State of the Region 2007 Presenting Sponsors Associate Sponsors.

State of the Region 2007Presenting Sponsors

Associate Sponsors

Welcome!

State of the Region 2007Presented by

John Cox, CCE, CEcDPresident and CEO

Cabarrus Regional Chamber & Economic Development


John Silvia, Ph. D.Managing Director, Chief Economist

Wachovia Corporation


Mac HolladayFounder & CEO – Market Street Services

Atlanta, Georgia


Presented by J. Mac Holladay, CEONovember 13, 2007

State of the Region SummitCabarrus Regional Chamber

Agenda

• Current Economic Trends and Realities

• North Carolina Research Campus: Review of SWOT Analysis and Economic Impact Analysis Findings

• Small Business & Entrepreneurial Development Action Plan (Cabarrus and Rowan Counties)

• Cabarrus Regional Chamber: Strategic Plan

Current Economic Trends & Realities

Recent Headlines

“Fresh Credit Worries Grip Market”Wall Street JournalNovember 2, 2007

“Crippling oil price spike is a clear and present danger” The Kiplinger Letter

November 2, 2007

“Winter Heating Crisis Looms”Wall Street Journal November 5, 2007

“On Guard Against Recession” James C. Cooper

Business WeekNovember 12, 2007

The Changing Structure of the Economy

• Fundamental changes in the U.S. economy are ongoingFundamental changes in the U.S. economy are ongoing

• Until mid-2001, the U.S. experienced the strongest Until mid-2001, the U.S. experienced the strongest growth and development in history– record lows in growth and development in history– record lows in unemployment and record growth in per capita unemployment and record growth in per capita incomeincome

• Fortune 500 companies made up 26% of nonagricultural Fortune 500 companies made up 26% of nonagricultural workforce 30 years ago, and those firms have lost workforce 30 years ago, and those firms have lost over 12 million jobsover 12 million jobs

• In the 1990s, medium and small companies accounted In the 1990s, medium and small companies accounted for all of the net job growth across the countryfor all of the net job growth across the country

1982 Fortune 500: Top 25

1.1. ExxonExxon2.2. MobilMobil3.3. General MotorsGeneral Motors4.4. TexacoTexaco5.5. ChevronChevron6.6. Ford MotorFord Motor7.7. AmocoAmoco8.8. IBMIBM9.9. Gulf OilGulf Oil10.10. Atlantic RichfieldAtlantic Richfield11.11. General ElectricGeneral Electric12.12. DuPontDuPont13.13. Shell OilShell Oil

14.14. ITT IndustriesITT Industries15.15. ConocoPhillipsConocoPhillips16.16. Tenneco AutomotiveTenneco Automotive17.17. SunocoSunoco18.18. Occidental PetroleumOccidental Petroleum19.19. U.S. SteelU.S. Steel20.20. United TechnologiesUnited Technologies21.21. BP AmericaBP America22.22. AT&T TechnologiesAT&T Technologies23.23. Getty OilGetty Oil24.24. Dow ChemicalDow Chemical25.25. Procter & GambleProcter & Gamble

1.1. Wal-Mart StoresWal-Mart Stores2.2. Exxon MobilExxon Mobil3.3. General MotorsGeneral Motors4.4. Chevron Chevron 5.5. ConocoPhillipsConocoPhillips6.6. General ElectricGeneral Electric7.7. Ford MotorFord Motor8.8. CitigroupCitigroup9.9. Bank of America Corp.Bank of America Corp.10.10. American International GroupAmerican International Group11.11. J.P. Morgan Chase & Co.J.P. Morgan Chase & Co.12.12. Berkshire HathawayBerkshire Hathaway13.13. Verizon CommunicationsVerizon Communications

