FIRST QUARTER 2018 CHARLOTTE-MECKLENBURG GROWTH REPORT

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2 FOURTH QUARTER HIGHLIGHTS FIRST QUARTER 2018 CHARLOTTE-MECKLENBURG GROWTH REPORT Professional Services and Manufacturing Highlight a Steady First Quarter Charlotte was ranked the No. 3 Metro Area for growth in STEM jobs since (Source: Forbes) Companies in Charlotte Mecklenburg announced the addition of more than 3,200 jobs and made more than $74 million in capital investments during the first quarter of That s slower than first quarter 2017 but faster than 2016 and Professional services firms showed strong growth during the usually slow first quarter. Audit and consulting firm EY announced the addition of 375 jobs and the construction of an $8.2 million wavespace innovation center focused on research on disruptive technologies such as blockchain and others. Ally bank announced the addition of a smaller innovation space at the Camp North End site off Statesville Avenue. In all, professional services, information and financial companies added more than 650 jobs this quarter. The Charlotte Metropolitan Area s population exceeded 2.5 million people in 2017 and is the 22nd largest MSA in the country (Source: U.S. Census Bureau) Charlotte s Cost of Living was 96.2% of the national average in That s cheaper than 30 out of the 40 largest U.S. cities. (Source: Forbes Magazine) Manufacturing growth in the county was also strong with more than 434 jobs added. Industrial motor manufacturer Powertec announced the addition of 42 jobs at a 50,000 square foot facility in Southwest Charlotte. Engine and power equipment remains an important sector for the Charlotte area, accounting for more than $730 million in total exports. That s one reason for international interest in Charlotte s manufacturing sector. Two international manufacturers British filtration technology producer PSI Global and Chinese machinery manufacturer Sichuan Dawn announced plans to add jobs in Mecklenburg County. Turkish textile manufacturer Metyx also announced plans to open a facility in Gaston County. Overall economic indicators were steady for the quarter, with Mecklenburg County unemployment remaining at 4.3 percent through February. National gross domestic product estimates showed some tapering off with the Federal Reserve predicting less than 2 percent growth for the quarter. Official numbers will be released in late April. NOTE: The Charlotte Chamber's Growth Report tracks announced openings, hiring, investments and expansions of private-sector businesses in Mecklenburg County. The report does not track closings or layoffs. The New & Expanded Report should be considered a general snapshot of Charlotte business activity and not a comprehensive or scientific representation of the Charlotte economy. Zillow predicts that the Charlotte area will be the No. 4 Hottest Housing Market in (Source: Zillow.com) 2 CHARLOTTECHAMBER.COM

3 THE GROWTH REPORT BREAKDOWN BY INDUSTRY - FIRST QUARTER 2018 NAICS INDUSTRY FIRMS JOBS SQUARE FEET $ INVESTMENT* 23 Construction ,200 $1,883, Manufacturing ,910 $22,455, Wholesale Trade ,655 $279, Retail Trade 24 1, ,690 $6,304, Transportation and Warehousing ,284 $1,783, Information $100, Finance and Insurance ,250 $8,267, Real Estate Rental and Leasing ,500 $5,550, Professional, Scientific, and Technical ,413 $18,448,667 Services 56 Administrative and Support and Waste $572,193 Management and Remediation Services 61 Educational Services $0 62 Health Care and Social Assistance ,182 $957, Arts, Entertainment, and Recreation ,930 $796, Accommodation and Food Services ,245 $4,443, Other Services ,631 $2,533, Public Administration ,000 $15,000 Total 227 3,233 1,052,890 $74,391,981 * Investment numbers indicate building, machines and equipment. NOTE: Employment figures are incremental. Square footage does not necessarily reflect movement from one Charlotte location to another. Figures reflect announcements and specifications during indicated period, but actual construction and hiring may occur in subsequent periods. NAICS stands for North American Industry Classification System and can be understood in more depth at census.gov/naics. Source: Newspaper ads, press releases, building permits, chamber membership and chamber prospects. CHARLOTTECHAMBER.COM 3

