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From Don Kirkman, President & CEO, Piedmont Triad Partnership
What Drives Job Creation?
With double-digit unemployment rates rampant across the country, the political focus is on job creation to an extent not seen in decades. Exacerbating the challenge is the dire fiscal condition of many state and local governments. So at exactly the same time state and local governments have less money with which to support economic development, competition for new jobs and investment is exploding as states and localities seek new jobs, investment, and tax revenues.
Most economists believe that job recovery will be slow, even as the overall U.S. and global economies rebound. Cash-strapped state and local government leaders, facing demands for greater services and reduced tax revenues, are in a quandary. Some states and communities are supporting major new public economic development initiatives, notwithstanding budget challenges, recognizing that economic development will be the pathway that leads state and local governments out of budget deficits through new capital investments and the creation of new jobs. Others are cutting budgets across the board, treating economic development as just another expenditure rather than an investment.
Balancing and prioritizing competing demands is an enormously challenging task for elected and other policy leaders. As former North Carolina Department of Commerce Secretary Jim Fain often said, “everything matters.” When everything matters, how does one choose what to keep and what to cut? If jobs are the key to economic recovery, it is important to first evaluate how jobs are created.
New jobs come from three sources: creating new enterprises (entrepreneurship), expanding existing companies, and recruiting new jobs. During the last two years much new job recruitment was actually the product of consolidations and portfolio rationalizations, where companies closed facilities and consolidated activities at other locations, often with little or no new capital investment. So while one community experienced net job creation, other communities lost jobs and there was an overall net loss of jobs.
Fortunately, net new investment is slowly returning, but capital is still tight, and the competition for new economic development projects is fierce, with incentives being offered at unprecedented levels. While an economic development axiom is that incentives do not make a bad location good, with multiple good location options incentives often determine the final location decision. Unilateral cuts in incentive programs place states and localities at a competitive disadvantage, particularly when neighboring states and localities are expanding incentive programs.
So what should a community do to create jobs? First, retain the ones already there. The return on investment of retaining companies and jobs is dramatically higher than trying to replace ones that leave. This requires an intimate knowledge of existing companies, both large and small, and an understanding of their needs and challenges, which can only be derived by developing strong relationships with local management.
Second, conduct a local/regional SWOT analysis and focus on areas of differentiating strengths and comparative advantage, even if they are not the flavor of the month. This can enhance the creation of new companies, the expansion of existing companies, and the recruitment of new companies. It also may mean shifting focus if your community loses its competitive advantage, particularly compared to neighboring communities.
Third, find efficiencies, economies of scale and partnerships to stretch limited dollars and human resources. This means breaking down silos, working across jurisdictional, organizational and sector boundaries, and sometimes collapsing or consolidating programs and even organizations. In a global economy size and scale matter, and bigger is often both more efficient and more effective.
Finally, while the current crisis is focusing attention on short-term job creation, long-term American competitiveness will be based in large part on innovation. Commodity manufacturing and routinized services will continue to migrate to lower-cost countries, so education and workforce development will play an even more important role in long-term economic growth and prosperity. Much of the innovation that has driven the American economy in the last 20 years has come from small companies, so it is important that local communities create a culture in which entrepreneurship and small business thrive.
After all, everything matters.
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Four regional initiatives that will raise the Piedmont Triad’s visibility, create jobs and strengthen workforce
To address a shift away from traditional manufacturing in the Piedmont Triad Region, The Piedmont Triad Partnership Board of Directors led by BB&T CEO and PTP Board Chairman, Kelly King, has proposed a solution. The group of Triad leaders has decided to focus on sectors that could grow the Regional economy. The sectors are called “Clusters of Opportunity,” and the plan includes a five-year, $6.5 million fundraising campaign to support four regional initiatives to raise the Piedmont Triad’s visibility, create jobs and higher incomes, and drive new capital investment and tax revenues. The four initiatives include:
Logistics/Distribution and “The Piedmont Triad Aerotropolis”
The Piedmont Triad offers a unique combination of logistics assets with potential to create tens of thousands of new jobs across the 12-county region. This initiative will brand the Piedmont Triad as the Global Logistics Center of the U.S. East Coast and drive companies that sell or distribute goods to East Coast markets to expand or locate facilities here. More about Logistics in the Piedmont Triad
Furnishings
This initiative will leverage all of the region’s furnishings cluster components for global competitive advantage. It will position the Piedmont Triad as the global furnishings destination for all companies in the furnishings and accessories sectors, including home, office and contract, as well as furnishings design and education. More about Furnishings in the Piedmont Triad
Nanotechnology
The Piedmont Triad is an emerging leader in nanotechnology, which is projected to have a multi-trillion dollar impact on the global economy in the next five years. It aims to make the region a center of nanotechnology excellence and innovation in the Southeast by leveraging the Region’s abundant higher education assets and world-class logistics and distribution systems. The Joint School of Nanoscience and Nanoengineering (JSNN), also called the Nanotechnology School, will be housed at the proposed Gateway University Research Park in the North Carolina Triad area. The 75-acre south campus of the research park will act as a central portal for nanotechnology and nanoscience in the Triad. The Center for Nanotechnology and Molecular Materials at Wake Forest University is a shared resource serving academic, industrial, and governmental researchers across the region.
