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transcript
UNC Center for
Competitive Economies (C3E)
A SWOT Analysis for Chatham County
Revised version: June 1, 2007
Brent Lane, Executive Director
Jason Jolley, Research Director
This presentation represents the most recent version of a SWOT analysis conducted
by the Center for Competitive Economies. It may be subject to additions,
modifications, and corrections as new data become available.
The Carolina Center for Competitive Economies (C3E) Kenan Institute for Private Enterprise
Organization of SWOT
Overview of general demographic/economic
data
Description and Purpose of SWOT
SWOT Analysis
Objectives and Goals of Economic
Development Strategic Plan
Demographic Data
Population: Chatham County 1930-2030
61,635
73,617
85,877
49,329
38,759
33,415
29,55426,78525,39224,72624,177
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030
Po
pu
lati
on
58,002 (2005)
Pop Change 2000-2005
13.71%
5.95%
8.46%
4.84%5.59% 5.22%
20.25%
7.89%
9.31%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Cha
tham
Alam
ance
Dur
ham
Gui
lford
Lee
Ora
nge
Ran
dolp
h
Wak
e
Nor
th C
arol
ina
Persons Per Square Mile in 2000
304.18
769.21
648.34
191.28
288.96
165.71
754.72
165.20
72.24
0.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
900.00
Cha
tham
Alam
ance
Dur
ham
Gui
lford
Lee
Ora
nge
Ran
dolp
h
Wak
eNC
2004 Census Population Estimates By Race
Chatham County NC
White 82.2% 74.1%
Black 14.6% 21.8%
American Indian 0.4% 1.3%
Asian 1.9% 1.7%
Native Hawaiian 0.2% 0.1%
2 or more races 0.7% 1.0%
Hispanic/Latino 11.4% 6.1%
White, not Hispanic 71.4% 68.6%
What is a SWOT Analysis?
A strategic tool to assess the strengths,
weaknesses, opportunities, and threats
facing an organization.
SWOT Characterization
Strengths
Positive characteristics
Internally focused
Opportunities
Positive characteristics
Externally focused
Weaknesses
Negative characteristics
Internally focused
Threats
Negative characteristics
Externally focused
Purpose of Chatham
SWOT Analysis
To focus on the state of Chatham County’s
economy
To organize preliminary research to date as
an initial step in strategic planning.
To create an objective shared reference point
for stakeholders as we move forward with the
joint development of an economic vision plan.
SWOT Data Sources
The Center for Competitive Economies
compiled and analyzed workforce,
employment, and other economic data from
public and proprietary data sources.
We engaged in several preliminary activities in
preparation for the SWOT, including a
preliminary economic scan, an industry cluster
overview, and an asset inventory.
Strengths
Chatham Strengths
Good business climate with relatively low property
taxes
Residents have high median household income (8th
in NC) and per capita personal income (3rd).
Well-educated resident population (unfortunately,
much of this workforce commutes elsewhere to
work!)
Strong community college presence, including small
business/worker training support programs.
Income
Median Household Income (2000): $42,851, (2003): $44,089
Per Capita Personal Income (2003): $32,236
Durham MSA Median Family Income (2004): $53,076
Durham MSA Median Family Income (2006): $61,700
Raleigh-Cary MSA Median Family Income (2004): $61,439
Raleigh-Cary MSA Median Family Income (2006): $71,600
Educational Attainment by Township
25.7%
9.2%
32.0%
21.3%
17.3%
25.2%
11.4%
24.6%
25.1%
38.4%
10.0%
18.8%
10.3%
32.7%
15.2%
37.7%
25.4%
31.3%
36.5%
25.2%
36.9%
32.8%
31.1%
21.4%
30.1%
14.0%
29.7%
28.6%
19.9%
37.5%
26.4%
27.0%
27.8%
22.0%
24.4%
20.9%
21.4%
28.4%
16.8%
7.6%
26.9%
6.6%
7.9%
17.1%
6.0%
22.0%
10.0%
11.2%
6.6%
26.3%
14.8%
30.2%
4.2%
19.9%
7.9%
7.9%
5.2%
13.6%
6.5%
6.5%
20.8%
7.9%
28.7%
3.8%
2.9%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Albright
Baldwin
Bear Creek
Cape Fear
Center
Gulf
Hadley
Haw River
Hickory Mountain
Matthews
New Hope
Oakland
Williams
< High School
High School
Some College
Bachelors
Graduate
Source: 2000 Census, Population Age 25+
Chatham Strengths
An excellent highway network with easy access to the Triad and RTP regions, two major airports, and quality local airport.
