Showing posts with label economic incentives. Show all posts
Showing posts with label economic incentives. Show all posts

Monday, May 12, 2014

Is Charlotte gobbling too much of N.C.'s job-recruitment pie?



A new report out today from the N.C. Justice Center, a progressive public policy think tank in Raleigh, is raising questions about whether bigger cities such as Charlotte, Raleigh, Greensboro and Asheville are gobbling up a disproportionately large percentage of the state's job-recruitment incentives since 2007.

Of the $840 million in incentives given out since then to recruit or grow industry, the majority went to the more urban and prosperous areas of the state, the study showed. Mecklenburg got 55 job development projects during that time and pulled in more than $303 million in incentives -- or more than a third of the state's total incentives for the period. That money came with promises that companies would create or retain more than 24,000 jobs in the Charlotte area. By contrast, rural Sampson County, located just east of Interstate 95, received merely $238,000 for two projects. Those projects promised to create or retain 187 jobs.

The state has been trying to do more to boost job growth in economically hard-hit rural areas. But as urban areas keep sprinting ahead, the challenge seems to loom increasingly large.

"North Carolina needs to spend less money on incentives in the most prosperous metros in the state, and start investing more in the roads, schools and job training programs most likely to create jobs and improve economic conditions in the state's most distressed and rural communities," said Allan Freyer, the report's author.



Wednesday, December 11, 2013

Charlotte economic developer: Boeing's a 'long shot'

Speaking to a gathering of corporate real estate professionals today, one of the region's top job recruiters said Charlotte is a "long shot" to win the emerging national bidding war for Boeing's planned 777X aircraft manufacturing plant.

Ronnie Bryant, CEO of the Charlotte Regional Partnership, made the comment during a speech at the City Club uptown to the Carolinas chapter of CoreNet Global, a professional group with chapters around the world. Bryant, whose group markets the 16-county Charlotte region to outside companies, said the Queen City is extremely competitive in recruiting jobs in many industries, including aerospace.


But referring to the quest to land the Boeing plant, he said: "I think it's a long shot for this market." Asked for elaboration after the event ended, Bryant told the Observer he didn't know if Charlotte and North Carolina would be able to match the kind of incentives other competitors are offering.

Charlotte is among more than a dozen cities and states submitting bids to win the plant and thousands of good-paying jobs that would come with it. Washington state, already home to a large Boeing presence, has offered an $8.7 billion incentives package to keep the new jobs there. "That's a big number," Bryant said. "We've never approved anything like that."

Gov. Pat McCrory and Commerce Secretary Sharon Decker have declined to talk about the project. Bryant said his group isn't involved. "I don't see it," he said, referring to the chances of Charlotte getting the plant. "But maybe someone sees something I don't see."

Tuesday, December 10, 2013

Boeing deadline day arrives

Today's the deadline for Charlotte and the dozen or more other interested states and cities to submit applications in hopes of landing the Boeing plant that will build the new 777X airliner. It's perhaps the biggest job recruitment prize to come up for grabs around here in years. If Gov. Pat McCrory and Commerce Secretary Sharon Decker feel good about the locations the state is submitting for Boeing's consideration, they weren't saying yesterday when my colleagues and I asked about it during a Charlotte Chamber event.

Several people I've talked to in N.C. economic development circles privately question whether North Carolina really has a fighting chance. They speculate that Boeing is just shopping the plant around to get the union there in Washington state to accept concessions. (If this letter from an upset Boeing machinist is any guide, the company's ties to the Puget Sound region run extremely deep, and yet union sentiment is strongly against the deal). Judging from this New York Times report, and other things I've read, it appears the machinists feel their experience and expertise in building airplanes make it a risky proposition for Boeing to go elsewhere. Washington Gov. Jay Inslee went so far as to use the words "potential disaster" to describe the kind of delays Boeing has seen at its Charleston, S.C. plant.

Clearly Washington's not letting its largest private employer go without a fight. Lawmakers there last month passed an $8.7 billion incentives package that some call the largest in U.S. history. Is Boeing worth that high a price? I guess we'll see soon enough what North Carolina and Charlotte have to say about that.