Solving Challenges Others Cannot

Economic Development

Trends

Christopher D. LloydMarch 23, 2008

Trends Overview

• Corporate trends • Policy trends

Corporate Trends

• Increasing internal competition for capital investment funds

• Shorter timeframes for corporate decision making

• Acceleration of project development• Devaluation of tax credits

Corporate Trends

• More attention to long-term project costs (especially property taxes)

• Increased use of internal training resources

• Increased use of out-of-town contractors and project managers

Corporate Trends

• Increased attention to DMBE contracting

• Workforce diversity• Desire flexibility in performance

agreements for market fluctuations• Increasing importance of infrastructure

incentives

Corporate Trends

• Commitment to environmental stewardship and sustainability

• Rational and uniform environmental laws

• Sinking U.S. dollar is spurring corporate investment by foreign companies

• Focus on energy costs

Policy Trends

• Shrinking budgets (real and nominal)• Increasingly complex incentives –

consultant job security• Performance based incentives

(grants) instead of tax credits• “Ombudsman” initiatives

Policy Trends

• Increasing flexibility in use of training funds/delivery platforms

• More local incentives• Site certification

Perceptions of North Carolina – The Good

• Strong ability to put lots of money on the table

• Strong pro-business climate • Right to work and proud of it!• Supportive local governments• Excellent post-secondary education

Perceptions of North Carolina – The Bad

• Aging and crumbling transportation infrastructure

• Weak international connections (ports and airports)

• Tax burden increasing• Incentives litigation

Perceptions of North Carolina – Issues to Watch

• Energy policy and politics• Environmental policy and politics• Impact of BRAC• Impact of immigration• Rural North Carolina – the Have

Nots

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