14.14. Hewlett-PackardHewlett-Packard15.15. IBMIBM16.16. Valero EnergyValero Energy17.17. Home DepotHome Depot18.18. McKessonMcKesson19.19. Cardinal HealthCardinal Health20.20. Morgan StanleyMorgan Stanley21.21. UnitedHealth GroupUnitedHealth Group22.22. Merrill LynchMerrill Lynch23.23. Altria GroupAltria Group24.24. Goldman Sachs GroupGoldman Sachs Group25.25. Proctor & GambleProctor & Gamble

2007 Fortune 500: Top 25

Fortune 500: Top 25 by Sector

1982

Manufacturing 11

Energy 13

Communications 1

2007

Finance/Insurance 10

Manufacturing 5

Energy 4

Retail 2

Health 2

Communications 1

Technology services 1

The New and Old Economies

Issue

Markets

Scope of competition

Organizational form

Production system

Key factor of production

Key technology driver

Competitive advantage

Relations between firms

Skills

Workforce

Nature of employment

Old

Stable

National

Hierarchical

Mass production

Capital/labor

Mechanization

Economies of scale

Go it alone

Job-specific

Organization Man

Secure

New

Dynamic

Global

Networked

Flexible production

Innovation/ideas

Digitization

Innovation/quality

Collaborative

Broad and changing

“Intrapreneur”

Risky

Source: Source: 2007 State New Economy Index, March 20072007 State New Economy Index, March 2007

“Creative Destruction”

“A market economy will incessantly revitalize itself from within by scrapping old and failing businesses and then reallocating resources to newer more productive ones.”

Alan Greenspan

The Age of Turbulence

October 2007

• Commenting on Harvard Economist Joseph Schumpeter’s term “Creative Destruction” (1942).

What I See – November 2007

“We muddle along. There is an equilibrium or balance here to the labor market, but at a fairly slow trend in terms of employment growth…we’re avoiding a recession by the skin of our teeth.”

John Silva

Chief Economist

Wachovia National Bank

USA Today

November 5, 2007

The South

Source: Bureau of Labor StatisticsSource: Bureau of Labor Statistics

Net Job Change in the SouthNet Job Change in the South

January 2001 to December 2006January 2001 to December 2006

Florida 1,060,300 Alabama 110,000

Virginia 295,900 Kentucky 74,600

Georgia 207,000 Arkansas 69,900

North Carolina 203,400 West Virginia 46,600

Tennessee 143,100 Mississippi 31,400

South Carolina 115,300 Louisiana 900

The South



January to December 2006January to December 2006

Florida 269,400 South Carolina 64,300

North Carolina 166,400 Alabama 59,500

Georgia 120,300 Kentucky 55,900

Virginia 114,400 Mississippi 44,000

Louisiana 108,400 Arkansas 31,400

Tennessee 89,400 West Virginia 27,400

The South



January to August 2007January to August 2007

Georgia 101,700 Alabama 30,300

North Carolina 84,400 Louisiana 29,200

Virginia 82,400 Kentucky 28,500

Florida 78,200 Mississippi 18,200

Tennessee 65,300 West Virginia 15,000

South Carolina 46,300 Arkansas 13,200

The South

Decline of ManufacturingDecline of Manufacturing

January 2001 to December 2006January 2001 to December 2006


North Carolina -189,300 Kentucky -46,100

Tennessee -77,300 Arkansas -41,100

South Carolina -74,100 Alabama -36,100

Georgia -70,500 Mississippi -35,900

Virginia -59,800 Louisiana -27,400

Florida -55,300 West Virginia -13,000

The South



January to December 2006January to December 2006

Tennessee -8,000 Florida -600

North Carolina -7,600 Mississippi -400

Kentucky -6,500 West Virginia -300

South Carolina -4,100 Virginia -200

Alabama -3,900 Georgia 2,400

Arkansas -2,600 Louisiana 5,800

The South



January to August 2007January to August 2007

Kentucky -7,700 North Carolina -500

Arkansas -2,900 Tennessee -500

Florida -2,600 Alabama -100

Georgia -2,400 West Virginia -100

Mississippi -1,900 Virginia 200

South Carolina -1,200 Louisiana 1,700

Cabarrus County - Community Context

• Continued economic transition is being accelerated by these impacts:– Development of Research Campus– Outward growth of the Charlotte metro area– Strength of motorsports and tourism sectors

