February 2, 2024 - Southern Business & Development

Biden hails robust jobs market as proof US economy is ‘strongest in the world’

Posted on February 2, 2024February 2, 2024 by Michael Randle

Joe Biden declared the strong jobs figures released on Friday as proof that “America’s economy is the strongest in the world”.

The US jobs market defied fears of a downturn again, when figures were released on growth in January, with employers adding 353,000 new jobs over the month, the labor department announced.

The jobs market has remained strong despite an aggressive series of interest rate rises by the Federal Reserve, aimed at cooling the economy and bringing down the rate of inflation. In January the unemployment rate was 3.7%, close to a 50-year low.

Economists had been predicting that the US would add less than 200,000 jobs over the month. The labor department also revised its job gains for December up from an initial estimate of 216,000 to 333,000.

The news was another boost to the US president, whose polling on the economy has remained weak despite the robust jobs market. Hiring was broad-based with gains in healthcare, government, professional and business services and retail.

Biden pointed out that the US has added almost 15m jobs since he was sworn in in January 2021.

The Guardian

Japanese bid for U.S. Steel challenges Biden’s approach to global economy

Posted on February 2, 2024February 2, 2024 by Michael Randle

The prospect of a Japanese corporation buying U.S. Steel — whose products shaped American landmarks like the Empire State Building — is stirring an election-year debate over just how far the United States should go in embracing economic nationalism.

When Nippon Steel in December offered to buy the Pittsburgh-based steelmaker for $14.9 billion, investors cheered. But there was vocal opposition from the United Steelworkers union, which complained it had not been consulted, and prominent lawmakers in both parties, who objected to a foreign buyer swallowing a venerable American company. The loss of independence, they said, could threaten national security by leaving the United States short of steel in a crisis.

“I’m flat-out opposed to it,” Sen. J.D. Vance (R-Ohio) said in an interview. “And it’s not just this transaction I’m worried about. The precedent really matters.”

The Washington Post

Boeing was once known for safety and engineering. But critics say an emphasis on profits changed that

Posted on February 2, 2024February 2, 2024 by Michael Randle

Part of the fuselage blowing off shortly after takeoff, leaving a gaping hole in the plane, and phones and clothing ripped away from terrified passengers. Investigations revealing sloppy work, including loose or missing bolts, instances of tools, trash and even empty tequila bottles left inside planes built for government clients. Worldwide groundings. Halts to deliveries due to quality issues.

And, by far, the most serious problem – two fatal crashes leaving 346 people dead.

Boeing is back in the headlines for all the wrong reasons again after the Alaska Airlines 737 Max 9 incident. The National Safety Transportation Board, which is investigating, is expected to release its preliminary findings soon.

That’s the Boeing of today and the last five years. But it wasn’t always that way.

It wasn’t that long ago that Boeing’s reputation was that of a staid industrial giant, known for building the safest, most advanced planes in the sky. It helped introduce the world to commercial jet travel.

Pilots and others in the industry, as well as members of the flying public, summed up their confidence in the company with the expression, “If it’s not Boeing, I’m not going.” The company still sells coffee cups and t-shirts with that slogan.

CNN

Elon Musk Wants to Move Tesla’s Incorporation From Delaware to Texas

Posted on February 2, 2024February 2, 2024 by Michael Randle

Elon Musk wants to go all in on Texas.

The Tesla chief executive said the company would hold a shareholder vote to decide whether to incorporate in the Lone Star State after a Delaware court ordered him to give up a compensation package valued at $55.8 billion.

“The public vote is unequivocally in favor of Texas,” Musk said Thursday in a post on X. “Tesla will move immediately to hold a shareholder vote,” he said after conducting a poll on the platform.

The court’s decision, issued Tuesday in the Delaware Court of Chancery, called into question how Tesla’s board plans to compensate Musk. The court struck down Musk’s multibillion-dollar pay package after finding the process for securing its approval “deeply flawed.” It was a major setback for the CEO of the world’s most valuable automaker.

The Wall Street Journal

Elon Musk’s X is hiring 100 people in Austin for a new content moderation center

Posted on February 2, 2024February 2, 2024 by Michael Randle

For all of Elon Musk’s activity in Austin, his newest company, X, has been mostly left off the local map.

That’s soon to change.

Late last week, the company formerly known as Twitter said it will build a “Trust and Safety center of excellence” in Austin.

Bloomberg later reported that it plans to hire around 100 in-house agents who, it appears, will be focused on content moderation. It’s unclear when the new center will be up and running and where it will be located.

It’s part of what X leaders have said is a broader effort to curb child sexual exploitation. In the Jan. 26 blog post, the X team said they want to make the platform “inhospitable for actors who seek to exploit minors.”

Austin Business Journal

Homegrown battery technology company opens plant in New Orleans East

Posted on February 2, 2024February 2, 2024 by Michael Randle

ADVANO, which has developed a proprietary silicon technology for lithium-ion batteries, celebrated the opening of its new materials pilot plant at the New Orleans Regional Business Park in New Orleans East, across the street from NASA’s Michoud Assembly Center.

