< Previous44 JULY 2024 SITE SELECTION Report reveals challenges and opportunities. F or life sciences companies, CBRE’s newly released annual report on talent across the sector includes some highly salient findings. While absent major surprises, the report released June 5 provides granular level insights into the Top 100 life sciences markets — up from 75 in CBRE’s previous two such studies. Further, the commercial real estate consultancy expanded the scope of its study beyond research & development talent to include talent pipelines in manufacturing and medical technology. The top takeaway, says CBRE, is that despite sluggish growth within the industry since the onset of interest rate increases, demand for life sciences professionals remains strong. “Securing top talent remains a challenge,” said Ian Anderson, CBRE senior director of research, in a tightly conducted webinar introducing the report. “Even in the near term we are expecting that this challenge will persist.” No shocker, the top market for life sciences talent remains Boston/Cambridge, placing as it did first for R&D talent, second in the manufacturing subsector and third for med-tech talent. Six other markets ranked within the Top 10 across all three subsectors. In order, they are San Francisco, New York/New Jersey, Los Angeles/Orange County, San Diego, Philadelphia and Chicago. Broken down by subsector, Boston’s top ranking for R&D talent is followed by San Francisco, the Washington/Baltimore region, New York/ New Jersey and Los Angeles/Orange County. The by GARY DAUGHTERS gary.daughters@siteselection.com WORKFORCE Top Markets for Life Sciences Talent Photo: Getty Images46 JULY 2024 SITE SELECTION manufacturing talent subsector is paced by New York/New Jersey, followed as noted by Boston/ Cambridge, Chicago, Houston and San Francisco Bay. Los Angeles/Orange County leads the med- tech talent subsector, followed by med-tech stalwart Minneapolis, Boston/Cambridge, San Francisco Bay and New York/New Jersey. Talent Ecosystems Extend Beyond MSAs CBRE analysts advise that life sciences ventures large and small evaluate talent ecosystems that, like the tentacles of an octopus, spread out from the center. “Generally speaking,” said Anderson, “when we and other analysts examine the sector, we evaluate these markets by metropolitan statistical areas. In reality, many times these markets benefit from adjacent markets closer to them that may not obviously be a part of the same MSA.” Anderson asserts, for example, that the Colorado ecosystem is not a series of isolated life sciences markets, but an agglomeration that builds upon itself. “Denver/Boulder benefits from the other emerging talent coming from Fort Collins,” he says, “as well as some of the existing talent in Colorado Springs and other areas. They all work together and benefit from each other’s synergies and talent spillover.” Anderson also mentioned San Jose and Oakland as contributors to the Bay Area ecosystem and Providence, Rhode Island, and Springfield and Worcester, Massachusetts, as propellants for the Boston metro. Ann-Stewart Patterson, CBRE executive vice president for Raleigh, North Carolina, weighed in on the expansion of life sciences talent outside the booming Research Triangle. “We do have a tremendous amount of talent coming into our market from UNC Chapel Hill, Duke and NC State,” she said. “But we also have an ecosystem with graduates from universities in Virginia coming here looking for jobs, very similar to what you see in the Bay Area. We have a lot of companies that are hiring.” Up-and-Coming Markets Madison, Wisconsin, and Trenton, New Jersey, are newcomers to CBRE’s Top 25. Both markets, the report found, have highly educated workforces supported by prestigious universities including Princeton and the University of Wisconsin-Madison. Madison, according to the findings, has the highest concentration of microbiologists, chemists and biological technicians within the Top 100 markets, while Trenton boasts the highest concentration of epidemiologists and one of the highest for chemists, biochemists and biophysicists. The report also identified five markets outside the Top 100 for demonstrating notable promise as havens for emerging talent. They include Santa Cruz, California; College Station, Texas; Fort Collins, Colorado; Gainesville, Florida; and Charlottesville, Virginia. “All five,” said Anderson, “have significant research institutions and all receive an attractive amount of funding from the National Institutes of Health for health care and life sciences research. We’ll be keeping our eyes on these in the future.” TOP LIFE SCIENCES MARKETS RANK R&D MANUFACTURING MEDTECH 1 Boston/Cambridge New York/New Jersey LA/Orange County 2 San Francisco Bay Area Boston/Cambridge Minneapolis 3 Washington, D.C./Baltimore Chicago Boston/Cambridge 4 New York/New Jersey Houston San Francisco Bay Area 5 LA/Orange County San Francisco Bay Area New York/New Jersey 6 Raleigh-Durham LA/Orange County San Diego 7 San Diego Philadelphia