Carolina Business Articles

Technology, Military Bases And Specialized Training Are Keys To Eastern Region's Growth

 By Mary Elle Hunter

      The multi-county partnership established by the North Carolina Assembly to promote economic development in a 13-county area of the eastern part of the state is strong and thriving. The region stretches from the northeastern counties of Nash, Edgecombe, and Wilson, through the mid-state counties of Greene, Wayne, Pitt, Lenoir, Craven, Jones and Duplin counties to the coastal Onslow, Carteret and Pamlico counties.

      Present and future technology is playing a very large role in the economic development picture of the Eastern Region. From a bio-diesel manufacturing facility that will turn soybeans into fuel, to the marine sciences sector, to the high-tech industries associated with, and attracted by, the military, the region represents the current statewide business and industry trend toward technical disciplines.

      The region contains major military installations at Camp LeJeune, Cherry Point and Seymour Johnson Air Force Base, which contribute significantly to the economy of several counties. Despite the BRAC (an acronym for the Department of Defense Base Realignment and Closure) decisions made late last year, none of these installations were adversely affected. In fact, personnel at the Marine's Camp LeJeune and adjoining New River Air Station will be substantially increased.

      The upcoming opening of the Gateway Technology Center in Rocky Mount, an Advanced Machining Center at the Global TransPark location in Kinston, and a new marine trades education center at Carteret Community College underline the importance of specialized training to meet the demands for a skilled labor force. These centers join the Institute of Aeronautical Technology at Craven Community College, Pitt County's Technology Enterprise Center of Eastern Carolina and East Carolina University with its Brody School of Medicine, as well as its offerings of programs in health sciences, biotech and engineering to provide a highly-skilled workforce to the region.

      One of the best examples of this trend was the establishment a few years ago of the North Carolina Marine Science and Education Partnership. An initiative of the Carteret County Economic Development office, its purpose was to bring together the diverse interests in the marine sciences, and its membership includes such institutions as the North Carolina State University Center for Marine Sciences and Technology; the Duke University Marine Laboratory; the National Oceanic and Atmospheric Administration Center for Coastal Fisheries and Habitat Research and the University of North Carolina at Chapel Hill Institute of Marine Sciences.

      The Eastern Region's efforts to promote and encourage economic development through a mix of low interest loans and marketing, business recruitment, Certified Industrial Sites and public relations plans, are complemented by the local economic development offices of the thirteen counties it represents, as well as by organizations such as the North Carolina Global TransPark also located in Kinston, and Carolinas Gateway Partnership representing Nash and Edgecombe counties. The Eastern Region also works closely with the Eastern Carolina Council and two other councils of government that have counties in the region, and their respective Workforce Development Boards.

      Erin Eatman, who coordinates marketing and communications for the Eastern Region, explains that the most recent example of a joint region and council effort was a planning grant from the U. S. Economic Development Administration. "The grant supported data gathering efforts that provided critical industry input into the Region's Strategic Vision Plan and the Councils' Certified Economic Development Strategy."

      Essentially, the job of the Eastern Region is to attract companies to the broader area which then are turned over to the Department of Commerce and to the local public and private economic developers to assist in finding a location for the company. One of the companies that was attracted to the North Carolina Global TransPark within the last year was Workhorse Aviation Manufacturing, a business that manufactures parts for aging aircraft.

      According to Darlene Waddell, Executive Director of the Global TransPark, "One of the significant features of the Global TransPark is a world class aviation infrastructure." An 11,500 foot runway - the longest commercial runway in North Carolina accommodating the world's largest cargo jets is combined with non-stop passenger jet service connecting the Park with Delta Airlines' hub in Atlanta. The entire airfield area is incorporated in the Park's Foreign Trade Zone.

      "The aviation infrastructure is enhanced by an industrial complex and four-lane highway access to two major or interstates. As such, the Global TransPark is well-equipped to handle continued growth. Due to a thoughtful planning process that has taken place over the last decade, the GTP's tools and capabilities can expand to meet any company's needs. We have a very positive outlook for eastern North Carolina as a whole and the Global TransPark in particular. We expect to see the TransPark become a true economic engine for the state as it continues to grow."

