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 Feature Industry Articles 
Thursday, January 10 2019
Green Renewable Economy, Boom or Boondoggle?

By Don Holbrook, Site Location & Economic Incentives Consultant

The economy has been on a rabid growth spurt since 2012 or 2013 depending on your outlook on net job growth. In fact, 2018 has seen some of the best GDP in decades. But, all this could be coming to an end soon. Why? Another perfect storm has built up just over the horizon and is about to make landfall in the U.S. shortly.

The ingredients for this slow down or recession involve some major shortsighted blunders and some transitional timing as well.

The rising interest rates are putting pressure on over-leveraged companies, tied to a trade war threat, a major shortage of talented high tech and skilled workers buoyed by rising fossil fuel prices, and now you have our current chaotic economy.

Now along comes the renewable clean energy expansion, which is highly supported by the general public as the wave of ballot initiatives continued in 2018 to ratchet up conversion to clean energy benchmarks. 

Posted by: AT 01:00 pm   |  Permalink   |  0 Comments  |  Email
Thursday, January 10 2019
Recent and Emerging Trends in Cybersecurity for Economic and Business Development

By Jim Damicis, Senior Vice President, Camoin Associates

What is Cybersecurity?
Hardly a day goes by with without news regarding cybersecurity threats. Whether it is about elections, eCommerce, business, or social media threats – digital systems are growing and creating both challenges and opportunities for business development. There are many definitions of cybersecurity. One I like to use is from computer systems leader, Cisco: “Cybersecurity is the convergence of people, processes and technology that come together to protect organizations, individuals or networks from digital attacks.
1” I like this definition because like it goes beyond technology to include people and processes. This aligns well with how I view economic development as operating within a dynamic system of people, organizations and networks.

Why is Cybersecurity Such a Big Deal?
So why such a big deal about cybersecurity? The answer: it is increasingly impacting our ability to conduct business from communications and networking, to markets, trade, logistics, and transactions. Additionally, our response to such threats to develop systems, services, and products that detect, correct, and protect is creating economic and business development opportunities. 

Posted by: AT 12:30 pm   |  Permalink   |  0 Comments  |  Email
Thursday, January 10 2019
A Site Selector's Perspective to Profit from Your Data Center!

By Angelos Angelou, Founder & CEO, AngelouEconomics,

In real estate, it’s about: “Location, Location, Location!” Location matters – no really, it does!  When the data amount is region-specific, it is important to have data centers off-site in the areas when needed. It is also a great option for driving down costs coming from being away from a major data hub such as those in cities. This is more than just choosing a data center closest to the customer’s business operations. Additionally, communities looking to recruit a data center operation should look at their commercial energy costs, talent pool and potential underdeveloped areas to place a data center. Connectivity will be a key consideration for a data center and is a key consideration for data center customers.

Both technological advances and companies adapting to industry changes contributed to the growth in number of data centers and data center expansions. A significant amount of the IT budget is spent on maintenance to keep up with the updates from growing customer demand.

Posted by: AT 12:00 pm   |  Permalink   |  0 Comments  |  Email
Thursday, January 10 2019
Plastics: Global Rankings and Industry Report

The 2018 Global Trends report, published by the Plastics Industry Association (PLASTICS), depicts a global plastics industry that is thriving despite numerous political and societal threats to the continued, unfettered operation of its supply chain.

At the time of this writing, the U.S. has attempted to rectify its trade imbalance with its trading partners. Existing free trade agreements have been updated and higher import tariffs have been imposed on a broad range of products—from aluminum and steel to other products vital to U.S. manufacturing, including plastics materials, machinery, products and molds.

Meanwhile, in the last 12 months, anti-plastics sentiment has grown as concerns about marine litter and waste have gripped the public consciousness. This has given proponents of material deselection a much greater audience for their arguments, and the introduction of bills that ban products like straws, bags and plastic foodservice packaging has continued, mainly in the U.S. and mainly in coastal states and communities.

Posted by: AT 09:00 am   |  Permalink   |  Email
Thursday, January 10 2019
Medical Device Manufacturing: A Growth Industry Healing the World

By Lisa A. Bastian, President, Bastian PR

The U.S. medical device industry holds the title as the world's largest medical device market, boasting a market size of around $156 billion. In 2017, the industry represented nearly 40 percent of the global medical device market.

