< Previous58 JULY 2021 S I T E S EL E C T I O N facilities will likely choose locations in the Midwest for logistics and distribution reasons, regions like the Northeast that are home to large population centers and areas with strong biotech and higher education resources. “ ere is a wider awareness of what is going on in this space,” he notes. “But in economic development circles, there have not been a lot of site selection deals yet, so this is something that is still somewhat under the radar.” According to the State of the Industry, Good Food Institute annual report released in March , in , the alternative protein industry raised$ . billionin investment, which is three times more than in . A total$ . billioninvestment was raised by alternative protein companies over the past decade, out of which more than half came in . Plant-based meat, egg, and dairy companies received$ . billioninvestments in . Impossible Foods, founded in in Redwood City, California, raised $ million in funding to develop plant-based meat alternatives. Today it operates a large-scale food manufacturing plant in Oakland. Its products include the Impossible Burger, Impossible Sausage and Impossible Pork, 30% 29% 21% 20% 24% 22% 38% 16% PL ANT -B AS ED PRIMARY PRODUCT STAGE OF PRODUCTION CEL L- BA SED Small-scale Production Commercial-scale Production Pilot Lab Lab Scale Small-scale Production Commercial-scale Production Pilot Lab Lab Scale PERCENTAGE OF PRODUCTS IN EACH PHASE 20% 18% 17% 15% 15% 13% Global Distribution Concept/Consumer Testing Limited National Distribution Broad National Distribution Pilot/Scale-up Limited/Test Markets Source: CRB’s Horizons: Alternative Proteins report S I T E S E L E C T I O N JULY 2021 59 all of which are made from plants. Its products are widely available at Kroger, Lidl and other grocers. Report Quantifi es Progress, Challenges In May, CRB released its “Horizons: Alternative Proteins”report based on survey responses from more than industry leaders weighing in on key issues facing their organizations, from the need to progress to large-scale commercial manufacturing sustainably to navigating regulations as perceptions of a ordability — and taste — change. “What is interesting about the results of the‘Horizons: Alternative Proteins’report is that its ndings managed to pinpoint a key barrier faced by producers of plant- based meat and dairy alternatives long suspected and now known to be true,” said Christopher Shanahan, global agriculture research director at Frost & Sullivan. “It’s not the lack of raw materials but it’s the inherent energy requirement in processing and bottle-necked throughput that is the limiting factor. Better, and smarter, tools and processes are clearly needed to address this growing industrychallenge.” Among the report’s ndings are these: • Scale-up: Nearly three-quarters of respondents say they’ve yet to break through to commercial manufacturing, and those that have are operating with unsustainably narrow costmargins. • Speed to Market : Building manufacturing infrastructure — new buildings and retro ts — is required to seize rst-mover advantages. Respondents indicate they will have an average of capex projects in the next three years. e progression to large- scale commercial manufacturing will require larger budgets and integrated delivery solutions. About four in ve respondents suggested they would consider an end-to-end approach that ranges from design and construction through tovalidation. • Regulation : More than three- quarters of respondents said their companies should follow the same rules that apply to traditional protein products. Over half anticipate new regulations in the next two to three years, and % in the next ve to years. e report, however, reveals confusion over the role of the FDA in regulating alternative proteins and gaps in compliance that could exacerbatechallenges. • Sustainability : Overall, sustainability is considered highly important to a company’s brand mission, with carbon footprint and energy/water consumption among the top concerns. Many respondents indicated they are considering the e ciency of their utility systems and the availability of new technology to help reduce water and energyloads. • Safety and Packaging : While a majority of respondents are handling food safety in-house, most approaches do not directly impact the product’s composition, including environmental controls, hygienic zoning and packaging materialselection. • Alternative Dairy : e cost of goods is by far the top production barrier faced by alternative dairy producers, followed by quality control, lack of hygienic design knowledge or support, cross-contamination challenges and access tocapital. “Interestingly, what companies rank as important attributes for demonstrating sustainability is focused on input and energy source and utilization when it could be argued that focusing on other attributes such as packaging use, distribution and trade, and waste production may yield greater and faster results in terms of meeting sustainability goals and lowering overall costs of production,” added Shanahan of Frost &Sullivan. 