N.C. Department of Commerce

NCEDA Mid-Winter Conference Update

Dale B. CarrollDeputy Commerce Secretary/COO

March 4, 2011

2010 Sales Results

2

Projects Assigned 436Projects Announced 155Jobs Announced 17,360Jobs Retained 4,160Investment Announced $3.9 BExisting Industries Visited 1,724

2009 vs. 2010

3

Projects Assigned 2% (429 v. 436)

Projects Announced 5% (148 v. 155)

Jobs Announced 3% (16,840 v. 17,360)

Investment Announced

37%

($ 2.9B v. $ 3.9B)

2010 Projects Assigned

436 Projects Assigned•270 New•166 Expansion-Related

New Assignments 62%Expansion-Related Assignments 38%104% of 420 Assignment Goal

4

62%

28%

5% 4%1%

NewExpansionRetention/Ex-pansionConsolidation ExpansionRetention & No Jobs or Investment

Top 5 Sources for 2010 Projects

1.39% Local/County Developer (138)2.23% Direct Call from Company (101)3.16% Site Selection Consultant (71)4.6%Regional Partnership (26)5.5%Foreign Offices (20)

Sample of Primary Sources for the 436 Projects Assigned in 2010, Totals will not equal 100%

5

2010 Projects Announced

155 Projects Announced•60 New•95 Expansion-Related

New Announcements 39% Expansion-Related Announcements 61%103% of 150 Announcement Goal

6

46%

39%

8%7%

ExpansionNewRetention/Ex-pansionConsolidation Expansion

2010 Jobs Announced17,360 Jobs Announced•5,502 New•11,858 Expansion-Related

New Jobs Announced 32% Expansion-Related Jobs Announced 68%101% of 17,200 Jobs Announced Goal

7

50%

32%

10%

8%

Expansion

New

Consolidation Ex-pansion

Retention/Expansion

Top 10 Announcements by JobsCompany New/

Exp# of Jobs

Primary Activity

County

Siemens Expansion 825 Manufacturing

Mecklenburg

IBM Corporation

Expansion 600 Service/Sales Durham

Reser’s Fine Foods

Expansion 500 Manufacturing

Halifax

Pierre Foods Expansion 500 Manufacturing

Catawba

Hewitt & Associates

Expansion 463 Service/Sales Mecklenburg

American Red Cross

New 440 Service/Sales Mecklenburg

Fountain Power Boat Industries

Expansion 411 Manufacturing

Beaufort

Sonopress LLC Expansion 408 Manufacturing

Buncombe

Caterpillar New 392 Manufacturing

Forsyth

Hatteras Yachts Inc

New 350 Manufacturing

Craven8

2010 Jobs Retained4,180 Jobs Retained•2,362 Retention/Expansion•1,818 Consolidation Expansion

9

57%43%

Retention/Ex-pansionConsolidation Expansion

2010 Investment Announced

$ 3.9 B Investment Announced•$2.4 B New•$1.56 B Expansion-Related

New Investment Announced 61%Expansion-Related Investment Announced 39%108% of $3.7 B Investment Announced Goal 10

