North Carolina's Business Climate - A Negative Trend

"Site Selection Misdirection"

 

I've shared the podium with Representative Hugh Holliman (Democratic Majority Leader - NC House) several times over the past year when we've been asked to give our perspective on the business climate in North Carolina.  Rep. Holliman never fails to mention North Carolina's top 10 rating by Site Selection Magazine, but what he fails to mention is that North Carolina's rating has slipped each and every year for the past four years.  With the tax increases imposed in 2009 and other business unfriendly legislation passed under the watch of the Democratic Party majority, I'm afraid the trend will continue.

 

If Rep. Holliman and the members of the majority want to continue to justify increasing taxes and wasteful spending, they need to come up with a better justification than a spin on a misleading indicator that is trending in the WRONG direction.

 

CLICK this link to read the editorial posted on the Charlotte Observer website or read below.

N.C. shows signs of slipping with businesses

slimjims.JPG
Slim Jim gone

 
From an editorial published March 5 in the (Greensboro) News and Record:

When ConAgra Foods announced Wednesday it will shut its Slim Jim plant in Garner and move production to Troy, Ohio, it followed a trend.

Ohio finished first in Site Selection magazine's 2009 standings, also released Wednesday. The placement was based on the number of new and expanded corporate facilities.

North Carolina ranked seventh, an enviable position but a dip from fifth in 2008, fourth in 2007 and third in 2006.

North Carolina also slipped last year in the annual United Van Lines study. Looking at more than 140,000 interstate household moves, United found more families moving into North Carolina than moving out. But the state's ranking as a destination was 10th-best, compared to third just the year before.

The Charlotte Observer reported similar findings Thursday for the state's largest city:

"The influx of newcomers to the Charlotte region, long a beacon of the area's success, has slowed since the unemployment rate surged. An analysis of the latest Census data shows notable drop-offs in out-of-state transplants and 20-somethings."

The banking crisis hit Charlotte particularly hard, but its growth rate for many years before that provided a huge boost for the state's economy.

By some measures, including an unemployment rate that's higher than the national average, North Carolina isn't doing well.

Although still attractive to new residents and businesses, the appeal doesn't seem to be as strong as it was just a few years ago. Leaders need to discover the reasons - whether tax rates, education, infrastructure, regulatory costs - and make adjustments.

Ohio lured ConAgra Foods with a promise of no property taxes for 15 years - a concession worth about $3 million. North Carolina has been competitive in bidding for businesses but lost out this time.

Offering tax breaks and other incentives isn't the best economic development strategy. North Carolina and individual regions have other selling points. But evidence is building that we're no longer at the top of our game, and that must be fixed.

N.C. Opinions is an occasional feature offering editorial viewpoints from a variety of newspapers. The views expressed are not necessarily those of The Observer's editorial board.


Read more: http://www.charlotteobserver.com/2010/03/08/1296773/nc-shows-signs-of-slipping-with.html#ixzz0iY0bnb4K
 

N.C. shows signs of slipping with businesses

slimjims.JPG
Slim Jim gone

 
From an editorial published March 5 in the (Greensboro) News and Record:

When ConAgra Foods announced Wednesday it will shut its Slim Jim plant in Garner and move production to Troy, Ohio, it followed a trend.

Ohio finished first in Site Selection magazine's 2009 standings, also released Wednesday. The placement was based on the number of new and expanded corporate facilities.

North Carolina ranked seventh, an enviable position but a dip from fifth in 2008, fourth in 2007 and third in 2006.

North Carolina also slipped last year in the annual United Van Lines study. Looking at more than 140,000 interstate household moves, United found more families moving into North Carolina than moving out. But the state's ranking as a destination was 10th-best, compared to third just the year before.

The Charlotte Observer reported similar findings Thursday for the state's largest city:

"The influx of newcomers to the Charlotte region, long a beacon of the area's success, has slowed since the unemployment rate surged. An analysis of the latest Census data shows notable drop-offs in out-of-state transplants and 20-somethings."

The banking crisis hit Charlotte particularly hard, but its growth rate for many years before that provided a huge boost for the state's economy.

By some measures, including an unemployment rate that's higher than the national average, North Carolina isn't doing well.

Although still attractive to new residents and businesses, the appeal doesn't seem to be as strong as it was just a few years ago. Leaders need to discover the reasons - whether tax rates, education, infrastructure, regulatory costs - and make adjustments.

Ohio lured ConAgra Foods with a promise of no property taxes for 15 years - a concession worth about $3 million. North Carolina has been competitive in bidding for businesses but lost out this time.

Offering tax breaks and other incentives isn't the best economic development strategy. North Carolina and individual regions have other selling points. But evidence is building that we're no longer at the top of our game, and that must be fixed.

N.C. Opinions is an occasional feature offering editorial viewpoints from a variety of newspapers. The views expressed are not necessarily those of The Observer's editorial board.


Read more: http://www.charlotteobserver.com/2010/03/08/1296773/nc-shows-signs-of-slipping-with.html#ixzz0iY0bnb4K
 

N.C. shows signs of slipping with businesses

From an editorial published March 5 in the (Greensboro) News and Record:

 

When ConAgra Foods announced Wednesday it will shut its Slim Jim plant in Garner and move production to Troy, Ohio, it followed a trend.

Ohio finished first in Site Selection magazine's 2009 standings, also released Wednesday. The placement was based on the number of new and expanded corporate facilities.

North Carolina ranked seventh, an enviable position but a dip from fifth in 2008, fourth in 2007 and third in 2006.

North Carolina also slipped last year in the annual United Van Lines study. Looking at more than 140,000 interstate household moves, United found more families moving into North Carolina than moving out. But the state's ranking as a destination was 10th-best, compared to third just the year before.

The Charlotte Observer reported similar findings Thursday for the state's largest city:

"The influx of newcomers to the Charlotte region, long a beacon of the area's success, has slowed since the unemployment rate surged. An analysis of the latest Census data shows notable drop-offs in out-of-state transplants and 20-somethings."

The banking crisis hit Charlotte particularly hard, but its growth rate for many years before that provided a huge boost for the state's economy.

By some measures, including an unemployment rate that's higher than the national average, North Carolina isn't doing well.

Although still attractive to new residents and businesses, the appeal doesn't seem to be as strong as it was just a few years ago. Leaders need to discover the reasons - whether tax rates, education, infrastructure, regulatory costs - and make adjustments.

Ohio lured ConAgra Foods with a promise of no property taxes for 15 years - a concession worth about $3 million. North Carolina has been competitive in bidding for businesses but lost out this time.

Offering tax breaks and other incentives isn't the best economic development strategy. North Carolina and individual regions have other selling points. But evidence is building that we're no longer at the top of our game, and that must be fixed.

N.C. Opinions is an occasional feature offering editorial viewpoints from a variety of newspapers. The views expressed are not necessarily those of The Observer's editorial board.

 

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Questions or Comments?  Send an email to Thom Tillis at thomtillis@thomtillis.com


Thom Tillis
Representative
North Carolina House of Representatives
98th District

17209 Green Dolphin Lane
Cornelius, NC 28031
 704-248-2980
e-mail:  thomtillis@thomtillis.com

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