Photo Courtesy of Ford Motor Co.
Manufacturing, biopharma and tech are strong drivers of economic development for the nation’s Southeastern and Northeastern states, which lure businesses with strong talent pools and infrastructure investments. Many are also attracting growing interest from international companies.
Tampa, Orlando and Miami are experiencing a surge in economic development. In March 2024, aircraft maintenance provider AAR broke ground on a maintenance, repair and overhaul facility expansion in Miami to meet the growing demand for regional aerospace maintenance and innovation.
Global managed network and cloud specialist Systal Technology Solutions and German architecture firm JSWD selected Tampa as its U.S. headquarters. KPMG also announced it would locate its global training and innovation center in Orlando due to its appeal as a destination for corporate investment and talent development.
*State’s rank in the 2024 Chief Executive Best & Worst States for Business
Tennessee benefitted from a flurry of notable expansions over the past year, particularly in manufacturing and healthcare. BlueOval City Supplier Park, a $5.6 billion mega campus in Stanton, continues to attract new tenants. The Greenheck Group recently announced a $300 million investment and 440 new jobs at its campus in Knoxville. Landmark Ceramics UST, Armada Nutrition and Genera also announced expansion in several counties. Tennessee continues to attract headquarters and R&D operations, as evidenced by Type One Energy Group’s April 2024 announcement to set up its HQ and expand R&D in the state.
Companies praise North Carolina’s educated workforce and development and training programs. Christopher Chung, CEO of the Economic Development Partnership of North Carolina, notes that the state has the largest manufacturing workforce in the Southeast, a strong pool of STEM-educated workers and is one of the fastest-growing in the country, ranking No. 3 for immigration.
A growing number of EV battery-related projects have some referring to North Carolina as the “Battery Belt.” Electric vehicle, solar and battery companies announced projects here in the past year, including Kempower and Epsilon Advanced Materials. Dai Nippon Printing is investing $233 million to create 352 jobs.
The Peach State is becoming a hub for battery manufacturing, e-mobility and solar. Syensqo announced in April 2024 a new battery-grade polyvinylidene fluoride manufacturing facility and 100 new jobs in Augusta. In May 2024, Swiss company GF Casting Solutions announced 350 new jobs at a $184 million facility in Augusta. “We are looking forward to bringing leading technology to the U.S. and to creating advanced manufacturing jobs for several generations in Georgia,” said Carlos Vasto, the company’s president. Solarcycle announced in February 2024 a $344 million investment and 600 new jobs at a solar glass manufacturing facility in Cedartown.
In 2023, South Carolina announced more than $9 billion in capital investments, the second-biggest year in its history. That included more than $4.3 billion in investments in automotive, electric vehicles and electric batteries and $1.56 billion in alternative energy and fuels. Known as the “buckle” of the battery belt, the state’s close proximity to battery suppliers has helped attract more automotive companies. “As the [automotive] industry transitions from internal combustion to electric engines, we are seeing continued growth,” said Kelly Coakley, director of marketing and communications for the South Carolina Department of Commerce.
Virginia landed several big projects in the past year. Amazon announced in September 2023 that it will build two high-tech fulfillment centers and create 1,000 jobs in the state. In November 2023, Northrop Grumman announced 300 new jobs and a $200 million investment to establish an advanced electronics manufacturing and testing facility in Waynesboro. In early 2024, real estate company CoStar Group announced it would relocate its global headquarters and 500 jobs from Washington, D.C. to Arlington County.
The state’s trade accelerator is also helping businesses grow internationally. The Virginia Leaders in Export Trade program now has 391 graduated companies and facilitates access to global markets. Virginia exports more than $51 billion in goods and services annually, supporting over 257,000 jobs and generating more than $2 billion in tax revenue.
The First State has experienced notable momentum in fintech and entrepreneurship. Fintech firm Novo announced expansion plans in December 2023, praising the state as a hub for financial services and fintech companies and its strong small business growth. “Small businesses make up more than half of Delaware’s workforce—an incredible testament to the work Delaware has done to make small business creation and growth as accessible as possible,” said Grant Sahag, VP of operations at Novo.
Entrepreneurship and startup culture are also thriving in Delaware, partly due to the state’s Startup302 funding competition, which offers funding in several categories.
FFI Ionix, a subsidiary of Fortescue, announced in February 2023 that it chose Dover as the base of its operations to support decarbonization and the hydrogen economy.
Kentucky is experiencing strong economic growth and an impressive mix of large projects across many sectors. Toyota recently increased its investment to $1.3 billion for EV production in Georgetown, while Ford plans to introduce a new electric vehicle project at the Louisville Assembly Plant.
