NOVEMBER 2018 Volume 63 • Number 6SITE SELECTION2 NOVEMBER 2018 SI T E S E L E C T IO Nt COVER STORYCover design by Negin Momtaz & Sean ScantlandCONTENTSNovember 2018T H E M A G A Z I N E O F C O R P O R A TE R E AL E S T A TE S TR A TEG Y A N D E C ONOM I C D E V E L OP M E N TV O L U M E 6 3 , N U M B E R 6 Georgia racks up a sixth consecutive first-place U.S. business climate finish. Can the governor’s successor keep the trend on track? The 2018 Business Climate Rankings 76 BUSINESS RETENTION: Winning Cities’ Secrets 80 OPPORTUNITY ZONES: How They Work 86 INCENTIVES UPDATE: It’s Time for Reforms — Here Are Fourp.64t FEATURES 40 GLOBAL AUTOMOTIVEAutonomous vehicle testing and production centers are cropping up everywhere, but some locations have a definite edge. 44 AEROSPACE & DEFENSEA shortcut for establishing an MRO presence in Asia; U.S. launchpads see new investment. 58 MEDICAL DEVICESThere’s much more to Memphis’s appeal to this industry cluster than the FedEx super-hub. 60 FDI IN AMERICAA look at what’s behind a drop in inward U.S. foreign direct investment. 92 DATA CENTERSAvailability zones? Over there by the slalom. 96 RECESSION-PROOF INDUSTRIESHealthcare jobs offer solid job security, even in challenging economic times. 100 PORTS & FREE TRADE ZONES, TOP FTZSAn exclusive survey and unique data indices offer insights into the top-performing zones worldwide.Ports & Free Trade Zones Directory . . . . . . . . . . . . 108 S I T E S E L E C T I O N NOVEMBER 2018 3FOLLOW US!s i t e s e l e c t i on . co m ▼ INVESTMENT PROFILES 28 COLUMBUS, OHIO 36 BADEN-WÜRTTEMBERG INTERNATIONAL 56 QUONSET BUSINESS PARK, RHODE ISLAND ▼ INVESTMENT REPORTS 123 AQABA, JORDAN 145 COSTA RICA ▼ DEPARTMENTS 4 EDITOR'S VIEW: Note to Areas: Attract Talent, Investment Will Follow 223 INDEX TO ADVERTISERS 6 IAMC INSIDER: A letter from the Chair; best practices for partnering with service providers on strategic planning and implementation. Site Selection is the of cial publication of the Industrial Asset Management Council. ▼ SPECIAL ADVERTISING SECTIONS 213 UNIVERSITY ALLIANCES 217 TOP BUSINESS PARK LOCATIONS▼ INTERNATIONAL UPDATE 12 PANAMAA leading presidential candidate talks about the “Panama Papers” misnomer, and why his country is a business paradise. 18 NORTH AMERICAN REPORTSU.S. warehouse development magnets; workers crave natural lighting; why royalty paid a visit to New Jersey; a new Detroit River bridge nally gets underway. 20 THE CARIBBEANThe CARICOM consortium strengthens links to ASEAN and Nordic markets. 22 JAMAICABPO providers can’t ll space fast enough. Can other sectors catch the wave? 26 WORLD REPORTSIndoor snow is forecast for Shanghai; Samsung readies an experience center for millennials in India; Africa’s best of ce developers; Kapooka, Australia, lands a communications project. 30 CHINAThe “Silicon Valley of Hardware,” Shenzhen is also a hub for arti cial intelligence. 32 INDIAFast approaching 75, the fastest growing large economy is hitting its stride. 38 GERMANYWhere to nd Germany’s greenest buildings.▼ AREA SPOTLIGHTS 143 NEW YORKAn engineering rm dives into new development opportunities on the Empire State’s waterfront. 154 VIRGINIAA historic location is the site of a historic, $3-billion memory production expansion; a health sciences hub takes shape in the Roanoke Valley. 167 KANSASE-commerce projects take advantage of this state’s roads, space and ideal location. 174 THE SOUTHWESTTextiles and robotics are among the sectors bene ting from new state R&D funding. 181 OHIO RIVER CORRIDORA Western Kentucky metro claims the Great River Cup for the most projects per capita. 185 NEBRASKAWhy Facebook’s latest $1-billion data center likes the Greater Omaha area. 190 WISCONSINWhere paper mills are being reborn; the Foxconn effect. 194 MISSISSIPPITomorrow’s automotive engineers are put to the test. 198 WASHINGTONSpokane tries a new development formula. It’s working.ONTARIO, CALIFORNIA INTELLIGENCE REPORT201ONTARIO, CALIFORNIA INTELLIGENCE REPORT4 NOVEMBER 2018 SI T E S E L E C T IO NEDIT OR’S VIEWNote to Areas:Attract Talent, Investment Will FollowMEMBERSite Selection (ISSN: 1080-7799) (USPS ), November, 2018, volume 63 number 6. Published six times a year in January, March, May, July, September and November by Conway, Inc., 6625 The Corners Parkway, Suite 200, Peachtree Corners, GA 30092 USA. Periodical postage paid at Peachtree Corners, Georgia, and additional mailing offices. Single issue: $20 plus shipping. Annual subscription: $95 in the United States; $135 to non U.S. addresses. PRINTED IN USA. POSTMASTER: Send address changes to Site Selection, 6625 The Corners Parkway, Suite 200, Peachtree Corners, GA 30092 USA.