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09/10/2024  |  News, Atlas Stories, ESG

The U.S. is striving to build a domestic supply chain to meet its clean energy goals

How one state used programs, people and place to become the new epicenter of the country’s clean energy economy.

Until the early 2020s, the conversation around clean energy manufacturing typically centered on a few states, particularly Texas and California. However, deep investments supported by new federal funding and tax incentives are opening the door for other states. For example, my state, Georgia, is quickly becoming a power player by capitalizing on its infrastructure and resources. The result is a thriving clean energy industry that has attracted public funding and private investments across the supply chain from materials and components, EV, energy storage and solar panel manufacturing to end-of-life battery recycling.

From my perspective, Georgia has been able to leverage three key assets—a vast talent pool, affordable cost of living, and geographic advantages—to draw the businesses and workers needed to establish a robust clean energy supply chain.

Here’s a closer look at each success factor and where companies, no matter their location, can co-opt some or all of these strategies to be a part of the growing energy industry.

FOSTERING—AND RETAINING—THE TALENT POOL

Nationwide, the clean energy industry demands talent from a wide range of disciplines across the educational spectrum. As clean energy technology rapidly evolves, attracting and retaining talent, particularly for engineering and technicians, will be required to fill jobs at new manufacturing plants in the planning and construction phases.

Georgia’s vast employment opportunities and its proximity to a network of leading universities and technical schools, both in and out of state, provide a continual talent pool for its growing ecosystem of manufacturing companies.

At Stryten Energy, located in Alpharetta, we have seen a growing number of students looking for internships and co-op opportunities from colleges and universities not only in Georgia, but also from Florida, Alabama, and other states across the Southeast. These students are attracted to schools in the Southeast with pioneering programs in sustainability and energy-related disciplines.

By fostering relationships with STEM students across the educational spectrum, employers have a better chance to recruit and retain talent post-graduation. Partner with high schools, technical schools and community colleges, and four-year universities in your state or region to provide funding and in-kind donations for research labs. Not only does this give students hands-on experience working with various technologies, but it puts your company front and center for those talented individuals looking for a place to begin their career.

BUILDING A CLEAN ENERGY SUPPLY CHAIN

A healthy labor market and lower cost of doing business are key to attracting businesses and skilled workers throughout the clean energy supply chain.

Business leaders should actively seek out and leverage federal funding opportunities, as Georgia has done, to attract leading clean energy innovators. By tapping into programs such as the Inflation Reduction Act and the Bipartisan Infrastructure Law, Georgia has laid the groundwork for a robust clean energy future. The state’s proactive approach has resulted in $23.12 billion in clean energy investments and the creation of nearly 29,500 jobs, making it second in the nation for clean energy investment.

How can you, your company, and other leaders in your industry prioritize and support policies that foster a vertically integrated supply chain?

Consider what complementary businesses are located near your company. Focus on collaboration opportunities that might reduce supply costs, or enhance offerings and innovation.For example, we partnered with a large utilities provider in Georgia to prepare its infrastructure for the increased demand for power to support the onshoring of manufacturing facilities. Meeting this demand means adding battery storage to a “mixed grid” strategy consisting of nuclear, natural gas and renewable energy generation.

LEVERAGING GEOGRAPHICAL STRENGTHS

To build a strong domestic supply chain, business leaders should prioritize locations with robust multi-modal transportation access. Georgia serves as an exemplary model with its strategic advantages, such as Atlanta’s Hartsfield-Jackson International Airport—the world’s busiest airport—and key infrastructure like the CSX and Norfolk Southern railroads, and the Port of Savannah, North America’s largest single container terminal. By positioning your operations near similar transportation hubs, you can enhance logistics efficiency, reduce costs, and compete effectively against global imports, particularly from China.

Additionally, forging domestic partnerships is essential to insulating your supply chain from the risks associated with foreign suppliers. Awell-integrated infrastructure supports a resilient supply chain, offering shorter and more reliable shipping routes, while also protecting your business from uncertainties like global shipping delays and ethical concerns related to forced labor and poor environmental practices.

Focus on creating a reliable and competitive supply chain in your region so that regardless of what happens in the world, you are prepared and have leveraged your geographical strengths.

A STATE MODELING HOW TO ADVANCE CLEAN ENERGY GROWTH

Georgia has leveraged these three key factors—a vast talent pool, affordable cost of living and geographic advantages—to establish a robust clean energy supply chain. But such advantages aren’t exclusive to the Peach State. Business leaders across the country can look to Georgia as a blueprint for success, and apply the state’s strategies to their own regions.

This article was originally authored by Mike Judd, CEO and President of Stryten Energy, for Fast Company Executive Board.