On the local front, the Economic Development Corporation is marketing this area and successfully targeting Highway 321 as the NC Data Center Corridor. The Chamber stands behind the fact that small business have to be our number one job creator in the future and what are they doing to stimulate not only new entrepreneurs, but helping existing businesses stay in business and be more competitive! This event is about these issues and other economic and political policies and strategies that will have a significant impact on Catawba County’s road to recovery.
Dr. Garrett Hinshaw - President of Catawba Valley Community College - Made the introductions and moderated the event.
Photos copyright: ©2011 Pat Appleson Studios, Inc. All Rights Reserved, Used By Permission
Fox News Interview with Tom Donohoe President of the U.S. Chamber of Commerce - What Business Wants - Jan 11, 2011 - 4:32 - Chamber of Commerce cautiously optimistic about economy - Video at the Link
Moore Hallmark, Executive Director, U.S. Chamber of Commerce Southeast region - Immediate priorities are regulatory restraint and reform, expanding foreign trade, reducing national spending and debt, and rebuilding America's Economic Foundation. Mr. Hallmark stated how much we need to work on infrastructure.
Lew Ebert, President, North Carolina Chamber of Commerce - Mr. Ebert recognized the state representatives from our area. He addressed the political landscape and challenges facing the State of North Carolina. This is the first time ever that Republicans control both the house and senate in the State.
Mr. Ebert spoke of 4 numbers that describe our economy (34, 300, 300,000, $3.7 billion) 34 years since the State of NC had an unemployment level this high. 300 is the number of net new jobs created since the year 2000; 300,000 is the number of jobs lost in the last 2 years; $3.7 billion is the size of our State's deficit we are facing.... $2.5 billion is how much the State of North Carolina owes to the Federal Government for cost overruns associated with unemployment.
We will face the budget deficit challenges over the next 2 to 4 years. temporary taxes administered two years ago to address the deficit will sunset this year. A goal of the Chamber is to address the State's worker's compensation system. Costs are rising despite the fact that we are one of the safest States to work in. North Carolina's system is one of the few that allow lifetime benefits. Costs have nearly tripled since 1996. The cost of doing business in north Carolina is a priority.
Harry Davis, Professor of Banking at Appalachian State University - Professor Davis went over some excellent information. In previous recessions residential home construction was the engine that drove the recovery, but it does not exist presently. The rates of growth in this "recovery" are half of what they were in past recoveries. Personal debt is improving, but it is still way out of whack. Consumer credit is recovering somewhat. Increased spending is coming out of income, instead of debt.
U.S. Corporations are sitting on more cash than they have had in 50 years. The Bush tax cuts should have been dealt with sooner, because businesses have sat on the sidelines until they were certain what the business climate would be. This year could be the most profitable for S&P companies in History.
The unemployment rate went down from 9.8% to 9.4%, because 265,000 people left the labor force. We need to add 250,000 jobs per month to maintain the rate. In the first year coming out of the 80-82 recession, we added 3 million jobs. In 18 months in this recovery we have added 1.3 million. We have 6 million people who have been out of work for 27 months (long term). The highest that number has ever been previously was 2 million in 2001. Most economists believe it will take 5 to 6 years to recover those jobs. Every time we go through a recovery, it takes longer to get back the jobs.
We have a structural, systemic problem. We have people in jobs, that when they lose them, aren't going to come back. Manufacturing and construction jobs aren't going to come back. As the economy picksup, they are left on the sidelines. These people are going to have to deal with geography and go somewhere where their are jobs. North Carolina lost more jobs in November than any other State in the Union.
Do the States do any better at budgeting than the Federal government? Professor Davis argues that most States don't. he doesn't include NC. He talked about housing and he states that our nation gets it backwards. We have subsidized housing to creaste jobs. We need to subsidize jobs to grow housing. Who is going to buy all of these houses, when the boomers retire. What are we going to do with these houses?
The Boomers are creating a huge change in demographics that will create problem with economic growth because of changes in consumption and savings. The Boomers will be living off of their wealth, while the numbers of people gainfully employed will be decreasing.
The government cannot continue to spend deficits as a percentage of GDP (the total National Economy), we are currently spending 25% of the economy. If this continues, we will run deficits forever. It used to not be as bad, because we owed it to ourselves; now we owe it to Foreign Nations and Foreign interests.
