< Previous148 NOVEMBER 2024 SITE SELECTION development, he said: “First and foremost has been the transformation of the business ecosystem to support all the aspects of supporting the businesses looking to expand here. We need to have sites ready for companies to build on. Virginia had not invested much in site preparation. But since taking office, we have appropriated roughly $550 million for site readiness so that companies can expand quickly.” This included a round of $126 million in state grants for site readiness in August. His second biggest achievement, he said, is “workforce development. That is critically important. Virginia has been recognized as having the best customized workforce development program in America for two years now. We tie workforce development programs to in-demand jobs. That is how we prepare students for careers.” All of this starts, though, with investment in education, says Youngkin. “Education is at the foundation of the future of the commonwealth,” he says. “CNBC rates us as the top state for business and the top state for education. Virginia was very slow to reopen our schools after the pandemic. We were the 46th state to reopen. That resulted in substantial learning loss and a massive increase in chronic absenteeism.” Youngkin says Virginia countered by backing intensive tutoring across the state in third grade and combatting chronic absenteeism. “We brought absenteeism down by 16% in the first year,” he notes. “Test scores improved in 70% of our schools in reading and in 75% of our schools in math. This was both the fastest and biggest recovery in the nation.” Next, he said, came a focus on lowering the cost of living. “We were able to implement record tax relief in our first two years with $5 billion of tax relief,” the governor says, “and we are looking at another $3 billion in relief the next two years. It is critical for Virginians to keep more of their hard- earned money.” Under Youngkin, Virginia has eliminated a 1.5% state tax on groceries and nearly doubled the standard tax deduction for state residents. “We also worked with state universities to keep tuition flat; and we are going to work on housing by supplementing the supply through aggressive workforce housing programs.” Landing more foreign direct investment wins like RBW will continue to be a priority, the governor said. “It is critically important. We have lots of momentum across many industries. LEGO out of Denmark chose Richmond for their only U.S. manufacturing plant; and Topsoe is a Danish advanced hydrogen company that selected Virginia as well.” He points to other international firms like Stihl, Volvo and Framatome that have operated in Virginia for decades, adding, “Having the business ecosystem that understands the needs of international business is how we keep securing these companies.” Wealth Migrating to Smaller Towns Other big wins recently for Virginia include a $200 million expansion by Afton Scientific for a new biopharmaceutical manufacturing facility in Albemarle County; a $54.7 million expansion by ATCC to build a new biomanufacturing plant in Prince William County; and the opening of the new regional headquarters of CNX Resources in Richlands. Demographic researcher Hamilton Lombard at the University of Virginia in Charlottesville says that this current wave of business expansion throughout Virginia is not an anomaly. In fact, he says, the fastest-growing regions of the SITE SELECTION NOVEMBER 2024 149 state are not the most populated ones, but rather outlying areas far away from big cities. According to IRS data, the fastest- growing parts of the state in new business formation from to were the Chesapeake Bay and Eastern Shore, Southwest Virginia, Southside Virginia (Danville), Hampton Roads and Blacksburg-Roanoke-Lynchburg. “In Virginia, rural communities along the Chesapeake Bay led the state with a % faster increase in new business applications compared to the state average, followed by Southwest Virginia at %,” Lombard wrote in his report for UVA. “In contrast, counties in Northern Virginia, the state’s wealthiest and most populous region, saw slower growth in business applications.” In a conversation with Site Selection, Lombard noted that “most of Southwest Virginia growth is happening around Bristol and Kingsport with the younger part of the workforce. People are coming in and creating those jobs. Petersburg, just south of Richmond, had one of the biggest increases in new business formation. It is one of the most aff ordable areas in Greater Richmond. As Northern Virginia’s younger workforce continues to shrink, Virginia is mirroring the rest of the country.” He describes this migration as a fl ight to quality from high-cost locations to low-cost communities with high amenities; and the workers beating this path at the fastest rate are -to--year-olds. “We’re seeing widespread growth in the younger half of the workforce. at has implications for communities,” he