$40 million in SEEDS could soon take root in Alabama, growing the state’s economic development prospects

Posted on by Michael Randle

Alabama’s economic development successes in the years to come may be due in large part to up to $40 million in SEEDS sewn this year.

The State Industrial Development Authority (SIDA) is considering 34 properties throughout the state under the new Site Evaluation and Economic Development Strategy (SEEDS) Act – part of the Game Plan economic development legislation approved last year.

Location Strategies (GLS) out of Greenville, South Carolina, to assist in the evaluation process.

The 34 properties consist of 16 being considered for SEEDS site assessment dollars and 18 for SEEDS site development dollars. A pool of $40 million in grants is available with $42 million in requests from applicants, so not all will be approved.

SIDA’s team has chosen 19 of the sites for its initial evaluation in an attempt to maximize the potential for the initial $40 million in grants. The sites are being evaluated for projects that would be capital- or labor-intensive or a blend of both.

Alabama News Center

Read More

A soft landing is in sight for NC Triad region economy, but keep a parachute handy 

Posted on by Michael Randle

The economy is not a sport, and the Triad is not a ballpark, but a sports analogy as North Carolinian as sweet potato pie can sum up the outlook for the region’s economy in 2024: The home runs light up the scoreboard, but winning a pennant depends on racking up base hits and maintaining a strong bench and bullpen.

The view from a panel assembled by the Triad Business Journal to assess the economic outlook in 2024: The region is not out of the recession woods but will probably be OK thanks to impending megasite industrial projects and a strong workforce.

Also boosting the Triad’s outlook: The region is less exposed than many to the de facto recession in office real estate and by housing prices that remain relatively affordable — with the “yes, but” that much of the affordability is increasingly away from employment centers and still out of reach of many young people of modest means.

Triad Business Journal

Read More

Disney to buy $1.5 billion stake in Cary, N.C.-based Epic Games

Posted on by Michael Randle

Walt Disney Co. announced Wednesday that it would buy a $1.5 billion stake in video game maker Epic Games and expand its relationship with the Cary-based company.

The two companies said they will collaborate on new games and entertainment in a multi-year project.

Disney and Epic have already been collaborating, including in the development of video games such as “Kingdom Hearts 3” and “Star Wars Jedi: Survivor.” They have also worked together in cinematic editing and animation for film and streaming, and in the creation of more than 15 Disney Parks attractions such as “Millennium Falcon: Smugglers Run” at Star Wars: Galaxy’s Edge.

“Disney was one of the first companies to believe in the potential of bringing their worlds together with ours in Fortnite, and they use Unreal Engine across their portfolio,” said Epic Games CEO Tim Sweeney in a statement. “Now we’re collaborating on something entirely new to build a persistent, open and interoperable ecosystem that will bring together the Disney and Fortnite communities.” Business North Carolina

Read More

Mack Trucks to expand in Virginia

Posted on by Michael Randle

RICHMOND, VA – Governor Glenn Youngkin announced that Mack Trucks, part of Swedish-based Volvo Group and one of North America’s leading producers of heavy-duty and medium-duty trucks, will invest $14.5 million to expand its Roanoke County manufacturing operation. The company will expand its current production facility by 72,000-square-feet to increase capacity for its medium-duty truck line and an emerging medium-duty electric truck line. The project will create 51 new jobs.

“Mack Trucks’ expansion further strengthens Virginia’s manufacturing industry ecosystem, which is a core focus of the Commonwealth’s economic development strategy,” said Governor Glenn Youngkin. “We are proud that Mack Trucks’ initial investment in a new Roanoke County operation four years ago has yielded a second major investment. This is truly another vote of confidence in Virginia by a global industry leader.”  

VEDP

Read More

The story behind the Troy, Alabama, distillery honoring Clyde May’s legacy

Posted on by Michael Randle

An exciting project will be completed soon in Troy, Alabama. The Conecuh Ridge Distillery, which will produce Clyde May’s whiskey, was designed by the architectural team at Luckett & Farley.

“I have been involved in the project from day one,” said Dana Zausch, the project’s distillery design manager. “I was actually hired to work on this project with my experience in distillery work.”

Based in New York, Conecuh Ridge Distillery joined Alabama Gov. Kay Ivey in 2017 to announce its plans to consolidate operations in Troy, near to where its namesake, Clyde May, once produced moonshine whiskey. The company broke ground on the project in 2022.

