Author: Delaware Prosperity Partnership

Pandemic Spurs Innovation at ILC Dover

Pandemic Spurs Innovation at ILC Dover

Manufacturer Introduces EZ BioHood`


ILC Dover, one of Delaware’s most iconic manufacturers, has once again used its formidable material science expertise to fill a desperate need in the nation. Over 50 years ago, the company pioneered space suits to protect America astronauts from the vacuum of space. Now, in 2020, the company is pumping out products to protect frontline workers during the COVID-19 pandemic.

Demand Explodes for ILC Dover Line of Sentinel Products

A world-leading flexible protective solutions designer and manufacturer, ILC Dover has been one of the most innovative companies in Delaware since its start in 1947. Primarily focused on the pharmaceutical, personal protection, aerospace, bulk packaging and flood protection industries, ILC Dover suddenly experienced an explosion in demand for its line of Sentinel products in the healthcare industry during the onset of the pandemic.

The company has already been producing the Sentinel XL PAPR (powered air purifying respirators) for healthcare facilities nationwide. The revolutionary design based on customer feedback redefined how healthcare employees mitigate the risk of exposure to hazardous pathogens in recent years.

But earlier this year, orders shot up 1,200% from last year, said company president and CEO, Fran DiNuzzo. The surge immediately shocked their existing supply chain, which in turn, unlocked their innovative spirit.

“The amount of raw material we needed was vast and there was one critical part of our systems – called an HP hood – that we couldn’t get a sufficient supply of,” said DiNuzzo. “We wouldn’t be able to deliver our systems without the hood so our engineers had to design, build, gain regulatory approval for and start production on a new hood in a very short amount of time. That’s where the EZ BioHood came from.”

Making use of materials and fabrication equipment ILC Dover already had on hand, the firm fast-tracked an alternative. Racing against the clock, they pulled it off. ILC Dover was able to obtain regulatory approval in a timeframe that would have been unheard of months earlier.

“NIOSH (National Institute for Occupational Safety and Health) within the CDC was able to give us approval in just seven days – ordinarily this process can take anywhere from three to six months because of their workload,” said DiNuzzo. “With the help of the state, we contacted NIOSH directly to make them aware of the situation and from start to finish, we were able to get the new hood from design to production in five short weeks.”

The new Sentinel EZ BioHood is a loose-fitting hood designed to work with ILC Dover’s Sentinel XL blower system. It features an Assigned Protection Factor (APF) of 1,000 – compared to an N-95 mask which offers an APF of 10, the Sentinel EZ BioHood provides 100 times the protection. Superior to the N-95 in almost every way, the Sentinel EZ BioHood is supplied with clean filtered air, can be worn comfortably for long periods of time, and provides exceptional visibility, enabling healthcare workers to provide effective and continued care to patients.

Available to anyone, DiNuzzo says the blower system retails anywhere from $1,500 to $1,800 and the replaceable hood components run about $65 apiece.

Ramping up production has even allowed the company to grow at a time when the world economy is contracting sharply. ILC Dover has added 50 new employees to the project and significantly increased the footprint allocated to it in their facility. The company employs approximately 850 workers worldwide, about half of which are in their Frederica, DE facility.

“Right now, we’re operating at about 10x the production rate we were at in the beginning of the year,” said DiNuzzo. “We’re getting our people fully trained up and a few new pieces of equipment in as well which will allow us to ramp up further to about 30x our production.”

Prospects for Growth on the Horizon

While the worldwide pandemic was an unforeseen market force, DiNuzzo believes it’ll account for more than a temporary surge for ILC Dover.

“We’re anticipating a slow decline in coronavirus cases, but we don’t think it’ll suddenly drop off a cliff,” said DiNuzzo. “There will be quite a lot of work left to do in hospitals and healthcare systems so staff will need protection. We’re also expecting an increased level of use for these systems in general, as we now have a deeper understanding of how to keep employees safe while battling infectious diseases. For many months to come, there will likely be a significant amount of strategic stockpiling as well at the federal and state level as well as in the healthcare industry.”

The new business bodes especially well for ILC Dover’s future since it represents a previously untapped market for the firm.

“We really didn’t sell much in the healthcare market until the Ebola crisis a few years ago – and we were just filling a gap in demand at that time,” said DiNuzzo. “Healthcare professionals found our systems to be more comfortable and have increased visibility over what they were used to, so we’ve done well since then. However, now with coronavirus, our systems offer far better protection than other options so we think there will be a strong, growing demand. Generally, there is just a much larger marketplace right now in these products.”

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Sustaining the Supply Chain After COVID-19

Sustaining the Supply Chain

After COVID-19, What’s Next for Warehousing?


If it has been a while since you drove by the old General Motors plant in Newport, Delaware, you’re in for a surprise. The landmark, which closed in 2009, has been razed. A state-of-the-art Amazon fulfillment center will occupy a portion of the property.

It is Amazon’s third location in the state and the first Delaware project for developer Dermody Properties, which is known for spotting strategic sites. The company develops, acquires and invests in logistics, e-commerce and industrial real estate. 

Although based in Nevada, Dermody Properties is familiar with the Mid-Atlantic area. The company has developed and owned industrial properties throughout New Jersey and Pennsylvania, including LogistiCenter at Logan in Gloucester County, New Jersey — which has a one-million-square-foot Amazon warehouse — and multiple properties in the Lehigh Valley and Central Pennsylvania.

The company has thrived for nearly 60 years by staying on top of warehouse and logistics trends — an attribute that is indispensable now that COVID-19 has disrupted the standard supply chains.

Strengthening the Weak Link in the Supply Chain


Before COVID-19, warehouse designs and distribution models increasingly accommodated the just-in-time system (JIT). The Japanese approach, which dates back to car manufacturers in the 1970s, limits the amount of capital tied up in inventory. This practice results in a smaller storage footprint and decreases the risk of having obsolete inventory. 

“The day before you make toilet paper, you want the massive roll from the mill to arrive,” explains Jeffrey Zygler, a partner with Dermody Properties, who oversees build-to-suit and e-commerce projects across the United States. “And you want to make the toilet paper right before you receive an order for it to minimize the time it sits in your warehouse.”

If you are a certain age, you may have noticed this approach in grocery stores or large retailers like Target. The buildings have less room for storage and more retail room for displayed products.

Accurate inventory control and supply chain software are essential if the company wants to stay on top of its stock. Scanning devices have made this easier. 

Companies like Amazon, which promise quick delivery, also use data to predict buying trends in specific areas, Zygler says. As a result, they can keep certain goods close to the likeliest buyers. 

In a state-of-the-art fulfillment center, the layout facilitates the swift movement of products from storage to packaging. The buildings also must allow employees to work alongside robotics to pick, pack and ship items. 

COVID-19, however, put the drawbacks of JIT in the limelight.

“Everything was just-in-time, starting at the grocery store,” Zygler says. “Markets had just enough stock for their typical demand. Distributors had just enough inventory for their usual demand, and manufacturers had just-in-time raw materials. There was no ‘circuit-breaker’ to stop the upstream surge in demand from depleting inventory at every level of the supply chain.”