Land in Chatham is less expensive than in the core counties of the Triad or RTP
Designated economic development areas and industrial parks
Low crime rate and low unemployment rate
2006-07 Property Tax Rate Per $100 Assessed Value
0.5970.575
0.809
0.6615
0.79
0.903
0.535
0.634
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Chatham Alamance Durham Guilford Lee Orange Randolph Wake
Unemployment Rate-August 2006
3.6%
5.4%
3.9%
4.8%
5.4%
3.5%
4.7%
3.4%
4.7%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
Chatham Alamance Durham Guilford Lee Orange Randolph Wake North
Carolina
Crime per capita, 2000
0.031
0.043
0.083
0.060
0.052
0.046
0.039
0.048 0.049
0.000
0.010
0.020
0.030
0.040
0.050
0.060
0.070
0.080
0.090
Chatham Alamance Durham Guilford Lee Orange Randolph Wake North
Carolina
Economic Development Areas in
Chatham County
The Land Use Conservation and Development
Plan designates 8 sq. miles for Economic
Development Centers outside of the towns and
compact community corridors.
Designated for industrial and other economic
activity.
The plan assumes 3 sizes of ED centers: 300,
750, & 2,500 acres
Land Use Plan Designation of
Economic Center Locations
Eight areas are identified as economic centers
1. A center jointly developed with Pittsboro south of town along US 15-501
2. A center jointly developed with Siler City south of town along US 421
3. The Moncure-Haywood area
4. The Goldston-Gulf area
5. The Bonlee area
6. The area just west of Chatham/Wake County line near US 64/NC 751 intersection
7. Northern Chatham within 15-501 corridor
8. NC 751 near Durham
Available Industrial Properties
Site Name # of Acres
Wolfe Property 12.23
North Chatham Center 56
Powell Place 60
Gilliland Heirs 68
Fox Property 84
Fox Property Pittsboro 100
Welford Harris Property 126
Aero Industrial Park 234
Central Carolina Business 380
Siler's Landing 694
Total 1,814
Available Commercial/
Industrial Buildings
Building NameAvailable Sq.
Ft.
581 E Third Street (Stout Interiors) 9,600
Jordan Lake Business Center 18,000
Chatham Novelties Company 72,269
Chatham Warehouse Leasing 200,000
Goldston Building 202,000
Weaknesses
Chatham Weaknesses
Income:
Gap between income levels of residents and average wages paid by businesses
Median household income (8th in NC) and per capita personal income (3rd).
Wage rates in Chatham are lower than the state average (37th)
The Carolina Center for Competitive Economies (C3E) Kenan Institute for Private Enterprise
Weekly Wage 2006 1st Quarter
$556$627
$722$683
$767
$557
$830
$744
$1,136
$0.00
$200.00
$400.00
$600.00
$800.00
$1,000.00
$1,200.00
Cha
tham
Ala
man
ce
Dur
ham
Gui
lford
Lee
Ora
nge
Ran
dolp
h
Wak
e
Nor
th C
arol
ina
Chatham Weaknesses
Employment:
Manufacturing employment has remained
stagnant since 1990, yet it continues to be
the largest private sector employment.
Chatham’s employment concentrations are
highest in the lowest paying sectors.
Wage rates in Chatham are lower than the
region and lower than the state average
across most industry sectors. The wage
disparity is large in some sectors.
