training costs.

Michigan Community Revitalization Program (MCRP): Provides gap financing in the form of performance-based grants, loans or other economic assistance for eligible investment projects.

State Essential Services Assessment (SESA) Exemption and Alternative State Essential Services Incentive Programs: Offers an exemption or reduction in SESA for projects that create jobs or private investment in the state.

Strategic Outreach and Attraction Reserve (SOAR): Enables the state to offer incentives for high-impact projects. Includes the Critical Industry Program and the Strategic Site Readiness Program.

EDCs Michigan Economic Development Corporation michiganbusiness.org Detroit Economic Growth Corporation degc.org Detroit Regional Chamber detroitchamber.com Grand Rapids Economic Development rightplace.org Lansing Economic Development Corporation lansingmi.gov/177/Lansing-Economic-Development-Corporation

HIGHLIGHTED PROGRAM OR INITIATIVE MEDC recently convened a Talent Action Team to launch the first focused effort to support the talent transition in the EV and mobility sectors. The team’s goal is to train thousands of workers in the first year by delivering professional development programs that engage workers in improving their skills and competencies in line with in-demand roles.

LG Energy Solution announced in March 2022 a $1.7 billion investment and 1,200 new jobs in Holland.

Ford announced in June 2022 a $2 billion investment and 3,200 new jobs across the state to support EV manufacturing growth.

Hemlock Semiconductor announced in September 2022 a $375 million capital investment and 170 new jobs in Thomas Township.

Battery company Gotion announced in October 2022 a $2.36 billion investment and 2,350 jobs at a battery component manufacturing facility in Big Rapids.

Our Next Energy announced in October 2022 a $1.6 billion investment and more than 2,100 new jobs at its manufacturing campus in Wayne County.

BIG COMPANIES 19 Fortune 500 companies headquartered in the state, including: Ford Motor Company General Motors Dow Penske Automotive Group Whirlpool Lear Stryker DTE Energy BorgWarner

CEO TESTIMONIALS “The decision to select Michigan for ONE’s cell factory, ONE Circle, was motivated strongly by the partnership offered by the Michigan Economic Development Corporation…. The MEDC was phenomenal in working with ONE in its earlier days to learn more about our innovations and growth targets, and the whole team put an incredible amount of time and effort into characterizing ONE’s manufacturing scale up as a project that will bring a strong return of investment for the state.”

—Mujeeb Ijaz, Founder and CEO, Our Next Energy “Ford is committed to leading the electric vehicle revolution and strengthening our portfolio of iconic vehicles that customers love. That’s why we’re announcing historic investments in our home state of Michigan, creating thousands of high-quality union jobs to expand production of the all-new F-150 Lightning as well as the next generation global Mustang and Ranger for the U.S. market.” —Kumar Galhotra, President, Ford Blue

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Minnesota

CHARTING A COURSE FOR GROWTH IN THE NORTH STAR STATE

“Minnesotans across the state are seeing more job opportunities than ever before…. We are growing jobs and expanding our economy at a record-breaking pace. As Minnesotans continue to see global uncertainty and rising costs, these numbers demonstrate that Minnesota’s economy has a strong foundation.”

—Gov. Tim Walz

Like many state economies, Minnesota’s growth started to slow in the last half of 2022. Nevertheless, it continues to attract new investments. Graco and U.S. Steel announced big investments, and cybersecurity firm NetSPI raised more than $400 million in growth funding for global expansion. State exports rose in in the second quarter of 2022 to the highest level on record, and saw a 12% growth over the second quarter of 2021. Top exports included manufacturing, agriculture and mining goods, with top markets including Canada, China and Mexico. The state strives to maintain this momentum with assistance and programs through the Minnesota Trade Office. The Center for Digital Government also ranked the state third nationwide in workforce planning and gave it an “A” in the Digital States Survey, one of only six states to receive the grade.

BIG DEALS U.S. Steel announced in June 2022 a $150 million upgrade at its Keetac mine, representing one of the largest developments in the state’s ore mining industry in the past four decades.

Heliene USA is currently completing a $21 million expansion at the solar facility in Mountain Iron, making it the country’s second-largest solar panel producer.

Graco broke ground in September 2022 on a 500,000-square-foot global distribution center in Dayton.

Cambrex announced in October 2022 a $16.5 million investment at 40 new jobs at a R&D center in Minneapolis.

Local Minneapolis cybersecurity firm NetSPI raised $410 million in October 2022 to expand globally.

BIG COMPANIES TAXES 9.8% top corporate income tax rate #45 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 94.1% of adults 25 years of age and older graduated high school 38.9% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 2.1% RIGHT TO WORK STATE No QUALITY OF LIFE #2 POPULATION GROWTH 7.6% increase between 2010 and 2020

KEY INCENTIVES Minnesota Investment Fund: Offers up to $1 million to help add new workers and retain high quality jobs, with a focus on industrial, manufacturing and technology-related industries.

Minnesota Job Creation Fund: Provides up to $1 million in financial incentives to new and expanding businesses that meet certain job creation and capital investment requirements.

Job Training Incentive Program: Offers grants of up to $200,000 to new or expanding businesses with the purpose of training workers quickly and efficiently.

Launch Minnesota: A series of grants and initiatives designed to accelerate the growth of high-technology startups and foster a statewide network of education, resources and support for innovators.

EDCs Minnesota Department of Employment and Economic Development mn.gov/deed Minneapolis St. Paul Regional Economic Development Partnership greatermsp.org Rochester Area Economic Development, Inc. raedi.com Duluth Economic Development Authority dulutheda.org

HIGHLIGHTED PROGRAM OR INITIATIVE Launch Minnesota offers innovation grant awards to some of the most promising, innovative and scalable technology businesses in the state. The grants help reduce the risk for Minnesota technology startups and entrepreneurs who are solving problems and growing the state’s innovation ecosystem.

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16 Fortune 500 companies headquartered in the state, including: UnitedHealth Group Target Best Buy CHS 3M U.S. Bancorp C.H. Robinson Worldwide General Mills Land O’Lakes Ameriprise Financial

C-SUITE TESTIMONIALS "Our new facility in Minneapolis will double our analytical and chemical development footprint in the Midwest, providing clients with easy access to state-of-the-art capabilities and top scientific experts…. We continue to invest in our U.S.-based footprint to support the demand for high-quality API development and manufacturing.” —Thomas Loewald, CEO, Cambrex “We continue to invest in our long-term growth and are excited to expand our operations to include a facility in Plymouth. Medical Alley has a rich history of technological innovation and serves as a great complement to our continued and growing presence in Silicon Valley.”

—Erica Rogers, President and CEO, Silk Road Medical “These investments demonstrate our commitment to our presence in Minnesota, which is a major manufacturing hub and now a center for our global operations…. The state is a place that really works for us.”

—Scott Park, CEO, Doosan Bobcat

A CEO’S GUIDE TO SITE SELEC TION

Mississippi

ABUNDANT GROWTH IN THE MAGNOLIA STATE

“When it comes to the aerospace industry, it’s all systems go in Mississippi.

That’s because our state offers a prime location for innovative research, well-trained workers and innovative technology development.”

—Gov. Tate Reeves

Mississippi has been steadily improving its business climate, with moderate growth in advanced manufacturing, healthcare and aerospace industries. The forest industry remains a key economic driver and in the last year contributed $17.4 billion to the state’s gross domestic product, the highest of any nonfarm industry in the state. Meanwhile, Mississippi is also striving to diversify into new sectors. Now in its second year, the Mississippi Cyber Initiative is striving to broaden the state’s capabilities in the cybersecurity industry by leveraging collective expertise in academia, the military and private sector.

KEY INCENTIVES TAXES 5% top corporate income tax rate

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.

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

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

EDUCATION 86.5% of adults 25 years of age and older graduated high school 24.8% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 3.6% RIGHT TO WORK STATE Yes QUALITY OF LIFE #49 POPULATION GROWTH 0.2% decrease between 2010 and 2020

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.

EDCs Mississippi Development Authority mississippi.org Mississippi Economic Council msmec.com Greater Jackson Alliance/JXN Metro 360 jxnmetro360.org Hattiesburg Area Development Partnership theadp.com

HIGHLIGHTED PROGRAM OR INITIATIVE The Mississippi Flexible Tax Incentive (MFLEX), was passed by the Mississippi legislature in 2022. It’s a streamlined universal tax credit that may be used to offset a company’s Mississippi state tax liabilities.

Eligible industries include manufacturers, data centers, warehouse and/or distribution businesses, regional or national headquarters and research and development facilities.

BIG DEALS Albany Industries announced in April 2022 it will relocate manufacturing operations to Calhoun City and create 85 jobs.

Milwaukee Tool held a groundbreaking ceremony in May 2022 for a facility in Grenada that is expected to create over 800 jobs.

Columbia Industries announced in July 2022 it would relocate its headquarters from Oregon to Starkville and create 62 jobs.

Hol-Mac Corporation announced in August 2022 it would expand operations in Bay Springs and create 31 jobs.

ArbaBlox announced in September 2022 a $51 million manufacturing plant and 41 new jobs in Winona.

Jordan Carriers announced in October 2022 an $11 million expansion and 30 new jobs.

Relativity Space announced in October 2022 a $267 million expansion and 600 new jobs over the next five years.

BIG COMPANIES Sanderson Farms (Fortune 1000 headquarters) Toyota Unified Brands Williams-Sonoma Amazon KOHLER Engines VT Halter Marine Synnex

C-SUITE TESTIMONIALS “Throughout the years, I’ve done business in a lot of states and had a lot of opportunities to do different things in different areas. But every time I’m gone, Adams County is a place I always want to get back to. We plan, in the future, to always keep it here.” —Charles Jordan, President, Jordan Carriers “As a company with a long history and a strong family culture, we believe the community we work in should have the same characteristics. Starkville and the surrounding counties have just that: cultural DNA that supports our mission and vision. We are extremely excited to close this deal and begin the journey with Oktibbeha County and Mississippi.” —Tom Moss, President, Columbia Industries “We appreciate the support of the EDA [Economic Development Administration] of Jones County, the MDA [Mississippi Development Authority] and the state of Mississippi as we commit to new jobs through the manufacturing of quality wood products here in Laurel.”

—Jim Rasberry, Chairman, Scotsman Manufacturing Company

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Missouri “Covid-19 had an overwhelming impact on businesses and communities across the state, but our economy continues to come back strong. We have made great progress in a short amount of time, and we must remain vigilant in our efforts and ensure our small businesses have the support they need to recover and succeed.”

—Gov. Mike Parson

TAXES 4% top corporate income tax rate #11 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 91.6% of students graduated high school in 2019 31.7% of adults age 25 and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 2.6% RIGHT TO WORK STATE No QUALITY OF LIFE #28 POPULATION GROWTH 2.8% increase between 2010 and 2020

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SHOW-ME SUCCESS

BIG DEALS

The Geo-Resolution 2021 conference helped the ShowMe State double down on its thriving geospatial analysis and cybersecurity sectors. The National Geospatial-Intelligence Agency, which broke ground on its new western regional headquarters in St. Louis in 2016, is scheduled to open in 2025. Several prominent geospatial companies have opened new offices and facilities in the region. In other industries, Diode Dynamics, TierPoint and La-Z-Boy announced projects here in 2021.

Anheuser-Busch announced in April 2021 it will invest $100 million in a grain repurposing facility at its St. Louis campus and create 50 jobs.

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

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.

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

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.

EDCs Missouri One Start missourionestart.com Missouri Partnership missouripartnership.com Missouri Department of Economic Development ded.mo.gov Springfield Regional Economic Partnership springfieldregion.com Economic Development Corporation of Kansas City edckc.com St. Louis Economic Development Partnership stlpartnership.com

HIGHLIGHTED PROGRAM OR INITIATIVE The National Security Crossroads is a multi-state initiative with Kansas that aims to raise awareness of and facilitate collaboration and efficiencies within national security missions to the Heartland region. The crossroads area is home to seven major military bases and 11 national security installations. The program will facilitate workforce, talent growth and collaboration between installations to educate legislators and others in the region on the value of the industry.

Deli Star Corporation announced in July 2021 plans to locate its new headquarters in St. Louis. The $99 million capital investment will bring 475 jobs to the region.

Diode Dynamics announced in August 2021 the construction of a new headquarters in St. Charles.

Pet supply company Chewy cut the ribbon on a new ecommerce fulfillment center in Belton in August 2021 that will eventually create 1,200 jobs.

La-Z-Boy announced in July 2021 it will invest an additional $30 million in its manufacturing facility in Neosho.

MSI announced in September 2021 plans to launch a new showroom and distribution facility in St. Louis.

TierPoint announced in September 2021 a $20 million expansion in the St. Louis region.

BIG COMPANIES 10 Fortune 500 companies headquartered in the state, including: Centene Corporation Emerson Electric Reinsurance Group of America O’Reilly Automotive Edward Jones Investments Graybar Electric Olin Ameren Post Holdings Peabody Energy

C-SUITE TESTIMONIALS “We are thrilled to open our first fulfillment center in Missouri and incredibly thankful for the partnership we received from the State of Missouri, City of Belton, Missouri Partnership and Northpoint Development.”

—Pete Krillies, Vice President of Real Estate, Facilities and Procurement, Chewy “Our decision to build this new facility was driven by strong and growing demand for world-class data center space in St. Louis and throughout the Midwest.” —Jerry Kent, Chair and CEO, TierPoint “After conducting a thorough search across multiple states, we are thrilled to call Missouri Deli Star’s new home. The Missouri team, including Missouri Partnership, played a pivotal role in the selection process by understanding our needs and working to support our business expansion, and ultimately the State of Missouri.” —Justin Siegel, CEO, Deli Star

A CEO’S GUIDE TO SITE SELEC TION

Montana “Montana is in the midst of a historic economic recovery.

We’ve recovered all jobs lost since the start of the pandemic, and more Montanans are working now than in our state’s history…. As we lead the Montana comeback, we’ll continue making Montana more competitive with lower taxes and less red tape, so folks throughout our state can prosper and have access to greater opportunities.”