“We started with a brand that had no home,” Zausch said. “The brand’s roots were in Alabama so its brick-and-mortar roots also needed to be.”

The distillery, which will be located at 111 Braswell St. in Troy, includes an artisan distillery, rack houses, a bottling hub and a tasting center. Reports put the project’s costs at about $13.5 million.

Alabama News Center

Read More

New Alabama Commerce secretary recruits heavy hitters for state economic development strategic plan

Posted on by Michael Randle

Alabama Commerce Secretary Ellen McNair has been on the job for barely a month but is already at work on a strategic plan that will shape economic development in the state for years to come.

McNair, formerly the chief economic development officer at the Montgomery Area Chamber of Commerce, took the helm at the Alabama Department of Commerce the first of this year. She replaced Greg Canfield, who stepped down as Commerce secretary at the end of 2023 after 12 years in the role.

“Alabama’s been blessed with a lot of great secretaries of Commerce and (Alabama Development Office) directors, but nobody has been more prepared than you to hit the ground running,” Barker told McNair.

McNair has had to hit the ground running, because in appointing her to the role, Alabama Gov. Kay Ivey gave her a specific task.

“When I sat down with Gov. Ivey to talk to her about this position, the one thing she asked me to do was a new strategic plan,” McNair said.

The new strategic plan will guide economic development in the state for the coming years.

Under Canfield’s leadership, Commerce crafted a strategic plan, Accelerate Alabama, that was a huge success by most any measure.

“What we’re hoping to do is be much more comprehensive in this strategy, so not only identifying those targeted industries, but really looking at all facets of economic development and how they work together,” McNair said.

Alabama News Center

Read More

Alabama exports soar to record total in 2023, topping $27 billion

Posted on by Michael Randle

MONTGOMERY, Alabama — Governor Kay Ivey announced today that Alabama companies exported goods and services worth over $27.4 billion in 2023, setting a new annual record for the second consecutive year and underscoring the resilience of the state’s economy.

“The record-breaking success of our exporters extends the reach of the ‘Made in Alabama’ brand while reflecting the high level of demand for our homegrown products.”

Alabama exports went to 190 countries across the world in 2023, landing everywhere from the world’s biggest economies to tiny locations such as the Solomon Islands, Palau and Gibraltar, according to Commerce data.

The top destinations for Alabama exports last year were:

  1. Germany: $5.1 billion (up 17%)
  2. Canada: $3.9 billion (down 2%)
  3. China: $3.8 billion (up 15%)
  4. Mexico: $3.2 billion (up 16%)
  5. South Korea: $1.2 billion (up 15%)

Other leading destinations for Alabama exports in 2023 were Japan, Brazil, Poland, India and Saudi Arabia, Commerce data show.

“This second consecutive record year for exports really highlights the fact that companies across Alabama continue to provide top-quality goods and services that are sought by customers worldwide,” said Ellen McNair, Secretary of the Alabama Department of Commerce.

“Looking forward, the potential for greater export growth is there, and we are already exploring new and expanding markets for Alabama companies.”

POWERING GAINS

“Growth in exports means growth in our economy.” 

Overseas shipments of motor vehicles powered the surge in Alabama exports in 2023, reaching a record annual total of $11.5 billion, a gain of nearly 28% from the prior year. Germany, China and Canada were the leading destinations for Alabama automobiles, Commerce data show.

Overall, transportation equipment, which include motor vehicles, auto parts, ships and aerospace products, remained Alabama’s No. 1 export category, totaling $14.8 billion. Notably, exports of aerospace products and parts topped $2.1 billion last year, a rise of 23% from the previous year.

Other categories registering over $1 billion in exports during 2023 were minerals and ores ($2.2 billion), chemicals ($2.2 billion) and primary metals ($1.8 billion), according to Commerce data.

“It’s really rewarding to see the hard work of our Alabama companies,” said Christina Stimpson, director of Commerce’s Office of International Trade. “Their dedication, despite geopolitical challenges, is what has allowed us to see a second year of record-breaking success. When our companies find opportunities overseas, it creates a real impact in strengthening our local communities.

“Growth in exports means growth in our economy,” she added.

Commerce’s Office of International Trade offers resources to help Alabama companies enter profitable new overseas markets through trade and business development missions, training, foreign-market information, and international contacts.

The office is a partner in Export Alabama, a seamless network of international trade agencies that share the fundamental objective of helping Alabama companies expand their business internationally.

