1. State of the Region: Transition by Cooperation John D. Chaffee President & CEO

2. NCPED North Carolina Partnership for Economic Development Statewide Consistency, Regional Flexibility Charlotte Advantage West Piedmont Triad Research Triangle Southeast Northeast Eastern

3. NCER created in 1993 by NC Legislature in response to creation of GTP: self-selected members A regional municipality – consisting of 13 counties $15 million from license plate fee to create revolving loan fund for member counties (15% for operations) One-time state appropriation of $7.5 million for loan fund allocated equally among member counties Annual state appropriation for marketing (plus loan revenues and other sources that support operations) NCER Origin and Finances

4. Development Commission Board – 19 members One appointee per county (by County Commissioners) – 13 members Two each Appointees from the office of: –Governor –Speaker of the House –Senate President Pro Tempore NCER Governance

5. New Business Starts

6. Employment in Small Firms

7. ‘Federal legislation (2003) changed effect of NAFTA/CAFTA from job losses of 5,000/year to 25,000/year in our textile/apparel industry as a result of a surge in imports from SE Asia’ Trade agreements may be good for US trade but created problems for North Carolina and NCER Challenges: global & national situation – the economic slump and federal actions

8. Closures & Mass Layoffs

9. Nash Edgecombe Wilson Wayne Greene Pitt Duplin Lenoir Craven Jones Onslow Pamlico Carteret 2007 NCER Unemployment Rate 7-7.98-8.99-9.9 10 + 4-4.95-5.96-6.9

10. Nash Edgecombe Wilson Wayne Greene Pitt Duplin Lenoir Craven Jones Onslow Pamlico Carteret 2008 NCER Unemployment Rate 7-7.98-8.99-9.9 10 + 4-4.95-5.96-6.9

11. Nash Edgecombe Wilson Wayne Greene Pitt Duplin Lenoir Craven Jones Onslow Pamlico Carteret 2009 NCER Unemployment Rate 7-7.98-8.99-9.9 10 + 4-4.95-5.96-6.9

12. 2010 NCER Unemployment Rate 7-7.98-8.99-9.9 10 + 4-4.95-5.96-6.9 Nash Edgecombe Wilson Wayne Greene Pitt Duplin Lenoir Craven Jones Onslow Pamlico Carteret

13. 2011 NCER Unemployment Rate 7-7.98-8.99-9.9 10 + 4-4.95-5.96-6.9 Nash Edgecombe Wilson Wayne Greene Pitt Duplin Lenoir Craven Jones Onslow Pamlico Carteret

14. Obviously unemployment has fluctuated since the Great Recession then seemed to improve in 2010 but has actually drifted upward over the past year… So, what’s happened over the last twelve months?

15. Feb 2011 NCER Unemployment Rate7-7.98-8.99-9.9 10 + 4-4.95-5.96-6.9 Nash Edgecombe Wilson Wayne Greene Pitt Duplin Lenoir Craven Jones Onslow Pamlico Carteret

16. April 2011 NCER Unemployment Rate 7-7.98-8.99-9.9 10 + 4-4.95-5.96-6.9 Nash Edgecombe Wilson Wayne Greene Pitt Duplin Lenoir Craven Jones Onslow Pamlico Carteret

17. June 2011 NCER Unemployment Rate 7-7.98-8.99-9.9 10 + 4-4.95-5.96-6.9 Nash Edgecombe Wilson Wayne Greene Pitt Duplin Lenoir Craven Jones Onslow Pamlico Carteret

18. August 2011 NCER Unemployment Rate 7-7.98-8.99-9.9 10 + 4-4.95-5.96-6.9 Nash Edgecombe Wilson Wayne Greene Pitt Duplin Lenoir Craven Jones Onslow Pamlico Carteret

19. Oct 2011 NCER Unemployment Rate7-7.98-8.99-9.9 10 + 4-4.95-5.96-6.9 Nash Edgecombe Wilson Wayne Greene Pitt Duplin Lenoir Craven Jones Onslow Pamlico Carteret

20. Dec 2011 NCER Unemployment Rate7-7.98-8.99-9.9 10 + 4-4.95-5.96-6.9 Nash Edgecombe Wilson Wayne Greene Pitt Duplin Lenoir Craven Jones Onslow Pamlico Carteret

21. While private sector job growth continued during the latter half of the year, only Wayne/Greene saw declines in unemployment rates… Public sector job losses were a drag on economy with elimination of state/local government jobs Announced expansions as well as new company locations have not had much impact…yet…the impact of new primary job creation usually lags New developments will have an impact on success So…we began to see improvement…

