Wind Energy Industry Booms Before the New Year Bust

As the clock strikes midnight on Dec 31, 2012, more than 37,000 people in the U.S. wind energy industry will have to start looking for new careers. The industry is all set to lose half of its 75,000 jobs in the first quarter of 2013 if Congress does not renew the Wind Production Tax Credit (PTC) which expires at the end of this year.

Save USA wind manufacturing jobs

Save USA wind manufacturing jobs (photo – awea.org)

A lot of customers have been rushing to get their wind turbines installed before the end of the year to ensure they get the PTC, and this has ironically resulted in a huge boom in the industry even as it faces an existential crisis.

New wind capacity as of Nov 30 hit 6,519 megawatts – more than the natural gas additions and a lot more than coal additions. New Energy Finance estimates the amount of wind capacity added this year could reach 12 gigawatts.

If Congress does not renew the PTC, the estimate for next year is 1.5 gigawatts – a staggering 88 percent drop that will just about kill the 500 factories which are supplying the wind industry.

Thousands of jobs have already been lost this year, and new investments are at a complete standstill while Congress tilts at the windmills.

The largest corporate consumers of renewable power have written to Congress. Another letter was sent by 118 conservation groups. The Western Governors’ Association sent a letter, and so did a coalition of lieutenant governors.

A slew of newspapers from the Los Angeles Times to the Canon City (Colo.) Daily Record and the Scranton (Pa.) Times-Tribune have published editorial endorsements asking Congress to renew the PTC.

With the clock ticking down on their jobs, the American Wind Energy Association (AWEA) finally had to resort to putting little kids of wind industry workers in a video to implore Congress not to take away their jobs.

Matt and Sarah Allsup and their children Tiffany, Malia, Dylan, Lucas and Kaidee are shown in front of the Capitol. “Behind the wind mills, there’s families,” says 20-year-old Tiffany Allsup. “And behind those families, we need jobs.”

The U.S. wind industry supported more than 75,000 jobs in 2011. A full 30,000 of those jobs were in manufacturing. There are nearly 500 U.S. factories currently supplying the wind industry. A recent assessment by the U.S. Department of Energy concluded that the U.S. could supply 20 percent of the nation’s electricity needs through wind by 2030.

That would support roughly 500,000 jobs in the U.S., with an annual average of more than 150,000 workers directly employed by the wind industry. It would also result in energy-related cost savings ranging from $100 billion to $250 billion through 2030.

GM On Verge of Announcing Third IT Innovation Center Location

General Motors is planning to announce the location of their next IT Innovation Center in January 2013. The site they have chosen is reportedly the former UPS building in Roswell, Georgia.

General Motors

General Motors (photo – america.gov)

The new GM facility will add up to 1,000 high-paying tech jobs. GM has purchased the 228,000 sq ft Innoplex facility in Roswell which housed a UPS IT Center until 2009.

GM has not confirmed any of this officially and will not likely be saying anything until January, at which time GA Gov. Nathan Deal is expected to come to Roswell for the announcement.

Media reports say GM considered several other East Coast cities in addition to Metro Atlanta. Roswell Mayor Jere Wood said the news was an early Christmas present.

Greater North Fulton Chamber of Commerce president and CEO Brandon Beach credits the deal to Roswell’s Opportunity Zones, which now includes the UPS building. A $3,500 tax credit for five years is given for every job created by a company in an Opportunity Zone. If GM creates 1,000 jobs, that works out to $3.5 million per year and $17.5 million over five years.

Roswell City Councilwoman Nancy Diamond credits the hard work done by Roswell Business Alliance executive director Steve Stroud to secure the project. The RBA worked closely with the state’s economic development division.

The selection of Roswell will be GM’s third IT Innovation Center announcement, with one more to go. Back in September, GM had announced the first of the four centers to be located in Austin, Texas with 500 jobs. The second center went to Warren, Michigan with up to 1,500 high-tech employees.

