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From Don Kirkman, President & CEO, Piedmont Triad Partnership
Scaling Up to Compete Globally
Size matters in a global economy. Make no mistake, we live in a globally interconnected economy, and it will become increasingly so in the future. For many economic development projects, the competition is not with the community next door, but with the region halfway across the globe. This is particularly true when knowledge and talent are the primary drivers of a company’s site location decision.
Size is often used as a factor in site location evaluations, and increasingly it is also used as a filter by people deciding where they wish to live. This is particularly true of young, college-educated professionals who are drawn to larger metropolitan regions.
That is why the Federal Office of Management and Budget (OMB) did the Piedmont Triad no favor when it issued new standards defining metropolitan areas after the 2000 Census.
What had been the eight-county Greensboro/Winston-Salem/High Point Metropolitan Statistical Area (Alamance, Davidson, Davie, Forsyth, Guilford, Randolph, Stokes, Yadkin) with a population of more than one million, became three Metropolitan Statistical Areas and two Micropolitan Statistical Areas. These new categories describe urbanized areas with populations numbering between 10,000 and 50,000. According to the OMB’s new guidelines, the Piedmont Triad Region now includes the following subunits:
- Burlington Metropolitan Statistical Area (Alamance County—population 148,053)
- Greensboro-High Point Metropolitan Statistical Area ( Guilford, Randolph, Rockingham Counties—population 705,684)
- Winston-Salem Metropolitan Statistical Area ( Davie, Forsyth, Stokes, Yadkin Counties—population 468,124)
- Mt. Airy Micropolitan Statistical Area (Surry County—population 72,468)
- Thomasville-Lexington Micropolitan Area (Davidson County—population 158,166)
Although there is a Combined Statistical Area (CSA) designation that combines these subunits into the 10 county Greensboro/Winston-Salem/High Point Combined Statistical Area. The CSA designation has almost no utility in data dissemination, which relies almost entirely on MSA designations. Moreover, the OMB prevents the inclusion of a CSA into Metropolitan Statistical Area and Micropolitan Statistical Area rankings, meaning that the larger CSA consisting of Greensboro/Winston-Salem/High Point is not used when the Federal government releases MSA rankings, and therefore most third parties that rely on federal data and rankings do not consider the larger geographic unit either.
Because many public and private organizations publish data and rankings that are based on OMB’s standards, the 2000 standards/definitions have had much more than a theoretical impact on the Greensboro/Winston-Salem/High Point region. These adverse consequences include reduced reimbursements under MSA-based population formulas, and substantially lower rankings in many areas that have a significant negative impact on economic development and related activities. Instead of a region of approximately 1.3 or 1.5 million (depending on whether Micropolitan Statistical Areas are included), we have multiple smaller units, the largest of which is approximately 700,000 in population.
As the accompanying table indicates the Greensboro–High Point MSA is ranked 71 st in population; the Winston-Salem MSA is ranked 104 th and Burlington is ranked 262 nd. In contrast, if these three MSAs were combined the result would be the that the MSA would rank the 40 th largest MSA in the country with a population of 1,321,861.
Put another way, a combined Greensboro-High Point, Winston-Salem, and Burlington MSA would rank among Nashville (38), Milwaukee (39), Jacksonville (40) and Memphis (41) MSAs. Greensboro-High Point (71) currently ranks between McAllen-Edinburg-Mission, TX (70) and Akron, OH (72). Winston-Salem (104) currently ranks between Durham, NC (103) and Santa Rosa-Petaluma, CA (105), while Burlington (262) ranks between Madera, CA (261), and Wichita Falls, TX (263).
The OMB has solicited comments on the standards adopted after the 2000 Census in anticipation of the 2010 decennial census. We have submitted a letter expressing our concerns about the adverse impacts of the 2000 standards on polycentric regions such as the Piedmont Triad. It is our hope that new standards will be adopted that will allow the combination of proximate MSAs into larger units. If such changes are not made, however, the Piedmont Triad Region will need to undertake a higher level of marketing and branding in order to position the Piedmont Triad as a top-40 metro area with a population exceeding one million. Our economic competitiveness depends on it.
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Piedmont Triad has the Potential to Become a World Class
Center of Design
According to a plan commissioned by the Piedmont Triad Partnership, Creative Enterprises and the Arts can be a key source of future growth and new jobs – if Triad business, government and education leaders come together in a coordinated approach to grow the sector.