Private Sector Employment 1990, 2005
57
43
75
8 12
58
62
0
50
7
10
8
18
57
56
91
19
13
18
06
84
0
83
0
54
5
22
88
0
1000
2000
3000
4000
5000
6000
7000
Manf. Health Care Retail Construction Accom &
Food
Professional Other
1990
2005
Chatham/NC Wage Variance
-$60,000
-$40,000
-$20,000
$0
$20,000
Tota
l P
riv
ate
Industr
y
Agric
ulture
Forestr
y
Min
ing
Constr
uction
Manufa
ctu
rin
g
Whole
sale
Trade
Reta
il T
rade
Transporta
tion
and
Info
rm
ation
Fin
ance a
nd
Insurance
Real E
sta
te a
nd
Renta
l and
Profe
ssio
nal
and T
echnic
al
Managem
ent of
Com
panie
s a
nd
Adm
inis
trative
and W
aste
Educational
Servic
es
Health C
are a
nd
Socia
l
Arts
Ente
rta
inm
ent
Accom
modation
and F
ood
Oth
er S
ervic
es
Ex. P
ublic
Uncla
ssifie
d
esta
blishm
ents
Chatham’s Low Wage Structure
Chatham Private Employment
Total, all industries 14,333
• Natural Resources and Mining 396
• Construction 837
• Manufacturing 5,691
• Trade, Transportation, and Utilities 2,488
• Information 71
• Financial Activities 310
• Professional and Business Services 1,005
• Education and Health Services 1,989
• Leisure and Hospitality 1,107
• Other Services 391
• Unclassified 49
Chatham Private Employment
Manufacturing
40%
Trade,
Transportation, and
Utilities
17%
Information
0%
Financial Activities
2%
Professional and
Business Services
7%
Other Services
3%
Unclassified
0%
Natural Resources
and Mining
3%
Construction
6%
Leisure and
Hospitality
8%
Education and
Health Services
14%
Closings and
Permanent Layoffs
In 2005, Chatham County had four closings
and one layoff leading to 340 lost jobs.
In 2004, Chatham County had 2 closings and
96 lost jobs. (NC ESC)
In 2004, Chatham County had 0 new jobs
announced and 65 new jobs announced in
2005 (as of Dec. 05) (NC Commerce)
Regional Workforce
Projections
Mid-Carolina Workforce Projections
0
10000
20000
30000
40000
50000
60000
70000
80000
Con
stru
ctio
n
Edu
c/Hea
lth S
erv.
Fina
ncial
Goo
ds-P
rodu
cing
Gov
ernm
ent
Info
rmat
ion
Leisur
e/Hos
p.
Man
ufac
turin
g
NR/M
ining
Oth
er
Pro
f.
Ser
vice
s-Pro
vidi
ng
Trad
e/Tr
ans/
Util
2002 2012
Source: Mid-Carolina Area Workforce Investment Act Projections. Mid-Carolina includes Chatham, Lee, Harnett, & Sampson
Counties
Annualized Growth Rate, 2002-2012
1.48
3.1
2.15
0.63
2.25
1.45
2.68
0.77
2.04
3.39
2.52
1.7
-0.38
-1 -0.5 0 0.5 1 1.5 2 2.5 3 3.5 4
Construction
Educ/Health Serv.
Financial
Goods-Producing
Government
Information
Leisure/Hosp.
Manufacturing
NR/Mining
Other
Prof.
Services-Providing
Trade/Trans/Util
Source: Mid-Carolina Area Workforce Investment Act Projections. Mid-Carolina includes Chatham, Lee, Harnett, &
A Snapshot of Some
Established Firms in
Chatham
Chatham’s Est’d Firms (236)
Trade, Transp, and
Utilities
28%
Financial Activities
6%Professional and
Business Services
9%
Education and
Health Services
17%
Manufacturing
17%
Construction
9%
Natural resources
and mining
3%
Leisure and
Hospitality
5%
Other Services
4%
Information
2%
Chatham’s Est’d Firms (236)
Chatham Company Size
Chatham Private Employers by Size (1,181 / 14,276)
0-4
62%
5-9
17%
10-19
11%
100-249
1%
20-49
7% 50-99
2%
Chatham Weaknesses
Chatham is not well represented by
business concentrations identified as
regional economic development
priorities.
