Construction a sign of Charlotte's good health

Chamber's report on expanding firms mirrors region's growth

DOUG SMITH

Navigating all the construction projects under way in Charlotte might be worth the inconvenience considering the alternative.

Economists say the cranes are a barometer of good health, indicating that things will keep going here no matter what happens on the national level.

The Charlotte Chamber's just completed 2007 report on new and expanding businesses seems to confirm that.

A record 1,326 firms announced plans to invest nearly $2.3 billion -- the second highest amount ever in Mecklenburg -- and create 14,648 jobs.

"What it tells me is we are building the infrastructure for future growth," said Tony Crumbley, chamber vice president of research. "I can't help but feel positive."

The city's uptown vacancy rate is around 2 percent -- the lowest of any downtown in the nation -- and office space is in short supply, helping fuel the building boom.

Employers, especially those who do business with the big banks, are eager to locate in the center city financial hub.

More than a half-dozen office buildings totaling more than 2.7 million square feet are under construction uptown and some won't be finished for two or three more years.

"The chamber's numbers have had a tendency to coincide with the general direction and magnitude of Charlotte growth," said Wachovia Corp. senior economist Mark Vitner. "The report shows we have a large backlog of work."

Home construction starts and sales have slowed, but Charlotte was one of just a few metro areas in the country where home values rose over the past year.

Vitner said local job growth, a key to future demand for housing, also remained relatively strong in 2007.

Planners see the Charlotte region adding an average of almost 50,000 people a year through the end of the decade.

Locally, consumers and businesses are keeping a wary eye on the uncertain national economy.

Vitner isn't predicting a recession, but if should happen, he doesn't believe it will last more than nine months.

In that case, activity likely would slow here, Crumbley said, "but we still have enough under way to keep us afloat."

The new construction and business expansion projects counted by the chamber totaled a record 25.1 million square feet.

Charlotte typically is insulated from drastic economic swings by its diversity of jobs and employers, Crumbley said.

The accommodations and food service industry -- the leading category in 2007 -- accounted for 4,436 of the announced jobs.

But firms also disclosed plans for almost 3,000 technical services jobs, 2,210 retail jobs and 360 manufacturing jobs plus substantial numbers of jobs in health care, finance and administrative support.

The big surprise in the year-end report, Crumbley said, might be the number of manufacturing jobs announced "because we are thought of around the country as a banking community."

Charlotte's location roughly between New York and Miami and interstate highway access is attractive to warehouse, distribution and manufacturing firms.

The chamber doesn't reconcile announcements with job losses and doesn't adjust dollar amounts for inflation.

But over the years, its growth report has been a reliable indicator of future activity. Some of the announced jobs probably won't come to fruition until a year or two years down the road.

DEVELOPMENT Doug Smith