      A successful public-private industrial recruitment agency dedicated to the economic development of the Eastern Region's counties of Nash and Edgecombe, Carolinas Gateway Partnership is a collaborative effort of the two counties, and 18 cities, towns and municipalities. Over the last six months, Carolinas Gateway Partnership has attracted five new or expanding businesses to the area. Tarboro Textiles, a textile production service company, is providing the workforce to manage operations at the former Glenoit Fabrics facility which moved its operations to China.

      Additionally, Guardian Building Products Distribution, a supplier of fiberglass insulation, roofing and accessorized ventilation products opened a new distribution center in Nash County in March. Eagle Press, a manufacturer of printed business materials, recently announced plans to expand their existing Nash County facility.

      E-Z Set Company, a manufacturer of septic products, will take over the 76,000 square foot building formerly used by the defunct Pillowtex operation, and Headway Corporate Resources, a leading human resources company, who recently moved its corporate headquarters from New York to Raleigh, opened a national recruitment center in Edgecombe County.

      An economic update for Edgecombe and Nash counties indicates a combined total of new investment last year of $34 million and expansion investment of $16 million. "An abundance of prime property, numerous state and local incentives and tax advantages are some of the reasons we have been able to appeal to a variety of companies," says John Gessaman, President and CEO of Carolinas Gateway Partnership. For example, right now on the Partnership's website there are 36 industrial sites listed ranging in size from 4+ acres to 1,688 acres, as well as 22 industrial buildings ranging in size from 9,000 square feet to 377,000 square feet.

      Concentrating on developing a highly educated workforce is a goal which Gessaman believes is crucial to the Partnership's efforts. "We must encourage more high school students to go on to college or take advantage of higher educational opportunities." With that objective in mind, Gessaman is eagerly waiting the start-up of the new Gateway Technology Center.

      Construction of the Center began on the main campus of North Carolina Wesleyan College in Rocky Mount early last year and the anticipated date of occupancy is May of 2006.

      When the center opens for classes, it will offer a variety of courses, certificate programs, degree completion programs, associates degrees, bachelor's degrees, and master's degrees. East Carolina University and North Carolina State University are the two main providers of courses offered through the Center on a Distance Learning basis. Additional support for the Gateway Technology Center courses and programs will be provided by North Carolina Wesleyan College and Edgecombe Community College, Halifax Community College, Nash Community College, and Wilson Technical Community College.

      The impressive cluster of educational institutions devoted to the marine sciences have made Carteret County a mecca for research and training. The Carteret County Economic Development Council is firmly committed to the Marine Trades Education Center, operated by Carteret Community College in Morehead City. The Center has been called the only comprehensive marine technology training center in the mid-Atlantic region. It offers training programs for marine propulsion, boat manufacturing, fiberglass technology, marine management and other related subjects.

      There is no longer any doubt that marine science research and education has emerged as a powerful, though previously overlooked, force in the community. An economic analysis commissioned by the Marine Science and Education Partnership in 2004 found that MSEP members generated almost one out of every 10 Carteret County jobs and contributed $127 million in economic output to the total economy. Those figures have in all likelihood increased, as the study provided local economic development leaders with an effective tool in attracting related ventures and new jobs.

      Dave Inscoe, executive director of the Carteret County Economic Development Council, cites the establishment of two new firms connected to the boating industry, True World Marine and Bausch American Towers, plus the expansion of Shearline Boatworks and Gregory Poole, two businesses that are marine-related, to the county's ever-growing list of major employers.

      One difficulty accompanying the area's rapid growth that county planners must face is the gradual loss of industrial waterfront property. "Property is getting so valuable that businesses like boat yards and maintenance facilities have a hard time continuing to operate on the waterfront," Inscoe comments. "There is still lots of waterfront property available but with the increased values, taxes, and environmental regulations, it definitely presents a problem."

      Another coastal county in the Eastern Region is facing a challenge of a different nature. Onslow County, home to the Marine's Camp LeJeune and the New River Air Station, will shortly experience an estimated 10-12,000 additional people coming to its area. Bruce Gombar, the executive director of the Onslow County Economic Development Office, explains, "In today's military, approximately 48% of the service men and women are married." This means that with the 6,000 marines and naval personnel scheduled to be transferred into the area, there will also be spouses and dependents which equates to the estimated number given.