Customers were creating an at-home stockpile when there was no warehouse stockpile to replenish the shelves.

Looking forward

The pandemic’s effects are still in play but suffice it to say that many companies may need more room in their warehouse as a buffer. “It may not happen at the fulfillment center, where workers are packing the items for the consumer, but it might happen in suppliers’ warehouses, where pallets are stored to restock the fulfillment center,” Zygler says.

Meanwhile, COVID-19 has led to policies, procedures and protective structures such as plexiglass partitions that are prompting redesigns and reconfiguring.

The main driver for more space — both in size and in number — is the consumer. Even before COVID-19, people were ordering more online, Zygler says. During the pandemic, people grew accustomed to getting everyday goods and food delivered to their door. That’s not likely to change. Given consumer concerns about COVID-19 exposure in retail shops, it could increase.

The e-commerce company isn’t the only business needing more space. Carriers that deliver the goods need room to sort and hold packages waiting for transport.

The need for speed is another reason for more warehouse hubs. Delaware’s location is an advantage: The Boxwood Road site is less than 10 miles from the Maryland, New Jersey and Pennsylvania state lines, two miles from the I-95/I-295/I-495 junction and four miles from the Port of Wilmington.

What the Greater Philadelphia area lacks in open land, it makes up for in property that’s ripe for reuse. The GM plant is a prime example. The property is unsuitable for residential use, Zygler notes. Capping it with concrete, asphalt and warehouses is better than letting the site slide into disrepair. The old buildings, meanwhile, weren’t conducive to current business practices.

If all goes as planned, the Amazon facility on Boxwood Road should be complete by the fall of 2021. Dermody Properties, which typically acquires or develops and builds facilities with its capital, is looking for more opportunities in Delaware, Zygler says.

“The State of Delaware and New Castle County collaborated with us to make this project a reality,” he says. “We are impressed with their level of service, and it’s a location where we want to do more business.”

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Delaware’s Triple-A Bond Rating Reaffirmed

Delaware’s Triple-A Bond Ratings Reaffirmed

 

Refunding Transaction Helps Address the State’s Budget Challenges


The State of Delaware has announced the successful refunding of $33 million of debt at a record low Total Interest Cost of 0.79%. The transaction will save the State $5.2 million in debt service on a net present value basis over the next decade and is structured to further help the State address the Fiscal Year 2021 budget challenges brought on by the COVID-19 emergency.

Three bond rating agencies reaffirmed Delaware’s Triple-A rating – Fitch, Moody’s and KRBA – with each taking note of the work of Governor John Carney and the Delaware General Assembly in recent years to boost reserves to prepare for economic downturns. J.P. Morgan Securities LLC served as senior managing underwriter for the transaction.

View rating agencies’ credit reports.

“Delaware continues to receive high marks for fiscal management which allows us to sustain the important investments we’ve made in our schools, our communities, and our economy, including efforts to address the impacts of COVID-19,” said Governor John Carney. “The COVID-19 emergency presents enormous financial challenges for every state including Delaware. But I think all Delawareans can be proud of the work we’ve done with the General Assembly to boost the State’s finances prior to this unanticipated event, so our State is better prepared to weather the storm.” 

“This successful transaction shows the market’s confidence in Delaware despite the near-term challenges faced by every state,” said Secretary of Finance Rick Geisenberger. “The competitive pricing and debt service savings achieved for Delaware’s taxpayers speak volumes about our State’s continuing financial strengths.”

KRBA views the financial position of the State as “very strong based on its conservative budgeting policies, comprehensive and timely process of revenue estimation, high levels of financial reserves and strong liquidity. In response to the economic impacts of the pandemic, the State has constrained its FY2020 spending and projected expenditures are under budget.”

Moody’s noted that “Delaware’s Aaa rating is supported by its healthy and stable finances and its strong management and governance, all of which enhance the state’s capacity to weather the economic downturn caused by the coronavirus outbreak. The state’s recent growth in reserves provides a cushion in the currently challenged economic environment brought on by the coronavirus pandemic.”

Fitch also noted that “Delaware’s history of exceptional financial resilience and strong budget management may be tested by the depth and duration of this downturn. However, Delaware’s close tracking of both revenues and expenditures and frequent revenue forecasts updates have historically allowed it to quickly respond to changing economic conditions. Fitch anticipates the state will take appropriate action to maintain balance.”

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Delaware Biotechnology Institute® on Cutting Edge

Supporting Science: Delaware Biotechnology Institute Remains on the Cutting Edge

In 1999, biotechnology was a burgeoning industry – and Delaware’s leadership spotted the potential. That year, then-Lt. Gov. John Carney, working with Gov. Tom Carper, earmarked $10 million to create a biotechnology institute that would partner with corporations, colleges and universities. It would also support research, as well as train and attract talent.

More than 20 years later, Delaware Biotechnology Institute (DBI) has exceeded expectations. Currently housed in 72,000 square feet at Delaware Technology Park, DBI will manage the new 220,000-square-foot Ammon Pinizzotto Biopharmaceutical Innovation Building on the University’s STAR (Science, Technology and Advanced Research) Campus. The new building also is the home of the National Institute for Innovation in Manufacturing Biopharmaceuticals (NIIMBL), part of the Manufacturing USA Network.

Most would agree that DBI has played a large part in the ascent of the biotechnology sector in Delaware. In many respects, the institute’s growth reflects the industry’s relevance in today’s world.

Delaware Biotechnology Institute Upholding a Scientific Legacy


DBI director John Koh Delaware biotechnologyDelaware is no stranger to innovation. “Science-based research built the Delaware economy and helped launch America’s technology-based industries,” says John Koh, director of DBI and a University of Delaware chemistry and biochemistry professor. “Delaware is a pioneer in technology and industry.”

In 1802, DuPont began as a gunpowder mill. By the early 20th century, the company was creating textiles and other materials. Along with DuPont, the life science powerhouses AstraZeneca and Hercules helped launch DBI in 2001.

The institute’s early academic partners included UD, which has offered programs in chemical engineering and agricultural research for more than a century; Delaware State University, Delaware Technical Community College and Wesley College; and ChristianaCare and Nemours/Alfred I. duPont Hospital for Children. All of the partners can leverage DBI’s highly prized instrumentation and research resources.

When DBI opened its headquarters in 2001, the $14 million building in Delaware Technology Park certainly was the centerpiece of the state’s $40 million investment in the emerging biotech industry. From the start, DBI focused on its strengths.

“Our genome-sequencing facility is world-renowned for its ability to handle agricultural and plant genomes, which are much larger and more complex than mammalian genomes,” Koh says. “DBI created a unique niche, initially focusing on excellence in agricultural biotechnology and then expanding across all molecular and cellular life sciences.”

Meeting Today’s Researchers’ Needs

DBI Alok Patel Delaware BiotechnologyToday, human health, agri-tech and the environment form the three pillars of life science research at DBI. “These core areas are built on cross-disciplinary research conducted by world-class faculty members,” says Alok Patel, DBI’s associate director of external affairs.

