​When HB190 was passed modernizing the Coastal Zone Act, DNREC was the next step in the process on creating the regulations interested companies would follow to apply for a conversion permit. DNREC convened a Regulatory Advisory Committee (RAC), and the State Chamber had a designee helping provide input on behalf of the Chamber and its members. Fast forward to June when the RAC released its report to DNREC, which the agency used to craft its draft regulations and put them out for public comment, with time left to meet the October 2019 deadline to have all regulations finalized and in place.

The Chamber has provided comment in response to the draft regulations that DNREC created. Notably the comments are focused primarily on areas that require clarification and/or possible removal, and on areas where the draft regulations go beyond the scope of HB190—most notably section 8.6.1, which would put a term limit on ANY CZA permit issued, whether it’s a conversion or a general permit. That section alone goes against not only the legislation and current process, but also against the spirit of the RAC, which at the outset pledged not to go beyond the scope of creating a regulatory process specific to conversion permits nor to be an avenue to reopen the overall CZA permitting process.

The Chamber has reached out to the sponsors of HB190 and has heard that they too are following these drafts and are working to help clarify these regulations to meet the intent of the legislation. Thanks to Rep. Osienski for his help and participating in this process. As more information becomes available, we will be sure to share.

by James DeChene

The bills that passed this week in Dover included an Equal Rights Amendment to Delaware’s constitution. The first leg of the amendment passed last year, in the 149th General Assembly, and the language contained in the amendment bars discrimination on the basis of sex. The House passed a measure allowing alcohol sales at the new 76’ers stadium, and the Senate passed a mini-bond bill providing more funds for capital improvements across the state. Each bill crosses the chamber to be heard next week.

Also of note this week was Governor Carney’s State of the State address. The speech is used to review policies and initiatives this administration has put in place, and also serves as a blueprint for what will be this session’s priorities.  

The overview included a review of Chamber supported and implemented measures like the investment at the Port of Wilmington, passing the Angel Investor tax credit, the creation of the Delaware Prosperity Partnership, modernizing the Coastal Zone Act, and establishing Opportunity Zones all across the state to bring new jobs in places like Seaford, Newark, Dover, Milford and Claymont.

New priorities outlined by Governor Carney included continuing to invest in broadband in Kent and Sussex counties, creating a new Transportation Infrastructure Investment fund to bolster economic development projects, and investing $60 million in education targeted a low income and English Language Learners and ensuring that all 3rd graders are proficient in reading at grade level.

More to come as Governor Carney will release his recommended budget next week.

by Mark DiMaio

The Chamber’s annual End-of-Session Legislative Brunch was held on June 7 at Dover Downs. The brunch marked the last official event for retiring Chamber President, Rich Heffron.

Attendees heard from Kurt Foreman, President & CEO of the Delaware Prosperity Partnership. Kurt discussed Delaware’s current economic situation as being “a glass half full.” Delaware has experienced moderate employment growth, with the construction sector leading the way and other employment sectors showing modest growth. Housing starts are the strongest they’ve been in several years and Delaware’s housing affordability is more positive than the US market overall. Mr. Foreman shared the Delaware Prosperity Partnership’s four main areas of focus:

• Business Development (Recruitment of new companies)
• Existing Business Engagement
• Innovation Agenda – building on past successes in Delaware
• Talent Support – DPP will begin an initiative in late 2018/early 2019

James DeChene, the Chamber’s Sr. Vice President of Government Affairs, spoke about the “Tale of Two Budgets.” Last year Delaware faced a $400 million-dollar budget shortfall followed by a nearly $400 million-dollar budget surplus this year. The fundamental question here is how we can make the budget process easier, and more efficient and accurate. Boom and bust cycles may be natural, but helping to smooth the highs and lows will help put Delaware on more stable, certain financial footing. The Chamber strongly supports a bipartisan plan put forward by the Governor and State Treasurer to create a true “rainy day” fund to be used in lean budget times and added to in good economic times. This proposed plan requires a constitutional amendment, and requires passing changes to our tax structure and limits on spending. The constitutional amendment needs to be passed this year, as it takes two consecutive legislative sessions to become a part of Delaware Constitution.

