Boom to the tune of $4.1 billion
Investment plans in Mecklenburg nearly double previous record
Doug Smith
If the development boom occurring across Mecklenburg needs any
confirmation, the Charlotte Chamber has it.
New and expanding businesses announced plans during 2006 to invest
nearly $4.1 billion, almost doubling the previous record of $2.2 billion
set in 1998.
"What that says to me is that we are building the infrastructure
for continued growth," said Tony Crumbley, the chamber's vice
president of research.
The statistics are in the business organization's 2006 year-end
report on countywide new and expanding businesses.
The report also noted that 809 firms announced plans to create 12,087
jobs and generate 18.2 million square feet of leased or expanded space.
None of those statistics were records.
The number of new and expanding firms was down 16 percent from 964 in
2005, job announcements were down 10 percent from 13,418 and expansion
space was up 34 percent from 13.6 million square feet. The chamber
doesn't reconcile new jobs with job losses or adjust for inflation. But
in the past, the report has been a reliable indicator of growth.
The expansion numbers are in sync with a July Observer report that
document a surge in 2005 nonresidential construction permits to $3.1
billion -- the strongest year in Mecklenburg since 1997.
Unlike the chamber's statistics, which are based on companies'
intentions, building permits are issued in preparation for actual
construction.
Other counties in the region said their permits issued in 2005 also
indicated an upward trend in commercial building similar to Charlotte's.
"This reflects the interest businesses have in Charlotte,"
Crumbley said. "We're in the next tier of cities. Ten years ago, we
had the C.H. factor. That doesn't exist anymore." (The C.H. factor
refers to confusion with cities such as Charleston and Charlottesville,
Va.)
People who inquire about Charlotte generally have at least some
knowledge of the city, thanks in part to its big banks and professional
sports, he said.
"Today, I get as many calls from California as I do from
Virginia," Crumbley said.
People moving into the region help create the work force that
persuades businesses to expand and move here, he said.
What's most convincing about the investment totals, Crumbley said, is
that the record would still be broken without two of 2006's biggest
announced projects: Wachovia's First Street Cultural Campus and Bank of
America's 32-story office tower.
The report also indicates there's more diversity than our
financial-center oriented business community might realize.
Manufacturers announced plans in 2006 to create 781 jobs compared to
the finance and insurance industry's 1,231.
Shutterfly Inc., a Web-based photo provider, for example, is
investing $31.5 million and generating 230 manufacturing jobs. And
Newell Rubbermaid is expanding, investing $7.5 million and creating 320
jobs.
Crumbley expects the momentum to carry over into 2007 and beyond as
businesses discover the region's steady economic growth and quality of
life.
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