< Previous18 JULY 2018 SI T E S E L E C T IO NWORLD REPORTSby G ARY DAUGHTERSgar y.daug hter s @ site s ele c tion.c omUK Trumpets Tech InvestmentsHighlighting Britain’s status as what the UK government calls “the best place in the world to run a tech company,” the of ce of Prime Minister Theresa May (pictured) announced in mid-June that British tech businesses attracted the equivalent of $7.8 billion in funding in 2017, almost double the amount from the previous year. Some 2.1 million people in Britain now are employed in the digital tech economy, and a new digital tech job is created in the UK every 50 minutes, according to fresh estimates from Dealroom and Tech Nation. “It’s a great time to be in tech in the UK,” said May. Companies announcing major new investments in Britain’s tech space include Amazon, Salesforce, Mubadala and NTT Data.1Let There Be LightAmerican computer scientist Greg Ward and Japanese architect Hiroshi Sambuichi are joint winners of the Daylight Award 2018, which recognizes prominent practitioners in the elds of daylight in architecture and research. Ward is the developer of a software program, Radiance, that has served as a pillar for daylight simulation employed in architecture, product design, horticulture, medical research and even space travel. Sambuichi’s buildings explore the relationships between light, wind, water and other natural elements. The Daylight Award is presented by three European philanthropic foundations, VILLUM FONDEN, VELUX FONDEN and VELUX STIFTUNG.222123UNCTAD:Global FDI Fell 23 Percent in 2017Hiroshima Orizuru Tower, designed by Hiroshi Sambuichi, offers views of Peace Memorial Park and the Atomic Bomb Dome in Hiroshima, Japan.Photo courtesy of Sambuichi Architects5 S I T E S E L E C T I O N JULY 2018 19The State of the NordicsWhile population decline vexes many nations, the Nordic region is expected to grow to 29 million inhabitants, an increase of more than 10 percent, by 2030. According to a biennial report by Nordregio, a leading Nordic research center, the Nordic population is growing faster than the rest of Europe. Growth, says the report, is largely concentrated in urban areas and is abetted by immigration. The Nordics, with less than 4 percent of the European population, account for 7 percent of Europe’s total foreign direct investment in ows, the report says.3Mercedes Goes ‘Full Flex’ in HungaryMercedes-Benz Cars has broken ground on its new “Full-Flex Plant” in Kecskemét, Hungary, about 55 miles (90 km.) south of Budapest. The plant is based on the automaker’s “Factory 56” concept unveiled in February, by which, the company says, “the human is at the center of all activities” and processes are consistently digital, exible and green. “Tablets, handhelds, smartphones and smart watches support employees in their daily work,” the company says. The company says multiple vehicle architectures and drive forms, including electric, will be exibly produced at the plant on a single line. Mercedes-Benz is investing €1 billion (US$1.1 billion) into the expansion. An existing Mercedes-Benz plant in Kecskemét has some 4,000 employees and produced more than 190,000 vehicles in 2017.5Photo courtesy of Mercedes-Benz CarsPhoto courtesy of Nordregio42U.S. Aerospace Investment in UkraineTexas-based Fire y in May opened a new research and development center in the Ukrainian city of Dnipro. Fire y is a developer of orbital launch vehicles for the small- to medium-range satellite market. Fire y Ukraine will be home to more than 150 employees and will be equipped with Ukraine’s largest 3-D printer, intended for industrial manufacturing of high-quality metal parts. The Dnipro facility is designed to develop lightweight rockets for launching cargo into space.444444444444444444444444445 S I T E S E L E C T I O N JULY 2018 21Animatronics firm selects site in San Bernardino County, where talent development is job one.Garner Holt Productions makes its living helping people escape to the land of make-believe.There’s nothing make-believe, however, about the economic impact the company is having on San Bernardino County, California.On April 16, the world’s largest designer and builder of animatronics for theme parks and other attractions around the globe announced the expansion and relocation of its corporate headquarters to the city of Redlands in San Bernardino County. The move doubles the manufacturer’s footprint and makes room for expansion of company offerings.Garner Holt founded the firm in his parents’ garage in unincorporated San Bernardino County in 1977. Four decades later, he’s moving the now-global operation into an existing 120,000-sq.-ft. industrial building in Redlands, by RON S TARNERr on. s t ar ner @ site s ele c tion.c omINVESTMENT PROFILE:SAN BERNARDINO COUNTY, CALIFORNIAGarner Holt Productions supplies animatronics worldwide to the largest theme park attractions.Photos courtesy of Garner Holt ProductionsWorkforce Magicians22 JULY 2018 SI T E S E L E C T IO Na city known for its historic and elaborate architecture.How the firm came to be based in Redlands is a story as much about San Bernardino County as it is about the supplier to Disney, Universal, Knott’s Berry Farm, Mattel, Nike and others.