2018 Annual Report Tulsa’S Future Regional Map Tulsa’S Future Regional Map Letter to Investors
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2018 ANNUAL REPORT TULSA’S FUTURE REGIONAL MAP TULSA’S FUTURE REGIONAL MAP LETTER TO INVESTORS Tulsa’s Future is an investment in both the near- and long-term vitality of our region. In the near term, we had remarkable success in 2018. Tulsa’s Future surpassed the five-year goal to generate $1.1 billion of new capital investment in northeast Oklahoma a full two years early. From Sofidel’s $360 million facility in Inola to Amazon’s $130 million fulfillment center in Tulsa, 2018 was a banner year for new business attraction. However, we can’t rest on our laurels. The cities with which we compete for capital investment and new jobs have enjoyed equally impressive growth. To maintain this level of new economic activity, we must take steps now that will yield returns a generation later. In 2018, the Tulsa Regional Chamber made a strategic decision to realign its economic and workforce development efforts. By combining these two imperatives, we’re following industry best practices and prioritizing northeast Oklahoma’s talent needs in the coming decades. Tulsa’s Future will continue to focus on the regional talent pipeline, with a heightened emphasis on both the needs of our existing employers and the kinds of employees we must attract to grow key industry sectors. As an investor in Tulsa’s Future, you actively support and sustain the economic prosperity of our communities. Thank you for believing in the potential of the Tulsa region and for helping northeast Oklahoma realize a more prosperous future. Thank you, Jeff Stava Sid McAnnally TULSA’S FUTURE 2018 ANNUAL REPORT 2018 Chair, Tulsa’s Future 2018 Vice Chair, Economic Development Oversight Committee Tulsa Regional Chamber COO, Tulsa Community Senior Vice President, Operations Foundation, GKFF ONE Gas 1 CELEBRATING A RECORD-BREAKING YEAR In 2018, northeast Oklahoma celebrated the LARGEST CAPITAL INVESTMENT in Tulsa’s Future history. In March, Sofidel Group, an Italian tissue paper manufacturer, broke ground on a massive industrial facility in Inola. The $360 million capital investment will create 300 jobs in the Rogers County community. Not only was Sofidel’s investment the largest in northeast Oklahoma in decades, but the project also involved more partner entities than any in the 13-year history of Tulsa’s Future. Partners involved in the project included utility companies, tribal nations, and state and federal agencies. 2 The 1.8-million-square-foot plant, Chamber’s goal of attracting new and 1,000,000). Last year alone, the expected to be operational by 2020, economy, technology-based jobs to Tulsa area boasted 25 projects that will have a production capacity of northeast Oklahoma. The Amazon added at least $1 million in capital 120,000 tons of tissue paper each project was also the result of a strong investment, created at least 20 new year. partnership between the Chamber, jobs, and resulted in at least 20,000 the City of Tulsa, the Cherokee Nation, square feet of new business space. In June, Amazon announced plans to the Muscogee (Creek) Nation, Tulsa build a more than 2-million-square- Tech, former Gov. Mary Fallin, the Those projects and many others are foot fulfillment center near Tulsa Oklahoma Department of Commerce prime examples of how a collaborative, International Airport. The company and the Oklahoma Department of strategic and holistic economic devel- will invest an estimated $130 million Transportation. opment model can transform a region. for this state-of-the-art facility. Once completed, Amazon will hire Site Selection Magazine recognized the Partners throughout the region, which 1,500 people, the single largest jobs Tulsa region for our success in business include municipalities, counties, tribes, investment since Tulsa’s Future began expansion and educational institutions and workforce with an annual payroll of roughly $50 attraction projects development organizations, have million. during 2018. Our embraced the collaborative foundation region ranked sixth in of Tulsa’s Future. Their efforts and Amazon’s fulfillment center will America for midsize commitment to regional prosperity feature the latest in automation, metros (populations have exceeded expectations and which aligns with the Tulsa Regional between 200,000 enabled a record-setting year for economic development in northeast Oklahoma. Mike Neal, president and CEO of the Tulsa Regional Chamber, and Mayor G.T. Bynum celebrating Amazon’s announcement to build a 2-million-square- foot facility that will employ 1,500 people in Tulsa. TULSA’S FUTURE 2018 ANNUAL REPORT 3 EXPANDING NORTHEAST OKLAHOMA’S POTENTIAL Reaching $1.1 BILLION IN CAPITAL INVESTMENT two years ahead of schedule, northeast Oklahoma’s economic development efforts saw unprecedented success in 2018. At the core of Tulsa’s Future strategy is business retention and expansion, and on that front, the region celebrated several major announcements. Greenheck Group, a Wisconsin-based manufacturer of air movement, control and conditioning equipment, celebrated the completion of phase one of its Tulsa campus, a $100 million capital investment. The expansion was a collaboration between the Chamber, the City of Tulsa and several regional partners, including the Cherokee Nation. 