Highly competitive and driven by heavily-funded R&D initiatives, its universe of diverse products prevent, diagnose and treat illnesses or diseases, or are used to detect, measure, restore, correct and modify a bodily function or structure for health reasons. Industry players create everything from dental equipment/supplies, electro-medical equipment and in-vitro diagnostics, to irradiation apparatuses, surgical appliances and medical instruments.

Posted by: AT 08:30 am   |  Permalink   |  Email
Thursday, January 10 2019
Technology in Key Supply Chains is Evolving Supply Chain and Logistics Planning

By Adam Wasserman, Managing Partner and Lois C. Yates, CEcD, GLDPartners

In one way or another, advances in product or business model technology has created quite significant changes in how companies are managing and planning their supply chains. Evolving corporate requirements have cascaded a wide range of new requirements to corporate supply chain managers and their external logistics partners. This dynamic has created a panoply of new challenges to what has been largely quite established and stabled supply chain environments.

To some in the logistics industry, these dynamics are creating new business opportunities, while to others these new requirements are producing challenges to legacy supply chain business. Generally speaking, these kinds of corporate requirement changes are causing upheaval and new logistics complexity – creating new opportunities for a number of logistics companies who are able to provide new service offerings and appropriate levels of product and customer care.

Posted by: AT 08:00 am   |  Permalink   |  0 Comments  |  Email
Tuesday, November 20 2018
Oil and Gas Production at Record Highs and Fossil Fuels Continue to Play a Major Role in the U.S. Economy

By Angelos Angelou, Founder & CEO, AngelouEconomics,

Fossil fuels—love them or hate them, they’re the backbone upon which modern civilization was built. They’ve made nations. They’ve sparked wars. And, most importantly, they’ve provided the key ingredient for the most rapid and sustained economic expansion in human history.

Yes, it’s true that fossil fuels—coal, oil, and natural gas—are by their nature finite resources. It’s also true that their use releases climate-impacting carbon emissions into the atmosphere. These considerations, as well as the rise of a new generation of renewable energy technologies, all but guarantee that fossil fuels will largely go by the wayside at some point in the future. Maybe it will be in our lifetime. Maybe it will be in our children’s lifetime, or their children’s. Given the constantly evolving trends, tech, and geopolitics influencing the global energy sector, it’s hard to make long-term prognostications with any certainty.

Posted by: AT 10:38 am   |  Permalink   |  Email
Tuesday, November 20 2018
Profiling the Food and Beverage Industry: Trends In Baking And Snack Foods

By Frank Spano, Managing Director and Kyle Johnson, Location Consultant, The Austin Company

The food and beverage industry in the United States has shown positive signs of expansion over the past ten years. Forecasts and growth models indicate this expansion will continue into the future, though possibly at a slower rate. The following factors may assist in explaining this upward trend:

  1. Major plant upgrades at existing operations or replacement of older, outdated facilities. Continued plant upgrades and existing plant expansions may result in more automation and less job growth.
  2. New product innovation based on changing consumer demands.
  3. Continued market entry into the U.S. from smaller and medium-sized European and Asian operations, along with continued growth from established foreign-owned operations located in the U.S.

One notable portion of the food and beverage industry, the baking and snack food industry, shines as an important segment of the U.S. economy with nine percent growth from 2007 to 2017. The following discussion examines this industry over the past ten years and makes general conclusions on its projected growth.

Posted by: AT 10:16 am   |  Permalink   |  Email
Tuesday, November 20 2018
3D Printing Finds a Custom Foothold in Manufacturing

From rocket thrusters to shoe soles, additive technologies expand their sights
By M. Mitchell Waldrop - Originally published in Knowable Magazine

Since May 2015, in a portion of its WorldPort distribution center in Louisville, Kentucky, United Parcel Service has been operating a spare parts warehouse with no spare parts. Instead, the facility is stocked with ultrafast 3D printers that can build up almost any plastic part that’s required, layer by layer by layer—and have it ready for UPS to deliver anywhere in the United States by morning.

“It was a no-brainer,” says Alan Amling, UPS’s vice president for corporate strategy. Storing spare parts for quick delivery was already a big moneymaker for the company, he says. UPS operates more than a thousand field stocking locations worldwide—all full of items that somebody might need someday, maybe. The industrial customers who pay for that service have to keep the parts available because of warranty contracts, says Amling. But they hate it. “Inventory storage costs are massive,” he says. “So we started to see 3D printing as a solution.”