GM is hiring software developers, project managers, database experts, business analysts and other information technology professionals to staff these centers.

While announcing the IT Innovation center in Austin in September, GM chief information officer Randy Mott said that they were looking to rebalance the employment model over the next three years so that the majority of their IT work is done by GM employees focused on extending new capabilities to further enable the business.

“We look to the Innovation Centers to design and deliver IT that drives down the cost of ongoing operations while continuously increasing the level and speed at which innovative products and services are available to GM customers,” added Mott.

No word yet on where the fourth and last GM Innovation Center will be located.

Unemployment Rates Drop Across the Map

For the first time since the Great Recession, there is a palpable feeling that the so-called “recovery without jobs” has now turned into a full-fledged recovery, with the unemployment rate dropping hard across the map. 

Unemployment

Unemployment (photo – house.gov)

Florida Governor Rick Scott announced that the state’s 0.4 drop to 8.1 percent in November makes it the single largest unemployment rate decline in the last 20 years.

“For many of Florida’s families during this holiday season there could be no greater gift than a regular paycheck,” said FL Governor Rick Scott. “Florida’s economy continues to improve as evidenced by the more than 24,000 Floridians that filled private-sector jobs created in November, for one of the largest over the month rate declines in more than 20 years.”

Virginia‘s unemployment rate fell to 5.6% in the month of November, which is the lowest unemployment rate in the Commonwealth since December 2008.

“Our formula has been simple. We’ve focused on getting the state’s fiscal house in order, turning two budget shortfalls totaling $6 billion into three straight budget surpluses totaling $1.4 billion,” said Virginia Governor Bob McDonnell. “We did that without raising taxes. At the same time, we have invested wisely in the core functions of government critical to job creation.”

Utah’s unemployment rate dropped to 5.1 percent, and job growth jumped to 3.1 percent in November. “Utah continues to outpace what has become the ‘new normal’ across the nation,” said Utah Governor Gary R. Herbert. “In a time of mounting national uncertainty, Utah stands out as a stark reminder that principle-based governance and a business-friendly atmosphere yield the greatest economic prosperity.’

The Texas unemployment rate fell to 6.2 percent in November, down from 6.6 percent in October and 7.3 percent at the start of 2012. The Trade, Transportation, and Utilities industry in Texas led the way with 20,600 jobs added over the month—the largest monthly jump ever seen in that industry.

“Texas employers have added 278,800 jobs over the past 12 months with growth in 10 of 11 industry sectors during that period,” said Texas Workforce Commission (TWC) chairman Andres Alcantar. “TWC is committed to working with our local workforce development boards and other partners to deliver quality workforce solutions that contribute to economic success.”

Even states with unemployment rates higher than the 7.7 percent national rate are moving in the right direction. In California, the unemployment rate dropped from 10.1 percent in October to 9.8 percent in November. The California Employment Development Department (EDD) says that non-farm jobs in the state have increased by 564,100 since the recovery began in February 2010.

The results for New York are slightly more complicated. From Nov 2011 to Nov 2012, the New York City unemployment rate dropped from 9.1 percent to 8.8 percent. On the other hand, the rate for the rest of NYS outside the City climbed up from 7.5 percent to 7.9 percent during the same period.

This resulted in the year on year unemployment rate from Nov 2011 to Nov 2012 for the state to go up from 8.2 percent to 8.3 percent. But the state still ended up adding 83,500 jobs.

“In 2012, New York’s economy grew by 83,500 private sector jobs. These year-to-date figures are particularly strong given the negative impact of Hurricane Sandy to our state’s economy,” said Bohdan M. Wynnyk, deputy director of the Division of Research and Statistics, New York State Dept. of Labor.

North Dakota has the lowest unemployment rate (3.1 percent), while Nevada has the highest rate (10.8 percent). In Nevada’s favor, their unemployment rate drop (0.8 percent) from Oct to Nov was the biggest drop by far among all 50 states.

