state of the region: transition by cooperation

State of the Region:Transition by Cooperation

John D. Chaffee

President & CEO

NCPED

North Carolina Partnership for Economic

Development

Statewide Consistency, Regional Flexibility

CharlotteAdvantage West

Piedmont Triad Research

Triangle

Southeast

Northeast

Eastern

• NCER created in 1993 by NC Legislature in response to creation of GTP: self-selected members

• A regional municipality – consisting of 13 counties

• $15 million from license plate fee to create revolving loan fund for member counties (15% for operations)

• One-time state appropriation of $7.5 million for loan fund allocated equally among member counties

• Annual state appropriation for marketing (plus loan revenues and other sources that support operations)

NCER Origin and Finances

Development Commission Board – 19 members

• One appointee per county (by County Commissioners) – 13 members

• Two each Appointees from the office of:

– Governor– Speaker of the House– Senate President Pro Tempore

NCER Governance

New Business StartsNew Business Starts

Employment in Small FirmsEmployment in Small Firms

‘Federal legislation (2003) changed effect ofNAFTA/CAFTA from job losses of 5,000/year to25,000/year in our textile/apparel industry as a resultof a surge in imports from SE Asia’

Trade agreements may be good for US trade butcreated problems for North Carolina and NCER

Challenges: global & national situation – the economic slump and federal actions

Closures & Mass LayoffsClosures & Mass Layoffs

NashNashEdgecomEdgecom

bebe

WilsoWilsonn

WaynWaynee

GreeGreenene

PittPitt

DupliDuplinn

LenoiLenoirr

CraveCravenn

JonesJones

OnslowOnslow

PamlicPamlicoo

CarterCarteretet

2007 NCER 2007 NCER Unemployment RateUnemployment Rate

7-7.97-7.9

8-8.98-8.9

9-9.99-9.9

10 +10 +

4-4-

4.94.9

5-5-

5.95.9

6-6-

6.96.9


bebe

WilsoWilsonn

WaynWaynee

GreeGreenene

PittPitt

DupliDuplinn

LenoiLenoirr

CraveCravenn

JonesJones

OnslowOnslow

PamlicPamlicoo

CarterCarteretet


7-7.97-7.9

8-8.98-8.9

9-9.99-9.9

10 +10 +

4-4-

4.94.9

5-5-

5.95.9

6-6-

6.96.9


7-7.97-7.9

8-8.98-8.9

9-9.99-9.9

10 +10 +

4-4-

4.94.9

5-5-

5.95.9

6-6-

6.96.9

NashNashEdgecombEdgecomb

ee

WilsoWilsonn

WaynWaynee

GreeGreenene

PittPitt

DupliDuplinn

LenoiLenoirr

CraveCravenn

JonesJones

OnslowOnslow

PamlicoPamlico

CarterCarteretet


7-7.97-7.9

8-8.98-8.9

9-9.99-9.9

10 +10 +

4-4-

4.94.9

5-5-

5.95.9

6-6-

6.96.9


ee

WilsoWilsonn

WaynWaynee

GreeGreenene

PittPitt

DupliDuplinn

LenoiLenoirr

CraveCravenn

JonesJones

OnslowOnslow

PamlicoPamlico

CarterCarteretet

Obviously unemployment has fluctuated since the Great Recession then seemed to improve in 2010 but has actually drifted upward over the past year…

So, what’s happened over the last twelve months?