Posted by: AT 09:40 am   |  Permalink   |  Email
Monday, November 19 2018
Reshoring: Changing Conditions Impact Location Decisions

By Harry Moser, Founder/President, Reshoring Initiative

For decades companies have been chasing cheap labor offshore and then importing products to sell in the U.S. market. The impact of offshoring on the U.S. economy has been significant. Offshoring to China and elsewhere have cost about five million U.S. manufacturing jobs, helped contribute to wage erosion and had a dramatic and negative effect on workers and the economy in every state. Communities have lost, on average, 27 percent of their manufacturing workforce since 2000. About 63 percent of the job loss is due to offshoring of jobs.

Companies have also been impacted, since their largest market, the U.S., has experienced flat or declining real personal incomes and thousands of business customers have disappeared. In view of the current strong surge of jobs back from offshore, understanding the reasons for the losses and the current opportunities to bring millions of jobs back can help site selection consultants and corporate real estate brokers succeed. Knowing what drives reshoring and FDI can help identify siting solutions that overcome the problems experienced offshore.

Posted by: AT 09:06 am   |  Permalink   |  Email
Monday, November 19 2018
The Healthcare Industry as a Critical Driver of Cluster Development

By Jim Damicis, Senior Vice President Camoin Associates, Alexandra Tranmer, Project Manager Camoin Associates

In previous research articles on healthcare, we have considered digital technology trends, the changing dynamics of real estate and retailization of the healthcare industry, and why healthcare should be a consideration in a community’s economic development strategic planning. This time around, our research examines the critical role that healthcare plays in supporting and growing industry clusters, specifically, Life Sciences, Information Communications Technology (ICT), and Medical Device Manufacturing. These clusters are producing significant contributions to the nation’s economy and creating high wage jobs.

While healthcare is often deemed too difficult to manage at a local level due to the federal involvement in regulations or overlooked as a non-export industry, local and regional economic developers can harness the workforce, technology, and sheer size of the healthcare industry to further support job growth in their communities. Furthermore, the number of projected openings in the healthcare field continue to rise and supporting and training the workforce for these positions will be crucial to ensuring the stability and growth of healthcare networks across the country, while providing significant employment and career opportunities.

Posted by: AT 08:50 am   |  Permalink   |  Email
Monday, November 19 2018
The Value and Challenges of Certified and Shovel Ready Sites in the Site Selection Process

By Phil Schneider, President, Schneider Strategy Consulting LLC

In 20 years, certified and shovel ready site programs have evolved from a unique tool and competitive advantage to economic development table stakes. Site readiness programs in one form or another have become an established part of many, if not most, economic developers’ tool kits. Site readiness programs are established in over 30 states, developed and managed by state and local economic development organizations – both public and private – chambers of commerce, electric power utilities, railroads, port authorities, and other industrial development entities.  

The reasons for their increasing popularity and ubiquity are clear: speed to market is increasingly critical in the site selection process, companies are no longer willing to bear the cost of extensive due diligence for multiple sites on their own, and the risk of site timing and condition unknowns has become unacceptable in the location process.

Posted by: AT 08:34 am   |  Permalink   |  Email
Tuesday, September 18 2018
Foreign Trade Zones: A Valuable Tool for Local and Regional Economic Development

By Greg Jones, Vice-President, FTZC™ (Foreign-Trade Zone Corporation)

In his Magnum Opus commonly known as “The Wealth of Nations,” 18th century Enlightenment philosopher and economist Adam Smith noted, “Every man thus lives by exchanging, or becomes in some measure a merchant, and the society itself grows to be what is properly a commercial society.” If one were to update this observation, one might say that every man and woman’s livelihood depends on the exchange or trade of goods, services, and every form of property. Since ancient times, trade in goods has fueled the growth of cities, the construction of roads, ports, and other infrastructure, and indeed, nations and empires. In those days the trade of goods was – literally – a pedestrian affair. Merchants loaded goods and commodities on a beast of burden and hoofed-it to the village, town, or city where the goods would be sold. Today, trade ranges across the globe, with raw materials, parts and components, and finished products being produced, marketed and transported in every country, city, town, and household via multiple modes of transportation: ocean, air, rail, and highway.