Chicago 8 Philadelphia San Diego Salt Lake City 9 Seattle Washington, D.C./Baltimore Philadelphia 10 Chicago Dallas/Fort Worth Raleigh-Durham Source: CBRE/Richard Nenoff‘Rock Stars’ Take Center Stage e importance of universities was a theme throughout the half-hour briefi ng held June . Dan Lyne of CBRE’s Midwest Division off ered intriguing insights into the vital role of prominent academicians in attracting emerging talent into the classroom and, more broadly, into the overall ecosystem. “ e phenotype of your academic researcher has changed dramatically over the past decade,” Lyne observed. “ ey aren’t just sitting inside the curriculum of the university but have multiple companies that they’ve either founded or where they sit on the board. Universities have to go out of their way to attract those individuals in order to also attract the student type that they want.” As an example, Lyne cited Northwestern University’s lengthy eff ort to recruit Shana O. Kelley, the renowned Canadian biomedical engineer, to serve as the school’s Neena Schwartz Professor of Chemistry and Biomedical Engineering. “Shana,” said Lyne, “brings with her the companies that she has been working with, and those companies are attracting talent into the Chicago market that otherwise wouldn’t be coming in.” In December, the prestigious Chan Zuckerberg Initiative tapped Chicago as a national biomedical research hub — with Kelley serving as president — to explore new methods of understanding and treating infl ammation. CZI selected Chicago through a highly competitive process that included applicants. “ is makes Chicago an epicenter of global research into something we frankly still don’t know that much about. And it has the potential to bring even more talent into the market. It cannot be overstated,” said Lyne, “the role that some of these major academic rock stars are playing in the ecosystem.” Securing top talent remains a challenge.” — Ian Anderson , CBRE Senior Director of Research erwise wouldn’t be coming in.” Securing top talent nt otherwise wouldn’t be coming in.”INVESTMENT PROFILE: MARYLAND But climate tech is totally Maryland. L ed by Gov. Wes Moore, a delegation of Maryland’s senior elected officials turned out in March to help Blink Charging Co. celebrate the launch of its new global headquarters and manufacturing operation in the Washington, D.C., suburb of Bowie. Their presence sent an unmistakable signal to the multi- service EV charging venture, previously headquartered in Miami. “The whole company got the feeling that Maryland really wants us here,” recalls Harjinder Bhade, Blink’s chief technology officer. “The warm welcome has ignited immediate collaboration on important sustainability initiatives together.” And yes, Maryland truly does want Blink and other early-stage entrants in the climate tech space. Discerning a potentially massive opportunity that skews toward Maryland’s strengths, officials have dusted off and are refining a playbook that helped to establish the state as an undisputed global leader in the biotechnology sphere, with more than 3,600 life sciences companies now pursuing ground-breaking solutions. “Ten or 15 years ago when Maryland came into its own in the biotech arena, it was a targeted effort by the state,” says Katherine Magruder, executive director of Maryland Clean Energy Center, the statewide umbrella organization whose mission is to advance clean energy and energy efficient products and services. “What we’re looking at here is a similar model but with climate tech. We’re putting everything in place to make Maryland a leader. Maryland,” Magruder adds, “is a knowledge economy, and the jobs we will create and bring here are going to leverage our workforce, one of the most highly educated in the country.” Recently having established some of the nation’s most aggressive climate goals — with a target of net-zero carbon emissions by 2045 — Gov. Moore and his team are actively crafting new programs and funding streams to build out Maryland’s climate tech ecosystem. “The governor is backing up the climate goals with over 40 statewide by GARY DAUGHTERS gary.daughters@siteselection.com 48 JULY 2024 SITE SELECTION It Starts With The Man in Charge It Starts With The Man in Charge Gov. Wes Moore welcomes Blink Charging to Maryland. Photo courtesy of Blink Charging Co.initiatives and more being developed every day,” says Ryan Powell, energy program manager in the Offi ce of Strategic Industries and Entrepreneurship at the Maryland Department of Commerce. “ ere is a lot of goodwill and, more importantly, a lot of money that’s being pushed into this area to help the industry grow and thrive.” Breeding Ground for Brainy Startups Attracting established companies like Blink is part of a larger project built around eff orts to nurture startups in the climate tech space. Before moving to the Commerce Department, Powell headed up a biofuels startup incubated at the Maryland Energy Innovation Accelerator (MEIA), a project of the Clean Energy