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How regions and states can use strategic sector investments to advance supplier diversity
Spurred in part by three significant pieces of federal legislation, the U.S. economy is experiencing an investment surge in “strategic sectors” like clean energy, semiconductors and electronics, biomanufacturing, and other advanced industries. Since 2021, companies in these sectors have announced over $525 billion in new investments, a trend that is already having an impact on the broader economy. For example, construction spending in the manufacturing sector increased by 37% in 2023, three times more than construction spending overall.
Along with commitments to workforce development, housing affordability, and community investments in childcare programs and more, the Framework articulates supplier diversity commitments, targeting 30% of eligible construction spending and 20% of ongoing eligible operation spending to businesses owned by socially and economically disadvantaged individuals (SEDI). By New York’s definition, SEDI businesses may include those owned by women, veterans, people of color, Indigenous people, and members of other underserved communities that have “had their access to credit…diminished as compared to others in comparable economic circumstances”; for the remainder of this paper, we refer to them collectively as “diverse-owned businesses” or “diverse suppliers”.
Along with commitments to workforce development, housing affordability, and community investments in childcare programs and more, the Framework articulates supplier diversity commitments, targeting 30% of eligible construction spending and 20% of ongoing eligible operation spending to businesses owned by socially and economically disadvantaged individuals (SEDI). By New York’s definition, SEDI businesses may include those owned by women, veterans, people of color, Indigenous people, and members of other underserved communities that have “had their access to credit…diminished as compared to others in comparable economic circumstances”; for the remainder of this paper, we refer to them collectively as “diverse-owned businesses” or “diverse suppliers”.
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