At the core of the Institute’s services are state-of-the-art specialized instruments that cost millions of dollars. Take, for instance, the high-end microscopes in the bio-imaging facilities, next-gen sequencers in the genotyping and DNA-sequencing facility and the massive computing power in the bioinformatics facility. In addition, highly knowledgeable personnel provide much-needed guidance to researchers.

“We’re here to support the whole scientific ecosystem,” Koh says. “You have to have expert technicians – sometimes at the Ph.D. level – to operate the technology.”

For startups, this combination of equipment and expertise “helps accelerate their business model,” Patel says. “Small companies are looking to grow as fast as possible, but resources can be hard to come by.”

Academic collaborations can lead to startup companies. Consider Elcriton, which evolved from the DBI lab of Professor Terry Papoutsakis. “Terry was one of the star scientists we were able to recruit,” Koh says.

Elcriton was founded to create novel biochemical technologies to address the country’s renewable energy needs. Dr. Bryan Tracy and Papoutsakis, a chemical engineering professor, worked on the development of a genetically modified bacteria, known as Clostridia, that could produce biofuel n-butanol.

Tracy, who still has his eye on sustainability, is now CEO of White Dog Labs in nearby New Castle, Delaware. White Dog specializes in microbiome-driven solutions to increase food sustainability and improve the quality of human health and animal nutrition, while also minimizing the emissions contributing to climate change.

Sowing Seeds for the Future

Because the Institute is a hub for faculty and students – from undergraduate to post-doctoral – DBI is a training ground for workforce development. The Institute also is involved in K-12 outreach efforts and holds programs to train student teachers.

DBI also manages the Delaware Bioscience Center for Advanced Technology (CAT) program, which nurtures academic-industry partnerships through three grant mechanisms:

  • Applied Research Collaborations support bioscience research between Delaware academic facilities and business partners.
  • Technology Access Programs give bioscience businesses access to high-end research technologies at a reduced rate.
  • Entrepreneurial Proof of Concept supports research that helps create new Delaware-based business.

“We impact a wide range of businesses with these grants, from small to large,” Patel notes. Companies such as Air Liquide, Sea Watch International, Prelude Therapeutics and Avkin have all benefited from the program.

“These grants are the way we can help align academic research with the needs of the business community and, ultimately, support their workforce needs,” Koh says.

DBI also works closely with incubators and associations in the community, such as Delaware Technology Park, Delaware Innovation Space, Delaware Prosperity Partnership, the Delaware Bioscience Association, the Delaware Sustainable Chemical Alliance and numerous chambers of commerce across the state.

DBI’s presence also has an impact on its own. The decision to locate the National Institute for Innovation in Manufacturing Biopharmaceuticals in Delaware is partly due to DBI, and NIIMBL’s director, Kelvin Lee, is the former director of DBI. The addition of NIIMBL and its expanding focus on human health is opening doors for DBI.

“We have the opportunity to build our human health research because of breakthroughs in biotherapeutics,” Koh expands.

The Ammon Pinizzotto Biopharmaceutical Innovation Building stands on what formerly was a Chrysler plant. One day, Koh stood on the roof of the new building and watched as workers removed the last of the plant’s concrete. Initially, he felt sad as Chrysler had once been a major employer in the state. But then he looked around at the new occupants, which include Chemours and UD’s College of Health Sciences.

“I got excited about the important place we have in redeveloping and redefining Delaware’s economy,” he says.

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Six Steps Towards Economic Recovery

Six Steps Towards Economic Recovery

Delaware consultant Kirsten McGregor helps economies rebound after a disaster. Here are her tips for government and business leaders in the wake of COVID-19.

In the 21st century, the U.S. economy has taken it on the chin more than once. The first decade started with 9/11 and was punctuated by a recession. A string of natural disasters caused massive revenue losses. Now municipalities and companies are facing a daunting disrupter: the COVID-19 pandemic.

As a result, Kirsten McGregor’s phone is ringing. She is the principal of SAGAX Associates, a Wilmington, Delaware-based economic recovery and development firm.

Sagax Associates founder Kirsten McGregorMcGregor, who has a master’s degree in city and regional planning from the University of Pennsylvania, is a specialist in economic recovery. She was the senior policy advisor on President Obama’s Hurricane Sandy Task Force and an economic lead recovery coordinator working with FEMA after Sandy. Most recently, she’s been an economic recovery lead coordinator consultant in the U.S. Virgin Islands, which were devastated by hurricanes Irma and Maria.

Unlike a storm that passes before recovery begins, the pandemic remains an active presence as businesses begin to regain traction, notes McGregor. With shutdowns and layoffs, the economy felt the immediate impact of the coronavirus. That is true even in cities that aren’t hotspots.

“Communities reliant on severely impacted industries, such as tourism, will experience significant economic challenges,” she explains. The pandemic is also affecting economies across the globe.

As governments and businesses look to rebuild, there’s no reason to “reinvent the wheel,” she maintains. There are established federal frameworks that you can leverage. Leaders can also cultivate the characteristics they need to withstand what’s ahead.

Realize you can’t control the situation

You can control your actions and emotions, but you can’t control a force of nature, McGregor says. Even so, act confidently and quickly — even when you don’t have all the answers. Adapt to new information as needed.

Don’t let ego get in the way. According to McGregor, to lead by example, you must be:

  • Responsive, not reactive.
  • Authentic without being sensationalizing or politicizing.
  • Balanced in an environment of fear and anxiety.
  • Grounded and present.
  • Mission-focused and committed.

Build a support system

Bring together people with whom you feel safe so you can hear different viewpoints. Empower your leadership team and delegate tasks. Communicate frequently and show appreciation. “Recovery work can be exhausting,” McGregor notes.

A leader should create an interdisciplinary task force — a recovery or resiliency team — and an office of disaster recovery with a dedicated staff and a chief recovery or resiliency officer (CRO). “The office and task force should be as politically agnostic as possible to avoid a recovery relapse if there is a change in leadership,” she says.

She also recommends a centralized coordinator to manage and oversee recovery funding to boost credibility and transparency when grant requests flood the office.

Provide a seat at the table — or secure one

To develop strategic plans and strategies, the task force will need input from subject matter experts. “The federal government guidelines encourage a steering committee with a large percentage of people from the private sector,” McGregor says. “Businesses drive the economy.”

If you’re a leader in a hard-hit industry, such as hospitality or tourism, seek a position or representation on that committee.

Manage expectations

“Your mindset is your message,” McGregor often says. Communicate a consistent, transparent and coordinated message to the community, internal and external government and stakeholders. If a desperate community can’t get answers from you, they will look to another source — regardless of its credibility.

  • Provide clear explanations.
  • Focus on what you do know; do not speculate.
  • Do not dismiss or downplay the situation.
  • Provide factual data, information and actions that are underway.
  • Cite your sources.
  • Identify the best person to deliver the message to a particular audience.
  • Customize the message to that audience.
  • Promote collaborative and empathic messaging.