Texas, Oklahoma Competing for $150M Borusan Steel Plant

Borusan Mannesmann Pipe U.S. Inc., a subsidiary of Istanbul, Turkey-based Borusan Mannesmann Boru (BMB), is planning to build a $150 million steel plant in the U.S., which will be located in Texas or Oklahoma.

Borusan Mannesmann

Photo – Borusan Mannesmann

Parent Company Borusan Holding CEO Agah Ugur said that they are making this investment to take advantage of the expected growth surge in the U.S. energy pipe market due to increasing shale oil and gas production.

The company’s statement says that, “We intend to increase our current share in the pipe drilling market, one of our strategic growth areas, by benefiting from the competitive advantages of becoming a domestic producer, to consolidate our company’s position within the international steel pipe market and to increase the added value we provide to our shareholders.”

It could also have something to do with the fact that Borusan has been the subject of a federal anti-dumping duty administrative review conducted by the U.S. Department of Commerce, Import Administration, and the International Trade Administration. If they start making pipes in the U.S., the anti-dumping issue would no doubt disappear.

Borusan’s US plant will open in the second half of 2014 with a capacity of 300,000 metric tons and employ 350 people. The OCTG plant will produce thick walled and high strength tubular pipes used in the oil and gas industry for fracking. A smaller heat treatment plant will produce line pipes with smaller diameters.

Borusan is already one of the biggest exporters of steel pipes to the U.S. market, and estimates that the new plant will double its supply to the US. They expect to generate additional revenues worth $500 million to $600 million annually from the US plant. Their current revenue is around $800 million.

Borusan Mannesmann Pipe U.S. Inc. is currently based in Dallas, Texas. However, Ugur said that the company was holding talks with both Texas and Oklahoma for the steel plant, and the ultimate choice of site location will depend on state incentives. They are looking for a 550 acre site.

One-third of the investment will be made by Borusan, and the remaining will be outside financing. Apart from state incentives, additional financing for the plant will be sourced through export banks and other U.S. banks that have a presence in Turkey.

Borusan Mannesmann Boru was founded in 1958 as the first industrial enterprise of Borusan Group, and currently has more than 1,300 employees.

NY Announces $250M Funding for Renewable Energy Generation Projects

New York is making $250 million available for renewable energy generation projects. The funding will be administered by the New York State Energy Research and Development Authority (NYSERDA) through the state’s Renewable Portfolio Standard (RPS).

High Sheldon Wind Farm in Sheldon, NY

High Sheldon Wind Farm in Sheldon, NY (photo – nyserda.ny.gov)

The targeted recipients will be medium and large scale clean power generation projects that use wind, hydroelectric, solar, biomass or other clean-energy resources.

“The RPS program has allowed New York State to expand its clean-energy economy by attracting private investment in these medium and large renewable energy projects, which are creating jobs and providing environmental benefits for local communities,” said Francis J. Murray Jr., president and CEO, NYSERDA.

RPS is a policy that seeks to increase the proportion of renewable electricity used by retail customers. RPS energy targets fall into three groups:-

-           Main Tier or large scale generators that sell power to the wholesale grid or generate power for onsite use;

-          Customer-sited tier which includes small scaled generators such as a photovoltaic (PV) system on a residence; and

-          Other Market Activities, which includes individuals and businesses that choose to pay a premium on their electricity bill to support renewable energy and state agencies.

“Developing renewable resources, along with our energy efficiency efforts, provides our best hope toward ending dependency on fossil fuels, improving regional economies, reducing harmful emissions, and enabling all of us to gain greater control of our energy future,” said Public Service Commission chairman Garry Brown. “The Renewable Portfolio Standard ensures that the success of the state’s renewable energy program continues unabated.”

Under the RPS program, NYSERDA has current Main Tier contracts with 54 large-scale renewable electricity generators. These projects include two biomass facilities, 10 landfill biogas operations, 25 hydroelectric facilities, and 17 wind farms.

