March 13, 2024 - Southern Business & Development

Apple, Tesla, Samsung have spent billions in Austin of late

Posted on March 13, 2024October 25, 2024 by Michael Randle

If there’s an antidote for the malaise that has been plaguing the tech sector nationally, Austin may be on to it.

A trio of big-name global tech players — Samsung Electronics Co. Ltd., Tesla Inc. and Apple Inc. — have made huge investments in the metro over the last few years, positioning them to add thousands more employees here in the coming decade.

The result is a foundation for new tech-related jobs in the region at a time when many large internet-facing companies here such as Meta Platforms Inc. and Google LLC retrench with layoffs.

It also has led to changes in the rankings of the top tech-sector employers in the Austin metro. According to the 2024 Austin Business Journal list of tech companies with the biggest local workforces, Tesla has supplanted longtime No. 1 Dell Technologies Inc., Apple has held steady at No. 4 but gained ground, and Samsung has moved up a notch from No. 7 to No. 6.

While Tesla can’t rise any higher, in terms of its ranking, Samsung and Apple appear poised to continue ascending in the future. All three are still in the relatively early years of major projects — massive factories for Samsung and Tesla, and a new corporate campus for Apple — that are expected to fuel their job growth locally.

Austin Business Journal

‘Battery boom’ drives GridStor to enter Texas market with new Galveston County plant

Posted on March 13, 2024October 25, 2024 by Michael Randle

With Texas set to lead the nation in new power storage generation added to its grid, developers are eyeing the Lone Star State for their projects. Portland, Oregon-based GridStor is the latest to announce its intent to break into the Electric Reliability Council of Texas’ service area.

GridStor acquired the Evelyn Battery Energy Storage project this week from Moab, Utah-based Balanced Rock Power. GridStor will construct and operate the project, which is located in Galveston County near the Hidden Lakes substation owned by Texas New Mexico Power.

Jason Burwen, vice president
of policy and strategy at GridStor

Construction on Evelyn will begin this summer, and the project will go online the following year, the company said. Jason Burwen, GridStor’s vice president of policy and strategy, said faster interconnection times to the Texas grid, compared to other options, were a big incentive for the company.

“Texas benefits from having the closest thing to a pure market in its power sector. When prices signal that it’s valuable to the consumers to have power at peak demand periods, these assets will show up to provide that service,” Burwen said. “Texas battery storage is not in a bubble, it’s in a boom, because the scale of need in Texas is so significant and the fundamentals of the grid are going to require it for some time to come.”

Houston Business Journal

Texas economist warns of consequences of LNG export pause

Posted on March 13, 2024October 25, 2024 by Michael Randle

A state economist is warning of the near-term effects of the U.S. Department of Energy’s temporary pause on liquefied natural gas export authorizations.

More than a month has passed since the DOE first announced a temporary pause on reviewing any pending or newly filed LNG export applications to non-Free Trade Agreement countries.

While several export projects have already sailed through the approval process, roughly 9 billion cubic feet per day (bcfd) of LNG exports pending approvals are at stake, says Dean Foreman, chief economist at the Texas Oil and Gas Association.

“These prospective approvals translate to a 20% increase in all of Texas natural gas production – 20%,” he told the Business Journal.

San Antonio Business Journal

Big Sun Solar powers up huge project for manufacturing facility in Seguin

Posted on March 13, 2024October 25, 2024 by Michael Randle

Big Sun Solar’s 2.6 megawatt solar project for automotive supplier Vitesco Technologies is complete seven months after its first announcement.

Along with being the largest single-location project San Antonio-based Big Sun has ever commissioned, what makes the project unique, says CEO Robert Miggins, was that it formed under a historic three-party agreement between Vitesco, Big Sun and Guadalupe Valley Electric Cooperative.

“To our knowledge, it’s the first three-party PPA that we know of in Texas,” he said.