Feb 2011 NCER Unemployment Feb 2011 NCER Unemployment RateRate

7-7.97-7.9

8-8.98-8.9

9-9.99-9.9

10 +10 +

4-4-

4.94.9

5-5-

5.95.9

6-6-

6.96.9


ee

WilsoWilsonn

WaynWaynee

GreeGreenene

PittPitt

DupliDuplinn

LenoiLenoirr

CraveCravenn

JonesJones

OnslowOnslow

PamlicPamlicoo

CarterCarteretet

April 2011 NCER April 2011 NCER Unemployment RateUnemployment Rate

7-7.97-7.9

8-8.98-8.9

9-9.99-9.9

10 +10 +

4-4-

4.94.9

5-5-

5.95.9

6-6-

6.96.9


ee

WilsoWilsonn

WaynWaynee

GreeGreenene

PittPitt

DupliDuplinn

LenoiLenoirr

CraveCravenn

JonesJones

OnslowOnslow

PamlicPamlicoo

CarterCarteretet

June 2011 NCER June 2011 NCER Unemployment RateUnemployment Rate

7-7.97-7.9

8-8.98-8.9

9-9.99-9.9

10 +10 +

4-4-

4.94.9

5-5-

5.95.9

6-6-

6.96.9


ee

WilsoWilsonn

WaynWaynee

GreeGreenene

PittPitt

DupliDuplinn

LenoiLenoirr

CraveCravenn

JonesJones

OnslowOnslow

PamlicPamlicoo

CarterCarteretet

August 2011 NCER August 2011 NCER Unemployment RateUnemployment Rate

7-7.97-7.9

8-8.98-8.9

9-9.99-9.9

10 +10 +

4-4-

4.94.9

5-5-

5.95.9

6-6-

6.96.9


ee

WilsoWilsonn

WaynWaynee

GreeGreenene

PittPitt

DupliDuplinn

LenoiLenoirr

CraveCravenn

JonesJones

OnslowOnslow

PamlicPamlicoo

CarterCarteretet

Oct 2011 NCER Unemployment Oct 2011 NCER Unemployment RateRate

7-7.97-7.9

8-8.98-8.9

9-9.99-9.9

10 +10 +

4-4-

4.94.9

5-5-

5.95.9

6-6-

6.96.9


ee

WilsoWilsonn

WaynWaynee

GreeGreenene

PittPitt

DupliDuplinn

LenoiLenoirr

CraveCravenn

JonesJones

OnslowOnslow

PamlicoPamlico

CarterCarteretet

Dec 2011 NCER Unemployment Dec 2011 NCER Unemployment RateRate

7-7.97-7.9

8-8.98-8.9

9-9.99-9.9

10 +10 +

4-4-

4.94.9

5-5-

5.95.9

6-6-

6.96.9


ee

WilsoWilsonn

WaynWaynee

GreeGreenene

PittPitt

DupliDuplinn

LenoiLenoirr

CraveCravenn

JonesJones

OnslowOnslow

PamlicPamlicoo

CarterCarteretet

• While private sector job growth continued during the latter half of the year, only Wayne/Greene saw declines in unemployment rates…

• Public sector job losses were a drag on economy with elimination of state/local government jobs

• Announced expansions as well as new company locations have not had much impact…yet…the impact of new primary job creation usually lags

• New developments will have an impact on success

So…we began to see improvement…

People Living in PovertyPeople Living in Poverty

Travel & Tourism ExpendituresTravel & Tourism Expenditures

• 3 eastern NC advanced concept (Hanbury Preservation & associates) to conduct feasibility study (GLF funding)

• Inventoried 100+ heritage assets in 40 counties

• Invited Coast Host TDAs to participate in study• Conducted 6 public meetings

• 3 subregions & 3 themes (Settling a New World, Living with Land & Water, and Defense of a Nation)

National Heritage Area designation

National Heritage Area Subregions

Where we succeeded:

• MBCOI – 5 universities, federal lab, ED agencies unite: $2.5 mil from NCBC for commercialization

• Workforce Development: all counties, CCs and WDBs under ASPIRE with statewide recognition

• NCER now leads all regions with # and % of CRCs – 4 counties among top 10 – will become a marketing advantage for NCER & our counties

2011: Transition through cooperation

NORTH CAROLINA (TOP 10 COUNTIES) Through December 2011

TOP 10 Counties in North Carolina – CRCs Awarded

COUNTY Bronze Silver Gold Total

Wayne2,107 4,876 1,357 8,340

Robeson1,378 3,011 677 5,066

Guilford1,160 2,572 947 4,679

Rowan623 2,054 885 3,562

Gaston773 1,964 695 3,432

Lenoir958 1,830 402 3,190

Pitt721 1,613 652 2,986

Randolph529 1,424 519 2,472

Edgecombe803 1,320 342 2,465

Cleveland501 1,489 473 2,463

North Carolina Career Readiness Certificates Awarded

• NCER chosen for regional pilot WorkReady Communities (key support – ECWDB & CCs) and received $130,000 from Rural Center

• STEM East – received $350,000 (Golden LEAF) for demonstration project with 4 school districts (CCs and key employers) - intent to spread network