“We looked around. We did our due diligence,” says Holt. “We looked across the Inland region. We looked at Las Vegas to see what was there. This is a big move for us. Hopefully, we don’t have to move again.”Holt says he likes the county because it offers proximity to everything he wants. “It is such a diverse area,” he says. “Being able to network with so many different types of people in the entertainment industry is huge. We are on a major freeway interchange. We can tap into talent across the region. We have a great workforce and great weather. We are very happy here.”Holt says the animatronics designers and builders in the area “are some of the best in the world at what they do. I have no reason to go anywhere else.”Moving to Redlands Corporate Center, just minutes from the firm’s previous base, is like going home, says Holt. “My parents met at a dance in Redlands,” he says. “My grandparents lived in Redlands. My family had roots in Redlands before World War I. It is a beautiful little town — an older Main Street type of town.”A Welcoming City and CountyThe town has a distinguished history of its own. Many of its structures date back to the late 1800s, including the iconic A.K. Smiley Public Library and the famed Morey Mansion. Kimberly Crest House & Gardens boasts a THE NEXUS OF GLOBAL CONNECTIVITYAny manufacturer or logistics end-user in San Bernardino County will tell you that a major drawing card for the region is the Ontario International Airport. The fastest growing airport in Southern California, ONT is continuing its rapid ascent since its return to local control in November 2016. In 2017, its first full year of local ownership, ONT welcomed 4.5 million passengers, up 7 percent from the year before. During the first three months of 2018, passenger and cargo volumes increased by 10 percent and more than 16 percent, respectively, compared with the same period last year.JetBlue’s return this coming September, with nonstop service to John F. Kennedy Airport in New York City, underlines the change that has occurred at ONT during the past year and a half. JetBlue was extremely popular with passengers during its original run at ONT from 2000 to 2008, but suspended service as Los Angeles World Airports — the previous operator of ONT — reconsidered its approach to regional air transportation and began emphasizing growth at Los Angeles International Airport (LAX). With its return, JetBlue joins Frontier Airlines and China Airlines as the newest arrivals at ONT. Frontier launched direct service to its home base in Denver, Austin and San Antonio last October, and in March, China Airlines began daily service to Taiwan, the first transpacific service in ONT’s history.Mark Thorpe, who was named CEO of the Ontario International Airport Authority last October, recently took time to discuss these and other changes at ONT.Please share the scope of China Airlines’ decision to add flights at ONT and the impact on the region.THORPE: The significance is far reaching. Not only is this the first “Many people don’t realize this, but ONT is the closest and most convenient international airport for more than 10 million people in the Inland Empire, northern Orange County and eastern LA County.” — Mark Thorpe, CEO, Ontario International Airport Authority S I T E S E L E C T I O N JULY 2018 23transpacific service in ONT’s history, it’s the only such service — outside of LAX — in Southern California. And clearly there’s demand — so much that even before the first day of service back in March, China Airlines increased its scheduled flights from four to seven days a week. The flights are attracting a mix of business and leisure travelers, many of them currently located in or with ties to eastern Los Angeles County and the San Gabriel Valley. That’s no coincidence; ONT’s location and great freeway access make it an ideal gateway for millions of travelers for a large portion of Southern California. Many people don’t realize this, but ONT is the closest and most convenient international airport for more than 10 million people in the Inland Empire, northern Orange County and eastern LA County. In addition, more than half (55 percent) of Southern California’s 2.5 million residents of Asian descent live closer to ONT than LAX.What other carriers have increased flights at ONT since local control?THORPE: The biggest growth, other than China Airlines, has come from the arrival of Frontier and, soon, JetBlue. In addition to its Denver, Austin and San Antonio non-stops, Frontier offers continuing service from Texas to Dulles International, which means that passengers can travel from ONT to Washington, D.C., without changing planes. Also, Southwest Airlines, United Airlines and Volaris Airlines have increased service.How is ONT best suited to handle cargo flights and how does this benefit businesses in the region? THORPE: ONT is one of the most active freight and cargo airports in the United States. In 2017, the airport handled 654,000 tons of cargo, up 15 percent from the prior year and ranking it among the top 15 airports nationwide. And it’s only getting busier. During the first three months of 2018, cargo shipments are up 16.4 percent from the comparable period a year ago. Ontario is the West Coast air and truck hub for UPS Airlines and is a major distribution point for FedEx Express and Prime Air. The airport’s size (1,741 acres), long runways (including one measuring 12,200 feet — among the longest in the country) and modern air cargo infrastructure make it ideal for freight expansion. The airport has 675 acres of developable land, which creates a multitude of opportunities for all kinds of businesses, including those desiring immediate access to the airport’s distribution channels.What other changes are being implemented to further meet the needs of business in the region?THORPE: ONT’s overall economic impact on the region is $5.4 billion per year and growing. Since the airport’s return to local control, its role as a regional economic catalyst has grown, with hundreds of millions of dollars of new investment dollars arriving in communities such as Rancho Cucamonga, Ontario and northwestern Riverside County. Plans are rapidly advancing for additional mixed-use development north of the airport. How does ONT compare to other airports in SoCal? What are its competitive advantages?THORPE: Convenience and access. Again, for 10 million Southern Californians, ONT is the closest, most convenient airport to get to. Our location — in the Inland Empire but within a few miles of Los Angeles and Orange counties — makes us the airport of choice for one of the fastest-growing markets in the U.S.Victorian mansion and Renaissance-style gardens. Redlands Bowl, which hosts music concerts, opened in the 1920s.