CAPITAL REGION 2020 Economic Recovery Strategy
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2020 Economic Recovery Strategy: CAPITAL REGION
CAPITAL REGION REGIONAL ECONOMIC
DEVELOPMENT COUNCIL MEMBERS
Regional Co-Chairs
Ruth H. Mahoney
Market President & Regional Retail Leader, KeyBank -
Capital Region
Havidan Rodriguez, Ph.D Lauren Payne
President, University at Albany President, Spiral Design Studio
Appointed Members Roger A. Ramsammy, Ph.D.
President, Hudson Valley Community College
Melissa Auf der Maur
Sinclair Schuller
Co-Founder and Director, Basilica Hudson and River
Managing Partner, Nuvalence
House Project
Jeff Stark
James J. Barba
Business Development Specialist, IUPAT District
President Emeritus, Albany Medical Center
Council 9 NY
Robert Blackman
F. Michael Tucker
Vice President, Howard Hanna Real Estate
President, Tucker Strategies, Inc.
Dennis Brobston
Joseph Wildermuth
President, Saratoga Economic Development
Executive Vice President, Peckham Industries
Corporation
David Brown Ex-Officio Members
President & CEO, Capital District YMCA
Frank Thomas
David Buicko Chairman, Warren County Board of Supervisors
President & CEO, Galesi Group
Samuel Hall
Joseph P. Dragone, Ph.D. Chairman, Washington County Board of Supervisors
Senior Executive Officer, Capital Region BOCES
Anthony Jasenski
Todd Erling Chairman, Schenectady County Legislature
Executive Director, Hudson Valley Agribusiness
Development Corporation Patrick Linger
Chairman, Greene County Legislature
Bill Hart
Vice President, U.S. Business Operations, Patrick Madden
Irving Tissue Inc. Mayor, City of Troy
Michael J. Hickey Gary McCarthy
Executive Director, Stack Center for Innovation and Mayor, City of Schenectady
Entrepreneurship, Siena College Daniel McCoy
Linda MacFarlane County Executive, Albany County
Executive Director, Community Loan Fund of the Steven McLaughlin
Capital Region, Inc. County Executive, Rensselaer County
Andrew Meader Matt M. Murell
Film Commissioner, Adirondack Film Commission Chairman, Columbia County Board of Supervisors
Philip Morris Kathy Sheehan
Chief Executive Officer, Proctors Collaborative Mayor, City of Albany
Matthew Nelson Preston Allen
National Production Manager, Sabal Capital Partners Chairman, Saratoga County Board of Supervisors
Table of Contents
I. MESSAGE FROM THE CAPITAL REGION CO-CHAIRS....................................................... 5
II. OVERVIEW OF COVID-19 RELATED IMPACTS................................................................... 8
III. NEEDS AND SHORTFALLS OF REGIONAL ECONOMY...................................................16
IV. EVALUATION OF CHALLENGES AND NEEDS...................................................................25
Survey......................................................................................................................................................................26
Immediate and Intermediate Needs.................................................................................................................29
Top Immediate and Intermediate Business Needs..............................................................................29
Top Immediate and Intermediate Strategy Needs...............................................................................29
Long-Term Needs..................................................................................................................................................33
Top Long-Term Business Needs............................................................. .................................................33
Top Long-Term Strategy Needs................................................................................................................33
Specific Strategies to Address Challenges/Needs......................................................................................40
Additional Challenges..........................................................................................................................................43
Mitigating Local Governments’ and School Districts’ Fiscal Problems...........................................43
Regional Branding........................................................................................................................................44
Healthcare......................................................................................................................................................44
Lending............................................................................................................................................................47
V. ENGAGEMENT.......................................................................................................................48
Workgroups.............................................................................................................................................................49
Public Outreach and Engagement....................................................................................................................54
Notes................................................................................................................................................................................56
PART ONE
Executive Summary
4 2020 Economic Recovery Strategy
Message from the
Capital Region Co-Chairs
THE ECONOMIC TOLL The Capital Region’s economy has long been
resilient–reporting an annual unemployment
The impacts of the coronavirus (COVID-19) rate below the national average for more than
pandemic on the Capital Region’s economy were 25 years. However, we believe the Regional
as swift as they were severe. Within 10 days of Economic Development Council (REDC) process
the region reporting its first positive COVID-19 that Governor Andrew Cuomo ushered in nine
cases on March 9, there were more than 100 years ago has bolstered the Capital Region’s
positives throughout the region’s eight counties. economy in ways that have helped us surmount
Before long, there were more mass layoffs in 2020’s unprecedented challenges. Over the past
March than there had been in all 2017, 2018 and nine rounds of the REDC process, for example,
2019 combined. The COVID-19 economic crisis the Capital Region Economic Development
peaked in spring, with the region’s unemployment Council (CREDC) has enhanced our regional
insurance beneficiaries peaking in May at strengths in the Life Sciences and R&D to
67,300—three times the high reached during New Commercialization Clusters while guarding
York’s 2008-09 recession. against our weaknesses, such as a historical
overreliance on public sector jobs.
These statistics, while stark, do not fully capture
the toll COVID-19 has taken on the Capital
Region. In-class instruction was suspended;
essential workers continued doing their jobs amid CREDC ECONOMIC RECOVERY STRATEGY
the uncertainty about the nature of the virus;
families were either separated or forced together However, just as COVID-19 targets weaknesses
for prolonged periods; livelihoods were thrown in the body, it has found gaps in the CREDC’s
in limbo; worst of all, lives were lost. As of this five-year regional economic development plan,
writing, the region has seen 7,200 COVID-19 Capital 20.20. To counter this impact, on behalf
positive tests and 320 COVID-19-related deaths. of the CREDC, the regional office of Empire State
Development (ESD) and the Center for Economic
Growth (CEG) have been surveying business,
nonprofit and government leaders in the Capital
NY FORWARD Region to assess their immediate, intermediate
and long-term needs. Guided by this feedback, in
Since the Capital Region entered Phase II of
August 2020 ESD and CEG conducted a survey
NY Forward on June 3, there are clear signs
that garnered more than 300 responses.
of recovery. In terms of jobs, some segments
of the economy, such as construction, and These survey results have shaped the CREDC’s
transportation and warehousing, have bounced economic recovery strategy, recommendations
back, while others, including leisure and and New York State policy changes that we are
hospitality and healthcare, continue to struggle. advancing in this report. We identify the policy
At the onset of the pandemic, the Brookings changes that would both fill gaps in the regional
Institution identified the Albany-Schenectady- plan exposed by COVID-19 and address other
Troy metropolitan statistical area as one of the pressing business needs over the near- to long-
nation’s best-positioned regions to withstand a terms. Further, given the healthcare sector’s
COVID-19-related recession. That prediction has significant role in the regional economy and our
proved true, with the Capital Region reporting the COVID-19 response, the CREDC convened a new
lowest unemployment rate among the state’s 10 Healthcare Committee. The findings of this new
economic development regions for each month workgroup are summarized in the “Additional
through the crisis through July and second lowest Challenges” section of the report (page 44) and
in August.