As trade has expanded and become more complex, competition has become global. The competition to attract and retain value-added business operations, and thereby reap investment, employment and prosperity is also global in scope.

Posted by: AT 10:10 am   |  Permalink   |  Email
Tuesday, September 18 2018
Trends in the Disruptive Digital Media Industry

By Christa Ouderkirk Franzi, CEcD, Senior Project Manager, Camoin Associates, Inc.

Digital media is arguably the most disruptive industry across the economy. Beyond completely transforming the way we watch movies, play video games, and receive news within just a few years, businesses that do any sort of online marketing are in a constant battle to keep up with the perpetual onslaught of new channels, applications, technology, and tactics to reach targeted audiences.  

The digital media industry is just as hard to define as it is to stay on top of. When broken down, ‘digital’ means anything related to using a computer and ‘media’ are the tools used to communicate across space and time such as books, radio, television, etc. While streaming radio over the internet is a form of digital media, the use of computers to communicate allows something that traditional broadcast media does not: interaction across networks. Consumers of digital media engage with content with a simple ‘like’ or ‘share’ to their personal online network, or they can create an online group to identify others interested in the same type of content. All these actions by consumers are a way of communicating preferences back to content producers and providers who use this information to better their offerings and the user experience. 

Posted by: AT 09:00 am   |  Permalink   |  Email
Monday, September 17 2018
Outdoor Recreational Economic Development Outlook 2019 and Beyond

By Don Holbrook, Site Location Advisor

“Outdoor recreation is an economic powerhouse in the United States, each year generating $887 billion in consumer spending and 7.6 million jobs. Generates $65B in federal tax revenue and $59B in state and local tax revenue.” -- Outdoor Industry Association

Consumer Spending on Outdoor Recreation ($887 Billion) Includes:

  • Outdoor Recreation Products - including gear, apparel, footwear, equipment, services and vehicle purchases ($184.5 billion)
  • Trip And Travel Spending - including airfare, fuel, lodging, groceries, lift tickets, guides, lessons and more ($702.3 billion)1

A Growing Body of Research Suggests that Investments in Outdoor Recreation Infrastructure and Programming Could Significantly:

  • Reduce crime rates by six to eight percent,
  • Improve educational outcomes for elementary, secondary and post-secondary students, including attention and test scores, retention and high school graduation rates.
  • Lower long-term individual and public health care costs by reducing stress and obesity rates, improving physical fitness and strengthening social bonds with family and friends. Exercise is a primary need for our otherwise sedentary gaming children.1
Posted by: AT 10:34 am   |  Permalink   |  Email
Monday, September 17 2018
Metal Fabrication: Bending, Shaping and Molding Its Future Growth 

By Michael D. White, author and freelance writer

It really isn’t too much of a stretch to say that metal fabrication is a lot like the musical score to a great film—you don’t realize how important it is until it isn’t there. 

Close your eyes and imagine Lawrence of Arabia, Dr. Zhivago, Cast Away, Jurassic Park, Saving Private Ryan or The Magnificent Seven without the music that lifts them to the level of masterpiece. Imagine, then, going about your business every day, or at least trying to, without refrigerators, washing machines, thumbtacks, air conditioners, automobiles, wire, bridge spans, locomotives, lap tops, knives and forks, airplanes, nuts and bolts, agricultural machinery, watches, window frames, hand tools, nails, and the humble ‘tin’ cans that contain everything from brake fluid to creme soda. Good luck. 

Ubiquitous metal fabricators across the country cut, bend, roll, punch, forge, turn, stamp, cut, shape and form metal–primarily steel and aluminum rods, bars and sheets-for virtually every ancillary industry one can conceive, from manufacturing, construction, aerospace, automotive, architecture, and electronics, to food processing, telecommunications, medical, energy and power generation, just to name a few. 

Posted by: AT 10:26 am   |  Permalink   |  Email
Monday, September 17 2018
NBAA Works to Preserve and Protect Vital Community Airports

By Ed Bolen, President and CEO, National Business Aviation Association (NBAA)

Business aviation is a vital industry throughout the U.S., not only for the companies that utilize its flexibility to compete in the global marketplace, but also for communities that rely upon business aviation as an indispensable lifeline to connect them to the world. For more than 70 years, the National Business Aviation Association (NBAA) has advocated on behalf of these distinct, but closely-related, interests. 