“We have used some incentives, but that wasn’t why we chose Redlands,” says Holt. “We chose this city because Redlands welcomed us with open arms. They have been super helpful. We have received great support, and it could not have worked out any better for us.”The company currently employs about 65 workers but plans to double its workforce to around 130 upon full production at the new plant, says Holt.Supplying and training that workforce is the job of Tony Myrell, chairman of the San Bernardino County Workforce Development Board. To help him do that, the county recently adopted a comprehensive Workforce Roadmap.“The primary focus of the Workforce Roadmap is to train and retrain people into new job sectors and get people back into the workforce,” says Myrell. “The roadmap shows us where to prioritize our training dollars for maximum “Being able to network with so many different types of people in the entertainment industry is huge. We are on a major freeway interchange. We can tap into talent across the region. We have a great workforce and great weather. We are very happy here.” — Garner Holt, Founder and Owner, Garner Holt Productions, Redlands, California24 JULY 2018 SI T E S E L E C T IO Nbenefit. Sustainable wages are the goal.”The Workforce Roadmap showed the county that its primary labor demand is coming from advanced manufacturing, health care, logistics and distribution. “The roadmap gives us the ability to work with our educational partners and businesses,” Myrell says. “This makes sure that we are training the workers to what the employer actually needs. What we’ve found is that businesses change faster than the educational system does. Industry and technology are changing every day. This gives us the chance to adapt.”Along those lines, the county is rolling out several programs to enhance its worker training efforts: SlingShot, Career Pathways and Work-Based Learning. All are designed to better align education and worker training with industry needs.SlingShot is about “deeper engagement with our business community,” says Myrell. “We talk to educators and businesses to best understand where the workforce needs are and where skills gaps exist. Through SlingShot, we’ve reached out to our industry champions and businesses to discuss their challenges and whether they are getting the skilled employees they really need. Now that business is telling us what they want, we’re going to the universities and community colleges and asking them to prepare a curriculum that will produce those candidates.”Exposing Kids to Lucrative CareersThe San Bernardino County Workforce Development Board Generation Go! initiative targets K-12 level youth. It is a countywide effort to provide career pathways in high school that lead to college and vocational training and employment. The intent is to prepare the county’s workforce for future careers and ensure its youth are “workforce ready.” “We have an elementary school that is teaching kids how to do computer-aided design,” Myrell says. “They are using 3D printers to make things. Kids are now doing this type of work in elementary school. We get them into Career Pathways at an early age, and we begin equipping them for careers that pay more than 4-year degrees do. Kids today don’t have to go to college to get a good-paying job. They can make $40 an hour as a welder. We have dual enrolled our 11th- and 12th-graders into community college and they are working toward a certificate.”Work-Based Learning is an apprenticeship program that takes kids from high school and gives them practical work experience. “Employers will pay these kids for 120 hours of work experience,” Myrell notes. “We expect a lot of employers in San Bernardino County to get involved in this program, because it works.”Reg Javier, deputy executive officer of workforce and economic development for the county, says that “preparing future workers with relevant, in-demand skills is a critical element of an ecosystem that is designed to address how we develop the best talent to attract business growth. The partnerships we’ve established, the youth of our population and the county’s quality-of-life factors are all connected. Businesses see that and want to be part of it.”Holt says it’s support like this that keeps him and his business re-investing in the county. “We like to inspire kids to make things like we do,” he says. “It is very inspirational. That’s why I serve on a lot of charitable boards. I believe in this community.”He adds that he loves “the wide range of talents that are available here. We can dip into the talent pool of the Los Angeles-Hollywood area to find sculptors, painters, costume artists, etc. Plus, due to the military presence, a lot of aerospace fabrication and machinists are here. Pretty much everyone we need to do our creative work and our finishing work is right here.” This Investment Profile was prepared under the auspices of San Bernardino County government. For more information, contact the county Economic Development Agency at 909-387-4700. On the web, go to www.sbcountyadvantage.com.