60 JULY 2021 S I T E SE L E C T I ON With a robust mix of startups and giants of the aerospace industry, Colorado hopes to become known as America’s “Aerospace Alley.” Now surpassing the states of Florida and Texas, the state has managed to nurture the nation’s second largest aerospace economy, behind only California. And it’s done so quietly, fl ying under the radar, as it were. “Little is spoken about aerospace here in Colorado,” says Major General John Barry, USAF (Ret.), co- founder of the Aerospace Alley initiative announced in October. “ at,” declares Barry, “is all about to change, thanks to the increasing commercialization of space and the sheer amount of training and talent our state brings to the aerospace industry. We’re putting our fl ag in the ground and declaring that we can be the Silicon Valley of aerospace by calling it Aerospace Alley.” Supporters of the eff ort say the parallel is apt: Much in the same way that Silicon Valley earned its title as a result of a large concentration of small tech companies, % of Colorado’s -plus aerospace and aerospace support companies employ fewer than people. It’s an industry that contributes more than $ billion per year to the state economy while employing more than , workers. Aerospace employment in Colorado, according to a report by the Metro Denver Economic Development Corp., by GARY DAUGHTERS gary.daughters@siteselection.com Colorado Makes a Name for Itself The Aerospace Corporation is expanding in Colorado Springs, Colorado. Photo courtesy of Aerospace Corp. AERO SPACE62 JULY 2021 S I T E SE L E C T I ON grew by .% in the four years ending in . Even amid the COVID- pandemic and attendant recession, major aerospace concerns including Lockheed Martin, Ball Aerospace and Raytheon added new employees in Colorado in , as did smaller companies such as satellite builder Blue Canyon, acquired in December by Raytheon Intelligence & Space. Last spring, Blue Canyon workers began moving into an ,-sq.- ft. (,-sq.-m.) factory in Lafayette designed to build satellites a year. e facility, just east of Boulder, is to serve a mix of commercial, military and civil space customers as the company experiences “signifi cant growth,” Blue Canyon said in a statement. A Cluster in Colorado Springs Home to the U.S. Air Force academy and fi ve military installations, Colorado Springs enjoys an aerospace cluster that accounts for more than % of its regional economy, according to the Colorado Springs Chamber of Commerce. In September, the California-based Aerospace Corporation broke ground on a $ million research and development center adjacent to its current operation at the Colorado Springs Airport. e company says the installation, to be completed in , will support some new workers. “ is new, high-tech facility furthers our commitment to supporting our many partners in the Colorado Springs region in advancing our nation’s security in space,” said Steve Isakowitz, Aerospace’s president and CEO. “ e space enterprise is changing faster than ever, and our increased capabilities will be critical in helping our government partners tackle critical problems and shape future concepts for space warfi ghting.” In a statement to Site Selection, a company spokesperson noted collaborations among the Aerospace Corporation and local partners including the United States Space Force, National Reconnaissance Offi ce, NASA and NOAA. “Colorado Springs,” the spokesperson said, “provides a central location to support all our business eff orts.” Elected offi cials representing Colorado cried political foul at the Air Force announcement in January naming the Redstone Arsenal in Huntsville, Alabama, as the preferred location for the U.S. Space Command, currently headquartered at Colorado Springs’ Peterson Air Force Base. e decision, reached during the waning days of the Trump administration, is being investigated by the Defense Department’s Inspector General and the Government Accountability Offi ce of Congress. Soaring Past the Pandemic Military-related investments in helped the global aerospace industry to off set a pandemic- related drop in commercial aircraft production, according to the Aerospace and Defense Industry Outlook by Deloitte. e global professional services network reports a % drop in global aircraft deliveries for as compared to the peak year of . “Defense,” says Robin Lineberger, outgoing leader of Deloitte’s aerospace and defense sector, “has been more immune during this pandemic. Not only that, but we see some countries utilizing their defense industries, and their industrial bases that support it, as somewhat of a stabilizing factor if not an outright stimulus to get money into their economies. We’ve seen that as a bright spot, if you will, despite developments in the broader commercial aviation space.” Lineberger suggests that large aircraft manufacturers take advantage of the present lull in commercial deliveries to retool their processes and supply chains. “Here’s an opportunity for them to step back and look at their operations,” he says, “and enact structural cost changes while things are slow. It’s