Capital Region 5
a separate workgroup report is included in a
supplemental information submission.
We are grateful for the hundreds of people in
the business community who have shared their
insights and helped us assess the impacts and
needs of the regional economy. We also want
to thank Governor Cuomo for his unwavering
leadership throughout this crisis. The Capital
Region’s economy is only as resilient as its
people—and we have been deeply impressed
by the adaptability, compassion and creativity
expressed across our communities over the past
Face Shields - COG six months.
As we continue to navigate the new normal of the
post-COVID-19 era, we are confident that through
collaboration and communication, we can emerge
from this crisis stronger and more focused on our
strengths and priorities than ever.
We look forward to continuing to work closely
with all of our communities to build on past
progress and help shepherd the region to a safe,
healthy and prosperous future.
Albany Medical
RUTH H. MAHONEY
Market President & Regional Retail Leader,
KeyBank
HAVIDÁN RODRÍGUEZ, Ph.D
President, University at Albany
Capital Region Economic Development Council
6 2020 Economic Recovery Strategy
Capital Region
COVID-19 Statistics
The Worst
• Cumulative COVID-19 Positives (March 9-Aug. 31): 7,212
• Peak Daily Positive Test Rate: 17.1% (April)
• Peak Monthly Mass Layoffs/Closures: 44 (March)
• Peak Monthly Unemployed Workers: 69,700 (May)
• Peak Monthly Unemployment Insurance Beneficiaries: 67,300 (May)
• Peak Monthly Unemployment Rate: 12.9% (April)
• Peak Monthly Sales Tax Collections Decline: -32.9% (May)
• Peak Monthly Closed Home Sales Decline: -34.6% (May)
• Peak Monthly New Home Listings Decline: -59.4% (April)
• Peak Monthly Amtrak Empire South Ridership Decline: -96.7% (April)
• Peak Monthly Albany International Airport Passenger Decline: -96.3% (April)
• Peak Monthly CDTA Ridership Decline: -58.5% (April)
• Fewest Monthly Job Openings: 2,330 (May)
The Better
• Highest Positive Daily Test Rate (since Phase II): 2.1%
• Most Daily Positive Tests (since Phase II): 60
• Fewest Daily Positive Tests (since Phase II): 5
• Size of its labor force has remained stable, up 1.3% YTD
• June sales tax collections down only 0.3%
• Only 22 Capital Region businesses have resorted to filing for bankruptcy
• After the March surge, mass layoffs/closures, have significantly
tapered to 7 in April and 1 for each of the subsequent months
• Export and import activity at Albany ports (measured by shipping weight)
are up YTD
• Columbia County closed home sales are up YTD
• CDTA ridership declines narrowed to -12.9% in July
• Most Post-Lockdown Monthly Job Openings: 5,411 (August)
Capital Region 7
Albany Medical
PART TWO
Overview of COVID-19
8
Related Impacts
2020 Economic Recovery Strategy
Positive COVID-19 Tests in the Capital Region
18.0%
Measure Names
350 New Positives
Positive rate 16.0%
BEFORE
300 14.0%
12.0%
The Capital Region’s economy was near a high point 250
when the coronavirus pandemic was declared. Before 10.0%
New Positives
Positive rate
the shutdown of in-person, non-essential businesses in 200
8.0%
mid-March, the eight-county Capital Region had 530,100
150
employed people in February – the most for that month 6.0%
since February 2008. Before March, the region’s ranks
100 4.0%
of unemployment insurance beneficiaries had declined
on a year-over-year basis for fourteen consecutive 50
2.0%
months. Even the region’s rural counties were thriving.
Warren County, for example, saw its highest February
0.0%
0
employment since 2010 and fewest February unem- 3/7/2020 4/6/2020 5/6/2020 6/5/2020
Day of Test Date
7/5/2020 8/4/2020
ployed workers since 2001. Its February unemployment Figure 1
rate was the lowest for that month on record (going
back to 1990).1 See Figure 1
Capital Region Mass Layoff Sites Amid COVID-19
Jobs Affected Range
Multiple Site 25-100
Warren
Multiple Site 100
BEGINNING
N/A
Single Site 25-100
Single Site 100
This momentum was not enough to stop the economic Saratoga
disruption caused by COVID-19. The region’s first two
positive COVID-19 tests came on March 9, both in
Saratoga County. There were more than 100 COVID-19
Schenectady
daily positive tests by March 19, and New York’s
requirement for a 100 percent in-person workforce Rensselaer
reduction took effect two days later. By the end of the Albany
month, the region had a cumulative 575 positives.2 In
March, the region’s ranks of unemployment insurance
beneficiaries climbed to 20,800.3 That was a 119 Greene
percent increase from the previous month and the Columbia
highest it has been since March 2010, when there was
the same number of beneficiaries. Mass layoffs and Figure 2
closures were reported at 44 Capital Region companies
in March, affecting more than 5,300 jobs. Three
quarters of those companies implemented the layoffs or Capital Region Transportation
Capital Region TransportationVolumes
Volumes
closures between March 16 and March 23. More Worker 300K
300K
Adjustment and Retraining Notification (WARN) notices
Passengers
ALB Passengers
200K
200K
were issued for March alone than all of 2017, 2018 and
2019 combined.4 Capital Region bankruptcy filings 100K
100K
peaked in March at 201.5 See Figure 2 0K
0K
Riders
SouthRiders
100K
100K
EmpireSouth
The region’s transportation infrastructure, much like
AmtrakEmpire
50K
50K
its economy, slowed to a crawl. After seeing strong
Amtrak
year-over-year gains in January and February, ridership 0K
0K
1500K
on Amtrak’s Empire South line from Albany to New
1500K
Riders
York City fell 62 percent in March.6 Ridership likewise
Riders
1000K
1000K
CDTA
fell 22.7 percent for the Capital District Transportation
CDTA
500K
500K
Authority (CDTA).7 Enplanements and deplanements at 0K
0K
Albany International Airport in March fell over the year
2017 2018 2019 2020
2017 2018 2019 2020
Year
by 48.4 percent.8 See Figure 3
Year
Figure 3
Capital Region 9
PEAK “We are now able to benefit from
The pandemic peaked in the spring, with the region’s the warmer weather, with makeshift
highest positive test rate of 17.1 percent on April 1. The
number of COVID-19 daily positive tests peaked in the
outdoor dining rooms, farmers
region on April 24 at 361.9 See Figure 1 markets and parking lot concerts.