“We talk to educators and businesses to best understand where the workforce needs are and where skills gaps exist.” — Tony Myrell, Chairman, San Bernardino County Workforce Development Board S I T E S E L E C T I O N JULY 2018 25T ALENT A TTRACTION & RETENTIONBusiness owners are becoming increasingly keen to their employees’ desires for quality workspaces. The trend is being driven by the need to attract and retain workers during an era of high employment and by the preferences of millennials, whose approach to work and the workplace is thought to diverge from that of previous generations.Amazon’s ‘The Spheres’ highlights the trend of making the workplace more compelling — even as it seems to find its hometown more repellent.by G ARY DAUGHTERSgar y.daug hter s @ site s ele c tion.c om“The Spheres” on Amazon’s Seattle campus are home to more than 40,000 plants and 400 species from around the world.Source: AmazonConvenient market access. Business-friendly regulations. And top-ranked industry support. In North Carolina, companies of all sizes and industries are experiencing exceptional growth. The state’s low cost of living and highly educated workforce enhance its highly favorable business environment for a wide range of industries. Here’s a look at how the region’s talent and resources have supported a few key sectors: Aerospace & Defense Dozens of leading aerospace and defense companies operate in North Carolina, including pioneers such as GE Aviation, Honda Aircraft Company, Spirit AeroSystems and ATI Specialty Materials. With 76 percent growth from 2007 to 2016, the state was home to the second fastest-growing aerospace product and parts manufacturing sector in the United States. Over 1,000 companies make up North Carolina’s aerospace supply chain — from repair and maintenance to parts manufacturing, the resources are here no matter what kind of support services you need. Since 2013, jobs in North Carolina’s aerospace industry have increased 36 percent, one of the fastest growth rates in the United States. Aerospace companies choose North Carolina for its top-tier labor and innovation pipeline — fueled by university aerospace programs, community college vocational training and robust research partnerships. North Carolina also has the fourth-largest military population in the country, with roughly 21,000 of its military personnel re-entering the civilian workforce each year. Many of these workers specialize in aerospace propulsion and ground equipment — meaning they’re ready to take flight whenever you are.Information Technology North Carolina’s information technology (IT) cluster has grown 12 percent in the past five years. Frequently dubbed as a hotspot for technology talent by prominent media outlets like Forbes and Mashable, the state is home to 44,085 IT workers across 1,449 establishments. In 2016, North Carolina’s educational institutions awarded 22,751 degrees and certificates related to science, technology, engineering, and mathematics (STEM). North Carolina is a STEM leader, with the second most STEM degree completions in the southeastern United States.Food & Beverage Manufacturing North Carolina’s food and beverage manufacturing industry is the second largest in the United States by gross economic output. The industry in North Carolina encompasses over 1,000 business establishments, including big names such as Frito-Lay and Campbell Soup Company, as well as Sierra Nevada and other craft brewers experiencing exponential growth. With 24 of the largest 50 food and beverage companies operating in the state, jobs in the industry have grown 10 percent in the past five years. Resources such as the North Carolina Department of Agriculture and Consumer Services and the North Carolina Food Processing and Innovation Center help connect food companies with the resources they need to succeed. What makes North Carolina ripe for success? The state’s prime East Coast location and extensive highway access put half of the U.S. population (that’s 100 million people) within a day’s drive, meaning hungry customers are never far from your product. Even better, the state’s four international airports, two deep-water seaports and largest consolidated rail network in the country can support your supply chain from end-to-end. Automotive, Truck & Heavy Manufacturing From the birth of stock car racing to developments in electric vehicle technology, North Carolina has demonstrated its passion for all things automotive. The state is home to 266 automotive manufacturing establishments. And, employment in the state’s automotive industry is growing, increasing 31 percent since 2010. Thirty-three of the top 100 global automotive parts manufacturers in North America have operations in the state, and customized training programs throughout the state’s community college system support the industry’s continued expansion.In the coming years, these industries will continue to grow in North Carolina, a state that is home to the largest manufacturing workforce in the Southeast. Now and in the future, companies are drawn to North Carolina’s affordable operating costs, great tax climate and enviable quality of life. No matter what your business, there’s room for you here.GAINING MOMENTUM:in North Carolina,business is boomingA D V E R TI S E M E N TNorth Carolina’s aerospace industry is one of the fastest growing in the United States.Next >