Day: January 12, 2022

GlobalFoundries’ economic impact in Chittenden County and the state is tremendous, and its continued success and growth in Vermont is important to the business community. As one of the state’s largest private employers, GlobalFoundries employs 2,200 Vermonters and generates an additional 5,000 indirect. GlobalFoundries owns 8% of the 12% of global chip manufacturing in the nation, 93% of the smartphone market, and is an emerging leader in the renaissance for United States semiconductor chip manufacturing for the auto industry with a recent partnership with the Ford Motor Company.

To address the challenge of high energy costs, GlobalFoundries has proposed an innovative solution; a forward-thinking self-managed utility (SMU) as a way to cost-effectively and efficiently manage its own energy portfolio and meet its customers’ as well as Vermont’s high carbon reduction standards.

Unfortunately, critics have misrepresented the impacts to Vermont and mischaracterized GlobalFoundries’ intent. The benefits include:

• GlobalFoundries economic impact in Chittenden County and the state is enormous and its continued growth and success in Vermont is important to all of us.
• The approval of a Self-Managed Utility is critical for GlobalFoundries to manage its own energy costs, remain competitive nationally and globally, and continue to invest and grow in Vermont.
• The proposal has minimal impact on ratepayers ꟷ zero in the first year and estimated to be less than 0.27% in any year thereafter.
• Approval will enable GlobalFoundries to continue to make substantial investments in cutting-edge renewable and carbon-free energy generation projects at their campus in partnership with the University of Vermont and other local businesses.
• GlobalFoundries Self-Managed Utility will help meet Vermont’s climate goals.

The next step in the process will be before the Public Utility Commission who will rule on GlobalFoundries’ petition to move forward. 

For questions or to learn more, please contact Chris Carrigan.

The Vermont Chamber supports the removal of the State income tax on military pensions. Vermont is one of only four states (CA, VT, VA, Washington, D.C.) that offers no tax relief to military retirees. Removing the tax would serve to recruit and retain a diverse population of military retirees and help address the severe worker shortages for all industries. This is a legislative priority for Vermont Governor Scott, the Vermont National Guard & Veterans Affairs, and the Vermont Chamber of Commerce.

To learn more, please contact Chris Carrigan.

The Vermont Chamber supports the expansion of the manufacturing tax exemption, as proposed in H.437, a bill currently in the Senate Committee on Finance. The bill would exempt machinery and equipment used as an essential part of an integrated production operation and all ancillary processes between raw materials and finished goods. The benefits to manufacturers include greater compliance and fewer costly audits, savings to reinvest in workforce recruitment, new machinery and equipment, and updated technology for cybersecurity compliance. Expansion would also serve as an economic development recruitment tool and make Vermont competitive with the thirty-three other states that have similar tax exemptions.

To learn more, please contact Chris Carrigan. 

Over the past twenty-one months manufacturers have weathered the pandemic and now face several challenges. Supply chain bottlenecks and disruptions have arisen due to a rapid rebound in customer demand for commodities, supplies, materials, and goods. The lack of semiconductor chips, for example, continues to negatively impact the U.S. auto industry. Illustrating the degree of disruption, the price of new vehicles soared 11.1% in 2021.

Fueled by strong consumer demand and shortages of goods amid a snarled supply chain, U.S. inflation hit a four-decade high in December with the Consumer Price Index (CPI) rising by 7%, the highest since 1982 according to the Labor Department. Rising inflation is also outpacing wage growth.

Along with inflation, the world is in an energy crunch and manufacturers are bracing for soaring energy and utility costs. Additionally, and, exacerbated by the Great Retirement, Reshuffle, and Resignation, manufacturers now face worker shortages. Not surprisingly, manufacturer’s sentiment dropped in December according to the Institute for Supply Management.

While supply chain, pricing pressures, and workforce challenges will persist in the new year, new orders for manufactured goods increased 1.6% from October to November, according to the U.S. Census Bureau, supply delivery times improved, and the manufacturing sector overall continues to expand. Sentiment remains strongly optimistic for Q4 and 2022 according to the National Association of Manufacturers.