Job losses peaked in April. In the Albany-Schenectady-
The winter, however, will severely
Troy metropolitan statistical area (MSA), the leisure and limit even these stopgap gatherings,
hospitality sector took the hardest hit in that month,
sustaining a 26,300 loss (- 64.9 percent). In the Glens and the Creative Economy faces a
Falls MSA leisure and hospitality lost 3,800 jobs (-60.3 brutal reckoning in fourth quarter of
percent). Other sectors with the heaviest losses in the
Albany-Schenectady-Troy MSA were retail trade, which 2020 and first quarter of 2021.”
was down 10,300 jobs (-22.5 percent); and healthcare,
and social assistance which was down 7,700 jobs (-11.5 -Respondent to CREDC survey
percent). Those loses in the Glens Falls MSA were
-1,700 (-16 percent) and -1,300 (-16 percent).10
See Figure 4 Albany Metro Area Sectors with Biggest Bounce from Peak April Job Losses
Sector
Leisure & Hospitality
In April, the Capital Region’s ranks of unemployed Accommodation and Food Services
workers peaked at 69,300.11 The unemployment rate Retail Trade
peaked in April at 12.9 percent – the highest level on Health Care & Social Assistance
record (since 1990).12 The number of unemployment Other Services
insurance beneficiaries region wide rose to 55,700 Professional & Business Services
in April and peaked at 67,300 in May.13 The number Manufacturing
of Capital Region monthly job postings plunged from Admin. & Supp. & Waste MGT
5,625 in March to 3,388 in April until bottoming out at Nat. Res., Mining & Construction
2,330 in May.14 See Figure 5 Educational Services
Government
Wholesale Trade
The federal Paycheck Protection Program buoyed Food & Beverage tores
thousands of Capital Region businesses amid the Transportation & Warehousing
economic disruption. Between April 3 and June 30, Financial Activites
banks approved 13,001 PPP loans for businesses and -25K -20K -15K -10K -5K 0K -1.0 -0.5 0.0 0.5 1.0
nonprofits throughout the eight counties. Among those April 2020 Y/Y Jobs Loss Bounce: Fewer Y/Y Job Losses Since April
loans, 83.2 percent were below $150,000, 14.9 percent Figure 4
were between $150,000 and $1 million, and 1.8 percent
were over $1 million. Saratoga County had the most Capital Region Unemployment Situation
PPP loans under $150,000 (2,956) and Albany County
60K
had the most over $1,500 (866).15 See Figure 6
UI Beneficiaries
40K
20K
The region’s transportation infrastructure went from
a crawl to a near halt. Ridership declines on Amtrak’s
Unemployment Rate
Empire South line peaked in April at 96.7 percent,16 10.0%
as did Albany International Airport enplanements and
deplanements, which were down 96.3 percent.17 CDTA 5.0%
ridership fell 59.2 percent in April, and commercial
traffic at Capital Region Thruway exits that month 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Year
dropped 5 percent.18 See Figure 3 The plots of sum of UI Beneficiaries and sum of Unemployment Rate for Month Month.
Figure 5
10 2020 Economic Recovery StrategyCapital Region PPP Loans Approved
Warren
1,199 In the Albany-Schenectady-Troy MSA, the leisure
and hospitality, retail trade and healthcare and social
Washington
453
assistance sectors sustained the largest year-over-year
Saratoga
3,416 job losses in April, totaling 26,300, 10,300 and 7,700,
Schenectady
respectively. However, these sectors experienced
1,710
Rensselaer different recoveries. By July, retail trade had narrowed
1,606
Albany
2,723
its year-over-year decline from April’s peak by 58.3
percent, whereas leisure and hospitality had narrowed
Greene
Columbia its decline by only 36.1 percent. Meanwhile, healthcare
672
1,219
and social assistance’s year-over-year job losses
widened by 2.6 percent from April. See Figure 4
Total PPP Loans As the regional economy reopened, job postings in
453 3,416
Figure 6
the eight counties nearly doubled from 2,330 in May to
4,308 in July.23 One of the quickest signs of recovery
Regional sales tax collections declined by 28.9 percent was seen in sales tax collections, which were down by
in April, translating into a $17.3 million year-over-year only 0.3 percent in June at $78.7 million.24 While there
loss in tax revenue. Sales tax declines peaked in May was easing across other economic indicators, many
at 32.9 percent, a $19.9 million loss.19 Real estate remained near peak levels. The unemployment rate
activity continued through the lockdown but at a stood at 11.4 percent in July after creeping up for two
significantly slower pace. The decline in closed single- consecutive months. By August it fell to 8.7 percent,
family home sales peaked in the eight counties in May but that remained above the previous high of 8.5
at 34.6 percent. Exacerbating the home sales declines percent in February 2012. Unemployment insurance
were 59.4 percent and 36.4 percent fewer new listings beneficiaries in August totaled 48,300, down 28.3
in April and May, respectively.20 See Figure 7 percent fewer from May’s peak.25 June closed home
sales were down in the eight counties 28.1 percent,
but new listings increased that month by 6.7 percent.26
RECOVERY Passengers slowly returned to Amtrak’s Empire South
line and Albany International Airport, though their July
The Capital Region’s economy entered Phase II totals were down 76.9 percent27 and 78.5 percent
of reopening on June 3. By then the region had a from the previous year’s levels28 respectively. CDTA
cumulative 4,754 cases, but only 15 new positives on ridership made strong recovery gains, going from a
that day. The region entered Phase III on June 17 and 59.2 percent year-over-year decline in April to a 12.2
Phase IV on July 1. Since entering Phase II and through percent loss in July.29 See Figures 3, 5, 7
August, the fewest daily positives in the region was
five (June 29). During that period, the region has seen
no more than 60 daily positives (July 22) and had a Capital Region Closed Home Sales for 1st 6 Months of 2020
positive test rate no higher than 2.1 percent (July 29).21
See Figure 1
Warren
-31.3%
By July, the Albany-Schenectady-Troy MSA’s year- Washington
-11.9%
over-year nonfarm loss had narrowed to -46,800 (-10
percent) from the April peak of -72,300 (-15.3 percent). Saratoga
However, the recovery picture was slower in counties -22.7%
north and south of the Albany-Schenectady-Troy
Schenectady
MSA. In the Glens Falls MSA (Warren and Washington), -16.4%
Rensselaer
total nonfarm jobs were down 16.8 percent in July, Albany
-8.9%
compared to being down 18.7 percent in April. In the -19.9%
Twin Counties (Columbia and Greene), nonfarm jobs
losses peaked in May, declining by 12.3 percent over Greene
Columbia
-11.0%
the year, and by July that loss had only narrowed 7.7%