Make sure everyone is working with the same datasets by forming data and messaging committees. “The coordination of messaging is key,” McGregor says.

Find any weak links

McGregor says that a disaster will highlight preexisting vulnerabilities, from food supply issues to the need for mental health services. This is an opportunity to mitigate damage now and for the future.

Take advantage of funding

Small businesses can be highly vulnerable in an economic downturn. Apply for any funding resources that you can find, she says. Contact the Small Business Development Center and go to your state’s Office of Small Business website to learn about federal contracts, organizations, and agencies that provide technical assistance.

“Pay attention to any policy and funding changes and how you can adapt,” McGregor says. “Changes will happen frequently, so embrace the uncertainty.”

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Delaware Textile Mill Spins Opportunity from Crisis

Delaware Textile Mill Spins Opportunity from Crisis

When businesses across the country started shuttering in response to COVID-19, Nick Griseto was worried. As president of James Thompson & Company Inc. – a Delaware textile mill in Greenwood – Griseto has almost 45 employees working at their 125,000 square-foot facility.

“That’s one of our worst fears,” he said. “Having that many people making their livelihood with your company – you really don’t want to lay anyone off. Having a decent job, especially at a time like this is huge in peoples’ lives. It makes all the difference. Getting laid off is a terrible emotional drain for the employee and their family. I didn’t want to put anyone through that.”

Delaware Textile Mill an “Essential” Business at the Start


Although deemed an “essential” business at the start, most of the mill’s suppliers shut down, so Griseto had to close for two weeks. However, after some strategy conversations with Sussex County’s Economic Development Director William Pfaff and some industrial pivoting, Griseto hit on the idea of distributing fabrics to mask manufacturers. This has become an especially crucial sector locally and nationwide as many Governors have mandated their use to help contain the spread of the virus.

“Within 24 hours of looking into it, we were getting feedback from local hospitals and manufacturers concerning what they needed and how to get it to them,” said Griseto. “We donated much of what we had on hand – but since then, we’ve found a few new suppliers that have remained open and we’re getting more product in. We’ve ramped back up and we expect to be back in full production by the middle of May.”

For groups and nonprofits making masks for first responders, James Thompson & Co. is still donating materials. But, Griseto is proud to be a part of the supply chain that is bringing in high-quality materials for manufacturers that are engaged in larger-scale production too.

“Now that we have the right suppliers, we’re getting in great material,” he said. “To be the proper mesh for masks, it needs an antimicrobial agent on it – it’s a sort of chemical finish.”

It took flexibility and ingenuity, by Griseto believes the changes his company has made accomplishes two of his most important goals; being an asset to the community and providing a sustainable workplace for his employees.

“I think this is a drive that most entrepreneurs have: contributing to society,” he said. “In the past we’ve donated fabrics and clothing to schools, but with this, we feel like we’re stepping up in a crisis. It’s important for any manufacturer to be an active part of the community their based in.”

Storied Past, Bright Future

One of the oldest textile mills in the country, it’s a bit of luck that James Thompson & Co. has become a part of the ‘first state’ community. Founded in 1860 by a Scottish immigrant named James Thompson, the mill opened its doors in the thick of the industrial revolution in Valley Falls, New York.

Over the intervening century in a half, they’ve brought myriad fabrics, dyes and finishes to market. In 1972, they moved their mill operation to the 136-acre site in Greenwood where it still resides.

In 2016, the last descendent of James Thompson to run the company, Robert Judell, passed away at the age of 92. The estate had dwindling interest in running the company, explains Griseto, so he was hired to manage or sell it. Seeing great promise in the well-established company, Griseto, and his wife Terry ended up buying it in late 2019.

“Terry and I helped manage it for four years until purchasing it,” he said. “Since then we’ve done a lot of cleaning up and streamlining of the operation, sort of trying to figure out who we are.”

Up until last year, James Thompson & Co. had been maintaining a headquarters on Park Avenue in New York City. Griseto noticed immediately that there were significant cost benefits to consolidating the operation and moving all functions to Delaware. He notes that real estate costs, commuting, logistics and access to a diverse, affordable labor pool all helped make that decision easier.

“The office in New York was only about 2,000 square feet, but between rent, taxes and utilities, we were spending over $300,000 per year,” said Griseto. “That doesn’t include labor costs. Now everything is here in Delaware; the corporate and sales headquarters and all our manufacturing. We’ve also begun to renovate the plant.”

At a time when many businesses are contracting and taking a wait-and-see approach to business, Griseto is bullish with his bet on Delaware. Not only is he confident that his COVID-19 pivot was enough to keep his 45 employees busy, he has expansion plans that could put hundreds more people to work at his facility.

“We have room to expand here and we’re going to add additional buildings – thanks to some planning we’ve done with Sussex County’s public works, waste treatment capacity issues are being resolved so we can keep growing,” he added. “Our goal is to increase manufacturing and reintroduce printing to our facility again. I plan to have disabled vets working here to do the printing on military uniforms. In two or three years, we could have up to 300 to 400 people working here.”

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Amazon Builds on 20 Plus Years of Investments in Delaware

Amazon Builds on More Than 20 Years of Investments in Delaware with
New, State-of-the-art Fulfillment Center in Wilmington, Delaware

New facility will create more than 1,000 new, full-time jobs,
on top of the company’s current 2,500 employees across the state

WILMINGTON, Del. (May 19, 2020) — Gov. John Carney and Amazon formally announced today that the company will launch a new, state-of-the-art fulfillment center in Wilmington, creating more than 1,000 full-time jobs. Amazon first launched operations in New Castle in 1997 with its first fulfillment center in the network and launched its second Delaware fulfillment center in Middletown in 2012. The company has now grown to more than 110 fulfillment centers in North America and 185 globally, fulfilling millions of customer orders every day.

“Amazon already employs more than 2,500 Delawareans, and we welcome additional investment that will result in more jobs for Delaware families — especially at vacant industrial sites that are ideal for redevelopment,” said Delaware Governor John Carney. “Delaware has a world-class workforce, a central location and a quality of life that is second to none. For those reasons and more, Delaware is a great place for businesses of all sizes to grow and create jobs.”

Amazon will lease a built-to-suit building, developed by Dermody Properties, at the site of the former General Motors’ Wilmington assembly plant, which closed in 2009 and was demolished in 2019. This is Dermody Properties’ – a premier e-commerce, logistics real estate development firm’s – first venture in Delaware. Jeffrey A. Zygler, a partner at Dermody Properties said, “Delaware officials and regulatory agencies have been very responsive to our needs, which is paramount in projects of this magnitude. Their collaborative approach and commitment allowed us to attract Amazon to our project.”

Amazon’s new operations facility will span more than 820,000 square feet on the ground floor. Employees at the site will work alongside innovative Amazon robotics technology to pick, pack and ship smaller customer items such as books, electronics, small household goods and toys. In addition, Amazon will hire for roles in human resources, operations management, safety, security, finance and information technology.