Attendees also heard from Senate Pro Tempore David McBride and Speaker of the House Pete Schwartzkopf. Senator McBride highlighted the state’s budget and the fact that it would be completed well before the end of June. However, he wasn’t sure that the Senate would pass the minimum wage bill this year. He gave credit to the State Chamber for its role in the passage of the Coastal Zone Modernization Act last session. Representative Schwartzkopf spoke on the passage of legislation to bring $580 million dollars of private investment to the Port of Wilmington. He also pointed to the state budget’s restoration of the senior drug program, funding for special education and salary increases for teachers.  

This year’s Small Business Guardian awards were presented to Senator Brian Pettyjohn and Representative Harvey Kenton.

by Mark DiMaio

Last year we asked Chamber members to participate in a survey for input about obstacles to their business growth. We received nearly 100 individual responses to our question about specific suggestions on what Delaware should do to improve its economy.  Listed below are four areas that respondents mentioned most often, along with ways the Chamber is working to advance Delaware’s economic health.  

Improve schools and infrastructure

• The Chamber is a member of the Education Equity Delaware Coalition whose goal is to increase public awareness of education funding equity issues and solutions, and to focus on long-term systemic change on behalf of Delaware’s students, particularly those with the greatest needs. Rod Ward, president and chief executive officer of Corporation Service Company (CSC), is the Chamber’s coalition representative. 
• The Chamber supports the efforts of the task force created by HCR 39. This task force will make recommendations regarding the impact of consolidating school districts in the state. Visit www.dscc.com/takeaction and search HCR 39 in the Find Legislation field to learn more. Jordon Rosen of Belfint, Lyons and Shuman serves as the Chamber representative on a subcommittee looking at the financial impact of school district consolidation. 
• We are actively engaged, along with many of our members, with the Pathways to Prosperity program. Delaware Pathways programs are a set of curriculum focused on a specific industry-based “pathway,” paired with opportunities to gain workplace experience while still in high school, graduate with a head start on a college degree, or gain qualifications needed to go to work immediately. Consider attending the 2018 Delaware Pathways Conference on March 21.

Balance the state budget with new revenue sources and cut government spending

• We will continue to advocate for structural changes to Delaware’s budget. Delaware needs fiscal policies that foster business growth and advance the state’s long-term economic future.
• We support HB 160 that aims to establish metrics for grant-in-aid funding to nonprofits. Visit www.dscc.com/takeaction and search HB 160 in the Find Legislation field to learn more.

            
Encourage entrepreneurship and a diverse economy - strong business climate to attract new business

• The Chamber supported passage of HB 226 to create the new Delaware Prosperity Partnership, a public-private partnership to aid in the stimulation of Delaware's economic growth.
• We support HB 170: Angel Investor Job Creation and Innovation Act for Small Technology Companies. This legislation creates an incentive for qualified angel investors to invest capital in qualified Delaware small technology companies. Visit www.dscc.com/takeaction and search HB 170 in the Find Legislation field to learn more.
• Please join us on Thursday, March 22, for an important panel conversation about economic development in Delaware: “Building Delaware’s New Frontier."  

Streamline land use and permitting process – less regulation overall

• The Chamber is providing feedback to the GEAR taskforce, established by Governor Carney to review Delaware regulations and areas that could and should see reductions and streamlining.
• The Chamber will also continue to contribute, where appropriate, ideas of areas where permitting could be lessened or streamlined in agencies such as DELDOT and DNREC.
• The State Chamber is working with DNREC to update Delaware’s Coastal Zone regulations, following the passage of HB 190 (Coastal Zone Modernization Act). We believe this will make Delaware more competitive and attractive for redevelopment, bringing with it more jobs and a boost to the local economy.

By Mark DiMaio

In 2017, we invited Chamber members to participate in a survey in part to gauge their view of obstacles to their business growth. Listed below are the top five, along with ways the Chamber is addressing them.

1. Cost of Employee Health Care
The Chamber recognizes the growing problem surrounding health care costs. 

• We will continue to follow plans to create a health care benchmark, and what that means for providers, insurance companies and patients.
• Next month, Dr. Janice Nevin, MD., MPH, President and CEO of Christiana Care Health System, will provide an important update the DSCC Board of Governors on the future of health care.
• Join us and the Greater Philadelphia Business Coalition on Health on May 21, for the Delaware Employer Summit - details to follow.

