UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT...

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UNC Center for Competitive Economies (C 3 E) 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

Transcript of UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT...

Page 1: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 2: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

Organization of SWOT

Overview of general demographic/economic

data

Description and Purpose of SWOT

SWOT Analysis

Objectives and Goals of Economic

Development Strategic Plan

Page 3: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

Demographic Data

Page 4: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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)

Page 5: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 6: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 7: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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%

Page 8: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

What is a SWOT Analysis?

A strategic tool to assess the strengths,

weaknesses, opportunities, and threats

facing an organization.

Page 9: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

SWOT Characterization

Strengths

Positive characteristics

Internally focused

Opportunities

Positive characteristics

Externally focused

Weaknesses

Negative characteristics

Internally focused

Threats

Negative characteristics

Externally focused

Page 10: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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.

Page 11: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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.

Page 12: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

Strengths

Page 13: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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.

Page 14: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 15: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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+

Page 16: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 17: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 18: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 19: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 20: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 21: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 22: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 23: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 24: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

Weaknesses

Page 25: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 26: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

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Wak

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Nor

th C

arol

ina

Page 27: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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.

Page 28: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 29: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 30: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 31: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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%

Page 32: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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)

Page 33: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

Regional Workforce

Projections

Page 34: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 35: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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, &

Page 36: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

A Snapshot of Some

Established Firms in

Chatham

Page 37: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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%

Page 38: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

Chatham’s Est’d Firms (236)

Page 39: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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%

Page 40: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 41: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 42: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 43: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 44: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 45: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 46: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

RTRP Industry Clusters

RTRP Cluster Firms

Telecom

Motorvehicle

Wood Prods

Transport

Apparel

ChemPlas

Pharma

Page 47: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

RTRP Cluster FirmsTelecom

Motorvehicle

Wood Prods

Transport

Apparel

ChemPlas

Pharma

Page 48: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 49: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 50: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 51: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …
Page 52: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 53: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 54: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 55: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 56: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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)

Page 57: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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)

Page 58: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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)

Page 59: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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)

Page 60: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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%.

Page 61: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 62: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 63: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 64: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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.

Page 65: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 66: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

Chatham Resident Retail Sales

(controlling for income)

In Chatham

36%

Outside

Chatham

64%

Page 67: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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.

Page 68: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

Chatham Weaknesses

Tourism and cultural assets underutilized

Limited tourism impact given Chatham cultural

and recreational opportunities

High population to physician ratio

Page 69: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 70: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 71: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 72: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 73: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

Opportunities

Page 74: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 75: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 76: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 77: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 78: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

Threats

Page 79: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

Chatham Threats

Residential development without economic development threatens Chatham’s quality of life.

Residential tax base alone does not pay for itself

Page 80: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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.

Page 81: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 82: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

Transitioning Chatham

Moving from a traditional cost based

economic development model to a

progressive economic development

strategy.

Page 83: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 84: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 85: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 86: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 87: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 88: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 89: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

Chatham’s Goal:

More and Better Jobs

Where People Live

Page 90: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

Planning to Achieve the

Goal

Page 91: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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

Page 92: UNC Center for Competitive Economies (C3E) · UNC Center for Competitive Economies (C3E) A SWOT Analysis for Chatham County Revised version: June 1, 2007 Brent Lane, Executive …

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