22. People Living in Poverty

23. Travel & Tourism Expenditures

24. 3 eastern NC advanced concept (Hanbury Preservation & associates) to conduct feasibility study (GLF funding) Inventoried 100+ heritage assets in 40 counties Invited Coast Host TDAs to participate in study Conducted 6 public meetings 3 subregions & 3 themes (Settling a New World, Living with Land & Water, and Defense of a Nation) National Heritage Area designation

25. National Heritage Area Subregions

26. Where we succeeded : MBCOI – 5 universities, federal lab, ED agencies unite: $2.5 mil from NCBC for commercialization Workforce Development: all counties, CCs and WDBs under ASPIRE with statewide recognition NCER now leads all regions with # and % of CRCs – 4 counties among top 10 – will become a marketing advantage for NCER & our counties 2011: Transition through cooperation

27. NORTH CAROLINA (TOP 10 COUNTIES) Through December 2011 TOP 10 Counties in North Carolina – CRCs Awarded COUNTYBronzeSilverGoldTotal Wayne 2,1074,8761,3578,340 Robeson 1,3783,0116775,066 Guilford 1,1602,5729474,679 Rowan 6232,0548853,562 Gaston 7731,9646953,432 Lenoir 9581,8304023,190 Pitt 7211,6136522,986 Randolph 5291,4245192,472 Edgecombe 8031,3203422,465 Cleveland 5011,4894732,463

28. North Carolina Career Readiness Certificates Awarded

29. NCER chosen for regional pilot WorkReady Communities (key support – ECWDB & CCs) and received $130,000 from Rural Center STEM East – received $350,000 (Golden LEAF) for demonstration project with 4 school districts (CCs and key employers) - intent to spread network Where we succeeded

30. Goldsboro/Wayne County (Wayne/Lenoir CCs) recognized by AAR as ‘Best Practices’ for requiring CRCs for HS grads AND developing mid-level skills training in 90 days vs. 2 years Rocky Mount Metro – Top Small Metros in South by Southern Business & Development magazine Greenville - Top 10 FDI ‘American City of the Future’ (economic potential & human resources) Where we succeeded

31. Failed to close on a couple of significant projects Many expansions (confidence), few new projects Several key projects lingered (but remain active) Need to showcase entrepreneurial success and what services our partners can provide Educational progress, struggling in some measures Where we fell short

32. SAT Scores

33. ‘World is watching’ how we respond to labor needs of employers, especially STEM jobs So far – favorable reports by several firms: aerospace (Spirit & AAR on record with positive comments) and life science sectors (Metrics openly stated successful with scientific talent) Making progress in important categories We are making progress in other areas

34. Educational Requirements for U.S. Jobs 1973-2018 Source: Center on Education and the Workforce, Dec 2009

35. Educational Attainment

36. Community College Enrollment

37. ECU Engineering Graduates

38. Per Capita Income

39. Central Sub-Region Sanderson Farms (Lenoir) Smithfield Foods (Lenoir) The Pork Company (Duplin) AAR (Wayne) – 100 jobs Spirit AeroSystems-Gulfstream Package (Lenoir) – 150+ jobs West Pharmaceutical Services (Lenoir) Pioneer Hi-Bred R&D facility (Lenoir) - 10 jobs Cooper Standard Automotive (Wayne) - 137 jobs Coastal Sub-Region MBCOI to catalyze marine science sector (Carteret) Multiple plant expansions (Onslow) Regional Job Growth

40. Pitt Sub-Region Pioneer Surgical Orthobiologics – 10 jobs Confidential Records Management The Roberts Company - 29 Jobs (exp) Vidant Health Children’s Hospital – 200+ VA Medical Clinic – broke ground – 150 jobs North Sub-Region BD (Becton, Dickinson and Company) (Wilson) Superior Essex (Edgecombe) – 166 jobs QVC, Inc (Edgecombe) –expanded 500 jobs (Delayed until 2012) Keihin Carolina Systems Technology (Edgecombe) - 50 jobs Tobacco Rag Processors, Inc. (Wilson) -29 jobs Regional Job Growth

41. With continued support from our partners and a willingness to embrace innovative solutions, NCER will continue to make progress. Greene County is borrowing from NCER at 3.5% and making loans to small businesses at 4.5% to address financing issues and preserve/create jobs Pitt County continues to invest in Technology Enterprise Center to accommodate emerging life science companies Lenoir County borrowed NCER funds to expand industrial park infrastructure to serve new/expanding companies Making Progress

42. John D. Chaffee President and CEO North Carolina’s Eastern Region 3802 Hwy. 58 North Kinston, NC 28504 252-522-2400 chaffee@nceast.org www.nceast.org Questions?

43. Prospect Missions & Events YTD 2011

44. Current Projects by Cluster

45. NCER Clusters