Buffalo, N.Y. (WBEN) - Monday was a milestone day for Western and Central New York, as U.S. Senator Chuck Schumer was in town to announce the Buffalo-Rochester-Syracuse region has been designated as a prestigious federal "Tech Hub".
What this announcement means for the region, plain and simple, is it attracts new tech businesses to the area.
"We have the good resources, but no one ever paid attention. They would just look at Los Angeles and San Francisco and New York. Now that we are a Tech Hub and doing one of the best of any of the Tech Hubs, the companies look here," said Sen. Schumer during a press event Monday at Buffalo Manufacturing Works along Northland Avenue. "How did Micron pick Syracuse, New York? We spent a lot of time convincing them. At first, they didn't want to look at Syracuse. It took me a lot of work to say, 'Just come.' And once they come and look, they see that we are cheaper, our labor force is not as expensive as some other places, and a nice, good thing about the Western New York workforce is they stick with us."
Schumer says starting as soon as Tuesday, new tech companies that are looking for a place to locate can look right to Western New York because of the special designation. He adds it's going to have huge benefits for the region.
"Getting the designation as one of 31 Tech Hubs in the U.S. really means that we're being validated, that our community has the talent, the innovation, and the manufacturing base to significantly become a leader in innovation, technology and job growth," said Christina Orsi, President of the John R. Oishei Foundation. "You think about the well knowns [like] Silicon Valley and Boston as major Tech Hubs, this is what we're talking about. Us becoming one of those next leading Tech Hubs, building off of the amazing capabilities we already have in our community."
Related
Many of those who advocated for this designation as part of Schumer's CHIPS and Science Act felt it was imperative for Buffalo, Rochester and Syracuse to come together as one to receive this distinction rather than trying to go at this separately.
"We really came together because we recognized we're stronger together," Orsi said. "But when you look across that, we have unparalleled universities putting out all kinds of incredible talent. We have research and innovation, we have a growing entrepreneur community, and we still have a really strong manufacturing base. What this provides is the opportunity for the next generation of manufacturing, clean technology manufacturing and many suppliers who could now play a role in creating the next generation of CHIPS right here in Western New York."
So with the region now holding the designation as a "Tech Hub" across the U.S., what is the next step of this process?
The NY SMART I-Corridor Tech Hub proposal will now be able to compete for the next phase of the Tech Hubs Program that will invest between $50 and $75 million in each of 5-to-10 designated Hubs. That will be a separate application process from the original designation process, to get funding from the federal government.
"Those would help fund investments to enable us to, again, continue to scale the workforce training and the skilled programs that would be needed to have the workforce for the Tech Hub, to continue to start supporting supply chain and companies both growing here already, who could be suppliers to that industry," Orsi explained. "Competing for some investment will be next, but also, frankly, starting to promote ourselves as a leading Tech Hub to begin both attracting companies, industry, and talent to our region."
While the top 5-10 Tech Hubs will be selected as the recipients of the top dollars available from this bill, Sen. Schumer is confident Buffalo-Rochester-Syracuse has one of the strongest applications there is, and that the region will be getting some of the top money available.
"I'm counting on the money coming through, and I will use my clout as Majority Leader and as author of this bill, with the help of [Rep.] Brian [Higgins], Sen. [Kirsten] Gillibrand and everybody else in our delegation to get it," Schumer said. "But even if it doesn't come through, the fact that we're a Tech Hub is going to help businesses locate here. That's very important, too. It's a one-two punch: It's the money we need to fill in all the gaps that we don't have filled, but it's also when you say, 'This is one of the Tech Hubs,' we are one of the best. And frankly, I wrote this law with Western New York in mind."
The CHIPS and Science Bill included a $10 billion authorization for the Tech Hubs program – meaning that designated Tech Hubs will be able to compete for significantly more investment based off future funding levels.
But does the region need to win the most money available to make the cause all worthwhile? Does it mean anything if Buffalo-Rochester-Syracuse doesn't get that top dollar amount?
"The money will help us accelerate some of the key investments quicker, but even if we don't get it, just the designation and sort of the cachet and the reputation that comes from that will still be very beneficial to attracting talent, and more innovation and industry to our community," Orsi said.
However, with tying in Buffalo, Rochester and Syracuse to the bid, Orsi does believe it makes the region that much more compelling for the federal government to pick the area as a top recipient of money with this bill.
"Often, we just look at our metro areas and we've competed, but when you do look at other metro areas, whether it's Silicon Valley or Boston, a two-hour drive is their commute. Two hours between Buffalo and Syracuse. So when we came together and you start to stack up, collectively, our strengths and assets, it was very compelling," Orsi said.
And what role will Buffalo Manufacturing Works and the Northland Workforce Training Center play in this opportunity as a Tech Hub going forward?
"Certainly, they're already doing a lot of skilled training. A lot of these jobs are high-skilled training, and Buffalo Manufacturing Works also works with existing manufacturers to help them innovate," Orsi explained. "It's a great opportunity for existing manufacturers who might not be a supplier in the semiconductor industry to, potentially, innovate themselves to become a part of the supply chain."