The project, which consists of 4,800 ground-mounted solar panels on a 12-acre solar farm next to Vitesco’s Seguin manufacturing facility, is fully operational after five months of construction, Miggins said. Generating 4,800 megawatt hours per year – enough energy to power 330 Texas homes – the project will account for about 13% of Vitesco’s annual energy consumption at its Seguin facility and reduce emissions equivalent to removing nearly 600 cars from the road for a year, according to Big Sun.

San Antonio Business Journal

Before pausing Georgia factory, Rivian struggled to meet expectations

Posted on March 13, 2024October 25, 2024 by Michael Randle

Electric vehicle startup Rivian on Thursday introduced its R2 crossover, the mass market EV the company for years said would be built at a new Georgia factory the company as recently as last month said would open in 2026.

The expected landmark moment for Georgia’s emerging EV sector instead turned into disappointment.

Rivian CEO RJ Scaringe announced the two-row EV would start production at the company’s existing factory in Illinois. Though he said expansion in Georgia remains part of Rivian’s future, the company announced the $5 billion factory is on hold.

“I want to be absolutely clear we remain committed to building our future in Georgia,” Scaringe wrote in an op-ed to The Atlanta Journal-Constitution. “This shift in launch cadence puts us in a stronger position prior to launching our Georgia plant.

Atlanta Journal Constitution

With the supply side shifting dramatically, what’s next for Atlanta’s office market

Posted on March 13, 2024October 25, 2024 by Michael Randle

Just over 550,000 square feet broke ground in the Atlanta office market in 2023, according to JLL. That figure is down 60% from the 2017-2022 annual average, and marks the lowest annual volume recorded since 2016.

“Amid a challenging interest rate environment, the office development slowdown is a trend we’re seeing nationwide, not just in Atlanta,” said Shelton Quantz, senior research analyst at JLL. “It’s also something that intensified through year-end.”

The fourth quarter witnessed no groundbreakings in Atlanta and saw an all-time low number of groundbreakings across the national office market, JLL’s research shows. As of Q4 2023, the Atlanta office market had 2.4 million square feet of product under development across 15 properties, and more than half of that product is set to deliver in 2024.

Atlanta Business Chronicle

Vanderbilt University Medical Center launches artificial intelligence center

Posted on March 13, 2024October 25, 2024 by Michael Randle

Vanderbilt University Medical Center has created an artificial intelligence center.

The Department of Biomedical Informatics at the hospital has launched Artificial Intelligence ADVANCE (AI Discovery and Vigilance to Accelerate Innovation and Clinical Excellence), according to a press release.

The purpose of the center is to advance the use of AI in the health care industry. The center will target transforming patient care, research and training.

The center is co-directed by Dr. Peter Embí — professor of biomedical informatics and medicine, chair of the department and senior vice president for research and innovation —and Bradley Malin, accenture professor of biomedical informatics, biostatistics and computer science and vice chair for research affairs for the department.

“By enabling the development of novel AI capabilities and their responsible implementation in practice, we aim to accelerate discoveries, transform health care delivery, improve patient outcomes and ultimately save lives,” Embí said in the release.

Nashville Business Journal

Port Tampa Bay’s Chinese cranes monitored for security threats as White House amps up alarms

Posted on March 13, 2024October 25, 2024 by Michael Randle

Two cranes at Port Tampa Bay are under scrutiny amid concerns that Chinese-made ship-to-shore cranes represent a national security risk.

In February, the Biden administration announced plans to invest more than $20 billion into port infrastructure over the next five years. Part of the plan involves onshoring domestic manufacturing capacity for cranes, since the United States lacks a major crane supplier.

Chinese cranes made by Shanghai Zhenhua Heavy Industries Company Limited (ZPMC) account for nearly 80% of cranes at U.S. ports. A recent congressional probe identified communications devices, including cellular modems in some cases, on a number of those cranes. The Pentagon and the White House are “increasingly alarmed,” the Wall Street Journal reported.

