Creating Jobs and Attracting Business in New York

Governor Kathy Hochul has a number of economic development initiatives in this year’s budget, from supporting the semiconductor supply chain to helping adults reskill for the new careers that will be available in the state.

Leading these projects and all other economic development in the state is Empire State Development. On this episode of Talk CNY, presented by NBT Bank, President, CEO and Commissioner of Empire State Development Hope Knight joins the show to discuss the state’s plans to see New York grow.

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Host: Katie Zilcosky LinkedIn 

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This is Talk CNY, a semi-monthly podcast by CenterState CEO. We're an independent nonprofit committed to creating inclusive, equitable, and sustainable economic growth in Central New York. Join us as we meet the people and explore the projects driving the regional economy forward. This is Talk CNY, presented by NBT Bank. I'm Katie Zilcosky, director of communications at CenterState CEO, and your host for Talk CNY. Governor Kathy Hochul has a number of economic development initiatives in this year's budget from supporting the semiconductor supply reskill for the new careers that will be available in the state. Leading these projects and all other economic development in the state is Empire State Development. Joining me today on Talk CNY, presented by NBT Bank, to discuss the state's plans to see New York grow is the President and CEO and Commissioner of Empire State Development Hope Knight. Commissioner, thank you so much for joining us here today on Talk CNY. Good to be with you, Katie. So, to start, I want you to tell me a little bit about your role. As the Commissioner of Empire State Development, what problems do you and your team work to solve? Sure. Empire State Development is New York State's primary economic development agency. We're focused on promoting a dynamic and inclusive and growing state. We want to encourage business investments and create jobs for New Yorkers. We really want to create the conditions for a very robust and durable economy that supports small businesses that invest in innovation. And we use tax incentives to attract businesses to the state as well as help them to expand here. And as businesses expand, we also need a skilled workforce and that workforce needs the right training and that workforce also needs housing. And so we're involved in finding solutions for companies to connect them for what they need for both workforce. And we have a small role in housing. I think Governor Hochul has really centered her economic development strategy around innovation. And with her leadership we have focused on industries from semiconductors to AI and life sciences. I think New York really is the center place of innovation. That's a really large breadth of work, and I know that there are so many projects that impact Central New Yorkers each and every day. So can you tell me a little bit about the projects that Central New Yorkers might interact with but not know that ESD had a hand in? Absolutely. In 2022, Micron announced its historic 100 billion investment to build the largest semiconductor fabrication facility in New York state, creating 50,000 New York jobs. As a part of that investment, there is a Green Chips Community Investment Fund, and this is a $500 million fund between ESD and Micron to really amplify the benefits of the investment for those folks in communities that need it most. So we're focused on supporting that investment and making sure that with the announcement, it really is just the beginning. It's not the end. It really is about growing the rest of the semiconductor ecosystem so that we can create more jobs across the supply chain in the region and across the state. Micron, as you noted, is a historic investment, but there are a number of projects that you and your team are involved with across the state. What are some that you are the most excited about right now? Well, there are a number of projects that we get really excited about. We have had significant investments in our agribusiness across the state. We are number four in dairy production in the U.S., and I bet people don't know that. Also in Central New York, we have made unprecedented investments to advance the unmanned aircraft system industry in Central New York. And we have a GENIUS NY, the largest uncrewed aerial systems business accelerator that was funded through the Central New York Rising Upstate Revitalization Initiative. This program has attracted 42 startups to Central New York since its inception in 2017, and we've invested $24 million in getting that up and going. Now, as commissioner of Empire State Development, you have played an instrumental role in helping to advance projects that support small businesses, especially for women and people of color. So why is this so important to you and why is the small business ecosystem so important to the upstate region? Supporting small business is certainly a priority for the governor and for me. Small businesses are the lifeblood of the economy. Most people work for small businesses, and we have to make sure that we have a robust backdrop for small businesses to really grow and thrive. So ESD is administering a $500 million state small business credit initiative, the S-S-B-C-I, and it's federal funding that provides access to capital across a number of projects for every stage in a small businesses lifecycle. And we've been very deliberate about creating products that really support small businesses of different types and in different phases of their life cycle. Now you've also helped to spearhead the Office of Strategic Workforce Development. W--hat are some of the goals of this office and some of its signature projects? The Office of Strategic Workforce Development is an office that really is focused on an