—Gov. Greg Gianforte

TAXES 6.75% corporate income tax rate #5 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 94.4% of students graduated high school in 2019 34.8% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 3% RIGHT TO WORK STATE No QUALITY OF LIFE #33

BIG SKY HAS NO LIMITS FOR TECH

BIG DEALS

According to a recent survey by the University of Montana Bureau of Business and Economic Research, Montana’s high-tech companies overcame and even benefited from the dynamics of a pandemic recovery in 2020. This helped the state generate more than $2.9 billion in revenues with growth rates up to seven times faster than the overall state economy. Montana’s hightech industry now employs more than 15,772 workers with an average salary of $73,1000, according to the Montana High Tech Business Alliance.

Software company GL Solutions announced in March 2021 that it would relocate its headquarters from Bend, Oregon, to Kalispell and create 40 jobs.

KEY INCENTIVES

BIG COMPANIES

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.

Primary Sector Workforce Training Grant: Offers up to $5,000 for training expenses per eligible job created.

Big Sky Economic Development 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 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.org

Guitar manufacturer Gibson announced in March 2021, an expansion of its facility in Bozeman.

CACI International acquired Montana-based Ascent Vision Technologies in August 2020.

Credova Financial announced in October 2021 the relocation of its headquarters from Nevada to Bozeman.

Ascent Vision Technologies commonFont Energy 1 Foundant Technologies Golden Helix Lumenad Stone Glacier XY Planning Network

C-SUITE TESTIMONIALS “What really sold us, though, was the friendly, welcoming and hopeful people.... When I asked why people wanted economic growth, a local business leader said, ‘I want my children to have a better future in their hometown.’ Businesspeople encourage one another. Their commitment to community building was apparent.”

—Bill Moseley, CEO, GL Solutions “We have 12 offices in some of Montana’s smallest and largest cities­—and we consistently find strong talent, many educated right here in one of Montana’s public and private institutions. They want to stay in Montana for the strong quality of life and expanding opportunities.” —Kyle Lingscheit, CEO, PayneWest Insurance

HIGHLIGHTED PROGRAM OR INITIATIVE The Montana Department of Commerce announced in October 2021 an additional $10 million to the Workforce Training Grant Program to help close the skills gap, create more good-paying jobs and expand opportunities in the state. Eligible businesses can receive up to $3,000 per employee, with a maximum allocation of $210,000.

POPULATION GROWTH 9.6% increase between 2010 and 2020

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A CEO’S GUIDE TO SITE SELEC TION

Nebraska “I will work to grow our economy and give every child the chance to pursue their dreams right here in Nebraska. We have to fix our broken property tax system and cut taxes.

We need to modernize our tax structure, expand broadband access and improve infrastructure across our state.”

—Gov. Jim Pillen

TAXES 7.5% top corporate income tax rate #29 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 92.2% of adults 25 years of age and older graduated high school 34.4% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 2.4% RIGHT TO WORK STATE Yes QUALITY OF LIFE #6 POPULATION GROWTH 7.4% increase between 2010 and 2020

48 2023 CEO GUIDE TO SITE SELECTION

NEW MOMENTUM IN AG AND STARTUPS

BIG DEALS

In recent years, the Cornhusker State’s agriculture industry set all-time highs for beef exports and corn and soybean production, while manufacturing employment neared an all-time high. The growth has pushed state revenues more than $1.4 billion above forecast.

Nebraska also continues to attract a growing number of venture capitalists and startup companies. 2021 was a record year for Nebraska startups that closed on more than $300 million in funding for 40 deals, making more than $1 billion in venture capital in the state raised in the past decade, according to Invest Nebraska. That startup momentum continued into 2022.

Facebook announced in March 2021 it will open a $1.5 billion data center in Sarpy County, which will be one of the biggest in the world.

KEY INCENTIVES Nebraska Advantage Act: Offers credits against sales tax, income tax and employee withholding obligations.

Companies may be eligible for a refund of sales tax on a project’s capital purchases and real and personal property tax benefits and exemptions.

Customized Job Training Program: Provides employee training assistance to businesses that expand and diversify the state’s economic base.

Intern Nebraska Grant Program (InternNE): Provides financial assistance to businesses that create new internships. InternNE can reimburse up to 50% of an intern’s wages, up to $5,000 per internship and up to 75% of wages or $7,500 per internship for those receiving a Pell Grant.

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

HIGHLIGHTED PROGRAM OR INITIATIVE NMotion announced in June 2022 more than $3.7 million in new investments to start and grow 24 Nebraska startups over the next two years, expand the accelerator’s programming and create an Omaha location at Millwork Commons. NMotion will offer investment, support, mentorship and access to in-state and out-ofstate capital to staff small businesses and startups. Companies and startups that land a spot in the accelerator will receive $100,000 investment from NMotion through gener8tor’s venture fund and Invest Nebraska.

Garment and shoe recycling company ReCircled announced in April 2021 a new facility in Sidney.

Kawasaki announced in July 2021 a $200 million expansion and 550 new jobs in Lincoln.

Carbon black manufacturing company Monolith announced in September 2021 plans to create 200 more jobs in Lincoln.

Pet food manufacturer Instinct announced in October 2021 a $180 million expansion and consolidation of its operations in Lincoln.

Sustainable Beef broke ground in October 2022 on a meatpacking plant in North Platte. The project is expected to create more than 875 jobs.

The University of Nebraska-Lincoln started construction in November 2022 on the Feedlot Innovation Center at the Eastern Nebraska Research, Extension and Education Center near Mead.

Greater Omaha Packing announced in November 2022 it will expand by nearly 30% and add 275 jobs.

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

C-SUITE TESTIMONIALS “This is the culmination of the past years, working to build the process that is necessary to help brands and retailers create a circular business model and close the loop.... With ReCircled upcycling and recycling activities and the commitment from our brand partners, we are confident this is a long-term proposition for industry and the town of Sidney.” —Scott Kuhlman, CEO, ReCircled

A CEO’S GUIDE TO SITE SELEC TION

Nevada “In Nevada, we are pretty much confined in the entertainment and mining space... and we have to expand on that by increasing education availability and workforce development and by getting into more of a manufacturing space versus a logistics space.”

—Gov. Joe Lombardo

SHINING IN THE SILVER STATE

BIG DEALS

Nevada is growing big time, both in its population and economy. The Las Vegas-Henderson-Paradise metro area is projected to be one of the fastest-growing metro areas in the U.S. between now and 2060. To accommodate more than a million additional people living and driving in the area, officials are planning big infrastructure upgrades under the Access 2050 Regional Transportation Plan. Lyft and Motional are working toward launching a fully driverless robotaxi services, while the Boring Company works on an underground public transportation system with more than 55 planned stops. In the past several years alone, the region has attracted nearly 60 new companies, 30 headquarters and 5,600 jobs.

Autonomous electric vehicle company Nuro announced in August 2021 that it will construct a factory in the state and convert 76 acres of the Las Vegas Motor Speedway into a robot-card R&D center.

KEY INCENTIVES TAXES No corporate income tax #7 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 87.2% of adults 25 years of age and older graduated high school 27.6% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 4.6% RIGHT TO WORK STATE Yes QUALITY OF LIFE #37 POPULATION GROWTH 15.0% increase between 2010 and 2020

No corporate income tax, personal income tax, franchise tax, inventory tax, inheritance tax or estate tax.

Nevada Standard Abatement Package: Offers a reduction of sales and use tax to 2% for two years, reduction of modified business tax to 50% for four years and reduction of personal property tax to 50% for 10 years.

Nevada Aviation Abatement: Offers a personal property tax abatement of up to 50% for 10 years for taxes due on tangible personal property.

Nevada Data Center Abatement: Offers partial abatements from personal property, sales and use taxes to companies that locate or expand in the state.

EDCs Nevada Governor’s Office of Economic Development goed.nv.gov Economic Development Authority of Western Nevada edawn.org Las Vegas Economic Development lasvegasnevada.gov/Business/Economic-Development Las Vegas Global Economic Alliance lvgea.org

HIGHLIGHTED PROGRAM OR INITIATIVE In March 2022, the state announced the first-ever nationally ranked small business and startup accelerators will operate in Las Vegas and Reno-Tahoe.

Alongside Nevada’s State Small Business Credit Initiative (SSBCI) program, gener8tor Las Vegas and gener8tor Reno-Tahoe will invest in and accelerate at least 10 small businesses and startups per year.

Ball Corporation announced in September 2021 a $176 million investment and 178 jobs at a facility in Clark County.

CAE SimuFlite announced a $55 million facility in Clark County that will create 78 jobs in the first two years.

Nanotech Energy announced in November 2021 it will build a 517-acre manufacturing campus and create more than 1,000 jobs in the next five years in the Greater Reno area.

Haas Automation announced in March 2022 a $100 million relocation of operations to Clark County that will create 500 jobs.

Crocs announced in June 2022 an $85 million distribution center and 325 new jobs in Clark County.

VSE announced in June 2022 an electronics research, design and assembly facility with 70 jobs in Washoe County.

BIG COMPANIES Caesars Entertainment (Fortune 500 headquarters) MGM Resorts International (Fortune 500 headquarters) Las Vegas Sands Amerco Tri Pointe Homes Wynn Resorts Southwest Gas Boyd Gaming Light & Wonder Fidelity Investments BAE Systems GE Aviation

C-SUITE TESTIMONIALS “We look forward to playing a key supportive role in Nevada’s aerospace and defense industry for many years to come. The State of Nevada and City of Las Vegas have been incredibly welcoming to CAE. We are excited to be a part of this vibrant community, and we look forward to contributing to its impressive economic development.”

—Nick Leontidis, Group President, Civil Aviation Training Solutions, CAE “Our new North Las Vegas plant is Ball’s latest investment to serve accelerating demand for our portfolio of infinitely recyclable aluminum containers.”

—Kathleen Pitre, President, Ball Beverage Packaging North and Central America

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A CEO’S GUIDE TO SITE SELEC TION

New Hampshire “Employers like Novocure help ensure New Hampshire remains the best state in which to live, work and raise a family…. Thanks to our pro-jobs agenda, New Hampshire is the No. 1 state for business in New England, and I would like to congratulate the whole Novocure team on the groundbreaking for their latest expansion!”

—Gov. Chris Sununu

TAXES 7.6% top corporate income tax rate #6 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 94.4% of adults 25 years of age and older graduated high school 40.2% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 2.4% RIGHT TO WORK STATE No QUALITY OF LIFE #4 POPULATION GROWTH 4.6% increase between 2010 and 2020

50 2023 CEO GUIDE TO SITE SELECTION

BIG GROWTH, LOW STRESS

BIG DEALS

The Granite State was recently ranked as one of the least-stressed states in the nation, according to a WalletHub survey. While the slow pace of life may not attract earth-shattering projects and investments, CEOs are still taking notice of the favorable business climate. New Hampshire exports reached a record high in 2021 of $6.4 billion, a 16.7% increase from 2020. Two top exports driving the growth include electrical and industrial machinery. Novocure, Rogue Space Systems and Fidelity Investments have announced projects here in the past year.

Space startup Rogue Space Systems is designing robots to perform tasks in orbit to support satellites and sort out space litter. It contracted with launch provider Exolaunch for two launches on SpaceX rockets.

KEY INCENTIVES No use tax, sales tax, inventory tax, capital gains tax, broad-based income tax or professional service tax.

Economic Revitalization Zone Tax Credit: Offers a credit of up to $40,000 per year for six years for projects that locate in an unused or underutilized industrial park, vacant land, or previously unused structures.

R&D Tax Credit: Offers a credit of up to $50,000 in any one year for research and development costs.

NH CDFA Tax Credit: Awards up to $5 million per year to nonprofit organizations who can then sell credits to businesses as a way to raise capital for community programs.

EDCs New Hampshire Division of Economic Development nheconomy.com/start Concord Economic Development concordnh.gov/1040/Economic-Development Your Manchester NH yourmanchesternh.com Manchester Development Corporation manchesterdevelopmentcorp.com

Novocure broke ground in April 2022 on a flagship facility in Portsmouth for a training and development center for its cancer therapy.

Fidelity Investments, one of the largest employers in the state, announced in April 2022 it will add 1,200 jobs to its Merrimack campus.

Marmon Aerospace and Defense started construction in July 2022 on a $30 million manufacturing facility in Hooksett.

BIG COMPANIES Sprague Resources (Fortune 1000 headquarters) PC Connection (Fortune 1000 headquarters) Fidelity Investments BAE Systems GE Aviaion

C-SUITE TESTIMONIALS “Since establishing our U.S. operations in Portsmouth more than 15 years ago, the Seacoast has become an important part of our company’s history.... and we look forward to completing the construction of our new flagship facility so we may continue to bring highquality jobs to the community.” —Bill Doyle, Executive Chairman, Novocure “This new facility will broaden Marmon’s military shipboard cable product offerings, which already include power, data, instrumentation, control and communications cables…. We are pleased to make this investment in service to our customers, our team, and our community.” —Robert Canny, Marmon Aerospace & Defense

A CEO’S GUIDE TO SITE SELEC TION

New Jersey “A big piece of building a stronger and fairer New Jersey is fueling a strong 21st-century economy that works for everyone.” —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 adults 25 years of age and older graduated high school 43.1% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 3.5% RIGHT TO WORK STATE No QUALITY OF LIFE #19 POPULATION GROWTH 5.7% increase between 2010 and 2020

OPPORTUNITIES IN THE GARDEN STATE

BIG DEALS

While New Jersey has often been noted for its biosciences and pharmaceutical industries, there’s a lot more happening beneath the surface. Newark is quickly moving beyond its industrial roots, quickly growing into a hub for high-tech startups with companies like PeduL and 1Huddle. The Garden State has also been doubling down on wind energy, expanding the state’s offshore wind goal by nearly 50% to 11,000 megawatts by 2040.

Meanwhile, the Port of New Jersey is benefitting from a surge in traffic as shippers move cargo to the East Coast due to fears of labor strikes and lockouts in California.

The New Jersey Wind Port will support up to $500 million in new economic activity in the state annually and will be the nation’s first purpose-built offshore wind-marshalling port.

KEY INCENTIVES

Merck announced in June 2022 the launch of the Merck Digital Sciences Studio in Newark to support early-stage biomedical startups.

HAX, the hard-tech accelerator run by VC firm SOSV, announced in August 2022 it would locate in Newark.

The National Aerospace Research and Technology Park in Egg Harbor Township announced in September 2022 it is developing a technology that could create more than 25,000 jobs in the state in the next 15 years.