“The First State was home to Amazon’s first fulfillment center 23 years ago,” said Ryan Smith, director of Amazon robotics fulfillment centers in North America. “I’m proud to see the continued growth and investment in Delaware with our newest fulfillment center in Wilmington. Amazon has found an outstanding, passionate workforce, strong state and local support and incredible customers across the state. We look forward to creating 1,000 new, full-time jobs with industry leading pay and benefits, starting on day one, in a safe, innovative and quality work environment. I know first-hand the opportunity and support network we provide employees for long-term, career success, and I’m excited to provide that same opportunity for thousands of current and future Amazonians.”

Amazon jobs are great jobs with great benefits. On top of the company’s industry-leading $15 minimum wage, full-time employees receive comprehensive benefits, including full medical, vision and dental insurance as well as a 401(k) with 50 percent company match, starting on day one. The company also offers up to 20 weeks of maternal and parental paid leave and innovative benefits such as Leave Share and Ramp Back, which give new parents flexibility with their growing families. At Amazon, these benefits and opportunities come with the job, as does the ability to communicate directly with the leadership of the company.

“The Amazon location announcement says something about the state of our economy, but also about the spirit of our people in New Castle County,” said County Executive Matt Meyer. “When you have one of our largest commercial sites, one that hasn’t created any jobs, barren for more than a decade, it speaks to the neighbors and the community here. Now we’re going to have the retail operation of the future, creating more than 1,000 jobs, and we’ll have a workforce that will deliver for them.”

In addition, Amazon has pledged to invest over $700 million to provide upskilling training for 100,000 U.S. employees for in-demand jobs. Programs will help Amazonians from all backgrounds access training to move into highly skilled roles across the company’s corporate offices, tech hubs, fulfillment centers, retails stores and transportation network or pursue career paths outside of Amazon.

“At Amazon, we want to help our employees get the skills they need for today’s – and tomorrow’s – most in-demand jobs,” said Smith. “All associates go through hours of safety training and ongoing coaching and have access to continuing education opportunities through Amazon’s upskilling programs, such as Career Choice, in which the company will pre-pay up to 95 percent of tuition for courses related to in-demand fields, regardless of whether the skills are relevant to a career at Amazon. Since the program’s launch, more than 25,000 employees have pursued degrees in game design and visual communications, nursing, IT programming and radiology, to name a few.”

An Amazon presence in Delaware means more than just the jobs provided within its four walls. In addition to full-benefit, great jobs inside the building, the company has brought thousands of jobs in construction and services. Since 2010, Amazon has invested more than $2.5 billion in Delaware through its customer fulfillment infrastructure and compensation its employees. Amazon’s investments in Delaware have contributed an additional $1 billion into the state’s economy, and, using methodology developed by the U.S. Bureau of Economic Analysis, Amazon estimates its investments in the state have created an additional 700-plus indirect jobs on top of the company’s 2,500 direct hires.

Amazon’s fulfillment network supports millions of businesses of all sizes worldwide through its Fulfillment By Amazon offering. There are more than 6,000 authors, small and medium-sized businesses and developers in Delaware growing their businesses and reaching new customers with their products and services on Amazon.

There are nearly 3,500 nonprofit organizations in Delaware that Amazon customers can support simply by shopping on Amazon Smile. Amazon supports local nonprofits and local public schools through both monetary and in-kind donations in the communities where associates live and work. Amazon associates regularly volunteer in the community with a wide range of activities from building homes, hosting game nights at senior centers and supporting community events and schools. Amazon has donated hundreds of thousands of dollars to Delaware nonprofits, including the Appoquinimink Community Library, the Delaware Boys & Girls Club, the Poly Tech High School Robotics Club and the Food Bank of Delaware. The company also donated more than $20,000 in STEM learning items and toys to children battling cancer at Nemours/Alfred I. duPont Hospital.

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About Amazon

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence and long-term thinking. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo and Alexa are some of the products and services pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.


About Delaware Prosperity Partnership

Created in 2017, Delaware Prosperity Partnership (DPP) is a nonprofit that leads the state of Delaware’s economic development efforts to attract, grow and retain businesses; to build a stronger entrepreneurial and innovation ecosystem; and to support private employers in identifying, recruiting and developing talent in the state of Delaware. For more information, visit choosedelaware.com.

Contact:

Susan Coulby
Delaware Prosperity Partnership
302.983.5710 (cell)
scoulby@choosedelaware.com

Rachael Lighty
Amazon
Amazon-pr@amazon.com

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AirGreen’s Cost-Efficient HVAC Systems

Cool Running: AirGreen’s Cost-efficient HVAC Systems are a Boon for Businesses

When it comes to air conditioning in the workplace, many people focus on the temperature and the bottom line. But for many industries, humidity and air quality control are just as important as comfort and cost. Enter AirGreen’s liquid desiccant cooling system, which covers all the bases. 

The New Castle, Delaware, company’s patented system controls temperature and humidity while cleaning the air — and it does so at a significant savings. The design can save up to 50 percent to 60 percent of the energy that other commercial and industrial systems require.

It’s easy to see why AirGreen is “poised to position itself for a period of substantial growth,” says CEO John Hammond.

From a Great Idea to a Green Company


Founded in 2013, AirGreen is the brainchild of British-born Andrew Mongar, an avid environmentalist and business professor. Since securing funding was no easy task, AirGreen hired Hammond to help the company get up and running.

CEO AirGreen Inc. John HammondHammond — who has a bachelor’s degree in chemical engineering from the Georgia Institute of Technology plus executive graduate business classes at both Wharton and the University of Richmond — was no stranger to Delaware. He’d spent 13 years with the DuPont Co. in various roles.

He was also familiar with startups. “I’ve had numerous experiences leading, helping and growing startups over the past 25 years, starting with building a joint venture for DuPont in 1997,” he explains. He then helped startup a chemical industry dot-com and, later, a high-tech composites firm. Most recently, he was a consultant for defense, aerospace and chemical industry clients. 

AirGreen’s team was impressed with Hammond’s experience in chemical engineering, process controls, product and business management and business development. 

Hammond came on board in September 2018. Six weeks later, Mongar sadly passed away. Despite this loss, AirGreen stayed the course thanks to its committed staff and investors.

A Better Process

AirGreen completed its Series A round of financing in January 2019 and spent the bulk of that year moving the technology toward commercialization while maintaining the energy savings integral to Mongar’s vision.

To appreciate AirGreen’s efficiency, it helps to understand how most industrial air conditioners work. To effectively dehumidify the air, these traditional systems drop the temperature to the dew point. Often, they then warm the air back to an acceptable level. The process consumes considerable energy.

AirGreen’s close-looped liquid desiccant system avoids the inefficient rollercoaster process. In four stages, the air conditioner removes moisture from the inbound air via direct contact with concentrated liquid desiccant that circulates through plate heat exchangers. Cool fluid (typically water or water/glycol) removes the heat at each stage. The conditioned air is typically about 60 to 65 degrees Fahrenheit with 40 to 50% relative humidity. (The regeneration process is similar.) 

