April 18: Statewide Planning Grant Resiliency Webinar (CREC) Join EDA Statewide Planning Grant recipients for the final topical webinar surrounding grant activities, focused on projects related to economic recovery and resiliency. CREC will present findings from research on the Statewide Planning Grants related to resiliency efforts. The Federated States of Micronesia will share how the funds were used to address an ongoing health crisis. This webinar is funded by EDA. Register here.

April 29: Statewide Planning Grants: Overcoming Roadblocks Webinar (CREC) Join EDA Statewide Planning Grant recipients for this webinar on overcoming project roadblocks. Many states have faced significant challenges when implementing their statewide planning grants; this webinar features presentations from New Jersey and Missouri as they delve into navigating various roadblocks. Learn how to overcome challenges in this and future EDA projects! This webinar is funded by EDA. Register here.

May 9: State Strategies for Successful Rural Projects (CREC) Ellen Harpel from Smart incentives will lead a discussion on how states are preparing for successful rural development projects. Harpel will be joined by Joan Goldstein and Nick Grimley, Vermont Department of Economic Development, Larry Holsgang, Business Oregon, Iain Macdonald, Tallwood Design Institute, and Marcus Kaufman, Oregon Department of Forestry. Learn how state economic development leaders are working with local partners to win and implement impactful rural development projects. Hear about strategies for leveraging federal funding opportunities and positioning rural regions for success. Register here.

News

New Funding for Additional NSF Innovation Engines (NSF) The initial NSF Engines announcement represented one of the single largest broad investments in place-based research and development in the nation’s history — uniquely placing science and technology leadership as the central driver for regional economic competitiveness. This latest funding opportunity advances the bipartisan priorities outlined in the “CHIPS and Science Act of 2022,” which authorized the NSF Engines program. In this round of funding, the NSF Engines program is only accepting proposals for full NSF Engines, competing for up to $160 million over 10 years. Proposers will be asked to submit a letter of intent in place of a concept outline and a short preliminary proposal. New to this round of funding, tribal nations and state and local government agencies are eligible to submit a proposal as the lead organization. Letters of intent are due by June 18, 2024.

DOE Advanced Energy Manufacturing and Recycling Grant Program (MESC) In March 2024, DOE announced the opening of the next Funding Opportunity of the Advanced Energy Manufacturing and Recycling Grant Program with $425 million in funds to support small- and medium-sized manufacturers (SMMs) in coal transition communities. Just about any SMM (with specific eligibility requirements) in a coal community is eligible, regardless of what they are manufacturing – as long as they are making improvements to reduce the greenhouse gas emissions of their facility. Concept Papers are due April 22 (just ~5 pages plus short Excel worksheet); these are required in order to submit a Full Applications due July 1. More information can be found here.

EDA’s Good Jobs Challenge Puts Thousands of Americans to Work (EDA) Since 2022, EDA’s Good Jobs Challenge grantees have been working to significantly improve the lives and livelihoods of Americans across the country. As of December 2023, over 11,000 participants have entered training programs and, as a direct result of the program, over 3,000 people have secured good, quality jobs in high-demand industries like construction, manufacturing, clean tech, forestry, and healthcare. The programs provide training in 31 states and Puerto Rico in 15 different industries. This fiscal year, EDA has been appropriated an additional $25 million in funding for the Good Jobs Challenge, and EDA anticipates releasing a Notice of Funding Opportunity in the coming months. Additionally, the FY25 Budget requested $41 million for the Good Jobs Challenge to continue EDA’s workforce programming.

BEAD Broadband Funding Guide (CORI) The $42.5 billion allocation for building broadband infrastructure from the Broadband Equity, Access, and Deployment (BEAD) program will be transformational for rural communities with long-standing connectivity gaps. Yet, smaller, community-centric internet service providers (ISPs) will face unique challenges compared to national incumbents when applying for BEAD grants. The Center on Rural Innovation has created a suite of BEAD application resources and an interactive mapping tool to help smaller ISPs be more competitive when applying for this historic funding.