Regenerative Medicine
With globally recognized research and translational leadership, national public policy and educational programs and clinical research and development, the Piedmont Triad is well-positioned for commercial opportunities in regenerative medicine. World renowned Dr. Anthony Attalah, directs the Wake Forest Institute for Regenerative Medicine where the goal is to apply the principles of regenerative medicine to repair or replaced diseased tissues and organs.
These initiatives are focused on regional business clusters where the Piedmont Triad has differentiating strengths, and will be managed under the Piedmont Triad Partnership umbrella.
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WIRED Grant Significantly Impacts the Piedmont Triad Workforce
In 2006, the Piedmont Triad Partnership learned that we had been chosen to receive a three-year, $15 million federal workforce grant from the U.S. Department of Labor. Called the Workforce Innovations in Regional Economic Development grant – or WIRED – the Partnership focused on developing a plan to strengthen the Region’s global competitiveness through the creation of high-skill, high-wage jobs.
Now that the WIRED grant is coming to an end, this first part of a two-part article will give a high-level overview of the grant results.
Specific implementation plan goals were developed. Goals Include:
- Leadership/Communication and Regional Integration
- Economic Growth and Sustainability
- Education and Workforce Investment
In defining the Piedmont Triad’s targeted industry sectors, four clusters were identified as those with the greatest opportunity for global impact:
- Advanced Manufacturing
- Creative Enterprises and the Arts
- Health Care
- Logistics and Distribution
Some of the Promising Practices to reach these goals:
- Leadership Forums and networking with Task Forces in Global Logistics, Furnishings and University Transformation Team
- Link business leaders with K-12 Education Leaders
- Develop a Higher Education Innovation Council
- Develop business-led Industry-Sector Roundtables
- Develop Entrepreneurship Strategies
- Develop a Regional Advisory Council for Minority Economic Workforce Development
- Conduct regional networking events
WIRED Results … At-A-Glance
Total amount of Dollars leveraged: $6,884,983
Total number of Contracts and Grants given: 180
- Grants: 60
- Cluster-based Programs, Demonstrations and Pilots: 32
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Strategic Plans and Feasibility Studies: 10
Number Who Began Workforce Training: 4,376
Number Who Completed Training: 3,192
Number Who Earned Degrees or Certificates: 547
Number Placed in Target Industry Jobs: 310
Number of Career Readiness certificates earned as result of WIRED: 1,365 Number of K-12 School Teachers who enhanced skills: 743
Number of students touched by those teachers: 15,180
Number of Inter-Institutional Collaborative Research projects: 19
Number of employers engaged in Industry Roundtables: 338
- Total number of leaders engaged in Regional Action Agenda: 169
- (88 minority and rural)
The next and final article in the series will include specific examples of the kinds of programs and initiatives generated using WIRED funds.
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Piedmont Triad Companies take advantage of the many benefits of locating in Foreign Trade Zone #230
The Piedmont Triad Partnership is the grantee and manager of Foreign Trade Zone #230, with sites located in a variety of industrial settings in Alamance, Davidson, Davie, Forsyth, Guilford and Surry counties.
For the purpose of creating jobs and increasing economic activity within the Zone, the Partnership is dedicated to marketing the benefits of operating within FTZ#230 to businesses in our region and to business considering locating or relocating here. Companies that import components for distribution or that manufacture finished products for export enjoy simplified customs entry procedures and duty deferrals. Therefore, companies located in FTZ #230 zones can maximize cash flow while minimizing taxes and fees.
There has been steady activity recently related to Foreign Trade Zone #230. Applications include:
• Banner Pharmacaps requested activation in a subzone. This application was approved in November 2009.
• Diebold requested to move their manufacturing authority from Davidson County to their new facility in Greensboro. The request was approved in December 2009.