The power generated from these projects is expected to provide enough clean power for more than 650,000 homes per year. Over the next 20 years, the direct benefits from the projects currently within the RPS program are expected to approach $2.4 billion, and the effects on the broader economy are estimated at more than $4.9 billion.

RPS is a critical component of New York’s Energy Highway Blueprint that will upgrade and modernize New York’s aging energy infrastructure.

Holiday Giving to Support Economic Development

The National Retail Federation (NRF) forecasts that the 2012 holiday shopping season will work out to $586 billion. This is a big boost to the economy, but you can get a lot more bang with holiday giving that actually supports economic development.

Catholic Campaign for Human Development

Catholic Campaign for Human Development (photo – usccb.org)

One option is the Catholic Campaign for Human Development (CCHD), a domestic anti-poverty project created by the U.S. Conference of Catholic Bishops.

Through CCHD, you can buy gifts that support economic development projects in low-income communities in the U.S. and around the world. The concept is simple enough – CCHD gives grants to groups that help low-income people start small businesses. You can help if you buy gifts that support these businesses.

The North Pole Economic Development Corporation (NPEDC) is very busy during this time of the year. The City of North Pole, Alaska sends more than two million personalized Santa letters to children all over the world. Apart from mundane activities such as helping clean the world’s biggest Santa, the NPEDC also organizes toy drives every year. It’s a bit late now to donate toys, but you can still help with donations.

You could also take a few tips from Bill and Melinda Gates, who wrote a helpful primer on how to make the most of your holiday giving.

“This holiday season, we decided to list several of the charity initiatives that have sparked our interest. Each of these projects takes a different approach, but they have three things in common: they’re innovative, committed to transparency and accountability, and they’re getting good results.” – Bill and Melinda Gates, thegatesnotes.com.

Their choices are listed below:-

Catapult – Crowdfunding site that helps organizations raise funds for projects to advance gender equality.

charity: water – Raises funds for freshwater wells, rainwater catchments, and biosand filters in developing countries.

DonorsChoose.org – Teachers from around the U.S. post classroom project requests on the site.

Gifts that Give – Shopping website that contributes 20 percent of every merchandise sale to the charity of the purchaser’s choice.

Threadless – Buy the CARE-themed t-shirt, with 100 percent of the net proceeds from the sale of each shirt going to CARE, to help raise money to improve the health and education of women and children in developing countries.

Utility Economic Development Association Winter Forum

The 2013 Utility Economic Development Association (UEDA) Winter Forum will be held in Scottsdale, Arizona from March 4-6, 2013.

UEDA

UEDA (photo – utilityeda.com)

Arizona Public Service Company (APS) is the host utility, and the event is dedicated to providing ongoing economic development education and networking programs, and serves as an information source and conduit to UEDA members for site selectors.

UEDA forums are recognized by the International Economic Development Council (IEDC) as professional training, so it counts towards Certified Economic Developers (CEcD) re-certification.

The theme for this particular forum is “Economic Development Opportunities at the Dawn of a New Era.” The general session kicks off on March 4, 2013 with the keynote address by Jeff Guldner, senior vice president, Customers and Regulation, APS.

This will be followed by the first session on Day 1, which is about “Economic Development in Challenging Times.” Jim Rounds, senior vice president and senior economist for Elliott D. Pollack and Company, will provide insight into the current state of the economy and key economic trends that will impact the economic development activities of UEDA members from coast-to-coast.

The second session on Day 1 is about “Site Selection Trends.” Deane Foote, president and CEO of the Phoenix, AZ-based Foote Consulting Group will focus on current location trends and growth industry targets for electric and gas utility economic development activities from a site selectors perspective. The session will highlight growth areas as well as declining sectors, and the role of utilities in the site selection process.