Center. “I can say without qualifi cation that it’s the best accelerator I’ve ever been a part of,” Powell tells Site Selection. MEIA helps climate tech innovators develop and commercialize their ideas through services such as Energy Executives in Residence, a program that pairs participants with experienced energy entrepreneurs to create business models, identify customer bases and align their technologies with emerging needs. “It’s diff erent than the typical incubator approach,” says Magruder. “We start with technologies discovered in labs and universities and then we wrap executive expertise around them to pull the product to market. We’re helping these companies with business model canvases, pitch decks, marketing, logo development, legal and accounting, all moving very quickly. “It’s a highly personalized approach with a lot of hand holding,” Magruder says. “We let our cohorts interview the executives in residence and decide who they want to work with. We don’t force it on them. I think that’s part of the secret sauce.” MEIA works in close collaboration with the Maryland Energy Innovation Institute (MEII), which has awarded $. million in energy seed grants since its inception in . Together, the two programs have established an energy innovation ecosystem that has produced new companies that have garnered $ million in private investment and created more than high-paying jobs. Early-stage companies taking part in the MEIA and MEII programs have produced innovations in areas including energy storage systems, fuel cell technologies, advanced materials, energy effi cient buildings and carbon sequestration. Great Location, ‘Amazing’ Partner Ion Storage Systems (ION), a battery storage company spun out of the University of Maryland, is among the top success stories produced by Maryland’s full court press on climate tech. A recipient of a $ million state grant, the company now resides in spacious quarters in Beltsville, just a few miles from UMD, from which it hires some of its specialists. Commissioned in May, the new headquarters is one of the largest solid-state battery manufacturing facilities in the U.S. Bolstered by $ million in Series A venture capital funding, ION secured a contract to provide a small yet powerful battery for Army combat troops, a light-weight charger free of the risk of explosion presented by lithium-ion counterparts. “Everybody wants a better battery that’s also safe,” says Ricky Hanna, the company’s CEO. “ at’s exactly what we have here at Ion Storage Systems.” e company plans to expand incrementally into consumer products, EVs and, eventually, grid storage. As with other tech companies rushing to the D.C. metro, ION sees a huge advantage in being close to the nation’s political leadership. “ e people I’m trying to sell batteries to are in the Pentagon, the White House or Congress, and they’re minutes away. ey can jump in a car and come visit. I’m meeting face-to-face with the decision makers, and if I were in Texas I couldn’t do that. What we have in Maryland is a great strategic location.” And, says Hanna, a “fantastic” partner in the state. “I literally just got off a conference call this morning with delegates and senators at the state level and the Maryland Commerce Department,” Hanna relates. “ ey’re asking ‘How can we help you, how can we attract other startups, how can we copy what we did for biotech and put it into green energy?’ “It’s great that they’re asking my opinion,” Hanna says, “because what will work for me will work for other startups. I’ve worked in a lot of places, and the way that Maryland is pulling in the startup world is absolutely amazing.” SITE SELECTION JULY 2024 49 e whole company got the feeling that Maryland really wants us here.” — Harjinder Bhade , CTO, Blink Charging Company e whole ll ted e This Investment Profile was prepared under the auspices of the Maryland Marketing Partnership. For more information, please contact Ryan Powell at ryan.powell1@maryland.gov or visit business.maryland.gov/energy.ADVANCED MANUFACTURING ocation analysis applications of quantum computing have yet to be developed, but that day will come. Still an emerging science, quantum computing operates at the atomic level to solve computations at speeds that put supercomputers to shame. e Quantum Insider, a media and market intelligence outlet dedicated to quantum computing, put it this way in December : “Harnessing specialized hardware and software, quantum computers are expected to have the capacity to execute tasks that presently lie beyond the reach of conventional computers. Furthermore, quantum computing companies are actively crafting technologies to enhance the accessibility and usability of this state-of-the-art technology.” Pick a major computer company, or one of many smaller ones, and it’s more than likely working on quantum computing hardware or software. eir work will result in such quantum computing applications as fi nancial modeling, artifi cial intelligence, battery technology, drug development