2018 Charlotte Overview

Page 1

CHARLOTTE A GLOBAL HUB FOR BUSINESS


W HY AR LOTT H Y CH C HAR People keep coming to the Charlotte region. 102 people a day, in fact. Why do they come to Charlotte? They come for jobs in a healthy and growing economy with thriving health care, finance and professional services sectors, and ranked the No. 1 fastestgrowing tech talent market two years running. They come to start and grow businesses in a state with the lowest corporate tax rate on the East Coast and a region with an educated, talented and innovative workforce, regularly ranked in the top three best places to start a business. They come for lower cost of living and affordable real estate in neighborhoods suitable for any lifestyle – from vibrant urban centers to suburban cul-de-sacs to quaint small towns and rural areas. And 226 days of sunshine a year doesn’t hurt either.

Need more proof? Consider these numbers:

53%

U.S. POPULATION

15

7 TH

700

BUSIEST AIRPORT IN THE WORLD: CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT

DAILY

NONSTOP FLIGHTS

173

+

NONSTOP DESTINATIONS INCLUDING 34 INTERNATIONAL DESTINATIONS

WITHIN 650 MILES (2-HOUR FLIGHT OR 12HOUR TRUCK HAUL)

RESEARCH UNIVERSITIES

1,000+

INTERNATIONALLY OWNED COMPANIES HAVE PRESENCE IN THE REGION

300,000 STUDENTS

(WITHIN 200 MILES)

44.2 %

OF MECKLENBURG COUNTY RESIDENTS HAVE A BACHELOR’S DEGREE OR HIGHER

2.5 %

STATE CORPORATE INCOME TAX (LOWEST IN THE U.S.)

4

MAJOR INTERSTATES (40, 77, 85, 485) CONNECT THE REGION WITH OTHER MARKETS

96.2 %

COST OF LIVING AS A PERCENTAGE OF THE NATIONAL AVERAGE (C2ER, 1Q 2018)

FOR UP-TO-DATE INFORMATION AND DATA ON THE CHARLOTTE ECONOMY, CHECK OUT THE


NO. 1 METRO

TE?

NO. 1 CITY FOR

NO. 1 STATE FOR

ECONOMIC

BUSINESS

OPPORTUNITY

(Forbes, 2017)

(American Express OPEN, 2017)

(Yelp, 2017)

NO. 2 CITY CREATING TECH JOBS

NO. 2 HIGHEST GROWTH IN NUMBER OF SMALL BUSINESSES

(Forbes, 2016)

(WalletHub, 2016)

FOR GROWTH IN WOMEN-OWNED FIRMS

NO. 3 BEST METRO FOR STEM JOB GROWTH (Forbes, 2018)

NO. 3 FASTESTGROWING BIG CITY (Alliance analysis of U.S. Census Bureau data, 2018)

NO. 3 REAL ESTATE MARKET TO WATCH (PwC and Urban Land Institute, 2016)

CHARLOTTE REGIONAL ALLIANCE CONTACTS ECONOMIC RECRUITMENT KATHLEEN BYRNE

EILEEN CAI

SVEN GERZER

ANTONY BURTON

AKOFA DOSSOU

CHUCK MCSHANE

KATI HYNES

STEVEN PEARCE

MARVIN PRICE

RESEARCH & DATA

TAB LE OF CON TEN TS 4 – LI VI N G H E RE

18 – A DVA NCED M A NU FACTU RI NG I NDU S TRY

6 – G E T T I N G A RO U N D

20 – TRA NS PORTATI ON A ND LOGI STI CS I NDU STRY

7 – DO I N G BU S I N E S S HE RE

22 – I NTERNATI ONA L BU SI NESS ES

8 – R EG I O N AL P RO F I LE S

24 – CORPORATE HEA DQUA RTERS

10 – ECO N O M I C I N D I C ATO RS

26 – ENERGY I NDU S TRY

12 – FI N AN C I AL S E RV IC E S IND UST RY

28 – LEGA L I SS U ES FOR I NTERNATI ONA L BU S I NESS ES

14 – H E A LT H C A RE I N D UST RY

30 – TA XES A ND I NCENTI V E PROGRA M S

16 – I N FO RM AT I O N T EC HNO LO GY IND UST RY

32 – QUA LI TY OF LI V I NG

ALLIANCE'S INTERACTIVE DASHBOARDS AT CHARLOTTEREGION.COM/ECONOMICINDICATORS.


v

L I V I NG HE RE High quality of life, low cost of living and diversity of living and educational options characterize life in Charlotte. The metropolitan area of 2.5 million people is one of the nation’s most affordable metros. At 96.2 percent of the national average, it costs less to live here than in most major metropolitan areas.

CO ST O F LIV ING INDEX

TA MPA , FL

94.8

RIC HMO ND, VA

96.1

C HA RLOT T E, NC

96.2

RA LEIG H, NC NA SHV ILLE, T N

96.4 96.7

AT LA NTA , GA

99.0

DA LLA S, T X 102.1

HO USING INDEX

77.0

TA MPA, F L

83.4

RA LEIG H , N C

86.7

C HA RLOTTE , N C

88.7

RIC HMON D, VA

91.1 94.4

NA SHV IL L E , TN AT LA NTA , GA

104.9 DA LLA S, TX

TAX RATES IN MECKLENBURG COUNTY MUNICIPALITIES MUNICIPALITY

TOTAL PROPERTY TAX RATE (Per $100 Valuation)*

Charlotte**

$1.3100

Cornelius

$1.0782

Davidson

$1.1732

Huntersville

$1.1282

Matthews

$1.1782

Mint Hill

$1.0932

Pineville

$1.2032

Unincorp. County

$1.0378

OTHER TAXES

PERCENTAGE RATE

N.C. corporate tax

3%

N.C. personal income tax

5.50%

Sales tax (Mecklenburg County)***

7.25%

Source: Mecklenburg County Office of the Tax Collector * Taxes assessed on 100 percent of assessed value and valuations conducted every four to eight years. Business and individual tax rates are same; **Additional municipal services district taxes apply in parts of Center City and University area; ***Includes 4.75% state tax, 2.0% county tax and 0.5% public transit tax.

FOR DETAILED COST OF LIVING INFORMATION, VISIT CHARLOTTEREGION.COM/COSTOFLIVING.

4

485

85


The Charlotte area offers neighborhoods for all lifestyles, tastes and budgets – from high-rise condos in a vibrant center city, to mid-century bungalows and townhomes in close-in neighborhoods, to classic suburban subdivisions and charming small towns.

POPULATION 2017

POPULATION 2010

RESIDENTS WITH BACHELOR’S DEGREES

HUNTERSVILLE

57,875

50,911

54%

$91,740

37

BALLANTYNE

57,646

50,881

53%

$86,987

38

UNIVERSITY

38,932

32,585

51%

$57,714

29

CORNELIUS

24,866

18,785

53%

$81,044

39

MYERS PARK

17,588

15,881

80%

$120,855

39

UPTOWN

15,436

12,489

67%

$72,648

29

DAVIDSON AREA

12,783

10,271

65%

$123,034

38

SOUTHPARK

10,948

10,307

73%

$97,147

40

SOUTH END

8,918

5,023

43%

$50,028

30

PLAZA MIDWOOD

8,656

7,969

44%

$68,593

34

DILWORTH

7,938

6,563

75%

$76,002

33

MADISON PARK

6,317

5,377

53%

$73,445

37

ELIZABETH

4,866

4,053

64%

$68,863

31

NODA

3,258

2,607

45%

$66,194

33

NEIGHBORHOODS

77

485

MEDIAN HOUSEHOLD INCOME

MEDIAN AGE

85

277

485

Source: Neighborhood population, income and median age statistics are based on the Mecklenburg County Neighborhood Quality of Life Explorer produced by the City of Charlotte, Mecklenburg County and the UNC Charlotte Urban Institute. These neighborhoods are combinations of the city’s “Neighborhood Profile Areas.” Other neighborhood definitions might vary.

MINT HILL

77 MATTHEWS PINEVILLE

485

5


G ET TI NG A RO U N D $3 BILLION

Charlotteans have plenty of options for getting around this growing city and region; and we’re making investments in more transportation infrastructure. One in four Mecklenburg County workers – that’s 160,000 people - commute into Mecklenburg County from other counties in the region each day.

IN TRANSPORTATION FUNDING PLEDGED BY BUILD NC BOND ACT TRHOUGH 2027

IREDELL CO. ALEXANDER CO.

26.3

77

S T A T ES V I L L E H RY HII CKO CKOR

TO RALEIGH, WASHINGTON D.C.

S A L I S B UR Y NEWTON

US Census Bureau

MOORESVI LLE

CATAWBA CO. LINCOLN CO.

77

L INCO L NTON 321

SHEL B Y

CLEVELAND CO. 85

CLO VE V ER

85 DAVIDSON

K A NN A P O L I S

MECKLENBURG CO. MOUNT H OLLY

STANLY CO.

CABARRUS CO.

A L B E M A R LE

62,000+

CHARLOTTE

G A ST ONI A

N.C.

ROWAN CO.

H U N T E R S V I L L E CONCOR D

GASTON CO.

74

MINUTE MEDIAN COMMUTE TIME

40

485

S.C.