The value of last year’s exports rose 6% from the previous year’s total of $25.5 billion, according to data from the Alabama Department of Commerce. Compared to 2020, when international trade was disrupted by the pandemic, the value of Alabama’s exports has jumped almost 43%.

Last year’s record export activity was driven by rising overseas shipments of Alabama-made vehicles, aerospace parts, minerals and metals, Commerce data indicate.

“Exporting acts as a fundamental economic pillar that supports growth in Alabama, sparking both new investment and job creation here at home,” Governor Ivey said.

Alabama Department of Commerce

Read More

Gov. Beshear: Bosch Berries To Locate New Agri-Business in Pulaski County With $49.5 Million Investment Creating 28 Full-Time Jobs

Posted on by Michael Randle

FRANKFORT, Ky. (Feb. 12, 2024) – Today, Gov. Andy Beshear announced exciting momentum within the state’s agritech sector as Bosch Berries, an international grower and distributor of bell peppers, blackberries and strawberries, will be locating a new greenhouse operation in Somerset, investing nearly $50 million and creating 28 full-time Kentucky jobs.

“The growth within Kentucky’s agritech industry has played a key role in the state’s continued economic momentum and prosperity,” Gov. Beshear said. “Bosch Berries’ plan to locate its first location in the United States right here in the commonwealth speaks volumes about what our state has to offer. This is an incredible investment for southcentral Kentucky and the Pulaski County community, and I look forward to a long, successful partnership.”

Bosch Berries has acquired the previously established AppHarvest facility in Somerset to locate the company’s first greenhouse operation in the United States. The existing greenhouse infrastructure will allow the company to enhance the growing environment to maximize production capacity, implement new technologies to optimize growing efficiencies, reduce waste and gain access to the U.S. market. The existing greenhouse, which has been operational since November 2022, is over 30 acres and capable of growing approximately 1 million strawberry plants at a time. This strategic initiative by Bosch Berries aligns with the company’s continued commitment to sustainable agriculture and economic growth and will serve as a steppingstone for future Bosch Berries’ greenhouse operations in the United States.

“We are thrilled with the acquisition of the Somerset facility and to become a part of the Somerset community,” said Tijmen and Wouter van den Bosch, co-directors of Bosch Berries. “With some technical changes we have planned for this summer and introducing the best practices we have built through 90 years of greenhouse experience; we will make it one of the most successful greenhouses of its kind. We want to thank all employees and partners who share our belief in better berries, which are tasty, fresh, clean, sustainable and always available. Somerset deserves better berries; Kentucky deserves better berries, and the United States deserves better berries. Be on the lookout in your local grocery store for hydroponically grown strawberries.”

Based out of the Netherlands, Bosch Berries is a sixth generation family farm operation founded in 1854 that specializes in growing and distributing bell peppers, blackberries and strawberries. The company has been involved with greenhouse cultivation since the 1930s and in 2017, ventured into greenhouse berry production, focusing on the production of delicious, year-round blackberries. Today, the company operates two greenhouses and looks forward to entering the U.S. market and growing the North American berry industry.

Pulaski County Judge/Executive Marshall Todd is excited to see a company like Bosch Berries locate in the community: “When life hands you berries, you make the best of the situation. And in the case of Bosch Berries, Pulaski County welcomes them and is very appreciative of their willingness to acquire the property formerly known as AppHarvest. We hope that they will prosper in their new home and grow not only locally sourced products, but also community relationships we can cultivate for generations to come.”

Somerset Mayor Alan Keck expressed his excitement for Bosch Berries bringing their operation to Pulaski County: “Our community is excited and appreciative of Bosch Berries for their commitment to the Somerset facility. I firmly believe they will execute on the promise that fresh produce will be grown using state of the art technology for decades to come.”

Chris Girdler, president and CEO of the Somerset-Pulaski County Economic Development Authority, looks forward to the company’s future success in the community: “We, as a community, are very excited about the Bosch Berries acquisition of the Somerset facility. They bring to bear many decades of farming experience, and we are grateful for their investment in the Capital of Lake Cumberland. It has been a privilege to work with Tijmen and Wouter van den Bosch, and the future is very bright for everyone involved.”

Bosch Berries’ 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 $30 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 $1.3 billion 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 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 in October 2023 preliminarily approved an incentive agreement with the company under the Kentucky Business Investment program.

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, Bosch Berries 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 Bosch Berries, visit boschberries.com.

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

More information on the Governor’s AgriTech Initiative is available at AgriTech.ky.gov.

Read More