AirGreen’s Clean, Comfortable Air

Because the air is drier, most workers do well with a higher thermostat setting, which also saves energy. But the technology’s application goes beyond human comfort. 

“While there are broad industrial applications for facilities seeking to lower their energy footprint or provide cool and dry conditioned air, we’ve recently been focusing on applications where humidity control is paramount,” Hammond says.

Consider indoor growing facilities for leafy greens, vegetables, hemp for CBD oil or medical cannabis. Not only do these spaces have hot grow lights, but they also have moisture-producing plants. “Proper environmental controls help growers avoid quality issues, such as mold, and promote healthy plants,” Hammond notes.  

Humidity control is crucial in other facilities. For instance, AirGreen’s technology is an advantage for schools that close for months at a time. “They get hot and moist, and mold grows,” he says. “The buildings would benefit from being kept dry.”

Because the system captures and neutralizes airborne pathogens, dust, allergens and microbes, it also has applications for hospitals, research facilities and other sterile environments.

“AirGreen is looking forward to demonstrating its unique capability to chemically scrub the indoor air streams of such impurities as mold, viruses and other pathogens in a way that traditional equipment can’t accomplish,” Hammond says. “AirGreen continues to seek local applications for this unique benefit in Delaware schools, hospitals and other workplaces where indoor air quality can be of concern to residents and workers.”

The flexible system can run with heat pumps or renewable energy sources. It can replace an older unit yet work with existing ductwork. Or, it can also pretreat and dry air alongside an established unit.

Meeting a Worldwide Need

AirGreen has already demonstrated its ability to provide superior indoor air quality in applications requiring substantial and precise humidity control, Hammond says. “It is doing this at considerably lower energy costs at four applications in Delaware.”  

To best service the units, AirGreen is concentrating marketing efforts in the region. After a certification process is in place for HVAC contractors, the company will broaden its reach. 

Delaware’s proximity to urban areas on the East Coast has been an advantage from the start.

“Delaware was a great choice for a high-tech business,” Hammond says. “The location provides access to a skilled workforce, and it’s a business-friendly state in general.”

He’s pleased with the Delaware Prosperity Partnership’s unique approach to attracting businesses to the state, and he appreciates the state’s size, which makes it easy to form beneficial relationships. Additionally, the Delaware Angel Investor Tax Credit appealed to AirGreen’s investors. 

From New Castle, AirGreen is preparing for a much larger stage. The demand for air conditioning is increasing in India and other countries with emerging economies and a growing middle class.  By 2030, there will be an estimated 4.5 billion room air conditioning units worldwide compared to 1.2 billion today. But the technology has not kept up with the demand for efficiency. 

“We intend to provide part of the solution to this global issue,” Hammond says. “We have found that companies are interested as long as new technology provides a tangible return on investment, and AirGreen definitely does just that.”

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Third Round of COVID-19 Business Survey

Third Round of COVID-19 Survey Continues to Track Delaware Business Response

WILMINGTON, Del. (May 7, 2020) – A statewide COVID-19 business survey administered three times so far by Delaware Prosperity Partnership (DPP) and its economic development partners is informing Delaware’s responses to the pandemic and its plan for a full recovery.

The third round of the Delaware business COVID-19 response survey was conducted from April 27 to 30 and resulted in responses from 285 Delaware businesses. New questions for this round of the survey included those regarding the status of Small Business Administration (SBA) loans and the Paycheck Protection Program.

“In addition to the qualitative information DPP is gathering by hearing firsthand from businesses throughout Delaware, the quantitative survey helps inform how we can best support businesses as Delaware navigates its way to full recovery,” said Kurt Foreman, DPP president and CEO.

COVID-19 Business Survey Take-aways


Topline take-aways for the third survey include:

  • 39% of respondents applied for an SBA Economic Disaster Injury loan. Of those businesses, 23% were successful in securing a loan, 16% were unsuccessful and 62% have pending applications.
  • 61% of respondents applied for the Paycheck Protection Program. Of those businesses, 48% were successful in securing funding, 8% were unsuccessful and 44% have pending applications.
  • Among respondents who secured PPP funding, the average grant was nearly $400,000, with a median grant amount of about $100,000. Collectively, this funding allowed respondents to retain about 2,400 of their employees and rehire another 331 employees.
  • Among respondents whose businesses were open, supply chains still seemed relatively intact. On average, respondents indicated they were able to ship and receive more than 78% of goods and services, up from about 70% in the second survey. Figures were largely similar, looking at results by business size.
  • Collectively, there have been about 1,900 separations (furloughs, layoffs and termination) at responding businesses, accounting for about 17% of the total workforce among responding businesses (compared with 13% in the second survey). While industries like Retail Trade; Accommodation and Food Services; and Arts, Entertainment and Recreation continue to account for an outsize share of separations, there have been downsizings in nearly every industry.
  • Revenues are down for nearly all industries and business sizes, with 82% of respondents indicating a decline in revenue (similar to the second survey). On average, respondents indicated their business could survive for about 12 weeks – in line with the average from earlier surveys – but this includes a wide range of responses. About one-quarter of respondents could survive four weeks or less, similar to the second survey’s findings.

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Created in 2017, Delaware Prosperity Partnership (DPP) leads the State of Delaware’s economic development efforts to attract, grow and retain businesses; to build a stronger entrepreneurial and innovation ecosystem; and to support private employers in identifying, recruiting and developing talent in the State of Delaware. The DPP team works with site selectors, commercial developers and business executives focused on where to locate or grow a business. The team helps with reviewing potential sites, cost-of-living analysis and funding opportunities, including available tax credits and incentives. For more information, visit choosedelaware.com.

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Delaware Chefs and Restaurant Owners Innovate During COVID-19 Crisis

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Delaware Chefs and Restaurant Owners Innovate During COVID-19 Crisis

From Upscale to Down-Home, Eateries Get Creative


Market disruption can often lead to new ways of doing things. Delaware’s highly regarded chefs and restaurant owners wasted no time pivoting when COVID-19 restrictions went into place in mid-March.

A Temporary Pivot

Houston-White in Rehoboth Beach is a sophisticated steakhouse, but since the governor’s state of emergency, owner Megan Kee has been making shepherd’s pie, fajitas, crab cakes and prime rib. There is only one dish a day, and two employees fill the orders.

“I call it country comforting foods,” Kee says. “It’s the things people can afford and enjoy.”

In Lewes, Meghan Lee of Heirloom did not waver from her concept, but she did adapt. The high-end restaurant holds special pop-up sales featuring soups, sides, sourdough bread and specialty whipped butters and desserts made by Chef Matt Kern, a James Beard semifinalist, and his team.

And then there’s V&M Bistro of North Wilmington, which is posting Facebook photos of towering pizza boxes. To keep the service level of fine dining, owner Vincenza Carrieri-Russo is the only one who answers the phone, and she greets customers with a warm, polished voice.   