MINT HI H I LL

DAILY RIDERS OF CHARLOTTE AREA TRANSIT SYSTEM

TO ATLANTA

YORK CO.

TO PORT OF WILMINGTON

W E D D I N GT O N

MONROE 74

R OCK HI L L

UNION CO.

77

LANCASTER CO. YO RK YORK CHESTER

N.C. S.C.

PA G E L A ND

LANC ASTER

American Public Transportation Association, Q1 2018

W I NG N GA T E

C HE S T E R F I E L D C HE R A W

CHESTERFIELD CO.

CHESTER CO.

TO PORT OF CHARLESTON

MILES OF NEWLY OPENED LIGHT-RAIL LINE

LEGEND LYNX BLUE LINE

FREIGHT CORRIDOR

BLUE LINE EXTENSION

CSX DOUBLE TRACK TO PORT TO WILMINGTON

SEHSR ATL TO D.C.

HIGHWAY CONNECTION

FUTURE RED LINE FUTURE SILVER LINE CITYLYNX GOLD LINE (in progress)

6

20 MILES

TRAFFIC IMPROVEMENT CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT

CHARLOTTE GATEWAY STATION (planned)


DOING BUSINESS HERE Charlotte’s well-known probusiness environment is evident in its ability to move people and products efficiently and conveniently throughout the world. Key assets include favorable geographic location,

amenable climate, and convenience to major U.S. markets, Foreign Trade Zone No. 57, a U.S. Customs and Border Protection office and an inland port. Charlotte’s location within North Carolina,

which Site Selection magazine ranked No. 1 in its Prosperity Cup business competitiveness rankings three years in a row, is also favorable for relocating and expanding businesses.

FORTUNE 500 HEADQUARTERS IN THE CHARLOTTE REGION

Source: Fortune Magazine 2018 Fortune 500 List

#

24

Revenue

$100.3 B

BA N K O F AM E R IC A COMM E RC I AL BAN K S

#

40

Revenue

$68.6 B

#

LOWE ’S RE TAIL: HO ME IMP ROVE ME NT

OFFICE SPACE

115

MM Sq. Ft. Existing

125

Revenue

$23.2 B

151

#

DU KE ENERGY UT ILITI ES

Revenue

$20.3 B

#

NUCO R M ETA LS

298

Revenue

$9.9 B

#

456

SO NIC AUTO MOT IV E RETA I L: AU TOM OTI V E

Revenue

$6.1 B

SE A L E D A IR PACKAGIN G

(Source: Co-Star)

4.2

Average Asking Office Rents

$32.39/sf Suburban $23.77/sf

MM Sq. Ft. Under Construction

Urban

BUSINESS CLIMATE

2.5% CORPORATE TAX RATE as of 2019 – lowest of any state with a corporate income tax

(Source: Tax Foundation)

425 CORPORATE HEADQUARTERS

(Source: Charlotte Regional Business Alliance Research)

80% GROWTH in Professional Services Employment since 2001

(Source: Bureau of Labor Statistics via JobsEQ)

200,000 NEW JOBS added since 2001

#1

C I TY FOR ECONOM I C OP P ORTU N IY (YELP, 2017)

(Source: Bureau of Economic Analysis)

7


R EG IO AL P RO I ON NAL CATAWBA Popula on: 157,974 Largest Industry: Manufacturing Growth since 2010: 2.1% Median Household Income: $44,376 Median Age: 39.6

ALEXANDER Popula on: 37,286 Largest Industry: Manufacturing Growth since 2010: 0.1% Median Household Income: $39,365 Median Age: 40.8

LINCOLN Popula on: 82,403 Largest Industry: Manufacturing Growth since 2010: 5.5% Median Household Income: $49,215 Median Age: 40.4

ALEXANDER IREDELL LL L

CATAWBA

LINCOLN

CLEVELAND Popula on: 97,334 Largest Industry: Manufacturing Growth since 2010: -0.6% Median Household Income: $39,453 Median Age: 40.3

CLEVELAND

GASTON

MECKLENBU

YORK

8

GASTON Popula on: 220,182 Largest Industry: Manufacturing Growth since 2010: 6.8% Median Household Income: $42,429 Median Age: 38.9

CHESTER Popula­on: 32,301 Largest Industry: Manufacturing Growth since 2010: -2.5% Median Household Income: $31,914 Median Age: 40.3

YORK Popula on: 266,439 Largest Industry: Retail Trade Growth since 2010: 17.4% Median Household Income: $65,903 Median Age: 39.7

LANCASTER Popula­on: 92,550 Largest Industry: Professional Services Growth since 2010: 20.2% Median Household Income: $44,016 Median Age: 39.7

CHESTER

LAN


F IL E S ROWAN Popula­on: 140,644 Largest Industry: Health Care Growth since 2010: 1.7% Median Household Income: $43,069 Median Age: 39.1

CABARRUS Popula on: 206,872 Largest Industry: Retail Trade Growth since 2010: 15.9% Median Household Income: $54,720 Median Age: 36.7

IREDELL Popula­on: 175,711 Largest Industry: Manufacturing Growth since 2010: 10.0% Median Household Income: $52,306 Median Age: 38.9

MECKLENBURG Popula on: 1,076,837 Largest Industry: Health Care Growth since 2010: 16.6% Median Household Income: $56,854 Median Age: 33.9

ROWAN

STANLY Popula­on: 61,482 Largest Industry: Manufacturing Growth since 2010: 1.5% Median Household Income: $40,910 Median Age: 40.5

CABARRUS STANLY

URG

UNION

NCASTER

UNION Popula­on: 231,366 Largest Industry: Manufacturing Growth since 2010: 14.5% Median Household Income: $65,903 Median Age: 36.2

CHESTERFIELD

CHESTERFIELD Popula­on: 45,948 Largest Industry: Manufacturing Growth since 2010: -1.5% Median Household Income: $32,083 Median Age: 39.3

(Source: Charlotte Regional Business Alliance Research and JobsEQ)

9


ECON OM IC IND OMIC Many factors drive our region's economy. The Charlotte Regional Business Alliance's research team keeps track of them all. Here is a sample of some of the key metrics reflecting the growth of the Charlotte Region over the first two decades of the 21st century.

TOTAL GROSS DOMESTIC PRODUCT ($ in millions) Charlotte MSA (2013 Definition) 2017: $174,029

2001: $81,150

Source: Bureau of Economic Analysis

TOTAL POPULATION Charlotte MSA 2017: 2,525,305 2000: 1,728,616 Source: U.S. Census Bureau and Bureau of Economic Analysis

FOR DETAILED ECONOMIC INSIGHTS, VISIT CHARLOTTEREGION.COM/ECONOMIC-INDICATORS.

10


D I C ATO R S TOTAL EMPLOYMENT Charlotte MSA 2018: 1,267,183 2007: 1,002,304

Source: N.C. Department of Commerce & Charlotte Regional Business Alliance

TOTAL HOUSING PERMITS Charlotte MSA 2010: 5,622

2017: 21,508 Source: U.S. Census Bureau & Charlotte Regional Business Alliance

TOTAL COMPENSATION Charlotte MSA 2001: $42,064,098,000

2017: $82,778,376,000

Source: Bureau of Labor Statistics

11


FINANC IA L S ERV I C E S Charlotte has been at the forefront of finance since the Federal Reserve’s decision to open an office here in 1927. In the 90 years since, the area has transformed from a regional banking center to a global hub of financial activity, home to Bank of America’s global headquarters and Wells Fargo’s east coast center of operations. Nearly 75,000 people work in the finance and insurance sector in the Charlotte area. More than 85 percent of those jobs are in Charlotte and surrounding Mecklenburg County. Accounting for around 9 percent of area jobs but nearly 17 percent of all wages, the financial services sector is the foundation of the region’s economic strength. In addition to resources for established financial firms, entrepreneurs in the financial and payments technology fields find Charlotte an ideal place to innovate and grow. Charlotte is home to more than 40 FinTech firms, from LendingTree to homegrown payments company AvidXchange, to a growing community of startups pushing this historic banking city to look toward the future.

MORE THAN

REGISTERED WITH FINANCIAL I ND U S TRY REG U LATORY AU THORITY.

Source: FINRA

S E LECT F I N TECH COMPA NIES I N CH AR LOTTE AR E A

MAJO R F I N AN C E E M P LOY E RS COMPANY

REGIONAL EMPLOYMENT

LINE OF BUSINESS

COMPANY

REGIONAL EMPLOYMENT

LINE OF BUSINESS

AvidXchange

1,200*

Payments automation

Wells Fargo Company

24,500

Commercial banking

LendingTree

488*

Online lending

Bank of America Corporate

15,000

Commercial banking

Zenmonics Inc

180

Mobile banking platform

TIAA

4,000

Third party administration of insurance & pension funds

Sentry One

100

SQL Server & Microsoft optimization

LPL Financial Services

2,850

Financial investment advice services

Passport Parking, LLC

92

Transportation system and parking payments

BB&T Corp

2,065

Commercial banking

Levvel

90

FinTech strategy consulting

Allstate Insurance Co.

2,000*

Insurance agencies & brokerages

Payzer

41

Mobile and online payments; instant financing

MetLife, Inc.

