Why has Charlotte been able to weather recent economic downturns, and can we continue to do so?
Well, each downturn is a little different but the last one in 2001 was largely centered in the high-tech sector and Charlotte doesn’t have a lot of exposure in that market. The current economic downturn is in the financial services industry and has impacted Charlotte most in terms of job loss. A lot of the mortgage banking industry jobs are located in the outskirts of Charlotte such as Fort Mill and Ballantyne, so that is where we’ve seen the most job loss, but there has been some cutback in the center city and in the legal community as well which services the mortgage sector. However, Charlotte is still seeing growth, which is not the situation in many other parts of country. Charlotte has actually benefited from some of the problems elsewhere. Places like Florida and California, which have become so expensive and such unstable markets, have individuals looking for alternatives, and Charlotte is a great one. We have seen record population growth and that growth fuels all kinds of service industries.
 Mortgage lending has tightened. Where do you expect this industry to be in the next year, two years, three years?
The mortgage industry will always be important to Charlotte because we have such a large number of skilled professionals in that area. When business was booming, a lot of companies expanded in Charlotte because they could instantly hire from this wealth of professionals, and all the infrastructure was already set up. Several years down the road when the mortgage industry has made a full comeback, this sector in Charlotte will fully recover. However, Charlotte is much more economically diverse than the financial sector. People tend to think in terms of the banks, which are certainly important, but if you look at the last two major office spaces secured in Uptown, it was by the Shaw group, which is an engineering firm. The NASCAR headquarters building will house many of their operations, which are much larger than people realize. One of the fastest- growing employers is Lowe’s Corporation, which has its headquarters in Mooresville and has attracted all kinds of suppliers. So, Charlotte’s economic base is extremely diverse, and we continue to attract business.
Comment on Charlotte’s job growth.
In 2007, 35,000 jobs were added to the Charlotte region. In 2008, we expect to add about half that, which is about 1.6%. You have to remember, that is still relatively healthy job growth and compares very well nationally when you look that most cities will be losing jobs. Also, job growth is not the whole picture. The single most important driver for economic growth in Charlotte is the airport. Almost every company that moves to the area sites the accessibility and ease of getting to and from the airport as a major reason for their decision. The Charlotte-Douglas International Airport is the only successful airline hub in the Southeast region other than Atlanta. We have nonstop flights to all major U.S. hubs, and many in the Caribbean. This is important to businesses as well as prospective newcomers. We’ve added 70,000 people to Charlotte’s population each year for the past two years, which is more than any other U.S. city. For all these people moving here, it is easy to get to and from airport and get where they need to go. Take, for example, the pharmaceutical or software engineer industry, where workers have to interact with people all over the country but can actually live anywhere as long as airline transportation is convenient.
What can Charlotte-Mecklenburg do to retain companies and keep them from moving across the SC border? Is this an issue?
We will always have to contend with companies jumping over the border of South Carolina since they have a much more aggressive incentive program, but I don’t see this as a major issue. A lot of those same companies will still demand a great deal of services from the Mecklenburg-area infrastructure. We will continue to see the Charlotte region spread further and further out. In some ways this competition helps because it serves as a checking mechanism for local government. They have to weigh the likelihood that companies will move across the state or county line if taxes or the regulatory burden gets too high.
~ Celina Mincey
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