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High Point report highlights a strong year in economic development

The High Point Economic Development Corp. released its 2006 annual report yesterday. It provides an excellent overview of new business activity in the city.

The EDC notes that at least 2,610 jobs were created or announced in High Point during 2006, up from previous years.

No doubt that helped High Point-Greensboro win Site Selection magazine's top national ranking for metro areas of 200,000 to 1 million in population.

The EDC report focuses on High Point's strengths, which it labels "The keys to the city" (EDC staffer Beverly Tedder gets credit for the title, boss Loren Hill says). The keys are:

Business-friendly city government

strategic location/transportation network

business parks, developers and commercial real-estate firms

leadership

allies and public/private partnerships

the High Point Market

work force and worker training

High Point being "North Carolina's International City"

industry clusters

One of the most interesting facts listed in the report is this: "Approximately 70 internationally owned companies have year-round facilities in High Point -- giving High Point an impressive 36 percent of all such foreign-based companies in our 12-county Piedmont Triad region."

You shouldn't hear many complaints in High Point about the "global economy."

The first "key" is probably most important: business-friendly government. High Point traditionally has been business-friendly, setting a course as an industrial center beginning in the 1880s. Today, only three furniture manufacturers, and no textile or hosiery companies, remain among the city's top 20 employers, but the economy has become much more diverse.

There are challenges, not least the Las Vegas threat to High Point's furniture market, but the city remains a good place to do business and will continue to grow.

Comments (10)

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quest said:

Was there any discussion regarding the increase in private school enrollment in High Point?

Doug said:

No. There's probably not a tremendous economic impact on that score, although there should be some.

GCS is the no. 2 employer in HP with 1,853 employees.

Dave Ribar said:

Doug:

Not to rain on the parade here, but when I glanced through the previous five years of reports on the HPEDC web-site, they ALL touted High Point's success. There didn't seem to be a down year in the bunch, which certanly doesn't square with what's happened with jobs and growth.

Given that the HPEDC exists to shill for High Point, is it really newsworthy or even notable when they put out this kind of report?

Skeptically,
Dave

Doug said:

Dave, the numbers reflect new jobs rather than net change in employment. Jobs lost aren't reflected in the report. It's a business recruiting tool so of course it tries to put the best face on High Point. It doesn't hurt once in a while to acknowledge that there are some positives about your community.

Dave Ribar said:

Doug:

The economy is always creating jobs and adding businesses, even in recessions (see, e.g., Davis et al. _Job Creation and Destruction_, MIT Press, 1996). However, there are also businesses that are contracting and shutting down. Just looking at the jobs created gives a very misleading picture.

The latest figures from the U.S. Bureau of Labor Statistics for Guilford County show that from June 05 - June 06, the number of jobs increased by only 1 percent. While more jobs are better than fewer (and there were many areas that lost jobs over this period), the growth rate is only one half of the national average. Compared to other large counties, Guilford ranked 204 out of 376 in job growth, well below the median.

Dave Ribar said:

Doug:

The economy is always creating jobs and adding businesses, even in recessions. However, there are also businesses that are contracting and shutting down. Just looking at the jobs created gives a very misleading picture.

The latest figures from the U.S. Bureau of Labor Statistics for Guilford County show that from June 05 - June 06, the number of jobs increased by only 1 percent. While more jobs are better than fewer (and there were many areas that lost jobs over this period), the growth rate is only one half of the national average. Compared to other large counties, Guilford ranked 204 out of 376 in job growth, well below the median.

Doug said:

Why is this rate of job growth lower than the national average? What things should Guilford County be doing to push it up?

Dave Ribar said:

Doug:

Two quick things that come to mind are (a) more cooperation among local governments and (b) better schools. The local governments (and perhaps High Point more than the others) tend to look at development as a zero-sum game, instead of as something that benefits everyone. Our earlier discussion about the Moses Cone facility was a case in point. Fighting nearby development is an absolute lose-lose proposition.
Schools are important too. They contribute in the short-run by making the area a more attractive place to live and raise families and in the long run by providing a skilled work force and by providing the talent to start and run businesses.
A little more harmony and a little less name calling wouldn't hurt either. Hurling race-related charges at one another gets us nowhere fast.
The area has many advantages, including great transportation networks, a great climate, several colleges and universities, moderate taxes, and a reasonable cost-of-living.
Gotta run. Will check back next week.

Best wishes,

Biotekboy said:

Dave,

Excellent post! You are right on the money.

Biotekboy

Dave Ribar said:

Biotekboy:

Thanks.

Dave

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