1,500

Direct property & casualty insurance carriers

Sunlight Financial

40

Mobile lending for solar installations

The Vanguard Group, Inc.

1,300

Investment services

DealCloud, Inc.

40

Private equity deal management

Ally Financial

1,300

Consumer financing

Impact Financial Systems

30

Business process automation

PrecisionLender

20

Pricing management

Sources: Charlotte Regional Business Alliance Data, Industry databases, Business Wise. *in August 2017, Allstate announced that it will add 2,250 jobs over the next 3-5 years.

2x T H E

12

1 0 , 0 0 0 LICENSED

BROKERS AND INVESTMENTS ADVISORS

N AT I O N A L AV E R A G E O F F I N A N C I A L A N A LY S T S

Source: JobsEQ

Sources: Charlotte Regional Business Alliance research, Industry databases, Business Wise. *In December 2018, AvidXchange announced it would add 1,229 additional jobs and expand its headquarters; LendingTree announced an additional 436 jobs.


BY THE NUMBERS

75 FINANCE & INSURANCE WORKERS IN THE CHARLOTTE AREA

Nearly

2.3

2

nd

TRILLION

LARGEST BANKING CENTER IN THE UNITED STATES

IN TOTAL ASSETS HELD BY CHARLOTTE BANKS

1,700 jobs added by AvidXchange and LendingTree in two

major announcements.

LARGEST 15 OCCUPATIONS IN FINANCE AND INSURANCE SECTOR

(NAICS code 52)

PROJECTED ANNUAL GROWTH RATE BY 2028

2018 MSA EMPLOYMENT

AVERAGE WAGES

CURRENT ONLINE JOB ADS

Accountants & Auditors

12,671

$78,300

700

2.00%

Business Operations Specialists; All Other

8,965

$76,000

549

1.90%

NE AR LY

Management Analysts

7,919

$102,000

1,370

2.30%

BUSINESS AND

Loan Officers

5,319

$74,900

108

1.90%

FINANCE-RELATED

Human Resources Specialists

4,932

$70,400

749

1.70%

DEGREES AWARDED

Financial Analysts

4,115

$92,500

377

2.00%

EACH YEAR AT

Personal Financial Advisors

3,220

$106,400

68

2.40%

48 AR E A

Compliance Officers

1,767

$67,400

52

1.80%

HIGHER-EDUCATION

Credit Analysts

1,517

$89,600

39

1.80%

Financial Examiners

1,415

$90,600

41

2.10%

Insurance Underwriters

945

$87,200

72

0.70%

Compensation, Benefits, and Job Analysis Specialties

797

$67,700

41

1.90%

Appraisers and Assessors of Real Estate

661

$73,000

15

2.30%

Credit Counselors

234

$57,700

2

2.20%

Budget Analysts

180

$74,500

16

1.70%

OCCUPATION

Source: Jobs EQ and U.S. Bureau of Labor Statistics, Q1 2018

3,000

I NS TI TU T IO N S. Source: IPEDS and institutions

13


HEALTH C A R E From primary care facilities and comprehensive hospitals, to health care research and technology, and a growing medical equipment and pharmaceutical industry, a broad range of health care companies are crucial to the Charlotte region’s economy. Health care accounts for 1 in 10 jobs in the Charlotte region. That’s a robust workforce of more than 142,000 workers with diverse skill sets, education levels and backgrounds. From home health care workers to hospital support professionals to physicians and life sciences researchers, much of the area’s health care talent is recruited from the 48 higher education institutions in the area. With the flagship institutions of two nationally ranked hospital systems in Atrium Health and Novant Health, a growing health care technology and medical equipment supplies manufacturing industry, and a world-class research institution in the North Carolina Research Campus, Charlotte’s health care industry is poised to continue growing.

THE HEALTH CARE SECTOR HAS A

$ 13.4 B I L L I O N T O TA L I M PAC T O N T H E

CHARLOTTE REGION’S ECONOMY.

Source: JobsEQ, Chmura Economics

96,041

A N AD D ITIO NAL JOBS AR E I ND I R EC TLY S U P P ORTE D BY E XP E N D ITURES OF HEALTH CAR E COM PANI E S AND WOR KE R S . Source: JobsEQ, Chmura Economics

TOP 10 HEALTH CARE EMPLOYERS T O P 1 0 H E A LT H C A R E S U B - I N D U S T R I E S COMPANY Atrium Health

14

REGIONAL EMPLOYMENT

COUNTY

INDUSTRY

2018 MSA EMPLOYMENT

AVG. ANNUAL WAGES

PROJECTED ANNUAL GROWTH RATE BY 2028

(formerly Carolinas HealthCare System)

35,700

Regional

General Medical Hospitals

39,431

$63,952

1.10%

Novant Health

12,468

Regional

Offices of Physicians

24,277

$96,005

2.70%

Caromont Health Inc.

3,980

Gaston

Home Health Care Services

9,855

$30,396

4.60%

Iredell Health System

1,600

Iredell

Nursing Care Facilities

8,947

$32,429

1.00%

Piedmont Medical Center

1,600

York

Retirement & Assisted Living Facilities

7,825

$24,615

3.60%

Premier Inc.

1,200

Regional

Offices of Dentists

7,534

$58,319

2.50%

Orthocarolina

1,100

Mecklenburg

Outpatient Care Centers

4,026

$52,967

3.40%

Disability, Mental Health & Substance Abuse Facilities

3,403

$27,985

2.50%

Other Ambulatory Health Care Services

2,193

$44,706

3.60%

General Health Practitioners

1,944

$48,238

3.50%

White Oak Manor

938

Regional

Springs Memorial Hospital

875

Lancaster

Brookdale Senior Living

835

Regional

Sources: Charlotte Regional Business Alliance, Industry databases, Business Wise

Source: JobsEQ, Q1 2018


BY THE NUMBERS

1

142

4,800

LARGEST SECTOR BY EMPLOYMENT

HEALTH CARE AND LIFE SCIENCE WORKERS IN CHARLOTTE

HEALTH CARE ESTABLISHMENTS IN THE CHARLOTTE MSA

1:1,150 ratio of primary physicians to people (Source: Robert Wood Johnson Foundation)

L A R G E S T 1 5 H E A LT H C A R E O C C U P AT I O N S PROJECTED ANNUAL GROWTH RATE BY 2028

2018 MSA EMPLOYMENT

AVERAGE WAGES

CURRENT ONLINE JOB ADS

Registered Nurses

22,568

$61,007

1,929

2.00%

Nursing Assistants

10,613

$19,500

736

1.80%

Home Health Aides

6,049

$19,500

135

4.50%

Medical Assistants

4,706

$33,300

284

3.30%

Licensed Practical & Licensed Vocational Nurses

4,310

$42,600

309

1.80%

Pharmacy Technicians

3,042

$30,900

550

1.70%

Physicians & Surgeons

2,902

$229,100

135

2.10%

C E RTI F I CAT E S &

Dental Assistants

2,323

$42,100

44

2.50%

DEGREES AWARDED

Pharmacists

2,042

$117,000

45

1.10%

ANNUALLY.

Dental Hygienists

1,701

$70,700

23

2.50%

Emergency Medical Technicians & Paramedics

1,633

$36,600

70

1.90%

Medical Records and Health Information Technicians

1,530

$36,900

267

2.10%

Radiologic Technologists

1,497

$55,400

125

1.80%

Physical Therapists

1,263

$81,900

70

2.80%

Nurse Practitioners

1,060

$98,700

130

3.80%

OCCUPATION

NE AR LY

5,000

HE ALTH CA R E O R L I F E S C I E N CE R E L ATE D

Source: IPEDS and institutions

Source: JobsEQ, Q1 2018

15


INFORMATION TECHNOLOGY With strong presence of renowned technology companies, IT is an established industry in the Charlotte region. But Charlotte’s diverse technology talent drives innovation in many industries. The financial technology, or FinTech, sector provides an example. With nearly 10 percent of Charlotte’s technology talent working in financial services, FinTech has emerged as a burgeoning industry with more than 40 firms in the Charlotte area. Tech companies serving the health care and manufacturing industries make up a large portion of Charlotte’s tech

community as well. Many of the city’s most successful entrepreneurs began their careers at large companies in the financial services, health care and energy sectors, and took their expertise from these industries to develop techbased solutions to solve problems in their field. With a diversified workforce, a wide variety of science, technology, engineering and math (STEM) education programs, and a range of accelerator and incubator programs, Charlotte is poised to grow as a hub for technology and innovation.

Photo by David Jaffe

T O P 1 0 T E C H E M P L O Y E R S I T S U B - I N D U S T R Y C O N C E N T R AT I O N S COMPANY

REGIONAL EMPLOYMENT

COUNTY

Red Ventures

3,250

Lancaster

AvidXchange

1,200*

Mecklenburg

Microsoft Corp

1,100

Mecklenburg

Optum Inc.

1,100

Cabarrus

Accenture

1,000

Mecklenburg

Synchrony Financial

975

Mecklenburg

LendingTree

488*

Mecklenburg

McKesson Technology Solutions

250

Mecklenburg

Flexential

250

Mecklenburg

Aktion Associates, Inc.