Day 2 sessions include one on creative ways of recruiting and retaining companies, another one on the market drivers and site selection considerations for data centers, and a third one on shale extraction and its impact.

Day 3 has one session where Jim Wilde, director, Resource Planning, APS will speak on how they plan to meet growth in customer energy demand, as well as which electric resources will play key roles in the future. This session will be followed by an open no-holds-barred state-of-the-industry discussion of current IOU economic development issues of interest.

What: 2013 Utility Economic Development Association Winter Forum

When: March 4-6, 2013

Where: Valley Ho hotel, Scottsdale, Arizona

Italian Company Selects Loudon, TN for $70M Ceramic Tile Plant

Officials of Italian company Ceramica Del Conca, along with Tennessee Gov. Bill Haslam and Department of Economic and Community Development (DECD) Commissioner Bill Hagerty, announced that the company will build its first North American manufacturing plant in Loudon, TN.

Del Conca

Del Conca (photo – delconca.com)

The $70 million investment on the project will create 178 new manufacturing jobs with hourly wages of $17, plus benefits.

“This announcement is great news for Loudon County, and I am excited to welcome Del Conca to Tennessee,” said Governor Haslam. “We are very appreciative of the investment in our state as we work toward our goal of becoming the No. 1 location in the Southeast for high quality jobs.”

Along with establishing a base for U.S. operations, the Loudon facility will allow Del Conca to serve major U.S. customers such as Lowe’s Arizona Tile, Mannington and Tile Shop more effectively. The facility will be a 320,000-square-foot manufacturing, research, showroom and administrative facility and will be located at the Sugarlimb Industrial Park.

“We have chosen Loudon, Tennessee for our new North American facility,” said Paolo Mularoni, president of Del Conca USA. “Loudon is geographically located close to the main U.S. highways and in close proximity to our sources of raw materials. We have found in Loudon a very cooperative team of people who are working hard in order to help us build a successful business that better serves our U.S. and Canadian customers.”

Tennessee was one of the five states under consideration for Del Conca’s ceramic tile factory and North American headquarters. The site selection process had been underway for the past four years.

As an incentive, Loudon offered Del Conca a payment-in-lieu-of-taxes (PILOT) program under which the company will pay $1.68 million instead of a decade’s worth of taxes. Del Conca was also given approval for purchase of the 30 acres of land at $15,000 per acre, along with a promise of additional support for the chosen site from the Tennessee Department of Transportation and the Tennessee Valley Authority (TVA).

“Loudon County welcomes Del Conca to East Tennessee with this opportunity to bring a substantial volume of high-quality jobs and positive economic impact to this region,” said Loudon County EDA president Pat Phillips. “We thank Del Conca for selecting Loudon County and also appreciate our partners with the State of Tennessee Department of Economic and Community Development and TVA for facilitating this exceptional opportunity for our community and our region.”

The Loudon facility is expected to begin operations by the end of 2013. The construction and hiring process will be completed in two phases. The first includes a $70 million investment and the hiring of 100 employees. The remaining 78 employees are expected to be retained within the next five – six years, with an expected additional investment of another $20 million.

Virginia Signs Agreement for $1.4B Highway Project

Virginia Governor Bob McDonnell announced an agreement with US 460 Mobility Partners and the Route 460 Funding Corporation of Virginia to finance, design and build a new 55-mile section of U.S. Route 460 in southeastern Virginia.

Route 460, Virginia

Route 460, Virginia (photo – route460ppta.org)

Project development begins immediately for the new $1.4 billion roadway, which is expected to generate an estimated 4,000 jobs during construction and 14,000 jobs over the long-term.

“Legislative leaders supported the project because it would improve safety for motorists and connectivity for freight and military traffic among other benefits,” said Gov. McDonnell. “Today, the Commonwealth is finally delivering on that need and building a project that will not only make transportation better for the southeastern region and the state, it will also generate jobs and economic development opportunities, bringing extensive long-term benefits in so many ways.”