Business Retention and Relocation Assistance Act: Offers a tax credit equal to $2,500 for each new full-time position at the business’s location in the first year and $1,250 for year two.

Global engineering firm EAD Engineering announced in September 2022 it will open an office in Parsippany.

Grow New Jersey Assistance Tax Credit: Available to businesses creating or retaining jobs in New Jersey and making a qualified capital investment at a qualified business facility in a qualified incentive area.

Healthcare company Eisai US cut the ribbon in August 2022 on a new facility in Nutley that will bring 800 new jobs to the area.

Manufacturing Equipment and Employment Investment Tax Credit: Offers a tax credit of 4% of the investment credit basis to a maximum of $1 million for companies with 50 or fewer employees and a net income of less than $5 million.

Business Employment Incentive Program: Offers grant funding for businesses that create at least 25 eligible positions in base years.

EDCs Chose New Jersey choosenj.com New Jersey Economic Development Authority njeda.com Trenton Housing and Economic Development Department trentonnj.org/204/Housing-Economic-Development Greater Trenton greatertrenton.org Newark Alliance newark-alliance.org/economy

HIGHLIGHTED PROGRAM OR INITIATIVE Starting a biotech company often entails years of losses before turning a profit. Now going into its 24th year, New Jersey’s Net Operating Loss Program lets companies sell their net operating losses and unused R&D tax credits for cash. Twenty-four companies were approved for more than $75 million in 2022, with the average award totaling $3.1 million. Directors say the program enables growing companies to obtain cash without sacrificing equity.

Biopharm company Gilead Sciences Inc. announced an expansion in Parsippany that will add 100 new jobs.

L’Oréal announced in September 2022 it will consolidate its sciences facility at a new $140 million research and innovation center in Clark.

Biotech company BeiGene broke ground on its flagship U.S. manufacturing and clinical R&D center in Hopewell.

BIG COMPANIES 16 Fortune 500 companies headquartered in the state, including: Johnson & Johnson Prudential Financial Merck PBF Energy Becton, Dickinson & Company Cognizant Technology Solutions Automatic Data Processing Quest Diagnostics Public Service Enterprise Group Burlington

C-SUITE TESTIMONIALS “New Jersey has served as our scientific hub here in the U.S. for over six decades, and we are excited to expand our footprint in the state and bring all our scientific teams together in a beautiful and modern new research facility.” —David Greenberg, CEO and President, of L’Oréal USA “The Princeton-Hopewell area is an excellent location for BeiGene and the thriving life science community with a deep talent pool as we continue to advance our pipeline of innovative cancer medicines and work to diversify our global supply chain.” —John Oyler, Cofounder, Chairman and CEO, BeiGene

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A CEO’S GUIDE TO SITE SELEC TION

New Mexico “As the global supply chain evolves, domestic and international companies alike are investing in and growing their footprint in New Mexico. By investing in key infrastructure in the Borderplex, we are creating new jobs and generating additional revenue for the region and the state.”

—Gov. Michelle Lujan Grisham

TAXES 5.9% top corporate income tax rate #22 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 87.5% of adults 25 years of age and older graduated high school 30.1% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 4.3% RIGHT TO WORK STATE No QUALITY OF LIFE #48 POPULATION GROWTH 2.8% increase between 2010 and 2020

52 2023 CEO GUIDE TO SITE SELECTION

DIRECTING A STRONG FUTURE

BIG DEALS

The Land of Enchantment is still thriving as a film and TV production hub, continually building on the growing presence of Netflix in the state. Meanwhile, New Mexico is also enhancing its logistics capabilities and proximity to Mexico. In March, the state announced another $60 million investment in its Borderplex to further support economic development and global trade in the area. A 2021 economic impact report from the BIA, the NMSU Center for Border Economic Development and the Arrowhead Center found that in 2020 alone, the employment and infrastructure investments at the Santa Teresa Port of Entry and Industrial Park supported more than 5,000 jobs and made an economic impact of $959 million for the state.

Facebook announced in October 2021 it will add two more buildings to its data center in Los Lunas and expand its investment by $800 million. The company expects to employ 400 workers when the facility is operational.

KEY INCENTIVES Job Training Incentive Program (JTIP): Offers employers reimbursements of 50% to 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.

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.

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.

EDCs New Mexico Economic Development Department edd.newmexico.gov NM Partnership nmpartnership.com Albuquerque Economic Development abq.org Santa Fe Office of Economic Development santafenm.gov/economic_development

HIGHLIGHTED PROGRAM OR INITIATIVE To double down and further capitalize on its growing film industry, the state recently allocated $40 million to establish the Next Generation Media Academy in Albuquerque. The academy will be located in Bernalillo County and will feature state-of-the-art sound stages, equipment technology and other materials for training.

Once constructed, it aims to attract 1,000 students per year and will offer paid internships with partners like Netflix and NBCUniversal.

Universal Hydrogen announced in March 2022 it will build a manufacturing and distribution center and create hundreds of jobs in Albuquerque.

Curia announced in March 2022 it an expansion in Albuquerque that will add more than 274 jobs.

Manna Capital Partners and Ball Corporation made a deal in May 2022 to construct a $2 billion aluminum mill in Valencia County.

Electronic Caregiver announced in May 2022 a major expansion and more than 700 new jobs in Las Cruces.

Engineering company BlueHalo was awarded a $1.4 billion government contract in July 2022. The deal is expected to create 60 jobs.

California-based company 828 Productions announced in August 2022 plans to invest $75 million to establish a headquarters in Las Cruces.

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

C-SUITE TESTIMONIALS “New Mexico has given us the opportunity to respond with what we expect to be the newest state-of-the-art aluminum rolling mill in North America.”

—Junior Bridgeman, Managing Partner, Manna Capital Partners “We were looking for a home for 828 Studios and fell in love with Las Cruces…. This is a town on the rise, with a wealth of opportunity just waiting to be tapped into.

At 828, we’re passionate about story and film as an art form, but we’re equally passionate about creating a studio environment that inspires positivity behind the scenes as well…. For us, it’s about putting down roots, and New Mexico, specifically Las Cruces, gives us the ideal place to do that.” —Todd Lundbohm, Founder and CEO, 828 Productions “Our Albuquerque facility plays a vital role in our network of facilities, with leading-edge equipment and a committed team of professionals.” —John Ratliff, Chairman and CEO, Curia

A CEO’S GUIDE TO SITE SELEC TION

New York "Micron’s $100 billion investment in New York marks the start of something transformative in scale and possibility for our state’s economic future.... Together, we are leveraging this investment— the largest private-sector investment in state history—to secure our economic future, solidify New York’s standing as a global manufacturing hub, and usher the state into another Industrial Revolution.” —Gov. Kathy Hochul

TAXES 7.25% top corporate income tax rate #49 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 88% of adults 25 years of age and older graduated high school

SEMICONDUCTOR HUB OF THE FUTURE

BIG DEALS

While New York is already home to 76 semiconductor manufacturing companies that employ over 34,000 New Yorkers, things are about to get even bigger. Micron announced in October it will invest $100 billion in the state over the next 20 years to develop a semiconductor manufacturing hub. The first phase offers $20 billion by the end of the decade and aims to create 50,000 jobs. New York is already home to major operations of global leaders like Wolfspeed, GlobalFoundries, IBM and Onsemi. The Albany Nanotech Complex is driving cutting-edge chip development in the state through a public-private partnership.

Micron announced in October 2022 it will invest up to $100 billion over the next 20 years to transform central New York into a leading global semiconductor manufacturing hub.

KEY INCENTIVES

Corning announced in July 2022 an expansion and 270 new jobs in in Fairport and Gates to address growing demand in the semiconductor market.

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 the productivity of their employees.

EDCs

39.9% of adults 25 years of age and older have a bachelor’s degree or higher

Empire State Development esd.ny.gov

UNEMPLOYMENT RATE 4.4%

Capital Region Center for Economic Growth ceg.org

RIGHT TO WORK STATE No QUALITY OF LIFE #21 POPULATION GROWTH 4.2% increase between 2010 and 2020

New York City Economic Development Corporation edc.nyc

Rochester Economic Development Corp. redcoroc.com Greater Rochester Enterprise rochesterbiz.com Buffalo Niagara Partnership thepartnership.org/economic-development

HIGHLIGHTED PROGRAM OR INITIATIVE: In October 2022, Gov. Kathy Hochul announced $150 million for workforce development programs. Administered by the newly formed Office of Strategic Workforce Development within Empire State Development, the grants will help meet the state’s workforce needs, increase the capacity of training providers and position it to fill in-demand jobs.

Electrovaya announced in October it will establish a lithium ion gigafactory and create 250 jobs in Chautauqua County.

Rosina Food Products announced in August 2022 it completed a $73 million expansion and will create 40 jobs.

JMA Wireless completed in July 2022 the first phase of a 5G manufacturing campus and global headquarters in Syracuse. It will create more than 200 jobs.

BIG COMPANIES 51 Fortune 500 companies headquartered in the state, including: Verizon Communications JPMorgan Chase Pfizer Citigroup PepsiCo IBM MetLife Goldman Sachs Group Morgan Stanley American International Group

C-SUITE TESTIMONIALS “We are thrilled to make this significant investment in New York, making the Empire State the location of the biggest leading-edge memory site in the U.S. We chose this location for many reasons, but most important—Central New York offers a rich pool of diverse talent, including communities that traditionally have been underrepresented in technology jobs.” —Sanjay Mehrotra, CEO, Micron “Electrovaya is proud to be bringing our sustainable technologies and approaches to New York State as Electrovaya’s first U.S.-based commercial facility. The facility will produce lithium-ion cells and modules, critical components for the manufacture of lithium-ion batteries.

We are pleased to support the creation of high-quality jobs in Chautauqua County and look forward to our continued growth in Western New York.” —Dr. Raj Das Gupta, CEO, Electrovaya “Corning has helped advance the semiconductor industry for more than 50 years, and our expansion will continue to keep us well positioned to support nearly every step of the chip manufacturing process as we respond to growing customer demand. We’re grateful for Gov. Hochul’s ongoing support and appreciate that she has made investing in and strengthening semiconductor manufacturing a priority.” —Wendell P. Weeks, Chairman and CEO, Corning 2023 CEO GUIDE TO SITE SELECTION 53

A CEO’S GUIDE TO SITE SELEC TION

North Carolina “North Carolina is one of the top locations in the world for pharmaceutical, and innovative manufacturers like BestCo help keep us there….Life science companies rely on the educational and workforce training systems we’ve built for their specific needs, and we’ll continue to invest in the workers who power this important industry in our state.”

—Gov. Roy Cooper

TAXES 2.5% top corporate income tax rate #11 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 87% of adults 25 years of age and older graduated high school 34.9% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 3.8% RIGHT TO WORK STATE Yes QUALITY OF LIFE #13 POPULATION GROWTH 9.5% increase between 2010 and 2020

54 2023 CEO GUIDE TO SITE SELECTION

TECH IN THE TARHEEL STATE

BIG DEALS

The Tarheel State remains a hotbed of economic growth, especially in the fields of tech and manufacturing. Charlotte recently ranked as one of the nation’s 10 fastest-growing economies, according to the Kenan Institute of Private Enterprise at UNC Chapel Hill. Home to three Tier 1 research universities, more than 7,000 companies and a highly skilled workforce, the Research Triangle continues to attract a growing number of multibillion-dollar projects. Semiconductor manufacturer Wolfspeed announced in 2022 it will construct a $5 billion plant and create 1,800 jobs in Siler City, a project officials say will completely transform the area.

Global healthcare leader Eli Lilly announced in January 2022 a $1 billion facility and 600 jobs in Concord.

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 Project: 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 and invests at least $1 billion.

BestCo announced in February 2022 a $177 million expansion and 394 new jobs in Mooresville.

International steel manufacturer Nucor Corporation announced in April 2022 a $350 million facility and 180 new jobs in Davidson County.

Pisgah Laboratories announced in July 2022 a $55 million manufacturing facility and 57 new jobs in Transylvania County.

Biotech manufacturing company ABEC announced in August 2022 an $11 million facility and 251 new jobs in Wilson.

Wolfspeed announced in September 2022 a $5 billion plant and 1,800 new jobs in Siler City.

Food processing company SOPAKCO announced in October 2022 an $85 million expansion and 440 new jobs in Scotland County.

BIG COMPANIES 13 Fortune 500 companies headquartered in the state, including: Lowe's Companies Bank of America Nucor Honeywell International Duke Energy Truist Financial Laboratory Corp. of America

C-SUITE TESTIMONIALS EDCs Economic Development Partnership of North Carolina edpnc.com North Carolina Department of Commerce nccommerce.com Raleigh Office of Economic Development raleighnc.gov/business Charlotte Regional Business Alliance charlotteregion.com

HIGHLIGHTED PROGRAM OR INITIATIVE In January 2022, the North Carolina Department of Commerce announced new small business grant funds for the One North Carolina Small Business Program.

Grant awards help small businesses develop and commercialize innovative new technologies. Companies in economically distressed areas may quality for larger awards or relaxed eligibility restrictions.

“Expanding our manufacturing footprint in North Carolina enables us to continue to produce today’s medicines while providing additional capacity to manufacture the medicines of tomorrow. We are pleased to again partner with North Carolina to bring jobs to American workers and provide more medicines that patients need to address health challenges.” —Edgardo Hernandez, Executive Vice President, Eli Lilly “SOPAKCO is appreciative of the support we have already received from state and local partners and looks forward to making a positive impact on these economies through this project.” —Lonnie F. Thompson, President, SOPAKCO “BestCo is part of a dynamic community that continually values and invests in fast-growing businesses. The ongoing support and partnership from state, county and city officials has been instrumental in BestCo’s rapid growth and success in the region in recent years.”

—Tim Condron, BestCo, President and COO

A CEO’S GUIDE TO SITE SELEC TION

North Dakota “North Dakota continues to be an innovative leader in ag technology. Today’s groundbreaking marks a milestone for Grand Farm’s private-public partnership, which will have a significant impact on our region and the acceleration of innovation in autonomous agriculture…. Every major step in proving the Grand Farm concept and commercializing this technology keeps North Dakota on the cutting edge of autonomous agriculture and increases the potential for this technology to improve productivity for farmers and help address our state’s workforce challenge through automation. We’re grateful for all of the private and public partners who continue to drive this important initiative.”

