As 2009 drew to a close, there was a flurry of economic development activity, projects that promise to bring thousands of jobs to the state in coming years.
That momentum is likely to continue in 2010, as the broader economic recovery spurs more corporations to expand or relocate in North Carolina.
"We're working real hard on some major announcements in the pipeline that we hope to close in the first quarter," said N.C. Commerce Secretary Keith Crisco. "The general climate around North Carolina seems to be a little better than it was."
Crisco declined to comment on specific projects, but state and local officials are reported to be courting several big companies such as Radio Shack and Fannie Mae. Crisco also said he expects to see more activity from the biotechnology, aerospace and auto-supply companies. Commerce is in discussions about more than 100 projects, he added.
"Everyone understands, even with all the issues we face, howvery fortunate we are," he said.
Recent new-job news included planned expansions by EMC in Durham, Talecris Biotherapeutics in Clayton, Electrolux in Charlotte and IEM in Research Triangle Park. Last week, state officials announced that Zenta Mortgage Services will add 1,002 jobs in Charlotte over five years.
And Commerce officials are scheduled to meet Tuesday inRaleigh to approve incentives for another project.
While those deals add up, they'll only partially offset the pain caused by a state jobless rate of 10.8 percent, higher than the national average of 10 percent. This year's final months brought news of mass layoffs by SonyEricsson in Research Triangle Park, Dell in Winston-Salem and Volvo Construction Equipment in Asheville.
And 2010 opens with much uncertainty about how pending changes in Washington will affect business and possibly raise the costs of hiring, said Lew Ebert, head of the N.C. Chamber. That includes health-care reform, energy legislation, new rules related to borrowing and lending money, and changes in employment and labor law.
The recent new jobs announcements are encouraging and help boost confidence, but "85 percent of new jobs are created by existing companies, especially small business," Ebert said. "Anything we can do to make them more secure about the future is a plus. We need to drive job growth from within."
Economic boosters expect job creation will be a priority when the legislature convenes for a short session in May. "We're always trying to improve our tools," Crisco said.
Thinking globally
State officials, who made trips to Europe and Asia in 2009 to recruit businesses, will likely make at least one overseas visit next year, Crisco said: "We will continue to push international investments."
Crisco also will keep calling on his boss to lobby corporate leaders. Crisco said he asked Gov. Bev Perdue to step in 46 times during 2009 to help with business recruitment, and she "did 'em all."
"The top executive's involvement is powerful in this business," he said. "No one else can say, 'We want you, we love you,' like she can."
Competition for new jobs continues to increase, even as critics question the use of incentives to lure expansion. One project that chose Georgia over North Carolina cited the large number of international destinations served by Atlanta's airport, Crisco said.
Despite the ones that get away, economic development officials across North Carolina continue to lobby prospective clients by touting this state's educated work force, low cost of doing business and quality of life.
'Things are coming back'
The Research Triangle Research Partnership reports that companies announced plans in 2009 to create 10,000 jobs and make $1.85 billion in new investments in the 13-county region that the partnership promotes.
The group has 34 active projects, down a bit from traditional levels, but the size of the projects is generally bigger, said CEO Charles Hayes. "This region's intellectual capacity is still driving a lot of the growth we're seeing," he said. "Things are coming back."
As the economy recovers, RTP officials expect to see more activity from midsized companies, which were most affected by the credit crunch, said Rick Weddle, president of the Research Triangle Foundation that runs RTP.
"We're squarely at the top of the food chain in economic activity," Weddle said. "If the economy is lousy, we'll be less lousy. We're almost always going to fare better."