 
2. Lack of Qualified Applicants
We are actively engaged, along with many of our members, with the Pathways to Prosperity program. Delaware Pathways programs are a set of curriculum focused on a specific industry-based “pathway,” paired with opportunities to gain workplace experience while still in high school, graduate with a head start on a college degree, or gain qualifications needed to go to work immediately. The program is a unique collaboration of school districts, businesses, higher education, and national advisory partners that represent a new way to do school. The Delaware Manufacturing Association (a Chamber affiliate) members have actively participated in the Manufacturing Engineering Technology and Manufacturing Production & Logistics pathways.  

Delaware Pathways will host its 4th Annual Conference on March 21.
 
3. Concerns with Crime & Safety 
The Chamber supports the efforts of elected officials and their staffs to reduce crime in Wilmington and across the state. 

• The Chamber strongly supports the efforts of Wilmington Mayor Michael Purzycki and Wilmington Police Chief Robert Tracy to combat crime in the city.  
• The Chamber and its Health Care committee, in partnership with the Chamber's Employer Advocacy and Education Committee will host an event focused on what employers need to know about the legal and human resource challenges of opioid abuse in the workplace. This national epidemic impacts a wide swath of the population with no bias against race or economic standing and it’s important for businesses to realize the potential impact to employees and their families. Drug addiction plays a major role in crime within our communities.    

4. Concerns About Local Schools
Improving education outcomes is a key factor in developing a skilled workforce and attracting new business to Delaware.  

• The Chamber supports the efforts of the task force created by HCR 39. This task force will make recommendations regarding the impact of consolidating school districts in the state.  The Chamber has a representative (Jordon Rosen of Belfint, Lyons and Shuman) on the subcommittee looking at the financial impact of school district consolidation
• The Chamber is a member of The Education Equity Delaware coalition whose goals are to increase public awareness of education funding equity issues and solutions, and to focus on long-term systemic change on behalf of Delaware’s students, particularly those with the greatest needs. Rod Ward, president and chief executive officer of Corporation Service Company (CSC), is the Chamber’s coalition representative.    
• The Chamber supports Governor Carney and the Delaware Department of Education efforts to develop a Memoranda of Understanding (MOUs) between the Delaware Department of Education and the Christina School District, thus creating partnerships that will advance the academic growth and success of students in Priority Schools. 
• We are actively engaged, along with many of our members, with the Pathways to Prosperity program.

 
5. Cost of Permitting and Regulation Compliance 

• The State Chamber is working with DNREC to update Delaware’s Coastal Zone regulations, following the passage of HB 190 (Coastal Zone Modernization Act). We believe this will make Delaware more competitive and attractive for redevelopment, bringing with it more jobs and a boost to the local economy.
• The Chamber is providing feedback to the GEAR taskforce, established by Governor Carney to review Delaware regulations and areas that could and should see reductions and streamlining.
• The Chamber will also continue to contribute, where appropriate, ideas of areas where permitting could be lessened or streamlined in agencies such as DELDOT and DNREC.

by Mark DiMaio

In 2017, we invited Chamber members to participate in a survey to gauge their view of Delaware's economic health, and provide input on policy priorities. Listed below are the top four, along with ways the Chamber is addressing them.
​
1. Economic Development
The Chamber is dedicated to promoting an economic climate that strengthens the competitiveness of Delaware businesses and benefits citizens of the state.

• The State Chamber is working with DNREC to update Delaware’s Coastal Zone regulations, following the passage of HB 190 (Coastal Zone Modernization Act). We believe this will make Delaware more competitive and attractive for redevelopment, bringing with it more jobs and a boost to the local economy.
• The Chamber supported passage of HB 226 to create the new Delaware Prosperity Partnership, a public-private partnership to aid in the stimulation of Delaware's economic growth.
• Please join us for an important panel conversation about economic development in Delaware: “Building Delaware’s New Frontier."
• We support HB 170 “Angel Investor Job Creation and Innovation Act for Small Technology Companies” – This legislation creates an incentive for qualified angel investors to invest capital in qualified Delaware small technology companies.

2. Cost of Health Care
The Chamber recognizes the growing problem surrounding health care costs.

• We will continue to follow plans to create a health care benchmark, and what that means for providers, insurance companies and patients.
• Next month, Dr. Janice Nevin, MD., MPH, President and CEO of Christiana Care Health System, will provide an important update the DSCC Board of Governors on the future of health care.
• Join us and the Greater Philadelphia Business Coalition on Health on May 21, for the Delaware Employer Summit - details to follow.