On January 30, representatives from GNO Inc., City of New Orleans, and New Orleans Business Alliance attended a ribbon-cutting opening of the facility, which will increase the ability for ADVANO to deliver ton-scale volumes of its proprietary technology, REALSi, and enable the New Orleans-based company to enter electric vehicle qualification programs.

The New Orleans Regional Business Park has 7,000 acres, access to Highway 90, I-510, and I-10, and is near six Class One Railroads and the New Orleans International Airport.

New Orleans City Business

CoStar nears deal to move headquarters from D.C. to Northern Virginia

Posted on February 2, 2024February 1, 2024 by Michael Randle

CoStar Group Inc. (NASDAQ: CSGP) is expected to move its headquarters to Rosslyn, consolidating its presence in Virginia and dealing another blow to downtown D.C.

The real estate data giant, which has steadily grown its Virginia operations — most notably in Richmond — even while maintaining its official headquarters in the District, is near a deal to acquire the Central Place office tower in Arlington from JBG Smith Properties Inc. (NYSE: JBGS), according to sources familiar with those negotiations.

On Jan. 12, Virginia’s State Corporation Commission accepted an application for a certificate of registration to amend the name of a CoStar entity formed in 2020 from CSGP Holdings LLC to CoStar Central Place HQ LLC. That document was signed by Scott Wheeler, CoStar’s chief financial officer.

The expected move represents another big economic development win for Virginia and another loss for D.C., on the heels of Monumental Sports & Entertainment’s proposed relocation to Alexandria and Fannie Mae confirming it will cut its lease short at Midtown Center by five years — the mortgage giant has a major office in Reston and the option to relocate its headquarters there.

Washington Business Journal

Gov. Beshear Joins North American Stainless To Celebrate $244 Million Carroll County Expansion Creating 70 Full-Time Jobs

Posted on February 2, 2024March 6, 2024 by Michael Randle

GHENT, Ky. (Jan. 31, 2024) – Today, Gov. Andy Beshear joined local officials and leadership from North American Stainless (NAS) and its parent company, Spain-based Acerinox, to celebrate the one-year mark since the company announced a $244 million expansion at its Carroll County facility, a project creating 70 full-time jobs.

“Metals is an ever-growing sector in Kentucky and one that touches every other industry,” said Gov. Beshear. “North American Stainless is the largest producer of stainless steel in the United States, and I’m excited to join them today in celebrating this great milestone. I want to thank NAS leadership for continuing to put their faith in the commonwealth and our talented workforce. The company has grown at an incredible rate, and I look forward to seeing that growth continue in the coming years.”

The expansion to the company’s 4.4 million-square-foot Ghent facility consists of a new cold rolling mill, new roll grinders, extensive upgrades of anneal and pickling lines to support the new rolling mill, a new temper mill and the expansion of the melt shop building. The expansion presents NAS with the opportunity to counter subsidized imports. The project also increases NAS’ annual total production capacity.

All major equipment for the expansion – including the melt shop crane, cold rolling mill, roll grinders and skin pass mill – have been contracted with the equipment in fabrication.

The building foundation construction is underway for the melt shop and excavation for the cold rolling mill foundations is underway. Site preparation for the skin pass mill has also been completed.

“We are thrilled to celebrate this expansion of our facility, a testament to our commitment to sustainability, economic growth in Kentucky and supporting our national security,” said North American Stainless CEO Cristobal Fuentes. “NAS would like to extend its gratitude to Gov. Beshear, state, federal and local officials for their partnership in making this expansion a reality. North American Stainless is proud to call Kentucky home. This expansion not only bolsters our capacity to provide consumers with sustainable, American-made stainless steel, but also positions us to compete effectively against subsidized imports of stainless steel.”

“This $244 million investment allows us to reinforce the circular economy, an area in which we serve as a role model, by adding new digital solutions to process the increased demand of stainless steel with improved productivity and efficiency,” said Acerinox CEO Bernardo Velázquez Herreros. “We are proud to invest further in our Kentucky factory North American Stainless, as it has established itself as a market leader both in the United States and across North America. At Acerinox, we are grateful to participate in the benefits of the commonwealth’s leadership and robust economic development.”

As part of the Acerinox Group of companies, NAS is a Delaware general partnership with Stainless Steel Invest Inc. as its managing general partner. NAS is situated on 1,600 acres in Carroll County. Founded in 1990, the company has become the largest fully integrated stainless steel producer in the United States and remains focused on being the leading producer of high-quality stainless steel in the Western Hemisphere.

NAS offers a full range of stainless flat including slabs, billets, plate, sheet and strip, as well as long products including wire, rods, angles and rebar. All of NAS’ production lines are located at one site, which allows the company to avoid inherent delays that are common in mills.