DOE Seeking Input on State Partnerships to Enable Grants for SMMs (DOE) The U.S. Department of Energy’s (DOE) Office of Manufacturing and Energy Supply Chains released a Request for Information to better understand how DOE can support small- and medium-sized automotive manufacturers and assembly companies transition from internal combustion engine (ICE) assembly and parts production to assembly and parts production for electric, hybrid, and fuel cell vehicles. This RFI seeks input from local, state, and government-level entities on current and/or new potential state-federal partnerships that could enable federal funding to reach automotive SMMs embarking on the transition to serve the electric, hybrid, or fuel cell vehicle supply chains. Responses to this RFI must be submitted on May 20, 2024.

*Economy 💰*

Facts That Help Explain a Confusing Economic Moment (The New York Times) Recent economic news may appear disappointing, but when looked at in the longer run, the economic outlook has shifted in subtle but important ways. Inflation, for example, has slowed, but has not reached policy goals. The recent leveling-off in inflation would be a big concern if it were accompanied by rising unemployment or other signs of economic trouble, but that is not what is happening. Outside of inflation, most of recent economic news has been reassuring.

Research, Partnerships, and TA Between EDDs and Higher Education Institutions Tip Sheet (NADO) Higher Education Institutions (HEIs) offer unique resources that help increase the capacity of EDDs to carry out their work, including specialized research, training programs, technology transfer, and commercialization capabilities. Explore this piece, written by Economic Development District Community of Practice project partner UEDA, for tips on initiating, improving, and sustaining partnerships between EDDs and HEIs.

A New Way to Measure the Drivers of Consumer Inflation Expectations (Brookings) Understanding how households form their inflation expectations is of critical interest to central bankers, who often try to influence expectations through their monetary policy actions and communications. The Federal Reserve, like many other central banks, conducts and monitors a variety of expectations surveys, including the Federal Reserve Bank of New York’s Survey of Consumer Expectations (SCE). Since June 2013, the SCE has surveyed approximately 1,300 household heads each month. Thus, the effect on inflation expectations of any event from June 2013 through December 2021 can be studied, analyzing changes in expectations over time and studying the effect on inflation expectations of any event that occurred in this period. This is helpful to understand how consumers associate news with inflation. This methodology can be used in future studies to interpret the effects of the news, including political and pandemic-related events, on expectations.

What the Baltimore Bridge Collapse Means for the U.S. Economy (Business Insider) The collapse of the Francis Scott Key Bridge in Baltimore, Maryland is a reminder that the economy remains vulnerable to sudden supply-chain shocks. While the disaster is unlikely to have a tangible effect on headline GDP growth or inflation, it could affect specific sectors by driving up shipping and trucking costs and affect employment in Baltimore. The port of Baltimore is the busiest for “roll-on/roll-off” cargo, which includes cars, light trucks, and agricultural and construction equipment. If it stays shut for some time, then companies face higher costs by having to reroute goods. The accident highlights shipping and trade’s sensitivity to unpredictable events.

*Trade 📈*

U.S. Trade Deficit Widens in February on Strong Imports (Reuters) The U.S. trade deficit widened for a second straight month in February as an increase in exports to a record high was offset by surging imports, suggesting trade could be a drag on economic growth in the first quarter. The trade deficit increased 1.9% to $68.9 billion, the Commerce Department’s Bureau of Economic Analysis said. Data for January was revised slightly to show the trade gap rising to $67.6 billion instead of $67.4 billion as previously reported. Most of the imported goods likely ended up as inventories, which could offset the anticipated hit on gross domestic product from the widening trade gap.

WTO Forecasts Rebound in Global Trade, But Warns of Downside Risks (The World Trade Organization) In the latest “Global Trade Outlook and Statistics” report, WTO economists note that inflationary pressures are expected to abate this year, allowing real incomes to grow again — particularly in advanced economies — thus providing a boost to the consumption of manufactured goods. A recovery of demand for tradable goods in 2024 is already evident, with indices of new export orders pointing to improving conditions for trade at the start of the year. However, regional conflicts, geopolitical tensions and economic policy uncertainty pose substantial downside risks to the forecast.