a good time to utilize the newer and upcoming digital technologies such as supply chain forecasting and various smart factory and IoT solutions to stabilize their platform. ey can position for profi table growth as we begin to see a resurgence in the demand, probably in .” e space sector, says Lineberger, is witnessing rapid growth through the increased production of communications satellites, renewed interest in extra-terrestrial travel and developments in space warfare. e Deloitte analysis says that emerging technologies and trends that are poised to drive the industry as a whole include advanced aerial mobility (drones), hypersonic weapons, electric propulsion and hydrogen-powered aircraft. We’re putting our ag in the ground and declaring that we can be the Silicon Valley of aerospace ...” We’re putting our ag in We’re putting our ag in the ground and declaring We’re putting our ag in — Major General John Barry, USAF (Ret.), Co-founder, Colorado’s Aerospace Alley Initiative64 JULY 2021 S I T E S EL E C T I O N INVES TMENT PROFILE: HUNGARY Hungary intends to become the regional leader in innovation and R&D, which is why the Central European nation plans to spend 3% of its GDP on research and development by 2030. Taxation-related modifications and a new R&D incentive system have been introduced, including the R&D cash subsidy system launched in 2017 by the Hungarian Investment Promotion Agency (HIPA). The national agency provides information on the Hungarian business environment, labor market, location opportunities, incentives (cash incentives and tax allowances) and assistance finding local suppliers. The Hungarian Government provides cash subsidies for R&D activities based on individual government decisions throughout Hungary. This opportunity is available to large enterprises implementing an R&D project (qualified as industrial research and/or experimental development activities by the Hungarian Intellectual Property Office) with a minimum value of €3 million (US$3.6 million). They must create a minimum of 25 new R&D jobs and maintain them for at least two years after completion of the R&D project. The maximum aid is 25% of the eligible costs comprising of depreciation or rental fees of buildings; depreciation of equipment; personnel costs, regarding researchers and developers to the extent of their involvement in the project; costs of material (a maximum 25% of total eligible costs); and costs related to contractual research (a maximum 25% of total eligible costs). In 2019, the pharmaceutical and automotive industries accounted for a combined 59% of R&D expenditure within manufacturing, while the rapidly increasing ICT sector reached almost 12% of the total of R&D spending financed by the business sector in 2019. 2020 saw an increase of 9% in R&D expenditure in Hungary, reaching an overall €2.2 billion ($2.6 billion). The ratio of the Hungarian business sector’s contribution to R&D expenditures was the largest in the region in 2019. Last year, the total number of R&D units was nearly 3,400 while the total headcount of R&D- related employees came to almost 85,000 people. Where Investors Find ‘The Most Talented People’ Continental has an artificial intelligence competence center, a vehicle-dynamics test track, seven factories and a regional tire trade and logistics center in Hungary, employing more than 8,000 people. Its Artificial Intelligence by MARK AREND mark.arend@siteselection.com Ericsson House, Budapest Photos courtesy of HIPA Your R&D Hub in Central and Eastern Europe S I T E S E L E C T I O N JULY 2021 65 This Investment Profile was prepared under the auspices of HIPA, the Hungarian Investment Promotion Agency. For more information, please visit www.hipa.hu. Development Center in Budapest employs more than 100. “Our primary focus is neural network-based software development, and we have all the relevant teams and competencies to support this core area, regarding data management and data engineering, infrastructure and development & operations, framework development and production,” says Dr. Balázs Lóránd, head of the center. “Our mission is to find the best neural network-based solutions and implement them in the automotive industry to provide solutions for highly automated or autonomous vehicles that can save lives on the roads.” Continental’s research and development activities in Hungary are constantly growing; more than 1,000 employees currently work in R&D related jobs. One of the company’s greatest challenges, says Lóránd, is to find the most talented people in artificial intelligence, particularly in advanced driver assistance systems. That challenge is met in Hungary, he says, with its “strong university background and well-known institutes in Budapest. The availability and competitiveness of the workforce was one of the reasons we chose Hungary, along with the attractive investment environment, good infrastructure in Budapest and its power to attract talented people.” Ericsson is one of the largest telecommunications and IT research and software development companies in Hungary with more than 2,000 highly skilled