says. “If you’re not attracting talent, you’re losing it.” “Workplace training initiatives in the colleges with a focus on industry was by far the most advanced we had witnessed anywhere.” CEO, RBW Sports & Classics Limited — Peter Swain150 NOVEMBER 2024 SITE SELECTION F airlife. Wells Enterprises. HP Hood. What do these three companies have in common besides their reputations as big names in the dairy industry? They each began multi-million-dollar projects in New York State this year. While most associate the Empire State with the hustle and bustle of Wall Street, outside the Big Apple, nearly 3,000 farms contribute to the single largest segment of New York’s agricultural sector: the dairy industry. Ranked No. 5 in the nation for dairy production, New York contributed approximately 16.1 billion pounds of milk in 2023, providing not only an important good but an essential ingredient in many products. Overflowing with Opportunity “Specific competitive advantages that support fairlife’s growth plans in the Greater Rochester, New York, region include access to an abundant, quality milk supply,” explains Matt Hurlbutt, president and CEO at Greater Rochester Enterprise (GRE). “This project will require 80,000 cows to process 5 million pounds of milk daily, which will have a significant positive impact on dairy farmers within 100 miles of the Fairlife production facility.” Fairlife, a brand of ultra-filtered, lactose-free milk distributed by The Coca-Cola Company, joins the more than 250 food and beverage manufacturers — including leading brands such as Barilla, Motts, Constellations Brands, Wegmans Food Markets, and Baldwin Richardsons Foods — located in the Greater Rochester region. “Rochester is conveniently located within 500 miles of one-third of the U.S. and Canadian population, which enables food and beverage manufacturers to be close to major Northeast markets like Boston, New York and Washington, D.C., without the sticker shock that comes from operating a business in a high-cost metro area,” says Hurlbutt. “These companies are in the Greater Rochester region in part because of the strategic location, fully integrated supply chain, unlimited water, robust agricultural and technology assets and low cost of doing business.” Many of these factors drove fairlife to select the Town of Webster for its new 745,000-sq.-ft. facility, which will serve as the company’s flagship Northeast location and the largest dairy production facility in the Northeast. The project represents a $650 million investment and is expected to generate hundreds of local jobs. “The projected economic impact included more than 500 jobs during construction, 250 permanent jobs upon completion and more than 850 dairy jobs to support the expected 5 million pounds of raw whole milk per day sourced from local farms,” says Hurlbutt. “The Greater Rochester region currently employs more than 60,000 in advanced manufacturing, Images courtesy of Greater Rochester Enterprise. Got Milk? New York Does. New York State’s invaluable milk supply secures significant economic wins. by LINDSAY LOPP lindsay.lopp@siteselection.com New York STATE SPOTLIGHTBY THE NUMBERS NEW YORK Higher Ed. R&D Expenditure in $000s: 8,288,819 Number of NCRCs: 6,079 | Percent Improved 2022–23: 9.51% Business Tax Climate Rank Change 2023–2024: 0 Industrial power cost per kWh: $7.55 Total Rev. as Share of Total Expenses, FY 2007-21: 99.0% 2023 Workers’ Comp Index Rate: 2.15 Selected Top Projects by Capital Investment COMPANY CITY INVESTMENT $M GlobalFoundries Malta 1160 The Coca-Cola Co. / fairlife Webster 650 Wells Fargo & Co. New York City 550 Cummins Busti 452 Wells Enterprises Dunkirk 425 Source: Conway Projects Database SITE SELECTION NOVEMBER 2024 151 and the density of skilled engineering and production workers exceeds the national average by %.” Empire State Development is also providing up to $ million in assistance for the fairlife project through the performance-based Excelsior Jobs Tax Credit Program. And the New York Power Authority is providing nearly . MW of low-cost ReCharge NY power in exchange for the job creation commitments. Additionally, New York State will provide $ million through the New York State Environmental Facilities Corporation to help the Town of Webster upgrade its aging wastewater treatment plant and make its operations more environmentally friendly. Hurlbutt says, “ is investment will enable the Town of Webster to replace the aging infrastructure at its existing wastewater treatment facility and make the transition to a water resource recovery facility with additional capabilities to generate new revenue sources, yield direct cost savings and support future growth for other residents and businesses.” According to a press release, the company selected New York following a personal pitch from Governor Kathy Hochul due to the invaluable assistance from government and community partners and the state’s renown as a leader in agribusiness innovation. GRE, the New York State Department of Agriculture and Markets, the Monroe County Industrial Development Agency, the Town of Webster, and Rochester Gas and Electric are also among those who were instrumental in bringing the company to New York State. The Inside Scoop Unlike fairlife, Wells Enterprises has long been located in Upstate New York, experiencing the full benefi ts of the region’s robust dairy industry. In July, the Iowa-based ice cream manufacturer, which was acquired by the Ferrero Group last year, announced that it would be more than doubling the current footprint of its Dunkirk facility. e new ,-sq.