In aerospace, FEAM Aero’s $45 million expansion and creation of 250 jobs at the Cincinnati/Northern Kentucky International Airport will support the burgeoning cargo operations of major carriers like Amazon and DHL. The metals industry is also thriving, with SCS-2 announcing a $63 million distribution and transfer facility in Bowling Green. Additionally, Tyson Foods is investing $350 million and creating nearly 450 jobs at a facility in Bowling Green. In late 2023, V-Soft Consulting opened its Louisville headquarters, marking a milestone for the state’s IT sector.
New Hampshire may be small, but it has a big and growing reputation in biomanufacturing. Several major life sciences companies, including Novocure and Novo Nordisk, have a strong presence, in Portsmouth and West Lebanon. Department of Business and Economic Affairs Commissioner Taylor Caswell said at the Advanced Regenerative Manufacturing Institute in May 2024 that the state recently performed a life science industry assessment and data analyses of the state’s workforce needs and housing supply. “There is a statewide opportunity here to make New Hampshire a global leader in biomanufacturing. With the right investment of energy and resources, we can ensure this effort is successful. This will change the landscape of our state’s economy.”
Louisiana had another record-breaking year of economic development in 2023, exceeding $25 billion in capital investments, many of which diversify its dependence on the oil and chemical sectors. Industrial manufacturer Fibrebond announced in April 2024 a $50 million expansion and enhancement of its production facility in Webster Parish. BBP, an automation solutions manufacturing company, announced an expansion and 75 new jobs at its Baton Rouge headquarters. European tire recycling company Tyres Group Limited announced in February 2024 that it will invest $46 million to establish its first U.S. processing facility on 10 acres at the Port of South Louisiana. L4T CEO Tilen Milicevic noted the company chose the state for its “strong industrial ecosystem” and the “availability of qualified personnel and suppliers.”
In February 2024, Pennsylvania launched its first economic development strategy in nearly two decades. Goals include investing in economic growth to compete and prioritize investments that capitalize on the state’s strengths and increasing pathways to enable all citizens to have meaningful careers. The strategy will also focus on innovation and building vibrant and resilient regions. “Pennsylvania has significant opportunities to strengthen its competitiveness, starting by getting clear about our priority sectors and the Commonwealth’s strength,” said Abby Smith, CEO of Team Pennsylvania.
The state’s 2024-2025 budget includes $20 million in new innovation funding to offer seed money to help small robotics and technology companies launch new products.
In April 2024, Alabama unveiled a new strategic economic growth plan and claimed the top spot among auto-exporting states for the first time. State exports also surged to a record total, surpassing the $27 billion achieved in 2023, raising the state’s profile in the global market. “We can be proud of our solid track record in economic development, but it’s critically important for us to be prepared for what the future brings to capitalize on the fast-paced changes being driven by technology,” said Gov. Kay Ivey in a press release.
Notable projects announced in Q4 2023 include Nucor’s $280 million investment in its Tuscaloosa steel mill and an Airbus expansion adding 1,000 new jobs. In April 2024, OMCO Solar announced a manufacturing facility and 70 new jobs in Huntsville. In May 2024, Meta announced plans to construct an $800 million next-generation data center in Montgomery.
In March 2024, Gov. Janet Mills’ administration released an update of the state’s 10-Year Economic Development Strategy. “The 2024 Reset” plan focuses on collaboration between public, private, nonprofit and education. It includes input from 600 stakeholders and reaffirms key priorities like strengthening career pathways and renewable energy production while addressing housing shortages. “After decades at the bottom of the pack, Maine now leads New England in economic growth because of our hardworking people, innovative entrepreneurs and strategic investments by my Administration in the success of Maine people,” said Gov. Mills.
The Mountain State continues to pursue talent development and economic diversification. In January 2024, seven companies announced $373 million in investments that will impact more than 1,900 jobs in the state. Pure Watercraft, SMR Technologies, Gestamp, Alcon and Clean-Seas announced expansions or new investments. “We’ve got more and more businesses calling over and over wanting to bring opportunities to our state,” said Gov. Jim Justice in a press release.
That same month, LG announced it would bring more than 275 high-skilled jobs and a $700 million investment in the state over the next five years. In 2021, LG NOVA started an accelerator program in the state, and it is now planning to establish branch offices near Marshall University and West Virginia University.