©2018 CONWAY, INC.BRAND REPORT CEO LAURA LYNE President & Publisher ADAM JONES-KELLEY Executive Vice President RONALD J. STARNER VP of Publications & Editor in Chief MARK AREND Managing Editor ADAM BRUNS Senior Editor GARY DAUGHTERS Managing Editor of Custom Content SAVANNAH KING Art Director SCOTT LARSEN Production Coordinator/Designer BOB GRAVLEE Lead Designers SEAN SCANTLAND, RICHARD NENOFF, NEGIN MOMTAZ Editorial Database Manager KAREN MEDERNACH Research Associates SPENCER BAUER, BRIAN ESPINOZA McKENZIE WRIGHTG L O B A L SA L E S & M ARK E TIN G Vice President of Sales CHARLES FITZGIBBON Vice Pres., Global Innovation GUILLERMO MAZIER Vice Pres. of Corporate Development PAUL TARRANTS Regional Director — Northeast US MIKE GLENNON Regional Director — Midwest US CATHY McFARLAND Regional Director — Southeast US HARRY NEILL Regional Director — Western US PAUL NEWMAN Regional Director — US MARGARET ROSE Regional Director KRISTIN PICKETT Global Director POLLYANNA TOWNSEND-ROSE Canada GREG SMITH & DAVID SEABERG, 705-484-0331 Mexico ANA ARROYO, (52-55) 2455-3971 Brazil FABIO YUKIO YAMADA, +5511 3044 4848 Central America BOBBY PEREIRA, +507 6673 1160 China DRAGO NAPOTNIK, +86 151 2117 2762 JOLIN FENG, +86 151 2116 3435 Germany OLIVER OBERMANN, +49 (0) 341 90 97 90 00 Poland KATHARINA ARNOLD ROKITA, +49 (0) 176 1030 5508; +48 (0) 660 178 134 Japan HIROKO MINATO, +81 50 8882 3456 Korea CHUL LEE, +82 2 466 5595 Malaysia Y.T. SIA, +603 56110101; +6011 10108909 Nigeria CHRIS ENYI, +234 1 803 331 8635 Thailand JANYA LIMMANEE +66 81 647 0121 Marketing Assistant CATHIE WENDT Client Services Manager BRIAN WATSON Marketing Manager STEPHANY GASPARD Staff Photographer SHAY LA’VEEB U S IN E S S D E PAR TM E N T Chief Financial Officer DEBBIE PORTERCI RCU L ATIO N Circulation Manager JULIE CLARKE DIG ITA L TECH N O L O GY TE AM Webmaster BEN YAWN Director of Programming & Analytics DANIEL BOYER Senior Programmer RENATO BYRRO IT Coordinator MARK BERTRAMThe publishers believe that the information contained in this publication is accurate. However, the in formation is not war ranted, and neither Conway, Inc., nor the Industrial Asset Management Council, assumes any liability or responsibility for actual, consequential or incidental damages re sulting from inaccurate or erroneous information. Site Selection incorporates Industrial Development.PHONE: (770) 446-6996 FAX: (770) 263-8825 TOLL FREE: (800) 554-5686EMAIL: editor@conway.com WEB: www.siteselection.comorkforce skills and workforce development are site selectors’ first and third most important location criteria, according to the results of a survey we conducted this fall (transportation infrastructure is second). The survey plays a key role in the composition of our annual business climate ranking. The rest is based on an index of project activity and other objective factors, as the article in this issue explains. Spoiler alert: As will surprise almost no one, Georgia places first in that ranking for the sixth consecutive year. Outgoing Governor Nathan Deal spoke with me at length last month about this winning streak, the policies he championed to make the state more receptive to investment and his confidence that the Peach State will remain a top business climate after a new occupant moves into the Governor’s Mansion in January.Leaving his office in the Capitol and making my way through Atlanta’s booming Midtown and Buckhead districts to our offices in nearby Peachtree Corners, the development erupting around me offered a silent echo of the Governor’s success, and confidence in the future. The Midtown area, Atlanta’s booming heart wrapped around Tech Square and Georgia Institute of Technology, sits today as one of the hottest real estate markets in the country. But there’s more to Georgia than the capital city, as goes for every state getting economic development right.Not only is Georgia attracting capital investment and accolades from investors about its business climate, it’s also attracting the people needed to staff the positions created by that investment. In fact, Georgia is attracting more people than any other state in the top 50 small-county-ranking component of the Third Annual Talent Attraction Scorecard, from Emsi, which was just released by the labor market advisory.