*Industry Trends 💡*

Five Ways AI Can Help Industry Reach Sustainability Goals (Forbes) Driven in part by the acceleration of AI capabilities in recent years, a growing number of companies are exploring the use of AI as a tool to help reach their sustainability goals. Today, AI systems can monitor and analyze emissions to identify areas for improvement, increase energy efficiency and potentially optimize the integration of renewable energy resources into the grid. While the impact of AI depends on each organization’s strengths and capabilities, there are five major areas where it will have the most impact going forward: identifying opportunities, efficiency, flexibility, reliability and optimization.

Vacant Storefronts are Killing Our Downtowns: Small-Scale Manufacturing Can Help (Next City) One of the long-term effects of the COVID-19 pandemic is the way it has transformed office use, threatening the viability of storefront retail in downtown office buildings. The range of alternative options needs to be expanded – and small-scale manufacturing offers a proven, yet often overlooked, solution. Small-scale manufacturing – from hardware to handbags to hot sauce – creates products that are sold online as well as in person. This means that storefront settings of small-scale manufacturers have more than one source of revenue, so they are not solely dependent on foot traffic. It’s a win-win opportunity in a difficult economic moment: Real estate owners can enhance their own properties while adding new downtown destinations and expanding local business opportunities.

Intel Reveal Recap of its 10 Manufacturing Projects Worldwide (Telecomlead) Intel has revealed a recap of its 10 manufacturing projects worldwide – in Arizona, New Mexico, Ohio, Oregon, Ireland, Israel, Magdeburg, Penang and Kulim in Malaysia, and Poland. Though China and India are key markets for Intel, the semiconductor giant does not have huge funding plans in these two Asian countries. Examples include Arizona, where Intel is investing more than $32 billion to build two new chip factories. New Mexico also celebrated the recent opening of Fab 9, the company’s packaging manufacturing hub and the only U.S. advanced packaging site to date.

*Workforce ⚒️*

NIST Awards $3.6M for Community-Based Cybersecurity Workforce Development (NIST) The U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) has awarded cooperative agreements totaling nearly $3.6 million aimed at building the workforce needed to safeguard enterprises from cybersecurity risks. The grants of roughly $200,000 each will go to 18 education and community organizations in 15 states that are working to address the nation’s shortage of skilled cybersecurity employees. The organizations receiving the awards will build Regional Alliances and Multistakeholder Partnerships to Stimulate (RAMPS) cybersecurity education and workforce development.

North Carolina Community Colleges Focus on Short-Term, High-Demand Workforce Programs (EDNC) Nearly 5,000 students received a total of approximately $3 million in aid through short-term workforce development grant programs during the 2022-23 fiscal year, and approximately 1,136 students have received $511,000 in aid during the 2023-24 fiscal year. The General Assembly created the grant program in 2021 to promote student enrollment in high demand industries. Under the program, students pursuing short-term, noncredit state- and industry-recognized workforce credentials can receive up to $750. Federal financial aid is not available in these programs. Programs include architecture and construction, health sciences, information technology, manufacturing, and more.

Texas to Launch Semiconductor Training Center (UT News) A new partnership among The University of Texas at Austin, Austin Community College District, and Texas Institute for Electronics (TIE) will make Central Texas a premier hub for comprehensive workforce development that will fuel the needs of the semiconductor industry. The joint program will serve as a one-stop shop for an industry in need of skilled labor, creating seamless and coordinated education pathways between UT and ACC to address every skill set on the semiconductor workforce continuum, ranging from equipment technician to semiconductor engineer. The initiative includes developing a joint Semiconductor Training Center and developing Semiconductor Curriculum and Credentialing programs.