We need policies that promote growth, more free trade, less government and regulation, incentives for business, infrastructure, human capital and worker preparation... We need our children to be educated in jobs that are needed, such as engineering. This is going to be slow progress over the next several years.
Scott Millar, President, Catawba County Economic Development Corporation - North Carolina is facing structural long term challenges. We need business incentives, that is just the reality. Every community is being very aggressive to try to solve these problems.
We have to have product to market in order to attract businesses. Multi-jurisdictional parks to to be ready and accessible for fast moving opportunities. This is what happened with Apple. They are currently working with a group in Claremont. They are also working with others in the county.
The North Carolina Data Center corridor is recognized as a hotspot by national consultants and Scott has heard this from his colleagues. This will afford more opportunities. They are examining related aspects in our local communications industry. We have had a manufacturing advantage in this sector. How do we exploit and synthesize the communication and information industries toward other opportunities. Where is the kernel we can market. We need to quantify the advantages we have over other areas.
The merger of Duke Energy and Progress Energy can lead to opportunities for our area. Nuclear and Renewable (alternative) energies can provide opportunities. The Eco-Complex will lead to avenues and opportunities in the near future. The Manufacturing Solutions Center can lead to opportunities in niche manufacturing, which will create jobs on a small, but very important, scale.
They are trying to recruit non-manufacturing service sector jobs, such as Fiserv and Convergis. These jobs are fragile, because of the changing economy and technology and the ways we do business. They are trying to make sure that local existing industries can compete and understand and access existing opportunities. Scott also addressed legislation related to existing industries. He talked about mismatches of priorities for funding of different levels of government and the problem with the current tiering structure format related to economic incentives.
Photos copyright: ©2011 Pat Appleson Studios, Inc. All Rights Reserved, Used By Permission
Danny Hearn, President, Catawba County Chamber of Commerce - Danny talks about individuals who are looking to start up companies, the heart of entrepreneurialism. He introduces Michael Neely, Owner of Blind Squirrel Digital, who also addresses the group.
Photos in video copyright: ©2011 Pat Appleson Studios, Inc. All Rights Reserved, Used By Permission
The hope is to create more small businesses in our area. This is where new job creation is going to come from. Are we making it easy for these businesses to start, grow, and thrive?
Mike Neely goes into his reasons for locating to North Carolina. he has previously worked for EA Sports and several feature film projects. He moved here to improve his family's quality of life. He likes the structure of the cost of business in the area. Currently Blind Squirrel Digital is working on several projects including newly released iPhone games and production of laser multi-touch screens. He speaks of the technological assets that we have in the Greater Hickory Metro.
Danny took the mic back and talked about what he has implemented over the last few years including Brainstorming teams associated with The Chamber's Entrepreneurial Roundtable Group. IBM stated that the number one need to succeed in the future is creativity and innovation. How do we create new ideas? The Chamber has created several mechanisms to create this climate of creativity.
The Edison Project will be a start-up entrepreneurial competition for anyone who has a new business idea that they want to bring to the marketplace. Applications will be approved this week. They will be accepted until May and in July and August the top ten will be announced and in September a major event will be held and these nominees will give 5 minute presentations and one of these nominees will receive $10,000 and thousands of dollars in pro-bono awards (legal, accounting, business management). What you get is not only a winner, but 40 or 50 other good business ideas.
Photos in video copyright: ©2011 Pat Appleson Studios, Inc. All Rights Reserved, Used By Permission
The Future Economy Council is a Think Tank, where we met Michael Neely and Houston Harris. A partnership with the Collaborative labs from St. Petersburg College in St. Petersburg, Florida will allow an 8 hour simulation process that will work towards creating a Strategic Economic Development Plan for Catawba County on March 11, 2011. The Chambers Annual meeting will include 20 businesses that are a sampling of the technologically innovative companies in our area. We should be proud and spreading the world. We need to find more. What does the logo "Start Something Here" mean? It is a portal site that will be introduced on February 17, 2011 at the Chambers Annual meeting.
The Hound believes the above was a positive event that should inspire the community to get to moving on various initiatives meant to direct the community towards a positive direction in the upcoming year. It was a meaningful event rooted in the realities of today, while creating inspiration for the possibilities of tomorrow.
No comments:
Post a Comment