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.
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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.

Legislators returned to Dover this week. Among items passed, the General Assembly included extending reporting deadlines for the Taskforces on the Legalization of Recreational Marijuana and on School Redistricting. Expect reports to come later in the session.

Also passed this week was a bill creating a committee dedicated solely with how Grant in Aid funding will be administered in the future. Calling for the establishment of a review process, and creating metrics to measure success, the committee will work in conjunction, but separately from JFC to distribute Grant in Aid. Next week will be Governor Carney’s State of the State Address on January 18.

Earlier this fall, the Delaware State Chamber of Commerce membership participated in a survey on their view of Delaware’s economy, key issues, and polices impacting business growth. The survey results will play a key role in the Chamber’s 2018 issue and advocacy strategy, including a continued focus on creating a successful environment for small businesses.  We are listening to you as we build our advocacy agenda for 2018, which will include your top policy priorities:

• overall economic development
  
• cost of healthcare
  
• government spending
  
• and education reform

As we build on the successes of 2017, your continued engagement is vital to advancing a prosperous business climate and attracting new enterprises to the state.

A special thank you to members who took the survey.

Please take a few minutes to review the survey results by clicking here.

Maybe it’s a continuation of my turkey coma, but I saw a lot of positive things happening this week in and around Delaware you may have missed. Chamber member, and Taste of Delaware participant, Waggies by Maggie & Friends, a Wilmington nonprofit dog treat company that employs people with intellectual disabilities, has won the $10,000 grand prize in M&T Bank’s first Understanding What’s Important Business Challenge. Maggie’s has been a great friend of the Chamber, and everyone here is so pleased at their award.  Congrats!
 
The announcement of a sports arena to be built by the Riverfront, with a connecting bridge to area attractions like Iron Hill and Frawley Stadium, is huge for Wilmington. Above and beyond what it can bring for economic development, it’s a major quality of life project for an area of the City that desperately needs one. Kudos to Governor Carney, Mayor Purzycki, and BPG for working together to bring this project to Delaware.
 
Speaking of Governor Carney, you may have read about the release, a bit early, of his Wilmington schools plan. While the plan will undergo a number of changes, what struck me was the Governor taking the time to visit residents of Wilmington in person, urging them to participate in the process and to educate them about what his plan will mean for Wilmington kids and families. Door knocking can be hard, and at times even unpleasant, but it’s also one of the best ways to sell your message. Color me impressed.
 
Lest you think I’ve lost my Grinch-esque ways, let me end by saying we’re following chatter that there’s an effort afoot to build support in order to increase Delaware’s Renewable Portfolio Standard to 50%, with an 8% carve out for solar generation. Currently, Delaware’s Renewable Portfolio Standards (RPS) are established by the Renewable Energy Portfolio Standards Act (REPSA), which provides that utilities procure an increasing percentage of their electricity from renewable resources, leading up to 25% of energy derived from renewable sources by 2025. Obviously we’ll be watching this closely.

Superstar in Education winner William Penn High School hosted elected officials, faculty and staff, students and parents, and other community guests, at Historic Penn Farm on Tuesday, October 3. Serving food made with ingredients from their farm, the school held a reception in the barn at Penn Farm, where the school’s community supported agriculture (CSA) program, Farm to School, is housed. Following the reception, a pollinator field, made possible with financial support from DuPont, was celebrated with a wildflower seed toss.
 
The pollinator field, along with a transparent bee hive shed with a transparent viewing wall, was presented to the school by way of a $5,000 grant from DuPont. DuPont surprised the school and event attendees with the check at the Chamber’s annual Superstars in Education Awards ceremony on May 8, 2017, where William Penn High School was being recognized for their Farm to School program. 
 
It is DuPont’s hope that the hive will provide a save learning environment for apiary studies, while expanding on current honey harvesting operations. The pollinator field will allow students an interactive learning experience in horticulture, as well as serve as local point of interest for the community. The field, dedicated as ‘Mrs. Pickard’s Field of Dreams’, was named for the school’s agriculture teacher, Kathleen Pickard.
 
DuPont was impressed with the winning application’s demonstration of collaboration with multiple organizations – William Penn High School and the Colonial School District, Delaware Greenways and the Historic Penn Farm, University of Delaware, and New Castle County Commons – and even collaboration within the school, as the program engages students from agricultural, business, environmental and culinary disciplines.
 
Additionally, PJ Simon, Manager, Academic Outreach (North America), says, “This program checks many boxes. The students are learning skills in an oftentimes overlooked trade; instruction is hands-on and engaging, resulting in increased attendance and test scores; students gain a clear understanding of potential career paths; and the program has even reinvigorated the careers of the teachers.”

by Mark DiMaio

On Wednesday, October 4, the PPG Dover plant marked National Manufacturing Day (October 6, 2017) by welcoming Dover High School students that participate in the Delaware Technical Community College’s Advanced Manufacturing Pathways Program to the facility. The students, along with instructors and representatives from the Delaware Manufacturing Extension Partnership (DEMEP), toured PPG Dover and heard presentations about the plant’s processes and products.  

