How Transportation Infrastructure Investments Stimulate Economic Development in NC
Competitive Analysis Trendspotting Economic & Workforce Strategy Fiscal Impact Analysis State and Local Policy
How Transportation Infrastructure Investments Stimulate Economic Development in NC Direct Impact-Jobs Accommodates Growth Maintains/Increases Competitiveness Increases Opportunity
The Direct Impact Jobs Salaries CONTEXT
How Transportation Infrastructure Investments Stimulate Economic Development in NC Direct Impact-Jobs Accommodates Growth Maintains/Increases Competitiveness Increases Opportunity
Our 10 million people are expected to be 12 million by 2030 Growth
Follow on twitter @tedabernathy or LinkedIn Ted Abernathy
Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming 1,000,000 800,000 600,000 400,000 200,000 0-200,000-400,000-600,000-800,000 Domestic Migration 2010-2015 for All States 650,660 192,337 160,346 2,005-104,537-266,115 The Winners The Losers Texas New York Florida Illinois Colorado New Jersey North Carolina California Arizona Michigan 180,189-153,296-191,130-132,073-269,194-425,954-653,071 736,492 159,023 124,326 Source: US Census
North Carolina Change in Population 2000 to 2013 Graham Cherokee Clay Swain Macon Burke Buncombe McDowell Haywood Jackson Madison Transylvania Yancey Henderson Polk Avery Rutherford 6.1% and over increase 2.1% to 6.0% increase Ashe Watauga Caldwell Alleghany Wilkes Alexander Iredell Catawba Lincoln Cleveland Gaston Surry Yadkin Davie Rowan Cabarrus Union Stokes Forsyth Rockingham Caswell Person Guilford Davidson Randolph Stanly Anson Montgomery Moore Chatham Lee Rich- Hoke mond Scotland Robeson Harnett Wake Bladen Columbus Franklin Johnston Sampson Warren Brunswick Halifax Northampton Nash Edgecombe Wilson Greene Wayne Duplin Pender Lenoir New Hanover Pitt Jones Onslow Hertford Bertie Martin Craven Gates Beaufort Washington Pamlico Carteret Tyrrell Hyde Dare 0.0% to 2.0% increase population decreased Source: NC Office of State Budget and Management
Data Source: NC OSBM Population Growth Will Be Uneven Across North Carolina Projected population growth, 2010-2035
United States Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Total Highway Spending Per Capita for All States (2014) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Source: US Census Bureau. 2016. "State Government Finances." https://www.census.gov/govs/state/
United States Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Total Annual Infrastructure Need for Road Repair, Clean Water, and Airports Per Capita (2013-2017) $1,200 $1,000 $800 $600 $400 $200 $0 http://www.bloomberg.com/visual-data/best-andworst/biggest-infrastructure-need-states
http://neighborhoodeffects.mercatus.org
Economic Competitiveness
Historical evidence suggests that the astonishing economic development that the United States experienced over the past two centuries was made possible by the high quality infrastructure the nation had the foresight to invest in.
