The South - Cabarrus Regional Chamber of Commerce

advertisement
State of the Region 2007
Presenting Sponsors
Associate Sponsors
State of the Region 2007
Presented by
Welcome!
State of the Region 2007
Presented by
John Cox, CCE, CEcD
President and CEO
Cabarrus Regional Chamber & Economic Development
State of the Region 2007
Presented by
John Silvia, Ph. D.
Managing Director, Chief Economist
Wachovia Corporation
State of the Region 2007
Presented by
Mac Holladay
Founder & CEO – Market Street Services
Atlanta, Georgia
State of the Region Summit
Cabarrus Regional Chamber
Presented by J. Mac Holladay, CEO
November 13, 2007
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 Journal
November 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 Week
November 12, 2007
The Changing Structure of the Economy
• Fundamental changes in the U.S. economy are ongoing
• Until mid-2001, the U.S. experienced the strongest
growth and development in history– record lows in
unemployment and record growth in per capita
income
• Fortune 500 companies made up 26% of nonagricultural
workforce 30 years ago, and those firms have lost
over 12 million jobs
• In the 1990s, medium and small companies accounted
for all of the net job growth across the country
1982 Fortune 500: Top 25
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Exxon
Mobil
General Motors
Texaco
Chevron
Ford Motor
Amoco
IBM
Gulf Oil
Atlantic Richfield
General Electric
DuPont
Shell Oil
14. ITT Industries
15. ConocoPhillips
16. Tenneco Automotive
17. Sunoco
18. Occidental Petroleum
19. U.S. Steel
20. United Technologies
21. BP America
22. AT&T Technologies
23. Getty Oil
24. Dow Chemical
25. Procter & Gamble
2007 Fortune 500: Top 25
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Wal-Mart Stores
Exxon Mobil
General Motors
Chevron
ConocoPhillips
General Electric
Ford Motor
Citigroup
Bank of America Corp.
American International Group
J.P. Morgan Chase & Co.
Berkshire Hathaway
Verizon Communications
14. Hewlett-Packard
15. IBM
16. Valero Energy
17. Home Depot
18. McKesson
19. Cardinal Health
20. Morgan Stanley
21. UnitedHealth Group
22. Merrill Lynch
23. Altria Group
24. Goldman Sachs Group
25. Proctor & Gamble
Fortune 500: Top 25 by Sector
1982
Manufacturing
Energy
Communications
2007
11
13
1
Finance/Insurance
Manufacturing
Energy
Retail
Health
Communications
Technology services
10
5
4
2
2
1
1
The New and Old Economies
Issue
Old
New
Markets
Stable
Dynamic
Scope of competition
National
Global
Organizational form
Hierarchical
Networked
Production system
Mass production
Flexible production
Key factor of production
Capital/labor
Innovation/ideas
Key technology driver
Mechanization
Digitization
Competitive advantage
Economies of scale
Innovation/quality
Relations between firms
Go it alone
Collaborative
Skills
Job-specific
Broad and changing
Workforce
Organization Man
“Intrapreneur”
Nature of employment
Secure
Risky
Source: 2007 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
Net Job Change in the South
January 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
Source: Bureau of Labor Statistics
900
The South
Net Job Change in the South
January 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
Source: Bureau of Labor Statistics
The South
Net Job Change in the South
January 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
Source: Bureau of Labor Statistics
The South
Decline of Manufacturing
January 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
Source: Bureau of Labor Statistics
The South
Decline of Manufacturing
January 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
Source: Bureau of Labor Statistics
The South
Decline of Manufacturing
January 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
South Carolina
-1,200
Louisiana
Source: Bureau of Labor Statistics
200
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
3,777
Union
3,417
Stanly
14,161
Rowan
35,456
Mecklenburg
6,436
Iredell
26,324
Cabarrus
0
10,000
20,000
Population
30,000
40,000
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
 Improve K-12 education
 Prepare the workforce
 Expand amenities and improve
government services
ADDITIONAL FOCUS AREAS
 Pursue increased higher education
programming at the Research Campus
 Develop effective networks for entrepreneurs
 Educate service providers about needs of
biotechnology start-ups
 Promote smart growth and create a
 Develop breadth and depth in funding options
sense of place
for start-up firms
 Embrace diversity
 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
Weaknesses
• Collaboration among some
• Expand collaboration
service providers
• Wide range of education &
training options available
• Technical assistance
available regionally & locally
• Bank loans are available
• Chambers are valuable
networking resources
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
Threats
• K-12 entrepreneur education
• Historical climate (risk-averse,
• 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
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 Plan
Part 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 areas
Assistance – 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 areas
Education – 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 areas
Capital 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 CabarrusRowan 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 areas
Networking – 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 areas
Youth – 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 areas
Culture – 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 Organization
Coordinated 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 2008
Announce organizational &
funding commitment to the
creation of the Council
(when Core Lab & UNC Lab
are expected to be
completed)
COUNCIL ORGANIZATIONAL
STEPS – PART III
 Identify & establish service
provider partnerships.
 Complete/update website.
 Plan “kick-off” opening event.
OCTOBER 2008
Hire Council staff.
(when RCCC, NC State
facilities are expected to be
completed)
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
Work Group
ORGANIZATIONAL
ASSESSMENT
STRATEGIC PLAN
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 Development
Recommendations
 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 Policy
Recommendations
 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 Policy
Recommendations (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 Services
Recommendations
 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.
Communication
Recommendations
 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 Plan
Priority 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.
State of the Region 2007
Presented by
Industry Panel
Marco Casol, PreGel USA
Tracey Ayers, Connextions
Greg Baucom, Windstream
State of the Region 2007
Presented by
Winston Kelley
Executive Director
NASCAR Hall of Fame
State of the Region 2007
Presented by
Thank you for coming!
Download