But the former Pueblo still faces evolving challenges and some new opportunities as the pandemic has permanently disrupted some traditional business and economic development models, said the local economic development agency secretary. Sun Corridor Co., Ltd. Say.

“I thought it was going to be back to normal. I was so wrong,” Sun Corridor’s Joe Snell said Wednesday after a packed year at the El Conquistador Tucson Hilton Resort. He spoke at the luncheon of the next general meeting.

“Times are different now. Looking back over the last three years, drivers have definitely changed,” said Snell, who took over the current Sun Corridor in 2005.

Snell said the major disruptions to global supply chains caused by the pandemic have led more companies to consider relocating or expanding domestic production of critical products such as semiconductors and medical devices.

In the Sun Corridor, prospects for manufacturing projects have increased 40% over the past three years, but demand for office projects has plunged 78%, he said.

Meanwhile, the growing use of electric vehicles has more than tripled inquiries about automotive projects, Snell said.

Last December, the Utah-based startup american battery factory announced plans to build a new headquarters south of Tucson International Airport and its first “Gigafactory” to manufacture its own lithium iron phosphate battery cells, with an investment of more than $1 billion and the potential to employ up to 1,000 people. It is expected.

The company said it plans to break ground this summer on a site at the Aerospace Research Campus in Pima County.

Also in December, based in Tucson Shion Power Co., Ltd. announced that it will expand production of lithium metal battery cells for EVs to a 111,400-square-foot building on the south side of Tucson that will employ 150 workers once the renovation is complete. The factory he plans to go into operation in 2026.

Other business moves and expansions in the last three years include major expansion of Roche Tissue Diagnostics’ Marana site, expansion of Advanced Financial Co.’s local customer service center, expansion by self-driving truck developer TuSimple, and self-driving startup Pony.ai.

“Despite all the turmoil, the past three years have been pretty smooth,” Snell said, praising the early efforts of local business leaders to respond to the pandemic.

While Zion has found an existing building to suit its purpose, the lack of readily available industrial space in the Tucson area remains a major concern, Snell said.

“We don’t have enough buildings to house our businesses, and we don’t have enough land for manufacturing,” he said, adding that Tucson was “a victim of its own success.”

“What I’m worried about is the lack of industrial space and the projects that sniff us and fly right over us,” Snell said.

He said the Tucson area also needs major investments in infrastructure, including repairing many local roads, installing new power lines, and installing new high-speed broadband networks. pointed out that it could keep the

Mr. Snell said workforce development and talent attraction remain key drivers of companies’ location selection decisions.

Recruiting and retaining talent was a key driver of Sun Corridor’s 2021 initiative, the Pivot Playbook, to recalibrate efforts during the pandemic.

The plan also includes leveraging corporate relocation to the middle market, adding shovel-ready construction sites and speculative industrial buildings, developing new workforce training programs, and promoting local tourism. rice field.

Talent attractiveness efforts include ThriveinTucson.com, an online portal hosted by Sun Corridor, which offers a wealth of information about Tucson’s urban energy, arts and culture, affordability, lifestyle, It promotes sports and education.

Judy Rich, president and CEO of TMC Health and outgoing Sun Corridor chairman, said Tucson is on the rise as the Sun Corridor focuses on attracting new businesses and helping local businesses grow. Said it was on track.

The Sun Corridor is a nonprofit funded primarily by business, backed by “investors” including most of the region’s largest employers and partners, including local government, UA, and the Tucson Airport Authority. Founded in 2015 as a successor to Tucson Regional Economic Opportunities.

“But the economic climate is changing rapidly… we may not be able to return to the normalcy we used to know,” Rich said. Rich served as Sun Corridor Chairman for three years before being succeeded by Sun Corridor President and CEO Susan Gray.UNS Energy, parent company of Tucson Power Company

Tucson looks forward to building a green energy industry, including battery manufacturing, but energy policy experts tell Sun Corridor audiences the country has a lot to do in its clean energy transition. rice field.

keynote speaker James W. ColemanA law professor at Southern Methodist University and a non-resident senior fellow at the conservative American Enterprise Institute said power output from coal-fired power plants in the United States has declined since 2010, to 19% of total power output by 2020. , while natural gas increased sharply. The share is 40%, with renewable energy and nuclear power each around 20%.

Renewable energy sources such as solar and wind are expected to generate 49% of the world’s energy by 2050, but power transmission when the sun isn’t shining and the wind isn’t blowing Natural gas is needed at this time to balance the net, Coleman said. He said.

Coleman said the U.S. power grid has been stretched to its capacity in the midst of the ongoing energy transition, and much of the U.S., including the Southwest, is now short on operating reserves in above-normal summer conditions. It said it was at a “high” risk that it could

Renewable battery storage is one solution, Coleman said, but a major problem in the transition to renewable energy and transportation electrification is the U.S. reliance on China and other countries for critical battery materials. said.

The U.S. is the world’s largest producer of oil and natural gas, but the commodities most important to the energy transition, such as lithium and cobalt, cannot make it into the top 10, he said.

“We are very dependent on countries that we don’t want to be dependent on,” Coleman said.

In addition to mining raw materials, China is a major processor of lithium, cobalt and rare earth elements used in many electronic devices, he said, producing 66% of the world’s EV battery cells.

Current efforts to accelerate mining of critical metals in the United States include the planned Hermosa Mine in the Patagonian Mountains south of Tucson, which will provide electric vehicle batteries and other resources for the growing clean power economy. plans to mine zinc and manganese, two important minerals used in the manufacture of the company’s products. .

In early May, the proposed $1.7 billion project became the first mine to be accepted into an Obama-era program to streamline the federal licensing process for critical infrastructure.

Emerging technologies such as new forms of energy storage and new battery chemistries could help the U.S. energy transition, Coleman said.

American Battery Factory is promoting lithium iron phosphate battery technology that does not use the nickel or cobalt used in common lithium-ion batteries.

While the federal government has earmarked about $390 billion for clean energy initiatives, including solar, wind, hydrogen and carbon capture as part of the Inflation Control Act, how to make the most of that funding is new transmission. We need to build power lines and pipelines. Mr Coleman said.

“All of these resources – solar, wind, hydrogen and carbon – will rely heavily on the development of linear infrastructure, transmission lines and pipelines,” he said.

Coleman said the project permitting process needs to be accelerated to meet clean energy goals, and the recent congressional debt ceiling agreement included a clause setting time guidelines for environmental reviews. pointed out that