160

Mecklenburg

Velocitor Solutions LLC

150

Mecklenburg

Source: Charlotte Regional Business Alliance, Industry databases, Business Wise; *AvidXchange announced the addition of 1,229 new jobs and LendingTree announced the expansion & addition of 436 new jobs in December 2018.

16

PROJECTED ANNUAL GROWTH BY 2028

MSA EMPLOYMENT

AVG. ANNUAL WAGES

Computer Systems Design Services

8,920

$88,782

2.8%

Data Processing, Hosting, and Related Services

8,245

$100,433

2.2%

Custom Computer Programming Services

6,258

$92,368

2.7%

Software Publishers

3,997

$120,607

2.7%

Other Computer Related Services

654

$89,559

2.7%

Internet Publishing and Broadcasting and Web Search Portals

635

$66,776

4.2%

Computer Facilities Management Services

260

$85,228

2.6%

INDUSTRY

Source: JobsEQ, Q1 2018

DOWN LOA D A CO MP L E TE L I S T O F COWO RK I N G S PAC E S A N D B US INE S S I NC U BATO RS I N TH E C H A RLOTTE A RE A AT C H A R LOT T E R EG I O N .COM


BY THE NUMBERS

1

37

58

FASTEST GROWING TECH TALENT POOL TWO YEARS IN A ROW

ANUAL GROWTH IN SOFTWARE PUBLISHER EMPLOYMENT

TECH TALENT WORKERS

Source: CBRE

3X the national average employment in data processing and

related services.

T O P C O R E T E C H TA L E N T O C C U P AT I O N S PROJECTED ANNUAL GROWTH BY 2028

2018 MSA EMPLOYMENT

AVERAGE WAGES

CURRENT ONLINE JOB ADS

Computer Systems Analysts

8,378

$92,900

364

1.7%

Software Developers, Applications

7,717

$100,400

1,774

3.4%

Computer User Support Specialists

6,405

$54,700

1,766

1.9%

Computer and Information Systems Managers

4,253

$143,100

312

2.0%

Software Developers, Systems Software

3,684

$111,000

9

2.0%

R E L ATE D D EG R E E S

Network and Computer Systems Administrators

3,569

$82,200

928

1.4%

AND C E RT IF ICAT E S

Computer Programmers

2,761

$91,700

55

0.0%

AWAR D E D

Information Security Analysts

1,914

$104,100

478

3.5%

ANNUAL LY.

Computer Network Support Specialists

1,878

$56,300

1

1.6%

Computer Network Architects

1,624

$112,300

35

1.4%

Web Developers

1,589

$74,200

491

2.0%

Computer Occupations, All Other

1,218

$74,200

2,232

1.9%

Database Administrators

1,148

$92,800

336

1.9%

160

$116,400

95

3.1%

46,298

$91,900

8,876

2.1%

OCCUPATION

Computer and Information Research Scientists

TOTAL CORE TECH TALENT

Source: JobsEQ, Q1 2018

M OR E TH A N

1,700 CO R E TEC HNO LO GY-

Source: IPEDS and institutions, JobsEQ


A DVA NC ED MANUFACTURING More than 108,000 people work in manufacturing in the Charlotte region. Manufacturing in the area has become diversified through the years. The Charlotte area has thousands of firms specializing in sophisticated intelligent manufacturing, with precision metrology, optoelectronic and biomedical technology developing alongside such traditional manufacturing as primary and fabricated metals, machinery, chemicals, plastics, electronics, transportation equipment and food and beverages. Manufacturing executives also find Charlotte’s combination of talent and access to a major airport a winning formula for locating headquarters and other offices.

Manufacturers come to Charlotte to tap into the skilled and productive workforce. Charlotte is home to Central Piedmont Community College, the state’s largest community college, and the University of North Carolina at Charlotte, one of the largest universities in the 16-campus UNC system. Both offer worker-training programs, including programs that can be customized to meet employers’ needs. CPCC has multiple campus locations around Mecklenburg County and also offers companies on-site training programs. An 88,000-square-foot Advanced Technology Center, including space for advanced manufacturing training, opened in 2018 on CPCC’s Central Campus.

AT 2.2% , NORTH CAROLINA’S PRIVATE-SECTOR UNION MEMBERSHIP RATE IS ONE OF THE LOWEST IN THE NATION. Source: Unionstats.com TOP 10 MANUFACTURING EMPLOYERS

COMPANY

18

REGIONAL EMPLOYMENT

COUNTY

S E L E C T M A N U FA C T U R I N G H E A D Q U A R T E R S

INDUSTRY

REGIONAL EMPLOYMENT

SUB-INDUSTRY

Ingersoll Rand

1,915

Machinery Manufacturing

Sealed Air

1,400

Plastics and Rubber Products Manufacturing

Coca-Cola Bottling Company

1,350

Beverage and Tobacco Product Manufacturing

Electrolux

900

Fabricated Metal Manufacturing

York

Corning

700

Electrical Equipment, Appliance, and Component Manufacturing

Lincoln

Domtar

590

Paper Product Manufacturing

ASMO North Carolina

400

Electrical Equipment, Appliance, and Component Manufacturing

Daimler Trucks

5,000+

Gaston

Tyson Foods

1,800

Union

Siemens Energy

1,725

Mecklenburg

ATI Specialty Materials

1,400

Union

Schaeffler Group

1,200

RSI Home Products

1,000

GKN Driveline

925

Catawba

Wix Filtration Products

900

Gaston

Curtiss-Wright

400

Transportation Equipment Manufacturing

Dole Fresh Vegetables

850

Gaston

Husqvarna

300

Machinery Manufacturing

Advance Pierre Foods

850

Catawba

Source: Charlotte Regional Business Alliance Data, Business Wise

Source: Charlotte Regional Business Alliance Data, Business Wise


BY THE NUMBERS

17

2.2

3

MANUFACTURING JOBS ADDED SINCE 2010 IN THE CHARLOTTE MSA

PRIVATE-SECTOR UNIONIZATION RATE

(Source: Bureau of Labor Statistics via JobsEQ)

(Source: Unionstats.com)

THE NATIONAL AVERAGE EMPLOYMENT IN ENGINE, TURBINE AND POWER TRANSMISSION MANUFACTURING

3,500 manufacturers in the Charlotte region. (Source: Alliance Manufacturing Directory)

LARGEST 15 MANUFACTURING OCCUPATIONS AVG. ANNUAL GROWTH

2018 MSA EMPLOYMENT

AVERAGE WAGES

CURRENT ONLINE JOB ADS

Miscellaneous Assemblers and Fabricators

13,801

$32,900

168

2.6%

Miscellaneous Production Workers

7,522

$31,400

570

2.6%

First-Line Supervisors of Production and Operating Workers

5,366

$61,700

459

1.9%

Inspectors, Testers, Sorters, Samplers, and Weighers

4,729

$37,800

156

2.4%

M ANU FACT U R IN G

Packaging and Filling Machine Operators and Tenders

3,769

$31,600

10

3.5%

ACCOU N T S FO R

Machinists

3,623

$42,900

110

1.4%

AB OU T

Welding, Soldering, and Brazing Workers

3,560

$44,000

66

2.1%

OF THE N .C.

Machine Tool Cutting Setters, Operators, Metal and Plastic

3,474

$36,200

94

1.5%

WOR K FO RCE ,

Textile Machine Setters, Operators

3,034

$24,800

60

-1.1%

BUT

Butchers and Other Meat, Poultry, and Fish Processing Workers

2,602

$26,700

72

4.6%

TH AN

Crushing, Grinding, Polishing, Mixing, and Blending Workers

1,939

$33,100

50

3.3%

OF ECO N O M IC

Printing Workers

1,901

$36,500

78

1.7%

OU TP U T.Â

Molders, Molding Machine Setters, Operators, Metal and Plastic

1,842

$33,900

67

1.8%

Electrical, Electronics, and Electromechanical Assemblers

1,702

$33,000

59

1.7%

OCCUPATION

SINCE 2013

Source: JobsEQ, Q1 2018

10 %

MO RE

20%

Source: National Association of Manufacturers


LOGIS LO GIS T ICS & DIS T RIB U T I ON Location, infrastructure and talent. These three elements combine to make Charlotte ideal for distribution and logistics operations. Located at a strategic point on the East Coast between major ports and inland cities, the Charlotte region provides easy access to the bulk of the United States’ population.

BOSTON BOSTON BUFFALO BUFFALO MILWAUKEE MILWAUKEE

DETROIT DETROIT

CHICAGO CHICAGO

NEW YORK YORK

PHILADELPHIA PHILADELPHIA

PITTSBURGH PITTSBURGH

CLEVELAND CLEVELAND COLUMBUS COLUMBUS

INDIANAPOLIS INDIANAPOLIS

KANSAS KANSAS CITY CITY

WASHINGTON, D.C.

CINCINNATI CINCINNATI

ST. ST. LOUIS LOUIS

Transportation assets include Charlotte Douglas International Airport, four interstate highways, an inland terminal operated by the North Carolina Ports Authority, Norfolk Southern’s state-of-the-art intermodal facility and CSX’s newly launched express freight services to the Port of Wilmington.

C H AR LOTTE LOT T TT 100

160

200

322

ATLANTA ATLANTA

300

483

It’s no wonder that more than 60,000 people in the Charlotte region work directly in the Transportation and Logistics industry, and nearly 100,000 more work in Transportation and Logistics-related occupations.

