Category Archives: Business

DE Governor Announces Wilmington Port Expansion

Governor John Carney, the Diamond State Port Corporation and GT USA Wilmington, LLC have finalized a major agreement to significantly expand the Port of Wilmington, last Tuesday. Previously this year, Governor Carney announced an agreement with Gulftainer to lease the Port of Wilmington from the State of Delaware and construct a new container shipping facility on the Delaware River. “This historic agreement will result in significant new investment in the Port of Wilmington, which has long been one of Delaware’s most important industrial job centers,” said Governor Carney. [see video] According to the agreement, UAE-based Gulftainer’s subsidiary GT USA Wilmington, LLC will make annual royalty payments to the State of Delaware, totaling $13 million over the next decade. The company plans to invest up to $600 million in the Port over the next decade, including approximately Read more

Legislation to Aid Investment in Delaware Enterpreneurs

The Press Office of Delaware Governor,Jack Markell has issued the following statement: Legislation Introduced to Support Investment in Delaware Entrepreneurs Follows through on Governor’s State of the State proposal to improve access to capital Wilmington, DE – Building on efforts like regulatory reform and broadband improvements that have made Delaware a more welcoming place to start and expand a business, Governor Markell joined members of the General Assembly today to announce legislation that will give startups and small businesses better opportunities to access capital. The bipartisan bill, which will be filed when the legislature returns to session next week and is sponsored by Representative Bryon Short (D-Highland Woods) and Senator Brian Bushweller (D-Dover), would permit the use of online crowdfunding platforms, allowing Delaware residents to be investors in Delaware Read more

Governor and KC State Legislators Address CDCC

By: Wolf von Baumgart, Staff Writer Delaware Governor, Jack Markell and members of the Kent County state legislative delegation highlighted the annual Central Delaware Chamber of Commerce Legislative Luncheon, held at Dover Downs on Friday. Governor Markell said that when he took office in 2009, Delaware (with a $ 3- Billion annual budget) was rated in the worst ten states for unemployment. In 2014 it was rated in the ten best and in 2015 the First State was rated fourth best with a 4.7% unemployment rate. He said that Delaware is moving towards a more nurturing business environment with the recent passage of the Innovation Tax Credit Act and that it is a major state economic priority to keep agricultural business in Delaware. [ See: "DuPont Tax Incentives Passed" by David Anderson, 3/18/2016. ] The Governor raised the possibility that Delaware is in Read more

Delaware Governor Comments on DuPont / Dow Merger

The Press Offce of Delaware Governor, Jack Markell has released the following statement regarding the announcement of a merger between DuPont and Dow:   “Delaware has been home to DuPont's global headquarters for more than 200 years and to an important Dow Electronics Materials business for decades. These are world class companies whose merger has the potential to spawn three well-positioned competitors in the agriculture, material sciences and specialty products sectors. “I have spoken to DuPont CEO Ed Breen about plans for DowDuPont. We have talked about the great business environment in Delaware and the many talented scientists, engineers and business leaders who call Delaware home and who can be at the center of growth for the three new businesses. We will continue to advocate that Delaware's many advantages can be of major benefit to the new companies.   “None of this, Read more

The Way To Get Things Done

  Last night on his now weekly spot with Bill Colley on WGMD, Sussex County GOP Chairman Glen Urquhart spoke about many things, including the need to create an environment in Delaware that is conducive to bringing businesses to Delaware.    He spoke of the over regulation by state government that has led to the decline of many historically Delaware enterprises.   Near the end of his spot he sent a forceful message when he stated that if we want to grow the state economy, that Delaware and Gov. Markell need to stop, "kicking employers in the groin".   We could also say that if we wish to arrest the decline of the state's economy, we will need to empower the people with the proper training,to give them the advantage of being able to defend themselves in the highly competitive world. We will also need to give the authority to decide for themselves, to the business owners and the Read more

Sal Gives Joey a Haircut

Or, alternate title: Why Small Business Owners in Delaware Get Frustrated SCENE 1; ACT 1: Cut to interior of Sal’s Barber Shop. Sal is giving Joey, a customer of twenty-five years, a hair cut. Dominic, Sal’s business partner of thirty years is sweeping hair from the floor of his station. SAL: Hey, Dominic, grab me a comb from your station. I set my jar of combs somewhere else. Joey here wants to look good. DOMINIC: Sorry, Sal. You know I can’t do that. As of 2002, Delaware regulations require you keep eight combs at your own station at all times. Eight combs; not seven. Eight combs. If I give you a comb, I’ll only have seven combs, not eight, and the inspector might walk in and fine me for breaking regulations. Yup. Eight combs, not seven... SAL: (Interrupting) Are you nuts? OK, give me one of your brushes, then. DOMINIC: Sorry Sal. I can’t do that, either. Delaware Read more