Restaurants Owners Converting to Carryout


Not surprisingly, operations accustomed to carryout have had an advantage. Kick n’ Chicken, which has locations in Milford and Lewes, was built around takeout.

“People can come in and get a Styrofoam container with a meal in it for $8 to $10 and walk out the door,” says owner Charlie Pollard. “If you’re a dine-in restaurant and want to make a conversion to takeout, it’s not a smooth transition.”

But, as SoDel Concepts proves, it can be done. The Rehoboth Beach-based hospitality group kept all but one of its 12 Sussex County restaurants open. There is a new website for online ordering and payment, and the restaurants are promoting contactless curbside delivery.

Big Fish Restaurant Group, also based in Rehoboth Beach, took another approach. The company temporarily closed all its downstate businesses except for Big Fish Seafood Market, which sells fresh and prepared foods. The slim space previously handled takeout for Big Fish Grill next door. But today, you might find specials from its sister restaurants, including Sazio and Salt Air. In downtown Wilmington, Big Fish kept Mikimotos and the neighboring Washington Street Ale House open because they already had a brisk takeout business, says Holly Monaco, director of operations for the restaurant group.

“Mikimotos only has sushi available,” she adds.

As with Big Fish Seafood Market, Crow Bar in Trolley Square has become point central for Bryan and Andrea Sikora’s three Wilmington restaurants, which include La Fia Bistro and Merchant Bar. A large window facing Delaware Avenue has become the “takeout window.”

Employing Ingenuity

In Newark, Grain Craft Bar + Kitchen similarly turned a window into a drive-through service.

“Pretty much everything we’ve done has been a result of the staff just figuring things out,” says co-owner Lee Mikles. “The bartender suggested the handwritten thank-you notes in each order. We include a roll of toilet paper with some orders.”

Toilet paper aside, Grain might keep some of the new approaches, he says.


Delaware restaurant pivots covid-19Thompson Island Brewing Company, part of SoDel Concepts, used supplies on hand to make hand sanitizer, which the staff tucked into customer carryout bags. The brewery operation is not idle, however. Thanks to lobbying by the Delaware Restaurant Association, restaurants can sell beer, wine and cocktails, which traditionally make up a large part of their revenue. Many now offer half-priced bottles of wines. Iron Hill Brewery & Restaurant, which has three Delaware locations, began selling growlers of pre-batched Margaritas, along with growlers of beer.

Since alcohol cannot exceed 40 percent of the sales transactions, Grain developed family meals for $60. Family meals, which typically serve four, also have become a popular offering at restaurants like Corner Bistro in North Wilmington.

“We knew we could only sell so many duck meatballs or ahi tuna,” says co-owner Micky Donatello of the regular menu. “Parents are keeping their kids entertained. They don’t have time to go to the grocery store. We said: ‘Let’s do family meals at a reasonable price — something kids will eat.’”

Although Corner Bistro is known for its French-influenced food, Donatello began serving up foil pans of whole chicken, lasagna, chicken piccata, braciola and meatloaf dinners.

Takeout Market

Some restaurants have become neighborhood corner markets. In Milton, Good Morning Breakfast Nook sells fruit, vegetables — even toothpaste.  In Newark, Caffe Gelato’s new “Market Place” has an extensive list of raw meats, baked goods, produce, condiments, fresh pasta and seafood. Iron Hill’s “Craft Market” offers fresh produce, dairy products, meats, toilet paper and paper towels.

“All of these offerings allow us to keep people employed, help guests who are unable to or may not be comfortable with going to the grocery store and the people who regularly deliver food to our restaurants,” says Iron Hill CEO Kim Boerema.

Why go to all this effort? For one, it helps keep the lights on. For another, at least some staff remain employed.

H.E.L.P. and a Serving of Hope

In Delaware, the food service industry normally employs about 50,000 workers – approximately 10 percent of the state workforce, according to the National Restaurant Association. To help these workers, the State of Delaware launched the H.E.L.P. loan program for the restaurant industry and has since raised the cap for eligibility. In addition, Delaware Restaurant Association (DRA) started the Restaurant Industry Emergency Action Trust or E.A.T.s program to distribute individual $500 grants to industry employees.

“All of our restaurants are swimming in an ocean without a lot of lifeboats,” says Carrie Leishman, president and CEO of the DRA. “They’re doing what they can to stay afloat, keep their people employed and stay relevant in their communities — there’s no rulebook.”

People traditionally connect around food, and that connection is proving even more important in these times of physical distancing. Despite their own hardships, food service owners, operators and employees have been playing a vital role for their communities throughout the COVID-19 crisis. And community members have been responding by embracing the call to support their favorite eateries with takeout and delivery orders.

Donatello, the Corner Bistro co-owner, is grateful.

“It’s a gift that I am considered an essential worker,” he says. “I am truly grateful for the people supporting us. I’m overwhelmed.”

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To find out which restaurants offer carryout or delivery, visit Restaurants that Offer Takeout and Delivery on Facebook, Sussex County Carryout at RehobothFoodie.com or Businesses Where You Can #ShopLocalDE on the Delaware Division of Small Business website.

                                                                                                                                                                                                          

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Delaware Distilleries Solve Hand Sanitizer Shortage

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Delaware Distilleries Brewing Up Solution to Hand Sanitizer Shortage

How prepared the United States was to combat the sudden onset of COVID-19 is a matter of some debate. But, what’s beyond question is that businesses across the country have risen to the defense of their fellow Americans by pivoting production toward filling shortages of desperately needed supplies.

It’s been no different here in Delaware. One of the first industries to leap into the fray was Delaware distilleries. Though you can count them on one hand, Delaware’s distilleries have quickly retooled and are pumping out hand sanitizer to help combat the spread of the novel coronavirus. Interestingly, an activity that would have earned them a quick visit from a regulator back in non-crisis times has now become a crucial function.

Painted Stave Distilling – Hand Sanitizer for First Responders


“As distilleries, we’re not typically legally allowed to make hand sanitizer, but the Food and Drug Administration (FDA) and Alcohol and Tobacco Tax and Trade Bureau (TTB) loosened up their regulations so we could help fill this need that is in our communities right now,” said Smyrna’s Painted Stave Distilling co-owner Mike Rasmussen. “They require us to use a formulation designed by the World Health Organization that can be made anywhere in the world in emergency situations.”

A mix of ethanol, water, glycerin and hydrogen peroxide, the product ends up being around 80% alcohol to ensure it’s strong enough to kill viruses on contact, said Rasmussen.

With the goal of supplying local first responders, fellow distillery owner Ron Gomes said they felt a strong motivation to use their technical know-how and facility to help.

“Mike and I got into business to help our community rise and prosper,” he said. “It’s natural for us, part of who we are, to want to help. We’ve been stepping up, with the support of our families and friends, since day one. We’ve invested and sacrificed too much in our community to stand by idly and watch it struggle and suffer.”