400

644

500

805 TAMPA TAMPA

600 miles

966km

MIAMI MIAMI

THE LOGISTICS CONSULTING SERVICE INDUSTRY IN THE CHARLOTTE REGION IS PROJECTED TO GROW BY

1 0 L A R G E S T L O G I S T I C S E M P L OY E R S COMPANY

LINE OF BUSINESS

11,000

Scheduled Passenger Air Transportation

Cardinal Logistics Holdings, LLC

3,040

General Freight Trucking, Long Distance, Truckload

Horizon Lines Holding Corp.

1,598

Freight Transportation Arrangement

892

Freight Transportation Arrangement

800

Couriers and Express Delivery Services

607

Couriers and Express Delivery Services

600

Other Support Activities for Air Transportation

Cargo Transporters Inc

500

General Freight Long Distance, Truckload

APM Terminals North America, Inc.

475

Marine Cargo Handling

Charlotte Douglas Airport

400

Airport Operations

American Airlines Inc

Xpo Logistics, LLC FedEx Ground FedEx Freight Corp National Aviation Services LLC

20

REGIONAL EMPLOYMENT

Source: Charlotte Regional Business Alliance Data, Industry databases, Business Wise

3% ANNUALLY THROUGH 2022 .

(Source: JobsEQ)

TOP 10 DI S TR I B U TI ON C ENT ERS COMPANY

REGIONAL EMPLOYMENT

INDUSTRY SERVED

Amazon

2,200*

Online Retail

Target Corp/ Distribution Center

1,500

Retail Stores

Universal Distribution Group LLC

950

Auto Parts

Wesco Distribution Inc.

900

Electronics

United States Postal Services

800

Postal Services

Stanley Black & Decker

680

Tool Manufacturer

The Walking Co./ Distribution

500

Retail Stores

Distribution & Marketing Services, Inc

500

Manufacturers

Advance Auto Parts/Distribution Ctr

460

Auto Parts

Sunbelt Furniture Xpress, Inc.

240

Furniture

Source: Charlotte Regional Business Alliance Data, Industry databases, Business Wise; *In July 2018, Amazon announced the addition of 1,500 jobs at a new, hightech distribution center in Northwest Charlotte


BY THE NUMBERS

50

4

200

HIGHER THAN NATIONAL AVERAGE EMPLOYMENT IN TRANSPORTATION

LIFT CAPACITY AT THE CHARLOTTE INTERMODAL FACILITY

MAJOR INTERSTATE HIGHWAYS

53% of the U.S. population lives within 650 miles of Charlotte: That's 2 hours by plane; 12 hours by truck.

CHARLOTTE REGIONAL INTERMODAL FACILITY AT CLT

NORFOLK SOUTHERN CRESCENT RAIL CORRIDOR

IREDELL CO.

• 200-acre facility

ALEXANDER CO.

• Capable of 200,000 lifts per year • Connects to intermodal facilities at Port of Charleston

• $2.5 billion infrastructure project

77

• Connects New Orleans and New York City, passing through CLT

STATESVILL E HICKORY

40

S A L I S B URY NEWTON

MOORESVILLE

CATAWBA CO.

WILSON AIR CENTER

LINCOLN CO.

• Executive terminal

77

LINCOLNTON

• 250,000 square feet of heated hanger space

85 D A V I D SON

ROWAN CO.

CHARLOTTE INLAND TERMINAL

K A N N A P OL I S

• 16 acres

HUNTER SV I LLE C ON C ORD

GASTON CO. SHELB Y

CLEVELAND CO.

CABARRUS CO.

• Stacking space for 391 containers

A L B E M A R LE

• Connects to Port of Wilmington, NC via CSX Double Stack route

CHARLOTTE

S.C. 485

YORK CO.

WEDDINGTO N

M ON R OE

WI NGA T E

ROCK HILL

CSX DOUBLE-STACK LINE

ANSON CO. UNION CO.

77

• 44 million passengers served each year • M ore than 150,000 tons of cargo shipped annually

STANLY CO.

MINT HILL

N.C. C L O V ER ER

• More than 700 daily flights to more than 170 destinations

MOUNT HOLLY

G ASTONIA 85

CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT

MECKLENBURG CO.

S.C.

LANCASTER CO. YORK CHESTER

LANC ASTER

• Access to Port of Wilmington • Queen City Express Service

N.C. N.C.

P A GELA ND

CHESTER F I ELD CHER A W

CHESTERFIELD CO.

CHESTER CO.

FOREIGN TRADE ZONE 57

LEGEND CHARLOTTE INLAND TERMINAL

RAILROAD NETWORK

INTERMODAL FACILITIES

PUBLIC USE AIRPORTS

CLT INTERNATIONAL AIRPORT

21


I N TE RN AT I O N A L B US I NE S S Charlotte has experienced impressive growth in international business. The presence of internationally owned businesses in the area dates back to 1925 when Sandoz Corporation moved to Charlotte. Currently, there are 1,041 firms in the region, representing 45 different countries and employing more than 66,000 people.

people from around the globe. Charlotte offers exceptional air service, a foreign trade zone, transparent government and business practices and numerous nonprofit organizations that focus on international business, foreign policy and global culture. Charlotte is home to honorary consuls of Austria, Canada, France, Germany, Great Britain, Guatemala, Hungary, Ireland, Italy, Mexico, Moldova, Nicaragua and Switzerland.

Charlotte offers a nurturing climate for regional, national and international companies of all sizes. The area’s high quality of life, reasonable cost of living, worldclass arts, major league sports and educational and advancement opportunities attract talented

A steady influx of new residents moving to Charlotte each year keeps the city’s business

and social structure fresh and vibrant. Charlotte welcomes new leaders and encourages them to help shape its future. This is an easy city for making fresh starts and leaving a mark on a company or the community. Our business community is actively engaged in steering public policy, and many of Charlotte’s top leaders come directly from the corporate sector, making Charlotte one of the most business-focused cities in the United States.

I N T E R N AT I O N A L B U S I N E S S E S BY PA R E N T CO U N T RY COUNTRY OF PARENT COMPANY

REGIONAL EMPLOYMENT

COMPANIES

LOCATIONS

Germany

215

241

17,020

United Kingdom

121

163

6,585

Canada

100

119

5,384

THE CHARLOTTE

Japan

81

89

6,268

MSA INCREASED

France

58

67

4,304

Switzerland

57

67

3,395

Italy

51

52

2,242

The Netherlands

49

59

3,767

China

48

44

1,569

Sweden

38

49

3,161

Ireland

21

28

3,728

Australia

18

22

793

India

18

16

173

Belgium

15

15

365

Other

151

162

7,431

1,041

1,193

66,185

EXPORTS FROM

MORE THAN

238.4 % SINCE 20 09. Source: International Trade Administration

GRAND TOTAL

Sources: Charlotte Alliance Data

22

F O R A F U L L L I S T O F I N T E R N AT I O N A L B U S I N E S S E S , V I S I T


BY THE NUMBERS

13 INTERNATIONAL CONSULATES

245 FOREIGN-BORN RESIDENTS (Source: U.S. Census American Community Survey)

1,041

34 INTERNATIONAL NON-STOP FLIGHT DESTINATIONS (Source: Charlotte Douglas International Airport)

International businesses (Source: Charlotte Regional Business Alliance International Business Directory)

IN T E RNATI ON O N A L F I R M S I N TH E C H ARLOTTE R EG ION

10 OR FEWER COMPANIES 11 TO 25 COMPANIES 26 TO 50 COMPANIES 51 TO 100 COMPANIES MORE THAN 100 COMPANIES

C H A R L O T T E R E G I O N . C O M / I N T E R N AT I O N A L B U S I N E S S .

23


THE CHARLOTTE AREA HAS 2 X THE N AT I O N A L AV E R A G E O F P E O P L E WORKING IN HEADQUARTERS O P E R AT I O N S .

CO R PO RAT E HEA DQUA RT E RS

Source: U.S. Bureau of Labor Statistics via JobsEQ

High-quality talent, low cost of living and easy access to markets makes Charlotte the ideal location for your headquarters operation. With the world’s seventh busiest airport, the nation’s second-largest banking center and as the number-one destination for relocating millennials, Charlotte has become one of the fastest-growing cities in the country.

World-class cultural amenities – from NFL and NBA sports to Broadway shows to outdoor amenities – complete an ideal environment to live, work and play.

It’s no wonder that more than 425 companies from diverse industries – finance, technology, energy and manufacturing, among others - have made Charlotte their global or North American home. Another 250-plus house their regional headquarters here, including Wells Fargo’s east coast headquarters and largest employment base with more than 24,000 employees. A growing professional services and administrative support sector of more than 14,000 companies – including law firms, consultants, accountants - offer headquarters operations all the necessary support services.