The new U.S. 460 will be a four-lane divided highway from Prince George County to the City of Suffolk. The toll road will be parallel to the existing U.S. 460. The existing Route 460 will remain a free alternative.

Apart from the aforementioned jobs that will be created, the highway project will attract new business opportunities, boost tourism and accommodate greater freight traffic from the growth in demand at the Port of Virginia.

The road will help the Port of Virginia compete with Ports of Savannah and Charleston for fast-growing North Carolina markets such as Charlotte and Raleigh, and solidify its competitive advantages over these Southeast seaports.

When the road opens in 2018, tolls will begin at approximately 7 cents per mile ($0.067) for cars and 21 cents per mile ($0.213) for trucks. This equates to $3.69 for cars and $11.72 for trucks for the entire 55 miles. The state estimates the new road will get around 5,000 to 6,000 vehicles per day.

As per an economic impact analysis report prepared by Chmura Economics, the highway project will have an annual economic impact of $7.3 billion by 2020.

When the project is complete in 2020, the Commonwealth will receive nearly $60 million in sales, gas, corporate and individual income taxes. Local governments along the corridor will get annual tax benefits totaling $3.7 million starting in 2020 in the form of sales, meal, lodging and other forms of tax revenue.

William Fralin, who chairs the Virginia Port Authority (VPA) Board of Commissioners, said that, “The VPA is investing in the new U.S. 460 project because it will be an economic engine for the Commonwealth over the long-term, creating opportunities for distribution centers and light manufacturing that will drive cargo through the Port of Virginia. This creates jobs and grows our economy.”

The exact project cost is $1.396 billion including design, construction and toll collection set-up. Public funding from VDOT is $903 million.

Suffolk Mayor Linda T. Johnson said, “The City of Suffolk was recently named one of America’s best places to live for job growth. The benefits that the new U.S. 460 will bring including job opportunities and economic development will further enhance this mark of distinction. I welcome this project to our community.”

Forbes List of Best States for Business

The seventh annual Forbes list of the best states for business published last week shows that Utah once again topped the list. The second spot is also the same from last year, and goes to Virginia.

North Dakota went up one place to third, with North Carolina being pushed down one step to fourth place. Colorado retained its 5th place ranking from last year. See the list of the top 10 best states for business below.

  1. Welcome to Utah

    Photo credit – Phillie Casablanca (flickr)

    Utah

  2. Virginia
  3. North Dakota
  4. North Carolina
  5. Colorado
  6. Nebraska
  7. Texas
  8. Georgia
  9. Oklahoma
  10. Iowa

See the full 50-state Forbes list of the best states for business.

“It’s almost becoming impolite to other states-but Utah just can’t help it,” Utah Gov. Gary R. Herbert said. “But in all seriousness, our economy continues to outpace the national trend because we budget on sound principles and maintain a business-friendly environment. You simply cannot tax your way to prosperity, as others in our country try to do-you can only grow your way to prosperity. That is the Utah model.”

“This study reaffirms what those working and doing business in Virginia already know,” Virginia Gov. Bob McDonnell said. “My administration has been aggressive in making sure that Virginia has the best possible environment for private sector businesses to start up, grow and create jobs. Our focus on economic development and jobs has yielded results, with the unemployment rate dropping from 7.3 percent when I took office to 5.7 percent in October.”

What’s interesting is that Forbes writer Kurt Badenhausen analyzed the results as a vindication of “Right to Work” laws adopted by the top states on the list, since every state listed above (except Colorado) has these laws on the books. For the record, Michigan, which just passed a right to work law, is ranked at No. 47. Just above it at No. 46 is Mississippi, also a right to work state.

In the individual category rankings, Texas retains top slot for the best business climate. Virginia topped the list as the state with the most favorable regulatory environment. Colorado was No.1 for its labor supply. South Dakota tops the list for business costs, and Massachusetts for quality of life. California topped the list in the growth prospects category.

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