Kent County Town Hall, Part 1 of 2

August 19, 2009   Governor Markell and the General Assembly members for the Dover area held an under advertized town hall meeting for the local residents at the Kent County Administrative Offices in Dover.   The 2 hour meeting began with the Governor laying out some of his vision and answering questions from the public.  It ended with the Assemblymen doing the same.  I will split this into two parts following the format of the meeting, one post for the Governor and the other for the Assemblymen.   Governor Markell opened his remarks with a brief recap of his 7 months in office and the condition of the state including the 35,000 unemployed and our hard hit auto and financial services sectors.  He also talked about several of the big and small local businesses that he has visited.  The vision for improving the state that he shared focuses on three keys.  They are:   Create Read more

Back When…

…I worked for Judge Bill Lee’s gubernatorial campaign last summer, I was fortunate enough to get a chance to check out this company. I spoke about the company frequently when I was at because they invented a vending machine that makes hot, fresh, french fries, and they wanted to open up a manufacturing facility in Western Sussex. It was clear they had the support of the local politicians like Rep. Biff Lee, who gave us the “heads-up” about them, but they couldn’t get to square one with the Delaware Economic Development Office. Thankfully, it looks like that’s changed.

America doesn’t want You, and neither does Delaware

That’s right America’s government doesn’t want you, it just wants your money.  That’s okay though because there is still Canada.   Delaware received a brief dishonorable mention as part of a larger, national problem on the Rush Limbaugh show today from guest host Mark Belling.  He noted that Tim Horton’s Coffee, a Delaware registered corporation will be leaving the state to register up in Canada due to favorable tax conditions.  While our nation and state are scheduling tax and fee hikes, Canada is working on lowering its corporate taxes.  Canada’s already lower business taxes will soon be less than half of what business taxes are in the US.    A government that is raising its tax rates on you or your corporation is basically saying that it is interested, not in your personal skills and interests, but in your money.  It could care less what you are capable of doing Read more

HB 230

The General Assembly has been sliding toward a disturbing trend this year. It seems to have forgotten the high priority it has set on a pro-business environment which has served us well. The latest target is the construction industry which lost as many jobs in May as are currently left at Boxwood. HB 230 is modeled on the Maryland law which cracked down on independent contractor abuse in the state of Maryland. We all know that the industry has some players who pay under the table. The problem is not in anyway limited to construction, but it is believed to be the majority of the problem. There is also a very legitimate use for people that you don't hire. They are subcontractors and a vital part of industry in construction, technology, and sales. The fastest growing segment of employment outside of government happens to be independent subcontractors. The question is how do you ensure Read more

Walgreens Drops Medicaid

Walgreens Pharmacies in Delaware won't be taking Medicaid after July 6 unless some agreement with the state. New rules which took effect on April 1st reduce the amount of money the state will pay for brand name prescriptions. According to this WBOC story, Walgreens states that "Delaware now has one of the lowest payment rates in the country for brand name and generic medications." Further WBOC reports: Kermit Crawford, Walgreens senior vice president of pharmacy, said, "We have made the decision, after much thought and care, to end our involvement with the state Medicaid program. Quite simply, we can't continue to participate in a program that, in some cases, pays us less than our cost to fill these prescriptions. By making it uneconomical for pharmacies to continue filling Medicaid prescriptions, the state's new payments to pharmacies hurt the very patients that Medicaid is meant to serve." In Read more

Ralph Nader On The GM Bankruptcy

Former Presidential Candidate Ralph Nader chimes in on the GM bankruptcy: Today's bankruptcy declaration in federal court by General Motors is an avoidable, crude weapon of mass devastation for workers, dealers, auto suppliers, small businesses and their depleted communities. For GM's voiceless owners -- the common shareholders -- it is a wipeout. The proximate cause of the bankruptcy was supposed to be the inability of GM and the government's auto task force to reach an accommodation with GM's bondholders. But late last week, the bondholder problem was moving toward rapid resolution, and was clearly resolvable. Why then are GM and its multibillion government financier proceeding with bankruptcy? The bankruptcy and the GM restructuring plan are the product of a secretive, unaccountable, Wall Street-minded government task force that assumed power because of a Congressional abdication Read more

Delaware’s Green Economy Suffers A Setback

The GE plant in Newark that makes solar panels is laying off 85 employees:
Rumsey said orders have been falling and inventory piling up as potential customers struggle to find financing for photovoltaic installations, which convert sunlight to electricity. “It’s unfortunate, but we have to align our manufacturing output with the demand that we have,” Rumsey said.
And if you think that’s a big bummer, check out this little tidbit:
But Pichel said the cost disadvantages of making solar components in the United States are becoming pronounced, and he believes more companies will outsource production to China.