The Carolina Center for Competitive Economies (C3E) Kenan Institute for Private Enterprise
Chatham’s Economic Structure
Industry Location Quotient
Measures share of regional industry sector
employment relative to national standard
%US employment in industry sector = 1.0
Local Value < 1.0 = less than US employment share
Local Value > 1.0 = more than US employment share
Industry LQs
NC Chatham
Natural Resources and Mining 0.66 1.77
Construction 1.1 0.89
Manufacturing 1.38 3.1
Trade, Transportation, and Utilities 1.00 0.75
Information 0.87 0.18
Financial Activities 0.83 0.3
Professional and Business Services 0.91 0.46
Education and Health Services 0.94 0.93
Leisure and Hospitality 0.97 0.67
Other Services 0.78 0.7
Unclassified 1.55 1.35
NC Chatham Variance LQ Jobs
Total Private Industry $35,776 $27,300 -$8,476 14,275
Agriculture Forestry Fishing & Hunting $25,636 $37,648 $12,012 High 438
Mining $58,812 $19,344 -$39,468 High 52
Construction $35,100 $29,900 -$5,200 Low 939
Manufacturing $42,692 $29,120 -$13,572 Very High 5,373
Wholesale Trade $51,168 $36,036 -$15,132 Low 426
Retail Trade $23,140 $23,088 -$52 Low 1,770
Transportation and Warehousing $36,296 $29,432 -$6,864 Low 239
Information $54,548 $31,720 -$22,828 Very Low 63
Finance and Insurance $64,428 $38,272 -$26,156 Very Low 191
Real Estate and Rental and Leasing $33,488 $37,232 $3,744 Very Low 70
Professional and Technical Services $53,664 $41,236 -$12,428 Low 535
Management of Companies and Enterprises $79,248 $44,772 -$34,476 Low 31
Administrative and Waste Services $24,388 $22,048 -$2,340 Low 403
Educational Services $35,100 $26,156 -$8,944 Avg. 81
Health Care and Social Assistance $34,528 $23,556 -$10,972 Avg. 2,152
Arts Entertainment and Recreation $25,064 $19,864 -$5,200 Low 228
Accommodation and Food Services $12,792 $12,584 -$208 Low 789
Chatham’s Industry LQs
High LQ Industries
Manufacturing = 3.10
Natural Resources and Mining = 1.77
Low LQ Industries
Information = 0.18
Financial Activities = 0.30
Professional/Business Services = 0.46
Leisure/Hospitality = 0.67
RTRP Industry Clusters
Pharmaceutical And Medical Technology
Information Technology and Instruments
Chemicals And Plastics
Metalworking And Industrial Machinery
Transportation, Shipping And Logistics
Vehicles Parts Assembly
Food Products
Apparel, Textiles And Leather Goods
Wood Products And Furniture
Business Support Services
RTRP Industry Clusters
RTRP Cluster Firms
Telecom
Motorvehicle
Wood Prods
Transport
Apparel
ChemPlas
Pharma
RTRP Cluster FirmsTelecom
Motorvehicle
Wood Prods
Transport
Apparel
ChemPlas
Pharma
Preliminary Findings
Chatham’s supplies workforce for RTRP clusters An essential asset is in place, while others may be lacking
Chatham’s LQs highest in lower paying sectors Need to move from cost-competitive to value-competitive economic
development strategy
Chatham is not benefiting from RTRP clusters Competitive position in RTRP region needs clarification
Targeted efforts required to integrate into RTRP economy
Next Steps in Industry Cluster
Analysis
“Chatham-centric” cluster study to identify
competitive opportunities and targets
Inventory economic assets to identify
weaknesses in competitive position
Identify Chatham’s “gazelles” – fast growing
locally based firms
Perform entrepreneurial economy assessment
Chatham Weaknesses
Planned areas for economic development are not served or are underserved by water and sewer infrastructure.
This may limit the type of and location of future businesses
Limited high-speed Internet access. Long-distance telephone charges for within county calls.
