May General Meeting Recap & Slides
Intel Sparks Visibility, Growth for Columbus Area
On Thursday, May 19 nearly 70 CAA members attended the second General Meeting of the year at Brookside Country Club to hear Matt McQuade with One Columbus provide an update on the Intel project in Ohio.
CAA Executive Director Laura Swanson welcomed everyone to the meeting, acknowledging the Past Presidents and Hall of Fame members in the room before highlighting the upcoming Bus coming up in June event. Next, CAA President Steve Papineau recognized all the new CAA members in attendance before introducing McQuade as the keynote speaker.
McQuade began with a bit of an education on One Columbus noting that they are the public/private partnership responsible for growing the regional economy for the last decade and the Columbus region partner for JobsOhio with the goal of creating prosperity and bringing new jobs into the market focusing on projects that are anchors and bring new jobs into the region.
“I’m not a housing person, so I can’t give you any forecasts for what this is going to mean for the housing market,” McQuade started. “Although, as I’m sure you can appreciate, we are at deficit and are behind the eight ball as a region and need more housing. We have needed more housing, and this is only going to put more pressure on that.”
Calling the Intel project, the largest, most transformative economic event potentially in the state of Ohio, the only thing McQuade likened to the project was the choice for Honda to locate in Central Ohio in 1980. The initial phase will be approximately $20 Billion dollars in investment for Intel to build two factories. The first phase will indirectly create over 3,000 jobs and 7,000 construction jobs.
“It’s a really big deal. We really are the envy of the rest of the country right now and maybe the rest of the world for getting something like this,” McQuade commented. “There is no single type of operation that has such far reaching impacts as semi-conductors.”
There are some anxieties that pair with such a large project including housing demand. Stating that Intel won’t be operational until 2025, McQuade indicated that there is time to figure out answers to those challenges. There are powerful, bright and motivated people working from the local to the state level to be sure everything is being done in a thoughtful way.
One of the added benefits to the project is the transformation of education in the state. This project will substantially increase STEM demand in Ohio. Six weeks after the announcement of development Intel announced that there would be a $50 million investment in Ohio’s education system in matching grants geared mostly toward making sure education here is lined up with the needs of the semi-conductor industry.
“This project is really the state of Ohio and the Columbus region answering a call to action,” McQuade said. “It’s news to nobody that one of the main products that totally disrupted the supply chain was semi-conductors. We’re answering a call to action by bringing domestic chip manufacturing here. This is a major hedge for our future not just in this state and region. We’re proud that that’s going to be done here.”
McQuade believes this is an opportunity for manufacturing to come back in the Midwest in a big way. When one analyzes the local population it’s also a win. Parts of Ohio have experienced brain drain on a level Columbus has not. Ohio State is already one of the largest alumni bases within Intel at their Oregon and Arizona facilities. This will allow for those graduating from Ohio colleges and high schools to stay in the state.
Outlining the timeline with members, construction has already begun, and Intel has begun hiring for key roles in the building process. Vertical construction will start in the fall with a mid-2025 date to be up and running. Intel is working to ensure that education is in line with the needs. The workforce will be balanced with half needing bachelor’s degrees and the other half needing high school education or associates degrees allowing for options for everyone. There will be a focus on recent graduates and on internships leading to a full-time job. The hiring of veterans is a significant goal for Intel as is diversity, equity, and inclusion. Intel is committed to creating the most diverse workforce in their industry and Columbus.
In addition to Intel, there will 30 to 50 companies that supply Intel who are looking to locate near the facility. McQuade stated that they’ve already begun to work with those entities on location in the best part of the state, including Appalachia, a part of the state that needs jobs the most. Intel is already utilizing over 140 Ohio companies for supply allowing those companies growth opportunities as well.
“When I say that we’re in the middle of a new industrial revolution for the state of Ohio, it’s not hyperbole,” McQuade said. “It is happening, and this is sending signals to the market where companies in the past that have had great technology are going to start thinking about Columbus.”
Noting the challenges that come with a project this size, McQuade stated that all the challenges have been permeating for over a decade, but still need solutions. The first issue is rapid growth. Columbus has added 250,000 people in the last decade. McQuade feels that the announcement of Intel will accelerate growth beyond earlier projections.
“This is where housing comes into the picture. We have been in the midst of a housing crunch for quite some time. It’s starting to dampen a bit with the volatility in the market and interest rates. But it’s still kind of terrible before that,” McQuade said. “In 2002 when the population was 1.2 million, we were building 5,000 more homes a year than today when our population is 2.2 million. This is something that’s been going on for a long time. We’re the jobs people, not the housing people, but all the sudden, it’s an economic development issue because all the sudden it’s impacting the cost of living here when we’re paying more for homes that we used to.”
McQuade said they’re beating the drum everywhere they go that there needs to be more housing. A healthy market when it comes to dynamics between housing and job growth would be like creating one new unit of housing per new job created, this is the case in Minneapolis. In Columbus, the statistic is .57 units per job created. This state is the pure depiction of how economic growth has outpaced housing growth.
Following his presentation, McQuade answered questions regarding the severity of the chip shortage and what it means for the country especially with the future of electric vehicles and the advancement of technology and what is expected to follow the Intel project which could lead to cities being built up including restaurants, hotels, hospitals and more in the area.
“Growth, plan for growth,” McQuade emphasized. “We may be going into a recession nationally in the next couple of years, but in the Columbus market there’s going to be a lot of activity based on what’s happening out there. We know this is a special place, it’s a vibrant place. We saw $250 million dollars of earned media after Intel was announced. That’s how much visibility we gained as a region.”
After the conclusion of the presentation, Swanson returned to the podium and thanked everyone for coming and once again inviting everyone to join the Bus Tour and the Golf Outing.