In 2016, NAS was awarded the Corporate Investment & Community Impact (CiCi) Award from Trade & Industry Development magazine for a $150 million expansion in Carroll County that created 36 full-time jobs.

Carroll County Judge/Executive David Wilhoite spoke on the economic impact NAS has had on the county: “North American Stainless has played a vital role in the economic growth of Carroll County over the years. Investing over $3 billion in the local community and creating over 1,500 jobs for the region, North American Stainless is a cornerstone of Carroll County and the Commonwealth of Kentucky. We are excited about the expansion and look forward to working with NAS in the future.”

Ghent Mayor Jimmy Lewellyn talked about the job creation the expansion is bringing: “The North American Stainless expansion is an excellent addition to our county and region. It will supply additional, well-paying jobs and improve our citizen’s overall quality of life.”

Carrollton Mayor Robb Adams congratulated NAS on the project: “On behalf of the city of Carrollton, I would like to congratulate North American Stainless on their upcoming expansion. Our relationship with local industries is very important to Carrollton and it continues to shape who we are as a city and community. As a community we continue to see the positive impacts of our industrial partners.”

Donny Kauffman, president of the Carroll County Chamber of Commerce, mentioned NAS’ impact on the community: “North American Stainless has proven to be a vital part of our community. The Carroll County Chamber of Commerce is excited about the new expansion and all the possibilities it brings to the business community.”

NAS’s investment and job creation build on the best four-year period for economic growth in state history.

Since the beginning of his administration, Gov. Beshear has announced more than 1,000 private-sector new-location and expansion projects totaling over $29.3 billion in announced investments, creating more than 51,800 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth’s history.

The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 and 2023 topped $26 in consecutive years for the first time.

Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky as the electric vehicle battery production capital of the United States: Ford Motor Co. and SK On’s transformative $5.8 billion, 5,000-job BlueOval SK Battery Park in Hardin County; AESC’s $2 billion, 2,000-job gigafactory project in Warren County; Toyota’s $591 million investment in Scott County; and INFAC North America’s $53 million investment in Taylor County, among others.

The Governor’s administration also secured the largest General Fund budget surplus and Rainy Day Fund, as well as the most jobs filled in state history. Last year, Kentucky set the record for the longest period with the lowest unemployment rates in state history.

Kentucky also secured rating increases from major credit rating agencies Fitch Ratings and S&P Global Ratings, and Moody’s Investors Service upgraded Kentucky’s credit outlook from stable to positive.

Site Selection magazine placed Kentucky first in the South Central region and top 5 nationally in its 2023 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.

Gov. Beshear has also announced a “Supply Kentucky” initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in January 2023 preliminarily approved an incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide tax incentives based on the company’s investment and annual job and wage targets.

Additionally, KEDFA approved NAS for tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.

In addition, NAS can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

For more information on North American Stainless, visit NorthAmericanStainless.com.

A detailed community profile for Carroll County can be viewed here.

Team Kentucky

Alabama’s labor force is growing. Here’s how much.

Posted on February 2, 2024February 1, 2024 by Michael Randle

The state’s unemployment rate was up slightly in December. But more telling figures show positive signs.

Alabama’s seasonally adjusted unemployment rate was 2.6% in December, up from 2.4% in November and roughly equal with the 2.6% recorded in the state in December 2022, Alabama Department of Labor data shows.

The U.S. unemployment rate was 3.7% in December.

Alabama’s unemployment rate has slowly risen since August when it was at a record low 2.1%. It was 2.2% in September, 2.3% in October, 2.4% in November and 2.6% in December.

Data also shows more people are looking for jobs.

During the past few months, Alabama’s labor force grew. The state’s labor force was 2,307,641 in August, and has slowly climbed each month, from 2,309,980 in September, to 2,313,224 in October, to 2,318,659 in November and finally 2,323,552 in December. Alabama’s labor force participation rate also rose in December to 57.2%, up from 57.1% in November and 56.7% in December 2022. The U.S. labor force participation rate was 62.5% in December.

Birmingham Business Journal

Atlanta-based UPS to cut 12,000 jobs as shipping volume falls and labor costs rise

Posted on February 2, 2024February 2, 2024 by Michael Randle

UPS plans to cut 12,000 jobs as demand for package delivery stagnates, executives said Tuesday. The layoffs will eliminate around 2.4 percent of UPS’s global workforce of roughly 495,000, with about 75 percent of the job reductions coming in the first half of 2024. Executives said they don’t expect those jobs to return.

“It’s a change in the way we work,” Chief Financial Officer Brian Newman said Tuesday during a conference call with analysts. “So as volume returns to the system, we don’t expect these jobs to come back. It’s changing the effective way we operate.”

UPS saw its fortunes surge early in the pandemic as online shopping became a more central part of people’s lives, but package volume has decreased since then. The company on Tuesday said package volume fell 7.4 percent in the fourth quarter, while revenue declined 7.8 percent year-over-year.

The Washington Post