10/10/2019 0 Comments
INTERESTING ARTICLE by Rapid City Journal Media Group, regarding the need for states to talk one on one with businesses and offer them money and support.
Nebraska needs to be competitive. All states have incentives. The state’s economic development professionals are visiting with businesses daily and sitting across the table from them. We know their needs, we know what our competition is.
As western Nebraska economic developers, we were disappointed to learn of one of our state senator’s views on economic incentives this week.
What happens to the small to mid-sized businesses that need support due to demand for hire wages by the already scares workforce and the real estate costs going up. Does Wisconsin's WEDC lose it's ability to support sammer businesses because it has given all of it support to Foxconn?
Scott Cohn of CNBS talks about the incentives with Foxconn to be controversial as they should be.
Foxconn’s agreement with the Wisconsin Economic Development Corp. (WEDC), the state’s business development arm, calls for the company to create the 13,000 jobs by 2032. The deal calls for the company to do its hiring in phases, meeting specific targets in order to qualify for subsidies of around $3 billion.
The payments are part of a controversial package totaling more than $4 billion in incentives and other assistance the state agreed to in 2017, believed to be the largest such package ever offered to a foreign company in the U.S.
In a recent feature in Business Facilities magazine, Illinois was lauded for being one of the most significant economies—not in our nation—but in the world. A big part of the growth in Illinois' economy is foreign direct investment, meaning foreign held businesses are growing in Illinois and Illinois is uniquely positioned to attract more non-US businesses. Read the full article here
Below is an excerpt of the article:
The top 25 countries are indexed annually by A.T. Kearney through a survey of global business executives that ranks markets that are likely to attract the most investment in the next three years. This year's report keep the US at the top of the list with some interesting changes in overall trends of foreign direct investment. The full report is available on the A.T. Kearney web site here, and it well worth the read. Below is an excerpt of the report detailing the US position in the report:
In a Tight Talent Market, an Employer's Help with Education Expenses Can Turn a Candidate's Head From Society for Human Resource Management: When Janice Flanders graduated from college in the early '90s, she had no student loan debt, thanks to her then-employer's tuition assistance program. She worked full time right out of high school, went to school part time, and was reimbursed for her tuition payments based on her grades: 100 percent for an A, 80 percent for a B, and 70 percent for a C. Now that her son is a college graduate who has student loan debt, Flanders recognizes how important such programs are. So she's trying to get one started at the Ohio company where she is the HR director.
From Crain's Chicago Business: In an item of particular importance to some companies, the General Assembly has approved and sent to Gov. J.B. Pritzker a measure to extend the life of the state's tax credit for research and development. The bill also would establish a new credit for apprenticeship educational expenses. Business groups hailed the action. "Research and development is the lifeblood for innovative manufacturers and its passage sends a message to those companies to invest in our state," said Illinois Manufacturers' Association President Mark Denzler. "The apprenticeship tax credit allows manufacturers to jump start the workforce."
Scott Cohn, for CNBC, reported; The giant Foxconn manufacturing complex planned in Wisconsin is likely to continue falling short of the threshold required to begin receiving billions of dollars in state incentives, even after production begins next year. That is according to Gov. Tony Evers, who says his administration has now gotten “clarity” from the Taiwanese electronics manufacturer on its plans — which are much less ambitious than they were originally portrayed.
“We understand what is going to be built and when it’s going to be finished — the first phase,” the governor said.
Evers spoke exclusively with CNBC in his State Capitol office in Madison on June 27, one week after paying his first visit to the construction site near Racine. The site visit was undisclosed to the public until now.
Full article below.
Washington wins big as Boeing reveals $13 billion in 2015 state investments, by Deborah Feldman, Boeing.com and confirmed by the subsidy tracker on GoodJobsFirst.com. Boeing, by far, is the mega incentives experts for grants, tax credits, and subsidies with an average cost per job at over $1M we have to ask is this a responsible use of tax payers dollars?