Origis Energy’s William Hearn describes the “ah-ha” moment that led him
to see the solar power industry as “one of the largest economic impact
successes in rural America,” and he explores where it might take us
next.
NAIOP this week released its Economic Impacts of Commercial Real Estate, 2022
U.S. Edition, which stated that the combined economic
contributions of new commercial building development and the
operations of existing commercial buildings in 2021:
Resulted in direct expenditures of $434 billion;
Contributed $1.2 trillion to U.S. GDP;
Generated $418.7 billion in personal earnings;
Supported a total of 8.5 million jobs.
According to the report, “in March and April 2020, the construction
industry lost 1.1 million jobs, or 14.6% of employment; by November
2021, it added back 1 million jobs, leaving a deficit of 115,000
(1.5%) from the pre-recession peak.” A look at NAIOP’s 2021 edition
of the report shows personal earnings shot up 24% from $338.1
billion in 2020.
Among other survey highlights in a NAIOP release:
Office construction expenditures averaged $46 billion over the
past five years (2016-2020). Office activity totaled $40.9
billion in 2021, down 5.9% from 2020 and down 24.9% from 2019.
Industrial (manufacturing) construction expenditures averaged
$25.6 billion over the past five years (2016-2020). Industrial
activity totaled $28.2 billion in 2021, up 81.3% from 2020
($15.5 billion) but down 16.3% from 2019.
Warehouse construction outlays averaged $26 billion over the
past five years (2016-2020). Warehouse activity surged 25.9% in
2021 to total $43.2 billion. Activity was up 43% from 2019.
According to NAIOP, here are the top 10 states by development
impacts (ranked by total output). Site Selection readers will
recognize some familiar names from our annual Governor’s Cups, Prosperity Cup and Business Climate rankings in 2021. —
Adam Bruns
Among other activity in these two hot sectors is the establishment
of 11 new National Artificial Intelligence Research Institutes by
the National Science Foundation.
This $1 billion project on the outskirts of Charlotte was announced
by Indiana-based Eli Lilly & Co. at the same time as a €400 million
(US$446 million), 300-job project in Limerick, Ireland. “Lilly
selected Concord because of the manufacturing technology experience
of the local labor force; its proximity to universities with strong
science, technology, engineering and math (STEM) programs; and its
access to major transportation infrastructure,” the company stated
last week. “In 2020, Lilly announced a $470 million investment in
North Carolina’s Research Triangle Park. In conjunction with this
site, the new facility in Concord will allow the company to
strengthen relationships with local governments and universities and
diversify its growing presence in the state.” Watch for more about
this and other biopharma projects and trends in the
Biopharmaceuticals Industry Report in the March 2022 issue of Site Selection.
In connection to a vaccine packaging deal, Swedish global contract
development and manufacturing organization (CDMO) Recipharm will add
capacity and 30 jobs at its facility in Kaysersberg, where a phased
expansion is taking place. Kaysersberg is one of the company’s
sterile manufacturing facilities across a global portfolio of sites
in France, Germany, India, Israel, Italy, Portugal, Spain, Sweden,
the UK and the U.S. While the site has historically focused on
producing sterile liquids for therapeutic areas including eye care
and ear drops, it will now expand its offerings. “This deal is
indicative of Recipharm’s successful and ongoing product portfolio
diversification,” said Yves Buelens, general manager at Recipharm’s
facility in Kaysersberg, commented: “We’ve invested heavily into new
capabilities that have built on our BFS [blow-fill-seal] expertise
and as a result, strengthened our biotech offering. We are now in a
position to welcome new biopharma projects to the Kaysersberg site.”
Based on a survey of more than 3,000 senior executives around the
globe in 10 industries and nine countries, the 2022
AlixPartners Disruption Index “reveals how business leaders
are responding to the new realities of demographics,
deglobalization, climate change, and technological acceleration,”
says the consultancy. “The survey responses demonstrate how
disruption, which displaces existing businesses, markets, and value
networks in favor of newer ecosystems and relationships, has emerged
as the central challenge for business leaders today.” Among other
findings, 94% of executives say their business model will need to
change in the next three years, and 72% are worried about losing
their jobs. As for the next 12 months, the highest-priority
disruptive force is automation/AI/robotics.
PHOTO OF THE
DAY
Auburn defeated Memphis 31-10 in the 2015 Birmingham Bowl at Legion
Field.
Photo courtesy of Legion
Field
Football fans anticipating the Super Bowl are also anticipating the
withdrawal symptoms they’ll feel afterward. Have no fear, says the
re-formed United States Football League, which last week announced
it will play its 13-week 2022 season in Birmingham. The independent
league is controlled by FOX Sports through NSFL HoldCo, LLC, a new
business entity. “It is not associated or affiliated with the USFL
of the 1980s or its owners,” the league states on its website,
though its eight teams are all resuscitations of team names from
among the 18 teams of that era: The North Division will include the
New Jersey Generals, Michigan Panthers, Pittsburgh Maulers and
Philadelphia Stars. The South will include the Birmingham Stallions,
New Orleans Breakers, Tampa Bay Bandits and Houston Gamblers.
The Birmingham CVB contributed $2 million (including $500,000 each
from the city and from Jefferson County) toward hosting the USFL
season. All USFL games will be played in the $200 million Protective
Stadium and Legion Field (pictured), a stadium known by many as “The
Old Gray Lady” that dates to 1927, once played host to the annual
Iron Bowl between the University of Alabama and Auburn University,
and every year hosts the Magic City Classic, the largest HBCU
classic in the country.