“By design, these cranes may be controlled, serviced and programmed from remote locations. These features potentially leave [China]-manufactured cranes vulnerable to exploitation,” Adm. Jay Vann, commander of the Coast Guard Cyber Command in D.C., said in a February briefing.

Tampa Bay Business Journal

Georgia-Based Cold Storage Company to Build $45.9 Million Facility in St. Tammany Parish, Create 100 New Jobs

Posted on March 13, 2024October 25, 2024 by Michael Randle

PEARL RIVER, La. – Agile Cold Storage, a diversified storage and logistics solutions company serving North American food manufacturers, processors and growers, announced it will invest $45.9 million to construct a new 150,000 square-foot automated cold storage facility in St. Tammany Parish.

The company estimates the project will create 100 direct new jobs with an average annual salary of approximately $53,000. Louisiana Economic Development estimates that the project will result in 95 indirect new jobs, for a total of 195 potential new jobs in the Southeast Region of the state.

“Agile Cold Storage’s investment in St. Tammany Parish demonstrates the unique logistical advantages Louisiana has to offer businesses that keep America’s supply chains flowing smoothly,” said LED Secretary Susan Bonnett Bourgeois. “This project is a win for the North Shore, the state economy and the workers of Louisiana.”

Agile, which is based in Gainesville, Georgia, helps food producers prepare fresh food for transport by blast-freezing and packing it for shipment to its ultimate destination. Through automated, multi-temperature and conventional warehousing and logistics support, Agile offers customized cold storage solutions for a variety of clients across the country. Once operating, the company expects to transport approximately 100 containers of food shipments from its new Pearl River facility to the Port of New Orleans for export every week.

“From the bayous to the bustling cities, our new warehouse in Louisiana is not just bricks and steel; it’s a testament to our growth and dedication to serving this incredible community with efficiency and pride,” said Don Schoenl, Agile Cold Storage president and CEO.

Following a land sale, the new cold storage facility will be built on 10 acres at the site of the 130-year-old historic St. Joe’s Brick Works, a family-owned brickmaking company. Construction is expected to start this month, with operations due to begin in the first quarter of 2025.

“Agile Cold Storage is exactly the type of business that we welcome in Pearl River – a growing distribution and logistics company with competitive, well-paying jobs,” said Pearl River Mayor Joe Lee. “Their decision to invest in our community and hire locally is a tremendous sign of progress for our town. This is truly a right-fit project for our local economy.”

To secure the project, the state of Louisiana offered Agile a competitive incentives package that includes the comprehensive workforce development solutions of LED FastStart. It also includes a Performance-Based Grant of $1.5 million to be used for reimbursement of company expenditures for site improvements, contingent upon board approval and meeting investment and payroll targets. The company is also expected to participate in Louisiana’s Quality Jobs program.

“The future home of Agile Cold Storage in Pearl River, near the nexus of Interstates 10, 12, and 59, is an ideal site for this project and further reinforces our message that St. Tammany is the best-positioned location in the Gulf South for significant logistics and distribution economic development projects,” said St. Tammany Corporation CEO Chris Masingill. “Agile is a highly respected, quickly expanding company on a national scale, and they will be a strong member of our business community. We are pleased that the company’s leadership sees the value in our parish’s talented workforce and proactive business environment, and we look forward to continuing to support their expansion into St. Tammany.”

“This investment from Agile Cold Storage is a testament to the region’s competitive incentive offerings, strategic location and robust infrastructure,” said Michael Hecht, President and CEO of Greater New Orleans, Inc. “These operations will help bolster St. Tammany Parish’s position as a key player in the global logistics industry. Moreover, the new facility introduces highly sought-after cold storage to support the region’s growing food manufacturing industry.”

