State commerce secretary lauds High Point's prosperity
North Carolina Secretary of Commerce Jim Fain addresses the High Point Economic Development Corp. meeting at GTCC last Thursday.
November 26, 2008
by Ogi Overman - Editor
Pick an adjective to describe the state of the economy and it will be a derivative of “bad.” The word “floundering” comes to mind, as do “sour,” “miserable,” “failing” and “bleak.”
So why were there so many smiles and pats on the back at last Thursday's annual meeting of the High Point Economic Development Corporation? Given the daily barrage of tumbling stock prices, bankrupt automakers, taxpayer bailouts and lack of consumer confidence, were these folks delusional, living in either a fantasy world or a state of denial?
Well, turns out that this assembled group of community leaders are living in the same reality-based world as everyone else; it's just that their community seems to be bucking the national downward trend. Instead of net job losses, High Point is actually creating more jobs than it is losing. Instead of companies moving abroad, many of them are relocating to High Point and the greater Triad region. In the face of sad statistics, most of High Point's economic indicators are pointing upward.
So, what is it about this town of 100,000 that sets it apart from much of the rest of the country? In a local economy so dependant on an industry - furniture - that has all but relocated to China and to a lesser extent another - textiles - that is now global, how has this burg managed to not only survive but prosper?
According to N.C. Secretary of Commerce Jim Fain, who was the keynote speaker at the Economic Development Corp. luncheon, the answer can be found in several factors, chief among them leadership.
“My impression from afar is that your civic, public and private sector leadership has always held itself accountable for making economic development a top priority,” he said, “and it shows. This type of accountable leadership is what makes High Point the great place to live and work that it is.”
Fain, who will leave his commerce post when the new administration takes office, painted a picture of how the state found itself in a dismal economic situation in 2001.
“When I got here we'd just come through what I'd call ‘the perfect storm' of bad economic indicators,” he said. “We'd had several hurricanes, a billion dollar revenue shortfall, the bursting of the dotcom bubble, and the impact of China's trade policy. Then to top it off came 9/11 and we found ourselves having lost 106,000 jobs. Our low ebb came in July of 2003 when we had lost 180,000 jobs, and unemployment had gone from 4% to 6.8%. It was not an auspicious start.”
Then Fain went on to describe how the state managed to rally, how “a lot of folks did a lot of good things, you included, to bring back the economy.”
“By 2005 we had filled up the holes and replaced all the jobs we'd lost,” he noted. “Since then we've added another 217,000 jobs, at a rate of 96,000 a year. By the end of 2007 we were ranked No. 4 in the country in terms of job creation, behind only Florida, California and Texas.”
The crucial elements in the turnaround - for both the state, the region and the city - was diversification from a manufacturing-based economy to a knowledge and technology-driven economy.
“We have transitioned from a labor-intensive economy into a more stable, knowledge- and technology-based environment,” he said. “The state has added 24,000 jobs in financial services, 74,000 in business and professional services and 147,000 in educational and health services. All this puts us at a comparative advantage and a long-term potential for well-paying jobs.
“Globalism has reshaped the economic order and High Point as well as the state have adapted by drawing on its entrepreneurial streak. We have successfully transitioned into an environment and quality of life that lends itself to businesses wanting to make capital investments here, which means job creation.”
High Point EDC president Loren Hill recited a litany of projects and accolades that have accrued to the city recently.
“We have been ranked No. 1 in the country two years in a row in terms of attracting new industry by Site Selection Magazine,” he said. “We created 3,100 jobs in 2007 and 2,600 in 2006. And the year before that we created 2,300 and 1,300 the previous year. All those are inside the city limits of High Point. We are consistently outperforming our larger neighbors.”
Among the industries and companies cited for local job creation were Anco-Eaglin, Merz Pharmaceuticals, Packrite, Trans Tech Pharma, Stiles Machinery, Polo Ralph Lauren, Aetna, Home Meridian, Glaston North America, Trinity Pensioin Group, Cleantechnics, Bindagraphics and La-Z-Boy.
“There are 70 internationally owned companies now located in High Point,” he added, “which is another way of diversification. We've got our work cut out for us for the next two years, but all these elements bode well for us.”
Ogi Overman can be reached at (336) 841-4933 or jtowneditor@@northstate.net.