On Thursday, May 19 nearly 70 CAA members attended the second General Meeting of the year at Brookside Country Club to hear Matt McQuade with One Columbus provide an update on the Intel project in Ohio.
CAA Executive Director Laura Swanson welcomed everyone to the meeting, acknowledging the Past Presidents and Hall of Fame members in the room before highlighting the upcoming Bus coming up in June event. Next, CAA President Steve Papineau recognized all the new CAA members in attendance before introducing McQuade as the keynote speaker.
McQuade began with a bit of an education on One Columbus noting that they are the public/private partnership responsible for growing the regional economy for the last decade and the Columbus region partner for JobsOhio with the goal of creating prosperity and bringing new jobs into the market focusing on projects that are anchors and bring new jobs into the region.
“I’m not a housing person, so I can’t give you any forecasts for what this is going to mean for the housing market,” McQuade started. “Although, as I’m sure you can appreciate, we are at deficit and are behind the eight ball as a region and need more housing. We have needed more housing, and this is only going to put more pressure on that.”
Calling the Intel project, the largest, most transformative economic event potentially in the state of Ohio, the only thing McQuade likened to the project was the choice for Honda to locate in Central Ohio in 1980. The initial phase will be approximately $20 Billion dollars in investment for Intel to build two factories. The first phase will indirectly create over 3,000 jobs and 7,000 construction jobs.
“It’s a really big deal. We really are the envy of the rest of the country right now and maybe the rest of the world for getting something like this,” McQuade commented. “There is no single type of operation that has such far reaching impacts as semi-conductors.”
There are some anxieties that pair with such a large project including housing demand. Stating that Intel won’t be operational until 2025, McQuade indicated that there is time to figure out answers to those challenges. There are powerful, bright and motivated people working from the local to the state level to be sure everything is being done in a thoughtful way.
One of the added benefits to the project is the transformation of education in the state. This project will substantially increase STEM demand in Ohio. Six weeks after the announcement of development Intel announced that there would be a $50 million investment in Ohio’s education system in matching grants geared mostly toward making sure education here is lined up with the needs of the semi-conductor industry.
“This project is really the state of Ohio and the Columbus region answering a call to action,” McQuade said. “It’s news to nobody that one of the main products that totally disrupted the supply chain was semi-conductors. We’re answering a call to action by bringing domestic chip manufacturing here. This is a major hedge for our future not just in this state and region. We’re proud that that’s going to be done here.”
McQuade believes this is an opportunity for manufacturing to come back in the Midwest in a big way. When one analyzes the local population it’s also a win. Parts of Ohio have experienced brain drain on a level Columbus has not. Ohio State is already one of the largest alumni bases within Intel at their Oregon and Arizona facilities. This will allow for those graduating from Ohio colleges and high schools to stay in the state.
Outlining the timeline with members, construction has already begun, and Intel has begun hiring for key roles in the building process. Vertical construction will start in the fall with a mid-2025 date to be up and running. Intel is working to ensure that education is in line with the needs. The workforce will be balanced with half needing bachelor’s degrees and the other half needing high school education or associates degrees allowing for options for everyone. There will be a focus on recent graduates and on internships leading to a full-time job. The hiring of veterans is a significant goal for Intel as is diversity, equity, and inclusion. Intel is committed to creating the most diverse workforce in their industry and Columbus.
In addition to Intel, there will 30 to 50 companies that supply Intel who are looking to locate near the facility. McQuade stated that they’ve already begun to work with those entities on location in the best part of the state, including Appalachia, a part of the state that needs jobs the most. Intel is already utilizing over 140 Ohio companies for supply allowing those companies growth opportunities as well.
“When I say that we’re in the middle of a new industrial revolution for the state of Ohio, it’s not hyperbole,” McQuade said. “It is happening, and this is sending signals to the market where companies in the past that have had great technology are going to start thinking about Columbus.”
Noting the challenges that come with a project this size, McQuade stated that all the challenges have been permeating for over a decade, but still need solutions. The first issue is rapid growth. Columbus has added 250,000 people in the last decade. McQuade feels that the announcement of Intel will accelerate growth beyond earlier projections.
“This is where housing comes into the picture. We have been in the midst of a housing crunch for quite some time. It’s starting to dampen a bit with the volatility in the market and interest rates. But it’s still kind of terrible before that,” McQuade said. “In 2002 when the population was 1.2 million, we were building 5,000 more homes a year than today when our population is 2.2 million. This is something that’s been going on for a long time. We’re the jobs people, not the housing people, but all the sudden, it’s an economic development issue because all the sudden it’s impacting the cost of living here when we’re paying more for homes that we used to.”
McQuade said they’re beating the drum everywhere they go that there needs to be more housing. A healthy market when it comes to dynamics between housing and job growth would be like creating one new unit of housing per new job created, this is the case in Minneapolis. In Columbus, the statistic is .57 units per job created. This state is the pure depiction of how economic growth has outpaced housing growth.
Following his presentation, McQuade answered questions regarding the severity of the chip shortage and what it means for the country especially with the future of electric vehicles and the advancement of technology and what is expected to follow the Intel project which could lead to cities being built up including restaurants, hotels, hospitals and more in the area.
“Growth, plan for growth,” McQuade emphasized. “We may be going into a recession nationally in the next couple of years, but in the Columbus market there’s going to be a lot of activity based on what’s happening out there. We know this is a special place, it’s a vibrant place. We saw $250 million dollars of earned media after Intel was announced. That’s how much visibility we gained as a region.”
After the conclusion of the presentation, Swanson returned to the podium and thanked everyone for coming and once again inviting everyone to join the Bus Tour and the Golf Outing.
| Click to download speaker slides.pdf |