About 100 business, education, government leaders and media gathered at the Proximity Hotel in Greensboro on Feb. 26 to hear the recommendations of the strategic plan, which was developed by the Alliance for Creative Advantage and funded by PTP through a US Department of Labor WIRED grant.
L-R Don Kirkman, President and CEO Piedmont Triad Partnership; Linda A. Carlisle, Secretary, N.C. Department of Cultural Resources; J. Keith Crisco, Secretary N.C. Department of Commerce and Margaret Collins, Director Creative Enterprises, Piedmont Triad Partnership (Nyght Falcon Photography, 2009).
The Triad’s creative economy employs more than 28,000 people including occupations as diverse as architecture and computer gaming and as geographically widespread as traditional music in Mount Airy and pottery-making in Seagrove. This sector actually grew 14 percent between 2002 and 2007 -- a time when the overall economy has experienced little growth and traditional manufacturing declined.
The strategic plan outlines five main goals for growing the creative economy:
Goal I: Provide oversight, direction, and coordination to the Region’s creative
economy. A Piedmont Triad Creative Enterprise Council (PTCEC) should be formed to increase collaboration and cross-discipline cooperation among higher education institutions and industry and across city and county lines.
Goal II: Capitalize on the creative economy assets of the region’s educational
institutions, including strengthening connections among public schools, community colleges, and four-year colleges and universities; putting more emphasis on the arts in public schools; and offering more internships and apprenticeships for college students.
Goal III: Strengthen the business, marketing, and entrepreneurial capabilities of
creative enterprises, including expanding venture development for creative enterprises, funding for non-profits, and support for the film and digital media industries.
Goal IV: Advance the application of design as a source of competitive advantage for the region, including establishing a first-rate design school; assisting manufacturers in better utilizing art and design; and strengthening international connections.
Goal V: Promote packaging and branding of the region’s creative assets, including developing a distinctive regional branding and communications strategy and creating a web presence, portal and directory for the creative arts.
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PTP Services Help Companies Develop and Deploy New Technology
Triad companies needing assistance in bringing new technology to market, or searching the marketplace for existing technology to help them solve a business problem, can turn to the Piedmont Triad Partnership’s “business innovation” services for help. Through its “deployment” and “scouting” activities, PTP connects Triad businesses with resources that they might otherwise be unable to access outside of a university technology transfer program.
PTP’s technology deployment services touch every phase of the process, from helping a product’s inventors write proposals and product descriptions, to helping a company develop a prototype, test a product, and introduce it to the marketplace. PTP’s Inventors Workshop, held on March 24 and developed by Eureka ! Ranch International, helped participants learn to better describe and explain a new technology so that it appeals to potential customers and investors. The workshop was co-sponsored by the Industrial Extension Service (IES) of N.C. State University and through PTP.
Recently, PTP was also able to include two Piedmont Triad companies – New Life Plastic Recycling of Burlington and Cook Endoscopy of Winston-Salem – in a pilot program of the National Institute of Standards and Technology (NIST) and its Manufacturing Extension Partnership (MEP). The objective of the pilot is to develop and assess best practices for integrating technology transfer/transition and innovation into each WIRED region’s partnership networks. These best practices will be shared with the other U.S. Department of Labor Workforce Innovation in Regional Economic Development (WIRED) regions, as well as the entire MEP center system. The objective of the pilot is to develop and assess best practices for integrating technology transfer/transition and innovation into each U.S. Department of Labor Workforce Innovation in Regional Economic Development (WIRED) region’s partnership networks. These best practices will be shared with the other WIRED regions, as well as the entire MEP center system.
Regional Initiatives to Develop an Excellent Workforce
The Piedmont Triad Region is now emerging as a major player in a variety of industries requiring new skills in the workforce. In order to meet this demand, the region has instituted a number of strategies to leverage all of the region’s educational and training resources to transform and create a best-in-class workforce training system. The Piedmont Triad Partnership, utilizing federal government WIRED funds (Workforce Innovation in Regional Economic Development) is collaboratively building the capacity for training throughout our region through:
- Needs assessments, gap analyses and identification of training and development programs
- Curricula and program development
- Delivery of demand-driven workforce training and development programs and services
A recent Piedmont Triad workforce development project funded through a WIRED Transformation Grant is the “hybrid” nursing program at the Piedmont Community College campus in Caswell county. The program is designed to enable even working individuals to earn an associate degree in nursing through a combination of online courses, classroom time and hands-on work experience.