employer driven philosophy. So we make sure that we understand where the jobs are, sort of this demand driven strategy, and then work backward to create the training and curriculum for individuals to access while providing what we call wraparound services so that we can reduce the barriers to accessing those opportunities. And those barriers could be transportation, childcare, mentoring, coaching, all sorts of supports that may be needed by folks who have not traditionally been able to access the employment market. And so there are some significant Syracuse projects that we've been able to support in Central New York. So Syracuse Build. In the Mohawk Valley, we have the MACNY Real Life Rosies and in Buffalo, we have a Per Scholas, a premier training program that focuses on IT and that's gotten funding very recently to support that industry. How have you seen the work of this office impact and transform the workforce ecosystem in New York since it's been in place? So I think, well, first of all, we've made great progress because invested more than $63 million to expand the program training nearly 15,000 New Yorkers for good paying jobs in critical industries in all regions across the state. We have tried to change the approach for workforce development by having this kind of consortia model where you have the training provider, you have the folks that provide the wraparound services and all the elements necessary for the trainee to be successful in accessing training and employment opportunities. This model is something that we're very focused on trying to scale this across the state because we believe this is a significant approach to get folks who may be on the sidelines into employment. We will be right back with the commissioner after a quick word from our presenting sponsor, NBT Bank. I would recommend NBT Bank to any business. My name is Chris Polimino, and I'm the president of Atlas Fence. Chris had decided to purchase Atlas Fence from the previous owner. He had previous connections at NBT Bank. NBT Bank provided me with equipment financing doubling our entire production workforce. It's important to me as a business owner that the decisions of our banking relationship are made locally. Welcome back. This is to Talk CNY, presented by NBT Bank. I'm Katie Zilcoksy, director of communications at CenterState CEO and your host for Talk CNY. I'm joined today by the commissioner of Empire State Development Hope Knight. Thank you so much for joining us here today. Good to be with you. So we talked a little bit about workforce strategy before the break. Another project of the workforce ecosystem is ON-RAMP and here in Central New York CenterState CEO is proud to support the development of the flagship facility. The governor also recently announced the other three locations for workforce facilities, the Finger Lakes, the Mohawk Valley, and the Capital Region. But before we get into why these locations are good fits to overall goals, can you remind us a little bit of what is ON-RAMP and what do you hope to accomplish through that? Absolutely. So the governor proposed ON-RAMP in her 2024 State of the State, and it's a $200 million initiative to establish new advanced manufacturing workforce development centers across the state. We want them to be based on a highly successful model in Buffalo called the Northland Workforce Training Center. Northland provides some of these supports that I've talked about with respect to wraparound services and this notion of being able to reduce the barriers that prohibit students from enrolling and completing these programs. So as you mentioned, we are going to have four. The Central New York Center will be the flagship and then Mohawk Valley, the Capital Region, and the Finger Lakes will have sites. I think all of these centers will be working together to share ideas. They'll focus on the industries that are in most demand in their respective regions, but will share best practices to pilot and establish the best training models that we can develop. So Central New York, Capital Region, Mohawk Valley, and the Finger Lakes - why are these locations strategic and pushing towards reaching the overall goal for New York State? So I think if you think about the locations of each of these centers, they're on the Thruway. They're close to these employment centers, particularly in the area of advanced manufacturing. And we will provide the opportunity to folks in those regions to get access to the training that we'll give them the opportunity to get employment opportunities in these in-demand regions and industries. Now we have training all across the state that will support other in in-demand careers, but ON-RAMP is going to be focused around semiconductor training and the supply chain because with Central New York and Micron housing, this large economic development project, those jobs will be plentiful, and we'll need folks to fill those roles. So what can the communities that will have ON-RAMP facilities look forward to in 2025? These programs in these regions are going to spend the rest of this year planning so that they can launch in 2026. In many cases, there is advanced manufacturing training already happening. So it's not like folks are going to be able to miss out on getting access to the training. We're just looking to scale and really refine the model so that we can provide the best training programs possible. I want to move on to some of Governor Hochul's proposals and this year's budget, especially the key economic development initiatives. One will see millions of dollars being invested to create power-ready sites for advanced manufacturing. Why is that so needed in the state right now and how will it make New York State more competitive? Yes. So the budget includes an additional$100 million for our highly successful FAST New York(Shovel Ready) program. The budget also includes $300 million for this new Power Up program that will