—Gov. Doug Burgum

TAXES 4.31% top corporate income tax rate #17 on the Tax Foundation’s State Business Tax Climate Index ranking

PROSPERITY IN THE PEACE GARDEN STATE

BIG DEALS

Despite forecasts of a bleak economic outlook and national recession, North Dakota’s economy remains strong. A Q3 2022 report by North Dakota State University found that state unemployment has continued to decline while tax collections have grown. The state retains one of the lowest individual tax rates in the nation and ranks in the top 10 for favorable corporate tax rates. Officials also offer numerous tax incentives, including property tax exemptions for new or expanding businesses, industry-specific tax exemptions and a corporate income tax exemption for up to five years.

Cerilon announced in October 2021 it will build a $2.8 billion gas-to-liquids complex in Trenton.

KEY INCENTIVES Innovation Technology Loan Fund (LIFT): An innovation loan fund that supports technology advancement by providing financing for commercialization of intellectual property within the state. Funds can be used for working capital to conduct applied research, experimentation or operational testing.

North Dakota Development Fund (NDDF): Offers “flexible gap financing” through loans and equity investments not available from most conventional lenders for the purpose of economic development.

Innovate ND: A voucher and grant program available to help turn an innovative idea into a profitable business.

PACE: Administered through the Bank of North Dakota (the nation’s only state-owned bank), helps communities expand their economic base by assisting primarysector businesses that make an investment or create jobs in the community. Proceeds from the fund may be used to purchase real property, equipment and certain working capital requirements.

EDCs

EDUCATION 93.6% of adults 25 years of age and older have graduated high school

North Dakota Commerce business.nd.gov

31.7% of adults 25 years of age and older have a bachelor’s degree or higher

Fargo Moorhead Economic Development gfmedc.com

UNEMPLOYMENT RATE 2.3% RIGHT TO WORK STATE Yes QUALITY OF LIFE #14 POPULATION GROWTH 15.8% increase between 2010 and 2020

Bismarck Mandan Cham Association bismarckmandanedc.com

Williston Economic Development Office willistondevelopment.com

HIGHLIGHTED PROGRAM OR INITIATIVE Operation Intern offers up to $4,000 in matching funds for internships in targeted industries like energy, advanced manufacturing, value-added agriculture, tourism and technology-based businesses. Funding is a one-to-one match and can be used for items needed for the intern to perform their internships, such as wages, tools and equipment, essential training or tuition reimbursement.

Grand Farm received a $10 million autonomous agriculture technology matching grant in February 2022 to fund the advancement of autonomous farming.

Bitzero Blockchain Inc. announced in July 2022 it will develop a $500 million data center in Nekoma.

Green Bison broke ground in June 2022 on a $350 million facility in Dickinson.

In October 2022, the state broke ground on the Grand Farm Innovation Facility near Casselton, which will foster innovation in autonomous agriculture technology.

BIG COMPANIES Bushel Northrop Grumman ADM Thread/Airtonomy Baker Boy Red Trail Energy Dakota Specialty Milling Giants Snacks AGT Foods Tharaldson Ethanol Anchor Ingredients Stone Mill Aldevron Amazon

C-SUITE TESTIMONIALS “The GFMEDC has been a valuable partner as we look to expand our operational footprint. Their expertise made us aware of opportunities we may not have previously considered and has allowed us to move faster and more efficiently.”—Tom Gohdes Sr., Director of Operations, Tecton Products “Working with the GFMEDC helped us solidify our decision to take a major leap forward with this significant project…. Knowing there were resources and partners out there to help us de-risk this investment was critical to this expansion moving forward.”—Mike Lepine, Owner and President, Standard Industries “The decision for Soiltech to choose Fargo as the hub for our Midwest operations was an easy one. There is a genuine enthusiasm to foster development and provide true support to growing companies in the Fargo Moorhead region.”—Ehsan Soltan, Founder and CEO, Soiltech Wireless

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A CEO’S GUIDE TO SITE SELEC TION

Ohio “By choosing Ohio, Intel has recognized what we have known all along: There is no better place to raise a family than Ohio. No better place to live, no better place to start or grow a business and no place to provide more opportunities than in the state of Ohio.”

—Gov. Mike DeWine

TAXES No corporate income tax #37 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 91.7% of adults 25 years of age and older graduated high school

BURYING THE “RUST BELT”

BIG DEALS

Ohio is a state that means business, and the world is taking notice, with the recent groundbreaking ceremony for two Intel giant semiconductor factories in New Albany creating global headlines. The $20 billion investment attracted President Joe Biden, who noted, “It’s time to bury the label ’Rust Belt’... ’Made in Ohio’ and ‘Made in America’ is not just a slogan. It’s happening.”

Procter & Gamble (P&G) announced in April 2022 a $501 million expansion and 135 new jobs in Lima.

KEY INCENTIVES

ORBIS Corporation announced in October 2022 a $42 million expansion and 40 new jobs in Urbana.

Job Creation Tax Credit (JCTC): Offers a refundable and performance-based tax credit calculated as a percentage of created payroll for businesses that create at least 10 jobs in three years with a minimum payroll of $660,000 and that pay at least 150 percent of the federal minimum wage.

Research and Development Investment Loan Fund: Offers loans of up to $5 million to projects engaged in R&D activity. Also offers a dollar-for-dollar, nonrefundable Ohio commercial activity tax credit for principal and interest payments made during the year up to $150,000 during the loan term.

Innovation Ohio Loan Fund: Offers loans of up to $1.5 million, covering up to 75% of construction, technology, facilities and equipment purchases.

EDCs

30.7% of adults 25 years of age and older have a bachelor’s degree or higher

JobsOhio jobsohio.com

UNEMPLOYMENT RATE 4.2%

City of Cleveland Economic Development makeitincleveland.org

RIGHT TO WORK STATE No

City of Cincinnati Community and Economic Developments choosecincy.com

QUALITY OF LIFE #36 POPULATION GROWTH 2.3% increase between 2010 and 2020

City of Columbus Economic Development columbus.gov/development/economic-development

Columbus Region columbusregion.com Team NEO northeastohioregion.com

HIGHLIGHTED PROGRAM OR INITIATIVE In September 2022, the Ohio Department of Job and Family Services announced that ApprenticeOhio sponsors and Ohio employers with registered apprentices in their workforce can apply for grants of up to $25,000 ($2,500 per apprentice for up to 10 apprentices) to help cover apprenticeship training costs incurred since July 1, 2020.

56 2023 CEO GUIDE TO SITE SELECTION

Ford announced in September 2022 a $1.5 billion investment and 2,000 new jobs at its facility in Avon Lake.

Intel broke ground in September 2022 on a $20 billion semiconductor factory that will create 3,000 jobs in New Albany.

Pixelle Specialty Solutions announced in October 2022 an investment of more than $21 million in upgrades and 52 new jobs in Chilpaco.

Honda and LG Energy Solution announced in October 2022 a $3.5 billion electric battery plant in Fayette County expected to create at least 2,200 jobs.

BIG COMPANIES 25 Fortune 500 companies headquartered in the state, including: Cardinal Health Marathon Petroleum Kroger Procter & Gamble Progressive Nationwide Cleveland-Cliffs Sherwin-Williams Goodyear Tire & Rubber

C-SUITE TESTIMONIALS “Today we continue building on an era of innovation. I must say, the welcome that we have received in Ohio is nothing short of tremendous. Education, manufacturing, good old Midwest values: We are thrilled that this is what the Silicon Heartland will represent for this area, for the Midwest, for this nation.” —Pat Gelsinger, President and CEO, Intel “While we are growing in several other states, Ohio prioritized our workforce expansion in a way that other states should note. This is as much a compliment to the state’s economic and workforce development professionals as it is a recognition of Ohio as the Silicon Heartland.” —Ken Edge, CEO, Infinity Labs “The landscape and the people and community are very welcoming and have been very supportive. It is very important to us as a company to be involved in the community. We are in the business to grow food, and it takes a community to bring it all together. We are excited to join the community of Defiance and build our relationships together.” —Russell Sides, Executive Vice President, Tessenderlo Kerley

A CEO’S GUIDE TO SITE SELEC TION

Oklahoma “My vision is to create a taxpayer protection plan that responsibly lowers income taxes according to our state revenue. Cutting taxes based on how our economy grows ensures we’ll always have money to pay for core services like education and roads and bridges.”—Gov. Kevin Stitt

TAXES 4% top corporate income tax rate #23 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 88.7% of adults 25 years of age and older graduated high school 27.9% of adults 25 years of age and older have a bachelor’s degree or higher

CUTTING RED TAPE AND TAXES SOONER

BIG DEALS

Oklahoma has been charting its path to growth by cutting taxes and red tape. Part of Gov. Stitt’s plan is to grow the tax base by growing residents rather than raising tax rates. A study by the Weldon Cooper Center for Public Service at the University of Virginia projects the Sooner State population to grow by more than 10% by 2040. In addition to a continual stream of investments in the aerospace industry, Oklahoma is drawing interest from a growing number of manufacturers and tech companies. Provalus, Northern Data and Jasco Products have announced investments here in the past year.

German tech company Northern Data announced in March 2022 it will invest $270 million and create 150 jobs at a North American operational headquarters in Pryor.

KEY INCENTIVES

Jasco Products announced in July 2022 a $40 million upgrade for its production facility in Oklahoma City.

21st Century Oklahoma Quality Jobs Program: Offers a cash grant of up to 10% on taxable payroll for businesses that create at least 10 jobs with an annual wage that is the lesser of $101,650 or 300% of the average county wage.

Oklahoma Quality Jobs Program: Offers cash grants of up to 5% of new employee payroll for businesses that create at least $2.5 million in new annual payroll in three years with jobs that meet the average county wage.

Insurance Premium Tax Credit: Offers an annual tax credit to insurance companies that locate or expand a regional home office in the state and maintain at least 200 employees.

Investment/New Jobs Income Tax Credit: Offers a five-year tax credit on the greater of 1% per year of capital improvement investment or a credit of $500 for each new job created.

EDCs

UNEMPLOYMENT RATE 3.4%

Oklahoma Department of Commerce Economic Development Services okcommerce.gov

RIGHT TO WORK STATE Yes

Oklahoma City Economic Development okc.gov/departments/economic-development

QUALITY OF LIFE #43 POPULATION GROWTH 5.5% increase between 2010 and 2020

Greater Oklahoma City greateroklahomacity.com Tulsa’s Future Regional Economic tulsasfuture.com

HIGHLIGHTED PROGRAM OR INITIATIVE The Oklahoma Center for the Advancement of Science and Technology (OCAST) is designed to create a business accelerator programs to create jobs and help grow Oklahoma companies. It will establish three accelerators, in Oklahoma City, Tulsa and rural area of the state.

Air Transport Components announced in April 2022 plans to establish a new MRO Facility and create 50 jobs in Tulsa.

USA Rare Earth announced in June 2022 it will build its first fully integrated U.S.-based rare earth metal and neo-magnet manufacturing facility in Stillwater.

RENEW Energy announced in July 2022 it will construct a new remanufacturing facility in Enid.

Provalus opened its fourth technology innovation center in Tahlequah in September 2022. The deal is expected to create 200 jobs.

Environmental and engineering consulting firm Trihydro Corporation opened an office in Owasso in October 2022.

Premium Aerospace announced in October 2022 it will locate its international headquarters at the Oklahoma Air & Space Port complex in Burns.

BIG COMPANIES 3 Fortune 500 companies headquartered in the state: Oneok (Fortune 500 headquarters) Devon Energy (Fortune 500 headquarters) Williams Companies (Fortune 500 headquarters) Chesapeake Energy (Fortune 1000 headquarters) Continental Resources (Fortune 1000 headquarters) NGL Energy Partners (Fortune 1000 headquarters) OGE Energy (Fortune 1000 headquarters)

CEO TESTIMONIALS “Though we’re no stranger to Owasso and have several team members local to the area, it is an exciting time for us as we officially open an office to support our growing team’s ability to deliver services.” —George Mathes, EVP and Chief Development Officer, Trihydro Corporation “We are excited to enter into strategic agreements with our partners of choice in Oklahoma, which marks the beginning of a new chapter of our growth story.”

—Aroosh Thillainathan, CEO, Northern Data “Oklahoma and the city of Tahlequah have really embraced technology and recognize what that can mean for creating a skilled population in the region. Between the local talent, students graduating from the career tech center programs and NSU, we feel as though we have a community and talent pool that recognize the career path and opportunity within the tech field.”

—Laura Chevalier, President, Provalus

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A CEO’S GUIDE TO SITE SELEC TION

Oregon “Oregoinians don’t back down when things get hard.

We dig in, we think outside the box and we get the job done. Together, we will move Oregon forward.”

—Gov. Tina Kotek

EQUITABLE ECONOMIC OPPORTUNITY

BIG DEALS

In the summer of 2022, Business Oregon announced the completion of its Plan for a Balanced Economic Recovery, a report that looked at how the agency and state government can support equitable outcomes as the state recovers from the pandemic. The plan is built on a foundation of input from a broad list of stakeholders, including 220 participants in six regional forums, 120 people in focus groups and 289 survey responses. They recommended strategies to increase access to capital and extend broadband infrastructure. The plan also recommends adopting existing infrastructure funding programs to incentivize municipally owned residential infrastructure and to work with private industry to improve childcare access.

Genentech announced in March 2021 a $175 million expansion and 100 new jobs at its facility in Hillsboro.

TAXES 7.6% top corporate income tax rate

KEY INCENTIVES

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

Oregon Investment Advantage (OIA): Helps businesses start or locate new types of operations in a number of counties by providing an income tax subtraction, potentially eliminating state income tax liability on new operations.

EDUCATION 91.9% of adults 25 years of age and older graduated high school 36.3% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 4.1% RIGHT TO WORK STATE No QUALITY OF LIFE #22 POPULATION GROWTH 10.6% increase between 2010 and 2020

Strategic Reserve Fund (SRF): Offers a flexible tool for job retention and creation, often used as forgivable loans helping businesses expand in Oregon.

Business Expansion Program (BEP): Offers a cash incentive based on the estimated increase in new personal income tax revenue resulting from the new hires.