61%

35%

3% 1%

NewExpansionRetention/Ex-pansionConsolidation Expansion

Top 10 Announcements by Investment

Company New/Exp

Investment

Primary Activity

County

Facebook New $462,800,000

Data Center Rutherford

American Express New $460,000,000

Data Center Guilford

Caterpillar New $426,000,000

Manufacturing Forsyth

Clearwater Paper New $260,000,000

Manufacturing Cleveland

Certain Teed Gypsum

New $160,000,000

Manufacturing Person

Malt-O-Meal New $135,000,000

Manufacturing Randolph

Cree, Inc. Expansion

$135,000,000

Manufacturing Durham

Siemens Energy Expansion

$135,000,000

Manufacturing Mecklenburg

Novo Nordisk Pharmaceutical

New $131,400,000

Assembly Johnston

Hydac Technology New $96,000,000

Manufacturing Mecklenburg

11

2010 International Projects Announced

12

44 Projects Announced• 28% of Total Projects Announced

$944 M Investment Announced•24% of Total Investment Announced

4,221 Jobs Announced•24% of Total Jobs Announced

2010 International Projects Announced

13

44 International Projects Announced

Austria 4

Belgium1

Bermuda1

British Virgin Islands 1

Canada 7

Czech Republic 1

Denmark1

Germany 8

France 2

Israel 1

Italy 2

Japan 5

Malaysia 1

Sweden 1

Switzerland 3

Taiwan 1

United Kingdom 4

2010 Port and Rail Service Requests

14

Based on projects assigned in 2010

8 projects assigned in 2010 requested port service

14 projects assigned in 2010 requested rail service

2010 Building Square Footage Requests by Primary Activity

<20,00

0

20,00

0-30,0

00

30,00

1-40,0

00

40,00

1-50,0

00

50,00

1-60,0

00

60,00

1-70,0

00

70,00

1-80,0

00

80,00

1-90,0

00

90,00

1-100

,000

100,0

01-15

0,000

150,0

01-20

0,000

200,0

01-25

0,000

250,0

01-30

0,000

300,0

01-35

0,000

>350,0

0002468

101214161820

2 1 1 2 1 1 2

2 31

13

11

2

3 21

2 5

4

910

3 3 4 4

13

73

7 4

71

1

1

12 1

2

1

21

1

1

AssemblyCorp HQ RelocationData CenterManufacutringR&DService/SalesWarehouse/Distribution

15

Based on projects assigned in 2010

2010 Site Acreage Requests by Primary Activity

<1010

-2021

-30

31-40

51-60

71-80

81-90

91-10

0

101-1

50

451-5

00

>1000

0

2

4

6

8

10

12

7 3

10

42

42

22

1

1 1 11

1 1 1

1

1

AssemblyCorp HQ RelocationData CenterManufacutringR&DService/SalesWarehouse/Distribution

16Based on projects assigned in 2010

2010 Existing Industries Visited

113 100133 144

121149

125166 153 157

191 172

050

100150200250

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

17

1,724 Existing Industries Visited

72% of 2,400 Existing Industries Visited Goal

2010 Existing Industry Referrals Made

18

27%

27%17%

16%

8%5%1%

Community Colleges

SBTDC

International Trade Division

NC Military Business Center

Universities

Department of Environment and Natural Resources

Department of Transporta-tion

2010 Existing Industry Top Challenges

19

28%

23%13%

9%

8%

6%

5%4% 4% Developing New Markets

Withstanding State and Local EconomyRecruiting, Screening and TrainingIdentifying Financing Op-tionsWorking CapitalDealing with Rising Utility CostsAbsorbing Rising Health CostsFinding SuppliersManaging Competition

2010 Total B&I Announced Projects

20

2001 to 2010 Business & Industry Sales History

Year Assignments

Announcements

Jobs Investment

2001 478 143 15,718

$3,211,641,503

2002 480 122 12,120

$1,200,755,016

2003 502 145 10,501

$1,208,697,000

2004 459 171 19,476

$2,954,688,570

2005 440 203 18,937

$3,070,798,591

2006 414 178 22,237

$2,649,239,180

2007 391 165 15,927

$3,327,333,024

2008 439 144 19,350

$5,099,274,587

2009 429 148 16,840

$2,886,335,904

2010 436 155 17,360

$3,978,851,765

TOTAL 4,468 1,569 168,466

$29,587,615,140

21

2011 Sales Goals

22

Projects Assigned 435Projects Announced 150Jobs Retained 4,180Jobs Announced 17,700Investment Announced $3.9 BTax Base Saved $83 MExisting Industries Visited 1,800

American Recovery and Reinvestment Act

Examples from N.C. Commerce Divisions

• Community Development Block Grant Recovery (CDBG R) – 41,331 linear ft of infrastructure (water, sewer, streets)

• Recovery Zone Bonds – $1 billion allocated; $800 million utilized

• Appliance Rebate Program – $9.5 million allocated for rebates; over 4,900 energy efficient appliances purchased

• JobsNOW “12 in 6” Program – From August 2009 to January 2011 18,994 citizens have received training

Status of Reorganization at

N.C. Commerce• Merger of N.C. Commerce & ESC pending

at Executive Branch & NC General Assembly

• State Energy Office & Weatherization Assistance Program fully implemented within N.C. Commerce

• Commissioner of Small Business fully implemented at N.C. Commerce

• B&I Division & BLNC Division reorganizations complete

Governor Beverly Perdue, Commerce Secretary Keith

Crisco and Deputy Commerce Secretary Dale Carroll wish to

thank NCEDA and it’s members for your support of economic

development.