“Many of Georgia’s small counties are doing exceptionally well in talent attraction, particularly Burke and Twiggs counties,” says Joshua Wright, Emsi’s vice president, economic and workforce development. Burke County is south of Augusta, and Twiggs is near Macon. “Both rank in the top 10 nationally among counties with fewer than 100,000 people, and both are seeing very strong job growth in manufacturing. The good news for Georgia is that much of the new jobs in smaller communities are going to young workers — Gen Z or millennials.” Seven other such counties in the state show significant job growth and skilled job growth in the period from 2013 to 2017, according to the Scorecard, and like Burke and Twiggs none of these counties are in the Atlanta Metro.“Many local economic developers are now more focused on people attraction than business attraction,” says Wright. “The labor market is that tight. The Talent Attraction Scorecard gives large and small communities the chance to benchmark their efforts in recruiting skilled workers to their cities and towns.” That’s a reminder that both cities and towns contribute to and benefit from a strong state business climate. Hopefully, state and local leaders recently voted into office in your state and ours understand that.Till next time,Mark Arend, Editor in ChiefW6 NOVEMBER 2018 SI T E S E L E C T IO Nwww.iamc.org2018-2019 IAMCBOARD OF DIRECTORSinsider November 2018ChairCharles WaltzBASF Corp.Vice ChairColleen CaravatiCorning Inc.TreasurerJennifer RothBimbo Bakeries USA, Inc.SecretaryScott CameronSonocoPast ChairMark EichkornPenskeJames Eckert Owens CorningDon HansenW. W. Grainger Inc.Deb Heffner, CEcDGreater Reading Economic PartnershipGregory Hitchin, CEcDCity of WaynesboroWilliam M. JenkinsThermo Fisher Scientific Inc.Linda LarsonAndersen Corp.Patricia J. Loveall, SIORKidder MathewsBill LuttrellWermer Enterprises Inc.Karen ShchukaPenske Truck Leasing Co., L.P.Ashley SnyderCresaExecutive DirectorJ. Tate Godfrey, CEcDIn this, my first IAMC Insider letter as 2018-19 Chair of IAMC’s board of directors, I’d like to report back to you about the Philadelphia Professional Forum and briefly look toward our next Forum in Santa Barbara, California.Many Philadelphia Forum attendees will name the Tuesday night networking reception with fireworks finale as the conference’s most memorable event, which was put on by the Georgia Allies, IAMC’s only Premier Sponsor. But allow me to point out a number of other highlights.Among the marquee speakers, Frits van Paasschen, former CEO of Starwood Hotels, achieved the highest survey rating, followed closely by futurist Nancy Giordano, who informed and energized the Wednesday closing-program attendees. She made a compelling case for adding the qualities of compassion, curiosity, empathy and agency to our everyday business vocabulary.Among the general sessions, I’d also like to recognize the Monday afternoon Shell polymers facility site selection case study, which showcased this mega-project with presenters from Shell, the Pittsburgh Regional Alliance, the State of Pennsylvania and JLL. The program nicely complemented and delivered on the Forum theme, “The Manufacturing Renaissance.”The Forum’s four top-rated programs were all professional development sessions delivered by member subject-matter experts. Here they are starting with the highest rated:• “Corporate Real Estate Implications of Common Supply Chain Models,” Blaine Kelley, CBRE; Richard Lawless, Georgia Pacific Co.• “Understanding the Prologis Clear Lease,” Steve Kimball, Prologis• “Two Short, High-Impact Talks”: (1) “2017 Tax Reform Legislation Impact on Manufacturing and Industrial Incentives,” by Julie Dow, Lockheed Martin Corp., and Kate Crowley, Baker Tilly Capital; and (2) “Calculating Total Incentive Package Value — Reality versus Smoke and Mirrors,” by Eric Nieukirk, Caterpillar Co., and Tracey Bosman, Biggins Lacy Shapiro & Co.• “Lease-Versus-Own Analysis Under the New Lease Standards,” Louis J. Battagliese Jr., Jackson Cross Partners.On behalf of IAMC, I extend a hearty “thank you!” to the 22-member Pennsylvania Host Committee for their seed funding, hard work, planning and follow-through support for the Philadelphia Forum.With Philadelphia successfully under our belt, we’re looking forward to an exciting spring Professional Forum May 4-8, 2019, in sunny Santa Barbara, California. The Hilton Santa Barbara Beachfront Resort will host all the event’s education sessions and networking programs with the notable exceptions of the Sunday Welcome Reception and Dinner at the Santa Barbara Zoo and the Tuesday Networking Reception at the Santa Barbara Maritime Museum.The conference theme is “Innovations in Corporate Real Estate.” Steve Forbes, publisher, and business commentator, will deliver the keynote address.I urge you to register now. Best regards,Charles WaltzChair, IAMC Board of DirectorsA Philadelphia Forum Report and Glimpse Ahead to Santa BarbaraMark Your Calendar …Charles WaltzNext >