-ft. plant is expected to increase its production capabilities to more than four times its current capacity for novelty and packaged ice cream, including recognizable brands such as Blue Bunny, Halo Top, Bomb Pop, and Blue Ribbon Classics. Fortune Business Insights estimates the global ice cream market will reach $. billion in , up from $. billion in . e newly announced $ million expansion includes all new production lines, more than doubling the number of manufacturing lines with high-output capabilities, creating new innovation capabilities, a new chocolate ingredient manufacturing facility, offi ces and more. is project is one of the largest single private investments ever made in Chautauqua County. New York State is supporting the project with up to $ million in Excelsior Jobs Program tax credits and a $ million grant from Empire State Development in exchange for job creation and capital investment commitments. Wells expects to create new jobs and retain approximately full-time positions. “ is expansion is great news for the hundreds of dairy farmers that supply fresh, local milk for the Wells Enterprises ice cream plant, and for Wells Enterprises itself, which has a longstanding tradition of producing some of New York’s fi nest dairy products,” said State Agriculture Commissioner Richard A. Ball in July. “ is will not only help to solidify Wells’ future in Western New York but will also ensure New York State remains a leader in the dairy industry for years to come. I look forward to seeing this project come to fruition.” A rendering of the fairlife facility in Webster. W ith a nod to regionalism that transcends alleged limitations like rivers, state lines and parochial thinking, Site Selection presents this year’s top metro areas along the entire length of the Ohio River corridor. Louisville/Jeff erson County repeats its No. fi nish from last year, with the tri-state Cincinnati region regaining second place from this year’s No. Weirton-Steubenville and Pittsburgh climbing back to No. over this year’s No. Evansville, Indiana. Entering the top after being absent last year are No. Owensboro, Kentucky, and the two metros tied for No. : Salem, Ohio, and Henderson, Kentucky. e rankings are based on points awarded across cumulative and per- capita categories derived from project tallies and project-affi liated capex and job creation numbers from March through mid-August in the Conway Projects Database. Among the top , project tallies were down for the most part. However, the Louisville and Pittsburgh regions’ totals were slightly higher this year. Where Louisville really stands out are higher numbers in total capital investment (up by nearly $ million) and job creation (a total of more than , jobs that is , higher than the previous time period’s total). e bi-state region’s signature city leads the way when project data are viewed through a municipality lens. Forty projects in Louisville proper include headquarters and offi ce investments by Congo Brands ( jobs, $. million invested) and civil engineering fi rm JQOL Global ( jobs, $. million), which has another Kentucky operation in the Ohio River city of Owensboro. Other projects in the city have come from such companies as Stellar Snacks ( jobs, $ million); Isopure; Raytheon; Amazon; Danish manufacturer Linak US and regional champion Papa John’s International, among others. Electric linear actuator manufacturer Linak, which serves markets from health care to furniture to the marine and industrial sectors, is celebrating years in Louisville, having grown from a literal garage to more than , sq. ft. across three buildings “with room by ADAM BRUNS adam.bruns@siteselection.com OHIO RIVER CORRIDOR 152 NOVEMBER 2024 SITE SELECTION Bridge Economies Louisville and Cincinnati top this year’s rankings with major assists from communities across the river. Photo courtesy of Kentucky Tourism SITE SELECTION NOVEMBER 2024 153 to expand on the vast -acre campus,” the company said in June. “ is growing infrastructure is a physical representation of thriving operations and future potential in the market.” Notably, when project data are analyzed by county (including per- capita calculations), the No. county along the entire river corridor is Clark County, Indiana, where projects landed among a population of just over ,. e county that is part