slightly to 11.4 percent.22
Figure 7
Capital Region 11During the early months of the recovery, several these stopgap gatherings, and the Creative Economy
positive trends stood out. faces a brutal reckoning in fourth quarter of 2020
and first quarter of 2021.” A local amusement park
• The size of the labor force has remained stable. In manager added, “Our industry is currently shut down
fact, the labor force averaged 550,113 workers and effectively means we have to go two years without
during the first eight months, up 1.3 percent from income…We need immediate tax relief or we will not be
a year earlier. in business in 2021.” A manufacturing executive added,
“We deal in industrial production & lab equipment, and
• So far this year, through August, only 22 the main challenge currently is the slowdown of that
Capital Region businesses have resorted to filing business with customers’ capital budgets pushed back
for bankruptcy, compared to the 105 that filed in to 2021 (at least). Access to capital to bridge that gap
the wake of the last recession in all of 2010.30 may be a need.”
• After the March surge in mass layoffs and Many Capital Region businesses expressed the need
closures, their pace have significantly tapered, for financial assistance to simply survive the coming
with seven reported in April and only one in each fall and winter months, with the hope of a brighter
of the following months. economic outlook in the second quarter of 2021. A
local restaurateur said, “Our restaurant will not come
• With the exception of July, when Rivers Casino close to covering costs this year, and 98 percent of
& Resort laid off more than 1,000 workers, there catering events have been postponed. We will be fine
have been fewer than 100 workers impacted if we can get to the other side of this, but we urgently
monthly by mass layoffs since June.31 need more funds to cover the fixed expenses for the
remainder of the year.”
• Export and import activity (measured by shipping
weight) at Albany-area water ports for the first “We need to use the winter to be able to build for
half were up 83.1 percent and down only 2.7 spring 2021,” said a tourism industry respondent.
percent, respectively.32 Challenges for this period will not be wholly different
from those businesses have faced since the pandemic
• By August, NYS DOL’s JobsExpress website had began, but the start of the fall school and cold/flu
5,411 job postings in the Capital Region. While season will add a new twist. Maintaining staffing
that was a 18.9 percent decline from a year earlier, levels – or even expanding them – are chief concerns,
it was more than double May’s low of 2,330.33 especially in growth sectors, such as healthcare,
information and manufacturing. One manufacturing
• Columbia County’s real estate market – popular plant leader said, “The quick turnaround for testing is
with New York City second home buyers – critical to our operation as we will keep employees out
registered a 7.7 percent increase in closed home of the plant if they are waiting for test results, even if
sales for the first half in 2020 – the only market in their symptoms have resolved. This will be critical in
the region to realize a sales gain year-to-date.34 the fall season especially as many more employees
may experience common cold type symptoms.” A local
hospital executive said. “With childcare and school
THE ROAD AHEAD restrictions, we will have less flexibility from our staff.”
A manufacturing executive commented, “We have over
The recovery has been uneven across sectors. Many 200 current job openings that we are struggling to fill.”
businesses, particularly those in the leisure and
hospitality sector, have heavily leaned on warmer Infrastructure and technology upgrades are also being
weather during the spring and summer months to eyed as critical for this period. One local restaurateur
accommodate small gatherings and outdoor dining. As said, “Transforming air flow in buildings will be key
one respondent to the CREDC’s Regional Economic for the restaurant industry. Even when a vaccine is
Recovery Strategies survey explained, “We are now available, in order for guests to return safely indoors,
able to benefit from the warmer weather, with makeshift we as an industry will need to have dining rooms with
outdoor dining rooms, farmers markets and parking lot better ventilation and air purifying systems. Those
concerts. The winter, however, will severely limit even systems will be expensive to retrofit, so grants and low-
interest loans will be key.”
12 2020 Economic Recovery StrategyBusinesses will need to expand their digital presence and other COVID-19-related expenses, colleges and
– and need access to greater broadband capabilities universities are facing severe financial and operational
– to reach clients and customers who are no longer hardships. Federal CARES funding has provided
accessible through traditional means, such as industry some measure of relief, but this critical sector—which
conferences, concerts and community events. Bridging adds billions to the region’s economy, and fuels our
the digital divide is especially urgent in under-served workforce—remains in need of support and investment.
communities that face hurdles in accessing growing
telemedicine services. An insurance brokerage owner CLUSTER STRENGTH
spoke of the need for a “constant flow of leads, usually
found at educational and sales events. I’m not sure The COVID-19 crisis has highlighted the strengths
what the next five years will look like for that. The safer of the Capital Region’s Life Sciences and R&D to
option would be investing in digital presence.” A local Commercialization Clusters. Below are examples of
farmer said, “We are in the high-risk, poor-outcome how these regional clusters contributed to the fight
category of COVID infection and cannot take the risk against COVID-19.35
to have our agritourism business open or participate in
farmers markets. We have pivoted to an online product 1. Regeneron Pharmaceuticals in East Greenbush
business and a wholesale supplier of products to other has been making viral transport media – a
businesses, but our revenues are down drastically.” key component of COVID-19 test kits, and the
company’s arthritis drug, Kevzara, is in clinical trials
Businesses’ immediate, intermediate and long-term to treat COVID-19. Regeneron also received a $450
needs are explored in further detail in Section IV of million federal contract to manufacture and supply
this report. REGN-COV2, an investigational double antibody
cocktail that is in clinical trials for the treatment and
Additionally, COVID-19 has posed extraordinary prevention of COVID-19.