U.S. Department of Commerce Invests $8.1 Million to Workforce Development in Louisiana (EDA) U.S. Secretary of Commerce Gina Raimondo announced the Department’s Economic Development Administration (EDA) is investing $8.1 million in the state of Louisiana to support workforce development and business growth. The EDA investments include: SOWELA Technical Community College in Lake Charles will receive a $3.5 million EDA grant to establish a Flight Training School and support aerospace workforce development; The South Central Planning and Development Commission in Houma will receive a $2.6 million EDA grant for building infrastructure improvements to support workforce development and create jobs; and Jefferson Parish Economic Development and Port District in Westwego will receive a $2 million EDA grant to construct the Greater New Orleans Food & Beverage Incubator, providing facilities and technical assistance to small businesses in the region.

*Business Finance and Incentives 📊*

Intel Awarded Up to $8.5 Billion in CHIPS Act Grants (CNBC) Intel has been awarded up to $8.5 billion in CHIPS Act funding, as efforts are being ramped up to bring semiconductor manufacturing to U.S. soil. Intel said it would spend its CHIPS Act funds on fabs and research centers in Arizona, Ohio, New Mexico and Oregon. The company previously announced plans to spend $100 billion on U.S. programs and facilities. Intel has announced a plan to catch up in leading-edge manufacturing by 2026.

Samsung Receives $6.4 Billion for Chip Manufacturing in Texas (TechStory) Samsung is eligible for up to $6.4 billion in CHIPS funding which marks a significant step in revitalizing domestic semiconductor production. Facilitated through the CHIPS and Science Act, the initiative aims to establish a cutting-edge semiconductor ecosystem in Texas, positioning the United States to reclaim its leadership in chip manufacturing. The proposed cluster in Taylor, Texas will house a dedicated research and development facility, as well as a packaging facility for chip components. The project is projected to generate at least 17,000 construction jobs and over 4,500 manufacturing jobs. With operations expected to commence as early as 2026, the cluster represents a significant investment in expanding Samsung’s footprint in the United States.

EPL America Invests $37.4M to Expand Manufacturing Facility in Danville, VA (WXFR Roanoke) A specialty packaging manufacturing company will invest $37.4 million to expand its facility in the Danville, Virginia and create 24 new jobs. EPL American, LLC, a global specialty packaging manufacturer, intends to invest the money for building upgrades at its current 200,000-square-foot facility in Danville. The company will also add new machinery that will allow it to grow into a beauty and cosmetic market to serve customers interested in replacing plastic products with laminated tubes. The Virginia Economic Development Partnership worked with the city and the Southern Virginia Regional Alliance to secure the project.

Multi-Million-Dollar Expansion to Fiber Optic Cable Manufacturing Operations (Yahoo Finance) AFL, an industry-leading manufacturer of fiber optic cables, connectivity and equipment, today announced an investment of over $50 million to expand its fiber optic cable manufacturing operations in South Carolina. This investment aligns with the Infrastructure Investment and Jobs Act and Internet for All initiatives to increase broadband access. This announcement builds on AFL’s previous investment of more than $35 million in the expansion of domestic cable manufacturing to support broadband deployment and modernization of the power grid.

The State Economic Development Executives (SEDE) Network engages in regular events throughout the year. State Economic Development.org lists these activities and offers an interactive forum for discussion among peers. The SEDE Steering Committee includes: Sandra Watson (AZ), Chair; Joan Goldstein (VT), Vice-Chair; Kurt Foreman (DE); Kevin McKinnon (MN); Christopher Chung (NC); Andrew Deye (OH); Sophorn Cheang (OR); Adriana Cruz (TX); and Mike Graney (WV).

Allison Ulaky of the Center for Regional Economic Competitiveness (CREC) led the development of this Bulletin; for questions on the content in this Bulletin or for information on the SEDE Network contact Bob Isaacson, CREC Senior Vice President.

State Economic Development Executives Network (SEDE)

State Economic Development Bulletin – Issue 67, April 2024

HEADLINES