Economic Development Update Presented to the North Carolina General Assembly

North Carolina Department of Commerce

THANK YOU!

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ECONOMIC DEVELOPMENT TOOLS

• Job Development Investment Grant• One North Carolina Fund• One North Carolina Small Business Fund• Green Business Fund• Site Infrastructure Grant Fund• Job Maintenance & Capital Development Fund• Tax Credits

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MISSION:

To improve the economic well-being and quality of life for all North Carolinians by:

• Serving existing business & industry • Recruiting new jobs & domestic & foreign investment • Encouraging entrepreneurship and innovation • Marketing North Carolina and its brand • Supporting workforce development• Strengthening communities• Promoting tourism, film and sports development

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HOW COMMERCE CREATES JOBS

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ECONOMIC DEVELOPMENT PARTNERS

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WHY CHOOSE NORTH CAROLINA?

North Carolina has the best business climate in America.

Our secret is simple.

When people thrive, business thrives.

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“North Carolina …and a handful of other states are leading the nation's crawl out of the worst recession since the 1930s” September 21, 2010

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BUSINESSES:Attracting New Companies

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Growing & Attracting Companies & Jobs

Projects Assigned 2% (412 vs. 404)

Projects Announced 5% (133 vs. 127)

Jobs Announced 11% (15,217 vs. 13,676)

Capital Investment Announced

11% ($3.1B vs. $2.8B)

Direct Account Interactions

20% (1,466 vs. 1,221)

2010 vs. 2009 Year-to-Date

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DATA-DRIVEN ECONOMIC DEVELOPMENT

• Return on Investment Assessment• Cost- Benefit Analysis• Identify job growth opportunities for the future

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BUSINESSES:Growing Existing Businesses

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GLOBAL EXPORTS IMPACT NORTH CAROLINA

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NORTH CAROLINA PORTS

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GROWING SMALL BUSINESS

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GROWING SMALL BUSINESS

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• Federally funded business retention program focusing on outreach to small and medium sized companies to retain and grow jobs

• A partnership between Business & Industry, Business Link North Carolina, Workforce & Small Business Technology and Development Center

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TOURISM INDUSTRY

Visitors

• Spent $15.6 Billion

• Generated 183,800 Direct Jobs

• Created $1.35 Billion in State & Local Taxes

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EQUIPPING OUR WORKFORCE

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EQUIPPING OUR WORKFORCE

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EFFECTS of COMPETITION

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• Businesses

– Growing & Attracting Companies– Attracting Visitors – Encouraging Innovation, Entrepreneurship, &

Small Business• Citizens

– Developing North Carolina’s Workforce

• Communities

– Building Strong Communities

• Data-Driven Economic Development

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BUSINESSES:Growing & Attracting

Companies

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BUSINESSES:Growing & Attracting CompaniesCommerce• Serves as a Primary Point of Contact for Companies• Facilitates Expansion Projects – Work confidentially and closely

with local economic developers and company representatives• Helps Companies Expand Exports and Move into New Markets

– Exports support 347,000 jobs in NC and contribute $30.5 Billion to the state’s economy

• Supports the Engagement, Coordination and Collaboration among the leading State-Funded Business Assistance Resources – Commerce, Universities, Community Colleges and Non-profits

• Supports Special Programs and Feedback for Policy Development– Responsible for periodic crisis management outreach to North Carolina businesses, and can provide valuable feedback that can be used for policy development

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BUSINESSES:Growing & Attracting Companies• Generate inquiries from companies and business consultants• Convert inquiries to qualified leads and convert leads to active

projects• Provide facility location services including building/site

recommendations, business cost analysis, labor market information, infrastructure evaluation and review of discretionary programs

• Leverage state resources• Engage economic development partners• Utilize research to guide marketing messaging and investments• Benchmark best practices• Measure effectiveness and report outcomes

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BUSINESSES:Growing & Attracting Companies

WESTERN REGION

[Boone Office]206 Southgate DriveSuite 21-EBoone, NC 28607

[Bryson City Office]60 Almond School RoadRoom 117Bryson City, NC 28713

[Fletcher Office]134 Wright Brothers WayFletcher, NC 28732

CHARLOTTE REGION

8430 University Executive Park DriveSuite 645Charlotte, NC 28262

RESEARCH TRIANGLE REGION

301 North Wilmington StreetRaleigh, NC 27601

EASTERN REGION

1604 East Fire Tower RoadSuite DGreenville, NC 27834

NORTHEASTERN REGION

119 West Water StreetEdenton, NC 27932

PIEDMONT TRIAD REGION

416 Gallimore Dairy RoadSuite JGreensboro, NC 27409

SOUTHEASTERN REGION

225 Green StreetSystel BuildingSuite 802Fayetteville, NC 28301

Commerce Regional Offices

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Growing & Attracting Companies & Jobs