of metro Louisville saw most of its projects come to Jeff ersonville, immediately across the bridge from Louisville. In fact, the county did not have to rely on per-capita calculations for its status: Its total investment amount of more than $ billion in projects and total project- related job creation tally of nearly , jobs both outshone fi gures from all other counties touching the river. Two of those projects are $ million investments: one of them a Meta data center and the other a ,-job solar photovoltaic cell manufacturing operation from Canadian Solar announced in fall . “ is is the second of the anticipated long-term investments we expect to make in the U.S. as we think strategically about a local, sustainable and clean energy supply chain and to fulfi ll the long-term requirements of the local-content rules of the recently established IRA,” said Canadian Solar Senior Vice President omas Koerner, referring to the % production and investment tax credits in the federal Infl ation Reduction Act. Both the Meta and Canadian Solar projects are rising at the ,-acre River Ridge Commerce Center, which in was able to claim a nearly $ billion impact on the Indiana economy. Enterprises at the redeveloped military base employed more than , people, with around , more jobs expected to come to the development in the next few years. e latest operation to land there comes from an organization that can keep up with those sorts of numbers: e U.S. Census Bureau’s National Processing Center will consolidate at a new single site from its former multiple-building campus after years in the region. e General Services Administration signed a long-term agreement with Broe Group that will keep the center’s jobs for another years at the new facility. Sundancinnati? Cincinnati may be runner-up to Louisville in this year’s Site Selection rankings, but the Queen City beat out its rival to the southwest in another contest: In September, the Utah- based Sundance Institute announced Cincinnati, Ohio, as one of three fi nalists to host the Sundance Film Festival beginning in . Louisville had competed in the previous round. e other two fi nalists are the Institute’s home base of Park City/Salt Lake City and Boulder, Colorado. e Institute says it will announce its selection of the host city after the Festival has concluded. In a statement, Cincinnati Mayor Aftab Pureval and Film Cincinnati President and CEO Kristen Schlotman said, “As long-time attendees, we believe Cincinnati’s dedication to the arts, hospitality and historic theaters make it a great fi t. We are inspired by the idea of partnering with the Sundance Institute to celebrate the festival’s rich legacy while introducing a dynamic, walkable and accessible new venue.” Among fi lms to be shot in the Cincinnati area in recent months are two projects from Sylvester Stallone, “Alarum” and “ e Epiphany,” both of which received tax credits from the State of Ohio. e Ohio and Kentucky motion picture tax credits provide a refundable tax credit that equals % off on eligible productions. Source: Conway Projects Database Top 10 Metros, Ohio River Corridor RankMetroPopulationProjects Investment (US$M) Jobs 1 Louisville/Jeff erson County, KY-IN 1,284,553 73 2636.1 6747 2 Cincinnati, OH-KY-IN 2,265,051 90 1583.8 3635 3 Weirton-Steubenville, WV-OH 114,235 5 322.0 261 4 Pittsburgh, PA 2,3491,72 48 866.9 2743 5 Evansville, IN 314,038 8 146.8 277 6 Huntington-Ashland, WV-KY-OH 354,304 5 224.6 313 7 Owensboro, KY 121,348 3 238.0 63 8 Salem, OH 100,511 5 44.7 84 8 Henderson, KY 82,320 3 109.0 45 10 Wheeling, WV-OH 136,708 2 96.0 146 Taking Care W hile German-Swiss multinational Liebherr Group’s European customers are served by established distribution centers in Germany and the Netherlands, the international manufacturer’s logistics network expansion into the Americas meant a close look at the southeastern United States. e company in July announced it would acquire around acres of the HIVE Business Park and locate its fi rst U.S. logistics distribution center in Tupelo, Mississippi. e decision came after a strategic site selection process. Tennessee, Arkansas and Mississippi rose as fi nal contenders, but in the end Mississippi took the $ million project win. “ e Liebherr Group conducted a comprehensive analysis of material fl ows, including the access to transport companies, available infrastructure and population, and as a result the Memphis metropolitan area emerged as the ideal region,” says Liebherr Managing Director of Logistics Joerg Stroebele. “After further research, the city of Tupelo was identifi ed as an ideal location.” e city’s geographic position, robust industry ecosystem, workforce base and advanced logistics infrastructure, including proximity to highways and rail connections, were just the ingredients the team hoped to fi nd. While site availability was a key factor in selecting the HIVE Business Park, its existing infrastructure for site connection and rapid preparation for construction work would allow Liebherr to begin building the new facility with ease. With future growth in mind and a potential fi nal investment of up to $. million, additional acreage on hand aff ords space to expand operations at will. “ e continental warehouse in the USA is part of a future global warehouse network,” Stroebele says. “ is will enable the Liebherr Group to off er an improved service for our customers, including faster delivery times, improved reliability, optimized processes and high- quality services through automation with state-of-the-art technology.” Liebherr’s over--million-sq.