Planned residential developments may strain infrastructure capacity
Chatham Weaknesses
Commuting:
Highest share of residents commuting outside
of the county for employment within the region
and the longest commute times in the region
Commuters to regional counties earn
considerably higher wages across a variety of
business sectors
Percent of Workers Commuting Outside of County of
Residence 2000
55.3%
25.1% 25.1%
12.2%
42.4% 41.3%
19.5%
26.4%28.4%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Chatham Alamance Durham Guilford Lee Orange Randolph Wake North
Carolina
The Carolina Center for Competitive Economies (C3E) Kenan Institute for Private Enterprise
67%
61%
53%
45%
3% 4%
8%11%10%
18% 18% 17%
3%4%
7%11%
0%
10%
20%
30%
40%
50%
60%
70%
80%
1970 1980 1990 2000
Chatham
Durham
Orange
Wake
Chatham County Commute Patterns
1970-2000
Commute Time To Work 2000
27.3
21.6 21.2 21.4 22.0
24.723.6
24.024.1
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Cha
tham
Alam
ance
Dur
ham
Gui
lford
Lee
Ora
nge
Ran
dolp
h
Wak
e
Nor
th C
arol
ina
Min
ute
s
Chatham County Commuter Wage
Differences in Manufacturing
($25,270 annual salary) (3015 employment)
Alamance
$3,808
Durham
$45,434
Guilford
$821
Lee
$1,960
Orange
$40,075
Randolph
-$3,855
Wake
$10,563
($10,000) $0 $10,000 $20,000 $30,000 $40,000 $50,000Source: Bureau of Economic Analysis: Regional Economic Accounts
(335)
(410)
(105)
(590)
(135)
(540)
(105)
Chatham County Commuter Wage Differences in
Services ($27,760) (2140 employment)
Durham
$15,671
Guilford
$13,191
Lee
-$5,547
Orange
-$1,045
Randolph
-$2,435
Wake
$11,199
-$10,000 -$5,000 $0 $5,000 $10,000 $15,000 $20,000
Source: Bureau of Economic Analysis: Regional Economic Accounts
(745)
(120)
(1140)
(280)
(110)
(995)
Chatham County Commuter Wages Differences in
Wholesale/Retail Trade ($22,290) (1270 employment)
Durham
$38,153
Guilford
$8,689
Lee
$2,040
Orange
$4,576
Randolph
-$4,555
Wake
$17,371
-$10,000 -$5,000 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000Source: Bureau of Economic Analysis: Regional Economic Accounts
(345)
(145)
(325)
(190)
(70)
(135)
Chatham County Commuter Wage Differences
Finance, Insurance, and Real Estate ($25,903)
(450 employment)
Durham
$29,707
Guilford
$11,259
Lee
-$4,946
Orange
$25,445
Randolph
$7,010
Wake
$31,174
-$10,000 -$5,000 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000
Source: Bureau of Economic Analysis: Regional Economic Accounts
(260)
(25)
(220)
(70)
(55)
(425)
Chatham Weaknesses
This high commuting rate is detrimental to existing Chatham retail businesses and to the local government tax base.
Chatham has the lowest retail sales per capita in the region.
Chatham “leaked” approximately 55% of its proportional retail sales to other NC counties.
When Chatham’s high resident income is taken into account, the leakage rate increases to 64%.