H E A D Q U A R T E R S O P E R AT I O N S

W I T H M O R E T H A N 1 , 0 0 0 R E G I O N A L E M P LOY E E S

CITY

REGIONAL EMPLOYEES

Atrium Health (formerly Carolinas HealthCare System)

Charlotte

35,700

Health Care

Wells Fargo*

Charlotte

24,500

Financial Services

Bank of America

Charlotte

15,000

Financial Services

COMPANY

SECTOR

4,30 0 BUSINESS-

Duke Energy

Charlotte

7,900

Utilities

Red Ventures LP

Fort Mill

3,250

Technology

Ingersoll Rand

Davidson

1,915

Manufacturing

Lash Group

Fort Mill

1,900

Health Care

Food Lion LLC

Salisbury

1,500

Retail Trade

Family Dollar Stores Inc

Matthews

1,400

Retail Trade

Sealed Air

Charlotte

1,400

Manufacturing

Schaeffler Group

Fort Mill

1,400

Manufacturing

THE CHARLOTTE

Coca-Cola Bottling Co Consolidated

Charlotte

1,350

Manufacturing

REGION EVERY

Belk Inc

Charlotte

1,300

Retail Trade

Snyder's-Lance

Charlotte

1,300

Manufacturing

YEAR , INCLUDING

Premier Inc

Fort Mill

1,200

Health Care

Compass Group North America

Charlotte

1,200

Retail Trade

AvidXchange

Charlotte

1,200

FinTech

Movement Mortgage

Fort Mill

1,000

Finance

OrthoCarolina

Charlotte

1,000

Health Care

*Wells Fargo’s east coast headquarters and largest employment base is located in Charlotte; Official National Headquarters is located in San Francisco.

24

MORE THAN

Sources: Charlotte Regional Business Alliance Research, Business Wise

REL ATED CERTIFICATES AND DEGREES ARE AWARDED IN

50 0+ MBAS Source: National Center for Education Statistics via JobsEQ, 2018


CHARLOTTE’S PROFESSIONAL SERVICES SECTOR HAS GROWN BY MORE THAN

80%

SINCE 2001.

Source: Bureau of Labor Statistics via JobsEQ

BY THE NUMBERS

45

425 CORPORATE HEADQUARTERS ACROSS ALL INDUSTRIES

16

OF MECKLENBURG COUNTY ADULTS HAVE A BACHELOR'S DEGREE OR HIGHER

FORTUNE 1000 HEADQUARTERS

2.5% - one of the lowest flat corporate tax rates in the nation, as

of 2019, helps N.C. regularly rank high in business friendliness. RECENT MAJOR HEADQUARTERS RELOCATIONS

MSA HEADQUARTERS TALENT POOL, CHARLOTTE MSA 2017 AVERAGE ANNUAL PROJECTED GROWTH RATE ANNUAL GROWTH SINCE 2013 BY 2028

2018 MSA EMPLOYMENT

AVERAGE ANNUAL WAGES

LOCATION QUOTIENT*

Technology Occupations

46,298

$91,900

1.21

5.5%

2.1%

Management Occupations

33,590

$147,800

1.08

3.7%

1.8%

Operations Occupations

25,941

$83,200

1.14

3.9%

2.0%

Sales and Marketing Occupations

22,190

$75,200

1.21

3.8%

2.0%

Accounting and Analysis Occupations

16,786

$78,300

1.22

4.1%

1.9%

Legal Occupations

8,325

$111,000

0.78

1.6%

1.7%

TALENT POOLS

(Source: Bureau of Labor Statistics, JobsEQ; *Location Quotients are a measure of concentration of an occupation. LQs higher than 1.0 mean an area has a higher concentration of these occupations than the national average. Scores lower than 1.0 means the area's concentration is below average.)

MORE THAN

250

FORTUNE 500 COMPANIES HAVE SOME PRESENCE IN THE CHARLOTTE AREA Source: Charlotte Chamber

25


E NE N E RGY

ENGINE AND POWER EQUIPMENT ACCOUNT FOR

$730 MILLION

OF THE CHARLOTTE

A R E A’ S E X P O R T S A N N U A L LY A N D S U P P O R T M O R E THAN

4,000

J O B S . S I E M E N S ’ M A N U FA C T U R I N G

P L A N T I N S O U T H W E S T C H A R LOT T E E M P LOYS M O R E THAN

Source: Brookings Institute

The energy sector plays a major role in Charlotte’s economy. More than 300 energy-focused companies employ more than 35,000 people in the Charlotte area, from nuclear multinationals to major utilities to turbine manufacturers to service providers and suppliers focused on the energy sector. In fact, four of the region’s 16 Fortune 1000 headquarters – Duke Energy, Albemarle Corporation, Curtiss-Wright and SPX Flow – are directly involved in the energy sector or its supply chain. Research institutes such as UNC Charlotte’s Energy Production and Infrastructure Center (EPIC), EPRI and industry groups such as E4Carolinas and CLT Joules round out a thriving energy ecosystem attracting relocating companies from throughout the world and supporting homegrown highgrowth energy startups.

T O P E N E R GY I N D U S T R I E S

TOP E N E RGY COMPANIES

REGIONAL EMPLOYMENT

PROJECTED ANNUAL GROWTH THROUGH 2022

COMPANY

TOTAL REGIONAL EMPLOYEES

SPECIALTY

Engineering Services

7,383

5.0%

Duke Energy Corp

7,959

Electric Utility

Nonresidential Electrical Contractors and Other Wiring Installation Contractors

5,105

4.0%

Ingersoll Rand

1,915

Thermal Manufacturer

Residential Electrical Contractors and Other Wiring Installation Contractors

Siemens Energy

1,725

Turbine Manufacturer

3,654

5.6%

ATI Specialty Metals

1,400

Metal Alloy Production

Other Scientific and Technical Consulting Services

2,526

25.2%

United Technologies Corporation

870

Aerospace Systems

Nuclear Electric Power Generation

2,079

0.6%

Electrolux

860

Appliance R & D

Water and Sewer Line and Related Construction

2,119

9.1%

Piedmont Natural Gas

687

Natural Gas Utility

INDUSRY

Turbine and Turbine Generator Set Units Manufacturing

1,627

0.6%

PPG Industries, Inc.

650

Specialty Materials Supplier

Electric Power Distribution

1,053

5.2%

ABB

575

Electronics Manufacturer

Power and Communication Line and Related Structures Construction

1,000

2.8%

Celgard, LLC

545

Battery Manufacturer

Current-Carrying Wiring Device Manufacturing

734

0.7%

Primary Battery Manufacturing

474

1.6%

All Other Miscellaneous Electrical Equipment Manufacturing

397

4.3%

Other Lighting Equipment Manufacturing

89

0.6%

35,228

4.6%

Total energy employees

WECTEC LLC

530

Nuclear Staffing

Resolute Forest Products, Inc.

500

Cogeneration Facility

Parker Hannifin Corporation

460

Equipment Manufacturer

(Source: Charlotte Regional Business Alliance Research)

(Source: JobsEQ and Bureau of Labor Statistics 2018)

26

1,700.


THE CAROLINAS MAKE UP THE LARGEST SOLAR ENERGY ECONOMY IN THE E A S T E R N U N I T E D S TAT E S , W I T H M O R E T H A N

2 G I G AWAT T S

OF SOLAR-

G E N E R AT I N G C A PA C I T Y. M O R E T H A N 4 0 0 C O M PA N I E S I N T H E S O L A R VA L U E C H A I N I N T H E T W O S TAT E S E M P L O Y M O R E T H A N 7 , 0 0 0 P E O P L E . (Source: E4 Carolinas, N.C. Sustainable Energy Association, S.C. Clean Energy Business Alliance)

BY THE NUMBERS

98.6

450

200

3,100

MILLION NUCLEAR MEGAWATTS GENERATED IN NORTH AND SOUTH CAROLINA

PRODUCTIVITY GENERATED PER ENERGY MANUFACTURING WORKER IN CHARLOTTE

PEOPLE EMPLOYEED IN THE ENERGY INDUSTRY IN NORTH AND SOUTH CAROLINA

POWER PLANTS WITHIN 12HOUR TRUCKING DISTANCE

THOUSAND

LARGEST 15 OCCUPATIONS IN LOGISTICS & DISTRIBUTION SECTOR

(Sources include: US Energy Information Administration and Bureau of Labor Statistics via JobsEQ 2018)

ANNUAL GROWTH THROUGH 2022

REGIONAL EMPLOYMENT

AVERAGE WAGE

Electricians

5,298

43,500

0.96

120

1.6%

Machinists

3,623

42,900

1.13

110

0.9%

Welders, Cutters, Solderers, and Brazers

3,222

45,100

1.00

63

1.3%

Industrial Machinery Mechanics

3,136

50,000

1.12

84

1.3%

Civil Engineers

2,493

86,300

1.02

123

2.0%

Mechanical Engineers

2,359

83,000

1.01

163

1.6%

Industrial Engineers

2,082

81,500

1.00

87

1.7%

THE CHARLOTTE

Telecommunications Equipment Installers and Repairers, Except Line Installers

2,060

53,000

1.11

129

0.1%

REGION AWARD

Electrical Engineers

1,355

112,900

0.87

134

1.7%

MORE THAN

Helpers-Electricians

1,044

29,400

1.67

25

1.7%

Electrical and Electronic Engineering Technicians

629

55,700

0.56

11

1.2%

2,500 ENERGY-

Electrical Power-Line Installers and Repairers

579

52,700

0.58

32

2.0%

RELEVANT

Nuclear Engineers

377

101,400

2.52

12

1.1%

CERTIFICATES AND

Nuclear Power Reactor Operators

240

90,300

4.08

2

-0.1%

Nuclear Technicians

202

70,500

3.28

2

1.0%

OCCUPATION

LOCATION CURRENT QUOTIENT* ONLINE JOBS

Source: JobsEQ and Bureau of Labor Statistics 2018; *Location Quotient is the concentration of an industry compared to the national average. Industries with location quotients above 1.0 have greater than the national average concentration.