“With health care being such a high-demand field, it is important to do everything we can to help adults learn the right skills, and earn a degree, in a way that does not sacrifice educational quality but fits into their busy schedules with work and family responsibilities,” said Tess McMorrow Jordan, Regional Workforce Development Director for PTP. Piedmont Community College is also collaborating with Montgomery Community College in an effort to build capacity but prevent duplication in the nursing training programs, Jordan said.
Another workforce development-related project that was funded through a PTP Transformation Grant was the Maturity Works Job Fair held in the Piedmont Triad. A collaboration between the Northwest Piedmont Council of Governments’ (NWPCOG) Workforce Development Board and the Piedmont Area Agency on Aging (AAA), this innovative event targeted job-seekers 55 and older. More than 1600 mature workers participated in the event which far exceeded organizers' expectation of 400 participants.
In addition to offering assistance with career transition issues, Maturity Works also provided education and information to local employers about best practices for attracting and retaining the mature workforce. “When seniors are assisted in matching their skills to new jobs once again, they will be able to put money back into the economy. That’s a win-win situation for everyone,” said Mathew Dolge, Executive Director of NWPCOG. In addition to the WIRED grant, Maturity Works was supported by the Workforce Development Board, AAA and AARP. Additional grant resources are being sought to broaden the nature and scope of future events for this age group.
A well-trained and motivated workforce is a key element of the transformation of the Piedmont Triad Region.
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Foreign Trade Zone Status Helps Triad Companies Be More Competitive
In an economy where every decision can mean the difference between falling behind or inching ahead of competitors, more Triad businesses are inquiring about the advantages of doing business in the Foreign Trade Zone. As the grantee of Foreign Trade Zone #230, the Piedmont Triad Partnership is providing them with information and helping them through the application process.
FTZ #230 includes 16 sites spread throughout Alamance, Davidson, Davie, Forsyth, Guilford and Surry counties. Operating in a FTZ allows a company to save money by importing raw materials into its facility without paying customs duties. These duties may be deferred, reduced or eliminated, depending on the tarrifs involved and the company’s activities.
“Aside from the duty deferral advantages, the FTZ is an asset when marketing the region nationally and internationally,” said Penny Whiteheart, PTP Executive Vice President who leads the Triad’s FTZ efforts. “Many companies ask about the availability of an FTZ when they are evaluating an area. Having a Foreign Trade Zone in the Region demonstrates that the Piedmont Triad is supportive of business interests and that we have the infrastructure for international trade.”
In the first quarter of 2009, PTP staff has briefed nine companies and individuals on the advantages an FTZ could bring to their manufacturing and/or distribution operations. In addition to Whiteheart, Libby Brown, research manager and Dave Hauser, director of Logistics and Distribution are working with companies interested in pursuing zone services.
Diebold, Inc., a manufacturer of automated teller machines, is an example of a Triad company that is taking advantage of FTZ benefits. The company applied for, and has activated, two foreign trade zone sites – one in Lexington Business Center, where its manufacturing facility is located, and one at its distribution center in High Point. Banner Pharmacaps, Inc. of High Point, a producer of encapsulated pharmaceutical and nutritional products, recently completed the application process, has been approved and is now in the process of activating subzone status.
For more information please click here.
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PTP’s New Website provides Comprehensive Information on the Partnership’s Program of Work and Regional Assets
In mid-March, after several months of work, Piedmont Triad Partnership launched its new and improved web site. The new design features improved navigability, a document library, more maps and substantial new content – About 40% more content to be exact.
PTP’s newly-designed web site reflects a more comprehensive approach to the program of work at the Piedmont Triad Partnership and the resources of the Piedmont Triad Region. The new web site provides a wealth of information for a variety of users. The expanded site includes comprehensive information on the Piedmont Triad for both internal and external stakeholders interested in the assets and resources of the Piedmont Triad.