Retail Sales 2000-2005
$0
$1,000,000,000
$2,000,000,000
$3,000,000,000
$4,000,000,000
$5,000,000,000
$6,000,000,000
$7,000,000,000
$8,000,000,000
$9,000,000,000
$10,000,000,000
Chatham Alamance Durham Guilford Lee Orange Randolph
Retail Sales FY2000 Retail Sales FY2005
Per Capita Retail Sales
$7
,27
6
$1
2,3
90
$1
5,4
74
$2
1,9
54
$1
4,9
80
$9
,42
3
$8
,00
7
$1
8,4
97
$1
5,9
68
$7
,98
9
$1
3,5
01
$2
0,9
98
$2
1,5
63
$1
5,3
70
$1
1,7
78
$8
,84
2
$1
9,3
52
$1
7,6
90
$0.00
$5,000.00
$10,000.00
$15,000.00
$20,000.00
$25,000.00
Cha
tham
Alam
ance
Dur
ham
Gui
lford
Lee
Ora
nge
Ran
dolp
h
Wak
e
Nor
th C
arol
ina
Per Capita Retail Sales Y2000 Per Capita Retail Sales Y2005
Per Capita Retail Sales in 2005
$7
,98
9
$1
3,5
01
$2
0,9
98
$2
1,5
63
$1
5,3
70
$1
1,7
78
$8
,84
2
$1
9,3
52
$1
7,6
90
$0.00
$5,000.00
$10,000.00
$15,000.00
$20,000.00
$25,000.00
Cha
tham
Alam
ance
Dur
ham
Gui
lford
Lee
Ora
nge
Ran
dolp
h
Wak
e
Nor
th C
arol
ina
Retail Pull Factors
Pull Factors are measures of the relative strength of the community’s retail market
Pull factors are ratios used to estimate the proportion of local sales captured by the community compared to the state.
A pull factor > 1 indicates that the local capture of expenditures exceeds the state average, while a pull factor < 1 indicates a lower percentage of local dollars are captured.
Following are pull factors for Chatham and regional counties. These pull factors are designed to provide a snapshot of the economy and thus are not adjusted for per capita income.
Regional Retail Pull Factors
(without controlling for income)
0.46
0.78
1.37
0.94
0.50
1.16
1.00
1.19
0.67
0.97
0.59
0.87
1.09
1.00
0.50
1.22
0.76
0.45
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
Chatham Alamance Durham Guilford Lee Orange Randolph Wake North
Carolina
Pull Factor Y2000 Pull Factor Y2005
Chatham Resident Retail Sales
(controlling for income)
In Chatham
36%
Outside
Chatham
64%
The Impact of Retail
Sales Leakages
Chatham residents shop outside of the County.
When controlling for income:
Approximately 64 cents of every retail
dollar spent by Chatham County
residents is spent outside the county.
Results in about $7.7 million in lost local
sales tax revenue.
Chatham Weaknesses
Tourism and cultural assets underutilized
Limited tourism impact given Chatham cultural
and recreational opportunities
High population to physician ratio
2005 Tourism Expenditures (in millions)
$21
$120
$468
$949
$53$127
$92
$1,219
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Chatham Alamance Durham Guilford Lee Orange Randolph Wake
Source: NC Dept. of Commerce, http://www.nccommerce.com/tourism/econ/2005county-alpha.pdf
Tourism Employment Impact
1601,270
7,190
12,880
6201,700
910
17,290
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Chatham Alamance Durham Guilford Lee Orange Randolph Wake
Population/physician ratio, 2004
754
145
436
588
111
1041
480 499
1333
0
200
400
600
800
1000
1200
1400
Chatham Alamance Durham Guilford Lee Orange Randolph Wake North
CarolinaSource: NC Commerce County Profiles-http://cmedis.commerce.state.nc.us/countyprofiles/f iles/xls/static/CountyProfiles_2005Q4.xls
Summarizing Chatham’s
Weaknesses
Manufacturing employment has remained stagnant since 1990, yet it continues to be the largest private employment sector.
Chatham County has a larger share of their residents commuting outside of the county for employment than surrounding counties.
This leads to Chatham County residents having the longest average commute time to work in the region.
Chatham County has the lowest total retail sales, the lowest per capita retail sales, and the lowest retail pull factor in the region
Opportunities
Chatham Opportunities
Workforce
Chatham’s high level of commuting disguises
the untapped workforce for higher wage
companies.
Chatham has both well-educated
professionals and highly-skilled workers.
This breadth of workforce will enable a diverse
Chatham economy.
Community college system to train/retrain
workers and assist small businesses
Chatham Opportunities
Retail sales
Chatham is underserved by retail
development. Chatham has the opportunity to
be selective is its retail economy.