challenges for the Capital Region’s institutions of higher 2. Rensselaer Polytechnic Institute’s AiMOS
education. The region’s 24 colleges and universities supercomputer is helping researchers apply
are major economic drivers, annually awarding more artificial intelligence to the fight against COVID-19.
than 22,000 degrees and spending more than $558 a. Researchers at RPI’s Center for Lighting
million on R&D while employing more than 4,000 Enabled Systems & Applications (LESA)
researchers. Between room-and-board refunds issued developed a machine that uses ultraviolet
to students last spring, decreased enrollments, and light to sterilize protective facemasks.
costs associated with testing, facilities upgrades
AngioDynamics
Capital Region 133. Albany Medical Center was one of the first 10. Hollingsworth & Vose in Easton is manufacturing
hospitals in the country to receive FDA approval air filtration media that is critical to respiratory
for an experimental convalescent blood plasma protection equipment, such as disposable and
therapy for the treatment of critically ill surgical facemasks, and medical respiratory
COVID-19 patients. equipment, such as ventilators.
4. The New York State Department of Health’s 11. Specialty Silicone Products in Ballston Spa is
Wadsworth Center has developed a non-invasive manufacturing electromagnetic interference and
saliva test for the coronavirus as well as test for radio frequency interference (EMI/RFI) shielding
COVID-19 antibodies. elastomers that will be used for EMI gaskets
5. Researchers at SUNY Polytechnic Institute are in ventilators.
working to create an advanced COVID-19 test with 12. FluoroTech, a Canadian biotech company,
others at the Wadsworth Center in Albany and has partnered with Albany Medical Center’s
Ciencia, a medical device firm in Biomedical Acceleration and Commercialization
Hartford, Connecticut. Center (BACC) to form FluoroTest, which will
4. Halovation, a start-up founded by former SUNY develop a fluorescence spectroscopy COVID-19
Poly professor Pradeep Haldar, has developed testing device that delivers results in less than
an Adaptive Photonic Controller that helps HVAC 15 minutes.
systems better filter air for COVID-19. 13. Zephyrx, also at the BACC, has developed an
5. RGI-Informatics in Cornwallville has received FDA-approved device for remote COVID-19 patient
COVID-19 emergency federal funding for pulmonary testing that can also be video game-
software licenses and maintenance for a based to increase patient adherence.
healthcare analytics solution for several Veterans 14. AMRI has a strategic manufacturing agreement for
Administration medical centers. messenger RNA (mRNA) production with Lexington,
6. Hudson Valley Lyomac in Hudson is making Massachusetts-based Translate Bio, which has
freeze dryers that can play a key role to play in partnered with Sanofi to develop a novel mRNA
developing uniform and reliable pharmaceutical vaccine candidate against COVID-19.
compounds for the treatment or prevention 15. Vital Vio in East Greenbush makes antimicrobial
of COVID-19. LED lights that combat the growth of bacteria,
7. Taconic Biosciences in Germantown is making the fungi, yeast, mold and mildew.
models used for COVID testing. 16. Kitware in Clifton Park enhanced its Pulse open
8. American Bio Medica in Kinderhook is source software platform to aid critical care
manufacturing a COVID-19 Rapid Test for physicians in treating multiple COVID-19 patients
antibody detection. with a shared ventilator.
9. Precision Valve and Automation, a leading fluid 17. University at Albany biology, chemistry and
dispensing solutions manufacturer in Cohoes, atmospheric and environmental scientists have
pivoted to become the first non-medical device received at total $17,500 to study exploring the
firm to receive a fast-tracked FDA approval for an impact of weather on COVID-19 transmission, visual
emergency ventilator called PREVENT. rapid tests of COVID-19 biomarkers for on-site
diagnostics, and novel technology for mapping
the spatial structure of the COVID-19 salivary
microbiome.
18. St. Peter’s Hospital, Ellis Hospital and Glens
Falls Hospital were listed as available locations
for clinical trials for Gilead’s Remdesivir, which Dr.
Anthony Fauci has said promises to set a “new
standard” for COVID-19 treatment. Overall, 11
UAlbany researchers received COVID-19 seed
funding totaling $67,348 for research in the life
sciences and other fields.
PVA
14 2020 Economic Recovery StrategyAlbany Medical Capital Region 15
PART THREE
Needs & Shortfalls of
the Regional Economy
16 2020 Economic Recovery StrategyPort of Albany Capital Region 17
In 2015, as part of the Upstate Revitalization Initiative this robust job growth – driven by Regeneron in East
(URI), the CREDC developed Capital 20.20, a five-year Greenbush – was coupled with the R&D capabilities at
economic development plan for the Capital Region. local universities and the New York State Department
The plan revolved around five regional strategies, of Health Wadsworth Center, the region was positioned
to which the CREDC added other strategies during to become a significant player in the national fight
subsequent Regional Economic Development Council against COVID-19. Regeneron’s second East Greenbush
(REDC) rounds. Capital 20.20 has guided hundreds campus and the Albany College of Pharmacy and
of projects funded through the REDC process, but Health Sciences’ Center for Biopharmaceutical
COVID-19 has exposed gaps in the regional strategies Education and Training at the Albany Nanotech Center
that must be filled if the Council is to fully realize its are two more examples of projects in development that
mission of driving “strong, sustainable and will further strengthen that position.
inclusive growth.”
Regional
Also pushing the region to the forefront, especially in
the life sciences, is Warren County. Earlier this year
the U.S. Bureau of Labor Statistics revealed for the first
time the average annual employment of the county’s
Strategies
medical equipment and supplies manufacturing
industry. In 2019, the industry employed 1,509 jobs,
giving it a location quotient of 18.2. That means
the county had the nation’s highest concentration
of medical equipment and supplies manufacturing
jobs, owing to the presence of companies such as
AngioDynamics, Becton Dickinson (BD), Bard, Delcath
Systems and Medline Industries.37 See Figure 9.
NEXT-TECH
SHORTFALL: This strategy focused on driving the
growth of emerging technologies in the Capital Region.
