Economic Development Update Presented to the North Carolina General Assembly

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An update by Sec. Keith Crisco and Dep. Sec. Dale Carroll to the N.C. General Assembly on 2010 activities of the North Carolina Dept. of Commerce. (Dec. 15, 2010)

An update by Sec. Keith Crisco and Dep. Sec. Dale Carroll to the N.C. General Assembly on 2010 activities of the North Carolina Dept. of Commerce. (Dec. 15, 2010)

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  • 1. North CarolinaDepartment of Commerce
  • 2. THANK YOU! 2
  • 3. 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 3
  • 4. MISSION:To improve the economic well-being and quality of lifefor 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 4
  • 5. HOW COMMERCE CREATES JOBS 5
  • 6. ECONOMIC DEVELOPMENT PARTNERS 6
  • 7. HOW COMMERCE CREATES JOBS 7
  • 8. WHY CHOOSE NORTH CAROLINA? North Carolina has the best business climate in America. Our secret is simple. When people thrive, business thrives. 8
  • 9. “North Carolina …and ahandful of other states areleading the nations crawlout of the worst recession since the 1930s” September 21, 2010 9
  • 10. BUSINESSES:Attracting New Companies 10
  • 11. Growing & Attracting Companies & JobsProjects Assigned 2% (412 vs. 404)Projects Announced 5% (133 vs. 127)Jobs Announced 11% (15,217 vs. 13,676)Capital Investment 11% ($3.1B vs. $2.8B)AnnouncedDirect Account 20% (1,466 vs. 1,221)Interactions 2010 vs. 2009 Year-to-Date 11
  • 12. DATA-DRIVEN ECONOMIC DEVELOPMENT• Return on Investment Assessment• Cost- Benefit Analysis• Identify job growth opportunities for the future 12
  • 13. BUSINESSES:Growing Existing Businesses 13
  • 14. GLOBAL EXPORTS IMPACT NORTH CAROLINA 14
  • 15. 15
  • 16. NORTH CAROLINA PORTS 16
  • 17. GROWING SMALL BUSINESS 17
  • 18. GROWING SMALL BUSINESS• 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 18
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  • 23. TOURISM INDUSTRYVisitors• Spent $15.6 Billion• Generated 183,800 Direct Jobs• Created $1.35 Billion in State & Local Taxes 23
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  • 31. EQUIPPING OUR WORKFORCE 31
  • 32. EQUIPPING OUR WORKFORCE 32
  • 33. EFFECTS of COMPETITION 33
  • 34. HOW COMMERCE CREATES JOBS 34
  • 35. HOW COMMERCE CREATES JOBS• 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 35
  • 36. BUSINESSES:Growing & Attracting Companies 36
  • 37. 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 37
  • 38. 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 38
  • 39. BUSINESSES: Growing & Attracting Companies PIEDMONT TRIAD REGION 416 Gallimore Dairy Road RESEARCH TRIANGLE REGION Suite J 301 North Wilmington Street Greensboro, NC 27409 Raleigh, NC 27601 NORTHEASTERN REGIONWESTERN REGION 119 West Water Street Edenton, NC 27932 [Boone Office] 206 Southgate Drive Suite 21-E Boone, NC 28607 [Bryson City Office] 60 Almond School Road Room 117 EASTERN REGION Bryson City, NC 28713 CHARLOTTE REGION 1604 East Fire Tower Road 8430 University Executive Park Drive Suite D [Fletcher Office] Suite 645 Greenville, NC 27834 134 Wright Brothers Way Charlotte, NC 28262 Fletcher, NC 28732 SOUTHEASTERN REGION 225 Green Street Systel BuildingCommerce Regional Offices Suite 802 Fayetteville, NC 28301 39
  • 40. Growing & Attracting Companies & JobsProjects Assigned 2% (412 vs. 404)Projects Announced 5% (133 vs. 127)Jobs Announced 11% (15,217 vs. 13,676)Capital Investment 11% ($3.1B vs. $2.8B)AnnouncedDirect Account 20% (1,466 vs. 1,221)Interactions 2010 vs. 2009 Year-to-Date 40
  • 41. NORTH CAROLINAGlobal Representatives 41
  • 42. 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 42
  • 43. BUSINESSES:Growing & Attracting CompaniesThe American Recovery and Reinvestment Act of 2009 Federal Recovery Zone Bond ProgramNorth Carolina has accessed more than 85% of the$1 Billion allocation available, compared to the nationalaverage 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 are underway 43
  • 44. BUSINESSES:Attracting Visitors 44
  • 45. BUSINESSES: Attracting Visitors• 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 45
  • 46. BUSINESSES: Attracting Visitors 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 46
  • 47. BUSINESSES:Encouraging Innovation, Entrepreneurship & Small Business 47
  • 48. BUSINESSES:Encouraging Innovation, Entrepreneurship & Small Businesses • 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 48
  • 49. BUSINESSES:Encouraging Innovation, Entrepreneurship & Small Businesses 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 49
  • 50. BUSINESSES:Encouraging Innovation, Entrepreneurship & 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 50
  • 51. BUSINESSES:Encouraging Innovation, Entrepreneurship & Small BusinessesStatewide counseling, training & information servicesprovide 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 51
  • 52. CITIZENS: Developing NorthCarolina’s Workforce 52
  • 53. CITIZENS:Developing North Carolina’s Workforce • 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 53
  • 54. 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 54
  • 55. COMMUNITIES:Building Strong Communities 55
  • 56. 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 56
  • 57. DATA-DRIVEN ECONOMICDEVELOPMENT 57
  • 58. 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 58
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