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First ‘State of Region’ Report Shows Recession Has Ended

The Research Triangle Region’s economy has emerged from recession, evidenced by rising employment, wages and consumer spending.

With dozens of organizations in 13 counties cooperating on a targeted job-creation strategy, the region has the opportunity to remain a top area for new jobs and business investment for decades.

That was the assessment given Tuesday to hundreds of regional business, government and community leaders by economic developers hosting the first “State of the Research Triangle Region” event. The region comprises Chatham, Durham, Franklin, Granville, Harnett, Johnston, Lee, Moore, Orange, Person, Vance, Wake and Warren counties.

“I believe we can continue to be successful if we act together and focus on innovation,” said former N.C. Gov. James B. Hunt, who chaired the regional task force that developed the regional job-creation strategy, Staying On Top: Winning the Job Wars of the Future. “We have an opportunity to continue to be a great region, an opportunity to spread the prosperity to more counties and more people, and an opportunity to improve the quality of life for every citizen.”

Charles Hayes, president and CEO of the Research Triangle Regional Partnership (RTRP), agreed.

“Most rankings have this region as a top place to live, work, go to school, start a business, grow old, be young — you name it,” said Hayes, whose organization coordinates economic development for the 13-county region. “Many regions around the country used to be great. We don’t want those of us who are still around 25 years from now to talk about how great this place ‘used’ to be back at the turn of the century. We must take steps now to compete globally to ensure we win the job wars of the future.”

Several economic trends show that the regional economy has gained strength and is growing again, RTRP Executive Vice President Ted Abernathy told attendees. Among them:

  • The unemployment rate has dropped more than 2 percentage points to 4 percent in March, from its high of 6.1 percent in 2002.

  • Employment rose by almost 19,000 workers to 838,141 in 2003, above the region’s average annual growth of 16,789 since 1990 and in sharp contrast to the more than 10,000 jobs lost in 2002.

  • Layoffs declined to 8,218 in 2003 from a high of 18,537 in 2000, but remain a concern.

  • Annual average wage increases have begun to accelerate, at 2.6 percent in 2003, up from 1.3 percent in 2002.

  • Retail sales climbed 5 percent in 2003 compared to flat sales in 2001 and a 3 percent rise in 2002.

    The Research Triangle Region enjoys an enviable position among regional economies with which it competes, with high comparative rankings, strong projected job growth, moderate cost of living and one of the country’s most educated populations, Abernathy said.

    The region continues to lose manufacturing jobs — a total 17 percent since 1998, Abernathy said.

    The commercial real estate market has bottomed out and is showing some signs of improvement, but vacancy rates remain very high. Available space dampens prospects for near-term construction, which limits tax base growth for local governments. But vacant commercial space aids business recruitment, offering an attractive mix of ready-to-occupy properties for companies that expand or relocate, he said.

    The region’s Staying on Top job-creation strategy seeks to address these challenges head on, Hayes said.

    The five-year, $5 million effort aims to create 100,000 jobs in the region and boost employment in all 13 counties. The strategy calls for nurturing the growth of 10 areas in which the region is a world leader and that fit its mix of rural and urban assets.

    The 10 areas are: pharmaceuticals, biological agents and infectious diseases, agricultural biotechnology, pervasive computing, advanced medical care, analytical instruments, nanoscale technologies, informatics, vehicle component parts, and logistics and distribution.

    RTRP is coordinating the efforts of dozens of organizations across the region to implement the plan. The “State of the Region” event is designed to benchmark and measure progress.

    RTRP is a public/private partnership that promotes economic development for the 13-county region. For more information, contact Research Triangle Regional Partnership at (919) 840-7372 or visit www.researchtriangle.org.

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