Research Triangle Region, N.C. (May 27, 2010) – Research Triangle Region employment fell by 46,435 in 2009 as the global recession left its mark. During the same period, however, the region posted a record $1.9 billion in investment announcements from companies planning to relocate or expand within the 13-county region, creating more than 10,000 new jobs.
“The employment decline was a big hit. There is no way to sugar coat it,” Charles A. Hayes, president and CEO of the Research Triangle Regional Partnership (RTRP), told attendees May 27 at the seventh annual State of the Research Triangle Region event. The annual forum, hosted by RTRP with naming sponsor Triangle Community Foundation, provided an update on the economic health and competitiveness of the region and the results of its economic development strategy.
“The difference for our region is that, even during this time of global recession, a record number of companies are choosing to invest here to build their future,” Hayes said. “We’re encouraged by the diversity of companies announcing expansion plans and delighted at the prospect of new jobs being created for our citizens.”
The Research Triangle Region, home of The Research Triangle Park™ (RTP), comprises the 13 north-central N.C. counties of Chatham, Durham, Franklin, Granville, Harnett, Johnston, Lee, Moore, Orange, Person, Vance, Wake and Warren.
Regional investment announcements in 2009 came from both new and existing companies, domestic and international, in a broad range of industries and from across the region, in both rural and urban areas.
Among the companies announcing investments in 2009 were:
• EMC Corp., world-leading developer and provider of information infrastructure technology and solutions, planning a $280 million construction of a new research facility and data center in Durham County, adding nearly 300 jobs, as well as adding 100 new jobs at its manufacturing plant in Wake County.
• IEM, an international risk management and disaster modeling company, moving its global headquarters from Louisiana to RTP in Durham County, creating 430 jobs over the next six years.
• Palziv North America, a global leader in development and manufacturing of thermoplastic cross-linked polyethylene foam for consumer and industrial uses. Palziv purchased a plant in Franklin County formerly used for traditional manufacturing and is investing nearly $8 million to renovate the space for its state-of-the-art advanced manufacturing operation and new North American headquarters, creating 80 to 100 jobs.
• Talecris Biotherapeutics, a home-grown life sciences company based in The Research Triangle Park that discovers, develops and produces clinical-care treatments for people with life-threatening disorders in the areas of immunology, neurology, pulmonary and hemostatis. Talecris plans a $269 million expansion of its manufacturing plant in Johnston County, creating more than 250 jobs.
• Carl Zeiss Optronics USA, the Germany-based global provider of optical and optronic products and services for defense and security uses. Zeiss is establishing its U.S. headquarters in Wake County to support current and anticipated contracts with the U.S. military. It plans to partner with the N.C. Military Foundation, private industry, regional universities and defense-oriented business support organizations to pursue research and development and supply contracts with the U.S. Departments of Defense and Homeland Security and other agencies.
New Year Brings Signs of Recovery
The Research Triangle Region was not alone in the 2009 economic downturn. Employment declined in all three major markets in North Carolina – the Research Triangle, Charlotte and Triad regions – as did employment in regions across the nation and globe.
Layoffs climbed to 9,000 in 2009, not the 18,000 figure experienced in the region during 2001 but a significant number for a region with a diverse industry base that typically cushions it during economic downturns. Regional unemployment remained around 9 percent in 2009 over the year before. Wages rose only 1.2 percent during 2009.
Despite the one-year employment decline, the region posted a net employment gain of 50,000 over the past five years, with the fastest-growing jobs in healthcare, professional and technical services and educational services. These job categories reflect the strength and growth of the region’s world-leading life sciences and technology clusters, particularly pharmaceuticals and advanced medical care, as well as its major healthcare facilities and many institutions of higher learning.
The new year has brought signs that economic recovery is under way. Through the first quarter of 2010, companies in life sciences, technology, defense and other industries have announced more than $93 million in investments for projects that will create another 1,000 jobs over the next few years. In addition, regional economic developers are now working with 58 companies who seek a location for their investments. These companies represent more than $2.7 billion in investment and 13,000 jobs.
Airlines that serve Raleigh-Durham International Airport (RDU) expanded service to several key locations for the region’s business travelers this spring. Midwest added service to Milwaukee in April; JetBlue added two flights to Boston and Southwest added St. Louis service, both in May. Delta plans to add service to LAX in June. Expanding air service was the No. 1 priority identified by companies in the region in 2004, when RTRP launched its first five-year strategic plan. RDU leads the effort to aggressively market the region to airlines to expand service to destinations that are a priority for regional companies.
Strategic Initiatives Yield Results
RTRP moved forward in the past year to implement its new five-year strategic plan for regional economic growth, called The Shape of Things to Come. It calls for creating 100,000 jobs in the region and boosting employment in all 13 counties by July 2014 using a three-part strategy of business growth, product development and regional collaboration.
RTRP implements the plan in collaboration with economic developers from its 13 member counties, RTP, the N.C. Department of Commerce and 90 partner organizations in business, government, academia and the nonprofit sector that voluntarily align their strategies to support the region’s economic development vision and action plan.
Among the strategic initiatives and results during the past year:
• Promoting Business Growth – Business-development activities continue to focus on expanding the region’s life sciences and technology clusters as well as three emerging clusters: clean/green technologies, interactive gaming and e-learning, and defense technologies. The region uses a balanced economic-development approach that includes recruiting companies, supporting the growth of existing companies and encouraging the startup and growth of new ventures related to these clusters.
• Ensuring Quality Growth – More than 40 cities, counties and organizations in the region have endorsed three guiding principles for quality growth to help ensure the region maintains its superior quality of life as it welcomes an estimated 1.2 million new people over the next 20 years. Triangle Tomorrow, RTRP’s quality-of-life program, and the Triangle District Council of the Urban Land Institute lead the effort to mobilize communities and leadership to promote the three guiding principles – improved transit, vibrant centers and green space – developed during the 2009 Reality Check visioning exercise.
• Linking PreK-12 Education with Business Growth – RTRP teamed with Lt. Gov. Walter Dalton and the state’s Joining Our Businesses and Schools (JOBS) Commission to develop recommendations for how the state’s high schools can align themselves more closely with the economic development needs of their regions. The region’s new strategic plan includes a tactical effort to link PreK-12 education with business growth to ensure the region maintains a workforce that meets the needs of its knowledge-based economy.
• Improving Air Service – RDU continues construction on the second phase of its state-of-the-art Terminal 2 and other improvements. The new terminal is one of the main reasons the National Hockey League All-Star Game will be played in the region in January 2011, bringing both economic impact and a boost to the region’s global brand.
• Promoting Rural Development – RTRP led marketing for Triangle North, the innovative rural job-creation effort in the region’s northern tier that is developing a network of business parks to attract jobs and economic growth in Franklin, Granville, Vance and Warren counties. RTRP and developers in the region’s southern tier – Harnett, Lee and Moore counties, in particular – continued collaboration with the Base Realignment and Closure Regional Task Force to leverage the U.S. Army’s growing presence at Fort Bragg for defense-related business growth.
The Research Triangle Regional Partnership (RTRP) coordinates economic development for the Research Triangle Region, home of The Research Triangle Park and the 13 central-North Carolina counties of Chatham, Durham, Franklin, Granville, Harnett, Johnston, Lee, Moore, Orange, Person, Vance, Wake and Warren.
The State of the Region presentation text and slides are available for download at www.researchtriangle.org/SOR2010.
For learn more or get involved, contact RTRP at (919) 840-7372 or rtrp(at)researchtriangle.org or visit www.researchtriangle.org.