professionals. “It is a key site for driving global product development and lead innovations, enabling Ericsson to maintain its position as an industry and technology leader,” says Roland Jakab, Head of Strategy for Central Europe. “Most of our colleagues work in the Budapest Research and Development Center developing telecommunications networks. We are working with trending technologies such as IoT, 5G, Machine Learning, Artificial Intelligence, Cloud, and future network security. The innovative work by R&D in Hungary contributes hundreds of patents to the global top-quality patent portfolio.” Ericsson established the Hungarian subsidiary in 1990 as the first Ericsson in the former Eastern Bloc, after noting the high level of technical education in the country and Hungary’s specialization within the Eastern Bloc in telecommunication. “Cooperation with local universities is a key factor in our operation,” says Jakab. “Our newly inaugurated HQ building, the Ericsson House in Budapest, is located near the university campus and has close cooperative ties with ELTE Science University and the University of Technology and Economics in Budapest. Many freshly graduated engineers joining Ericsson come directly from the jointly operated research laboratories. And the awarded subsidy contributes to the financial competitiveness of the Hungarian affiliate compared to other Ericsson R&D sites.” GE has been in Hungary for more than 30 years, providing state-of-the-art healthcare, renewable energy, aviation and power generation technology as well as digital solutions and integrated services in its Hungarian plants and offices. It operates four manufacturing sites, two R&D centers and an operations center with close to 4,000 employees. GE invests in R&D in connection with its solutions for healthcare (medical imaging, workflow management and artificial intelligence), aviation (turbofan jet engines component repair) and digital activities. The Budapest-based Digital Technology Hub team is responsible for developing and providing infrastructure and collaboration services for all GE businesses worldwide. “Hungary is well known for its digital capabilities worldwide, and GE can confidently build on the highly qualified, innovative Hungarian workforce available locally and on the investment-friendly economy,” says Endre Ascsillán, vice president for GE CEE. “GE believes in partnership and common growth, and this partnership has enabled Hungary to become a key GE location in Europe.” Ascsillán says Hungary provides a transparent and predictable business and tax environment, stable government, a long history of a strong education system and a stable infrastructure. “Due to its Central European location, the time zone is perfect — CET has coverage with the U.S. as well as with the ASPAC time zone. The Hungarian workforce is highly qualified, has a good level of English, is well educated and is motivated to perform at a level that is competitive worldwide.” Continental develops AI systems for automotive applications in Budapest.66 JULY 2021 S I T E S EL E C T I O N In the world of sustainability, as in any other, there is a difference between talking a good game and executing. A company, community or entire country can set all the environmental, social and governance (ESG) goals it wants. But if there’s no follow- through, all that’s left are some nice murals and a stack of unused recycling bins. Real green progress isn’t always photogenic. That’s why Site Selection’s annual Sustainability Rankings go beyond the cosmetic. We don’t just count solar farms, but the locations and expansions of the plants that build them. We tally LEED- certified buildings, but we also add up brownfield redevelopment funding that’s turning homely plots of poisoned land into usable, livable property. In addition to renewable energy metrics, we cross- reference our corporate facility investments database with CSRHub’s deep research into companies’ corporate social responsibility profiles to see where high-CSR firms have the most presence. The results and the criteria attached to them are displayed in the charts on these pages, with Germany, Canada and the United States topping our Top 10 countries. Illinois, California, Michigan and New York lead the U.S. state index. Greater Toledo, Ohio, ranks first among U.S. metros above Grand Rapids, Michigan, and its fellow Ohio metro Cincinnati (where substantial roles are played by portions of the metro in Kentucky and Indiana). If the flood of corporate sustainability reports doesn’t convince you that the time is now for environmentally and socially aware project investments, then the figures might: With a growing need to mobilize the vast sums of capital needed to meet the UN’s Sustainable Development Goals (SDGs) by 2030, UNCTAD’s World Investment Report 2021 estimates that the value of sustainability-themed investment products — including $1.7 trillion in sustainable funds and over $1 trillion in green bonds — amounted to $3.2 trillion in 2020, up more than 80% from 2019. “In the coming years, the sustainable investment market needs to transform