3. Government Spending
We will continue to advocate for structural changes to Delaware’s budget. Delaware needs fiscal policies that foster business growth and advance the state’s long-term economic future.

• We support HB 160 that aims to establish metrics for grant-in-aid funding to nonprofits. 
• The Chamber will support efforts to create and maintain sustainable revenue within the State's budget.  

4. Education Reform (K-12)
Improving education outcomes is a key factor in developing a skilled workforce and attracting new business to Delaware.  

• The Chamber supports the efforts of the task force created by HCR 39. This task force will make recommendations regarding the impact of consolidating school districts in the state.
• ​The Chamber supports Governor Carney and the Delaware Department of Education efforts to develop a Memoranda of Understanding (MOUs) between the Delaware Department of Education and the Christina School District, thus creating partnerships that will advance the academic growth and success of students in Priority Schools. 
• We are actively engaged, along with many of our members, with the Pathways to Prosperity program.

by Mark DiMaio

The future is now for expanding the state’s manufacturing sector. While manufacturing jobs in Delaware continue to increase at a modest pace, building blocks have been put into place to spring Delaware forward. Delaware manufacturing will need to combine organic growth with the long-term development of heavier industries in abandoned and underutilized locations. The modernized Coastal Zone Act should propel new investment in Delaware’s manufacturing sector. 
 
In order for Delaware manufacturing to flourish, a strong and skilled workforce in essential. Many Delaware manufacturers are working with Delaware Technical Community College’s workforce training department to develop future employees to handle the rigors of 21st century advanced manufacturing. This advanced training is needed to develop skilled employees to replace older workers who are retiring. In addition to instruction in subjects such as computer programming and robotics, training also focuses on developing better ‘soft’ skills, such as leadership, teamwork and problem-solving, in order to compete in the modern workplace.
 
The Delaware State Chamber of Commerce and the Delaware Manufacturing Association invite you to learn more the about the future of Delaware Manufacturing at the Spring Legislative Brunch & Manufacturing Conference.

as published by Delaware Business Times

By Roger Morris
Special to Delaware Business Times

Coming off a year when Delaware manufacturing jobs rose by almost one-half percent to about 26,000 workers, jobs growth in 2018 is expected to be similarly modest. According to local manufacturers and those who work in manufacturing-related organizations, three major trends will dominate the sector in the coming year:

Job growth will largely be organic
Most job growth will occur within businesses currently located within the state, with little expectations of immediate major manufacturing relocations to the region.

“One of the challenges we have at the Delaware Manufacturing Association is to reach out to growing companies in the state,” said Neil Nicastro, plant manager at PPG Industries’ Dover facility and a leader in the organization. “We try to get these companies in to discuss the challenges to growth they face, and we have seven sub-groups, such as health, advocacy and energy issues, to help in these areas.”

However, long-term growth may involve the relocation of heavier industries into the region, which was part of the rationale for the state changing some provisions of the Coastal Zone Act, to be more attractive for large manufactures to relocate here. Additionally, there are now recently abandoned locations available between Wilmington and the Pennsylvania border.

“I was very impressed when I recently visited the Navy Ship Yard in Philadelphia, and saw what they were doing,” Nicastro said of the 1,200-acre business campus, which is home to more than 12,000 employees and 152 companies. “I can’t help but think we can do something similar in Delaware.”

Programming and robotics part of training
Most of the jobs and job training will be concentrated on what is called “advance manufacturing” instead of traditional manufacturing skills.

“No employer is using the same machinery they were using 30 years ago,” said Rich Heffron, head of the Delaware State Chamber of Commerce, which means that new workers need to be trained in skills such as computer programming and robotics.

“The challenge is to find trained employees to replace older workers who are retiring,” Nicastro added.
Nicastro also thinks it’s important for young people to change their idea of manufacturing as a “dark and dirty” place, and he even invites parents to accompany their teens during career events at the PPG plant during the annual National Manufacturing Week.

Soft skills just as important
Employers are increasingly demanding that young potential workers be trained in “soft skills” as well as technical skills.

“We did a survey of state manufacturers to ask what job skills they are currently looking for,” said Paul Morris, head of workforce training at Delaware Technical Community College, “and we were surprised that about 90 percent said they needed better ‘soft’ skills, such as being skilled in leadership, teamwork and problem-solving.”