Improving Chatham’s retail economy will
increase the sales and commercial property
tax base to serve Chatham’s growing
population
Chatham Opportunities
Immediate economic development opportunities:
Expansion of existing firms
Identify and serve existing firms seeking to expand
Capture of RTP/Triad technology start-up companies
Identify expanding firms seeking location of
production facilities
Tourism
Utilize Chatham’s heritage and natural resources to
build a stronger tourism economy
Growing arts community and arts incubator
Chatham’s Opportunity
Chatham has the infrastructure and workforce to
become the high value production location for
RTP and Triad regions.
Support expansion of existing companies
Recruit companies locating in the RTP/Triad regions
Attract production locations of emerging growth
companies
Entrepreneurial focused retail and service economy
Threats
Chatham Threats
Residential development without economic development threatens Chatham’s quality of life.
Residential tax base alone does not pay for itself
Chatham Threats
Current economy too concentrated in low-wage, declining sectors
Low-wage, low-skill employees are susceptible to economic downturns and lack competitive job skills.
Threats
Perceived (or real?) lack of
consensus on Economic
Development priorities:
• This limits Chatham’s ability to
develop and pursue a
comprehensive economic
development strategy
• Desired types of businesses?The Carolina Center for Competitive Economies (C3E) Kenan Institute for Private Enterprise
Transitioning Chatham
Moving from a traditional cost based
economic development model to a
progressive economic development
strategy.
Where Does Chatham Stand?
Low cost location reactively offering marginally adequate
conventional economic development assets to cost-
reduction prospects
Workforce
Low-wage, low-skill local workforce
Higher skill supplier to RTP region
Infrastructure
Conventional land, sites, properties with excellent
transportation
Business Climate
Low taxes with generous incentives
Conventional ED Assets
Workforce
Skills, Quality, Quantity, Cost
Infrastructure
Land, Sites, Properties
Transportation
Utilities: Water, Sewer, Elec., Gas, Internet
Business Climate
Incentives, Low Taxes, Less Regulation
Conventional ED Outcomes
traditional industrial development prospects
lower skill/wage/value-added cost-reduction
based location decisions
reactive, incentive-based development
methodology
inconsistent, non-strategic and ad hoc decision-
making
Progressive ED Assets
High Quality of Life
Proximity to Triangle and Triad
High quality resident workforce
Heritage and cultural assets
Entrepreneurial economy
Educational resources
Green Space/Smart Growth priorities
Diverse and creative communities
Progressive ED Outcomes
recruit and retain clean and high-wage
businesses
foster small businesses and entrepreneurship
recreation, arts and cultural facilities and
services to attract new economy businesses
incentives to businesses creating permanent
high-wage jobs with benefits to its employees
Our Objectives:
To construct a community supported economic
development plan.
To redefine Chatham’s competitive position within
the RTP/Triad regions
To identify existing industry/business needs and
opportunities.
To accurately inventory Chatham’s labor force.
To refocus industrial development on high value
companies paying higher wages
The Carolina Center for Competitive Economies (C3E) Kenan Institute for Private Enterprise
Chatham’s Goal:
More and Better Jobs
Where People Live
Planning to Achieve the
Goal
Economic Vision Plan
Chatham County awarded C3E a $154,000 contract to develop an economic vision plan
(April 2007-March 2008).
Task One: Community Engagement in Economic Development Priorities
Task Two: Economic Development Scan
Task Three: Comprehensive Workforce Inventory
Task Four: Targeted Industry Cluster Characterization
Task Five: Existing Industry Needs/Opportunities Assessment
Task Six: Comparable Communities Assessment
Task Seven: Economic Development Vision Plan
Task Eight: Economic Development Organization Optimization
The Carolina Center for Competitive Economies (C3E) Kenan Institute for Private Enterprise
Economic Development
Deliverables
Expansion prospects from among existing Chatham County companies;
RTP area growth companies targeted for location of production activities and company-level descriptions of the Piedmont Triad and RTRP industry clusters most appropriate for Chatham County;
Specific company prospects outside of North Carolina for targeting;
Market-articulated infrastructure needs and priorities list;
Entrepreneurial economy assessment;
Workforce asset inventory; and
Recommendation of strategic economic development organization and management restructuring.
The Carolina Center for Competitive Economies (C3E) Kenan Institute for Private Enterprise