However, since Capital 20.20 was developed in 2015, GATEWAY
the region’s technology landscape has substantially
changed and the regional plan needs to be updated
SHORTFALL 1: This strategy focused on driving imports
to reflect that transformation and capitalize on the
and exports to and from the Capital Region – especially
opportunities it creates.
through its ports – as well as establishing the area
as a logistics and distribution hub. However, Capital
In the post-COVID-19 environment, the Capital Region’s 20.20 preceded the reshoring movement spurred by
tech sector is uniquely positioned to become a major domestic shortages and national security liabilities that
growth engine for the manufacturing and/or R&D for COVID-19 exposed.
pharmaceuticals and medical equipment and supplies.
Gaps in the supply chain, talent pipeline and R&D
infrastructure could impede the cluster’s ability to reach NEED: Reshoring presents major opportunities for
its potential. the region’s advanced and general manufacturers as
well as its logistics and distribution cluster. However,
NEED: In 2018, the Albany-Schenectady-Troy metro
Capital 20.20 currently does not address the capital
area had 2956 pharmaceutical and medicine
improvements needed in the manufacturing and
manufacturing jobs – the 13th most among MSAs
transportation and warehousing sectors to ensure
nationwide. In contrast, five years earlier it had
the region is primed to reshore the production and
87 percent fewer jobs and ranked 20th for total
distribution of key goods.
employment in this sector.36 See Figure 8. When
18 2020 Economic Recovery StrategyTop 20 Metros with Large Pharmaceutical and Medicine Manufaturing Industries (1,000 Jobs, 2018)
Albany
Jobs: 2,956
Rank: 13
Minneapolis
Jobs: 3,656 Indianapolis:
Rank: 11 Jobs: 12,917
NYC
Rank: 4
Chicago Jobs: 32,051
Vallejo Jobs: 17,354 Rank: 1
Jobs:3,368 Rank: 2 Philadelphia
Rank: 12 Jobs: 14,376
St. Louis Rank: 3
Jobs: 3,990 Baltimore
Rank: 10 Jobs: 2485
Cincinnati
Jobs: 2,118 Rank: 16
Dallas
Jobs: 4,447 Rank: 18
Los Angeles
Jobs: 11,446 Rank: 9 Washington
Rank: 5 Jobs: 5,817
Charlotte Durham
Jobs: 2,455 Rank: 8
Jobs: 6,098
San Diego Rank: 17 Rank: 7
Austin Houston
Jobs:7,342
Jobs: 2,105 Jobs: 2,778
Rank: 6
Rank: 19 Rank: 14
Miami
Jobs: 2,662
Rank: 15
2018
2,105 32,051
Figure 8
U.S. Counties with Highest Concentrations (Location Quotients) of 2019
Medical Equipment and Supplies Manufacturing Jobs
Hennepin, MN Warren, NY
Jobs: 10,945
Jobs: 1,513
LQ: 5.33
Yamhill, OR LQ Rank: 9 LQ: 18.20
Jobs: 1,458 LQ Rank: 1
LQ: 7.05
LQ Rank: 2 Lake, IL
Jobs:4,784
Salt Lake, UT LQ: 6.43
Jobs: 9,399 LQ Rank:4 Chemung, NY
LQ: 5.95 Jobs: 509
LQ Rank: 6
LQ: 5.32
Jefferson, CO LQ Rank: 10
Jobs: 2,930 Shelby, TN Pickaway, OH
LQ: 5.50 Jobs: 6,779 Jobs: 215
LQ Rank: 7 LQ: 6.15 LQ: 705
LQ Rank: 5 LQ Rank: 3
Orange, CA
Jobs: 19,657
LQ: 5.44
LQ Rank: 8
Source: US BLS
Figure 9
Capital Region 19Amid rising concerns of an overreliance on Chinese-
made computer chips, GLOBALFOUNDRIES in Malta OFFSHORE WIND OPPORTUNITIES
has emerged as a model for domestic semiconductor
in New York’s Capital Region
production. Legislation introduced in Congress has
sought to allocate federal funds for the expansion
Albany to Boston, MA: 3 hrs
of Fab8 at the Luther Forest Technology Campus Albany to New York, NY:concrete reinforcing steel, and precast and other
concrete product services. New York’s second
solicitation for 2,500 megawatts, released last July and
with awards expected in December, adds momentum
to this effort to make the Capital Region an OSW
component-manufacturing hub and gateway. See
Figure 10. Albany County Executive Daniel McCoy, in
LIFT-OFF
a Sept. 21 letter to the Council, described the state’s
OSW initiative as “one of the most important economic
development initiatives before our region…There is no
other initiative that I am aware of that has the potential SHORTFALL 1: This strategy focused on driving
to transform and rebuild our economy in the aftermath synergies between tech-driven urban centers
of the COVID-19 as does offshore wind.” and tourism-driven outlying areas. An inadvertent
consequence of this strategy has been an overreliance
in the region’s rural counties on sectors that are at
high risk for COVID-19, particularly those in leisure
and hospitality. As detailed in Section II, these outlying
areas – Glens Falls MSA and Twin Counties – are
heavily reliant on leisure and hospitality and are
experiencing far slower recoveries when compared to
TALENT more diversified metro areas.
SHORTFALL: This strategy focused on ensuring Capital
NEED: In March, the Brookings Institution estimated
Region businesses have access to a stable and robust
54,772 jobs in the Albany-Schenectady-Troy MSA are in
talent pipeline, but Capital 20.20 did not anticipate
high-risk industries, such as transportation and leisure
the rapid and seismic upheaval that disproportionately
and hospitality, or 12.2 percent of all jobs. Among the
affected certain sectors. Consequently, the plan did
100 largest metros, the Albany-Schenectady-Troy MSA
not call for rapid-training programs that allow affected
is the nation’s fourth least-exposed metro to a COVID-
workers to shift from high-risk sectors to those that are
19-related recession – owing largely to its robust
more stable and with growth potential.
tech-oriented university-based economy. However, the
Glens Falls MSA has 10,120 jobs in high-risk industries.
NEED: Even before the onset of the pandemic, Capital That is 18.9 percent of all jobs in the metro – the
Region employers, especially in healthcare, were highest concentration of at-risk jobs among metros
struggling to find enough talent. In 2018, the Albany- statewide.41 The exposure rate of Columbia and
Schenectady-Troy MSA had so many job openings that Greene counties (the “Twin Counties”) was almost as
Sparefoot named it the seventh-best city for registered high at 16.6 percent. Together, the eight-county Capital
nurses40 and ZipRecruiter named it the sixth-best city Region has 76,576 workers in the five sectors that
for healthcare jobs. Even amid the COVID-19 recovery, Brookings identified as being most at risk of a COVID
Capital Region manufacturers and construction firms recession. That is 14.1 percent of all jobs in the region.42
reported having hundreds of job openings and trouble
finding enough skilled workers to fill those positions.