Delaware's Painted Stave Distillery hand sanitizer for first responders

By mid-April, they’d distributed roughly 1,650 gallons to essential agencies like police departments, firehouses and hospitals with another 1,300 gallons ready to push out. Not sure yet if they’ll make their hand sanitizer available to the public, they’re focusing on supplying crucial agencies for as long as that need exists. At present, that demand doesn’t seem to be going anywhere, said Gomes.

“We’ve received inquiries for 10- and 20-fold our current production,” he added.

EasySpeak Spirits – Quick Switch to Hand Sanitizer


Marissa Cordell, owner of EasySpeak Spirits in Milford, had a personal reason for starting to produce hand sanitizer in early March.

“My father-in-law was in the hospital, and they couldn’t find hand sanitizer anywhere, so we decided to make some for him,” she said.

Cordell quickly learned that there was a nationwide need. She halted production on everything her distillery was making and switched over to hand sanitizer.

“We’ve had to use our small-batch alcohol that typically sells at our bar and liquor stores as craft spirits for hand sanitizer,” she said. “Staff has been working around the clock. We’re also using all of our fermenter space and all of our still time for this instead of making our bourbon, vodka, rum and gin.”

Focusing on production, Cordell says anyone who needs hand sanitizer can come to the distillery and pick it up curbside.

“Our customers are everyone in the state of Delaware – Beebe Healthcare, the Amazon distribution facility, healthcare businesses and construction companies – you name it, we’ve made them hand sanitizer,” she said. “We currently only have smaller sizes available, but they change weekly due to extreme shortages in packages. Our recent packaging has been 6-ounce spray bottles for $6.”

Beach Time Distilling and Dogfish Head Brewery Sanitizer Efforts


Further downstate, both Beach Time Distilling in Lewes and the mammoth Dogfish Head Brewery in Milton are no exceptions.

Beach Time Distilling has been producing hand sanitizer for postal workers and first responders and delivering them in 1-gallon cans. Dogfish Head is working directly with the state to deliver bulk supplies of sanitizer.

“I never thought Dogfish Head would be in the sanitizer business,” said Sam Calagione, found of Dogfish Head, in a press release. “But this is a time of crisis, and necessity is the mother of invention. It is our duty to do what we can to keep as many people safe and healthy in our community.”

The brewery noted it is selling sanitizer directly to the state at market rates with 100 percent of the profits going into a fund to support Delawareans affected by COVID-19.

Speaking for all businesses, Cordell said she’s been happy to help – especially since everyone has a stake in the outcome.

“It’s times like these that it’s important for our community to remember that we’re all in this together,” she said. “And, we all need a shoulder to lean on.”

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An SBA District Office Director’s Perspective on COVID-19

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An SBA District Office Director’s Perspective

Small Business Owners Shouldn’t Give Up During COVID-19


The entire business landscape has been disrupted by the COVID-19 pandemic, and small business owners – who are the backbone of business in America – are among the hardest hit by the crisis.  Part of DPP’s job is to work closely with the Division of Small Business and economic development partners throughout the state to ensure that businesses in Delaware are connected to the resources they need to thrive. DPP asked John F. Fleming, district director of the Delaware District Office of the U.S. Small Business Administration (SBA), for his perspective and advice to businesses as they adapt to the consequences of living in a COVID-19 world.

Fleming is passionate about small business in America and has dedicated his career to helping small businesses thrive. Prior to his current role, he was deputy district director, lead business development specialist, chief credit officer, marketing specialist and public information officer for the SBA’s Delaware District Office. He also has been a senior federal policy advisor for the White House Strong Cities, Strong Communities initiative and was a non-commissioned officer in the United States Marine Corps.

Fleming, whose wife is a small business owner with a coffee shop/convenience store in Maryland, recently spoke with DPP by telephone to provide his perspective on the COVID-19 crisis and the support available to small businesses. His main message? That small business owners shouldn’t give up – there are many resources available and plenty of personnel to help.

DPP: What exactly does the SBA Delaware District Office do?

JF: SBA is a federal agency that helps small businesses start, grow and succeed through a variety of programs – usually lending, contracting or technical assistance. We have a fourth area, which is very prominent right now, which is disaster assistance. Locally, we’re more of a marketing and outreach operation. We help people learn about SBA programs and how to navigate them.

DPP: What role is SBA playing right now, during the COVID-19 crisis?

JF: Our role really has become 100 disaster-related. We do everything from webinars to helping individuals with the loan application website for the Paycheck Protection Program of the CARES Act. We’re also doing public outreach – two to three interviews a day with radio, TV, print – getting information from our headquarters and passing that on to Delaware small businesses. And I see SBA as having an even bigger impact in the coming months and maybe even years to help small businesses recover from this.

DPP: What kind of numbers are you seeing for the CARES Act?

JF: The latest numbers we have in Delaware are about 2,000 loans for almost $600 million under the Paycheck Protection Program, and nationwide there have been over a million applications up to the $349 billion limit. The SBA Administrator and the Treasury Secretary have urged Congress to put more money into the program.

DPP: Along with information on how to navigate the CARES Act loan process, how else are you helping small business owners?

JF: We’re giving advice on timing, when to apply and how to use the money properly. What to expect. Although we’ve hit the $349 billion limit, we do fully expect to be funded again very shortly. Don’t stop what you’re doing in terms of the loan application. You’ll still want to work with your lender, and you’ll want to get that application on your desk ready to go. That way, when the money gets turned back on, the lender will be able to process your application immediately.

DPP: So the message is not to give up.

JF: Don’t give up. Hang in there as best you can. More money is coming, and we’re going to do everything we can to try to help you recover. Keep reaching out to SBA, because we may have other programs that could help you. For example, part of the CARES Act pays six months of payments for everyone who already has a regular SBA loan or is a new borrower by September 30. And it’s not a deferment – it’s a grant for six months. It’s a huge benefit, and there’s no additional paperwork for existing borrowers. The lenders just get notified.

DPP: Any other advice?

JF: Don’t fall for the scams that are out there. Don’t give out personal information, especially to a dot-com website. We’re a dot-gov website, and legitimate CARES Act emails will come from a dot-gov email. Don’t listen to rumors or what you’ve heard from someone else – go right to the material and read it yourself. The facts are on the Department of Treasury website, with FAQs and the law itself. It’s very good material, and it clears up a lot of confusion.

DPP: In addition to SBA, where else can small businesses turn to for help?

JF: If people need advice on how to run their businesses, I always recommend that they reach out to our resource partners: the Small Business Development Center at the University of Delaware, the Women’s Business Center in Wilmington and the volunteer organization called SCORE. All three of these can help quite a bit with guidance through the whole business process. We also have been referring a lot of folks to the Delaware Division of Small Business, both during the COVID-19 disaster as well as in pre-disaster times.

DPP: How is the COVID-19 crisis affecting your work on an individual basis?

JF: My day is emails and interviews, calls and webinars all day. And then, at night, I’m doing emails and texts. Sometimes I’m done at midnight, and sometimes I’m done at 2 in the morning. I get asked sometimes, “Why did you email me at 4 a.m.?” and I say, “Well, because that’s when I woke up.” I’m just here to help small businesses as much as I can.

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