Where we succeeded

• Goldsboro/Wayne County (Wayne/Lenoir CCs) recognized by AAR as ‘Best Practices’ for requiring CRCs for HS grads AND developing mid-level skills training in 90 days vs. 2 years

• Rocky Mount Metro – Top Small Metros in South by Southern Business & Development magazine

• Greenville - Top 10 FDI ‘American City of the Future’ (economic potential & human resources)

Where we succeeded

• Failed to close on a couple of significant projects

• Many expansions (confidence), few new projects

• Several key projects lingered (but remain active)

• Need to showcase entrepreneurial success and what services our partners can provide

• Educational progress, struggling in some measures

Where we fell short

SAT ScoresSAT Scores

• ‘World is watching’ how we respond to labor needs of employers, especially STEM jobs

• So far – favorable reports by several firms: aerospace (Spirit & AAR on record with positive comments) and life science sectors (Metrics openly stated successful with scientific talent)

• Making progress in important categories

We are making progress in other areas

Educational Requirements for U.S. Jobs 1973-2018

Source: Center on Education and the Workforce, Dec 2009

Educational AttainmentEducational Attainment

Community College EnrollmentCommunity College Enrollment

ECU Engineering GraduatesECU Engineering Graduates

Per Capita IncomePer Capita Income

Central Sub-Region• Sanderson Farms (Lenoir)• Smithfield Foods (Lenoir)• The Pork Company (Duplin)• AAR (Wayne) – 100 jobs• Spirit AeroSystems-Gulfstream Package (Lenoir) – 150+ jobs• West Pharmaceutical Services (Lenoir) • Pioneer Hi-Bred R&D facility (Lenoir) - 10 jobs• Cooper Standard Automotive (Wayne) - 137 jobs

Coastal Sub-Region• MBCOI to catalyze marine science sector (Carteret)• Multiple plant expansions (Onslow)

Regional Job Growth

Pitt Sub-Region• Pioneer Surgical Orthobiologics – 10 jobs• Confidential Records Management• The Roberts Company - 29 Jobs (exp)• Vidant Health Children’s Hospital – 200+• VA Medical Clinic – broke ground – 150 jobs

North Sub-Region• BD (Becton, Dickinson and Company) (Wilson)• Superior Essex (Edgecombe) – 166 jobs• QVC, Inc (Edgecombe) –expanded 500 jobs (Delayed until 2012)• Keihin Carolina Systems Technology (Edgecombe) - 50 jobs• Tobacco Rag Processors, Inc. (Wilson) -29 jobs

Regional Job Growth

With continued support from our partners and a willingness to embrace innovative solutions, NCER will continue to make progress.

• Greene County is borrowing from NCER at 3.5% and making loans to small businesses at 4.5% to address financing issues and preserve/create jobs

• Pitt County continues to invest in Technology Enterprise Center to accommodate emerging life science companies

• Lenoir County borrowed NCER funds to expand industrial park infrastructure to serve new/expanding companies

Making Progress

John D. ChaffeePresident and CEO

North Carolina’s Eastern Region3802 Hwy. 58 NorthKinston, NC 28504

[email protected]

www.nceast.org

Questions?

Prospect Missions & Events YTD 2011

Current Projects by Cluster

Nonwoven goods3,849

Pharmaceuticals & biological products

4,353

Packaged foods3,377

Motor vehicle MFG2,334

Household appliances2,044

Chemical products1,653

Crop farming1,208

Hospitality & travel3,802

Building products622

Distribution & Logistics3,763

Meat processing6,859

Fabricatedmetal products

2,166

Tobacco product MFG2,249

Military#80,460

Boat building770

Aerospace & Defense products#

11,815

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0

Ave

rage

Wag

e (2

011)

Relative Concentration (2011)Source: Feser Clusters, EMSI

Red=At-Risk ClustersGreen=Stable ClustersBlue=Emerging Clusters*Aerospace and Defense products wage is North Carolina Average Wage**Regional military numbers from bases; National numbers from US BEA (2009)#FRC East employment is included in both the Military and Aerospace & Defense products clusters

Clusters shown in next graphic

NCERAverage Wage=$41,949Source: EMSI

42.0

NCER Clusters

state of the region: transition by cooperation

Documents

loan revenues

revolving loan fund

year to25

economic slump

county commissioners

job losses

small firmsfederal legislation

global national situation