Enterprise Zones: Offers a three- to five-year exemption from local property taxes on new plant and equipment for expansion, with longer terms available in rural areas.

Strategic Investment Program (SIP): Exempts a portion of very large capital investments from property taxes for 15 years.

EDCs Business Oregon oregon.gov/biz/Pages/default.aspx Oregon Economic Development Districts oedd.org Prosper Portland prosperportland.us Strategic Economic Development Corporation sedcor.com

HIGHLIGHTED PROGRAM OR INITIATIVE Developed by the Futures Commission, the Oregon Innovation Plan aims to orient the state economy around innovation. The four strategies are to foster ideation, strengthen the innovation ecosystem, catalyze risk capital and promote the state as place to start and grow an innovative company.

58 2023 CEO GUIDE TO SITE SELECTION

Facebook announced in March 2021 it would construct a $2 billion data center in Prineville.

Portland-based Expensify announced in November 2021 the first tech IPO in the state since 2004.

Amazon announced a $127 million fulfillment center and 1,800 new jobs in Woodburn.

Portland AI healthcare startup Carta landed a $20 million investment round in November 2022.

Oregon State University announced in October 2022 plans for a $200 million research and education center to focus on AI, materials science and robotics.

BIG COMPANIES Nike (Fortune 500 headquarters) Lithia Motors (Fortune 500 headquarters) Greenbrier Columbia Sportswear Portland General Electric Teledyne FLIR

C-SUITE TESTIMONIALS “We are delighted to open our new office here in the Greater Portland area. We chose this region over other startup hubs due to its several strategic advantages, including an active startup community, a greater talent pool and a vibrant city culture.” —Sudhir Bhatti, CEO, GrowthPlug “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, Edwards Vacuum

A CEO’S GUIDE TO SITE SELEC TION

Pennsylvania “As governor, I’ll lead the way to reignite our economy, ensuring businesses come to Pennsylvania and stay here, and making our Commonwealth a national leader for innovation, manufacturing, and job creation….

Under my administration, Pennsylvania will lead the nation in biotech and autonomous vehicles­—we’ll connect businesses with leading research institutions, get companies access to capital, and create a talent pipeline from high school and college to the workforce. I will work relentlessly to support Pennsylvania businesses, encourage companies to move here, and expand our workforce by protecting workers’ rights and investing in job training and apprenticeships.”

—Gov. Josh Shapiro

TAXES 9.99% top corporate income tax rate #33 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 91.9% of adults 25 years of age and older graduated high school 34.5% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 4% RIGHT TO WORK STATE No QUALITY OF LIFE #40 POPULATION GROWTH 2.4% increase between 2010 and 2020

THE KEY TO GROWTH

BIG DEALS

Pennsylvania currently has one of the 10 largest state economies in the nation, with top universities, a strong talent market and more than 20 Fortune 500 companies headquartered in the state. Alma Group, West Pharmaceutical Services and Guardian Booth have all announced projects here in the past year. They Keystone State is now trying to drive more of that urban growth into its rural areas and coal-impacted communities. A new report by The Brookings Institute noted that the state has many of the assets needed for innovation-driven growth, including leading universities and a diverse talent pool to foster high-quality economic growth across all industries.

Almac Group announced in June 2022 a $93 million expansion and 355 new jobs in Montgomery County.

KEY INCENTIVES Qualified Manufacturing Innovation & Reinvestment Deduction: Offers a 5% corporate tax deduction for up to five years for companies that invest more than $100 million in a manufacturing facility.

Pennsylvania Industrial Development Authority (PIDA) Loan: Offers low-interest loans to finance land, building, machinery and equipment costs for businesses that commit to creating or retaining jobs.

Job Creation Tax Credit (JCTC): Offers a tax credit of $1,000 per year for three years for each job for companies that create at least 25 jobs or expand existing employment by 20%.

Pennsylvania First Program (PA First): Offers grants, loans or loan guarantees for large-scale competitive “targeted industry” projects that involve significant job growth and capital investment.

EDCs Pennsylvania Department of Community and Economic Development dced.pa.gov Harrisburg Regional Chamber & CREDC harrisburgregionalchamber.org/economic-business-development PIDC Philadelphia pidcphila.com Pittsburgh Region: Next is Now pittsburghregion.org

HIGHLIGHTED PROGRAM OR INITIATIVE In late 2022, the state received more than $900 million in funding for 19 projects that will create revenue streams and support for state farmers using climate-smart practices. The initial projects will expand markets for climate-smart commodities, leverage greenhouse gas benefits of climate-smart commodity production and provide meaningful benefits to production agriculture.

GLG announced in June 2022 an expansion in and 250 jobs in Philadelphia.

Guardian Booth announced in August 2022 it will relocate its headquarters and create 33 new jobs in Waynesboro.

Gasbarre Products, Inc. announced in October 2022 a $5.8 million expansion in Harrisburg that will create and retain 172 jobs.

Cabinetworks Group announced in October 2022 an expansion and 327 new jobs in Huntingdon County.

West Pharmaceutical Services Inc. announced an expansion and 225 new jobs in Jersey Shore, Lycoming County.

BIG COMPANIES 23 Fortune 500 companies headquartered in the state, including: UGI Avantor PPL Select Medical Holdings PENN Entertainment Ametek FMC American Eagle Outfitters Howmet Aerospace Urban Outfitters

C-SUITE TESTIMONIALS “As GLG continues to grow, we are thrilled to add this unique Philadelphia location to our U.S. office hubs.

Philadelphia is close to many of our clients and many of the world’s leading educational institutions. The smart and diverse talent pool available to us here will help us meet the increasing demand for our services.” —Paul Todd, CEO, GLG “Our strategic directive was to expand our geographical reach to support customers throughout the mid-Atlantic, Northeast, Midwest and Southeast while increasing our manufacturing footprint over the next few years; Franklin County was the perfect fit in terms of location.” —Abraham Taub, Owner and CEO, Guardian Booth “Our investment in the new facility in St. Marys provides an opportunity for Gasbarre to continue to grow and flourish where we have manufactured for nearly 50 years…. The work ethic and skills provided by past, current and future Gasbarre team members provide a strong base for this move. We look forward to adding new team members in the coming months when the move process is completed. The people of Elk County and St. Marys will be key to our success.”

—Alex Gasbarre, CEO, Gasbarre

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A CEO’S GUIDE TO SITE SELEC TION

Rhode Island “Rhode Island has momentum! Our state has one of the best-ranked economic recoveries in the nation according to Moody's, our unemployment rate is the lowest it has been since the current methodology was introduced 46 years ago, and there are still plenty of opportunities ahead.”

—Gov. Daniel McKee

REACHING HIGH IN LITTLE RHODY

BIG DEALS

“Little Rhody” has been going to great lengths to shore up its small businesses in the past couple of years. The state has granted more than $51 million in awards to 4,100 small businesses, with up to $30,000 for each company. State officials also announced another program in January 2022 that offers direct financial assistance of up to $5,000 for each qualifying business.

Rhode Island’s IT software, cyber systems and data analytics industry concentration is 18% higher than the national average. The state has recently experienced a cluster of patent activities in fields such as e-commerce, data processing, enterprise applications and cybersecurity. Rhode Island continues to be a leading area for innovation-led emerging companies, including GreenBytes, Upserve, Utilidata and ShapeUp.

Fidelity Investments announced in August 2021 another 350 jobs at its offices in Smithfield.

Market Basket opened a $30 million store and created 400 new jobs in Johnston in August 2021.

Amazon started construction in December 2021 on a $290 million distribution facility in Johnston.

Local company Clarke Valve announced in July 2022 a $5 million Series D funding round to scale its dilating disc valve technology.

Bank Rhode Island announced in October 2022 it will build its new headquarters in Providence.

Brown University kicked off construction in October 2022 on a 212,000-square-foot lab and biotechnology space.

KEY INCENTIVES TAXES 7% top corporate income tax rate #42 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 84% of adults 25 years of age and older have graduated high school 36.5% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 3.4% RIGHT TO WORK STATE No QUALITY OF LIFE #34 POPULATION GROWTH 4.3% increase between 2010 and 2020

Innovation Voucher Program: Offers up to $50,000 for companies with 500 employees or fewer to support R&D projects that commercialize a new product, process or service or support scale-to-market development or new expertise.

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: Fills 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.

EDCs Rhode Island Commerce commerceri.com Division of Statewide Planning planning.ri.gov City of Providence Business Portal providenceeconomicdevelopment.com/business-portal/index.php City of Warwick Department of Economic Development movetowarwickri.com

HIGHLIGHTED PROGRAM OR INITIATIVE Rhode Island Innovates 2.0, the state’s latest Comprehensive Economic Development Strategy equivalent, calls for policy and investment in new opportunities. Areas of focus for the strategy include the blue economy, offshore wind as a targeted industry cluster, the back-office market, creating a minority business accelerator and transition to the future of work via a new technology adjustment initiative.

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BIG COMPANIES 6 Fortune 500 companies headquartered in the state: CVS Health United Natural Foods Textron Citizens Financial Group FM Global Hasbro

C-SUITE TESTIMONIALS “When we can fulfill our academic needs for additional space to advance high-impact research and, at the same time, spark investments from new commercial partners, we see benefits not just for Brown but also for the economic vitality of Providence and Rhode Island.”

—Christina H. Paxson, President, Brown University “Quonset was just a natural fit for us, and the process in place there makes it simple and easy for a business to set up shop. As the company continues to grow, we needed a centralized operations center to support the development of renewable projects throughout Rhode Island. Quonset was not only a great location, but we have the added benefit of shipping solar and wind components directly to a pier at the Port of Davisville, which is in close proximity to our new facility.”

—Mark DePasquale, Chairman and Founder, Green Development, LLC

A CEO’S GUIDE TO SITE SELEC TION

South Carolina “Thanks to our talented workforce and strong business environment, South Carolina is booming.”

—Gov. Henry McMaster

PROGRESS IN THE PALMETTO STATE

BIG DEALS

South Carolina has long been known as a business-friendly state with a strong talent market, so it’s no surprise that more companies and residents are moving there. While CEOs enjoy the lack of property taxes, inventory taxes and generous tax exemptions, workers like the quality of life, rich scenery, beaches and affordable home prices. TELUS International, Oshkosh Defense, Health Supply US and Robert Bosch all announced projects here in the past two years.

Proterra announced in December 2021 a $76 million expansion and more than 200 new jobs at its EV battery manufacturing facility in Spartanburg County.

KEY INCENTIVES TAXES 5% top corporate income tax rate #31 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 81% of adults 25 years of age and older graduated high school 31.5% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 3.4% RIGHT TO WORK STATE Yes QUALITY OF LIFE #42 POPULATION GROWTH 10.7% increase between 2010 and 2020

Corporate Headquarters Tax Credit: Offers a 20% tax credit, which can be applied against the corporate income tax or license fee, to companies that relocate or expand a corporate headquarters facility.

Investment Tax Credit: Offers a tax credit of up to 2.5% of investment in new production equipment to manufacturers locating or expanding in the state.

Jobs Tax Credit: Offers a financial incentive for new and expanding companies that create and maintain at least 10 net new jobs in the state.

Research & Development Tax Credit: Offers a credit of up to 5% of a company's qualified research expenses as defined in Section 41 of the Internal Revenue Code.

Job Development Credit: This is a discretionary program that offers a quarterly cash refund of a portion of the personal withholding taxes of new employees.

EDCs South Carolina Department of Commerce sccommerce.com Columbia Economic Development choosecolumbiasc.com Charleston Regional Development Alliance crda.org Central SC Alliance centralsc.org

HIGHLIGHTED PROGRAM OR INITIATIVE The South Carolina Department of Commerce’s Business Services team has been working diligently with companies, assisting them in growth areas like small business support, trade and export, workforce and supplier support, innovation, emergency management and recycling. In 2021, the team conducted visits or consultations with 536 existing operations in South Carolina to help them be more productive, profitable and sustainable.

Blue Diamond announced in February 2022 a $18 million investment and 90 new jobs in Laurens County.

Switzerland-based SHL Medical announced in July 2022 a $90 million investment and 165 new jobs in Charleston County.

Paxton Access announced in October 2022 a $10 million headquarters in Greenville County.

Electric car company Dash EV announced it will establish its headquarters in Greenville, South Carolina.

BIG COMPANIES Sonoco Products (Fortune 1000 headquarters) Domtar (Fortune 1000 headquarters) ScanSource (Fortune 1000 headquarters)

C-SUITE TESTIMONIALS “Our new U.S. site in North Charleston will be a state-ofthe-art facility that will support our customers further with our end-to-end capabilities, providing high-quality drug delivery systems to the end users—patients around the world…I want to acknowledge the support that we have received from the state and county levels for this project.” —Ulrich Faessler, CEO and Chairman, SHL Medical “The Southeast is exploding with opportunity, and investments in digital infrastructure are key to its growth.

We are proud to announce plans for our second data center in the state of South Carolina with this new Cable Landing Station in Myrtle Beach…we are thankful to the city of Myrtle Beach, Horry County and the state of South Carolina for their tremendous support in making this project happen.” —Jeff Uphues, CEO, DC BLOX “Our investment in Laurens County will provide us a platform where we can grow and, through additional investments, ensure the scalability of our HDPE protection conduit and the U.S. expansion of Hexatronic’s FTTH network solutions. We’d like to sincerely thank Laurens County and the state for their outstanding support, and we look forward to their continuing partnership for years to come.” —Will Jensen, CEO, Blue Diamond Industries

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South Dakota MAINTAINING MOMENTUM IN THE MOUNT RUSHMORE STATE

“Businesses are starting in South Dakota at a faster rate than any state in America, and the businesses that have been here for years are flourishing.

That’s a testament to the predictability and sustainability of our low tax environment, which enables businesses to feel comfortable making longterm investments in our state.”

—Gov. Kristi Noem

The drought in 2022 took a toll on the economies of some agricultural states, including South Dakota.

However, the state’s growing diversification is helping offset some of those losses. Tourism remains a large economic driver here, and new investments in manufacturing, renewable energies and batteries are opening doors to further growth. Gevo, Manitou and Æsir Technologies have all expanded in the Mount Rushmore State in the past year. Gov. Kristi Noem is now aiming to continually grease the wheels of economic momentum by maintaining some of the most favorable tax rates in the nation.