The vast majority of companies that rely on business aviation are small and medium-size companies, many of which are located in towns far from America's major metropolitan business centers. These enterprises depend upon business aircraft, operating from community airports, to remain connected and competitive.

Posted by: AT 10:18 am   |  Permalink   |  Email
Tuesday, July 24 2018
The Next Recruiting Challenge - Filling the Workforce Gap by Filling Workforce Development Programs

By Kate McEnroe, President of Kate McEnroe Consulting

We are living in a time when frustrated employers facing shortages of qualified job applicants co-exist with both young and experienced workers experiencing persistent challenges in finding opportunities to create a sustainable career. In response, an impressive amount of work is being done across the country to boost the short and long-term workforce pipeline at all levels.

A lot of progress has been made connecting educational institutions and workforce agencies to existing and new businesses so that training program are well aligned to job opportunities. The job is never really done, and funding is always a challenge, but in many cases the questions of what needs to be done has been answered, at least in theory.  

Posted by: AT 01:36 pm   |  Permalink   |  Email
Tuesday, July 24 2018
The Amazon Effect

By Angelos Angelou, Founder & CEO, AngelouEconomics,

How eCommerce is Changing the Face of Warehouse Operations

If you’ve ever spent more than ten consecutive minutes on social media, chances are you’ve stumbled across that most venerable of internet tropes, the “Only ‘90s Kids Will Remember” or “Kids Today Will Never Understand.” Half nostalgia, half curmudgeonly griping, these memes are a throwback to an era where the internet was dial-up, Blockbuster was a thing, and MTV actually played music videos. There’s usually an implicit message of smug intergenerational superiority running just beneath the surface.

However, a very real truth underlies this strain of internet humor. The past several decades have brought with them a dizzying amount of social and economic change, the effects of which have yet to be fully realized. Among the greatest of these upheavals has been the dramatic reshaping of one of societies’ core functions: how we buy things.

Posted by: AT 09:28 am   |  Permalink   |  Email
Tuesday, July 24 2018
Solar: A Prime Opportunity for Commercial and Industrial Real Estate

By Dan Whitten, Vice President of Communications, Solar Energy Industries Association

Prominent announcements from companies such as Apple, Walmart and Target of installing solar on their facilities has made the rest of the commercial and industrial sector take notice. And the message is that, in many places, solar is now a cheaper way to power buildings than the alternatives. That’s why we are seeing broad investment from companies large and small.

Solar has grown by leaps and bounds in the last decade. Initially a solution for select homeowners, and later a low-cost option for utility-scale projects, solar energy is now coming to a commercial facility near you. And if you look closely enough at the opportunities, it may very well be a solution for your own company. 

The solar industry has seen an uptick in corporate adoption since 2015. According to SEIA’s 2017 Solar Means Business report, which tracks commercial solar installations, top corporate solar users installed 325 MW last year, up 43 percent from 2015. These additions bring the U.S. to 2,562 MW of installed commercial solar projects, which span across 40 states plus Washington, DC and Puerto Rico. 

Solar energy is a cost-effective way for businesses to generate electricity they need for manufacturing, distribution, storage, retail and many other applications. Whether on a facility roof, ground-mounted or off-site through an independent power producer, corporate demand for solar is soaring as thousands of America’s top brands and small ‘mom and pop’ shops are making the switch and seeing the savings. This didn’t happen overnight.

Just a decade ago, solar was nothing more than a minor ripple in America’s energy landscape. The rooftop market was small and niche, utility-scale installations were limited and electricity generation was counted in megawatts (MW) rather than gigawatts (GW). In 2008, Congress extended a 30 percent solar investment tax credit (ITC) for eight years and permitted utilities and companies paying the alternative minimum tax to qualify for it, along with residential and commercial customers.

This move set the solar industry in motion for good. From just 2 GW installed in 2009 to more than 53 GW through 2017, solar energy has become a mainstay and growing player in the U.S. energy market, with enough installed capacity to power more than 10 million households.

While strong federal policy has helped the industry nationally, it is important to have state- and municipal-level policies. These policies bring solar to communities like yours and mine, reducing costs, creating jobs and boosting economic activity and making solar more accessible to homes and businesses. 