Top Factors for Companies Considering New Investment 1) Availability of skilled labor 2) Highway accessibility 3) Quality of Life 4) Occupancy or construction costs (Corporate CEOs) 5) Availability buildings 6) Labor costs 7) Corporate tax rate 8) Proximity to major markets 9) State & Local Incentives 10) Energy availability and costs 11) Tax exemptions 12) Expedited or fast track permitting Source: Area Development 30 th Annual Survey of Corporate Executives, March 2016
Top Factors for Companies Considering New Investment 1) Availability of skilled labor 2) Labor costs 3) Proximity to major markets 4) State & Local Incentives 5) Availability buildings 6) Highway accessibility 7) Available land 8) Tax exemptions 9) Expedited or fast track permitting 10) Shipping costs 11) Accessibility of a major airport 12) Energy availability and costs Site Selection Consultants Source: Area Development 30 th Annual Survey of Corporate Executives, March 2016
Global CEO Survey: Drivers of Global Manufacturing Competitiveness Source: Deloitte Touche Tohmatsu Limited and U.S. Council on Competitiveness, 2016 Global Manufacturing Competitiveness Index
A New Blueprint Making the American South s Manufacturing Sector More Competitive by 2030 Foundation for the American South September 2016
25.0% Southern States Manufacturing as a Share of GSP 2015 20.0% 19.3% 19.4% 19.6% 15.0% 11.9% 17.1% 14.5% 10.8% 15.2% 12.8% 16.6% 16.2% 13.1% 10.0% 9.0% 8.6% 9.5% 5.0% 5.1% 5.5% 0.0% USA AL AR FL GA KY LA MD MS MO NC OK SC TN TX VA WV
Concentration of County Jobs in Manufacturing Graham Cherokee Clay Alleghany Ashe Northampton Surry Stokes Rockingham Gates Caswell Person Warren Watauga Halifax Hertford Wilkes Avery Yadkin Forsyth Guilford Franklin Alex- Bertie Yancey Caldwell ander Davie Nash Madison Edgecombe Iredell Davidson Burke Randolph Martin Wash- Wake ington Buncombe McDowell Catawba Chatham Wilson Haywood Rowan Pitt Swain Beaufort Rutherford Henderson Lincoln Johnston Cabarrus Lee Greene Jackson Mont- Harnett Wayne Tran- Polk Gaston Stanly gomery Moore Macon sylvania Cleveland Lenoir Craven Pamlico Union Anson Rich- Hoke mond Scotland Robeson Bladen Sampson Duplin Jones Onslow Carteret Tyrrell Hyde ` Dare Pender over 150% of state concentration between 100% and 149% of state concentration between 50% and 99% of state concentration under 50% of state concentration Columbus Brunswick New Hanover Manufacturing represents 11.21% of North Carolina jobs Source: NC Dept of Commerce http://d4.nccommerce.com/qcew 2 nd quarter 2015
Measuring Multifactor Competitiveness Workforce Innovation Manufacturing Competitiveness Infrastructure Business Climate
Business Climate Index Metrics Manufacturing Industry Health Scorecard Hourly Minimum Wage Total Effective Business Tax Rate Legal Climate Rankings State Average Rank Business Climate Rank Worker s Comp Insurance Premiums State and Local Tax Costs for Capital-Intensive Manufacturing State and Local Tax Costs for Labor-Intensive Manufacturing Air Quality Southern States Business Climate Index Performance State Average Rank Business Climate Rank Virginia 15.0 2 Maryland 22.8 25 North Carolina 15.1 4 Tennessee 22.9 26 Missouri 18.0 8 South Carolina 25.4 30 Texas 18.3 10 Oklahoma 25.6 31 Georgia 18.4 11 Arkansas 27.0 33 Louisiana 20.1 18 Mississippi 28.5 36 Kentucky 21.4 21 Florida 30.1 39 Alabama 22.1 24 West Virginia 38.0 49
Infrastructure Index Metrics Total State Spending on Highways Per Capita Average Retail Electricity Price for Industrial Customers Percentage of Structurally Deficient Bridges Growth in Freight Shipments - tons State Average Rank Infrastructure Rank Growth in Freight Shipments- Millions of Dollars Miles of Interstate Highways Per 10,000 People Average Retail Natural Gas Price for Industrial Customers State Transportation Expenditures as Percentage of Total Expenditures Southern States Infrastructure Index Performance State Average Rank Infrastructure Rank Texas 14.0 3 Alabama 24.9 24 Oklahoma 18.1 6 North Carolina 27.8 33 Kentucky 19.8 9 Florida 28.0 35 Virginia 20.9 13 Georgia 28.4 36 Louisiana 22.6 16 Maryland 29.3 37 Mississippi 22.6 16 Tennessee 31.1 41 West Virginia 23.3 19 South Carolina 32.0 43 Arkansas 24.0 21 Missouri 33.1 44
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How Transportation Infrastructure Investments Stimulate Economic Development in NC Direct Impact-Jobs Accommodates Growth Maintains/Increases Competitiveness Increases Opportunity
ted@econleadership.com Follow on twitter @tedabernathy or LinkedIn Ted Abernathy Leadership and learning are indispensable to each other. John F. Kennedy