KEY INCENTIVES Favorable tax climate. No corporate income taxes, no personal income taxes, no personal property taxes, no business inventory taxes and no estate taxes.

TAXES No corporate income tax #2 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 93.1% of adults 25 years of age and older graduated high school 31.7% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 2.4%

Revolving Economic Development & Initiative (REDI) Fund: Available to startups, businesses expanding and/or relocating to South Dakota and local economic development corporations. Approved funds can be used for purchase of land, buildings, machinery and equipment.

Local Infrastructure Improvement Program (LIIP): Provides communities with funds that aim to improve the quality of life for residents of the community. Projects include execution and completion of roads, storm sewers and community buildings.

EDCs Governor’s Office of Economic Development sdgoed.com Sioux Falls Development Foundation siouxfallsdevelopment.com

RIGHT TO WORK STATE Yes

Elevate Rapid City elevaterapidcity.com

QUALITY OF LIFE #15

Rushmore Region rushmoreregion.com

POPULATION GROWTH 8.9% increase between 2010 and 2020

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HIGHLIGHTED PROGRAM OR INITIATIVE The Reinvestment Payment Program and South Dakota Jobs Grant Program assist companies in offsetting the upfront costs associated with relocating or expanding operations and/or upgrading equipment. They leverage sales and use tax rebates that are funded back to the project.

BIG DEALS Food manufacturer Albany Farms is investing $230 million in a multiphase project in Belle Fourche that will create 1,000 jobs.

Battery manufacturer Æsir Technologies is investing $250 million and creating 1,500 jobs in Rapid City.

Renewable fuels company Gevo is investing $977 million and creating 90 jobs in Lake Preston.

Industrial manufacturer Manitou is investing $80 million in two projects and creating 100 jobs in Madison and Yankton.

Royal Canin is investing $185 million and creating 149 new jobs in Sioux City.

Valley Queen Cheese is investing $195 million in capital investment and is expected to create 100 new jobs.

BIG COMPANIES Wells Fargo 3M Citibank Esurance Smithfield Foods Premier Bankcard

CEO TESTIMONIALS “Almost immediately everybody in our search group felt Belle Fourche was the perfect fit for us. The main thing was the people. We were greeted warmly and made to feel welcome.” —Bill Saller, CEO, Albany Farms “The economic development package put forward by South Dakota was significantly superior to the other 20 locations being considered. Incentives offered by many other locations consisted of abatements of taxes that don’t exist in South Dakota. Here, the incentives provided true leverage to make our financial plan come together.” —Randy Moore, Æsir, CEO “We have used REDI quite a few times in growing our business. It was a really good tool to get us a low-interest loan. I’ve been involved in economic development a long time; it’s fun to see how much it’s changed in South Dakota and how much help there is for entrepreneurs and businesses that want to grow. That’s one of the things that makes South Dakota really great.”

—Jay Bender, CEO, Falcon Plastics

A CEO’S GUIDE TO SITE SELEC TION

Tennessee “Our strong business climate, skilled workforce and central location make Tennessee the ideal location for businesses to thrive.”

—Gov. Bill Lee

TAXES 6.5% top corporate income tax rate #14 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 89.7% of adults 25 years of age and older have graduated high school

VOLUNTEERING FOR ECONOMY GROWTH

BIG DEALS

While Tennessee may be known as the Volunteer State, it’s all about profit and economic growth. Several hot sectors currently include manufacturing, tech and the electric vehicle industry. German automaker Volkswagen just announced over the summer the start of production of its all-electric ID.4 SUV at its manufacturing facility in Chattanooga. Meanwhile, Ford broke ground in Stanton to build the largest auto production complex constructed in the company’s 119-year history.

Chemical company Wacker announced in July 2022 a $200 million expansion and more than 200 new jobs in Charleston.

KEY INCENTIVES FastTrack Job Training Assistance Program: Offers grants to assist new or expanding companies to fund training for new employees.

FastTrack Economic Development Fund: Offers a grant to offset costs for eligible companies expanding or locating a business in Tennessee.

Job Tax Credit: Offers a credit of $4,500 per job to offset up to 50% of franchise and excise (F&E) taxes in any given year with a carry forward for up to 15 years.

Industrial Machinery Tax Credit: Offers a credit of up to 10% for the purchase, third-party installation and repair of qualified industrial machinery.

iFixit announced in July 2022 a $24 million distribution hub and 201 new jobs in Chattanooga.

Hankook Tire & Technology announced in August 2022 a $612 million investment and 400 new jobs at its Clarksville facility.

Bridgestone Americas announced in August 2022 a $550 million expansion and 380 new jobs in Morrison.

Georgia-Pacific announced in September 2022 a $425 million investment and 220 new jobs in Madison County.

TN Composites announced in September 2022 a $23.1 million expansion and 132 new jobs at its White Bluff manufacturing site.

Handsome Brook Farms announced in October 2022 a $30 million facility and 140 new jobs in Morristown.

BIG COMPANIES

30.5% of adults 25 years of age and older have a bachelor’s degree or higher

Tennessee Department of Economic and Community Development tnecd.com

UNEMPLOYMENT RATE 3.5%

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

10 Fortune 500 companies headquartered in the state: FedEx HCA Healthcare Dollar General International Paper AutoZone Tractor Supply Community Health Systems Unum Group Delek US Holdings Eastman Chemical

The Memphis Economy thememphiseconomy.com

C-SUITE TESTIMONIALS

RIGHT TO WORK STATE Yes QUALITY OF LIFE #29 POPULATION GROWTH 8.9% increase between 2010 and 2020

EDCs

Greater Chattanooga Economic Partnership greaterchatt.com Knoxville Chamber Economic Development knoxvillechamber.com/economic-development

HIGHLIGHTED PROGRAM OR INITIATIVE The Governor’s Investment in Vocational Education (GIVE) 2.0 was created three years ago to help address talent shortages. It assists with forging long-term regional partnerships between Tennessee Colleges of Applied Technology (TCATs), community colleges, industry, economic development/workforce agencies and K-12 to address the skills gap in the local workforce and expand access to vocational and technical training.

“Five Star has been blessed by incredible growth, and we are excited to partner with Riverside Development to rehabilitate a historic Chattanooga building to expand our workplace…. Being next door to the University of Tennessee at Chattanooga, where we find a great pool of professional talent, is also very exciting.”

—Richard Kennedy, President and CEO, Five Star Food Service “Moving to our new location in Bells will enable Alfresco Pasta to increase our production capacity by over six times our current rate, helping us meet the growing demand for our high-end product line, including with large national accounts. It also gives us the ability to expand our offering with innovative new products to keep up with the rising demand for fresh, healthy foods.”

—Chris Grissom, President, Alfresco Pasta "The greater Nashville region is turning into a foodservice, healthcare and real estate hub that fits our growth strategy across all business lines. We are thrilled to be opening a new Highland Ventures corporate office just south of Nashville in Brentwood, Tennessee.” —Keith Hoogland, President and CEO, Highland Ventures 2023 CEO GUIDE TO SITE SELECTION 63

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Texas "Thanks to the strength of the Texas economy and the best workforce in America, Texas has surpassed three major employment milestones, smashing all previous records with more jobs than ever, more Texans working than ever and the largest labor force ever in the state’s history.”

—Gov. Greg Abbott

TAXES No corporate income tax #13 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 85.4% of adults 25 years of age and older have graduated high school 33.1% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 4% RIGHT TO WORK STATE Yes QUALITY OF LIFE #31 POPULATION GROWTH 15.9% increase between 2010 and 2020

LONE STAR VS. THE GOLDEN STATE

BIG DEALS

The Lone Star state has been in a battle with California for talent and companies for years. As of 2022, Texas was still doubling down to lure companies away from the Golden State. Economic development officials note while California has the largest economy in the nation, Texas spends a greater portion of its local and state spending on education.

The state also held the top spot for number of residents added in 2020 and 2021, with half of the nation’s fastest-growing cities. As companies flock to Texas for its talent and favorable business climate, the state is also growing its own. Texas startups attracted more than $10 billion in 2021, more than double the total in 2020, according to data from PitchBook and the National Venture Capital Association.

Samsung Electronics announced in November 2021 it will construct a $17 billion semiconductor chip manufacturing facility and create 2,000 jobs in Taylor.

KEY INCENTIVES 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.

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.

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 up to $750,000 toward public infrastructure upgrades for businesses that create and retain permanent jobs, primarily for low- and moderate-income persons.

EDCs Texas Economic Development gov.texas.gov/business Texas Economic Development Corporation businessintexas.com Austin Chamber austinchamber.com/economic-development Greater Houston Partnership houston.org Greater SATX Regional Economic Partnership greatersatx.com Dallas Economic Development dallasecodev.org

HIGHLIGHTED PROGRAM OR INITIATIVE Launched in 2016, the Tri-Agency Workforce Initiative assesses local economic activity, examines workforce challenges and opportunities and considers innovative approaches to meeting the state’s workforce goals.

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Texas Instruments announced in November 2021 it will build a semiconductor wafer fabrication facility in Sherman with the potential for $30 billion investment and 3,000 jobs in the coming years.

Cacique Foods announced in April 2022 it will build a new facility in Amarillo.

Ruiz Foods announced in May 2022 it will open a regional headquarters and create 125 new jobs in Frisco.

Semiconductor manufacturer GlobiTech announced in June 2022 it will open a new manufacturing facility and add 1,500 jobs in Sherman.

BIG COMPANIES 53 Fortune 500 companies headquartered in the state, including: ExxonMobil McKesson AT&T Phillips 66 Valero Energy Dell Technologies Energy Transfer Tesla Sysco ConocoPhillips

CEO TESTIMONIALS “We believe selecting Frisco, Texas, will allow for greater business opportunities, more efficient access to each of our facilities and easier recruitment of talent with important skill sets, such as consumer products, IT and marketing experience.” —Dan Antonelli, CEO, Ruiz Foods “You’ve got to come experience it because it’s difficult to articulate it in a way that’s believable until you experience it. If you’re thinking about (moving to Amarillo), you’ve got to come here and really look at the area… I can tell you that before we got here, before we started the tour, I’m not sure I would have believed some of what I was told.” —Gilbert de Cardenas Jr., CEO, Cacique Foods “As we look to the future, our business needs, opportunities for cost savings and team members’ preferences about the future of work, we are excited to relocate HPE’s headquarters to the Houston region.... Houston is an attractive market to recruit and retain future diverse talent and where we are currently constructing a stateof-the-art new campus.” —Antonio Neri, CEO, HPE

A CEO’S GUIDE TO SITE SELEC TION

Utah

BUZZING ECONOMY GROWTH IN THE BEEHIVE STATE

“Don’t let anyone tell you the world is worse today.

The world is in a great place.

We have stuff to fix, and we can fix it together…. We can solve every single problem that we’ve ever faced. There are more jobs available right now than ever before in our state’s history.”

—Gov. Spencer Cox

TAXES 4.95% top corporate income tax rate #8 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 93.2% of adults 25 years of age and older graduated high school 36.8% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 2% RIGHT TO WORK STATE Yes QUALITY OF LIFE #3 POPULATION GROWTH 18.4% increase between 2010 and 2020

While tourists come to Utah for natural beauty in places like Zion, Canyonlands and Bryce Canyon National Parks, CEOs are flocking to the state for its favorable business climate and quality talent. An October 2022 report by the University of Utah's Kem C. Gardner Policy Institute found the engineering and computer science workforce now generates $19.1 billion and represents more than 12% of the state’s economy. Job growth in the sector is expected to exceed other occupations through 2028.

Morgan Stanley, Jabil and Campbell Scientific have all announced projects here in the past few years.

KEY INCENTIVES Economic Developent Tax Income Finance Credit: Offers a refundable tax rebate for up to 30% of new state revenues, over the life of the project, for companies relocating or expanding their operations.

Industrial Assistance Account: A post-performance grant for companies that create at least 50 jobs in urban counties and pay at least 110% of the county average wage.

Utah New Market Tax Credit: Awarded to businesses that relocate or expand to the most severely distressed areas of the state.

Technology and Life Science Tax Credit: Qualifying technology and life science investors may receive a post-performance nonrefundable tax credit for up to 35% of their investment over three years.

EDCs Utah Governor’s Office of Economic Opportunity business.utah.gov Economic Development Corporation of Utah edcutah.org Salt Lake City Economic Development slc.gov/ed City of Provo Economic Development provo.org/departments/economic-development

HIGHLIGHTED PROGRAM OR INITIATIVE The Center for Economic Opportunity & Belonging (CEOB) at the Economic Development Corporation of Utah (EDCUtah) was launched in June 2021 to serve as the private sector’s commitment to work alongside government and communities of color to advance the principles outlined in the Utah Compact on Racial Equity, Diversity and Inclusion (the Compact). CEOB recently founded the Utah New Americans Task Force, which is developing a comprehensive, multilayered, actionable strategic plan to maximize the economic, social and civic potential of new Americans and build an environment of belonging in Utah.

BIG DEALS Global manufacturing firm Jabil announced in April 2022 a $10 million expansion and 150 new jobs in rural Utah.

Campbell Scientific announced in April 2022 a $40 million expansion and 268 new jobs in Logan.

Allegiant Travel announced plans in April 2022 to establish a $95 million aircraft base and create 157 jobs at Provo Airport.

Breeze Aviation Group announced in May 2022 an $8.2 million expansion and 78 new jobs.

Lineage Logistics Holdings announced in August 2022 a $125 million logistics facility and 96 jobs in Grantsville.

Apparel brand Lions Not Sheep announced in September 2022 that it will move the company’s headquarters and create 70 jobs in Salt Lake City.

Morgan Stanley announced in October 2022 a $1 million expansion and up to 800 new jobs in Utah.

BIG COMPANIES Zions Bancorporation (Fortune 1000 headquarters) Overstock.com (Fortune 1000 headquarters) SkyWest Airlines(Fortune 1000 headquarters) Nu Skin Enterprises (Fortune 1000 headquarters) PROG Holdings (Fortune 1000 headquarters)

C-SUITE TESTIMONIALS “We chose Utah because of the quality of life, business-friendly climate and a loyal and well-educated workforce. Since choosing Utah, we have felt comfortable and well received. I would give all thumbs up to anyone who is thinking about choosing Utah.”

