Money Isn't Everything

There was more to the IBM deal than just cash incentives, however. The state worked with IBM throughout the entire site selection process. More than a year ago, the state approached IBM to expedite the negotiating process, and when the company decided to move forward with the investment, it received a full outline of New York State assistance -- from infrastructure to permits and incentives.
        Permitting turnaround was a crucial component of IBM's decision. Under the state's SEMI-NY program, the environmental review process for the company's Building 233 in the Hudson Valley Research Park in East Fishkill was completed more than two years ago. SEMI-NY provides pre-permitted sites to potential semiconductor manufacturers.
        "Time to market is critical in an investment of this type," says Andrews. "The ability to reduce the cycle time by having pre-permitted sites was influential in our decision."
        In terms of infrastructure, the East Fishkill site enabled IBM to "make extensive use of existing infrastructure, including an empty building shell and an experienced facilities team," notes Andrews. "We also have significant manufacturing skills available in East Fishkill, including the existing Advanced Semiconductor Technology Center development line and our ceramic packaging line."
        Gerstner, in fact, cites the region's skilled work force as a fundamental reason for IBM's investment decision. Though the 1,000-job project has brought forward local concerns of increasingly tighter labor and affordable housing markets, Gerstner expects to be able to find the labor his company needs.
        Many of the new workers are expected to come from IBM's close relationships with programs that train computer researchers at the State University of New York (SUNY) and Rensselear Polytechnic Institute. In fact, the New York State Center for Advanced Thin-Film Technologies at SUNY Albany is planning to build a $300 million research laboratory using technology similar to that at IBM's East Fishkill facility.

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