Maryland is striving to attract more foreign investment through its Maryland Innovation Lab. A private-public partnership between the World Trade Center Institute, the Maryland Department of Commerce and global innovation specialist L Marks, the lab will work with startups and companies to identify opportunities for innovation within specific industries. Nine companies from around the world took part in the first round, including Germany’s Vaayu, France’s Ormex and Portugal’s AssetFlow. Maryland Commerce also announced in April the start of the fifth round of the Maryland Global Gateway Soft Landing Program, which connects international companies with incubators and accelerators in the state.
The Ocean State is busy nurturing its innovation economy with a focus on small businesses. It recently awarded more than $850,000 in funds to support eight organizations committed to working with local businesses with mentorship, advisory services, technical assistance, flexible workspaces and access to capital. Recipients include innovation studios and incubators like the New England Medical Innovation Center, Rhode Island Bio and Innovation Studio.
Rhode Island also recently launched a grant program to help small businesses reduce energy costs. The RI Rebounds Energy Efficiency Program reimburses small businesses up to $10,000 for energy efficiency measures implemented as the result of an energy assessment or audit.
Vermont is opening the door to new tech opportunities. The state’s V-GaN Tech Hub aims to make the state a world leader in gallium nitride (GaN) semiconductors. Lighter, smaller, and more efficient and durable than silicon, these semiconductors have many applications in electronics, sustainable energy, defense and healthcare. GlobalFoundries’ Fab 9 plant in Essex Junction is already producing these chips at a limited capacity and is on track to be the first to mass produce in the hemisphere. “This Tech Hub designation will expand Vermont’s expanding tech sector and introduce new and lucrative career opportunities for Vermonters,” said Governor Phil Scott.
In May 2024, Gov. Tate Reeves reported that the state continues to break records. “This year alone, we finalized the largest private sector investment and payroll commitment in Mississippi history,” he said. A truck battery joint venture between Cummins, Daimler Trucks & Buses and PACCAR announced in January 2024 a $1.9 billion investment and 2,000 new jobs in Marshall County. Core X Partners also announced in February 2024 a $200 million expansion in Gulfport. Additionally, Owl’s Head Alloys announced in April 2024 that it will establish a $22 million facility in West Point.
Connecticut recently experienced its second straight year of net population growth, and real GDP grew 2.1 percent. Rising exports in agriculture and defense contributed to the growth, making the state No. 23 in GDP. “We are having a ‘moment,’ and our companies are having their moments,” said John Bourdeaux, CEO of AdvanceCT. “Our population is growing, our manufacturing and life sciences industries are growing, and we have a great deal of good news to share,”
Nanoramic Laboratories, ASML and TRUMPF are breaking new ground in the battery and semiconductor sectors, with growth in employment and capital investment.
The life sciences and biopharma sectors continue to underline Massachusetts’ position as a global hub for innovation and investment. Moderna has started to build out the manufacturing facility acquired in Marlborough last year to scale up a neoantigen therapy program for multiple cancers. The $322 million, 200,000-square-foot expansion is expected to create at least 200 jobs. Last summer, local developer King Street Properties completed a $170 million life sciences project in Cambridge. Amazon recently opened its largest Massachusetts facility in North Andover. One United, the nation’s largest black-owned bank, announced in April 2024 that it will move its headquarters to Roxbury.
The New Jersey Economic Development Authority and Plug and Play, a Silicon Valley innovation platform, announced in May 2024 the creation of the Fintech Accelerator at Stevens Institute of Technology. The Strategic Innovation Center will serve as a hub for fintech and insuretech startups. NJEDA plans to invest up to $17.5 million in the fintech accelerator. “NJFAST aims to make New Jersey a national leader in fintech and insuretech by supporting innovation to help empower startups….” said NJEDA CEO Tim Sullivan.
HAX, a startup development program for pre-seed hard tech companies with offices worldwide, also opened its U.S. headquarters in Newark. And in April 2024, BP Pharma, a UK-based global leader in clinical supply, opened its U.S. headquarters in Somerset.
In October 2022, Micron announced it will invest more than $100 billion and create more than 50,000 jobs in Central New York in the next two decades, paving the way for massive development in the region. In April 2024, construction began on the first phase of the $319 million Edwards Vacuum dry pump manufacturing in Alabama, New York. Edwards dry pumps are currently manufactured in Asia. By bringing them back to the U.S., customers like Micron, GlobalFoundries and Intel will experience shorter wait times and improved responsiveness. “The start of construction for Edwards Vacuum’s new facility signals that hundreds of good jobs and millions of dollars in investments are headed to Upstate New York,” said Hope Knight, president of Empire State Development, in a press release.
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