4 THE GROWTH REPORT FIRST QUARTER 2018 MECKLENBURG COUNTY 227 FIRMS 4 CHARLOTTECHAMBER.COM

5 FIRST QUARTER 2018 GROWTH FOURTH QUARTER AND YEAR-END COMPARISON NEW EXPANDED TOTAL Category Q Q Q Q Q Q NUMBER OF FIRMS Manufacturing Non-Manufacturing Total EMPLOYMENT Manufacturing Non-Manufacturing ,701 3,631 1,554 4,088 Total ,834 3,800 3,233 4,558 SQUARE FOOTAGE (THOUSANDS) Manufacturing Non-Manufacturing Total ,272.2 INVESTMENT (MILLIONS)* Manufacturing Non-Manufacturing Total $23.2 $128.9 $47.5 $141.1 $74.3 $270.0 NOTE: Employment figures are incremental. Square footage does not reflect increments where firms vacate one Charlotte location for another. Totals may not sum due to rounding. Source: Newspaper ads, press releases, building permits, chamber membership and chamber prospects. * Indicates building, inventories, machines and equipment ANNUAL COMPARISON OF 1Q GROWTH, YEAR FIRMS JOBS SQUARE FEET (MILLIONS) INVESTMENT (MILLIONS) , $ , $ , $ , $ , $ , $302 CHARLOTTECHAMBER.COM 5

6 INDUSTRY GROWTH COMPARISONS CHARLOTTE MSA AND USA, INDUSTRY GROWTH COMPARISONS, CHARLOTTE VS. US 2001 TO 2017 Professional Services Accommodation and Food Services Arts, Entertainment and Recreation Finance and Insurance Health Care and Social Assistance Administrative Support Educational Services Transportation and Warehousing All Industries Public Administration Real Estate and Rental Leasing Retail Trade Other Services Management of Companies and Enterprises Wholesale Trade Information Agriculture Construction Mining Utilities Manufacturing -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% USA Charlotte MSA Source: Bureau of Labor Statistics Quarterly Census of Employment and Wages via JobsEQ Charlotte s job growth has outpaced the nation s overall. The metro area workforce has grown by 28 percent since 2001, compared to just under 10 percent growth nationwide. The Professional Services Sector and Finance and Insurance show some of the strongest growth, adding 82 percent and 69 percent to their workforces since These higher-paying jobs and the disposable income they generate have supported demand for Accommodation and Food Services and Arts, Entertainment and Recreation positions, which have also rapidly increased. Health Care, the largest sector by total employment in the Charlotte area, also increased by more than 65 percent. Manufacturing employment declined by nearly 27 percent during this 16-year time period due to offshoring and advancements in automation. However, most of those job losses came during the recession. Since 2012, manufacturing jobs have increased by 9 percent in the Charlotte MSA, compared to 4 percent nationally. 6 CHARLOTTECHAMBER.COM

7 POPULATION HISTORY NET MIGRATION TO MECKLENBURG COUNTY AND CHARLOTTE MSA, Source: U.S. Census Bureau Population Estimates, MSA uses 2013 definition Charlotte is a magnet for movers, and that s a major part of this area s growth story. More than 37,000 people moved to the Charlotte metropolitan area between 2016 and That s an increase since recession lows but still behind the heights reached in 2005 and Surrounding counties are also gaining a growing share of in-migrants as residential development in the suburbs takes off. Three of the area s 10 counties Cabarrus, Lancaster and York, were in the top 100 counties for percentage growth for POPULATION PROJECTIONS THROUGH 2037 The Charlotte MSA will reach 3.5 million people Mecklenburg County will reach 1.5 million people The City of Charlotte will be near 1.2 million people CHARLOTTECHAMBER.COM 7

8 Charlotte is one of the fastest-growing cities in the nation. With our great location, world-acclaimed international hub airport, professional sports, low energy costs, diverse and talented labor, innovative and growing health care and life sciences sectors and a nationally ranked education system, it s easy to see why more businesses are flocking here every year. VISIT CHARLOTTECHAMBER.COM TO LEARN MORE. 330 SOUTH TRYON STREET, CHARLOTTE, NC PHOTO BY DAVID JAFFE