-ft. logistics center will handle warehousing, distribution, customs and exporting and services like pre-assembly, kitting and repackaging by . Products housed at the distribution facility include earthmoving machinery, concrete technology, tower cranes and maritime cranes. Additional products may be introduced upon an increased fi nal investment, although Stroebele says those details are still in discussion. Construction work has begun for the project and will create new direct jobs once complete, which could scale by ALEXIS ELMORE alexis.elmore@siteselection.com Mississippi STATE SPOTLIGHT From speed-to-market to life-saving research, Mississippi has the infrastructure in place. Liebherr’s Tupelo campus could bring over $200 million and up to 300 jobs to a logistics site handling everything from cranes (the 440 HC-L model is shown) to earthmoving machinery. Image courtesy of Liebherr Group 154 NOVEMBER 2024 SITE SELECTION of Your NeedsTaking Careof Your Needsto a total of jobs following a project investment boost. e Mississippi Development Authority (MDA) will provide the project with its Mississippi Flexible Tax Incentive. Lee County, the City of Tupelo and MDA will also supply assistance for construction and equipment needs for the facility. “Among many other criteria, incentives were only one factor,” says Stroebele. “ e decision was primarily driven by a thorough cost-benefi t analysis, the long- term development of our strategic plan for the entire region and the settlement of existing and future companies.” Alternative Explorations Since , the University of Mississippi has received funding from the National Institute of Drug Abuse (NIDA) to grow cannabis and provide cannabinoid materials such as cigarettes, extracts and purifi ed cannabinoids for research taking place around the nation. is funding focused on task orders specifi c to federal projects without room for further exploration. In April , Senate Bill was approved by Mississippi Governor Tate Reeves to establish the separate Mississippi Medical Cannabis Research Program at the university’s National Center for Cannabis Research and Education (NCCRE) to explore the therapeutic benefi ts of medical cannabis. e program began in July and over the next year appropriates $. million to researchers at the university’s School of Pharmacy. Over , patients are enrolled in the Mississippi Department of Health’s Medical Cannabis Program. “We are hopeful that our eff orts will ultimately lead to economic development in this fi eld,” says NCCRE Director Robert Welch. “ ere still exists a stigma for using cannabis products, especially smoking. e variety of products available at licensed medical cannabis dispensaries has helped to curb the stigma because consumers and patients now don’t have to smoke, but can take gummies, tinctures, capsules and more. However, our research and educational eff orts are focused on elucidating the positive and negative health eff ects of all these products, as well as demonstrating the diff erences among the diff erent formulations.” Development of a Purifi ed CBD Extract Product, which UM researchers have placed into a refractory epilepsy study at the university’s Medical Center in Jackson, will also grow under this program. e goal is to expand its development and implementation toward other diseases and medical conditions. SITE SELECTION NOVEMBER 2024 155 BY THE NUMBERS MISSISSIPPI Higher Ed. R&D Expenditure in $000s: 566,358 Number of NCRCs: 217,720 | Percent Improved 2022–23: 18.87% Business Tax Climate Rank Change 2023–2024: +10 Industrial power cost per kWh: $6.71 Total Rev. as Share of Total Expenses, FY 2007-21: 103.6% 2021 Workers’ Comp Index Rate: .98 Selected Top Projects by Capital Investment COMPANY CITY INVESTMENT $M Amazon Web Services Madison 10,000 Steel Dynamics Columbus 2,500 Aluminum Dynamics Columbus 2,111 Cummins / Daimler Truck / Paccar / EVE Energy Co. Byhalia 1,900 Huber Engineered Woods LLC Shuqualak 418 Source: Conway Projects Database156 NOVEMBER 2024 SITE SELECTION E arning a designation as one of U.S. tech hubs established through the CHIPS and Science Act is no small feat. Out of nearly applicants, the American Aerospace Materials Manufacturing Center in Spokane, the No. largest aerospace cluster in the nation, was one of the few selected. Nearly Spokane-area organizations — including businesses, universities, tribes and labor unions — collaborated on the proposal, marking a pivotal win for the Inland Northwest. Matching the Momentum Collins Aerospace is among the more than aerospace suppliers within miles of Spokane. For the last years, the subsidiary of RTX has grown alongside the region’s burgeoning cluster, playing a signifi cant role in the local economy. At the company’s Spokane operations — one of three facilities nationally that play a role in carbon brake production — engineers and technicians have spent the last two-and-a-half decades manufacturing carbon-carbon composite (C/C) brakes for aircraft. “C/C brakes are engineered to be lighter weight and work complementary with other Collins-made programs, such as Ascentia,” a software used to determine a predictable maintenance period, says Nichol Savko, a licensed professional engineer and the general manager and director of operations at Collins’ Spokane facility. “ e more ways we discover to remove weight from the aircraft, the less fuel the aircraft requires. is, in turn, increases overall cost savings for the customer.” With the growing demand for this innovative product, Collins initiated a $ million investment last May to expand its Spokane operations over a multi-year period. e company plans to add , sq. ft. of manufacturing space, expanding the site’s footprint by %. “Collins’ strategic goals are focused on continued support for our customers: Airbus, Boeing and the U.S. government. We project strong growth ahead and this expansion will support our customers’ critical missions,” says Savko. Washington STATE SPOTLIGHT Total Rev. as Share of Total Expenses, FY 2007-21: 101.8% Industrial power cost per kWh: $6.17 2023 Workers’ Comp Index Rate: 1.31 Number of NCRCs: 6,218 | Percent Improved 2022–23: 5.32% Higher Ed. R&D Expenditure in $000s: 1,975,559 Business Tax Climate Rank Change 2023–2024: -7 Selected Top Projects by Capital Investment COMPANY CITY INVESTMENT $M BP America Blaine 1,500 Atlas Agro North America Corp. Richland 1,000 Group14 Technologies Moses Lake 614 Amazon.Com Arlington 355 Drax Group Longview 350 Source: Conway Projects Database BY THE NUMBERS WASHINGTON Photo: Getty Images by LINDSAY LOPP lindsay.lopp@siteselection.com e city continues to ring up signifi cant aerospace accomplishments. Spokane’s Reaching NEW HEIGHTS SITE SELECTION NOVEMBER 2024 157 While the company supports the tech hub designation, Savko says that it held no sway in their decision to expand in Spokane, as many of the factors that fueled this expansion align with the original reasons the location was sited 25 years ago. “This is an existing facility in an area with strong infrastructure and utilities, low humidity and [which] continues to have a strong talent pool,” explains Savko. “The Santa Fe Springs, California, site is a more specialized site, with lower production volumes. Pueblo, Colorado, manages large commercial programs, military programs and R&D capabilities. And Spokane is our second- largest site and has a higher commercial volume. This expansion balances Pueblo and Spokane in terms of size and customer demand.” Managing the Machine Although the new facility will be outfitted with innovative automation equipment, including high-tech distributed control systems (DCS), Savko stresses that this technology is designed to assist employees, not replace them. It’s easy to think of these tools as possibly replacing human jobs, he says, “but more and more, these types of advancements are removing humans from positions with repetitive movements or situations where a machine is better suited. “The positive result,” he says, “is that you have a person who is then managing the machine, managing critical maintenance and updates. So that person is then problem-solving and stepping in to provide strategic oversight that cannot be replaced by a machine.” Once the initial phase of this project is completed in 2027, Collins’ plans to hire an additional 80 employees, primarily machining, coating and control room operators; chemical, mechanical, controls and industrial engineers; PLC, CNC and automation technicians; and specialized maintenance mechanics. “We have been actively developing relationships with local schools, high school CTE [career & technical education] programs and college technical programs, as well as sponsoring initiatives such as the Production Manufacturing Institute, which gives high school students a summer experience learning manufacturing skills across the region,” says Savko. “Building the pipeline in Spokane is important to me. It’s about employing those who live in the same community as I do. There are a lot of opportunities within Collins and starting at the high school level is a good place to make kids aware of opportunities they may be unfamiliar with.” On August 27, local government officials and community leaders joined Collins leadership for a groundbreaking ceremony. Next >