EDUCATIONAL INSTITUTIONS IN

DEGREES EACH YEAR . Source: National Center for Education Statistics via JobsEQ

35,000

MORE THAN PEOPLE ARE DIRECTLY EMPLOYED IN THE ENERGY SECTOR IN THE CHARLOTTE AREA AND NEARLY 60,000 WORK IN ENERGYRELATED OCCUPATIONS (Source: BLS and JobsEQ, 2018)

27


L EGAL I S S U E S FO R I NT E RN ATIONAL B U S I NE S SE S Foreign companies must consider various legal issues for doing business in North Carolina. The issues may vary from company to company and will often depend on the company’s size as well as its industry sector.

DOI N G B U S I NES S IN N O RT H C A ROLINA A company must decide which structure for its business will be the most appropriate for its operation in North Carolina (or the United States in general). There are several entities that can be chosen by an investor with the most common being subchapter C corporations and limited liability companies. Each type has its own advantages and disadvantages. The following summaries provide a bit more information on each.

COR PO R AT I O NS Corporations offer a significant advantage by providing limited liability to the shareholders. North Carolina corporations are often set up as a wholly owned subsidiary of the foreign parent company or is directly owned by the private owners of the foreign company. In addition, joint ventures and other mixed ownership scenarios are also possible. The formation of a corporation in the United States is governed by state law and not by federal law. Foreign investors should consider the tax implications relating to the formation and operation of a North Carolina corporation. The North Carolina Corporation will be subject to federal and state income taxes. The maximum federal corporate income tax rate is 21 percent while the maximum North Carolina corporate income tax rate is 3 percent in 2018, falling to 2.5 percent in 2019. The main disadvantage of a corporate form of doing business in the United States is the double taxation of income. Any taxable net income of the corporation will be taxed at the federal and state corporate income tax rates. Also, when the after-tax profits of the corporation are distributed to its shareholders, the shareholders are also taxed at the federal and state rates on these distributions. The tax paid by the shareholders will vary depending on their location. If the shareholder resides in the United States, the distributions will generally be taxed at a flat 30 percent rate. This rate may be reduced is the U.S. has a tax treaty with the foreign investor’s home country. FOR MORE I NFO R M AT I O N O N START I N G A B USINESS I N CHAR LOT T E, VI SI T CHARLOTTEREGION.COM/INCENTIVES.

28

LIM ITE D LIA BILITY CO M PANIE S (LLC) An LLC in essence is a hybrid of a corporation and a partnership. It can provide its owners with the limited liability enjoyed by the shareholders of a corporation with the additional advantage of a single level of federal and state taxation in the United States. Members only pay tax on the taxable income of the LLC and “double taxation” in the United States is avoided. The disadvantage of an LLC is that the foreign member of an LLC must pay tax on its income from the LLC and must file U.S. tax returns. There are ways to structure a U.S. investment so that the foreign investor’s main operating company is not exposed to U.S. taxation through an LLC. Much of this structuring involves tax considerations in the foreign investor’s home country. In deciding between doing business in the United States through an LLC or a corporation, the tax laws of the foreign investor’s home country should also be considered so the structure with the maximum overall benefit for the investors can be established.

OTHE R E NTITIE S Other forms of business entities available to a foreign investor include general partnerships and limited partnerships. Foreign investors generally do not choose a general partnership because each partner’s potential liability is unlimited. A limited partnership may be selected in certain circumstances. A limited partnership has two classes of partners. The general partner(s) generally manages the day-to-day operations of the partnership and has unlimited liability for all debts and obligations of the limited partnership. Limited partners are similar to shareholders in a corporation in that they have limited liability and their losses are limited to the value of their investment in the limited partnership. Hybrid entities are an entity that is taxed in one country as a corporation but in another country as a partnership. This structure could create significant tax advantages. Depending on the tax system in the foreign country of the members, the LLC may be taxed in the foreign country as a partnership. Whether the advantage of this hybrid tax treatment is available will depend on the respective income tax treaty between the United States and the foreign country. Investors should consult with their tax advisors to determine the applicable tax laws of their respective countries.


I MMIG RATIO N & VI SAS U.S. immigration laws are very complex and can cause problems and delays for those who fail to plan ahead. U.S. immigration laws distinguish between two types of persons: nonimmigrants (persons coming to the United States for a limited temporary period of time for business or pleasure) and immigrants (persons intending to remain in the United States permanently). Petitions or applications for immigration benefits are submitted either directly to a U.S. embassy or consulate abroad or to U.S. Citizenship and Immigration Services. Most foreign employees work in the United States pursuant to a short-term, nonimmigrant visa. There are six commonly used nonimmigrant visas: the B-1, L-1, E, H-1B, O-1 and TN (or NAFTA) visas. Lawful Permanent Residency (also known as the Green Card) may be obtained in a number of ways, principally through employment or a family relationship. The permanent residency process can take several years, so foreign nationals and employers should consider long-term plans as soon as possible.

B-1 BUSINESS VISITOR VISAS

H-1B VISAS

The B-1 business visitor visa enables a business traveler to visit the United States for a short period of time (normally six months or less) with extensions possible in some cases. He or she may not work for a U.S. company or be paid in the U.S.

H-1B Visas are available to individuals coming to the United States to be employed in specialty occupations. Specialty occupations include those that require the services of a professional with a university degree (or equivalent), such as scientists, engineers, computer systems analysts, etc. H-1B visas may be issued for an initial threeyear period and may be extended for an additional three years, for a maximum consecutive period of six years. There is an annual cap on the number of new H-1B visas that are granted each fiscal year and the cap has been reached every year since 2004.

VISA WAIVER PROGRAM Similar to the B-1 visa, citizens of most European nations, Japan and certain other countries may take advantage of the Visa Waiver Program to enter the United States for a period of 90 days, provided they are not paid in the U.S. and meet certain other requirements including having a machine readable passport.

L-1 INTRA-COMPANY TRANSFEREE VISAS Available for managers, executives and individuals with “specialized knowledge” of the company’s business or products who have worked abroad for at least one year within the preceding three years with a related company.

E VISAS Provided for by a treaty between the United States and many foreign countries, the E visa authorizes the employment of executives, managers or individuals who hold “essential skills” by U.S. companies. An E-1 visa application requires proof that “substantial trade” is being carried between the U.S. and the treaty country. An E-2 visa application requires a showing that a “substantial investment” has been made by an overseas company or by foreign nationals in the United States.

O-1 VISAS O-1 Visas are available to aliens of extraordinary ability, including exceptional ability in business. To obtain O-1 classification, he or she must establish that he or she has achieved national or international acclaim. An O-1 petition may be approved for an initial period of three years, and extensions may be granted in one-year increments.

TN OR NAFTA VISA Permits citizens of Canada or Mexico to work in the United States in certain specialty occupations, such as lawyers, accountants or engineers. Canadian TN applicants may be granted a three-year admission, and Mexican TN applicants may be granted a one-year visa, but should be admitted to work for three years. The visas may be extended indefinitely so long as the foreign national has nonimmigrant intent.

29


TAXE S CORPORATE INCOME TAX

PERSONAL INCOME TAX

2 . 5 % 5 .499%

SALES AND USE TAX

7.25%

FLAT RATE

FALLING TO 2.5% IN 2019

STATEWIDE SALES TAX IS 4.75% MECKLENBURG COUNTY LEVIES AN ADDITIONAL 2.5%

PROPERTY TAX

$ 1 .31 00

P ER $ 1 0 0 O F AS S E S S E D VALU E I N C HARLOTTE Note: Rate is for Charlotte and each city within the county levies its own rate.

OTHER TA X ES FR ANC HI SE TA X

SI NGLE SALE S FACTO R TAX

PAY RO LL TAX E S

All corporations operating in the state are levied a franchise tax at the rate of $1.50 per $1,000 of the largest of three alternative bases: 1. The amount of the capital stock, surplus and undivided profits apportionable to the state. 2. Fifty-five percent of appraised value of property in the state subject to local taxation. 3. The book value of real and tangible personal property in the state less any debt outstanding that was created to acquire or improve real property in the state. Book value may be computed by use of the same depreciation methods as are permitted for federal income tax purposes.

These are levied by the county and city government on a variety of businesses. These fees vary with the type of business and volume of sales. Though not a tax, most states require an insurance fee be paid on a portion of taxable wages. This fee varies with each business based on its history of unemployment claims. North Carolina requires a fee of 1.2 percent of the first $19,700 in wages paid per employee for new firms operating within the state. Existing firms are charged a rate from 0-6.84 percent of the first $19,700 in taxable wages; the average rate is 1.2 percent.

Employers are required to withhold several types of payroll taxes. The Social Security tax imposed on employers and employees is called the FICA tax, which is based on wages. Wages in excess of an annually adjusted FICA cap are excluded from the definition of FICA wages. The tax is generally imposed at the same rate on both the employee and employer.