Major News – Cabarrus County, 2007

• NorthEast Medical Center merger with Carolinas HealthCare System

• Closing of Philip Morris – 2500 jobs

• Windstream buyout of CT Communications – 150 jobs

• Great Wolf Lodge waterpark/resort opening in Concord

• Threat of Speedway relocation• Moving ahead with Research Campus

– $35M M.U.R.D.O.C.K. study through Duke– County & City of Kannapolis agreement on TIF bonds– Research Campus new tenants – Red Hat, Biomarker Group, etc.

North Carolina Research Campus: Review of SWOT

Analysis and Economic Impact Analysis Findings

Total Cumulative Job Impacts – By County

Year Cabarrus Iredell Mecklenburg Rowan Stanly Union Total

2008 2,219 0 0 0 0 0 2,219

2010 4,111 105 912 73 30 49 5,280

2012 5,273 221 1,921 154 63 100 7,732

2017 7,348 490 4,289 1,004 140 175 13,445

2022 9,437 948 8,359 2,176 270 256 21,447

2027 11,526 1,406 12,428 3,348 401 338 29,448

2032 13,616 1,865 16,498 4,520 531 420 37,450

Additional Population Estimated - 2032

26,324

6,436

35,456

14,161

3,417

3,777

0 10,000 20,000 30,000 40,000

Population

Cabarrus

Iredell

Mecklenburg

Rowan

Stanly

Union

Total Population, Household, and Job Impacts by 2032

2032 Cabarrus Iredell Mecklenburg Rowan Stanly Union Total

Population 26,324 6,436 35,456 14,161 3,417 3,777 89,571

Households 10,935 2,818 15,889 6,048 1,515 1,401 38,606

Jobs 13,616 1,865 16,498 4,520 531 420 37,450

Key Strengths & Opportunities

• Proximity to Charlotte– Opportunity to capture some of natural growth

• Proactive public communication– Need to continue this – multiple audiences

• Strong, coordinated regional support for entrepreneurship– Develop local connections– Organizations need to understand the way biotech works

• State support for biotechnology– Continue strengthening connections, tap into knowledge

• Organizations in Charlotte area working well together to prepare for NCRC– Keep going!

The Need to Plan & Take Action

• Research Campus is unique project, enormous opportunity– Can transform the local community & economy

• BUT, potential economic impacts will not just happen– Need targeted investments, proactive planning and marketing,

and a welcoming attitude

• Competition for biotech is tough, other cities are far ahead– Lots of choices for biotech workers and businesses– Community, region, & state need to be aggressive, define &

market competitive advantages

• Community can’t afford “wait & see” approach– Reactive response will be too late

PRIORITY Issues to Address

• #1: Improving K-12 education– Improve performance, expand gifted programs, link biotech

• #2: Preparing the workforce– Identify skills/positions needed, communicate opportunities, create

training programs

• #3: Expanding amenities & improving government services– “Catch up” on QOL factors

• #4: Promoting smart growth & creating a sense of place– Mix of housing, multiple modes of transportation, land use,

aesthetics

• #5: Embracing diversity– Promote a welcoming community

Summary of Issues

OVERARCHING NEEDS

Plan and invest for growth Communicate changes and opportunities to current and potential residents

PRIORITY ISSUES ADDITIONAL FOCUS AREAS Improve K-12 education

Prepare the workforce

Expand amenities and improve government services

Promote smart growth and create a sense of place

Embrace diversity

Pursue increased higher education programming at the Research Campus

Develop effective networks for entrepreneurs

Educate service providers about needs of biotechnology start-ups

Develop breadth and depth in funding options for start-up firms

Consider creating a free wireless internet zone on the NCRC campus and surrounding area

Continue developing state and regional partnerships

Next Steps

Three priority areas of work need strong community involvement and action plans.