I’ve Got A Proposal For You, Governor

Three new casinos for Delaware? That's our new Governor's vision for our beloved state. Think about it...Delaware is 96 miles long...3 new casinos will give us a casino every 16 miles! Oh yeah, and apparently we might need sports betting (even though professional sports is opposed to it), and table games, too. Well, I have an idea for Governor Markell, put the first new casino in Greenville, where you live. Just take a look at Greenville, there's lots of space for a nice, big, full blown casino with table games and slot machines and sports betting.... View Larger Map Afterall, you did say this: ...we will spread our sacrifices so no one citizen or group bears a disproportionate burden of this challenge." That means you and your neighbors, too, right, Governor? Read more

Congress Out Of Control

...Congress warned AIG execs to return their millions in bonuses - or face a possible new law taxing those payouts at up to 100%. "They should voluntarily return them. If they don't, we plan to tax virtually all of it," New York Sen. Chuck Schumer declared on the Senate floor. The idea that our government may be passing "new laws" in a fit of rage that can wipe out "virtually all" of someone's paycheck scares me. We all need to hope that the Great Eye of Schumer doesn't turn on our source of income someday. Read more

CEO Cuts His Pay, Earns Less Than Pilots

Here's a good role model, but more importantly an example that some execs just want a company to succeed.  There are executives who sacrifice as much as workers, don't ever forget that. Watch Video and if you thought this was some sort of BS, and he takes stocks instead, check this out: He only owns 17,000 shares of the company, which last closed at 217 yen per share, which is only worth a bit more than $39k USD. ... Read more

What Is the Deal?

The Fed has decided to avoid allowing the uncertainty in the market to devolve into a financial panic. It is has fired the executives of the federal mortgage companies Fannie Mae and Fannie Mac. Their failure would have pulled the entire world into recession and the U. S. into economic turmoil. The executives who lost their jobs didn't fare too poorly. One had the board insert into his contract last July after it was known they would need a government bailout, a nice departure clause. The bottom line is while taxpayers are at risk, pensioners have lost, and banks are undermined directly as a result of his mismanagement, he gets an extra bonus. What a deal! Here a quote the NYTimes aticle. But even after the government seized the mortgage finance companies on Sunday and dismissed their chief executives, the companies’ outgoing leaders could see big paydays — a prospect that Read more

So how will this plan work?

Senator Obama is a very intelligent man so how does he justify adding costs to domestic oil consumption by forcing 150 billion dollars of their money to be invested in his chosen energy programs (not drilling or building new refineries that we desperately need )and robbing them of profits as a means to control gas prices. When we tried this in the 70's it was a disaster. At least we can get gas when we want not wait in lines and decide for ourselves how to control our budgets. The problem with the Democrat party and energy is that they have no realistic plan.  There policies would increase the cost of energy not decrease it.  You can not magically mandate affordable energy. I am a big believer in alternative energy. I now see it as a national security issue not just an economic one. On that basis, I favor a more aggressive approach of tax credits and other breaks and even government seed Read more

The Delaware Job Magnet has been weakening.

Our state has a relatively low unemployment rate.  This is good news.  The bad news is that according to the State's economic report written in 2007, our job growth has been weakening consistently over the last decade and a half. We are in the bottom 1/3 of the nation in job creation. This is evidence that we are running on the fumes of the Republican reforms 30 years ago.  It is time to refuel the tank.  Here is the money quote from the report. Looking at the Local Area Unemployment Statistics (LAUS), the resident employment data for the state, Delaware’s economy looks rather healthy. The annual average unemployment rate dropped from 4.0 percent in 2005 to 3.6 percent in 2006, and it has been even lower in 4 out of the first 5 months of 2007. All of these rates are substantially below the national unemployment rate. As measured by this data series, employment growth has averaged 1.89 Read more