• The Partnership submitted an application for minor boundary modification. This application proposed to modify the boundary in Davidson County, which added a new site, site 14. The application was approved in March.
• Klaussner Home Furnishings submitted an application for a new subzone in Asheboro. This application is pending.
Map of General Purpose Zone sites in FTZ #230
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What would it mean to Get Not Out of Your Life?
The Partnership has developed a motivational multi-media campaign to show residents how successful life could be without negativity and to take the first step to gain control of their lives. Made possible using funds from the WIRED grant, the program was kicked off at the regional literacy Summit on April 9 and is available statewide.
The goal of the “Get Not Our of Your Life” Campaign is to help people who have been held back by the word “not.” It includes a series of marketing tools that encourage individuals to seek counsel, upgrade their education and job training and overcome barriers to personal and career satisfaction.
The program’s multi-media advertising campaign uses local success stories to show just how different life can be without the word “not.” It further encourages those who are often negative to others to consider a more constructive tone.
Get Not Out Public Service Announcement
Elements of the campaign include:
• Posters
• Newspaper ads
• Flyers
• Billboards
• Public service announcements for television
• Public service announcements for radio
• Video for online promotion
• Press releases
Grassroots efforts for promoting this program could include:
• Movie theatre preview screens
• Bus stop panels
• Computer screen savers
• Fast-food tray liners
• Pizza box flyers
• Signage to promote job openings
Most materials are available in Spanish
“This program can change lives,” says Theresa Reynolds, Senior Vice President of the Piedmont Triad Partnership and one of the founders of the Get Not Out of Your Life program. “If we can help people find the courage to give themselves another chance, we’ll have done a great thing for the community.”
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Aviation Executives from around the Region gathered at PTP Offices for a Networking Event
On Tuesday, April 6, Regional aviation industry executives participated in a networking event at PTP. This event provided an opportunity for members of this emerging Piedmont Triad Cluster to meet one another and to learn about Aviation Industry related marketing efforts of the PTP.
Aviation Forum attendees included Piedmont Triad Airport Authority, Executive Director, Ted Johnson, Helen Cauthen with Greensboro Economic Development Alliance along with Mark Campbell and James Heasley of Cessna Textron
Kip Blakey, Vice President Sales and Marketing, TIMCO Aviation Services, Michael Baughan, President & CEO, BE Aerospace and Jack Hicks of Womble Carlyle also attended the Aviation Forum at PTP offices.
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BizBoost Program, Helps Regional Businesses Excel toward a better future
On March 18 members of the Small Business and Technology Development Center (SBTDC) staff led an information session to provide more information about the Biz Boost initiative which is spear-headed by Governor Beverly Perdue and will be rolled out in all seven regions across the State. Biz Boost aims to help businesses retain jobs and accelerate their prospects for future growth. The Piedmont Triad Partnership and the North Carolina Department of Commerce are working with SBTDC to connect firms that have between 10 and 250 employees and provide them with proven and effective business assistance. The SBTDC and its team of experienced management advisors and business specialists will provide in-depth personalized counseling to help those businesses:
• better manage finances,
• develop strategic and marketing plans,
• restructure debt, and
• position for growth.
The SBTDC will quickly and objectively assess the current financial and operational situations of the participating business and look for improvements that can have an immediate impact. Following that, the SBTDC will help the business work through their specific issues whether in marketing, accessing capital, employee and management performance, or strategy. The SBTDC’s assessments and one-on-one business counseling are available at no cost to participating businesses.
Since 1984, the SBTDC has helped businesses grow jobs and revenues – more than 3 times the average for North Carolina firms. Strong businesses are the key to job creation, increased revenue, and regional economic success. Independent surveys have shown over the past 25 years that SBTDC clients outperform their peers, even during recessions.
Biz Boost is funded from a reallocation of existing federal workforce development funds. In a time when businesses are struggling, worker training programs will only go so far in helping people find jobs or in curtailing unemployment. Instead, Governor Purdue and the NC Commission on Workforce Development initiated Biz Boost as a strategy to help keep people employed and encourage businesses to grow. This strategy is unique to North Carolina because of its proactive approach to workforce development – using some of the State’s federal allotment on job retention in addition the traditional strategy of worker training and retraining.
The North Carolina Department of Commerce has hired a Biz Boost Representative for the Piedmont Triad Region, Van Thorpe. Van will be responsible for identifying businesses that might benefit from the assistance of the State.