“National Manufacturing Day is exciting for PPG because it presents an opportunity to show students and community members what a manufacturing plant is really like,” said Neal Nicastro, PPG plant manager, Dover. “We will educate the students about the advances in science and technology that have transformed manufacturing into a great industry with many career options.”

This is the PPG Dover plant’s fourth year hosting an event with local students for National Manufacturing Day - an initiative organized by the National Association of Manufacturers (NAM) to address the skilled labor shortage, connect with future generations of manufacturers and ensure the success of the manufacturing industry. The PPG Dover facility, which employs approximately 80 people, makes interior and exterior paint for residential and commercial applications under the OLYMPIC®, PPG PITTSBURGH PAINTS® and PPG PORTER PAINTS® brands.

by James DeChene

Since 2002 Delaware had been ranked #1 in The Institute for Legal Reform’s Harris Poll Lawsuit Climate Survey. This year’s survey finds Delaware dropping to #11.

According to the report, “Participants in the survey were comprised of a national sample of 1,321 in-house general counsel, senior litigators or attorneys, and other senior executives at companies with at least $100 million in annual revenue who indicated they: (1) are knowledgeable about litigation matters; and (2) have firsthand, recent litigation experience in each state they evaluate.”

While Delaware still scores high in key element categories of scientific and technical evidence, trial judges' competence, quality of appellate review, and enforcing meaningful venue requirements, it fell significantly in Treatment of Class Action Suits and Mass Consolidation Suits (from #1 to #26) and Trial Judges’ Impartiality (down to #15).

When I asked about specifics that were factors in Delaware’s drop, I was given a handful of recent court decisions and specific pieces of legislation passed by the General Assembly. From my perspective, no one decision or bill by itself precipitated the drop, instead the reasons for the decline seem to be a shift away from supporting what made Delaware a top corporate legal environment for so long. In fact, even though Delaware scored #1 in 2015, I was given warnings then about a potential slide in rankings if Delaware continued to focus on legislation and issued court decisions that were increasingly plaintiff friendly.

I’ve written about these issues before, and seemingly often, which include Delaware’s approach to abandoned property, the fee shifting debate that took place a few years ago resulting in the passage of SB75 that reversed the “loser pays” model of litigation, and the ATP Tours, Inc. v. Deutscher Tennis Bund decision that precipitated SB75.

In fact, over the last few years, Delaware’s cache has dropped when reviewed by other organizations as well. For example:

• Forbes ranked Delaware 22nd among the states in 2016. The ranking lauded the state’s positive economic outlook, as shown by its increase in jobs and its business-friendly corporate law. Forbes’ cited Delaware’s low business costs and strong labor supply among its most positive factors, but gave Delaware poor marks for its quality of life, regulatory environment, and economic climate. This year marks a continued fall on the Forbes rankings from 11th in 2014 and 17th in 2015.
• Delaware also fell in CNBC’s “America’s Top States for Business” rankings. Delaware ranked 40th in 2017, its lowest score in recent years. It placed 37th in 2016, 38th in 2015, and 38th in 2014. Once viewed by CNBC as first in the nation for its business friendliness, Delaware came in 22nd in that category. The state’s greatest challenges are its high cost of living, education system, high cost of doing business, and lack of infrastructure. Its greatest drops from 2016, however, were in the areas of its economy (26th to 39th), quality of life (28th to 37th) and business friendliness (11th to 22nd).
• Chief Executive’s annual survey of CEO’s ranked Delaware 16th in 2017, a slight drop from the prior year. CEOs praised Delaware for public-private partnerships and new science-based businesses. Delaware placed 23rd in 2014, 20th in 2015, and 13th in 2016.
• Delaware’s business tax climate ranks 19th among states in 2017, according to the Tax Foundation. This is a 5-point fall from 14th place in 2016 and its lowest score in recent years.
• U.S. News & World Report’s 2017 “Best States” report ranked Delaware’s economy 9th, including 7th for business environment, 8th for growth, and 18th for employment. The state’s overall rank was 20th. This year is the first time U.S. News has ranked states.

The fact remains that the constant drip of decisions and legislation designed to support plaintiffs over business has led directly to where Delaware is today: a world where South Dakota is ranked as having the top business legal climate, and where Delaware is on the decline according to recent national ratings. 
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One thing remains constant, however. If Delaware continues its current trend, our image will continue to suffer. Delaware relies on the billion dollars in revenue it receives each year from companies choosing to incorporate here. We should be doing what it takes to retain our corporate image if there is to be any realistic expectation of that being the case in the future.