1. Workforce development and education• Status: Seeking funding to develop plan

2. Small business and entrepreneurship• Status: Action Plan recently completed

3. Quality of life/Growth management• Status: Delayed

Investments to make the economic potential become reality.

Small Business & Entrepreneurial

Development Action Plan (Cabarrus and Rowan

Counties)

Project Background

• SWOT Analysis key issues:– Developing entrepreneurial culture– Supporting small business development

• Small Business & Entrepreneurial Development Action Plan– Entrepreneur System Assessment– Action Plan

Review of Assessment Summary –Strengths & Weaknesses

Strengths

• Collaboration among some service providers

• Wide range of education & training options available

• Technical assistance available regionally & locally

• Bank loans are available

• Chambers are valuable networking resources

Weaknesses

• Expand collaboration beyond a select group of service providers

• Limited awareness of available resources

• Reactive rather than proactive approach to contacting entrepreneurs

Review of Assessment Summary – Opportunities & Threats

Opportunities

• K-12 entrepreneur education

• Awareness campaign about available resources

• Additional access to capital

• Network for high-growth entrepreneurs

• Proactive contact with NCRC tenants

• “Go-to” resource and/or physical presence/facility at NCRC

• Become regional leader for entrepreneurship

Threats

• Historical climate (risk-averse, mill-town mentality, wary social attitude) makes it hard to establish entrepreneurial culture

• If growth management not done well, then risk of overburdening infrastructure and losing potential businesses and workers/residents

• Need to address workforce development of current residents and talent attraction

Action PlanPart 1: Create a Systematic Approach

• Create the Cabarrus-Rowan Area Entrepreneurial Council to provide a more systematic, centralized public face of Cabarrus-Rowan’s commitment to entrepreneurs and small businesses

• The Council will serve the following 6 focus areas:– Assistance – Provide answers and referrals– Education – Refer entrepreneurs to available instruction– Capital Formation – Facilitate access to capital– Networking – Strengthen networks and mentoring relationships– Youth – Build a pipeline of entrepreneurial talent– Culture – Foster an environment that values entrepreneurship

Part 2: Reorganize around 6 focus areasAssistance – Provide answers and referrals

• Offer basic technical advice and a comprehensive list of helpful referrals

• Maintain a comprehensive service provider, regulatory office, and available capital resource guide

• On the Council’s website, maintain a step-by-step, interactive web-based “how to” guide about starting a business in Cabarrus or Rowan County

• Host quarterly networking meetings for local and regional service providers.

Part 2: Reorganize around 6 focus areasEducation – Refer entrepreneurs to available instruction

• Refer entrepreneurs to available instruction

• Assemble and staff an education partners’ task force dedicated to filling gaps and resolving unnecessary overlaps in available instruction

• Offer equipment for entrepreneurs to view video, online, or other “on-demand” training services

Part 2: Reorganize around 6 focus areasCapital Formation – Facilitate access to capital

• Refer entrepreneurs to available capital resources

• As local demand supports, pursue feasible means of creating a local angel investors network, revolving loan fund, and seed capital fund– Begin generating support for the creation of a locally-based

angel investors network for Cabarrus-Rowan area high-growth entrepreneurs.

– Determine an entity to offer a revolving loan fund for Cabarrus-Rowan area lifestyle entrepreneurs.

– Consider also establishing a local seed-capital fund for Cabarrus-Rowan area start-ups with the potential to become high-growth entrepreneurs.