Learn more about Biz Boost and register to start receiving help for your business; visit the www.sbtdc.org/bizboost or the SBTDC at 800-258-0682 or bizboost@sbtdc.com.
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United Furniture Industries NC LLC, a national manufacturer of residential upholstered furniture, will expand in the Piedmont Triad by opening a new facility in Davidson County. The company plans to create 150 jobs and invest more than $3.3 million during the next three years in Lexington. United Furniture Industries NC is a wholly-owned subsidiary of United Furniture Industries Inc., headquartered in Okolona, Miss. The company produces affordable living room furniture, including sofas, chairs, recliners, sleepers and other items. United Furniture currently has five locations, including three in Mississippi and two in North Carolina. The North Carolina facilities, located in Archdale and High Point, together employ about 400 people. United Furniture plans to purchase the vacant Stanley Furniture distribution facility for a new plant in Lexington. The company will assemble frame materials, foam and upholstered material from outside vendors into finished furniture products. >>PRESS RELEASE
Albaad USA Inc., an international supplier of wet wipes for varied uses, will expand its plant in Rockingham County. The company will invest more than $9 million and create 95 jobs in Reidsville. Albaad USA is a wholly owned subsidiary of Albaad Corporate, which is headquartered in Israel and operates facilities in Israel, Germany and Reidsville. The company manufactures wet wipes for a variety of uses, including personal, home and automotive care. The company, which employs about 200 workers in Rockingham County, was recently awarded a contract to produce a new infant wet wipe product. Albaad plans to expand its Reidsville plant, also known as AFG Wipes, to manufacture the new wipes and its standard products. >>PRESS RELEASE
Harvest Time Bread, a national baker for the grocery and food service industries, will expand its operations in Surry County. The company plans to invest $4.5 million and create 38 jobs during the next three years in Mount Airy. Harvest Time Bread of North Carolina LLC s a wholly owned subsidiary of Harvest Time Bread Co., headquartered in New Jersey. The company produces a wide variety of breads, rolls, whole grain and organic products and currently employs 86 people at the bakery in Mount Airy. Harvest Time Bread plans to purchase the facility that it currently leases and expand operations to better serve the Southeastern U.S. market. >>PRESS RELEASE
Todd Tucker, President, Surry County Economic Development announces Harvest Time Bread’s plan to expand its Mount Airy facility and create 38 jobs.
Beverage-Air, a commercial refrigeration company will move its headquarters from Spartanburg, SC to Winston-Salem creating 40 jobs. Beverage-Air is owned by The Ali Group, an Italian food service equipment conglomerate. Beverage-Air is constructing a 21,600 sq ft building near Smith Reynolds Airport. The new facility is adjacent to the headquarters of Champion Industries which makes commercial dishwashing equipment and is also owned by the Ali Group. The new facility in Winston-Salem will house functions including administration and sales as well as customer service, technical service and testing. The Ali Group has more than 7,000 employees in 24 countries. >>MORE INFORMATION
Targacept, Inc. (NASDAQ: TRGT), a clinical-stage biopharmaceutical company, is in the process of hiring 30 new employees. The company currently has about 120 employees in the Piedmont Triad Research Park in Winston Salem. Positions will be filled in both the laboratory and the administrative offices. A recent deal signed with development partner AstraZeneca for a potential treatment for depression as well as a pipeline of five compounds currently in clinical trials are the primary reasons for the expansion of the current staff. >>MORE INFORMATION
Carolina Liquid Chemistries will market a diabetes blood test developed by GlycoMark. Carolina Liquid Chemistries is a manufacturer, distributor and service provider for various reagents and chemistry systems. GlycoMark's diabetes test is an FDA-approved blood test that monitors intermediate glycemic control, which can help patients manage the disease to prevent complications. This distribution arrangement will allow doctors to perform the test in their offices. Until now, GlycoMark was only available through reference labs, which required physicians to wait for results before prescribing treatments. The Piedmont Triad Research Park was the catalyst for this partnership as both firms are based in the park. Carolina Liquid Chemistries also recently signed exclusive U.S. distribution contracts for two machines made in Japan. >>PRESS RELEASE
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UPCOMING EVENTS |
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PTP Marketing Calendar |
May 3-6
BIO 2010 - Chicago
May 4
Friends of North Carolina
BIO Reception - Chicago
May 6
Friends of North Carolina Consultant Event - Chicago
May 14
Triangle Broker Luncheon
May 17-18
Aviation Media Tour
May 20-21
Governor’s Aerospace Executive Forum - New Bern
CLICK HERE TO SEE THE FULL MARKETING CALENDAR
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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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