4 This first phase included more than 200,000 square feet of operational space and 20,000 square feet of office space. With the completion of phase one, Greenheck leadership also revealed details about the second phase of the company’s North construction, which will include American supply more than 160,000 square feet of chain, and will add manufacturing space for dampers 150 high-quality and power roof ventilators. The manufacturing jobs campus will support more than to Whirlpool’s current 600 jobs once phase two opens for 1,650 Tulsa employees. production in early 2020. Whirlpool’s partnership with Another big win was Whirlpool’s Tulsa dates back to 1994, when announcement of a $55 million, Chamber staff worked with TULSA’S FUTURE 2018 ANNUAL REPORT 798,000-square-foot factory Whirlpool to secure incentives distribution center. The project will through Oklahoma’s then-newly expand Whirlpool’s manufacturing implemented Quality Jobs and distribution capabilities at Program. Whirlpool added more its Tulsa plant, which currently jobs with a significant expansion produces more than 2 million in 2013. Whirlpool’s investment cooking appliance products each shows how recruiting a company year. The new facility will support to the region and fostering increased production capacity that relationship supports our and improve efficiencies within economy for years to come. 5 PROPELLING PROSPEROUS NORTHEAST FUTURE OKLAHOMA FORWARD To be a leader in quality and sustainable regional economic development, high-value growth in existing and new businesses is necessary. In 2018, Tulsa’s Future saw a record amount of high-value growth and exceeded its goal of $1.1 billion in capital investment in northeast Oklahoma two years ahead of schedule. In addition to record-breaking projects like Sofidel, Amazon, Greenheck and Whirlpool, Tulsa’s Future celebrated a number of other wins. The aerospace industry is a vital contributor to the regional economy, and several aerospace companies furthered their investment in northeast Oklahoma in 2018. Spirit AeroSystems modifies flight simulators, will add 100 will expand its Tulsa operations and new jobs over the next five years. This invest $80 million in capital projects. expansion will more than double the As part of the expansion, the company company’s current employee count. will hire 250 additional employees. These announcements are examples American Airlines strengthened of the continued growth in our region, its presence in Tulsa and added and were the result of a collaborative new engine work at the company’s effort among the Tulsa Regional maintenance base. The added Chamber, the City of Tulsa, Tulsa’s work resulted in 30 to 40 new jobs. Future investors and regional partners. CymSTAR, an engineering firm that 6 5,089 JOBS CREATED IN 2018 Advanced Aerospace & Energy Manufacturing Defense 599 1,236 864 Health Care Information Professional Services 70 Technology & Regional 360 Headquarters 460 Transportation, Distribution & Logistics 1,500 YEAR 3 / 2018 PROGRESS 2,045 3,044 $823.2 mil Jobs created with an Jobs created with an Capital investment average annual wage average annual wage in the region by TULSA’S FUTURE 2018 ANNUAL REPORT above $50,000 below $50,000 primary employers Tulsa’s Future III Total: Tulsa’s Future III Total: Tulsa’s Future III Total: 7,106 6,667 $1.1 billion Five-Year Goal: Five-Year Goal: Five-Year Goal: 12,500 10,000 $1.1 billion 7 FOSTERING THE INNOVATIVE REGION’S THRIVING FUTURE ENTREPRENEURIAL CULTURE As Tulsa’s premier startup incubator, The Forge continues to improve and expand its services to work with companies that have a proven business model and are poised to scale. The Forge helps startups through strengthened existing offerings programming designed to accelerate to connect small business owners growth, including certified growth with peers and mentors. Nearly assessments, Tulsa’s original 1,000 people from more than 750 startup mentor network, milestone businesses participated in Connection management and auxiliary programming in 2018, a 15 percent memberships. The Forge provided increase in company representation startup assistance to 21 entrepreneurs over 2017. in 2018 and helped three companies achieve commercialization. The Chamber has also been a key partner and sponsor of citywide entrepreneurship events, including Tulsa Global Entrepreneurship Week and the 200ok tech conference. The Chamber’s Tulsa Small Business Connection continues to be a resource for northeast Oklahoma’s small business owners. The Connection launched new programs and 8 Pictured left to right — Amy Bates, Merry Maids; Weldon Bowman, W Design, 2018 Small Business Person of the Year; Steve Bradshaw, BOK Financial Corp.; Mike Neal, Tulsa Regional Chamber; Angela Byers, Byers Creative. YEAR 3 / 2018 PROGRESS The Forge and 36 Degrees North 3 businesses achieved assisted 86 commercialization businesses and in 2018.