Gov. Beshear Joins Leaders at Goose Creek To Break Ground on $5 Million Expansion Creating 160 Full-Time Jobs

Posted on March 13, 2024October 25, 2024 by Michael Randle

LIBERTY, Ky. (March 8, 2024) – Today, Gov. Andy Beshear joined local officials and representatives from Goose Creek Candles, a family-owned candle, soap and wax melt manufacturer, to break ground on the company’s new distribution facility expansion project in Casey County, a $5 million investment creating 160 quality, Kentucky jobs.

“Congratulations to Goose Creek Candles for this incredible investment into the local community and workforce,” said Gov. Beshear. “A Kentucky company finding success and expanding its operations in the same community where it first started over 25 years ago shows the growing strength of our economy. I’m thrilled to be here today to celebrate this exciting next step for the company and wish Goose Creek many more years of success here in the commonwealth.”

To meet rapidly growing customer and retailer demand and projected additional sales growth, Goose Creek Candles is expanding its existing distribution center in Casey County. The project will see the company add 85,000 square feet to its current operation, allowing room for two new pick lines to help with order fulfillment, additional warehousing for inventory and expanded replenishment capacity. Goose Creek’s expansion is set to begin this year, with the 160 new, full-time jobs opportunities bringing the company’s Kentucky employment to 280. The added positions will improve ship times, meet the growing product demand and assist in expanding the Walmart partnership, where Goose Creek products can be found in over 3,600 stores nationwide.

“We believe the future of fragrance will look different, and that’s why we are investing in new fragrance applications and technologies,” said Jordan Meece, chief marketing officer at Goose Creek. “From smart home devices to laundry care, we believe the Goose Creek brand will continue to be a fragrance leader for decades to come.”

“While manufacturing of Goose Creek products takes place all across the U.S., the national headquarters in Liberty houses management teams and order distribution,” said Micah Meece, chief operating officer at Goose Creek. “Currently, our biggest challenge is shipping orders quickly enough to keep up with customer demands. We are shipping over 25,000 pieces per shift, and that’s just not enough.”

Goose Creek is a Kentucky-based home fragrance brand located in Liberty. Founded by Chuck and Tamara Meece in 1998, the brand is now mass-produced in factories across the United States. Goose Creek has experienced exponential growth in the home fragrance sector, making the brand a household name. Owned and managed by the Meece family, forward-thinking business strategies have enabled the brand to surpass other industry players. More than just candles, the Goose Creek brand has also become known for other fragrance categories, such as body care products and flameless fragrance options. All orders placed on the company’s website are processed in the distribution center in Liberty, which currently employs over 120 people.

Liberty Mayor Dr. Housam Haddad looks forward to Goose Creek’s expansion and continuing their successful partnership within the community: “We are excited to have Goose Creek expand their operations here in Liberty, bringing additional employment to our citizens. We welcome Gov. Beshear and the support he brings to Liberty and to our industrial base.”

Nicki Johnson, director of the Liberty-Casey County Chamber of Commerce, highlighted the positive impact the company has on the community and looks forward to supporting their future success: “Goose Creek is a well-loved local business that has invested in our community since its beginning. Battling the fire, relocations and expansion, Goose Creek remains steadfast in being an employer that our community embraces, supports and encourages in all their efforts as they grow to serve a global reach for the quality products they produce. The Liberty-Casey County Chamber of Commerce endorses Goose Creek and their groundbreaking for expansion and will to contribute in every way possible to their success.”

Goose Creek’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 $30.3 billion in announced investments, creating more than 52,000 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.

This month, Site Selection magazine ranked Kentucky third nationally and first in the South Central economic development projects per capita in its 2023 Governor’s Cup rankings. Previously, Site Selection 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 (KEDFA) in January 2024 preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $650,000 in tax incentives based on the company’s investment of at least $3.6 million and annual targets of:

Creation and maintenance of 160 Kentucky-resident, full-time jobs across 15 years; and
Paying an average hourly wage of $16.55 including benefits across those jobs.

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, Goose Creek Candles 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 Goose Creek Candles, visit goosecreekcandle.com.

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