When Wal-Mart Inc. began searching for a site for a new, $50 million regional distribution center, it carefully examined the local work forces of each competing site. The giant discount retailer plans to create 1,000 new jobs within three years at its new facility and must have dedicated, hard-working, skilled workers.
In January, the company announced its decision to build the 1.2 million square foot facility in the central Delaware community of Smyrna. Wal-Mart will use its Smyrna facility to stock all of its retail locations within a 200-mile radius.
"The Smyrna regional distribution center will provide Wal-Mart the opportunity to better serve the growing number of Wal-Mart customers who shop at our stores in the Mid-Atlantic region," said Rollin Ford, senior vice president of logistics for Wal-Mart. "It is a significant project that represents our continued commitment to Delaware as a partner in both economic development and community."
The company plans to open the Smyrna facility in the summer of 2003.
Winterhur to locate facility in New Castle
Delaware's work force also helped attract a new catalog fulfillment center to the state. Winterhur, a cultural institution that incorporates antiques, jewelry, home dĒcor and furnishings, gardening supplies, and a research center of American art and culture, recently announced its plan to locate a catalogue fulfillment center in 125,000 square feet of a new building in New Castle. The company will create 109 new jobs.
Before choosing its Delaware site, Winterhur considered sites in several other mid-Atlantic states.
"We are delighted to bring our fulfillment operations back to Delaware," said Leslie Bowman, director and chief operating officer of Winterhur. "When we were searching for a location for the distribution center, Delaware put its best foot forward. The state's ability to provide training, employment, and other assistance played a huge role in our decision. Delaware's friendly business climate and qualified work force were also contributing factors."
Winterhur's new catalog facility will be located in the Twin Spans Business Park, which is the the site of a former iron company. The park has 1.1 million square feet of office, laboratory, and distribution space.
Fraunhofer set to open biotech center
Delaware's reputation as a biotechnology center helped it attract Fraunhofer USA's first biotechnology research center in the United States. Fraunhofer-Gesellschaft, the parent of Fraunhofer USA, is a German organization of institutes of applied research.
The new Fraunhofer Center for Molecular Biotechnology will create 20 jobs and be located in the Delaware Technology Park in Newark. There, researchers will study molecular farming. Before choosing Newark for its new facility, Fraunhofer considered sites in seven other states.
"From a German point of view, we see the United States as a good outlet for technology that we have been developing in Germany," said Dr. Dirk Meints Polter, president of Fraunhofer USA. "There were two reasons we selected Delaware.
"The state of Delaware, its governor, the community, the University of Delaware, and the technology sector have always made us feel welcome. Our decision to locate our Center for Molecular Biotechnology in Delaware was also based on finding a first rate executive director and scientific director, and we were able to do that here in Delaware."
Delaware is positioned to take a more prominent role in the biotechnology, information technology, and applied optics industries. The state is building a high-tech incubator on the Delaware State University campus, where it is expected to create 800 jobs by 2014.
Delaware contributed $3.3 million toward the $6 million project, and DSU has dedicated 4.7 acres of land for it. Tenants in the DSU High-Technology Incubator will receive help identifying investment capital, mentoring resources, and a low-cost way to develop ideas and get them from the laboratory to the market.
DeCrane Aircraft to expand in Sussex County
In each of Delaware's three counties, companies find a pro-growth attitude. The Sussex County Council gave DeCrane Aircraft Systems Integration Group $4.5 million in county industrial revenue bonds to help the company expand its hangar at the Sussex County Airport and Industrial Park by 50,000 square feet and hire an additional 50 workers.
DeCrane signed a service contract with Boeing Business Jets (BBJ) to perform warranty work. DeCrane will be designated as the BBJ authorized warranty repair facility and factory authorized service center.
FACTS & Contacts / Delaware
DEMOGRAPHY AND ECONOMY
Population: 0.8 million
Capital: Dover
Three Largest Cities: Wilmington, 71,678; Dover, 30,369; Newark, 28,000
GSP: $32 billion
Per Capita Income: $29,932
Percentage of Private Manufacturing Labor Force Organized: 20%
Right to Work State: no
Unemployment Rate: 3.4% (Feb. 2002)
Average Hourly Manufacturing Wage: $15.33
Population Age 25 and Over With Bachelor's Degree or More: Wilmington, 18.9%; Newark, 47.6%; Dover, 26.5%
Corporate Income Tax Rate: 8.7%
Percentage Employment by Sector: construction, 5.8%; manufacturing, 14.2%; mining, 0.02%; service industries, 27.8%; transportation/public utilities, 4.3%; wholesale/retail, 22.1%
Primary Industries: services, chemicals, automobile production, manufacturing, financial services, agriculture, tourism
Targeted Industries: life sciences, semiconductors, information technology, financial services
BUSINESS ASSISTANCE
Major Financial Incentives: Corporate tax credits and gross receipts tax reductions; Strategic Fund for relocation; training funds; incentive electric rates; public utility tax rebates; local government property tax reductions; the state offers a variety of loan programs
Worker Training Programs: OJT Program for Small Business; Workplace Literacy;
Special Populations
Technology Transfer Programs: Delaware Research Partnership; Delaware Innovation Fund; Delaware Manufacturing Extension Partnership; Advanced Technology Centers
Enterprise Zones: 30; 10 are located in Wilmington; 10 in New Castle County; 5 in Kent Count; 5 in Sussex County
Foreign Trade Zones: 2; Port of Wilmington; Wyoming; also five sub-zones in the state
International Trade Offices and Locations: Tokyo, Japan; International Trade Section of DEDO in Wilmington
Environmental Permit Assistance: Delaware Advisory Services, 89 Kings Highway, Dover, DE 19901, (302) 739-6400
FOR MORE INFORMATION CONTACT
Jack Turburgon, Delaware Economic Development Office, 99 Kings Highway, Dover, DE 19901, (302) 739-4271, fax 302-739-5749, Web: www.state.de.us/dedo