Michael Randle, Author at Southern Business & Development

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.

Rivian’s reversal is political setback for Georgia’s GOP leaders

Posted on March 11, 2024October 25, 2024 by Michael Randle

Before there was Hyundai’s massive Metaplant in southeast Georgia, Rivian was Gov. Brian Kemp’s signature economic development project.

Now the fate of the $5 billion factory is up in the air — along with Georgia’s reputation as an electric vehicle hub.

Georgia has prided itself on being the tip of the spear for a green energy transformation, attracting tens of billions of dollars in investment that’s created thousands of jobs.

But Kemp has long warned the green jobs boom window for Georgia is narrowing, and Rivian’s announcement that it’s indefinitely halting its mammoth electric vehicle project in Georgia and shifting production of new crossover EVs that would have happened here to Illinois highlighted the industry’s greater struggles.

A slowdown in demand for electric vehicles, increased competition from manufacturers and high interest rates have combined to undercut the once-booming sector.

It’s also a political problem for Kemp, who didn’t immediately comment, and other state leaders who championed the Rivian factory despite staunch grassroots opposition from neighbors of the sprawling northeast Georgia site where the plant would have been built.

Atlanta Journal Constitution

Rivian delays construction on $5B EV factory in Georgia

Posted on March 11, 2024October 25, 2024 by Michael Randle

Rivian Automotive Inc. will delay construction of its $5 billion Georgia electric vehicle factory, one of the largest economic development projects in the state’s history.

CEO RJ Scaringe said Thursday the company is shifting production of the R2, a compact electric SUV, to its plant in Normal, Illinois. The R2 was set to be made at Rivian’s new plant in Georgia. Scaringe made the announcement while previewing the company’s new R2 and R3 vehicles. The move will save Rivian $2.25 billion.

The announcement comes after the company revealed in February it will cut 10% of salaried employees.

Atlanta Business Chronicle

Georgia economy got off to better-than-expected start in 2024

Posted on March 11, 2024October 25, 2024 by Michael Randle

Georgia’s economy got a slightly better-than-expected start to the new year, as the unemployment rate dipped to 3.1%, the first time in more than a year, the state Department of Labor reported Thursday.

Unemployment had been a revised 3.2% in December.

The jobless rate counts only those in the labor market actively seeking work, so it sometimes drops when workers give up looking. But January’s decrease came for the right reason, since the number of people in the labor force was growing slightly, said Bruce Thompson, commissioner of labor.

The state’s jobless rate is now in hailing distance of its all-time low of 3.0%, reached in 2022, and is lower than the national rate of 3.6%, Thompson said in a statement. “With low unemployment and a competitive job market, Georgia’s workers and employers are thriving.”

Atlanta Journal Constitution

Austin playing key role in ‘insatiable’ nationwide demand for data centers

Posted on March 11, 2024October 25, 2024 by Michael Randle

As the data center market around the country continues to be white hot, Austin is poised to play a major role in filling what some experts are calling an “insatiable” demand for new projects.

Data centers are massive hubs for computer processing power — commonly called “the cloud” — that are used by many companies and industries. While they don’t create many long-term jobs, they do add value to a city’s tax rolls because of the large amount of investment at the sites.

It’s been a key focus of industry growth in the area. In recent weeks, the Austin Business Journal has reported on a $1.3 billion data center campus project in Caldwell County and a potential billion-dollar campus in Hutto. That adds to growing data center hubs in the area in Pflugerville, southeast Austin and Round Rock.

Austin Business Journal

Questions remain over Pattern Energy’s Southern Spirit line to connect ERCOT to Southeastern grids

Posted on March 11, 2024October 25, 2024 by Michael Randle

San Francisco-based Pattern Energy, which has a significant Houston presence, is ready to begin acquiring land in Texas for a project that could bring power generated from other states to the Texas grid.

The $2.6 billion Southern Spirit Transmission Project will span 320 miles between Texas and Mississippi, crossing through Louisiana. Pattern Energy’s project team told the Houston Business Journal that 40% of the land needed for the project has been acquired in Louisiana and Mississippi, while the route for its Texas footprint has been approved. The company said that the line will have a capacity of 3,000 megawatts.

The line can transport power both to and from Texas, enabling the Lone Star State to share any potential excess generation with grids in the Southeast United States. Pattern’s website lists 2026 as a potential date to begin construction, and the line could be operational by 2029.

Houston Business Journal