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January 2012

Digital Edition

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Cover Story

STATE OF THE STATES 2012

The status of the United States as a nation owes much if not most of its character to the livelihoods of its individual members. In 2011, for the first time in 10 years, states reported that they cut taxes more than they increased them, reports the National Council of State Legislatures.

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Features

Fuel Costs Now Drive D.C. Site Decisions

Companies are increasingly citing fuel savings among the prime reasons for recent distribution center location decisions. One example is AWG (Associated Wholesale Grocers), a retailer-owned cooperative based in Kansas City, Kan. AWG is building its seventh grocery distribution center on a 68-acre (28-hectare) site in Pearl River, La.

How Shale Gas Is Redefining the U.S. Energy Landscape

Game-changing increases in natural gas supply require pipeline networks of game-changing reach and new facilities from which to export much of it to high-demand regions globally. In 2009, the United States passed Russia to become the world’s leader in natural gas production.

Game Changers

A look at two places where the digital media stars align: the video game industry is thriving and creating lots of high-paying jobs. Two areas that fall into this category are Pittsburgh, Pennsylvania and a Utah technology corridor anchored by Salt Lake City stretching north to Ogden and south to Provo.

Home Advantage

Employment of home-based agents continues to be a growing trend in the contact center world. Some traditional brick-and-mortar contact center operators use home agents to supplement their centers, while several companies employ home agents exclusively.

Dealing With the Squeeze

Government cutbacks spur site selectors to seek locations with strong balance sheets. A new era of fiscal austerity — from the federal level on down — is prompting site selection consultants to steer an increasing number of projects toward destinations that have their financial houses in order.

Not Your Father’s Recycling Program

Today’s corporate sustainability has a broader mandate, and a stronger focus on results. The name of the green game today is energy efficiency, cost reduction and return on investment (ROI).

Jack’s Final Chapter

Jack Lyne was an extraordinary writer who perfected his craft by agonizing over every word he wrote. He became the leading editorial voice of a generation of reporters covering the practice of corporate site selection.

Investment Profiles

ESBAS

Located in beautiful Izmir, one of the principal cities on the Mediterranean Sea and Turkey's primary port for exports, ESBAS is home to global powerhouses like Hugo Boss, Fokker Elmo, Pratt & Whitney, PFW, Delphi Diesel, Gates, Mahle, Delphi Packard, Eldor Electronics, Aero and Cummins Inc. Together the companies located within ESBAS generate more than US$5 billion annually in manufacturing and trade.

Fertile Ground, Active Minds

Centuries of innovation cement Thuringia as leader in advanced manufacturing. Bosch Solar Energy AG has more than tripled the size of its work force here in only three years.

International

Powerhouse

IBM’s 2011 Global Location Trends report, released in November, sheds light on how Mexico remains the leading recipient of foreign investment in Latin America.

Asia’s ‘Sun Belt’ Lures New Projects

Japan’s Panasonic Corp. is one of the latest multinationals to toss its hat in Malaysia’s solar industry ring. Malaysia’s Kulim Hi-Tech Park, which is becoming a nexus for solar module production, is also home to high-tech companies such as Infineon.

Tarsands Testimonial

Economist Thomas Faranda, in a spring 2011 talk before the Industrial Asset Management Council, called Canada a sleeping giant, albeit one that’s about to wake up. And its alarm clock is perched on its Western half.

Departments

SITE Visit: Clear Signals

ESPN’s campus in Bristol, Conn., has been expanding ever since the network started 30 years ago. The latest new building, the $100-million Digital Center 2, was announced in August.

Area Spotlights

‘Attractive Jurisdictions’

If North Dakota’s booming economy and 3.5-percent unemployment rate is any indication, there is prosperity to be mined in domestic energy production, and the rest of the Central Plains states are on the brink of realizing some of that prosperity. Much will depend on where the political football that is the Keystone XL pipeline project lands in the coming weeks as federal approval of the project rides the fortunes of pending legislation.

New Wave

Silicon carbide in Starkville. Solar industry components in Senatobia, Grenada and Hattiesburg. Mission support for Lockheed in Clinton. Advanced composites for GE in Ellisville. Process equipment in Natchez. Biofuels from Columbus to Tupelo and beyond.

Campus Quarters

A Chinese solar company has big plans for a former IBM R&D facility. Linuo Solar Group expects to start shining new light in 2012 into the long-vacant IBM West Campus in East Fishkill, N.Y

The Common Denominator Is Jobs

A national laboratory expansion and a new yogurt manufacturing project will deliver significant economic impact to their cities and to Idaho. Several thousand jobs are being attributed to work now getting under way at the Idaho National Laboratory (INL) in Idaho Falls, the centerpiece of which is a new, $50-million, 148,000-sq.-ft. (13,750-sq.-m.) research and education laboratory.

Healthy Expansions

Maine life sciences firms run the gamut from animal care to cloud-based records. IDEXX Laboratories, Westbrook, Athenahealth, more.

Taming the Wild West

Can the land of the wild, wild West become the next high-tech haven of choice? It can if more executives follow the example of Kent Holliday, the founder of Eleutian Technology in Cody, Wyo. The world's largest network of certified instructors who teach English as a second language, Eleutian recently made its home in the town.

Flight to Profitability

Air cargo hubs in the Pacific Northwest help global firms streamline supply chains. For global companies using the Pacific Northwest as a gateway to the Americas, many are increasingly turning to air transport. One reason Anchorage is so popular as an air cargo hub is because it is 9.5 hours or less from 90 percent of the industrialized world.

Let’s Get Cracking

Fifty-six counties and parishes define the U.S. shoreline of the Gulf of Mexico, simultaneously dishing up the Gulf’s bounty and taking what it dishes out. Between October 2009 and October 2011, Greater Houston’s Harris County showed the most new plant and expansion activity among those jurisdictions by a very long shot, followed by Baldwin County, Ala., a slew of Louisiana parishes, and Pinellas County in Tampa-St. Petersburg, Fla.

Where the Tech Jobs Are

The Brookings Institution's December 2011 MetroMonitor report includes Detroit and Grand Rapids in its list of the 20 metros with the strongest economic recoveries, crediting growth in manufacturing activity, particularly associated with production of autos, auto parts and related durable goods.

Material Legacies Converge

Pennsylvania-based stainless steel and premium alloy manufacturer Carpenter Technology Corp. in October chose a 230-acre (93-hectare) site near the Limestone County, Alabama, municipality of Athens, in the Huntsville metro area, for a US$500-million new plant that will make premium alloy products.