The U.S. is undergoing a major industrial revival, shifting power from "superstar cities" to regions with strong manufacturing bases. Driven by the need to remilitarize, reshore, and decarbonize, this transition has resulted in over $1.4 trillion in public and private investments in sectors like clean energy, semiconductors, and electric vehicles (EVs) as of September 2024.

In light of this, our analysis focuses on the distribution of high-value Department of Defense (DoD) contracts across U.S. metropolitan areas. We examined contracts exceeding $500 million, along with modifications that increased their value above this threshold between 2021 and 2024.

Maryland's public procurement economy accounts for 17.5% of its GDP, totaling over $68 billion annually, with significant spending in high-wage sectors like IT and professional services. However, around 40% of in-state procurement spending goes to out-of-state firms. Strategies are being developed to help local and diverse businesses access these opportunities, promoting inclusive growth.

The Maryland Procurement Playbook is an effort to strategically assess Maryland’s procurement ecosystem and promote growth for small and diverse firms. The Playbook, funded by the Abell Foundation, J.P. Morgan Chase, BGE, CareFirst, T. Rowe Price, The Annie E. Casey Foundation and Johns Hopkins, is the first assessment of federal, state, and local procurement activity in Maryland.

The U.S. energy transition, driven by federal investments, creates opportunities for cities to grow local green industries. Initiatives like El Paso's "Supply El Paso" aim to integrate local businesses into the clean energy supply chain.

As the United States faces escalating tensions across the globe, the modernization and transformation of our military has become an urgent concern. In response, the Department of Defense's budget has increased significantly in recent years.

The Procurement Playbook, developed with the Aspen Institute Latinos and Society, aims to streamline federal procurement processes to help small, local, and minority-owned businesses access opportunities. Applied in San Antonio and El Paso, it promotes economic inclusion and community development.

The Procurement Economy can grow Black- and Latino-owned businesses and reduce wealth gaps, but bureaucratic barriers and limited capital access hinder progress. Simplifying processes, fostering diversity, and investing in ecosystems can unlock its full potential for inclusive growth.

This municipal action guide provides a practical framework for understanding and supporting inclusive entrepreneurship, including specific examples and steps city leaders can take to improve racial and social equity, expand economic opportunity and participation, and build dynamic and resilient local economies.

The Small Business Administration (SBA) and federal government have made strides in promoting equity in procurement for minority-owned businesses, including setting a goal to increase spending with Small Disadvantaged Businesses (SDBs) by 50%. However, more is needed to diversify sectors and support growth in these businesses.

In collaboration with Accelerator for America, the Nowak Lab released a Federal Investment Guide to the American Rescue Plan (ARPA) in 2021, analyzing the $1.9 trillion COVID relief package. Our latest report, Localizing and Sequencing the American Rescue Plan Act, examines how ARPA funds have flowed to Philadelphia, estimating the city could receive over $9.2 billion across 60+ programs.

State and local collaboration is essential for effectively deploying ARPA funds, particularly the $350B State and Local Fiscal Relief Fund (SLFRF) and the $10B State Small Business Credit Initiative (SSBCI). Transparent allocation, coordination, and leveraging local networks can maximize impact, drive inclusive recovery, and ensure long-term economic resilience.

With support from the Irvine Foundation, this report proposes changes in historically underutilized business (HUB) procurement policy to close the nation’s racial wealth gap. With at least one large infrastructure measure at the federal level in the offing, the HUB Project provides specific, actionable recommendations to change our country’s paradigm to ensure that a generational investment in infrastructure is also a generational investment in small and minority owned businesses.

The Biden Administration unveiled new actions to address the widening racial wealth gap, with a focus on reducing discrimination in home appraisals and increasing federal procurement from small and disadvantaged businesses (DBEs) by 50%, or $100 billion, over five years. However, to truly close the wealth gap, substantial reforms are needed in the federal infrastructure procurement process. Current contracting practices disadvantage DBEs and must be overhauled through institutional reform, legislative action, and funding.

The Biden Administration should draw inspiration from Nordic cities like Copenhagen and Helsinki, which have pioneered climate solutions. Helsinki’s Smart & Clean initiative, formed in 2016, brings together businesses, universities, and government actors to tackle climate challenges through collaborative projects like the Closed Plastic Circle, which aims to reduce plastic emissions.

Setting clear goals, fostering multi-sector collaboration, and having city governments drive systemic change are crucial for expanding climate action efforts, and these insights can help other cities, including those in the U.S., scale up their initiatives.

The COVID-19 crisis has hurt small businesses, particularly Black- and Latino-owned ones. The "Big Ideas for Small Business" proposal urges federal action on procurement and data transparency to support these businesses. President Biden’s Executive Orders are a good start, but federal policy needs to learn from local and state successes in supplier diversity. By addressing procurement barriers and focusing on minority-owned businesses, the federal government can drive more inclusive economic growth.

Supplier diversity and equitable access to capital are essential for the growth of small businesses, especially those owned by people of color. Charisse Conanan Johnson of Next Street emphasizes the firm's role in driving inclusive economic growth through business development programs and strategic partnerships.

Black-owned businesses make up just 2.2% of employer firms, despite Black people being 14% of the population. Efforts like Netflix’s $100 million commitment focus on capital access, but procurement opportunities must also improve. Existing diversity programs lack transparency, and better data and metrics are needed.

Black-owned businesses in the U.S. are smaller and concentrated in states with larger Black populations. To support growth, states should prioritize contracts for minority-owned businesses, improve regulatory support, and build ecosystems to help these businesses thrive long-term.

Accelerator for America, the Nowak Metro Finance Lab, the Economic Innovation Group, and The Governance Project hosted the Opportunity Zone Investor Summit at Stanford, marking a key milestone.

Our new report, The Opportunity Zone Investment Prospectus: Early Observations & Next Steps, shared key observations, emphasizing collaboration across sectors, innovative financing, and data-driven strategies to drive inclusive growth.

Jeremy Nowak, a dedicated Philadelphia investor and advocate, passed away on July 28. His life focused on uplifting disadvantaged communities, and he co-authored "The New Localism" and helped establish the Nowak Metro Finance Lab at Drexel University.

Known for his intellect, humor, and candid nature, Jeremy uniquely combined strategic thinking with irreverence. His loss is deeply felt, but his legacy will continue through ongoing efforts to improve urban communities and foster collaboration, with a commitment to advancing the impactful initiatives they began together.