and discovery of electronic materials, among others. Quantum consortia of many stripes can be found around the U.S. and elsewhere. In October , the U.S. Department of Commerce’s Economic Development Administration named Tech Hubs around the U.S. to strengthen economic and national security and cultivate emerging industries. Two, which are multistate Hubs, are Elevate Quantum in Colorado, New Mexico and Wyoming, and the Chicago Quantum Exchange in Illinois, Indiana and Wisconsin. ese, along with growing quantum computing sectors in Montana, Virginia, California and other states, point to locations that will be glad they facilitated the corporate, academic and scientifi c synergies necessary to land capital investment in this fi eld, and they will in all likelihood attract more in the future. “We’re seeing companies working on prototypes, and they’re looking for research centers and the by MARK AREND mark.arend@siteselection.com Where Is Taking Root QUANTUM COMPUTING L IonQ is a leading maker of single core quantum processors, such as Forte. Photo courtesy of IonQ 50 JULY 2024 SITE SELECTIONscientifi c talent they require more than locations that can deliver lots of manufacturing workers at this time,” says Tracey Hyatt Bosman, managing director at BLS & Co., a site selection and incentives advisory fi rm. Locations that have high- tech clusters in place are well-positioned to benefi t from the growth of quantum computing, she points out. “Quantum technology is much broader than just the computing aspect, so these IT centers are showing that they have the expertise in place for the next wave of innovation.” Who’s Investing Where? Corporate investment in quantum computing facilities is now getting under way. In February, College Park, Maryland-based IonQ, a leading N o advanced manufacturing update in today’s hot environment for semiconductor investment can be complete without a chips update. Here are brief summaries of news in the microelectronics sector: When the Biden-Harris Administration in June announced that the Department of Commerce and New Mexico’s Rocket Lab, the parent company of space power provider SolAero Technologies Corp., had signed a non-binding preliminary memorandum of terms (PMT) to provide up to $23.9 million in direct funding under the CHIPS and Science Act, it was the 10th PMT signed to date with more expected throughout 2024. (For more on Rocket Lab, see p. 28.) In May, Commerce announced a PMT that would provide up to $120 million to Polar Semiconductor for the company’s expansion in Bloomington, Minnesota. The proposed CHIPS funding supports an investment of more than $525 million, catalyzing contributions from the company, state and local entities, and private investors. In addition to enabling Polar to double its U.S. production capacity of sensor and power chips within two years, the proposed investment “would bring in more U.S. private capital,” said a Commerce release, “which would transform Polar from a majority foreign- owned in-house manufacturer to a majority U.S.-owned commercial foundry, expanding opportunities for U.S. chip designers to innovate and produce technologies domestically.” Support for the expansion includes $75 million from the Minnesota Department of Employment and Economic Development (DEED). Like Minnesota, Oregon — a state with a long chip manufacturing resume — has its own program in place to coordinate with the federal CHIPS Act. In June, Governor Tina Kotek announced that Analog Devices, Inc. (ADI), Lam Research, and Siltronic have fi nalized Oregon CHIPS Act contracts to support expansion and modernization of semiconductor manufacturing and research. Lam Research is receiving $22 million for the construction of a new R&D facility on its Tualatin campus. ADI is receiving $12 million for expansion of its Beaverton facility. Siltronic is receiving $2.2 million for modernization and expansion of its Portland facility. Signed into law during the 2023 legislative session, the Oregon CHIPS Act dedicates $240 million to a grant and loan program to support semiconductor businesses looking to expand in Oregon, and funds $10 million to help communities prepare land for manufacturing sites and $10 million for a University Innovation Research fund that will help public universities secure federal research grants. A roadmap strategy for a $5 billion National Semiconductor Technology Center (NSTC) organization and network was released in late May by NIST. The NSTC is operated by Natcast, a purpose-built, non-profi t entity that works in tandem with the CHIPS NSTC Program, which sits within the Department of Commerce. Announcements will be made this summer about a planned workforce center of excellence and about the facility model and selection process for the NSTC overall. A membership structure for the NSTC is expected to be announced this summer and open for applications by fall. More than 240 organizations already have signed up. CHIPS ON THE SIDE 52 JULY 2024 SITE SELECTION Photo: Getty ImagesNext >