Further, those high-risk sectors face a long recovery.
The travel industry is not expected to fully recover from
Further, given that parts of the Capital Region,
COVID-19 until 2024, and it is expected to drive an $81
especially Warren and Greene counties and urban
million loss in federal, state and local taxes through
downtowns are heavily reliant on the creative economy
the end of 2020 alone. Nearly two thirds of New
and leisure and hospitality, wide segments of the
York restaurants surveyed fear they will face closure
population – and even whole communities – are facing
over the next nine months if they do not receive a
an uncertain future and elevated unemployment while
comprehensive aid package.43 Staffing is also a major
those sectors struggle to reopen safely. Workers in
challenge, especially for the hospitality sector, due to
these high-risk sectors tend to have skills that are not
the lack of J-1 visa workers and international students.
easily transferrable.
Capital Region 21In the Glens Falls MSA, businesses are looking for NEED: Many Capital Region placemaking destinations
a long-term solution to this problem and creating a had to shut down during the pandemic and are in need
recruitment and training program to develop a pipeline of alternative programming to mitigate the impacts of
of potential workers for the hospitality industry. Part of lost revenues while they remain closed or operating
this strategy is to recruit hospitality workers from other at reduced capacity. They will need assistance with
areas to live and work in the region. upgrades, such as air filtration and ultraviolet light
sanitation, which could boost consumer attendance or
traffic in a pre-vaccine era.
SHORTFALL 2: This strategy also focused on
supporting Capital Region startups. While COVID-
19 helped local entrepreneurs unleash their SHORTFALL 2: This strategy also focused on
innovativeness, whether by making personal protective creating jobs and providing local critical services in
equipment (PPE) or ventilators, there remains no major impoverished areas in Albany, Troy and Schenectady.
regional funding mechanism to help startups quickly However, the plan did not address how some
bring products to market. neighborhoods, due to their concentrations of
individuals with high risk factors, could be uniquely
susceptible to pandemics or other disasters and are in
need of targeted support.
NEED: Startups in the Capital Region have limited
access to venture capital. Even access to federal seed
funding fluctuates. In fiscal 2019, small businesses
in the region received $11.3 million under the Small NEED: New experimental data from the U.S. Census
Business Innovation Research (SBIR) and Small Bureau shows a wide disparity in how well Capital
Business Technology Transfer (STTR) programs – down Region communities may be able to weather disasters
34 percent from the previous year.44 Further, there is such as pandemics. Saratoga County ranked high
no clear funding mechanism to help established or in New York for community resilience, as measured
startup companies bring a product to market. While by the presence of 11 risk factors45 that gauge the
the healthcare demands spurred by COVID-19 inspired “capacity of individuals and households within a
several local companies to develop medical equipment community to absorb, endure, and recover from the
and supplies to meet that need, many struggled impacts of a disaster.” Saratoga County ranked third in
to meet the U.S. Food and Drug Administration the state for the smallest concentration of individuals
requirements needed to bring their goods to market. with one to two risk factors (1-2 RF: 42 percent), and
it ranked second for the smallest concentration of
individuals with three or more risk factors (3+RF: 18.2
percent). In contrast, Schenectady County had the
52nd greatest 1-2RF concentration (52.4 percent) and
the 53rd greatest 3+RF concentration (27.6 percent).
Drilling down to the census tract level, Albany’s Pine
Hills neighborhood (Census Tract 16) had the region’s
greatest 1-2RF concentration (81.2 percent), and West
Glens Falls (Census Tract 702) had the region’s greatest
METRO
3+RF concentration (47.7). These are communities
where, statistically, need may be great to recover
from COVID-19.
SHORTFALL 1: This strategy focused on revitalizing
downtowns with “catalyst projects” that can attract
large crowds and make urban centers more attractive
SHORTFALL 3: This strategy also called for an
live/work/play destinations for talent from around
expansion of the region’s public transit network with
the globe. However, the plan did not anticipate the
the objective of getting more people into urban centers
restrictions that COVID-19 would impose on such
and taking more workers to their jobs. This strategy
placemaking projects or the measures needed to
did not anticipate the mass work-from-home response
provide for safe gatherings at them.
to COVID-19 and its impacts on both downtowns
22 2020 Economic Recovery Strategyand worker access to the jobs in them that became
remote due to COVID-19. The plan also did not
foresee the shortage of workers that COVID-19 created
at urban and rural service establishments and how
nontraditional public transit means could connect them
with less mobile workers in poor communities.
SUPPORTING THE CREATIVE ECONOMY
SHORTFALL 1: This strategy sought to support the
region’s businesses, non-profit organizations and
self-employed individuals who are engaged in the
origination, production and distribution of goods and
services that are rooted in artistic and creative content.
However, the primary means of delivering this support
– through the development or renovation of venues
and meeting spaces – has limited impact in the COVID-
19 environment.
NEED: The Brookings Institution estimates the nation’s
creative industries will lose a third of their jobs, or 2.7 Hudson Hall
million.46 In 2018, the region’s creative economy had
37,437 workers, including wage and salary employees
plus freelancers.47 Whatever the impacts on those auditoriums between performances (48 percent) and
regional creative jobs, they will likely outlast the mandatory empty seats between ticket purchasers
impacts on many other segments of the economy. (45 percent).48
While local farmers markets have reopened and
reconnected agricultural and artisan food creative
workers with customers, softened demand from SHORTFALL 2: While this strategy sought to support
schools and other large buyers threatens their viability. the region’s agricultural sector, it did not foresee the
unique challenges that COVID-19 would impose on
the region’s farmers as well as emerging opportunities
Performing arts venues do not even have a reopening presented by new crops such as hemp.
date yet, and there will be significantly softer demand
when they do resume operations. A national survey
in which the Proctors Collaborative participated found NEED: Labor is an overarching concern because the
43 percent of respondents said they would spend volume of migrant labor is down substantially. Further,
somewhat to much less on entertainment when migrant workers who test positive would need to
entertainment options become available again. Twenty- quarantine for two weeks and farms would have to
two percent of respondents said they would not return house them without work during that time. Dairy and
to attending theatrical performances until there was other farmers are looking to go robotic as a result.
an effective vaccine. But the most important measures Others are planning to replace crops with ones that can
that would make respondents feel comfortable enough be processed mechanically rather than manually. This
about returning to live theatrical performances were would greatly reduce the local availability of fresh food
mandatory mask requirements for audience members crops in favor of corn, wheat and other types of crops.