Nicastro added that some newly hired young employees have little understanding of workplace practices, even about work scheduling, being surprised that “they’re going to have to work a 40-hour week. What we really need is for more companies to provide job internships for training.”

Finally, while recent federal cuts in corporate tax rates may spur growth, James Butkiewicz, professor and chair of the Department of Economics at the University of Delaware, warned, “My concern is that the tax plan increases the fiscal deficit. This will appreciate the dollar and worsen our trade deficit, and this could hurt manufacturing and agriculture.”

​http://www.delawarebusinesstimes.com/2018-economic-forecast-manufacturing/

The General Assembly returns next Tuesday with a full plate. Work will commence stemming from taskforces that met over the summer and fall, which include school district redistricting and changes in funding models, and the legalization of recreational marijuana. Thrown into the mix will be legislation to raise money to invest in clean water infrastructure, incentivize angel investors to provide capital to small startups in Delaware, and the fight on minimum wage legislation will no doubt continue. These bills, and ones to come, will be the focus of the Chamber this legislative session, along with continuing to implement legislation passed last year—namely the Delaware Prosperity Partnership and the regulations surrounding modernizing the Coastal Zone Act.
 
In addition, the Chamber will be involved in ongoing budget discussions as the Administration and General Assembly continue to search for ways to address Delaware’s long term economic growth and sustainability. What will be interesting to see this year, is how the Federal tax plan will impact Delaware. Much of what was contained at the Federal level was proposed at the end of last year’s session to help fill a $350 million budget gap, including increasing the standard deduction, reducing itemized deductions, and modifying personal income tax bracket levels. If the projections the state Department of Finance provided last year hold true, that could mean big money for Delaware coffers, and reduce the chances for last minute budget battles this year.
​
All this, and more, to come.  Stay tuned.

This past spring, Governor John Carney and the Delaware legislature put in place two key foundations for economic development: Modernizing the Coastal Zone Act and the Delaware Prosperity Partnership, the new public/private nonprofit responsible for recruiting new employers to the state. In addition, the City of Wilmington is undergoing the creation of a master plan to help revitalize Delaware’s corporate hub. An example of such a transformation lies just 20 miles to its north.

On Monday, September 11, The Delaware State Chamber hosted a trip to the Philadelphia Navy Yard. The Urban Land Institute has hailed the venture as one of the “most successful” redevelopment projects in U.S. history. The Navy Yard is a 1,200-acre urban development, offering the Philadelphia region a mixed use and centrally-located waterfront business campus. The Navy Yard is home to more than 13,000 employees and 152 companies representing industrial, manufacturing, office and research, and development sectors. To date, the Navy Yard has developed 7.5 million square feet of real estate in a mix of historic buildings and new high-performance and LEED® certified construction. Since 2000, more than $1 billion has been invested to transform the site into a world class location for corporations like GlaxoSmithKline, Urban Outfitters and Tasty Baking Company.

The PIDC (formally known as the Philadelphia Industrial Development Corporation) is Philadelphia’s public-private non-profit economic development corporation founded jointly by the City of Philadelphia and the Greater Philadelphia Chamber of Commerce in 1958. The PIDC serves as master developer, and oversees all aspects of the Navy Yard’s management and development, including master planning, leasing, property management, infrastructure development, utility operation, and the structuring of development transactions. Reed Lyons, Vice President Navy Yard Development, led our tour and pointed out that the Navy Yard had no public infrastructure when the U.S. Navy handed the site to Philadelphia. The Navy Yard transformation started with little but a vision, and 20 years later that vision has become a success story.   
 
Mike Vanderslice, Environmental Alliance, Inc. and Chairman of the DSCC Economic Development Committee, says, “From an economic development perspective, I appreciated what our friends at the Navy Yard had to offer for what's 'working' and lessons they've learned as they continue to develop the historic waterfront area. Being in the environmental consulting field, it was impressive to see how far they have taken this former heavy industrial, blighted area, and turned it around into a vibrant campus for businesses.”
 
Link to Urban Land Institute’s article on the Navy Yard:
https://urbanland.uli.org/development-business/historic-rehab-philadelphias-navy-yard/

Link to the Navy Yard:
www.navyyard.org