—Martin Ritter, CEO, Stadler US “We’re thrilled with the opportunity to expand our footprint in the West and partner with the people of Cedar City to offer our state-of-the-art printing capabilities.

This new location enables us to be closer to and collaborate directly with customers in the western United States.” —Jeff Koch, president, American Packaging Corporation “Iron County is just the best place in the world to work…Utah’s a great state, and we’re becoming market leaders in the country—showing people how it can be done using local people and relying on the resources available here.” —Luigi Resta, president and CEO, rPlus Energies “The solution Logan offered featured a combination of an existing workforce with food processing skills at all levels, proximity to western U.S. customers and property solutions with valuable infrastructure, all of which played a decisive role in our decision.” —Rogerio Silva, CEO, Frulact

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Vermont

SLOW GOING AND SOLID GROWTH IN THE GREEN MOUNTAIN STATE

"My administration remains focused on retaining and creating jobs and supporting businesses in every region of the state…. [The small business credit initiative] will support our innovative employers, helping them to grow and become national leaders while strengthening our communities here at home.”

—Gov. Phil Scott

The Green Mountain State may not have the biggest economy, but it offers a slower-paced quality of life that many executives enjoy and can’t find anywhere else.

Vermont retains a top spot in several national rankings for things like clean air and safety, and the small size of the state means business leaders and government are often a close-knit community. The growth in remote work and incentives has also made the state an attractive place for tech workers. Gov. Phil Scott is now proposing a 2023 budget that will use funding to help make the state more affordable in areas like housing.

In April 2022, Vermont held the largest job fair in state history in Essex Junction, with more than 150 employers and 2,000 job seekers.

KEY INCENTIVES TAXES 8.5% top corporate income tax rate #44 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 94.5% of adults 25 years of age and older graduated high school 44.4% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 2.3%

Vermont Training Program: Offers grants that 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.

Vermont Employment Growth Incentive: Offers cash payments to companies that meet milestones for job creation, payroll and capital investments. Enhancements are available for green businesses and those that create jobs in specific labor markets.

Vermont Brownfields Revitalization Fund: Offers loans and grants to private developers, nonprofits and municipalities for the remediation of brownfield sites.

EDCs Vermont Economic Development Authority veda.org Think Vermont thinkvermont.com

RIGHT TO WORK STATE No

Montpelier Alive montpelieralive.com/doing-business-in-montpelier

QUALITY OF LIFE #11

Business Resources & Development, City of Burlington burlingtonvt.gov/CEDO/BusinessDevelopment

POPULATION GROWTH 2.8% increase between 2010 and 2020

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HIGHLIGHTED PROGRAM OR INITIATIVE Vermont’s State Small Business Credit Initiative (SSBCI) program will include access to low-interest loans and early-stage venture capital investments. The program recently received an additional allocation of more than $29 million in venture capital to focus on seed fund investments for high-growth technology innovation companies. “Never before have we had such an opportunity to fund startups and early-stage capital for Vermont companies,” said Department of Economic Development Commissioner Joan Goldstein. “These investments present an enormous opportunity for venture capital in the state.”

BIG DEALS Vermont-headquartered solar companies joined forces in September 2021 in a deal where iSun acquired SunCommon for $40 million.

Tech company OnLogic announced in October 2021 an expansion of its headquarters and operations in Burlington.

Darn Tough Vermont opened a new factory and announced 50 new jobs in in Waterbury in October 2021.

Vermont Livestock Slaughter & Processing received a $1 million-plus investment in November 2022 through the first round of the Meat and Poultry Processing Expansion Program (MPPEP).

BIG COMPANIES Logic Supply Dealer.com Revision Military MyWebGrocer

C-SUITE TESTIMONIALS “We have always been proud of our roots, and Vermont has been a very supportive state to grow our business in over the past 50 years. As we diversify into other states as part of our strategic growth plan, we bring the craftsmanship and relationships that have helped us thrive.” —Jeffrey Peck, Chairman of the Board and CEO, Peck Company Holdings “These [VTP] programs deliver return on investment in the form of employee skills, satisfaction and productivity, which is a value-add for the company.” —Scott Fine, EVP, Fab-Tech

A CEO’S GUIDE TO SITE SELEC TION

Virginia “When the nation’s leading manufacturers are choosing to locate new facilities in Virginia, it demonstrates the success we are having in reinvigorating job growth and making Virginia an attractive place to do business.”

—Gov. Glenn Youngkin

TAXES 6% top corporate income tax rate #26 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 91.4% of adults 25 years of age and older graduated high school 41.8% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 2.7% RIGHT TO WORK STATE Yes QUALITY OF LIFE #7 POPULATION GROWTH 7.9% increase between 2010 and 2020

VIRGINIA IS FOR BUSINESS LOVERS

BIG DEALS

There’s a lot more to Virginia than its lush forests and mountains. Dig deeper in its urban areas and you’ll find the third-largest port on the East Coast, numerous manufacturers and plenty of Fortune 500 companies.

IT and R&D facilities are in abundance here, taking advantage of the favorable business climate while also being near the movers and shakers in the District of Columbia. LEGO Group, Hitachi and IperionX Limited have announced projects here in the past year, and in May Boeing said it would relocate its headquarters from Chicago to Arlington.

LEGO Group announced in June 2022 it will invest $1 billion in a manufacturing plant and create 1,760 jobs in Chesterfield County.

KEY INCENTIVES Green Job Creation Tax Credit: Offers a $500 credit against the Virginia individual or corporate income tax for each new green job paying an annual salary of at least $50,000.

Port Volume Increase Tax Credit: Offers benefits to manufacturing, distribution, agriculture, mineral and gas companies that utilize Virginia’s port facilities.

DroneUp announced in August 2022 a $7 million expansion and 655 new jobs in Virginia Beach.

IperionX Limited announced in September 2022 a $82 million facility and 108 jobs in Halifax County.

Enabled Intelligence announced in September 2022 it will expand its headquarters and create 117 jobs in Fairfax County.

Pangiam announced in September 2022 it will establish its global headquarters and create 201 jobs in Fairfax County.

Aerospace giant Boeing announced in May 2022 that it would move its global headquarters from Chicago to Arlington.

Hitachi Energy announced in October 2022 a $37 million expansion and 165 new jobs in Halifax County.

EDCs

21 Fortune 500 companies headquartered in the state, including: Freddie Mac General Dynamics Northrop Grumman Capital One Financial Performance Food Group Dollar Tree Altria Group CarMax DXC Technology Dominion Energy

Virginia Economic Development Partnership vedp.org

C-SUITE TESTIMONIALS

The Major Eligible Employer Grant Program (MEE): A discretionary program used to encourage major basic employers to invest in Virginia and provide a significant number of stable employment opportunities Major Business Facility Job Tax Credit: Qualified companies locating or expanding in Virginia are eligible to receive a $1,000 income tax credit for each new fulltime job.

Richmond Economic and Community Development rva.gov/economic-development Greater Richmond Partnership grpva.com Virginia Beach Economic Development yesvirginiabeach.com Norfolk Department of Economic Development norfolkdevelopment.com

HIGHLIGHTED PROGRAM OR INITIATIVE Energy remains a critical priority in Virginia. In October 2022, Gov. Glenn Youngkin announced a proposal for adding $10 million in the upcoming budget to create the Virginia Power Innovation Fund for research and development of innovative energy technologies, including nuclear, hydrogen, carbon capture and utilization and battery storage.

“We are excited to build on our foundation here in Northern Virginia. The region makes strategic sense for our global headquarters, given its proximity to our customers and stakeholders and its access to world-class engineering and technical talent.” —Dave Calhoun, CEO, Boeing “We were impressed with all that Virginia has to offer, from access to a skilled workforce, support for high-quality manufacturers and great transport links.

We appreciate support for our ambition to build a carbon-neutral-run facility and construct a solar park and are looking forward to building a great team with support from the Virginia Talent Accelerator Program.”

—Niels B. Christiansen, CEO, LEGO Group “We are excited to expand our operations here in Virginia. Our Fairfax County home is close to our federal customers, and we are able to draw on the highly qualified Virginia workforce of high-tech, neurodiverse professionals and military veterans.” —Peter Kant, CEO, Enabled Intelligence

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Washington “As the world turns the corner on the pandemic, Washington State is well positioned to lead the way into the future in key industry sectors. Our economic development strategy supports innovation and equity to drive growth. Small businesses and entrepreneurs from diverse communities throughout the state are the foundation—working on the ‘next big thing’ that will create a cleaner environment, lead to new scientific discoveries, improve global health and provide economic opportunities for all or our residents.”

—Gov. Jay Inslee

TAXES No corporate income tax #28 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 92.3% of adults 25 years of age and older graduated high school 39% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 3.8% RIGHT TO WORK STATE No QUALITY OF LIFE #1 POPULATION GROWTH 14.6% increase between 2010 and 2020

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SEARCHING FOR TECH AND STARTUPS

BIG DEALS

Washington state finally lifted its last Covid emergency declarations in September 2022. The state continues to maintain momentum as a hub for tech and startups. In 2020 more than 15 companies announced initial public offerings, compared to one in the previous four years. As those companies expand with new investments, home-grown giants like Amazon, Expedia and Microsoft continue to add jobs.

Google also opened the first phase of its Kirkland Urban campus in April 2022. When completed, it will make greater Seattle one of the company’s biggest engineering hubs.

India-based life sciences company Jubilant HollisterStier broke ground on a $92 million expansion in Spokane in late 2021.

KEY INCENTIVES CERB: The Community Empowerment Revitalization Board provides low-cost financing for public facility improvements, such as access road maintenance and sewer and water line extensions, to foster private development.

Job Skills Program: Offers a competitive grant for an average of $1,200 per trainee to help employers partner with community and technical colleges on training solutions.

Sales and Use Tax Exemption on Equipment: Offers a sales and use tax exemption for machinery and equipment used directly in a manufacturing or R&D operation for savings that amounts to 6.5% plus the local rate.

B&O Tax Credit: Offers a one-time credit of up to $4,000 per employee when companies hire new manufacturing or R&D employees in rural counties.

Sales and Use Tax Deferral for Clean Tech Projects: Offers a deferral and possible reduction of up to 100% of sales and use taxes for eligible investments in clean technology projects and renewable energy storage, as well as production facilities for clean fuel and hydrogen.

EDCs Washington State Department of Commerce choosewashingtonstate.com/about-us Seattle Office of Economic Development seattle.ecdev.org Thurston Economic Development Council thurstonedc.com Advantage Spokane advantagespokane.com Make It Tacoma makeittacoma.com

HIGHLIGHTED PROGRAM OR INITIATIVE Designed to help industry clusters grow, the state’s Innovation Cluster Accelerator Program (ICAP) is a multi-year development program that connects entrepreneurs, industry, educators and researchers in nine industry innovation clusters.

Current clusters focus on 5G, aerospace, clean technology, hydrogen and renewable e-fuels, bioscience, autonomous vehicles and quantum computing.

Blue Origin is expanding in Renton where it leased an additional 308,000 square feet of commercial space. The company currently employs 3,300 in the region.

Solar panel manufacturer Silfab announced it will double its manufacturing capacity and create 400 jobs at its Burlington facility.

Google opened the first phase of its Kirkland Urban campus in April 2022. It will have 760,000 square feet of office space, making greater Seattle one of the company’s biggest engineering hubs in the world. The company currently employs more than 7,200 in the state.

BIG COMPANIES 10 Fortune 500 companies headquartered in the state: Amazon Costco Wholesale Microsoft Starbucks Paccar Expeditors Nordstrom Weyerhaeuser Expedia Group Willow Group

C-SUITE TESTIMONIALS “Paine Field was an obvious choice for us. Working from this location, ZeroAvia is well positioned among one of the most talented aerospace and clean energy communities worldwide. We conducted a national search to locate our third R&D site. Given the age of the facility we will be occupying, this grant closed a gap related to facility construction and we are excited to engage in this community.”

—Val Miftakhov, CEO and Founder, ZeroAvia “Washington State was a natural choice for Corvus due to the presence of a strong maritime cluster, the state’s focus on green shipping and the proximity to our large team near Vancouver, Canada. We know that a U.S. presence and close collaboration with shipyards, shipowners, Washington Maritime Blue and other suppliers and service providers foster innovation across the entire industry and build valuable competence. This will work as an accelerator to create local green jobs.”

—Geir Bjørkeli, CEO, Corvus Energy

A CEO’S GUIDE TO SITE SELEC TION

West Virginia “I’ve said it before, and I’ll say it again, you’ll never find more dedicated, hardworking and productive employees than those in West Virginia....

I couldn’t be happier that all kinds of world-class businesses like Papier-Mettler are setting up shop or expanding operations in West Virginia.

Our rocket ship ride that I promised is continuing every day, and all West Virginians should be incredibly proud.”

—Gov. Jim Justice

TAXES 6.5% top corporate income tax rate #20 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 88.8% of adults 25 years of age and older graduated high school 24.1% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 4% RIGHT TO WORK STATE Yes QUALITY OF LIFE #47 POPULATION GROWTH 3.2% decrease between 2010 and 2020

MOVING UP IN THE MOUNTAIN STATE

BIG DEALS

Over the past decade, the Mountain State has elevated itself from the economic woes of the declining coal industry to a state on the forefront of economic development. That momentum has also helped the state recover in the wake of the Covid-19 pandemic.

Between January 2021 and late 2022, the Office of Economic Development reported at least 18 significant announcements, representing more than $3.6 billion in investments and more than 3,800 created and retained jobs. Several international companies have expanded here in the past year, including Papier-Mettler (Germany) and Fanti (Italy).

German packaging manufacturer Papier-Mettler announced in June 2022 a $48 million plant and 100 new jobs in Moorefield.

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: Reduces property taxes by up to 95% for certain sectors, including chemicals, polymer metals, data centers and aviation.

Manufacturing Investment Tax Credit: Offers a credit of up to 60% of the corporate net income tax base on qualified investments in an eligible manufacturing facility.

Governor’s Guaranteed Workforce Program: Offers up to $2,000 per employee for companies for training and technical assistance to perform training strategies.

EDCs West Virginia Economic Development westvirginia.gov Charleston Area Alliance charlestonareaalliance.org Huntington Area Development Council hadco.org

Clearway Energy Group announced in May 2022 it reached commercial operations at its Black Rock wind farm, which spans Grant and Mineral counties.

