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| FROM SITE SELECTION MAGAZINE, JANUARY 2023 ISSUE |
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DELAWARE
Investments from a semiconductor company and a gambling technology company highlight two facets of the Connecticut economy.
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Map courtesy of U.S. Census Bureau
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An experimental data product directly in the wheelhouse of Site Selection stakeholders was released early this month by the U.S. Census Bureau. To be published monthly, the data features monthly construction spending estimates at the Census Division level for private manufacturing. “These estimates measure the construction work done on private new manufacturing structures or improvements to existing structures and include the cost of labor and materials, architectural and engineering work, overhead, interest and taxes paid during construction, and contractor’s profits,” the Bureau stated. “Monthly estimates will be available from January 2017 forward.”
The data come with a caveat befitting the experimental moniker: “Users should take caution using estimates — sample sizes may be small and the standard errors may be large.” Nevertheless, the numbers are there and they say this:
- The preliminary figures for December 2022 indicate the South leads the West, Midwest and Northeast by a long shot, with nearly $4.8 billion of private manufacturing construction put in place. The region’s highest total since December 2021 was in September 2022 at more than $5.1 billion — more than $2 billion higher than the region’s December 2021 total.
- The highest total in December 2022 by sub-region was more than $2.5 billion put in place in the West South Central region (Texas, Louisiana, Oklahoma and Arkansas), just ahead of the eight-state Mountain region (see map).
- Monthly figures have shown healthy and gradual growth in all regions except the Northeast and the Pacific sub-region. Since September the monthly national figures have hovered north of $10.5 billion, with the December preliminary figure of more than $10.6 billion nearly 45% higher than the December 2021 total of $7.36 billion.
For context, examine other construction activity reports from the Bureau. And view the latest annual “Economic Impacts of Commercial Real Estate” report from NAIOP, released January 30. “The combined economic contributions of new commercial building development and the operations of existing commercial buildings in 2022 resulted in direct expenditures of $826.9 billion,” says NAIOP, and the following impacts on the U.S. economy:
- Contributed $2.3 trillion to U.S. gross domestic product (GDP).
- Generated $831.8 billion in personal earnings.
- Supported 15.1 million jobs.
“The data in the report are strong economic indicators of commercial real estate development investment, job growth, and subsequential contributions to the U.S. economy,” said Marc Selvitelli (pictured), president and CEO of NAIOP. “Our success could be met with headwinds as inflation, workforce constraints and higher interest rates create uncertainty. Our Research Foundation, legislative team and education will keep our members and industry professionals informed on these issues and offer resources as the industry navigates potentially choppy waters.”
NAIOP cites Dodge Construction Network data showing a significant (143.4%) increase in non-warehouse (manufacturing) industrial building construction in 2022, making it the largest segment of new commercial real estate construction in 2022. Data behind the report are also downloadable by state. — Adam Bruns
“The data in the report are strong economic indicators of commercial real estate development investment, job growth, and subsequential contributions to the U.S. economy,” says NAIOP President and CEO Marc Selvitelli, pictured here at the organization’s chapter leadership and legislative retreat held in January.
Photo courtesy of NAIOP
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| SITE SELECTION RECOMMENDS |
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One group keeping No. 1 New York City walkable is the staff of the Central Park Conservancy, whose management of the park is key to welcoming 42 million annual visitors — more than the top 10 national parks combined.
Photo from 2022 staff breakfast courtesy of Central Park Conservancy
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Smart Growth America’s 2023 “Foot Traffic Ahead” report “takes stock of the nation’s 35 largest metropolitan areas to identify how walkability in these places has transformed, and how walkable urban places compare across the country,” especially in light of seemingly indelible effects on those places from the pandemic. Among other findings: In the largest 35 metros, walkable urban land comprises only 1.2% of the regions’ total land mass, but accounts for 19.1% of the nation’s annual GDP. “In the top 35 metros, approximately one-third of all jobs are in significant walkable urban places,” the report states.
The report’s rankings find New York at the No. 1 spot, followed by Boston; Washington, D.C.; Seattle and Portland, Oregon. San Francisco, despite its current “urban doom loop” diagnosis, is No. 6, followed by Chicago at No. 7. “These places host the largest concentrations of knowledge economy industries along with large, connected transit systems, and a history of more compact urbanism that pre-dates 1940,” Smart Growth America explains. “For example, Chicago contains most of its walkable urbanism along its MARTA and CTA network. In Boston, the T anchors walkable urbanism in and outside the center city. The same goes for the San Francisco Bay Area with the BART Caltrain and MUNI rail systems.”
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| KANSAS — THE STATE OF UNEXPECTED |
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FOOD PROCESSING
The seeds of food processing success are planted in the soil of the Sunflower State. The seeds of happiness can be found at places like Gella’s Diner in downtown Hays.
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INCUBATORS & ACCELERATORS
Dig into the data from Pitchbook and the National Venture Capital Association and you’ll find Kansas playing a more and more prominent role in sparking innovation.
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United Kingdom
The founders of Munich-based direct-to-consumer e-commerce fulfillment company Alaiko this month were joined by UK Minister of State for Investment Lord Dominic Johnson to announce an expansion to the UK with that includes this warehouse location in Milton Keynes and an office in Birmingham. The company aims to create up to 200 jobs in the UK overall in the next few years. The idea is to smooth the way for re-entry into the UK market post-Brexit by European e-commerce companies. “Regulatory adjustments and streamlined trade processes will greatly benefit German e-commerce companies looking to expand into the UK — and vice versa,” said Moritz Weisbrodt, founder and CEO of Alaiko. “Germany is the UK’s second largest trading partner worldwide and a key ally for free and fair trade,” said Lord Johnson. “Therefore, it is our priority to further strengthen our economic ties with Germany. We look forward to welcoming a greater number of tech companies like Alaiko into the UK’s unrivalled $1 billion tech ecosystem.”
India
Gland Pharma, a maker of generic injectables, has added capabilities to its Pashamylaram facility in the Genome Valley area of Hyderabad. According to press reports, the expansion follows a 200-job investment announced in February 2022. Citing the State of Telanga’s Industries and IT Ministry, The Hindu reports, “Genome Valley, which is India’s first organized cluster for life sciences research and development and clean manufacturing activities, is home to more than 200 companies with a scientific workforce of about 15,000 professionals,” including companies such as Novartis, GlaxoSmithKline, Ferring Pharma, DuPont and Lonza. “We are delighted to collaborate with the government of Telangana on its vision of making the state a hub for global pharmaceutical requirements, by expanding our bio-CDMO facilities in Shamirpet,” said Srinivas Sadu, Gland Pharma CEO. The company currently operates eight manufacturing facilities across India.
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Photo courtesy of Anheuser-Busch
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This photo shows the historic Anheuser-Busch brewery complex in St. Louis, originally opened in the 1850s. It’s just one part of a St. Louis brewing legacy that goes well beyond this one site’s massive acreage. Last year the company committed to a $50 million investment that includes upgrading of one of the can lines and a dedicated seltzer building to house new systems and equipment for brewing products such as Bud Light Seltzer and Michelob ULTRA Organic Seltzer, among others. Additionally, the brewery is being outfitted with advanced technical equipment that allows for the streamlined addition of flavors to the seltzer liquid. The project is part of the company’s 2021 commitment to invest $1 billion in its facilities across 26 states over two years.
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