compliment the FAST program. So there are a dearth of shovel-ready sites available in New York. When we are pitching for new companies to locate and the state, their biggest concern is do you have shovel-ready sites available because they want to be able to locate their business, get it up and going as soon as possible. And if it takes time to bring the utilities and the infrastructure in that reduces, it increases the time to market to be able to get a project up and going. And so it's important that we have these sites prepared so that when businesses are looking for sites, we have them readily available. There's so much reshoring happening with advanced manufacturing. And with that comes the need for shovel-ready sites connected to Power on the grid. And so that's why we are pairing our Fast New York program with Power Up so that we can get them ready with the infrastructure and the power so that companies are able to get to market as soon as possible and that we can compete with other states that do have these sites available. Another program aimed at strengthening the advanced manufacturing and semiconductor ecosystem is the expansion of the Excelsior program. So what does that look like and how does it hope to attract and grow the semiconductor supply chain? The Excelsior Tax program has been very successful. It is a performance-based incentive program for job creation. By the way, the governor has proposed a 10-year expansion for this tax credit. We think it's very important for companies to know that the program's going to be around for an extended period of time. The governor's proposing a new tier of Excelsior, which is for the semiconductor supply chain companies, and it's a credit that's offering 7% for a jobs tax credit and 3% for investment. It'll compliment our Green Chips program that we used to attract Micron, and we think that we'll really be able to build out the supply chain by providing these incentives that support the supply chain industry for semiconductors. Going back to workforce a little bit, there's also $47 million proposed to make community college free for New York adults ages 25 to 55 so that they can pursue some of these in-demand careers. How do you envision that initiative strengthening our workforce ecosystem? Yes. So it's another piece of the puzzle for the workforce development area. Our goal is really to get more New Yorkers engaged in the state workforce. We're looking to attack the workforce shortage issue with a holistic approach. And this is just another way to get folks trained and into the workforce. Why is it a critical effort to our region here in Central New York and all the people who call New York home? I think it creates opportunities, it addresses barriers to training. As I said, it gets people off the sideline and it really provides tremendous opportunities for family-sustaining wages that can change people's lives. We know more and more businesses are looking to locate or expand in New York. What would you say to those companies and why should they invest in New York State? Well, when I think about Micron and why they chose New York, they offered a number of reasons. This rich, diverse, talented workforce, amazing academic institutions, the opportunity to have families root themselves in New York to grow and thrive in Central New York and in Syracuse, you can have an urban lifestyle alongside of the ability to take advantage of outdoor activities. And then all these partnerships that will happen with schools and colleges, the ability to collaborate on research and development, just tremendous assets of New York state that really provided a platform to have Micron locate here in New York state. Now of course there are - New York State is wonderful. There are a lot of great reasons to move here to locate here, but are there specific incentives or programs that you think that businesses should know about that your office overseas and really think that more people should take advantage of? Well, I'll reiterate the Excelsior Job Tax Credit. Within that, we're creating a training tax credit, so the ability to train businesses, to train people and get a credit for that as they want to bring on a workforce. As I mentioned, our Power Up Fast New York program. So we provide the support to get sites ready. And I think one of the more intangibles is that you get a tremendous team when you come to New York State. There's unprecedented cooperation amongst a lot of the local organizations and conjunction with other municipal entities partnering with the state. And that's the team that you get when you we're attracting you as well as when you are executing your project. I hear from CEOs that we do a really good job around the execution, helping them get their project done. Yeah. Can you tell me a little bit more about that? I mean, I know CenterState CEO is a partner to ESD. ESD's been a great partner to us to help advance some of our goals. Why is that collaboration so important? I think it's the only way these projects happen, and I'll just give a shout out to CenterState CEO for your leadership in so many areas in Central New York. The leverage that you get by the collaboration, we all bring different resources to the table. It really is a powerful ingredient and it shows a business that we're very serious about helping them make their businesses grow and thrive. Well, commissioner, thank you so much for your time today. We really appreciate you stopping by the podcast. Thank you. Great to talk to you. CenterState CEO's podcast Talk CNY, presented by NBT Bank, is available on all major podcast platforms or centerstateceo.com. Additional content and clips can be seen across CenterState CEO's social media channels for new episode reminders. Be sure to subscribe in your favorite podcast listening app, and don't forget to leave a quick review or five-star rating. Thanks for listening to Talk CNY, presented by NBT Bank.