The minimum franchise tax is $35. Franchise tax and income tax are reported on the same return.

30

There is also a hospital insurance tax of 1.45 percent of Medicare wages imposed at the same rate on both the employer and the employee. Medicare does not have a cap and applies to almost all wages.

FOR DETAILED PROPERTY TAX INFORMATION, VISIT CHARLOTTEREGION.COM/PROPERTYTAX.


MAJOR INCENTIVE PROGRAMS J OB DE VE LOP ME NT INVESTMENT G R A N T P RO G RA M (JDIG) The JDIG program serves as a deal closing incentive for large job creation projects considering a location in North Carolina as well as other states. This program will rebate a negotiated portion of a company’s withholding taxes generated by the new project over a set number of years, with a maximum period of 12 years. Projects that create a minimum of 250 new jobs and pay a minimum average annual wage of $60,000 may potentially qualify for the JDIG program. The JDIG program also requires that the local government in the community where the project intends to locate also participate with a local grant representing an appropriate amount based on the specifications of the project.

O NE N ORT H C AROLI NA FUND G R A N T P RO G RA M (ONE NC) The One NC program also serves as a deal closing incentive for large job creation projects considering a location in North Carolina as well as other states but may not otherwise qualify for a JDIG. This program will offer a specific grant amount per new job created by the project. This program also requires a matching amount grant from the local government where the project is proposed to locate. The state will match the funds $1:$1 with the local funds. This program also requires the new jobs to pay a minimum average annual salary of $60,000.

C US TO MIZE D WORK FORCE T RA I NIN G AS S IS TANCE North Carolina was one of the first states to develop a customized workforce training program through its community college system, dating back to 1958. Today, its program is still regarded as one of the top in the nation in meeting the needs of new and expanding companies. Administered in Mecklenburg County by Central Piedmont Community College (CPCC), the program is available to both new and expanding companies that are creating new jobs, making an appreciable capital investment or may be deploying new technology in their facility. Eligible businesses include manufacturing, distribution centers, air courier services, customer support centers, national headquarters and technology intensive operations in the IT and life sciences areas. CPCC personnel will develop a customized training program based on the individual needs of the company. Most, if not all, of the costs of the training are covered by state funding. CPCC also offers very affordable training and education programs for existing employees to enhance their workforce skills.

E M P LOY M E NT R EC RU I TM E NT AND S C R E E NI NG Finding the best talent for a new or expanding operation is one of, if not the most important tasks for a company. In Mecklenburg County, Charlotte Works provides their services at no cost to the company. Charlotte Works is a state funded organization. Charlotte Works will develop a list of job openings and requirements for each position with the client company. Charlotte Works then matches applicants with job positions and refers selected individuals to the company. Charlotte Works accesses numerous statewide databases of applicants as well as many Web-based portals to identify the candidates. Charlotte Works screens the applicants based on the specific needs of the company. Charlotte Works can provide on-site space for interviews and employee orientation sessions. Charlotte Works also has on-the-job training grants available and can assist companies in determining their eligibility for those funds.

LOC AL B U S I NE S S I NVE S TM E NT GR ANT P ROGR AM ( B I P ) The BIP is designed to encourage job creation and capital investment in Mecklenburg County and several of the municipalities within the county. Qualifying projects that meet job creation, capital investment and average wage requirements may receive a cash grant over a specific number of years. The program also requires that the project be competitive and that the grant is a determining factor in the company choosing to locate in Mecklenburg County versus other locations outside the county. Projects that locate within the BIP zone that invest a minimum of $3 million and create a minimum of 20 new fulltime jobs paying an average wage of $48,297 of higher may be considered for the program. The grant term is three years and the grant amount will equal 90 percent of the net new property taxes generated by the project. Existing businesses in Mecklenburg County are eligible for an additional two year term. Large impact projects that have a minimum capital investment of $30 million and will create 150 new fulltime jobs paying an average wage of $60,372 or higher may qualify for a large impact grant. The grant term is five years and the grant amount will be 90 percent for projects located inside the investment grant zone or 50 percent for projects located outside the zone. Major headquarters projects will be considered on a case-by-case basis for a grant. These projects would be defined as a corporate, regional or divisional headquarters of a Fortune 1000 company with an average annual wage exceeding 200 percent of the regional average wage. Currently that figure is $96,595. Currently in Mecklenburg County, the municipalities of Charlotte, Cornelius, Davidson, Huntersville and Matthews have adopted incentive grant policies.

U TI L I TY R ATE D I S COU NTS The utility companies that service Mecklenburg County may offer discounts to new and expanding companies that add significant service to the utility’s system. Charlotte Chamber economic development project managers will work with client companies and representatives of the utility companies to determine the applicability of these programs.

31


QUAL I T Y O F LIVIN G EN T ERTA I N MEN T & B REW ERI ES Charlotteans love to socialize and celebrate; as a result, the community calendar is full of events. Community events range from holiday parades to huge outdoor street festivals and cultural celebrations. Visit charlottecultureguide.com to explore hundreds of local cultural events. Charlotte has emerged as a Top 10 “New Beer City,” according to Forbes magazine. More than 60 breweries and distilleries in the Charlotte area offer craft brews and liquors. Photo by Sycamore Brewing

A RTS & C U LT U R E With several theater venues, art and history museums and more than 100 symphony performances annually, Charlotte’s cultural community is alive and thriving. Residents and visitors can discover Charlotte’s rich history and heritage by exploring museums, historic sites and cultural centers. Children have an array of cultural avenues in which to participate, including choir and theater as well as hands-on children’s museums. The Arts and Science Council supports the arts through grant making, youth cultural field trips and other programs. For more information, visit artsandscience.org.

Photo by David Jaffe

FOR UP-TO-DATE INFORMATION AND DATA ON THE CHARLOTTE ECONOMY, CHECK OUT OUR CHARLOTTEREGION.COM/MECKLENBURGECONOMYQUARTERLY.


O UT D O O RS & A DV EN T URE With more than 210 parks, Mecklenburg County provides excellent access to tennis courts, swimming pools, golf courses, fitness trails, mountain biking, fishing and much more. The U.S. National Whitewater Center in Southwest Charlotte hosts Olympic hopefuls as they train for kayak and canoe slalom events. The Center also offers hiking and biking trails, ziplining, ropes courses and paddle boarding for visitors.

Photo by U.S. National Whitewater Center

SPO RTS & E VE N T S Charlotte is home to...

NASCAR

NFL’s Carolina Panthers

AHL's Charlotte Checkers

NBA’s Charlotte Hornets

MLL's Charlotte Hounds

AAA baseball's Charlotte

USL PRO soccer team,

Knights

Charlotte Independence

Charlotte also hosts several special sporting events such as the annual Wells Fargo PGA Tournament and hosted the 99th PGA Championship in 2017. The city will also host the NBA All-Star Game in 2019. International soccer teams A.C. Milan, Bayern Munich, Borussia Dortmund, Chelsea, Inter Milan, Liverpool and Paris Saint Germain, have played summer friendlies in Charlotte during the International Champions Cup.

INTERACTIVE DASHBOARDS AT

Photo by: Keith Allison (Flickr) [CC BY-SA 2.0 (http://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia Commons


We are fluent in the language of business For more than 30 years, our business and tax advice has successfully guided privately held international companies coming from the Americas, Europe, Middle East, Africa, and Asia-Pacific to the Carolinas to establish or expand a subsidiary or presence in the Carolinas. We provide accounting, assurance, business advisory, and tax services, including        

Business entity selection Worldwide income tax optimization strategies Tax compliance services Expatriate services Transfer pricing studies and documentation Cloud-based accounting and financial services Audits, reviews and compilations Preparation of financial statements in accordance with U.S. GAAP, IFRSs or foreign GAAP conversion

GreerWalker.com | (704) 377 0239


The transatlantic law firm close to home Womble Bond Dickinson is a union of like minds with a single purpose; to champion the ambitions of our clients and prepare them for what tomorrow may bring.

Charlotte, NC One Wells Fargo Center Suite 3500 301 South College Street Charlotte, NC 28202

womblebonddickinson.com “Womble Bond Dickinson,” the “law firm” or the “firm” refers to the network of member firms of Womble Bond Dickinson (International) Limited, consisting of Womble Bond Dickinson (UK) LLP and Womble Bond Dickinson (US) LLP. Each of Womble Bond Dickinson (UK) LLP and Womble Bond Dickinson (US) LLP is a separate legal entity operating as an independent law firm. Womble Bond Dickinson (International) Limited does not practice law. Please see www.womblebonddickinson.com/us/ legal-notices for further details. ©2018 Womble Bond Dickinson (US) LLP


MANY THANKS TO OUR 2018 2019 ECONOMIC GROWTH FUND SPONSORS

PIONEER

LEADER

ADVOCATE

INTERNATIONAL ADVISORY COUNCIL

PARTNER AXA Equitable | Charlo‚e Regional Visitors Authority | Epiq Systems JLL | RS&H Architects-Engineers-Planners, Inc. | Rust Consul“ng | Shearman & Sterling Sherpa | Womble Bond Dickinson | Zeichner Ellman & Krause, LLP


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.