Good afternoon,
This week, the Delaware Council on Development Finance approved a $2.2 million Strategic Fund grant for Massachusetts medical services company Hologic.
It followed earlier approval of a grant of similar size for an expansion by the health care side of Siemens.
The Hologic and Siemens sites in the Glasgow area south of Newark have a history that dates back to the former medical operations of DuPont Co.
All too often, operations close to the home of the former mother ship move to the Sun Belt or Midwest.
Credit goes to a skilled and flexible northern Delaware workforce that reduced the temptation to move elsewhere.
(Accompanying photo of members of the Council on Development Financial at a 2019 meeting)
One key tool is the Strategic Fund, which allows Delaware to offer assistance to companies that often get far more attractive incentives from other states.
The grants draw fire from those who claim incentives often amount to corporate welfare for well-heeled corporations.
in a perfect world, it would be better if states were not in the business of offering incentives.
Still, Delaware is usually able to offer packages with minimal risks. Grants are based on companies following through with new or sometimes retained jobs, typically positions with higher pay. The state’s investment is usually recouped relatively quickly in the form of income taxes paid by employees.
One exception may be a previously approved $19 million grant for a pharmaceutical manufacturing site in Middletown proposed by a Chinese company. The size of the above grant is far greater than others approved in recent years, and details remain murky.
On the plus side, it has been reported that the company in question did purchase land for the site. Also, the plant would address the critical issue of bringing more pharmaceutical manufacturing onshore.
How the project plays out will be of great interest as health care emerges as the driving force n the state’s economy.
Stay dry and safe. This newsletter returns on Monday. – Doug Rainey, chief content officer.