Projects Assigned 2% (412 vs. 404)

Projects Announced 5% (133 vs. 127)

Jobs Announced 11% (15,217 vs. 13,676)

Capital Investment Announced

11% ($3.1B vs. $2.8B)

Direct Account Interactions

20% (1,466 vs. 1,221)

2010 vs. 2009 Year-to-Date

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NORTH CAROLINAGlobal Representatives

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BUSINESSES:Growing & Attracting CompaniesCommerce uses the following tools:• Job Development Investment Grant (JDIG) –

Performance-based, 10,763 jobs and $2 billion in investment since January 2009

• One North Carolina Fund – Performance-based, 14,313 jobs and $2.4 billion in investment since January 2009

• Industrial Development Fund, Utility Account, and Community Development Block Grants –Infrastructure improvements

• Industrial Revenue Bonds – Flexible financing for businesses

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BUSINESSES: Growing & Attracting CompaniesThe American Recovery and Reinvestment Act of 2009

Federal Recovery Zone Bond Program

North Carolina has accessed more than 85% of the $1 Billion allocation available, compared to the national average of 25-40%• $450 M Facility Bonds – Enabled business expansion

– Retail, Manufacturing, and Industrial Parks• $418 M Economic Development Bonds – Supported

local government infrastructure development– Coliseum, Recreation Facilities, Medical Center,

and Parking Decks• Job data yet to be determined because projects

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BUSINESSES:Attracting Visitors

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• Develops and supports the 40,000 small businesses that make up the Tourism industry - offers advertising, marketing, development, welcome centers, and industry relations

• Recruits films and supports North Carolina’s growing wine and grape industry

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In 2009, Visitors to North Carolina:

• $15.6 billion in visitor spending• 183,800 direct jobs• $3.91 billion in payroll• $841.3 million in state taxes• $509.9 million in local taxes• $43 million daily expenditures• $2.3 million in state tax revenue daily• Saves each NC household $360 in state and local taxes

annually

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BUSINESSES:Encouraging Innovation,

Entrepreneurship & Small Business

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• Grows innovative small businesses to create jobs and investment by leveraging federal funds

• Pursues private sector investment for job creation in alternative energy

• Sustains local jobs by awarding $276 million in federal recovery funds for energy

BUSINESSES:Encouraging Innovation, Entrepreneurship & Small Businesses

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Tools for Small Businesses include:

• One NC Small Business – Grants for emerging technology to grow small businesses

• NC Green Business Fund – Grants for innovative green technologies to expand small businesses


The Office of the Small Business Commissioner:

• Created by the Governor to serve small businesses in a more efficient and seamless manner

• Developed and implemented new initiatives to retain and grow jobs –

BIZ BOOST and Capital Access Network

• Increased public awareness of small and existing business resources and access to these resources through workshops, training seminars, and Business Link North Carolina


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Statewide counseling, training & information services provide significant outcomes & impact (2010 YTD):

• 8,304 jobs created or retained

• $5.26 in new tax revenue for each $1 of cost

• over 37,000 Business Link North Carolina phone calls & website visits

• 4,143 management education events

• 65,491 event attendees

• 12,130 clients counseled


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CITIZENS:Developing North

Carolina’s Workforce

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• Supports the training of existing and emerging workers, dislocated workers and economically disadvantaged citizens

• Provides worker training to small businesses• Entrepreneurial training for dislocated workers

CITIZENS:Developing North Carolina’s Workforce

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CITIZENS:Developing North Carolina’s Workforce

• 100% federally funded through the US Department of Labor

• Annual funds determined by formula (based on economic conditions) that have ranged from $50 million to $97 million over the past 10 years

• On average, North Carolina flows 84% of total funds to the local level to support services to dislocated workers, adults and disadvantaged youth

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COMMUNITIES: Building Strong

Communities

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COMMUNITIES:Building Strong Communities

• Provides Community Development to North Carolina’s cities and counties – $45 million federal funds distributed, 261 local governments served, 1,143 jobs created and 200 businesses started

• Supports small business and entrepreneurial development, infrastructure, and tourism –Leveraged $14 million during 2007-2009

• Supports 29 North Carolina counties through the Appalachian Regional Commission –funded 26 projects at $4.98 million in 2010

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DATA-DRIVEN ECONOMIC

DEVELOPMENT

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USE DATA-DRIVEN APPROACH to ECONOMIC DEVELOPMENT

• Sets Direction for North Carolina’s Economic Development• Supports Entire Commerce Team and Related

Commissions to Enable Job Creation• Estimates Costs & Benefits to the State for Prospective

Companies• Provides information to businesses of all sizes on North

Carolina’s communities, workforce, market opportunities and business costs

• Analyzes North Carolina’s competition• Identifies job growth opportunities for the future• Transparently communicates information to the General

Assembly and the public

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Education

Economic Development Update Presented to the North Carolina General Assembly