State incentive programs and rapidly-declining prices are driving development in the commercial and industrial (C&I) market, demonstrating again how important policy is to the growth and development of solar. 

The top ten states for solar predominantly employ some combination of three different policies. Net Metering, which supports rooftop and distributed solar; Renewable Portfolio Standards, which primarily support utility-scale solar; and effective Interconnection Standards, which allow projects both large and small to seamlessly connect to the grid. 

It is no coincidence that states that adopt these policies are home to more jobs and solar energy production. States such as California, North Carolina, Nevada and Massachusetts have, for the most part, implemented policies that are friendly to the development of solar, and it shows in their production.

For years, the industry’s top states remained largely unchanged, but recently the U.S. solar market has diversified. In 2017, 28 percent of installations were completed outside of the top ten state markets – this tops the record of 20 percent market share that these states achieved in 2016. States on both sides of the political spectrum are opening their eyes to the vast economic benefits of solar, which has become an apolitical energy source and job-creator.

Over time, the U.S. solar market has faced many challenges; one being a lag in corporate adoption of solar in recent years. Corporate interest in solar energy is booming, yet adoption lagged compared to the residential and utility segments. In 2015, the industry began greater outreach efforts with the broader real estate community to understand their needs, educate them about solar and develop resources. 

For example, SEIA’s annual Solar Goes Corporate events bring together commercial end-users, such as real estate owners, along with solar industry professionals to discuss opportunities, challenges and solutions to going solar. This event began in 2016 with the hope of building relationships and turning corporate interest in solar into adoption of solar.

One challenge brought up by both tenants and real estate owners is the split incentives issue – the party paying for a solar system is not the party paying for electricity. SEIA published a white paper that explains how Property Assessed Clean Energy (PACE), a financial tool where payments are made through tax assessments, can solve the split incentives issue. 

To reduce transaction costs, SEIA’s Commercial & Industrial (C&I) Committee recently developed a model Power Purchase Agreement for C&I systems. We also published the Solar Energy and Commercial Real Estate: Insights for your Investment Property. Using this document, commercial property owners can increase revenue, lower operating expenses, negotiate lease extensions and increase the net present value, or NPV, of their buildings. The C&I Committee is also working on addendums for PACE financing and energy storage. 

While SEIA’s Solar Means Business report does not explicitly track it, off-site procurement has been a major driver of corporate solar procurement in recent years. GTM Research counts 31 operating off-site corporate projects, plus 21 in development. 

These projects allow companies to tap into economies of scale by siting projects in areas where larger system sizes are possible. Major tech companies like Facebook, Amazon and Microsoft have all recently announced contracts for off-site purchases, indicating that this trend is expected to continue growing as both solar developers and corporates become more familiar with the transaction. 

The non-residential solar market in 2017, which includes C&I installations, grew by 28 percent from 2016, notching its fourth straight year of annual growth. Looking ahead, the C&I market is going to be facing some challenges. Commercial installations are expected to decline in 2018 as incentive changes in major states like Massachusetts and California take effect. Commercial adoption may also be slowed in the next few years due to impacts from new tariffs on imported solar modules. 

This does not mean that the C&I market is without significant opportunities. Commitments from businesses to use 100 percent renewable energy, increased use of electric vehicles and the rapidly-declining cost of energy storage and solar systems themselves are all expected to drive corporate interest in solar going forward. Past 2020, commercial solar capacity is expected to see higher growth rates as tariff declines lead to lower prices and the opening of new state markets.

SEIA will continue to work out any obstacles to the investment by individual businesses, while building relationships and educating businesses on the benefits of solar. Even with challenges, solar is an attractive and prime opportunity for American companies and real estate brokers to see a positive impact on their bottom line. 

Solar energy in much of the country is simply cheaper than electricity from other sources, and our goal is to make the decision to go solar an easy and profitable one for companies of all sizes looking to benefit from this clean, American energy revolution. 

Bio: Dan Whitten is the vice president of communications for the Solar Energy Industries Association (SEIA), the national trade association for the U.S. solar industry. Before SEIA, Dan spent more than 15 years as an energy and environmental journalist, including as a Bloomberg News energy reporter in Washington, where he covered legislative, regulatory and financial aspects of U.S. climate and energy policy debates.

Posted by: AT 09:21 am   |  Permalink   |  Email

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