Economic Development

| ECONOMIC DEVELOPMENT | PPD influences regional economy

The growth Wilmington-headquartered PPD Inc. has experienced in the Port City is an economic driver for the region, local economic development leaders say.

On top of the global contract research organization’s large tax base in New Hanover County and its 1,800 local employees, it can also lay claim to having a big

CHRISTINA HALEY role in spawn-

O’NEAL ing the region’s clinical research organization (CRO) cluster. “Without PPD’s visionary leadership and long-term commitment to the Wilmington area, we might not have seen such a substantial CRO industry cluster develop here and in North Carolina,” said Randall Johnson, executive director of the Southeastern Office of the N.C. Biotechnology Center.

“We’re fortunate these companies and people thrive in our community, and we expect this industry to remain strong and continue growing in our region for decades to come,” he said.

In April, Massachusetts-based Thermo Fisher Scientific announced that it would purchase PPD for $17.4 and potential customer connections WBD officials remain hopeful billion. With the deal pending regu- for greater business opportunities,” PPD will retain its influential polatory approvals, company officials Johnson said. “The company will sition as a flagship company in the have not released details about plans continue to need our local clinical region, Satterfield said, adding that in Wilmington. research professionals to reach those Thermo Fisher, with operations

Johnson said that while the po- laudable goals.” across North Carolina, has done tential impacts of the acquisition Wilmington Business Develop- much for those communities it has on the region remain unclear, if the ment, an economic development invested in. deal is completed, there may be some organization focusing on Wilmington “It definitely has its eye on North change in PPD’s local operation and New Hanover and Pender coun- Carolina’s life sciences industry in a and workforce in the short term. It ties, keeps up with PPD, as it does major way, and that’s all based on could also have the potential to grow with many of the area’s corporate talent and workforce,” Satterfield activity and employment in the long entities, said Scott Satterfield, CEO said. “North Carolina’s life sciences term, he said. of WBD. economy is one of the great econom-

PPD’s acquisition continues a About the recent deal, Satterfield ic development success stories of the consolidation trend that is being seen said, “We’re in close touch with last 35 years, and PPD fueled Greater in the industry, with deals such as [PPD], and look forward to adding Wilmington’s participation in that LabCorp’s acquisition of Covance in value to PPD and Thermo Fisher as emergence.” 2015 and, this year, ICON’s pending they unite and craft strategies to meet $12 billion purchase of PRA Health what we anticipate will be some very Sciences, Johnson said. ambitious business objectives.”

“From my understanding, Ther- Satterfield attributes the success of mo Fisher and PPD do not intend PPD in Wilmington to boosting the the acquisition to gain significant region’s overall reputation as “fertile efficiencies through merging work- entrepreneurial grounds,” setting the forces; instead, the companies appear stage for companies like nCino, Live to be focused on accelerating growth Oak Bank and CastleBranch, he said. by offering more comprehensive “PPD also lent credibility to our services, creating more stream- status as a headquarters contender, lined communications and linkages helping pave the way for GE Nuclebetween components of the clinical ar’s [headquarters] arrival here in the trial process, and expanding existing early 2000s,” he added.

PHOTO C/O PPD Looming presence: In April, Massachusetts-based Thermo Fisher Scientific announced that it would purchase Wilmington-based PPD for $17.4 billion. PPD, a contract research organization, helped spur the growth of other CRO companies and jobs locally as it expanded over the years.

Port of Wilmington sees new monthly records

Recent figures indicate a boost in activity at the Port of Wilmington in March with new monthly records in container and intermodal rail moves.

“It was a really strong month across all sectors. There were a combination of factors that led to the growth,” said Brian Clark, executive director of N.C. Ports. “We did have a surge of vessels that were impacted elsewhere that arrived during the month. And we are seeing growth across many different sectors of cargo, but particularly in the refrigerated containers ... both import and export.”

There were a total of 18,782 container moves through the Port of Wilmington in March, up from the previous record of 17,114 moves in March 2018. The port, in its refrigerated container cargo in March, saw a record of 1,686 moves and an increase from the previous record set back in April 2020 with 1,459 moves.

N.C. Ports completed its $14 million refrigerated container yard expansion last spring, growing the Port of Wilmington’s capacity to handle refrigerated cargo. The ability to handle more cargo on the refrigerated container side of the ports’ business has been an ongoing piece of its capital plans.

Trade to the port has been impacted by the COVID-19 pandemic, but has seen some recovery, Clark said.

“The north-south cargo, so the Latin American services we have that call the port, have definitely rebounded. They were impacted last year by COVID as well as hurricanes that shut down certain locations where we see cargo coming from,” Clark said. “So that north-south trade has been very strong. We’ve also seen the European trade grow significantly over the last several months.”

Activity with Queen City Express, an intermodal rail service operated by Jacksonville, Florida-based CSX, also picked up in March. The month saw 989 containers moved, an increase from the previous record of 784 containers moved in August 2020.

The Queen City Express carries cargo by rail between the Port of Wilmington and the Charlotte Inland Port. The rail service was established in the summer of 2017, bringing back an intermodal rail component to the port after more than 30 years.

There were more than 33,800 TEUs (20-foot equivalent units) that went through the Port of Wilmington in March.

“As we look into the rest of the year’s forecast, we do have a very positive outlook. We’re cautiously optimistic on the last quarter of the year that we will finish ahead of our budget and our plan for the year,” Clark said. “We do take it as a very positive sign.”