      "The impact will be significant," observes Gombar. "The government is going to have to spend considerable funds building new barracks, new maintenance facilities, new armories, and headquarters buildings, and that's good news for our economy. Last year the two installations contributed over 3.1 billion dollars to Onslow County, and that figure will undoubtedly increase. Also we can look for more growth in the retail sector - in the big box retailers, restaurants and service industries."

      The employment picture should stay strong as well. Gombar says, "Today's military is very high-tech and sophisticated, and there are certain types of businesses that are drawn here specifically because of the military. Like it or not, it appears that the international situation will continue to demand businesses that are involved in defense or homeland security."

      What is the downside to all this? - increased pressure on the road systems, housing, schools, police and fire and all the other services that any community requires. Gombar points out that it is incumbent on the leadership of the county and municipal planners to be sure that the right decisions are made to accommodate the anticipated growth.

      The Marine Corps Air Station at Cherry Point and the NAVAIR Depot at Cherry Point are vital revenue-producing components for Craven County. An economic impact study for MCAS Cherry Point last year indicated an expenditure of more than one billion dollars to the local economies of Craven and its surrounding counties. Highly regarded professional companies and a growing high-tech sector that includes Moen, Hatteras Yachts and Weyerhaeuser are another plus for the county, as well as its airport facilities and its regional medical center.

      Although the fundamental manufacturing base of Wayne County is vital to its interests, it too is impacted by the presence of the military within its borders. Seymour-Johnson Air Force Base, located in Goldsboro, substantially augments the local economy and workforce. The industries that are located in the county are varied and include automotives, electronics, food and beverage distribution, plastics, and agri-business, as well as research and development. And a recent development will solidify the endeavors of local economic developers to increase the attraction of new industries to Wayne County.

      Several months ago, the county's economic development council, the Goldsboro Committee of 100 and the Mount Olive Committee of 100 formed a new, non-profit public/private entity that will handle the economic development efforts for all of Wayne County, beginning on July 1, 2006. A campaign titled "Impact Wayne" is charged with the responsibility of securing funding to support economic development.

      Jimmie Edmundson, co-chair of the campaign commented, "Competition in economic development is tough and we needed to raise the bar regarding support from our private sector. But we also needed a more comprehensive and unified approach in our efforts to establish a comfort level for those contributing financially to the process. The Impact Wayne Campaign is the vehicle that this new non-profit will use to implement a multi-year public/private funding effort."

      Meanwhile, the other counties in the Eastern Region, such as Lenoir, Duplin, Wilson and Jones, continue to draw new and expanding business to their own particular areas. And Pitt County has seen an evolution from mostly domestic manufacturers to an unusual mix of national, international and technology-based companies.

      An example is the recent announcement by ASMO Greenville of NC, Inc., a Japanese company which began operations in Pitt County more than ten years ago, that it will add 17,000 square feet to its existing facility. The addition will require modifications to the current physical plant and include extensive investment in new machinery.

      Greenville, in Pitt County, also was recently chosen as the newest regional office of the North Carolina Biotechnology Center, centered in Raleigh. The new regional eastern office, and one in Wilmington, will join two offices established in the last two years - The Piedmont Triad office in Winston-Salem and the Western office in Asheville.

      According to Leslie Alexandre, President and CEO of the Biotechnology Center, "Biotechnology offers extraordinary economic and social benefits for Eastern North Carolina in coming years. Working with regional partners to deliver those benefits is sound strategy for the Center and follows the recommendations of New Jobs Across North Carolina: A Strategic Plan for Growing the Economy Statewide through Biotechnology."

      It would appear that the entire Eastern Region is poised on the threshold of future expansion. As Erin Eatman of the Eastern Region's office comments "We look forward to steady growth, particularly in health care, marine sciences, advanced manufacturing, biotech and food processing. Not too long ago, recruitment was all about cheap labor and cheap land. Today, recruitment is about skilled labor and supporting services/infrastructure."

Reprinted from Carolina Business online.