(56 percent) and staff (50 percent), upgraded air Consequently, there would be less employment and
filtration systems (52 percent), the full sanitation of less money circulating in the community.
Capital Region 23Albany Medical 24 2020 Economic Recovery Strategy
PART FOUR
Evaluation of
Challenges and Needs
Capital Region 25Survey
At the peak of the COVID-19 crisis last spring, ESD, in identifying other needs. Select comments from the
collaboration with CEG and other partners, informally survey are included in the “The Road Ahead” in Part
surveyed CREDC members and other local business II (page 12). The survey closed two weeks later on
leaders49 to assess the toll the pandemic had been August 25, garnering responses from more than
taking on the regional economy. Their feedback 300 people.50
later guided the questions that CEG and ESD, with
assistance from the Capital District Regional Planning
Commission, prepared for a survey on the immediate Albany County accounted for the greatest share of
(next six months), intermediate (six months to one year) survey respondents (24.4 percent), but high volumes
and long-term (next five years) economic needs of the of responses also came from Saratoga (18.8 percent),
Capital Region. Columbia (18.8 percent) and Greene (16.4 percent)
counties. See Figure 11. In terms of employer size,
the greatest share of respondents had fewer than
The survey launched August 11, being widely distributed five employees (33.4 percent), followed by 11 to 50
by ESD and CEG, as well as other partners such as employees (26.5 percent) and five to 10 employees
Columbia Economic Development Corporation and the (18.8 percent). See Figure 12. Sectors with the most
Saratoga County Prosperity Partnership. The survey respondents included government (12.2 percent);
asked respondents to weigh on a scale of one (low) arts, entertainment and recreation (11.5 percent);
to 10 (high) their immediate, intermediate and long- professional, scientific and technical services (8.7
term business and strategy needs of 33 criteria. For percent); manufacturing (8.4 percent); construction
each question, respondents were given the option of (6.6 percent); accommodation and food services (7.7
percent); and retail trade (5.9 percent). See Figure 13.
CREDC Regional Economic Recovery Strategies Survey
Respondents by County
Warren
10
Washington
14
Saratoga
54
Schenectady
18
Rensselaer
Albany 20
70
Greene
Columbia
47
54
# Respondents
10 70
Figure 11
26 2020 Economic Recovery StrategyCREDC Regional Economic Recovery Strategies Survey
Respondents by Employer Size
CREDC Regional Economic Recovery Strategies Survey
Respondents by Employer Size
100+ Employees
44CREDC Regional Economic Recovery Strategies Survey
Respondents by Industry
CDREC Regional Economic Recovery Strategies Survey
Respondents by Industry
Transportation and Warehousing Accommodation and Food Services
6 22
Real Estate and Rental and Leasing Agriculture
16 7
Professional, Scientific, and Technical Services Arts, Entertainment, and Recreation
25 33
Other Construction
51 19
Manufacturing Educational Services
24 9
Finance and Insurance
11
Health Care and Social Assistance Government
8 35
Figure 13
28 2020 Economic Recovery StrategyImmediate & Intermediate
Needs
IMMEDIATE AND INTERMEDIATE their greatest need as a stable and reliable supply
BUSINESS NEEDS chain. Two more – agriculture and educational services
– reported their top immediate need as more robust
Among all respondents, the greatest immediate work-from-home capabilities (e.g. broadband access,
business need reported was financial assistance. Other technology, and hardware/software). For manufacturing,
high immediate needs included: 1. a more robust and the top need was infrastructure for rapid testing and
interactive online presence; 2. assistance accessing contact tracing of employees, and for finance and
new markets (e.g. marketing, PR, advertising, social insurance it was cybersecurity and secure portals.
media, sales, e-commerce); 3. infrastructure for rapid See Table 4.
testing and contact tracing of employees; and 4. stable
and reliable supply chain. See Table 1.
IMMEDIATE AND INTERMEDIATE
STRATEGY NEEDS
However, the top needs varied by county, employer
size and sector. Regionwide, two needs topped the lists Among all respondents, the top immediate and
for counties. On average, businesses in six counties, intermediate strategy needs, on average, were 1. use
with one tie, identified financial assistance as their of Industrial Development Agency (IDA) funds for
small business loans and grants; 2. debt forgiveness;
greatest need, whereas three others identified that
3. loan deferment. See Table 1. By county, the most
need as more robust work-from-home capabilities (e.g.
in-demand needs were the use of IDA funds, ranking
broadband access, technology, hardware/software). highest among four counties, and debt forgiveness,
See Table 2. Among employers with fewer than ranking highest among three. See Table 2.
five employees, the greatest need was assistance
accessing new markets (e.g. marketing, PR, advertising,
social media, sales, e-commerce). For employers
with five to 50 employees, that need was for financial By business size, employers with fewer than five
assistance and for those with 51 or more employees employees favored the use of IDA funds while those
it was for infrastructure for rapid testing and contact with five to 100 prioritized debt forgiveness. Employers
tracing of employees. See Table 3. with over 100 employees on average reported their
greatest immediate strategy need was Unemployment
insurance (UI) benefits. See Table 3. The need that
ranked highest among the greatest number of sectors
There was greater variation of top needs among was debt forgiveness, with seven prioritizing that,
regional sectors, but there was consensus among including the hard-hit accommodations and food
several of the hardest hit ones, particularly leisure services; arts, entertainment and recreation; and
and hospitality and healthcare and social assistance. retail trade. Another seven sectors, including hard-hit
Those sectors, and two others, identified their greatest healthcare and social assistance, most favored the
immediate need as financial assistance. Four sectors use of IDA funds. The top immediate strategy need for
identified their greatest need as a more robust and construction and educational services was increasing
interactive online presence. Two sectors, including bank efficiency to provide quicker access to capital.
the hard-hit retail trade and construction, identified See Table 4.
Capital Region 29You can also read