The site includes regional information such as:
The site was designed and built by Appian Digital of Burlington. The new site offers an enhanced platform which allows for easy updates of content which will expand the Partnership’s web presence. www.piedmonttriadnc.com
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Nonni’s Food Co. , a national specialty food company, is opening a commercial bakery in Yadkinville, investing $27 million and adding 172 jobs during the next three years. Nonni’s Food Co., headquartered in Illinois, is owned by Vivartia SA, an international food company headquartered in Greece. Nonni’s is a specialty food marketer and manufacturer with leading positions in a number of premium markets, including biscotti, bagel and pita chips, flat breads, Melba toast. The company has facilities throughout the U.S. and distributes the name brands of Nonni’s, New York Style, Old London and Devonsheer. The expansion was made possible in part by a $300,000 grant from the One North Carolina Fund. >>PRESS RELEASE
Haw River Valley will be officially designated an American Viticultural Area (AVA) on April 29. An AVA is defined as a "delimited grape-growing region distinguishable by geographical features." Those features include climate, soil, topography and elevation that distinguish the viticultural region from its surrounding areas. The new Haw River Valley AVA covers about 868 square miles (555,508 acres) and encompasses all of Alamance County as well as portions of Caswell, Chatham, Guilford, Orange, and Rockingham counties. The Haw River is the Piedmont Triad Region’s third AVA; Yadkin Valley and Swan Creek areas already have the distinction. >>MORE INFORMATION
Hörmann LLC , a major global supplier of garage doors, will open a 24,000-square-foot warehouse and distribution center in High Point. The company plans to hire 7- 10 employees. Hörmann, a German company best known for garage doors, also makes residential entry and other doors, with worldwide sales of about $1.8 billion in 2008. >>MORE INFORMATION
ASCO Power Technologiesplans to add 328 jobs over the next five years at its Welcome manufacturing operations. The company, which will invest $11.4 million to expand the Davidson County facility, is a world-leading m anufacturer of power switching and control products designed to ensure reliable back-up electrical power for critical operations. ASCO Power Technologies is a subsidiary of Emerson, a global manufacturing and technology company whose 2009 first quarter sales exceeded $5 billion. ASCO’s products include automatic transfer switches and power systems that protect hospitals, data centers and telecommunications networks. The company currently employs 190 people at its Welcome manufacturing plant. >>PRESS RELEASE
Fibrowatt LLC , a Pennsylvania-based developer, builder and operator of electrical power plants fueled with biomass, announced that it has selected a site near Biscoe, in Montgomery County to build a new power plant. The company generates electricity by burning chicken litter and is expected to bring 100 or more jobs and invest approximately $13 million annually through fuel purchases and transportation, employee payroll, and facility maintenance costs . The company also expects that 300 jobs will be created during the two-year construction phase of the project. The plant will be designed to produce up to 55 megawatts of energy, enough energy to power more than 40,000 homes. This power will help North Carolina utilities meet their renewable energy requirements that take effect in 2012. >>PRESS RELEASE
ConvaTec, a leading global medical device manufacturer will expand in Greensboro. The company will expand its ostomy wafer line and bring a new ostomy pouch operation to the local facility. ConvaTec plans to hire 30 machine operators and mechanics at an average wage of over $44,000. The company will convert warehouse space to manufacturing and invest $19.55 million in machinery, equipment and building upfit. ConvaTec, owned by Cidron Healthcare Limited, focuses on four key business divisions – ostomy care, wound therapeutics, continence and critical care and infusion devices. >>PRESS RELEASE
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UPCOMING EVENTS |
CLICK HERE FOR MORE DETAILS
Saturday, April 25
Saturday, May 2
Saturday, June 6
9 AM – 5:30 PM
Greensboro Cultural Arts Center
200 N. Davie St
Greensboro, NC
Power of Regionalism
CLICK HERE FOR MORE DETAILS
Tuesday, April 28
11:00 AM - 1:00 PM
Proximity Hotel
Greensboro, NC
2009 ExporTech
CLICK HERE FOR MORE DETAILS
Tuesday, May 5, 2009
8:30 AM - 4:30 PM
Piedmont Triad Parntership Office
7025 Albert Pick Rd, Suite 304
Greensboro, NC
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This publication was partially funded through the Piedmont Triad Partnership’s U.S. Department of Labor WIRED Grant. The Piedmont Triad Partnership is an equal opportunity employer.
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