from a niche to a mass market that fully integrates sustainability in business models and culture,” said UNCTAD Director of Investment and Enterprise James Zhan. Corporations are integrating as fast as they can. The Counselors of Real Estate find environmental, social and governance (ESG) at No. 3 among the 10 by ADAM BRUNS adam.bruns@siteselection.com Master sample Pull Quote, to use as a template.” — John Doe, vice president, Sample Company 20 21 SUS T AINABILITY RANKINGS KEEPING IT REAL: GERMANY, ILLINOIS AND TOLEDO TOP THE 2021 SUSTAINABILITY RANKINGS First Solar’s new facility in Lake Township, Ohio, in the Greater Toledo area will produce an enhanced thin film PV module for the utility-scale solar market in the U.S. Photo courtesy of First Solar S I T E S E L E C T I O N JULY 2021 67 top issues affecting real estate in their own new report. “Transformative, enterprise-wide ESG programs in all sectors of real estate can be one of the best ways to reduce carbon emissions, accrete value, and demonstrate reputational value,” says Michel Coulliard, global chair of the Counselors of Real Estate. And where a clean conscience won’t take you, regulations will, starting with Europe’s commitment to reach climate neutrality by 2050, new ESG disclosure requirements in the EU and closer ESG scrutiny by the U.S. Securities and Exchange Commission. Wholly Toledo If green doesn’t immediately come to mind when you think of Northwest Ohio, you might want to think again, starting with the Toledo-Lucas County Sustainability Commission and continuing on to its corporate citizens. The region is home to First Solar’s huge solar module manufacturing complex in Perrysburg, near where the company in early June announced it would add a third plant in nearby Lake Township. The project will scale the company’s Northwest Ohio footprint to a total annual capacity of 6 GW, which is believed to make it the largest fully vertically integrated solar manufacturing complex outside of China. The 1.8 million-sq.-ft. facility is projected to directly create approximately 500 jobs. The jobs impact is more than that, however. The Rudolph Libbe Group, the design/build contractor for the new plant and a longtime partner of the company, will self-perform trades work through its own craftspeople and those at its specialty trades contractor GEM Inc. More than 500 construction jobs will be created by the project too. “As a partner to our solar program since 2003 and a DOE loan guarantee recipient in 2012, this company is a great example of how investment and innovation can build the clean energy future right here at home,” said U.S. Energy Secretary Jennifer M. Granholm, “shoring up American competitiveness and bringing good-paying jobs to all pockets of the country.” The Solar Energy Industries Association, along with more than 100 organizations, in June called on U.S. officials for a 10-year extension of the federal solar Investment Tax Credit in order to compete with manufacturers abroad (translation: China) which are often aided by local and national governments — Arizona-based First Solar is the only company among the world’s 10 largest solar manufacturers to be headquartered in the United States. SEIA President and CEO Abigail Ross Hopper said U.S. companies need a suite of pro-manufacturing policy options designed to provide demand certainty, incentivize investments in production capacity and support ongoing factory production. EAST NORTH CENTRAL 1 Illinois 2 Michigan 3 Ohio 4 Wisconsin 5 Indiana MOUNTAIN 1 Colorado 2 Arizona 3 Nevada 4 Idaho 5 Montana 6 Wyoming 7 New Mexico 8 Utah NORTHEAST 1 New York 2 Massachusetts 3 Pennsylvania 4 Connecticut 5 New Jersey 6 Vermont 7 New Hampshire 8 Maine 9 Rhode Island PACIFIC 1 California 2 Washington 3 Oregon 4 Alaska 5 Hawaii SOUTH ATLANTIC 1 North Carolina 2 Virginia 3 Florida 4 Georgia 5 South Carolina 6 Maryland 7 Dist. of Columbia 8 Delaware 9 West Virginia SOUTH CENTRAL 1 Texas 2 Louisiana 3 Kentucky 4 Oklahoma 5 Mississippi 6 Tennessee 7 Arkansas 8 Alabama WEST NORTH CENTRAL 1 Minnesota 2 Iowa 3 Missouri 4 Nebraska 5 Kansas 5 North Dakota 6 South Dakota REGIONAL CRITERIA: • LEED-certified buildings (number & per capita, USGBC, Registration date - 05/08/2021) • Green industry projects 2018-2020, Conway Projects Database (investments in “green industry” NAICS codes as defined by US BLS; tally & per capita) • Energy Star buildings (number & per capita) • Brownfield grants (tally & per capita) • Brownfield cleanups (tally & per capita) • Renewable energy deployment (score and per-capita score), U.S. Energy Information Administration • Green laws/incentives (DSIRE database, tally & per capita, May 2021) • CSR rankings: Ranking areas by degree of facility investment tracked in 2018-2020 by Conway Projects Database made by companies with high corporate social responsibility ratings as measured by CSRHub • Sharecare Well-Being rankings (2020) • Solar Jobs Census (2020) TOP 10 STATES Rank State 1 Illinois 2 California T3 Michigan T3 New York 5 Minnesota 6 Washington T7 Ohio T7 Massachusetts 9 Texas T10 North Carolina T10 ColoradoNext >