Part 2: Reorganize around 6 focus areasNetworking – Strengthen networks and mentoring relationships

• Create a comprehensive peer-based mentoring program– Focus on getting mentors who are experienced entrepreneurs,

and representative of different business sectors

• Coordinate a high-growth networking group – Identify entrepreneurs already affiliated with the NCRC who can

help organize this

• Refer lifestyle entrepreneurs and small business owners to the networking opportunities at the Cabarrus Regional Chamber, Rowan Chamber, and other area providers

Part 2: Reorganize around 6 focus areasYouth – Build a pipeline of entrepreneurial talent

• Advocate for area schools and non-profit agencies serving area youth to offer entrepreneurial education programs at the elementary, middle, and high school levels– Include both classroom-based and after-school/summer activity

focused programming– Determine the best means of creating more comprehensive

entrepreneur educational programs for Cabarrus-Rowan’s youth› Convene a “Youth Entrepreneurship Conference”

– Involve businesses in program design/offerings

– Develop a Cabarrus-Rowan Area High School Business Plan Competition

Part 2: Reorganize around 6 focus areasCulture – Foster an environment that values entrepreneurship

• Raise awareness about available services and capital support

• Demonstrate that Cabarrus-Rowan is an entrepreneur-friendly community

• Support opportunities to hire and elect qualified leaders with experience in entrepreneurship

• Maintain awareness of business climate concerns, and work with business and government partners to advocate for improvements

Implementation Considerations: Council OrganizationCoordinated Timeline & Milestones

COUNCIL ORGANIZATIONAL STEPS – PART I§ Develop preliminary information

website for entrepreneurs.§ Identify champion for Council

creation.§ Determine leadership and

organizational structure.§ Get support of founding

partners.§ Get technical help from CED &

BREC as needed.§ Seek public & private sector

support.

COUNCIL ORGANIZATIONAL STEPS – PART II§ Establish office space at or near

Research Campus.§ Hire staff.

MARCH 2008Announce organizational & funding commitment to the

creation of the Council(when Core Lab & UNC Lab

are expected to be completed)

OCTOBER 2008Hire Council staff.

(when RCCC, NC State facilities are expected to be

completed)

COUNCIL ORGANIZATIONAL STEPS – PART III§ Identify & establish service

provider partnerships.§ Complete/update website.§ Plan “kick-off” opening event.

JANUARY 2009“Official” opening of the

Council as ready to assist entrepreneurs & small

businesses(when many of the labs & major tenant buildings are expected to be completed)

Action Plan – Implementation Status

• Cabarrus Regional Chamber/EDC, Rowan-Cabarrus Community College, SBTDC staff have been working together to plan next steps

• Need to:– Identify/convince key champions– Develop message to sell– Start talking to local governments, other partners

Cabarrus Regional Chamber: Strategic Plan

Project Overview

ORGANIZATIONAL ASSESSMENT

STRATEGIC PLAN

Work Group

SWOT Analysis - Strengths

• Proactive and aggressive• Community leadership, business advocacy, public policy• Communicating information• Leadership development of members• Quality of staff• Ability of Chamber, CVB, and EDC to work together

SWOT Analysis - Weaknesses

• Staff capacity/size– #2 person, governmental affairs, workforce development &

education, membership/marketing

• More effectively use Chamber Foundation• Increase revenue• Expand program offerings

– Education & workforce development– Minority & women-owned business development– Specific networking groups – young professionals, biotech– Formalized government affairs programs– Expansion of Leadership Cabarrus– Member services – lead generation, member-to-member

mentoring– Awareness of international trade issues & opportunities

• Stronger impact on public policy

SWOT Analysis - Opportunities

• Chamber has confidence/trust of business community – can take significant role in issues

• Growth of Cabarrus County & development of Research Campus – opportunity for Chamber to:– Attract members, improve services– Influence public policies to prepare for growth– Position itself as community leader and business advocate

• Opportunity for Cabarrus County to be hotbed for entrepreneurship– Networks and resources need to support this

SWOT Analysis - Threats

• Success of Chamber is largely dependent on one individual (John Cox)

• Community is not always aware of what Chamber is doing– Neither are small business members

• Few large employers in the community to help lead and finance key Chamber and economic development activities

• Growth brings significant challenges with long-term consequences if not handled well

• Newcomers may not be aware of or interested in Chamber

Chamber Strategic Plan - Overview

Does this sound familiar?....