Metal alloy manufacturer Veloxint announced in April 2022 a new location and 200 new jobs in Triadelphia.

Italian manufacturer Fanti USA announced in April 2022 a new production facility in Weirton. The $30 million project will create 40 jobs.

BIG COMPANIES CAMC Health System CIty Holding Company United Bankshares WesBanco West Virginia United Health System

C-SUITE TESTIMONIALS “The USA is one of the largest growth markets for Papier-Mettler. That’s why we want to focus our energy on U.S. expansion. We are convinced that the new location will not only create numerous advantages for us but also for the local economy, as well as the job market.”

—Michael Mettler, CEO, Papier-Mettler “My father, Giorgio Fanti, founder of Fanti Group, visited this area in the United States for the first time in the ’70s to see how U.S. manufacturers worked and to see if it was possible to buy some steel.... Now, after 50 years, I am glad to achieve my father’s American dream by starting a production plant in the United States. Our U.S. entity will be established in Weirton, West Virginia, and it will be legally owned by our main company, located in Bologna, Italy, that has the name of my father.”

—Stefano Fanti, Chairman, Fanti Packaging

Morgantown Area Partnership morgantownpartnership.com/economic-development

HIGHLIGHTED PROGRAM OR INITIATIVE The Resilient West Virginia coalition is a group of state agencies and organizations working to build momentum in securing the future for Appalachia. It aims to create a national security and economic security growth fluster in the state’s southern and central energy communities, capitalizing on the skills of many of the region’s veterans to support the sector.

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A CEO’S GUIDE TO SITE SELEC TION

Wisconsin “Whether it’s investing in the well-being of our state’s small businesses, including through our state’s small business recovery grant programs, or supporting the growth of organizations that contribute to the success of some of Wisconsin’s leading and largest industries, we continue to see the value of investing in Wisconsin ingenuity and innovation.”

—Gov. Tony Evers

BIOTECH IN THE BADGER STATE

BIG DEALS

Biotech remains a bright spot in the Badger State.

BioForward Wisconsin reported in its 2022 Industry Landscape and Economic Impact Report that the biohealth industry grew by 10.6% between 2018 and 2021, making it one of the state’s top growing sectors. In 2021, the industry generated a direct economic output of nearly $19 billion and nearly $32 billion in total economic impact. Wisconsin biohealth companies also received VC and angel investments of more than $191 million, a record high and an increase of 49% over the last three years. There are currently more than 1,700 biotech companies in the state, and EdiGene, Exact Sciences, and Arrowhead Pharmaceuticals have announced projects here in the past year.

Exact Sciences announced in January 2022 a $350 million expansion and more than 1,300 jobs in Madison.

KEY INCENTIVES Business Development Tax Credit Program: Offers a tax credit for businesses locating in or relocating to the state that increase its net employment each year.

TAXES 7.9% top corporate income tax rate

Diverse Business Development Program: Designed to support minority, women, LGBT and veteran business development through direct assistance to nonprofit organizations in Wisconsin.

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

ExporTech™ Program: Offers customized international growth plans and assistance to help small and midsized companies go to market with exports.

EDUCATION 93.3% of adults 25 years of age and older graduated high school 32.5% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 3.3% RIGHT TO WORK STATE Yes QUALITY OF LIFE #8 POPULATION GROWTH 3.6% increase between 2010 and 2020

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Wisconsin Investment Pilot Program: Offers up to $100,000 in direct financial assistance to businesses certified by WEDC as Qualified New Business Ventures (QNBV).

EDCs Wisconsin Economic Development Corporation wedc.org Madison Region Economic Partnership madisonregion.org Milwaukee 7Economic Development Partnership mke7.com Greater Green Bay Chamber greatergbc.org

HIGHLIGHTED PROGRAM OR INITIATIVE The International Market Access Grant reimburses companies for specific expenses associated with an export project that will help to grow their presence in an international market. Companies can get up to $10,000 per annual application, limited to three total grants per company. For companies that have completed the ExporTech Program, up to $25,000 per annual application is available.

Milwaukee Tool announced in May 2022 plans to invest $206 million at nine locations and create 1,000 jobs.

Whisker announced in July 2022 a $10.7 million expansion that will create 150 jobs in Juneau over the next two years.

Octopi Brewing announced in September 2022 a $62 million expansion that will create 150 jobs in the next five years.

Quarra Stone broke ground in September 2022 on a world headquarters in Sun Prairie that will create 34 jobs.

Ghana-based Niche Cocoa announced in October 2022 it will build its first North American manufacturing facility and create 30 new jobs in Franklin.

BIG COMPANIES 8 Fortune 500 companies headquartered in the state: Northwestern Mutual ManpowerGroup Kohl’s Fiserv American Family Insurance WEC Energy Group OshKosh B'gosh Rockwell Automation

C-SUITE TESTIMONIALS “We have had a productive and mutually beneficial relationship with the local biotech community and broader business community in the greater Madison, Wisconsin area for many years. Arrowhead is excited to continue our partnership with Wisconsin and is thankful to the city of Verona for providing us with a $16 million tax increment financing award and the WEDC for providing us with $2.5 million in refundable tax credits. These incentives are a great example of public-private partnerships that support continued investment in activities that generate new jobs in the region.” —Christopher Anzalone, President and CEO, Arrowhead “Simply put, Formlabs makes hardware to empower anyone to make anything, so we are thrilled to build a team in the original ‘Machine Shop of the World.’

Milwaukee has a deep talent pool of sales and service experts, engineers and other professionals we want on our team, and the region is home to many of our current and future customers.” —Luke Winston, Chief Business Officer, Formlabs “Our desire to grow our U.S. operations was already something we were confident in. The incentives from WEDC and the support we got from the community, with regard to our ability to add more land and continue growing in the city we were already in, reassured us that we’re in the right place and that our investment deserves to stay in Juneau.” —Jacob Zuppke, President and CEO, Whisker

A CEO’S GUIDE TO SITE SELEC TION

Wyoming “Wyoming has it all: the best wind, solar, gas, coal, nuclear and the ability to store 50 years’ worth of our nation's total carbon emissions….

Innovation, not regulation, is our way forward to give our nation the energy it requires and simultaneously solve the world’s climate concerns.”

—Gov. Mark Gordon

TAXES No corporate income tax rate #1 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 93.6% of adults 25 years of age and older have graduated high school 29.2% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 3.5%

INNOVATION, NOT REGULATION

BIG DEALS

Wyoming is finding new ways to drive economic growth and to address carbon emissions. The state’s approach of looking to “innovation, not regulation” is creating new opportunities in carbon capture and adopting its resources for a decarbonized economy. An “all-of-the-above” energy strategy means simultaneously championing extraction industries while dedicating time, energy and resources to new sources like nuclear, hydrogen, carbon capture and wind power.

TerraPower announced in November 2021 it will build a Natrium nuclear reactor demonstration project in Kemmerer.

KEY INCENTIVES No corporate or personal state income tax. No inventory tax, franchise tax or value added tax.

Workforce Development Training Fund: Offers $4,000 to $5,000 grants 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 permits, which can represent savings of $500,000 and 18 months of new projects.

Business Ready Community Infrastructure Program: Offers financing in grants or low-interest loans for publicly owned infrastructure that serves the needs of businesses and promotes economic development.

Financial Technology Sandbox: Give the Wyoming Secretary of State and the Wyoming Banking Commissioner the authority to waive specific statutes or rules to allow for the testing of innovative financial products or services.

EDCs Wyoming Business Council wyomingbusiness.org

RIGHT TO WORK STATE Yes

Cheyenne LEADS cheyenneleads.org

QUALITY OF LIFE #35

Greater Cheyenne Chamber of Commerce cheyennechamber.org/economic-development

POPULATION GROWTH 2.3% increase between 2010 and 2020

Advance Casper advancecasper.com

HIGHLIGHTED PROGRAM OR INITIATIVE Legislation passed in 2022 authorizes the Wyoming Business Council to issue revenue bonds for agricultural processing projects and to partner with private lenders to provide business succession loans of up to $500,000.

The state also offers matching funds for federal Small Business Innovation Research (SBIR) Phases 1 and 2 awards. To date, the $3.5 million in awards have leveraged $11.5 million in federal R&D funding.

Eagle Claw Fishing Tackle announced in December 2021 a new manufacturing plant and 150 jobs in Cheyenne.

Kel-Tec CNC Industries announced in July 2022 an expansion of its manufacturing operations in Rock Springs.

CarbonCapture and Frontier Carbon Solutions announced in September 2022 Project Bison. By 2030, the project is expected to capture 5M metric tons of CO2 per year.

Outdoor equipment manufacturer Kifaru completed in August 2022 a move from Colorado to Riverton. It plans to add another 200 jobs.

Aspen Mountain Hyperscale White Box is constructing a data center near Evanston that will be completed in 2023.

BIG COMPANIES Kennon Products Microsoft ExxonMobil Emit Technologies

CEO TESTIMONIALS “This is a milestone for Kel-Tec CNC Industries. While steady expansion isn’t anything new to us, this is our first expansion into another state, and we couldn’t be more excited about advancing our innovative designs and production processes in Wyoming.”

—Derek Kellgren, Director of Sales and Marketing, Kel-Tec CNC Industries “As a family-owned business, we appreciate the independent, friendly, family-oriented culture we’ve experienced in Cheyenne for both ourselves and for future generations of our family and our employees.”

—Drew McGill, Vice Chairman of the Board of Directors, Wright & McGill “The Wyoming Business Council’s Small Business Innovation Research program taught our homegrown Wyoming technology company how to search for prime opportunities within the government arena and how to construct winning proposals. When we were ready to expand operations, the Business Ready Community program funded a new facility tailored to our needs. As our company matured, guidance from the WBC helped us navigate the challenges that come with accelerating growth.” —Bob Viola, Director of Engineering, Square One Systems Design

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Washington, D.C. PROXIMITY TO FEDERAL AGENCIES AND DECISION-MAKERS

“As we stay focused on D.C.’s comeback, this is an opportunity to take a step back, engage the community and ensure our economic strategy aligns with our values and goals as a city…. This update comes at a critical moment— we’re equipped with lessons learned from the pandemic, we’re focused on the future of D.C.’s economy and we’re relentlessly committed to preserving the legacies of our residents and neighborhoods.”— —Mayor Muriel Bowser

TAXES 8.25% top corporate income tax rate #48 on the Tax Foundation’s State Business Tax Climate Index ranking EDUCATION 92.8% of adults 25 years of age and older graduated high school 63% of adults 25 years of age and older have a bachelor’s degree or higher UNEMPLOYMENT RATE 4.8% RIGHT TO WORK STATE No QUALITY OF LIFE Unranked POPULATION GROWTH 14.6% increase between 2010 and 2020

While much of the growth in the D.C. region officially happens across the Potomac River in Virginia, the District attracts companies seeking talent and proximity to federal agencies and decision-makers. In May 2022, Boeing announced it will mov its headquarters from Chicago to the D.C. area in Arlington to be closer to key federal government officials. Competitor defense contractors like Lockheed Martin, General Dynamics and Northrop Grumman are already based there. Downtown D.C.’s central business district is still trying to return workers to offices.

In March 2022, a pandemic recovery committee on the city council approved a recommendation to explore transforming the district with more vibrant, mixed uses and to support the creation of job centers.

KEY INCENTIVES Creative and Open Space Modernization Tax Rebate: 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.

Alarm.com announced in February 2022 an expansion and 180 new jobs in Fairfax County.

Technology services company Easy Dynamics Corporation announced in March 2022 an expansion and 61 new jobs in Fairfax County.

Boeing announced in May 2022 it will relocate its headquarters from Chicago to Arlington and also establish a research and technology hub in the city.

Commodities exchange company Nodal Exchange announced in June 2022 it will expand its headquarters in Fairfax County.

Emerging technology company Pangiam announced in September 2022 it will establish its global headquarters and create 201 new jobs in Fairfax County.

BIG COMPANIES

Business/Professional/Occupational License Tax Exemption (Fairfax County, Virginia): Offers exclusions and adjustments to BPOL taxes for software development companies and government computer hardware and software sellers.

3 Fortune 500 companies headquartered in Washington, D.C.: Fannie Mae Danaher Carlyle Group

Qualified High-Tech Companies: 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.

11 Fortune 500 companies headquartered in Fairfax County, Virginia, including: Freddie Mac General Dynamics Northrop Grumman Capital One Financial

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

EDCs Deputy Mayor for Planning and Economic Development Economic Intelligence Dashboard open.dc.gov/economic-intelligence Council of the District of Columbia Committee on Business and Economic Development dccouncil.gov/committees/business-economic-development Washington D.C. Economic Partnership wdcep.com SustainableDC sustainable.dc.gov/economy

HIGHLIGHTED PROGRAM OR INITIATIVE In October 2022, D.C. launched the first ever Mobility Innovation District (MID). The multi-year mobility project will improve equitable access for residents and visitors with a global innovation hub to show how mobility innovation can make a city more equitable, sustainable, safe and prosperous.

72 2023 CEO GUIDE TO SITE SELECTION

BIG DEALS Experience management software company Qualtrics announced in December 2021 an expansion and 400 new jobs in Fairfax County.

C-SUITE TESTIMONIALS “We are thrilled to be opening in Washington, D.C. and investing in Wards 7 & 8 with our beautiful store and incredible team…we look forward to bringing our approach to more areas of D.C., in Columbia Heights and Tenleytown, in the future.” —Lars-Oliver Hamann, US Regional Vice President, Lidl “We chose Fairfax County as our corporate headquarters due to the proximity and access to federal agencies, industry partners and top talent. Northern Virginia is home to the second-largest cybersecurity workforce in the U.S., and the state’s attractive business climate makes the area a fantastic location for technology companies of all sizes.” —Poupak Afshar, CEO, Easy Dynamics “Alarm.com, which has office locations in several other states, chose to make this investment in Virginia due to Northern Virginia’s strong workforce, including its high concentration of STEM workers, numerous higher education institutions and desirable quality of life.” —Victoria Schillinger, Vice President of Human Resources, Alarm.com

CH I

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EXECUT F E

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NE

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Find out how to become a member of the CEO100 today and what it can do for you.

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Kentucky has approximately 600 distribution and logistics facilities, employing nearly people..

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