Chair Message

BY MARIE HOLLIDAY, CPA

One of the highlights of this issue is the Coolest Thing Made in Delaware contest winner. In its second year, this award highlights the interesting and innovative products made in our state. Agilent Technologies won this year’s award with their submission of the Resolve handheld raman spectrometer, which can detect hazardous substances through barriers, making it extremely useful for first responders’ safety. Really impressive submissions like Sumuri’s TALINO Forensic Workstations, spacesuits made by ILC Dover, and 60-Minute IPA from Dogfish Head Brewery were a few of the other products submitted for the competition.

These manufacturing companies are building on the history of innovation that Delaware is known for. Our state has been extremely fortunate to have other manufacturing companies like DuPont, Chemours, AstraZeneca, W.L. Gore, Mountaire Farms, and Siemens Healthineers as employers. The industry employs more than 26,500 of our citizens with high-paying, stable jobs that support families and our communities.

One thing we learned during the pandemic was that our country must be more self-reliant. Shortages of personal protective equipment (PPE) for our health care workers, chips for computers and new cars, and daily goods such as toilet paper, diapers, and baby formula were extremely difficult to purchase due to our reliance on overseas manufacturers. We need to be prepared in the future to prevent these disruptions in the supply chain.

The recent passage of the One Big Beautiful Bill provides economic incentives for expanding manufacturing domestically. For example, domestic research and development (R&D) costs can once again be expensed immediately rather than amortized over several years. Some smaller manufacturers can even apply this R&D benefit retroactively. In addition, companies that build new manufacturing or production facilities can fully deduct construction costs up front. These tax provisions make it more appealing for manufacturers to bring production back to the U.S.

My hope is that Delaware can attract these manufacturing companies to locate their facilities in our state. Our state offers quite a few attractive features that would enhance our consideration as an ideal location, namely being conveniently located near major markets like Washington, D.C., Baltimore, Philadelphia, and New York City. These markets serve more than 50 million customers within a 250-mile radius, and we have easy access to multiple transportation options.

The impact on Delaware’s economy would be significant. More manufacturing facilities would create a ripple effect across industries. Construction companies would see increased demand and hire more workers. Support services, including transportation and logistics, would be essential to move goods efficiently. And the jobs created wouldn’t be limited to college graduates; the skilled trades would also see benefits as well. Attracting more manufacturing to Delaware would contribute to a stronger, more resilient, and more prosperous economy and, ultimately, would be a win-win for the state and its residents.

Marie Holliday, CPA, is the Mid-Atlantic regional managing partner at the The Bonadio Group.