Strategic Plan Overview

• Purpose: High level evaluation and realignment of the Chamber’s organizational and functional areas

• Components– Focus Areas and Goals– Programs and Services– Organization and Structure– Communication

Revised Chamber Focus Areas and Goals

• Economic Development– Strengthen and diversify the local economy– Foster entrepreneurial culture and small business growth– Build a quality workforce

• Public Policy– Improve the business climate– Ensure a strong quality of life– Prepare for growth

• Membership Services– Create value for members (facilitate business growth and

promote relationships)– Expand and diversify membership base– Develop community leaders

Programs and Services – Economic DevelopmentRecommendations

Continue developing relationships with businesses and others key partners in the region, including those associated with the North Carolina Research Campus.

Continue to increase collaboration and strengthen relationships among the Chamber, CVB, and EDC.

Play a lead role in the establishment of the Entrepreneurial Council and provide guidance and assistance for start-up activities.

Move events-type activities to be under the purview of Membership Services.

Proceed with the creation and implementation of the Regional Workforce Development and Education Action Plan.

Programs and Services – Public PolicyRecommendations

Continue to play a proactive role in public policy, keeping in line with the Chamber’s mission and vision.

Communicate to the public the importance of planning for and managing growth, and how it will affect the community.

Continue to work with local government entities to make policy changes that prepare for growth.

Emphasize the importance of economic diversity to the health of the local economy, including a need for balance between residential and business development.

Programs and Services – Public PolicyRecommendations (cont’d)

Add a candidate development component to the Governmental Affairs Committee to help identify and encourage business people to run for public office.

Open Leadership Cabarrus to non-Chamber members and seek broader participation.– Consider offering scholarships to attract applicants to whom cost

is a barrier.

Consider expanding the types of offerings within Leadership Cabarrus to include youth and a more formalized alumni program.

Develop opportunities for Leadership Cabarrus graduates to enter immediately into volunteer activities upon completing the program.

Programs and Services – Membership ServicesRecommendations

Consider the creation of other programs and services as a way to engage members and generate revenue. Ex: lead generation programs, specific networking groups, member-to-member networking

Assess the effectiveness of the Business Councils and reasons for low turnout. Modify guidelines and work with leadership to raise the quality of the Business Councils and ensure that they provide value to members.

Aggressively seek to diversify the Chamber’s membership, attracting more young people and minorities.

Be a visible and vocal leader in the cultural transition of the community as new and different types of people arrive.

Create an attractive relocation information packet and online information for newcomers.

Consider the creation of a “welcoming committee” with Chamber volunteers who personally contact newcomers.

CommunicationRecommendations

Emphasize the priorities reflected in this Strategic Plan throughout Chamber marketing materials, messages, and publications.

Work with the media to get more exposure to the Chamber’s work, and consider a CEO column in the local newspapers.

Work with the EDC and CVB to ensure that the business community speaks with one voice.

Provide continually updated news and content through the Chamber’s website that reflects the Chamber’s priorities and successes.

Consider the use of “new media” approaches and other technology to help deliver information and provide greater value to members.

Consider launching separate websites for certain initiatives, such as a young professionals network, or one that focuses on relocation to the area.

Chamber Strategic PlanPriority Actions

• Implement the Small Business and Entrepreneurial Development Action Plan

• Add staff capacity

• Develop a unified communications approach

Confront the Brutal Facts

“If it ain’t broke, don’t fix it” is the slogan of the complacent, the arrogant, or the scared. It’s an excuse for inaction, a call to non-arms. It’s a mindset that assumes (or hopes) that today’s realities will continue tomorrow in a tidy, linear, and predictable fashion. Pure fantasy.

Colin Powell, Former Secretary of State

Excerpt from Leadership

Thank you.

Industry PanelMarco Casol, PreGel USA

Tracey Ayers, ConnextionsGreg Baucom, Windstream


Winston KelleyExecutive Director

NASCAR Hall of Fame


Thank you for coming!


State of the Region 2007 Presenting Sponsors Associate Sponsors.

Documents

Transcript of State of the Region 2007 Presenting Sponsors Associate Sponsors.